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Highlights first synced by [[readwise]] [[September 2nd, 2020]]

• When we walk away from a client, the client’s condition should be better than it was before we arrived, or we’ve failed. (That “we” may mean both the client and we have failed, but we share in the failure in any case.) (Location 216)
• But he never did calculate the fatigue factor inherent in virtually all physical labor. People tend to get less efficient the more they work. When this became apparent, Taylor simply made up numbers out of thin air to accommodate this inconvenient reality. His work was discredited during his lifetime. (Location 230)
• I submit to you that the diagonal represents the power in consulting: the consultant who can apply and transfer skills and who also has an impressive ability to tackle content areas. That person becomes a collaborator with and partner to the client, and is far more valuable (can demand higher fees) than either colleague at the maximums of the other axes. (Location 261)
• When you see a request for proposal (RFP), which is really a predetermined alternative (“We seek a three-day leader training workshop to include case studies …”), that’s an arbitrary alternative created by people who know what they want but probably not what they need. (Is the leadership problem a result of poor attitude and not poor skills?) (Location 288)
• One of the primary flaws of unsuccessful consultants is that they accept client wants as the real need. (Location 313)
• Your own beliefs and value and firm history are irrelevant and hugely boring to buyers. What fascinates them are their own history, values, and beliefs. (Location 322)
• Any time you are charging by the time unit, you are in an ethical conflict with the client. The client is best served, as we’ve just established, by quick resolutions. But the consultant, in this structure, is best served (makes the most money) by taking the most time. That is more than impractical or an unwise business approach. (Location 939)
• investment. I urge that you provide at least a 10:1 return, which clients are not obtaining in any other endeavor or investment. (Location 950)
• The most ludicrous, bizarre, and dumb approaches to pricing are those that tell you to estimate your yearly financial needs (there’s an easy one, right?), divide by your available hours (which means discretionary time is not your wealth because you’re surrendering it), and divide to reach an hourly rate! I can assure you there are no seven-figure (or even mid-six-figure) consultants doing that who are leading a rational life. (Location 953)
• Why Value-Based Fees Are Best for the Client No investment decision is needed every time the client may require your help. There is a clear cap on costs. Speed is rewarded, with its commensurate client benefits. The return on investment is clear and predictable. The client is better equipped to defend and justify the investment. There is unlimited access to you (which is never abused in reality). There is no confusion about motive (if the consultant recommends something, it’s because it’s needed, not an excuse to bill more hours). (Location 962)
• The legal profession is S…L…O…W…L…Y learning to stop billing by 60-minute increments, but the vast majority of lawyers still bill by an hourly rate. (Location 971)
• Since wealth is discretionary time, reducing labor intensity is as important as raising fees. Years ago, my financial advisor told me that paying down debt was the equivalent of saving. I’m not a financial expert, but I am a consulting expert, and I can unequivocally tell you that reducing labor intensity is as critical as raising fees. (Location 974)
• Too many people work like crazy to increase revenues while concurrently eroding their wealth. (Location 977)
• The problem with a “six-step strategy model” or a “five-part sales improvement process” is that you feel honor-bound to deliver all those steps, irrespective of whether the client really needs them. (Location 991)
• Never accept a consulting alternative from the client (“We’re seeking a three-day leadership workshop for 20 managers”). They are usually both arbitrary and unduly labor intensive. (Location 996)
• Shift work to the client. (Location 1000)
• Use the client to schedule and to provide administrative support, office space, guides, past documentation, summaries, and anything else you can think of. (Location 1000)
• Questions to Determine the Economic Buyer 1. Whose budget will support this initiative? 2. Who can immediately approve this project? 3. To whom will people look for support, approval, and credibility? 4. Who controls the resources required to make this happen? 5. Who has initiated this request? 6. Who will claim responsibility for the results? 7. Who will be seen as the main sponsor and/or champion? 8. Do you have to seek anyone else’s approval? 9. Who will accept or reject proposals? 10. If you and I were to shake hands, could I begin tomorrow? (Location 1076)
• Here are 10 examples of questions: 1. What is the ideal outcome you’d like to experience? 2. What results are you trying to accomplish? 3. What better product/service/customer condition are you seeking? 4. Why are you seeking to do this work/project/engagement? 5. How would the operation be different as a result of this work? 6. What would be the return on investment (sales, assets, equity, etc.)? 7. How would image/reputation/credibility be improved? 8. What harm (stress, dysfunction, turf wars, etc.) would be alleviated? 9. How much would you gain on the competition as a result? 10. How would your value proposition be improved? Hint: If a buyer does give you an arbitrary input or deliverable, simply ask why it’s important and what it’s supposed to produce. (Location 1127)
• Questions to develop metrics may include the following 10 inquiries: 1. How will you know we’ve accomplished your intent? 2. How, specifically, will the operation be different when we’re done? 3. How will you measure this? 4. What indicators will you use to assess our progress? 5. Who or what will report on our results (against the objectives)? 6. Do you already have measures in place you intend to apply? 7. What is the rate of return (on sales, investment, etc.) that you seek? 8. How will we know that the public, employees, and/or customers perceive it? 9. Each time we talk, what standard will tell us we’re progressing? 10. How would you know it if you tripped over it? (Per Bob Mager) (Location 1154)
• Most consultants tend to bundle their products and services because they basically are insecure about their worth and want to provide as much stuff as they can to justify fees. That’s why my system begins with conceptual agreement on outcomes and value. (Location 1254)
• Learn this phrase: “Referrals are the coinage of my realm.” (Location 1280)
• Here are examples of inputs (deliverables) turned into outputs (results): Input Output • Run a focus group • Gain employee commitment to change • Observe workplace behavior • Validate management interventions • Standardize the sales process • Decrease costs of business acquisition • Improve advertising • Increase top-line revenue growth • Debug technology • Improve competitiveness (Location 2572)
• The Nine Components My proposals are all about two and a half pages and have nine components. That’s it. There are no resumes, company histories, or obsequious love notes to the buyer. (Location 2628)
• Situation Appraisal (Location 2637)
• Objectives (Location 2649)
• Measures of Success (Location 2655)
• Value (Location 2660)
• Methodology and Options (Location 2665)
• Timing (Location 2676)
• Joint Accountabilities (Location 2680)
• Terms and Conditions (Location 2696)
• Acceptance (Location 2717)
• Don’t agree to a formal, large presentation. Meet individually with the buyer. (If the buyer wants a more formal staff presentation later, that’s fine, but after you two have met privately.) (Location 3168)