It is no secret ... that the current U.S. economic climate is forcing employers to shed labor costs at record levels in an effort to demonstrate productivity gain and shareholder value improvement. The “proliferation of downsizing” is having a permeating and viral effect within our technology industries and is threatening to morph into a regular line item on quarterly corporate earnings reports. This “me-too” layoff mindset may indeed demonstrate fiscal responsibility, prudent planning towards sustained profitability, and overall operational viability - or not. It may simply be that this is the easiest method to appease an investment community in the short-term. One outcome can be predicted with relative certainty, however: threatening the livelihoods of skilled and dedicated labor forces, at regular intervals, can only result in breeding malcontent, damaging corporate cultures, diminishing reputations, and dissolving customer relationships.Within Information Technology (IT) sectors, in particular, we know there are unrelenting pressures to increase sales and reduce cost of goods sold. Though not a revelation, this stands prominent in the current shadow of industry layoffs, many seemingly arbitrary, where the average employee’s need to survive has superseded their motivation to “go the extra mile”, innovate, and even minimally meet customer directives - a paradox that may actually result in lower levels of personal productivity and corporate effectiveness. Corporate knowledge bases are being compromised and we are now witness to unheralded shedding of experienced talent and knowledge into the open market. Behold the rise of the Independent Consultant (IC).
Unlike prior economic downturns, the current one is giving rise to a new phenomenon thanks to ever-improving technology (thank you Gordon E Moore – Moore’s Law) and the sudden rise of social networking tools. Independent reports are now indicating a near doubling in the year-to-year growth of job seekers turning to self-employment – particularly within the Information Technology market segment. Behold formations of the Limited Liability Corporation (LLC).
Can a social network of IC LLCs provide a better alternative to large IT consulting firms (Consultancies) for those organizations seeking to gain process efficiencies through technology leverage? You bet, and here’s why:
Reason 1: The IC is HUNGRY, NEEDS you as a source of income AND as a reference in order to advertise and grow their business. The IC will arguably do more for you today, be more flexible with contract terms and adaptive to your needs and commitments than any corporate IT consultancy resource could or should.
Reason 2: The IC is more AGILE. Having learned and adopted best practices, received requisite training (certified or not), and remaining well-connected in their disciplines, an IC can quickly address your requirements without enduring the burden of “corporate process” – which, by the way, undoubtedly eroded 50% (more or less) of their average work day in the corporate atmosphere. That’s more time for you!
Reason 3: The IC is more MOTIVATED to be your personal trusted advisor. Successful ICs find the work they perform is more emotionally satisfying. "It all ties back to me -- no one else gets the rewards of the work that I've done”. This attitude contrasts to the increasing demands of corporate consultancies where “Do more with less – and sooner” is the Monday morning mantra and performance evaluations are rated solely on revenue-generating activity and not qualitative value to a client base.
Reason 4: The IC is EXPERIENCED, KNOWLEDGABLE, and CONNECTED. Yes that’s 3 reasons, but after all, ICs can offer more value – see Reason 6. Today’s IC has access to, and is networked with, extensive near-real time resources like never before. In addition to possessing vast experience, learned best practices, and the same training and certification, the rise of web-based social networks such as LinkedIN and collaborative technologies such as document sharing and instant messaging have vastly increased the ability of an IC to tap vast information and research sources in short order. Think of this in terms of “Grid Computing” – we are now witnessing “Grid Consulting” in the literal sense where ICs are virtually networked and have immediate access to a “collective” of peers that arguably can perform better than the traditional reliance on corporate archives, policies, and procedures.
Reason 5: The IC has greater latitude developing solutions and providing deliverables in a more OBJECTIVE and CREATIVE manner. Continuing the concept of Grid Consulting, the IC is NOT limited to the knowledge base of their corporate files nor restricted by the evangelistic methodologies espoused by a management structure that is often disconnected from the needs of its customers. The ever present corporate Code of Conduct largely prevents consultancies from going “outside the box” for fear of compromising conflict-of-interest and non-disclosure clauses. Conversely, lacking this restriction, the IC will readily seek new and different solutions that meet both the requirements of the moment (scope) and potentially are more scalable to future conditions.
Reason 6: The IC has lower economic and process overhead resulting in improved VALUE as a trusted advisor to their clients. A large proportion of LLC organizations are operating from home offices or shared space. The result is that ICs with equal of better skills sets are simply charging less than larger IT consulting firms. In many cases ICs can perform the same task in less time no longer shrouded with corporate process and administrative burden. Unencumbered from religious commitment to timekeeping, forced or inappropriate methodologies, and unsolicited research, the IC can likely better provide what you need when you need it at a lower cost.
Reason 7: The IC will often offer more PRECISION in their deliverable approach. By not selling you unrelated services and subscriptions before the current project has even started, the IC can hypothetically take a project from 10 phases to 5, summarize knowledge capture in 20 pages as opposed to say 100, and most certainly reduce the number of PowerPoint Slides you will be exposed to in the process. In order for consulting engagements to be successful, project scoping and deliverable definition must be specific, measurable, time-bound, but NOT rigid. As you and your organization have “needs”, the IC must verify your need by precisely defining “requirements” and anticipating potential “barriers”. This skill is invaluable, attained only from the experience of previous success AND failure – see Reason 4.
Reason 8: The IC will make you their PRIORITY - see Reason 1. Can you really say that about a large consultancy? You are the proverbial big fish in a little pond to an IC.
Needless to say, in order to be successful, Independent Consultants require suitable business and organizational skills along with flexible and adaptive personalities – pervasive experience and technical acumen aside. Demonstrated integrity and forthright honesty will ultimately present or deny opportunity to them in the future and a good IC will have as much “character” as they do “skill”.
When hiring the IC, explicitly know what your NEEDS are now and what they could become in the future; specifically define the CRITERIA you will use to measure your project’s success; and understand the breadth of SKILL and RESOURCE required in achieving your objectives.
In the end, the business relationship tenet that “people do business with people” is paramount when considering the IC versus the consultancy for your next project. Taking the time to investigate your touch-point to this evolving network of resources is now both justified and prudent.
This blog is provided for informational purposes only and the information herein is subject to change without notice. Level 8 Consulting LLC does not provide any warranties covering and specifically disclaims any liability in connection with this document.
