Steve Shu on Management, Consulting, and Leadership

Collecting My Favorite Multimedia Clips and Exhibits For Marketing Course

Starting to collect my favorite videos and photos on my new posterous site (marketing section at http://steveshu.posterous.com/tag/marketing) for teaching business school classes (e.g., marketing, brand management). Folks may find some of the videos and photos entertaining.

I am still trying to find the best way to organize the videos in the context of what part of the marketing or brand management framework is being covered. I may also find a better way to include more detailed marketing notes on each video or photo. In any case, please feel free to send me links of your favorite videos. I may extend the posterous site to include organizational behavior topics, depending on my fall teaching load.

As background, I am using my posterous site as a scratchpad space separate from this blog and Twitter streams.

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Candid Interview With Will Weider On Consulting (From A Customer Point Of View)

This past week, I had the opportunity to speak with Will Weider, CIO of Ministry Health Care and Affinity Health System, about using consultants. His perspectives are interesting because they are from a customer’s vantage point – not from a consultant’s viewpoint. Will Weider is author of the one of the earliest CIO blogs on the Internet, the famed “Candid CIO” blog.

Steve: Will, thanks for talking with me. As a management consultant myself, I’ve approached you for a “candid” view on using consultants. I am interested in constantly improving the practice of consulting and management. Hopefully this interview will shed light for both consultants to improve their practices and peer organizations of yours to improve their selection and use of consultants. To that end, when do you look to consultants, and what do you look for in consultants?

Will: There has to be a specific reason for using a consultant, and my philosophy is to use consultants as little as possible. A couple of thoughts immediately come to mind. The first is that consultant costs can give me heartburn (e.g., when comparing loaded hourly rates of internal staff against the consultant). Now as context, it is infrequent that my organization does not have the skillset to either get a project done or solve a particular problem.  A second perspective is that I have had some disappointing consulting engagements where the results have fallen short of my expectations. Part of the blame may fall on the consulting firm which may oversell themselves in order to get a deal done. Some of the missed expectations may be in part that the buyer has elevated expectations when using a consultant.

Steve: Do you have any thoughts on aligning an organization and its expectations when using consultants?

Will: I’ve found that the worst time to use consultants is when my organization is saturated. A client organization needs capacity to bring the consultant on board, ramp them up, manage them, provide feedback, etc. As an example, if I have estimated a project at requiring 100 hours to do internally, then I may need to allocate 125 hours when accounting for budget and overhead of managing the consultant. As far as aligning expectations, I have mostly seen consultants provide incremental value as opposed to exponential value and miraculous benefits as marketed. Consultants can get oversold on their value proposition too easily. I also wanted to note that some consultant agreements have unacceptable terms, rivaling those of my software vendors.  These include such terms as up-front payment, termination clauses and advance notice requirements, etc. Where these terms go in the new environment we are in is still to be determined, but they have to be more client-favorable.

Steve: What kind of advice can you provide on using consultants?

Will: For me, the best time to use a consultant is when you need a 3^rd party advisor. For example, suppose there is a big, multimillion dollar project going off course. A consultant with the right background can provide an independent project audit. Our needs are aligned when using the consultant in this manner. We need a specific skillset (perhaps not a scarce resource), we don’t have time (e.g., because we have 60-70 projects going on), we need a fresh look, and we need an independent view. This is the perfect type of situation for a consultant because the scope is well-defined, the scope is narrow and the timetable is short.

Steve: Great insights, thank you. Changing gears bit, I think readers may be interested in your views on the federal stimulus package and its impacts on consultants.

Will: The package has clear intent, but everyone is still waiting for the clinical IT requirements to be defined on both the medical group and hospital/ambulatory side. Less than 2% of hospitals have real Computer Physician Order Entry (CPOE), so once the requirements are defined, there may be a flood of work for implementation consultants with CPOE and specific Hospital Information Systems (HIS) expertise. I’ve estimated tens of millions of dollars of eligibility for our provider organizations (medical groups and hospitals). We are working with a number of vendors and suppliers to plan for various scenarios so we qualify for these funds and deliver on the President’s vision for a more efficient and effective health care system. It’s all a new process – I’m not sure that anyone has an “inside track” as to how to get these funds.

Steve: Terrific info. Let’s change gears again and cover social media. How have things changed since 2005 when we first met via the blogging world?

Will: These days I use both Twitter and blogging, although there has been some shift towards using Twitter. I will say that consultants that I use have connected with me via social media. Some of these consultants demonstrate their expertise to me for free before I use them. These consultants may be those that are helping me with technology, preparing for swine flu impacts on my organization, or other dynamic areas. Consultants that are confident in their abilities to provide value are not afraid to pursue either risk-free or non-traditional models for engaging me.

Steve: Will, this has been a great dialogue, and I appreciate your candor for the benefit of the business community. Thanks for your time.

Will: Steve, thanks for the opportunity to be interviewed.

Will Weider is CIO of Ministry Health Care and Affinity Health System, and his blog is at the Candid CIO at http://candidcio.com.

Steve Shu is a management consultant focusing on organizations that use technology, and his blog is at http://steveshu.typepad.com.

Tony Karrer on LinkedIn and Web 2.0 for Management Consultants

Tony Karrer gave a Web 2.0 presentation in Los Angeles to an audience at the Institute of Management Consultants (unfortunately I was not able to attend having just learned about it that day).  He covers two aspects: serving clients and reaching prospects. Apparently, most of the interest was in the latter area, and as a summary of one of his theses, I reference the title of his blog post, "LinkedIn - Prospecting No - Conversation Yes : eLearning Technology".

For those looking for more info as it relates to consultants and LinkedIn, Ford Harding is one of the gurus I've looked to as a guiding light when I committed in early 2000ish to work at actively improving my sales and sales management IQ, particularly around professional services sales. Here's one of Ford Harding's posts on "Liking LinkedIn?". He has other posts regarding LinkedIn as well, so be sure to dig in and poke around if you have a chance.

Corporations Are Learning About Social Media Faster

A lot of people in Twitter circles characterize that twittering feels like the days of early majority blogging, for me circa 2004ish with an even less mature toolset (I am being generous). With respect to business use, it seems like everyone needed more help back then, as not everyone came out of the gate running. Here Dave Sify summarized the state of the corporate blogosphere in 2004. How few the companies were. Later at the beginning of 2006 and indicative of a forthcoming early majority, Robert Scoble and Shel Israel were motivated to publish their book, "Naked Conversations: How Blogs Are Changing The Way Businesses Talk With Customers. Well, it's 2009 now, and we're in a large recession. But it seems like businesses are smarter this time around in the use of social media like Twitter. I recently ran across an article on Corporate Twitter Accounts worth following. Seems like we skipped the whole convincing phase this time around. Much less of the skeptical talk time this time around.

Kudos to those companies that are able to build brand, improve customer service, and potentially lower costs (latter less widely known) using Twitter. How often is it that companies are able to get marketing and customer service to sync up, let alone talk? It seems that we are making progress, even if it means we'll all have to learn the best practices of communicating in 140 characters or less.

Update (3/20/09): Not business-centric, but here's an article that indicate social networks more popular than email (see CNET article regarding Nielsen Online study)? Not sure how this was measured, but I don't think it is intuitively true for me, even though I consider myself a moderate blogger.

Update (3/23/09): Steve Rubel has a good post entitled, "Customer Service is the New PR". I like his post because it ties together some of the concrete stuff going on in the social media space (along with references to some of the more esoteric, forward-looking items).