Hiring a consultant can provide you the best of times, or the worst of times. It all depends on how effective you are at hiring a consultant who is experienced and qualified to work with your company. Why this caution? Because the consulting business has grown to be the third leading identifiable trend occupation in the United States over the past decade with one and two-person firms accounting for approximately 40 percent of all consulting billings. But, 95 percent of those individuals who enter the field of consulting are out of business within five years. That's why it's important to hire right.
   Hiring a qualified consultant has many advantages, not the least of which is bringing into your firm a level of expertise that is often not affordable to staff on a fulltime basis. Consultants also bring great objectivity. The adage that you may be too close to the forest to see the trees is frequently a reality. A capable, experienced consultant looks at your business with a fresh set of eyes, and because he or she is not an employee, is frequently able to address the elephant that no insider wants to tackle. So, whether your consultant comes from a large firm, a boutique firm or is an individual, independent consultant, you can benefit if you follow some simple guidelines in these five fundamental areas:

    History

   A history of results and excellence in performance. Client testimonials, references and a history of repeat business provide evidence of a successful track record. Any consultant with five or more years experience should have an ample list of clients for you to check with.

    Expertise

    Even relatively new consultants should bring proven examples of expertise in the fields which they consult. Obviously the longer they have worked in their field of expertise, the deeper their knowledge should be. No one can be an expert in all areas, so beware of the generalist who paints too broad a picture of expertise. Competent consultants know their limits; they also know capable people whose expertise can support their strengths.

    Lifelong Professional Education

   Times change and so do solutions. Thus it is critical that regardless of past experience, your consultant keeps current through continual education. Attendance at industry workshops, national conferences and topical research are integral for staying abreast of industry trends. Find out what they do to keep up.

    Ethical Standards

   It would be nice to assume that everyone you do business with has high ethical standards. If that were true we wouldn't have had debacles like Enron. One way to be sure of this important aspect is to look for a consultant with a Certified Management Consultant (CMC¨) designation. This designation is awarded to consultants who have demonstrated a history of substantive results for clients, adherence to the cannon of ethics of the Institute of Management Consultants USA and professional practice management. Global standards of technical competencies and professional conduct are set by the 43-nation International Council of Management Consulting Institutes. A minimum of five years of continuous consulting and successful results are required for certification application.

    A Professional Affiliation

    Industry professionals who are committed to staying on top of their game generally participate in their industry trade organization. In the case of consulting, The Institute of Management Consultants USA (IMC USA) is the premier professional association and sole certifying body dedicated to individuals consulting to management. IMC members range across nearly every discipline and industry, thus the association provides an incredible resource of diverse expertise across the nation. While there may be other consulting groups, IMC is considered "the" professional consultant's trade association.
   Once you are sure your consultant fairs well the above criteria, here are a few additional things to consider:

     Clear about the work you expect the consultant to perform and expect that clarity to be described in the "Scope of Work" section of the consultant's proposal/contract/letter of agreement.

     If you are hiring a large consulting firm, be sure that the individuals presenting to you are the ones who will actually be doing the work. If not, be sure you meet and feel comfortable with the expertise and style of the individuals assigned to your project.

     Evaluate the consultant's personality, chemistry and working style to make sure it's a good fit with your company culture.

     Make sure the consultant has good listening and communication skills; these will be important for a successful outcome.

     Be sure you understand fees and terms; these should be clearly stated in the contract or letter of agreement, including any travel or direct expenses.

     If proprietary information is collected, clarify conditions by which data can be used and who will have access once the project is completed. Determine if a letter of confidentiality is appropriate.

     Determine under what conditions one or both parties may terminate and be sure it is included in the contract/letter of agreement.

     If the project is long-term, identify how frequently you will receive written progress reports.

     Expect to be available to communicate with the consultant regularly to ensure that misunderstandings are minimized and that progress and timetables are met.

     Recognize that if the scope of the project changes, you can expect to have an addendum (including additional costs) to your initial project scope.

When both the consultant and the client have clarity and mutual respect, great benefits can be derived by employing the outside help of a qualified consultant.

Bette Price CMC, is a Certified Management Consultant and author of True Leaders (Dearborn Trade Press). She writes, speaks and consults on marketing, management and leadership issues and may be reached at www.PriceGroupLeadership.com. Sign up for her True Leader Letter.