Robbie Kellman Baxter on the Business of Consulting

Welcome!

Welcome to my weblog!   This blog is a place where I offer advice and best practices on issues relating to the business of independent consulting.  We will cover topics including the following: building awareness and your professional network, applying pricing discipline, and the operations of a successful practice, as well as many other topics as they arise. I welcome your questions, suggestions and ideas.

What to do if it's "Out of Scope"

We've all gotten that email from a great client when they ask for something that's out of scope.

It can be really stressful to determine what to do, especially when the pricing is project based.

But going beyond scope is usually a sign of engagement by the client and an opportunity for a great discussion.

Start by asking the client to elaborate on what they need and why.  It's important that you fully understand where the client is coming from, so you can respond to the actual issue on the table.  If indeed, your client is asking for something that wasn't initially discussed, here's an easy rule of thumb.

In general, it's fine to say something is out of scope but always in the context of what's best for client. It's going to be one of these three things...

1. Out of scope but a good idea.  In this case, you can offer to revisit the scope to include these new ideas

2. Out of scope and not something you do, but a good idea.  In this case, you can offer to make an introduction to someone who specializes in this new work. A win for all.

3 out of scope because unnecessary.  In this case, the client is at risk of buying something they don't need. You can prove your worth while saving the client time and money by pointing this out.

Think of this as an opportunity to explore a deeper relationship and not something to ruin your weekend!

More Technology or Less? What's a Consultant to Do?

Today I led a discussion with a mastermind group on using technology. We had scheduled this topic because the consultants in the group said that they feel pressure to get leverage with technology, even at the same time as they are told to hop on a plane and meet face to face with prospects and clients as much as possible. Which is right, they wondered. And how should a consultant research and choose which technologies to use? To enrich our discussion, we read Doug Devitre's excellent book (which I highly recommend) called Screen-to-Screen Selling.  Devitre's book provides dozens of recommendations to leverage your time while improving your reputation, communication and relationships.  

As many of you know, I am a very structured thinker and am always looking for frameworks and rules to simplify complex situations.

Here's how I think about using technology in my own practice.  

RULE 1: Use technology to close the gap when you can't meet face-to-face

Even if you want to meet face-to-face with a prospect or client, sometimes you can't. Maybe they need immediate help, or maybe their travel prohibits it, or maybe the revenue to be generated from the work doesn't cover the airplane ticket.  Devitre recommends using video chat as default, unless the connection isn't fast enough to support it.  Skype is fine, but Zoom or JoinMe have additional excellent features, making it easy to see the person and share a document at the same time.  These services are great for reviewing a document, exploring case studies or mapping out plans.

I do a lot of keynote speaking, but I also do webinars, which provide much of the same content, but delivered remotely, with me presenting from my desk in my office.  Over time, I have increased my usage of polling, engaging the faceless audience and getting them to share stories via the chat feature.  I often use twice as many slides when I am remote, to keep up the visual interest, especially if they aren't seeing my face.

RULE 2:  Use technology to enhance face-to-face

With technology, we have a whole range of tools that can allow us to record our work, edit our slides, choose which cases to present in real time, incorporate animated process visuals to clarify complicated ideas, and send "prework" like video and audio so that valuable face-to-face time can be used for interaction and relationship building.

Face-to-face time is so valuable.  Think about what you can only do when you're in the same room as someone, and do everything else remotely.  For me, I know that face-to-face time is best used building relationships and establishing trust. It's also an effective tool for confirming buy-in, especially among a large group.  You can work in the background to explain, educate and persuade each individual member of a group, but there's nothing like a group gathering to look around and see that everyone is in agreement, and to raise any last challenges with all the actors in one place.

 

RULE 3:  Start with the requirements, and then look for the technology

Keeping up with all of the new apps and products can be overwhelming.  Trying to understand what each one does, and then figuring out how it might work in your organization will take a lot of time and isn't really necessary.  I go the other way.  I start with what I'm trying to accomplish, for example, give a really engaging presentation to a room of 500 people, or record answers to my most commonly asked questions in a way that is useful for people who might not have a chance to ask me directly.  Start with the challenge you face, and your vision of how things would work in an ideal way.  Then ask around.  

Bottom Line

Technology is exploding.  Many applications are available, at least in "lite versions" for free.  If you can imagine it, someone has probably built it.  So step away from your laptop, grab a pen and some paper, and start crafting a wishlist of all the areas where your interactions could be more effective AND/OR better leveraged.

Good luck!

Dipping Your Toe or Diving In--Getting Started in Consulting

Some people dive into consulting.  Others dip their toe in first.  I was a toe-dipper.  I was so nervous about investing my dollars and my time, reaching out to my network, telling everyone this was my new goal, and then failing.  So I started by just telling a few people, mostly people I had worked with in the very recent past.  No marketing, just sales.   Here’s the difference between marketing and sales:  marketing aims to reach many, and to help you in the long-term, while sales is 1-1 and is about short-term results.  I focused on sales, going out to one person at a time, both in person and via email.  My first project was a 1 week project for a former classmate, to provide recommendations on a business he had just bought.  I was paid in equity, even though I needed cash.  (8 years later, that equity turned into a check for $20K…but that’s total luck. I don’t recommend working for equity unless you really don’t need money and really trust the entrepreneur).  My second project was for a portfolio company of a venture investor who really gave me the project as a favor.  It didn’t require my level of skill or expertise, but I took it anyway, because what I was testing was whether people would pay me for marketing help.  My third project was a 2 week project for Sun Microsystems, which at the time had a market cap of $49B.  That project turned into 12 more projects  that generated several hundred thousand dollars over the next few years.  It was only after Sun started that I invested in marketing.  I got a website, a business card and started looking for speaking opportunities.

 

So, what can you take away from this?

 

1.  Think about what you need more, sales or marketing (or both).  Sales keeps you in cashflow, but you may take projects that aren’t in your sweetspot, and it’s hard to grow quickly.  Marketing takes awhile to reap what you sow, but in the long term is what creates a robust pipeline.

2.  When you’re ready to launch, reach out to everyone you know.  Divide people by A, B, C.  A=people who could hire you (sign the contract, sign the check).  B=influencers/connectors (people who are trusted by A types)  C=people who are well-disposed toward you but aren’t A or B…like college friends, neighbors, former colleagues etc.  As get personal outreach.  Some Bs do too.  Cs get mass stuff, just to give them enough to know who you help, and how you help them.  Look for ways to provide value for the As.  Give to get.

3. Better than your own blog or video content is stuff you do in partnership with orgs that have a great list of A types.  For example, I do a lot of guesting on well-known podcasts.  I also do a lot of webinars for software companies that have platforms for subscription businesses.

Getting started can feel hard, because you're trying to get the wheels in motion.  Once you have a few clients, and do good work, you will have more referrals as well as more content that you can share...but those first few clients can be tricky.  

How did you get your first client?  I'd love to hear!

 

How to (Earn The Right and) Give Feedback

You need to earn the right to give constructive criticism.  Here’s how:

1. Someone asks for it (i.e. "Stephanie, do you have any suggestions about how I can do a better job responding to your query and being a useful source for your articles?”)
2. Your title grants you permission (you’re the consultant, boss, mom, customer, etc.)
3. A formal space has been carved out for feedback relating to a particular project (“Let’s have a post mortem on how that project could have gone better”) 

If you haven’t earned the right to give constructive criticism, and you have some that you think would be really useful, you need to ask permission.  Be open to the idea that they might say no.

Remember that song from Free to Be You And Me with Marlo Thomas? “…and some kind of help... is the kind of help...we all can do without”

Once you have earned the right, use the well-known and documented best practices:

 

1. Wedge the criticism between some positive feedback.  You have to be able to point to what they’re doing right as well as what they’re doing wrong. In general, you should be giving 5 pieces of positive feedback for every one piece of negative.  Asking managers to get into this habit does wonders for strengthening morale and results.
2. Don’t make it personal, and don’t make it permanent.  It’s not “You’re so bossy” (vague, and for all-time)  it’s “At yesterday’s  meeting, you didn’t ask for other opinions and didn’t include the rest of us in the decision making” (specific)
3. Make it actionable.  Be sure that there are some ideas about how they can do things differently next time.  For example “Next time, it would be great if you started the discussion by taking a quick survey of the room to hear what everyone thinks”

 

At this point, though I think most people know how to give constructive criticism.  The bigger issue is giving it at the wrong time or when it’s not your role.

We are living in a Membership Economy, where we have long term formal relationships with organizations and the other members of those organizations.  Having clear and positive communications becomes more important than ever before, so understanding how to have difficult conversations has become a key success factor.

How to write a book (You can do it! Here's how!)

It's been a few months since my book The Membership Economy launched, and it's been a really interesting time. I have had many inspiring conversations, helped all kinds of people from around the world and developed my own ability to write, speak and even think.

A lot of people have asked me what has surprised me about the process of writing a book, and what I've learned. In the spirit of the recently-retired David Letterman, here's my top 10 list:

10. The process of writing actually helps you think. It's amazing what I learn just by asking my own question and then trying to answer in a 15-minute free write. Writing has become my newest and best problem-solving tool. It's all about the questions.

9. (Almost) everyone wants to help an author. I cold called CEOs for interviews, authors for advice and literary friends for editorial feedback. Not all of them were willing to help me, but the vast majority took my call. I only wish I had reached out more, and earlier.

8. If you want to write a book that is interesting to other people, make sure it's interesting to you first. I learned that from my writing coach Mark Levy.

7. Spend as much time on your marketing as you do on the writing. And I spent a lot of time on the writing. 

6. Find a book buddy or two. Linda Popky and I wrote our books on almost the same schedule, and helped each other every step of the way. It's like the spring 1998 mommy group all over again.

5. Be willing to pay for help. I studied poetry in college (ask me anything about Stevie Smith's use of line drawings to accompany her poems) and consider myself a good writer, but I still brought in writing professionals to help me create the best possible book. Thanks Sarah White and Wally Wood.

4. Interview and profile a lot of people in your book. Case studies are way more engaging than dry theory, and the people who are featured in the book will be more likely to support the book.

3. Remember why you're writing the book. If it's a one-pound business card to help build your professional brand, don't waste your time making it a best-seller by selling to the wrong people. It's great to sell books but not the most important thing.

2. Make time to celebrate. Two key moments (there may be more) are when you finish the manuscript and when you get your first copy of the book. Have a party for the people who helped you. Take your Significant Other out for a nice dinner. Life is a collection of moments. These are important ones!

1. Don't wait. Just write the book. (Thanks Alan Weiss-I know you had been telling me that for nearly 10 years. I believe you now.)

As the people at Nike say...just do it!  And please consider posting an honest review about The Membership Economy on Amazon, Barnes & Noble or any other favorite online book community. If you've written a book, you know how much they seem to matter!

Thanks!

How to Ask for a Testimonial

1.  Track when someone  you work with, and especially a manager or client, says something nice about you.  Then when you ask for a testimonial, you can even say, “After we finished the ACME project, you said something really kind to me, to the effect of this, and I was hoping I could use something like that as a testimonial” and then you can quote what they said as best as you recall.

2.  Track your results on key projects, so that when you ask for a testimonial, you can provide specific bullets describing your work in your request.  For example, you could say “I’m hoping you’d be willing to write a testimonial for me, which talks about our work together doubling revenue for the XYZ brand.”

3.  Make it as easy as possible for the person to write it—offer to draft something based on your work together that they can edit as they like.

4.  Help the person to understand why the testimonial is important to you.

5.  The most important thing is to nurture your community and build relationships with the people who can help you and whom you’ve helped.  If you have real, authentic relationships, people are going to be much more likely to want to help you, and it’s going to be much easier to ask for that help too!

As I work on my book, The Membership Economy, I have received many questions from independent consultants, asking how they can incorporate principles of membership and subscription to grow their reach and the value that they can provide to their own communities.

Here are seven ways even the smallest, leanest community is able to win in the Membership Economy:

1. Start with sound value proposition, even before community is established.
2. Attract new members through an abundance of free and low priced offerings.
3. Create additional value from networked effect.
4. Balance virtual and in-person programming.
5. Balance big group exchanges, small group opportunities and opportunities for individual benefits.
6. Take advantage of technology to enable user-generated content.
7. Change and grow offerings as membership needs change.

"Beyond the Basics: Independent Consulting for the Experienced Consultant " Free Webinar Recording

I'm delighted to make available a recording of a webinar I did yesterday at the University of Texas' McCombs School of Business.

Click here for this 60 minute webinar.  It is designed for people who have been consulting for awhile, looking to take their practice tot he next level.

Seminar on Strategy 3/13 11AM Pacific -- Free for My First 50 Readers!

The top people in the organization set the strategy.  And then lament the fact that no one else seems to be strategic in the organization.

If you want to be successful in business, you must master business strategy, and be able to think strategically

Learn how to step back to leap forward in this powerful 60 minute seminar.

Join me March 13 at 11AM Pacific, and learn:

1. What strategy is and why it’s so important
2. Why most strategic plans sit on the shelf, and never become reality
3. Why strategic thinkers get promoted over hard workers every time--and how you can stand out by thinking smarter
4. How to get your whoe team thinking more strategically in less than four minutes
5. Why your boss's tactics translate into your strategy
6. How to use data and testing to quickly get others to support your vision
7. How the internet and mobile technology are dramatically changing the way strategy is developed

Whether you’re the CEO trying to build a more agile organization, or developing the skills to be a bigger picture thinker-- this teleconference is for you.   Because space is limited, and seats are available on a first come, first serve basis, please reserve your space in advance to ensure you are included.

Use promocode STRAT14 to get a complimentary spot -- special to blog readers!

Big Game Hunting

I was talking yesterday with a woman I recently started mentoring.  Like many of us, she has numerous
skills and areas of expertise, which appeal to a variety of different potential clients.  She told me that she has been trying to keep all of her doors open because she’s just getting started and really needs business for cash flow.

What came to mind as she spoke was hunting.  This woman hadn’t decided if she was hunting birds, deer or rabbits.  She was just shooting haphazardly in all directions.

She should pick one, especially because she is cash constrained.  If you have limited bullets, you want to know as much as you can about your target, make sure you have the right hunting dog (Is it a terrier—bred for rodent hunting, or a lion-chasing Rhodesian Ridgeback?  Makes a difference!).

Collect all the data you have about each of the potential target markets you are considering, and prioritize by likelihood of success.  Consider your resources as well as the market size and fit.  And dedicate a defined amount of time and resources to testing that market.  If it doesn't pan out, move to the next option—but give the first one a chance to be successful.

With corporations, it’s possible to pursue multiple markets and introduce multiple products concurrently—but each of these opportunities requires dedicated time and money.  It’s the same with consulting.  The more markets, the more money you need to pursue them.  If you spread your limited resources too thin,  you’re simply firing scattershot.