By Peter Buckingham CFE CMC
Many of the big names of the franchise industry, in their semi-retirement, hang out the shingle to offer their services to anyone who believes their story, and also become a “Consultant”. Interesting how their views on Consultants can change!
Whether you are a franchisor or a franchisee, the offer of a “let me make it right for you” solution can be either an effective fix, or an expensive exercise for your business.
Consultants are seen as a strange breed by many in franchising… Experts, Boffins, Propeller Heads, Conmen, something in between all of the above, or someone who can really help your business. Most come with experience and ideas, and it is their responsibility to perform or else for you!
There are many different varieties of consultants in this industry including:
- Franchising Consultants
- Marketing Consultants
- Brand Consultants
- Demographic Consultants
- Management Consultants
- Security Consultants
And a heap of professions that are in my view consultants as well:
- Accountants
- Lawyers
- Banking advisors
How do you pick a consultant to assist you, and how do you work with them to achieve what you are looking for?
The first thing I say is that you are not hiring a consultant by the hour, but rather for the years of experience they bring to the issues you need assistance with. Most good consultants come with the necessary experience, and reasonable academic qualifications. On top of this there are qualifications issued by groups such as the FCA (Franchise Council of Australia), the AIM (Australian Institute of Management) and the IMC (Institute of Management Consultants) to name a few.
When you go to a doctor, a lawyer, an accountant or a surgeon, you actually know they have achieved a professional level to be allowed to work in their profession. Unfortunately there is no such requirement of consultants across Australia, and the right to “hang out a shingle” is one anyone can do, whether they have experience, qualifications, or have just run a hot dog stand!
Good consultants, like lawyers, should be both qualified and keeping up to date with their area of expertise. The FCA runs programs aimed at Professional Development for the “Suppliers” to the industry, and offers qualifications to recognize this – including the CFE.
A qualification issued by the IMC (worldwide) is called the Certified Management Consultant (CMC), and held in similar esteem to the CFE in franchising. It is only granted to experienced consultants who demonstrate correct process in the projects they undertake.
How do you choose a Consultant?
In my view, you want to engage a person who has the qualification, expertise and experience to solve your issues. Value is the key to engaging a consultant, both in what they can deliver to you in terms of benefits, compared to the costs they incur to you. Think in terms of $ benefit compared to $ cost. If all you are concerned about is the cost side of the equation, then remember you get monkeys if you pay peanuts. If you wish to ask for a quote, just make sure you are comparing like to like. It is very easy for someone to hang up a shingle and claim they are a consultant (at a low cost) and can do everything!
I also suggest you think of your lawyers and accountants as consultants. It amazes me how we will be talking to a client, and when asked about their lawyers, we hear they are using their local suburban lawyer. This to me would be similar to asking a divorce lawyer to handle your commercial franchise agreement. In my past life in Caltex as a Property Manager, it always annoyed me when a lessor would use his suburban lawyer to try and “re write” the lease document that was the standard from the Law Institute.
Specialist Franchising Lawyers and Franchising Accountants are there to handle franchise issues. Would you have your local doctor undertake brain surgery for you, because he was entitled to be called Doctor?
Another area you may want to ask a Consultant about is do they have suitable Professional Indemnity Insurance and Public Liability Insurance? If there is a problem based on advice or actions you have taken following a Consultant’s recommendations that have cost you a large amount of money, you may want to take legal recourse.
How do you brief a Consultant?
My suggestion is to have a list of what you wish to achieve. That may be broad things like:
- Find me suitable locations to open new stores
- New marketing image
- Develop our Strategic Plan
- Improve Revenue
- Improve our website
- Implement a process for site selection
- Reduce risk from legal issues.
- Online Operations manual
These may come from your Business Plan, a SWOT analysis, or just areas that you see are causing problems in your business
Once you know the areas you need assistance in, construct a simple brief, possibly with some measurable achievements:
- Implement a local marketing campaign where we expect 5% coupon returns
- Improve revenue by 20% average within 12 months
- Achieve 10% improvement in Mystery Shopper score for my site.
This is often a process more about educating yourself on what you want to achieve, rather than just saying to a consultant “fix everything”.
How do you engage a consultant?
Once you have it clearly in your mind what you wish to achieve, then it is the consultants job to convince you that they can do it, and meet your expectations in a timely, and in a cost effective manor.
This may involve replying to your brief, forwarding a proposal which may include references and relevant experience in similar jobs, and who will be involved on your project, and their experience and qualifications.
Once you are satisfied that this will achieve your aims, then you engage the consultant to undertake the specified work that has been agreed on.
Summary
Engaging a consultant is a balance between benefits they can achieve for your business, and cost or risk reduction for your business. Having a clear idea in what you want to achieve, you can brief the consultant, and measure their performance for your business. Don’t be mislead by low costs, under qualified and inexperienced consultants.
The consultant you engage must be of value to your business, so select well, as they can make good money for your business, and in some cases turn your business completely around for the better.
Use a Consultant wisely and define what you aim to achieve!
Peter Buckingham is the Managing Director of Spectrum Analysis Australia Pty Ltd, a Melbourne based mapping, demographic and statistical consultancy, and a Fellow of the IMC. Peter was a Federal Director of the Institute of Management Consultants and Vic / Tas Chapter President. Spectrum specializes in assisting clients with decisions relating to store and site location using various scientific and statistical techniques. To contact Peter email peterb@spectrumanalysis.com.au or call on (03) 98300077 0r 0411604921.