Of course the headline’s promise is a vast overstatement. And as a result, the credible advice I share with you below will be a letdown, which is ironically the point of this blog.
While there are certainly notable exceptions, the IT consulting marketplace has had more than its share of engagements that overpromised and under-delivered. Examples of disappointed companies were seemingly everywhere at APQC’s 2012 Process Conference (held in Houston in late October).
Many companies that lacked a fundamental process structure (i.e., no clear or consistent strategic vision to align against, limited buy-in from staff, no structural governance to own process changes, etc.) all seemed to have expensive technology “solutions” already firmly in place. In some cases, the IT systems integrators had simply delivered what was asked of them by a leader who had bought into process change too early. And in other cases, clients told us their organizations were strong-armed into buying what they didn’t need and weren’t ready to use by IT shops they trusted.
As easy as it is to despise the practice, we all know why it happens. IT consultants are facing daunting challenges: services are increasingly becoming commoditized, pricing pressure is intense, and clients are less interested in the massive systems integration work that justifies the firms’ large and highly leveraged staffing structures. (Those were just some of the alarming takeaways from a recent APQC study of the needs and preferences of buyers of consulting services.)
Based on dozens of conversations I had last week, the word “failed” seems to be synonymous with “ERP” and other big implementations. And it’s not that the technology was bad or IT consultants didn’t install it right. The big projects didn’t live up to the hype, the consensus was, because the client wasn’t ready for the technology. But when you’ve got droves of teams on the bench, it’s understandable that you’ll fight hard for every scrap of work. Even work you know you probably shouldn’t do.
So, here’s my proposal: Instead of accepting the next RFP for a systems integration project for a client that’s looking for a tool to fix its underlying cultural and leadership voids, push back. And instead, offer these three words: “You’re not ready.”
Share your beautiful PowerPoint deck to describe what you could do when they are prepared. Give them the vision of what you honestly think their future state could look like. But tell them that in good conscience it would be a waste of their time and resources to buy the technology now -- before certain readiness benchmarks are hit.
And then watch what happens.
Psychologists will tell you we’re all wired to want what we can’t have – a truism to which virtually every guy over the age of 12 can attest. And, radical honesty has the added advantage of arming the client to push back against the other IT firms bidding on the project. Doing the right thing happens so infrequently that it stands out in clients’ minds.
Honesty isn’t a get rich quick scheme, but it can help you differentiate your firm in an otherwise crowded market.
How often do you tell clients no? We welcome your feedback.