The BR Blog

One More Time: An RFP Does Not Guarantee Integrity

noreply@blogger.com (Cal Harrison) — Tue, 02 Oct 2012 18:57:00 +0000

A recent scandal in Quebec around the awarding of construction contracts - almost certainly awarded via an RFP process - brings back memories ("deja vu already") of a similar Quebec centric scandal flushed out by Justice Gomery.

Quebec 2012 Scandal

Quebec 2004 Scandal

Selling Warm Over-Priced Pop Door to Door

noreply@blogger.com (Cal Harrison) — Sat, 01 Sep 2012 16:06:00 +0000

True story.

Yesterday two slightly unkempt urchins in bathing suits and flip slops about 6 or 7 years old came to the door of our house and asked if I wanted to buy their cans of pop for $1.00 each. They had four flavours – all no-name knockoffs of the major brands which go for about 13 cents each at Super Valu. 7 cents if there is a sale.

No talk about supporting a charity or helping them buy school supplies - just one question – “Do you want to buy our pop for $1.00 each?”

“No thanks I think we’re good for pop today.”

Silence.

“OK”

And with that they turned and ran across the lawn to try and hock it to my neighbour next door.

This is the third time in a week the urchins have found something in their home to try and sell to the folks on my street. The last sales call was for candy – some sort of jujube type of thing, un-packaged and melting in their bare sticky hands. It was so gross.

The time before was some sort of unidentifiable part to a broken toy. Or maybe it was a crushed battery they found on the street. I’m not quite sure. It was garbage day so it might have been anything fallen from the truck.

The reason I am e-mailing is that if any of you are going to need two sales people in about 11 years I would suggest you track down the urchins and sign them to a deal right now. Motivation doesn’t seem to be an issue for them, they are obviously relentless, and it looks like they take rejection well. They also don’t appear to be fussy about what they sell.

They just sell, sell, sell.

The Consultant with Pink Hair

noreply@blogger.com (Cal Harrison) — Fri, 13 Jul 2012 16:21:00 +0000

It must have been some kind of voodoo or divine intervention that unexpectedly put me in the audience of a presentation by Ken Blanchard and Sheldon Bowles a few years back. It was their presentation that inspired the format of this book and gave me the insight to finally start and complete it.

On Friday June 8, 2012 Friesens Printers of Altona, Canada delivered the first 545 copies of The Consultant with Pink Hair. About 70 are in limited release right now with folks that helped with the production of the book or to whom I promised a copy to at some point over the last 10 years of telling people I was writing a book. Once the new BR website is in place it will be released for sale on Amazon and in select bookstores across North America - likely this September.

The hardcover book is 198 pages and e-versions will be available for most e-readers as well.

In case you're interested the book tells the story of Andrew Braun and Lou Di Angelo partners in a fictional management consulting practice struggling with the real life challenges of being "just another consulting firm" in a crowded market place.

They battle low margins, late nights responding to crazy RFPs, confusing branding advice, and the pressure of too much revenue coming from one big client - and the disaster when that client walks away.

As usual there is plenty of RFP bashing and as promised in an earlier post the bashing isn't limited to the buyer side of that process.

2012 A Shift in Perspective

noreply@blogger.com (Cal Harrison) — Sun, 01 Jan 2012 17:25:00 +0000

For almost 25 years I've been beating up on the professional services RFP - the last decade especially.

Writing for anyone that will publish, speaking to anyone that will listen, the message has always been that the typical RFP for consulting services increases purchasing costs and risks for the buyer, while also decreasing selection accuracy.

The target of the message has typically been the large institutional procurement professional with encouragement from the consulting community.

January 1, 2012 I am shifting gears. The target for my message is now the consulting community.

Why? In the last few years I've seen the procurement community pull ahead of the consulting community on this issue.

How? I'll explain that in an upcoming article.

In the mean time enjoy 2012.

Buying Local May Contravene the AIT

noreply@blogger.com (Cal Harrison) — Fri, 03 Sep 2010 17:29:00 +0000

An article in the Winnipeg Free Press about a large local government ad account (Travel Manitoba) going to an out-of-province ad agency recently got my attention.

Although noone likes to see good revenue leave their local area, Manitoba is a participant in the Agreement on Internal Trade and had they demanded the work be performed locally they may have been in contravention of that agreement.

But agreements aside - this is one more piece of tangible evidence that the selection of professional services vendors is not a local endeavour. In my opinion, for a professional services firm in a smaller market like Manitoba this represents a greater opportunity than it does a threat.

Exclusionary Clauses and The Supreme Court of Canada

noreply@blogger.com (Cal Harrison) — Fri, 03 Sep 2010 17:18:00 +0000

Next week I will be speaking to the Canadian Marketing Association (Manitoba Chapter) and their guests on the subject of procuring professional services. Certain to come up during the discussion is the Tercon decision of the Supreme Court of Canada. To read about their decision around exclusionary clauses click here.

Lisa Stiver, a procurement expert from the law firm Thompson Dorfman Sweatman will be joining me and I'm sure she will provide some good insight into the ruling.

In the article attached, Paul Emanuelli, another RFP legal expert, suggests we "avoid the entire “Contract A” entanglement by using simplified procurement formats".

Sounds good to me.

Applying Category Management to The Procurement Profession

noreply@blogger.com (Cal Harrison) — Sat, 22 May 2010 13:31:00 +0000

I've recently been introduced to another Australian firm via my colleagues at ifindconsultants.com that is proposing the idea of using the category management structure (so often found in marketing organizations) within the procurement profession.

Overall I would say here in Canada we are still a community of procurement generalists (with some pockets of specialization) but I believe increasing returns from procurement will only be achievable through greater specialization.

As well, as we see the complexity of the procured goods and services increasing (such as with professional services), the procurement professionals here are being challenged to keep up with that complexity and have realized that generalization is not the path to get them there.

Apparently the same is the case in Australian procurement.

More on this category management development as it becomes available to me.

Selling, Service, and Innovation

noreply@blogger.com (Cal Harrison) — Mon, 05 Apr 2010 14:18:00 +0000

Kreitner et al (Fundamentals of Organizational Behaviour) discuss three broad types of creativity - creation (making something absolutely new), synthesis (combining existing things), and modification (adjusting some existing thing).

Regardless of the claims of many management innovators that they have "created something new" most have either synthesized or modified existing processes. Try and think of some process or technology developed within the last 20 years that is truly absolutely new and you will soon realize that most are usually an iterative advance over some previous improvement. Even social media which did not exist in it's current form 20 years ago can be argued to be just a different version of the Rotary Club - a place for like-minded individuals to meet and connect.

The purpose of my comment is to not diminish the claims of innovators but to more accurately describe what they have really achieved so we can better understand the value of creativity and innovation.

If your firm is chasing sales, marketing, or customer service innovation in the form of creating new processes or products, maybe it would be better to step back and look at the value and strategic advantage of the synthesis or modification of what already exists.

What's Happening in Australian Procurement

noreply@blogger.com (Cal Harrison) — Fri, 19 Feb 2010 11:31:00 +0000

Tuesday February 9th saw James Leathem, Managing Director of Magnetized Markets (Australia) present to dozens of procurement professionals at The Manitoba Club in Winnipeg Canada. James was a guest of Beyond Referrals and had some interesting research to share. The presentation was also broadcast live on Jon Hansen's Procurement Insight's Business Insights Internet Radio Show.

Procurement of professional services is a big beast and James found a way to make it a more manageable challenge. His firm chooses to focus on the middle space of procurement - projects too big for sole sourcing, but not big enough to require a full blown RFP. He called this the "three quotes" space. Typically this space is either under-serviced ("use who you used last time") or over-complicated (ie: a full blown RFP is used where that expense is not required).

There were a few key lessons that we can take away from James' presentation. First, the challenges around the procurement of professional services seem to be consistent between Canada, the US and Australia.

Second, while it may be easy to find vendors, it is very difficult to find the right vendor. Of the almost 300 companies that Magnetized Markets surveyed about their procurement processes, 54% stated that they were not confident in their processes ability to find the best match for vendors.

According to James' research when a tender is not required, 32% chose to simply use someone they, or their colleague, had used before, 50% used Google - which gave them millions of options but with little meaningful information other than poorly constructed web site information - and 18% used an informal EOI (or some watered down, but overly demanding and poorly supported version of an RFP).

And finally, James pointed out, the "three quotes" space is easy to overlook because it is usually a relatively small dollar value per project but when rolled up into annual spend it represents a significant cumulative dollar value.

The solution, according to Mr. Leathem is to help procurement to push down the buying responsibility for smaller "three quotes" projects to the end user - what he calls "the buyer" but to give them good tools so that they can manage the process effectively, and so that procurement can still be confident that there is an audit trail and reasonable compliance to existing procurement policy. This frees up procurement to focus on the big jobs that require a lot of their attention and time.

For more information about Magnetized Markets and their professional services procurement tool visit www.ifindconsultants.com

For a summary, and to listen to Jon Hansen's broadcast of the presentation visit Beyond Referrals.

Case Studies in Australian Procurement

noreply@blogger.com (Cal Harrison) — Tue, 19 Jan 2010 18:16:00 +0000

Magnetized Markets is an Australian firm that creates procurement software and Beyond Referrals will be hosting their Managing Director, James Leathem of Melbourne Australia for a breakfast presentation in Winnipeg, Manitoba, Canada on Tuesday February 9th. Details are available here.

James will be presenting research as well as two case studies from the governments of Victoria and New South Wales on their use of the Magnetized Markets ifindconsultants and vendorpanel software.

Good Consultant, Bad Consultant

noreply@blogger.com (Cal Harrison) — Tue, 15 Dec 2009 18:43:00 +0000

I was recently forwarded some information about Matthew Stewart, a writer and former management consultant alleging that the industry was populated by frauds and charlatans. In fact he proposes that the industry is a house of cards delivering questionable value to nieve clients.

As a buyer of management consulting services you would be wise to listen to what Mr. Stewart writes as the industry, without a doubt, hosts consultants of questionable value. Just like lawyers that are disbarred, and doctors that are stripped of their license to practice, so too are there consultants that should be relieved of their...briefcase? Laptop? Pie charts? Cerlox binders?

And herein lies the rub. Management consultants are not licensed, not registered, not certified, not examined, or in any way required to adhere to a higher standard of ethical practice or competence.

Although you need a license to fish, apparently anyone can advise industry on strategy.

So how do you prevent yourself from being hooked by an advisory crook? I have two suggestions...

First the easy one. Look for consultants with a CMC designation (Certified Management Consultant). It is an international standard to which fewer than 1% of consultants invest the time, effort, funds, and professional-improvement to achieve. It's not common, because it is difficult to get, so when a consultant gets it, they are watched over by the other CMCs so as to not compromise the value of the designation. It is not mandatory, but it can be taken away, and is valuable and the closest thing the industry has to a "license".

Now the less obvious one - expertise. Make expertise the focus of your evaluation of a potential consultant. You can break that down into their functional expertise (what they do - HR, IT, Finance, etc.), and then their category expertise (the industry they know best - manufacturing, health care, emergency services, etc.). Try to match their expertise specifically to your challenge.

Examples of other engagements demonstrating their relevence and previous exposure to your problem are good indicators of expertise. Writing and speaking about problems like yours are a few others. Is expertise transferable across categories? Sometimes. Across functional areas? Not so much.

If expertise is not obvious consider that a red flag.

If the consultant addresses their lack of specific expertise by displaying their magical process that can address any problem in any sector consider that a second red flag (note: process is important but it does not replace or trump expertise).

If, in desperation, they try to win you over with their splendid personality, I recommend you drop the third red flag and run for the hills. You need expertise, not another name on your Christmas card list.

So at this point I should thank Mr. Stewart for bringing the frauds to light and for rightly holding them to task. It's not something any consultant is likely to relish discussing but good consultants won't fear the discussion either.

This issue must be addressed for the good of the clients, for the good of the industry, and for the good of Mr. Stewart's book sales.

To hear the CBC interview click here and scroll down.

Preserving Public Support for Procurement and Consulting

noreply@blogger.com (Cal Harrison) — Sun, 06 Dec 2009 19:52:00 +0000

The 2009 CMC Industry Trends and Outlook report identifies that management consultants are concerned with the controversy about the profession's image, value-for-money, and ethical standards. Controversies have been fueled in the public arena by recent media stories that infer that less than rigorous standards were used in the selection of consultants. Obviously these accusations defame the procurement as well as the consulting profession, demonstrating again that the reputation of both buyers and vendors are inextricably connected.

It only makes sense then, that the best solution to the challenge of consultant procurement processes will come from collaboration between the two entities.

CMC Canada 2009 Industry Study Highlights Procurement

noreply@blogger.com (Cal Harrison) — Fri, 04 Dec 2009 00:07:00 +0000

The 2009 Canadian Management Consulting industry study was released by CMC Canada recently and it identified "the professionalization of procurement" as one of four industry challenges (the other three challenges were talent scarcity, low barriers to entry and preserving public confidence/demonstrating value. Offshoring was declared both a challenge and an opportunity.).

Comments from the consulting industry reflect a frustration with the RFP process as a costly and time-consuming process for both vendors and buyers - "a tick the box exercise, more focussed on price than value".

The complete study can be purchased from CMC Canada (www.cmc-canada.ca) for $300 CDN (non-members) and $150 (members).

This very informative research project was completed by Carolyn Vose and Associates and based on the response of over 400 management consultants to an online survey as well as select executive interviews and other data.

One ironic twist - CMC Canada selected Carolyn Vose and Associates to complete the study via an RFP process.

Feedback on "How to Buy Professional Services" Speaking Gigs

noreply@blogger.com (Cal Harrison) — Thu, 26 Nov 2009 13:07:00 +0000

The two most recent "How to Buy..." events that I have done are the procurement/consultant event in Winnipeg and the American Public Works Association national conference in Columbus Ohio. The written feedback on these events confirm their value to the procurement professional.

In September at the Winnipeg event, 100% of the procurement professionals that completed an evaluation (about 60%) indicated that the event would either cause them to change the way they bought professional services, or recommend to their organization that they change their process when buying professional services.

In Columbus, 83% indicated that as a result of attending the session they were now better able to "differentiate between seemingly similar professional services providers and make selections that are more project-relevant."

Canadian Business Press Awards

noreply@blogger.com (Cal Harrison) — Fri, 04 Sep 2009 14:04:00 +0000

UPDATE: The CA Magazine feature article on the RFP process for professional services A Decent Proposal written by Cal Harrison was selected as one of Canada's Top 5 best marketing articles at the 2009 Kenneth R. Wilson Awards, produced by the Canadian Business Press. The award goes to a feature article describing the application of a new technology, method, equipment, technique or practice that facilitates improved communication between buyers and sellers in any sector.

Click here to read the article.

The RFP Discussion Continues Around The Globe

noreply@blogger.com (Cal Harrison) — Tue, 18 Aug 2009 19:47:00 +0000

On May 14th I announced that I had agreed to publicly debate my RFP philosophies during a US e-broadcast. Since that time I have had several dates deferred, then cancelled because two different debate opponents have dropped out of site. Is this evidence of limited support for the RFP even from advocates of its use? I'm not sure but I am sure that I will announce the availability of this podcast once it does finally happen.

On other consulting RFP fronts you can expect some lively debate in Columbus Ohio on Sunday September 13th as I present "A Decent Proposal: How to Buy Professional Services" to the American Public Works Association (APWA) conference.

Based on that upcoming presentation, an international peer reviewed journal has solicited an article on the subject from Beyond Referrals and we hope to see it published in early 2010.

And finally, if you have any interest in the consulting or consulting procurement business in Manitoba we are hosting another Consulting RFP Round Table Discussion at The Manitoba Club Friday September 25th in the morning. We'd love to see you there - it's almost at capacity but feel free to contact us about a "place at the table".

We Ran Out of Time Before We Ran Out of Steam

noreply@blogger.com (Cal Harrison) — Sat, 23 May 2009 01:57:00 +0000

When 20+ consultants and 20+ procurement specialists get in a room together to discuss the use of the RFP to select professional services providers there is bound to be great discussion.

This past Thursday at The Manitoba Club in Winnipeg, Canada the discussion was inspiring. It seems there is in fact hope for improving the way the RFP is used in professional services.

Moderated by Cal Harrison the opening question asked "Why did you make the time to come here today?"

The first consultant to answer indicated he was there to gain a broader perspective on the process.

The first procurement person to respond was there to improve the process for all parties involved.

And in the interests of professional collaboration, the discussion just got better from there.

After an hour of great and healthy debate it was obvious a second session would be required. Watch the Beyond Referrals website for the next session in the fall of 2009. A brief summary of the observations and learnings from the first session will also be posted here soon.

Test Driving A Consultant and Vice Versa

noreply@blogger.com (Cal Harrison) — Fri, 15 May 2009 10:31:00 +0000

If we consider the purchase/sales period of a client/consultant relationship as the "dating" stage, then it makes sense to pay particular attention to the way each treats each other during this time. It's an early indicator of the potential for stress and/or success during a project.

A collaborative approach based upon open discussion during this stage will set the tone for a similar working relationship, while a confrontational arrangement characterized by limited disclosure, lack of trust, and hierarchical status can also expect to follow through to the relationship.

Clients need to know that early during the sales period, consultants are watching carefully for "bad client behaviour" - unreturned phone calls, lack of preparedness, one-sided demands, unrealistic budget expectations, scope creep, limited ability to make decisions or poor access to decision-makers. Successful consulting requires good access to clients and their information and no consultant wants to begin a project that has little chance of succeeding.

Conversely consultants need to know that clients are dealing with significant issues of buyer's remorse even before the deal is struck. Normal issues of "potential for regret" around any large purchase are exacerbated by the intangible nature of any advisory purchase. Buyers are watching their consultants for signs that they may not be the right firm for the job such as the partner-associate "bait and switch", focus on hourly rate instead of value, and a lack of clear definition of deliverables.

The purchase/selling stage is not just a time for selecting and negotiating the greatest value for dollars it's also the earliest formative stage of the relationship that needs to be created in order to achieve a successful consulting project.

RFP Debate Announcement

noreply@blogger.com (Cal Harrison) — Thu, 14 May 2009 22:09:00 +0000

Cal Harrison has been invited to discuss the pro's and con's of the RFP process as applied to professional services selection on one of America's leading procurement venues.

The debate will be available as a podcast and more details wil be made available as they are confirmed.

RFP Round Table Discussion

noreply@blogger.com (Cal Harrison) — Thu, 14 May 2009 22:04:00 +0000

Thursday May 21st at The Manitoba Club in Winnipeg, Cal Harrison will be hosting a round table discussion on the use of the RFP as a tool to select professional advisors.

Leading big 5 consulting, architecture, engineering and legal firms will join procurent professionals and clients from several levels of government, crown corporations, health care and big industry to explore ways to improve the selling and buying of professional services.

The event is by invitation only but we will be sharing the insights with all our readers.

The event is being sponsored by Beyond Referrals, The Purchasing Management Association of Canada, and CMC Manitoba.

New QBS Procurement Legislation in Quebec

noreply@blogger.com (Cal Harrison) — Mon, 16 Mar 2009 23:37:00 +0000

This from page 2 of the Consulting Engineers of Ontario December 2008 newsletter (link is below)...

"The Province of Quebec passed legislation this summer that requires its provincial ministries and agencies to use qualifications-based selection (QBS), rather than price, to procure engineering and architectural consultants. As is appropriate for professional services, firms are selected based on qualifications such as appropriate expertise, knowledge and understanding of client needs, proven performance, and/or availability of key staff. Detailed scope and fees are subject to post-award negotiation. Congratulations to our colleagues at l’Association des Ingénieurs-conseils du Québec. Quebec has become the first jurisdiction outside of the United States to mandate the use of QBS in legislation."

Link to Article

Alternatives to RFP's - CAUBO in Ottawa

noreply@blogger.com (Cal Harrison) — Mon, 23 Feb 2009 01:53:00 +0000

Saturday June 13th at The Westin Ottawa The Canadian Association of University Business Officers (CAUBO) is hosting a half day pre-conference seminar delivered by Cal Harrison, President of Beyond Referrals. "Alternatives to RFP's for the Selection of Professional Services" will again focus on teaching procurement professionals, new and better ways to select management consultants, architects, engineers, lawyers, IT professionals and other experts.

The Best Show in Public Works

noreply@blogger.com (Cal Harrison) — Thu, 29 Jan 2009 17:14:00 +0000

More proof that the procurement community is interested in ditching the RFP...

Beyond Referrals has been invited to speak at "The Best Show in Public Works" - the 2009 APWA (American Public Works Association) Congress and Exposition September 13-16 in Columbus, Ohio. We'll be presenting an updated version of the session we delivered at the PMAC National Conference in May 2008 - A Decent Proposal: How to Buy Professional Services.

I look forward to seeing you there.

UK RFP Advances?

noreply@blogger.com (Cal Harrison) — Tue, 13 Jan 2009 10:05:00 +0000

While in Barbados at the Conference of the Americas in November I spoke with Dr. Brian Ing the head of the International Council of Management Consulting Institutes. At that time he mentioned that the UK consulting industry has made significant headway working with the purchasing community to alleviate the less functional and more onerous components of the RFP process when selecting management consulting firms.

More on this in future posts as I explore the processes in the UK industry.

Buying Professional Services: An Alternative to the RFP - November 2008 Seminar Feedback

noreply@blogger.com (Cal Harrison) — Sun, 21 Dec 2008 17:11:00 +0000

November 12, 2008 Beyond Referrals presented a half-day seminar on the above topic to a group of purchasing professionals in Winnipeg Canada. Their written assessment of the seminar was overwhelmingly positive and proof again that the purchasing community is open to better ways than the RFP to select professional advisors.

95% of all attendees indicated they would be recommending the Beyond Referrals seminar to another purchsing professional and 90% indicated that they would be changing the way they purchase professional services as a result of attending the seminar.

Change is coming...