The Expert Edge

Why Can’t You Pick a Consultant’s Brain for Free?

Guest author: Carole C. Edman, SPHR, of HR Manager To Go Consultants.

In her Forbes.com blog post, consultant Adreinne Graham describes the complex issues consultants face when friends, family, potential clients, and business colleagues ask about business issues during informal conversations. These are often requests for professional advice, which we all give at times. Yet we are paid for our expertise and knowledge, which we tailor to specific client projects and situations. Graham’s response is a resounding, “No, You Can’t Pick My Brain. It Costs Too Much!”

Does this sound familiar? Their “…mission is to pick my brain to gather as much free intel and knowledge they need to make their jobs easier.” Graham says, “Not gonna happen, sorry. My brain costs money to maintain. There’s training, classes to attend, reading (I have to buy books), gaining certifications, costs of memberships so I can network, attending conferences and mastering my skills that all cost me money.”

Physicians hate to be cornered at cocktail parties or family dinners! We understand that doctors, at a minimum, need to review patient history to give proper medical advice. In HR, employees often ask about a personal issue or want to talk off-the-record, but we can't violate client policies. Even though we may want to help, we can't.

Every professional must decide what is appropriate and when to give free advice without the proper context and without payment. Prospective clients sometimes push the boundaries, too, by:

• Picking the consultants brain as a test of knowledge, like taking a new car on a long test drive.
• Spending too much time discussing details before approving a consulting agreement.
• Asking for lengthy proposals that explain exactly how the client's problem would be solved.

Assessments require an up-front consulting agreement and fees, with confidentiality terms to protect both parties. Otherwise, the proposal can be shopped around for a better price, leaving the consultant uncompensated for a good faith effort.

It isn't easy to say no, but establishing clarity at the first contact makes navigating tricky issues much simpler.

© 2011 Carole Edman & Associates

Senate Repeals New Requirement for 1099s

Today's guest author, Jim Lansing, of San Francisco Management Group, shares some timely information about a legislative repeal that is especially important to independent consultants and therefore to PATCA members.

First, some background. All independent consultants who have clients have had to deal with the 1099 MISC issued by their clients after year end if they have been paid over $600 over the course of that calendar year for their services. So, that is no surprise and an easy tax requirement to live with for clients engaging independent consultants as well as consultants themselves. 

However, when the Healthcare Bill was passed by Congress last year, it contained a provision requiring all businesses, including landlords, to submit a Form 1099 MISC to the Internal Revenue Service for every vendor from which they purchased $600 or more worth of goods or services during the course of the calendar year, starting in 2012. The idea was that such a requirement for  third-party reporting of income would make businesses less likely to try to hide income from the IRS. What a bureaucratic paperwork headache!

The effect of this new 1099 requirement on clients in having to file hundreds of 1099 forms during the year instead of just a few would likely have been to put a selective damper on the use of vendors. Since the 1099 requirement would not have applied to corporations, the pull on clients to use corporate consultants instead of independent consultants would have been strong.  

Now both the House and Senate have passed legislation to repeal this reporting provision of the Healthcare Law and the President is expected to sign it.

Most of PATCA's members are independent consultants, not corporate consultants, so it is with great relief that this latest threat to obtaining future business clients has been repealed.

Read more on:

Yahoo News

Washington Business Journal

Techniques for Converting Potential Clients

Two blog posts caught our attention this week, and coincidentally, they both offer similar insights. Interesting reading for consultants, and a good reminder for 2011.

The first is a very simple idea from Daniel Rose's Blog entitled, "There is No "They," Only "We." Basic idea: get on the same page with your client from the start. Be on the same team. Become part of the group that gets things done.

The second is Carter McNamara's more detailed list of questions to ask a potential client, with the end result being the same. It includes 13 questions to ask that will perfectly establish the consultant as someone who understands the client's needs and desires. This also helps determine if the consultant should become part of a team of stakeholders, or if the consultant should be expected to work independently.

Good insight to have at the start of a new relationship.

How to Treat Your Best Clients

Think all clients should be created equally? Not so, says Michael Zipursky, who writes for Business Consulting Buzz. Here are a few ways to take care of the clients who are loyal to you and give you your best business opportunities.

• Respond to their emails and calls more quickly
• Make more room in your schedule to see them at their convenience
• Go the extra mile for them, not just once or twice, but every time
• Offering to help them in any way you can anytime the opportunity arises
• Send them gifts and notes of appreciation, not only on the major holidays but also at unexpected times.
• Refer them additional business.
• Constantly look for new opportunities to help them grow their business.

Read more.

Thoughts on Thought Leadership

There was an interesting article by Dorie Clark recently on the Harvard Business Review blog, called How to Become a Thought Leader in Six Steps. It has particular importance for consultants, since our value lies in our depth of knowledge. We all strive to be known as leading-edge thinkers in our field of expertise, and consultants often struggle with how to "be known."

The article offers some excellent tips for building a following and standing out from the crowd, but the comments from readers were even more thought provoking.

"The first step in being a thought leader is to BE a thought leader. Being smart is not enough - there are lots of smart people who are not thought leaders." - Fred

"If you really want to be a thought leader you need to be thinking less about leverage and more about listening. Once you've listened for a few years, you may begin to see areas where you can lead." - Timothy Ogden

"...there's a role for everyone in an organization to galvanize and inspire others by their logic or their example." - Dorie Clark

... and many more insightful comments.

So, the first step is to develop an online presence and be part of the conversation. What do you think it takes to become a thought leader today, especially for consultants? Add your comments here on the PATCA blog, or on the HBR blog, or both.

PATCA Gets its Name in Inc.

PATCA is very excited to be recognized in the October 19, 2010 edition of Inc. Magazine: How to Get the Most out of Consultants. 

Here's a sample of the story, written by reporter Evan Klonsky:

"Consultants work hard to preserve longstanding, credible relationships with their clients to uphold their reputations. Suraiya Ahmed, president of the Professional and Technical Consultants Association, says that a consultant must also be willing to expand the horizons of your business. In essence, this means seeking to deliver beyond the task he or she is brought in to complete.

"What you're looking for is really a package deal," says Ahmed, who also founded Spectrum Insights, a consulting firm based in Union City, California, that specializes in small-company performance. "Not just a veteran consultant, but one who has either a network of connections or a bucket of expertise."

Read the full article here.