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P u b l i s h e d b y M G I / S e r v i c e s a n d C o u n s e l i n f u n d - r a i s i n g a n d c o m m u n i c a t i o n s

How do consultants add value?Consultants provide a complete solution, from problem analysis to implementation of change, adding real value to the organizationsthey work for in the process.

efore hiring consultants for a givenproject or specific task, rather thanemploying staff on a permanent basis,

it’s important to weigh the tangible benefits aconsultant can offer and, if you decide to go for-ward, identify the criteria you’ll use to selectappropriate counsel.

When should you use consultants?

Consider using outside consultants if you are:• Setting up a new program or activity • Expanding or upgrading your existing program • Considering a capital/endowment campaign or

other special project There are many types of consulting practices;you’ll see consulting services described in differ-ent ways. A few of the distinctions are illustratedby the following questions.

Do you want the consultant to do a specific task(project), such as design a direct mail plan,introduce new technology, write new plannedgiving policies and procedures or help restruc-ture the development department? This is some-times referred to as project or task-based con-sultancy.

Do you want the consultant(s) to help people inyour organization think and talk through whatneeds to be done about a particular task – thenleave it to the organization, rather than the con-sultant, to complete the task (project)? This maybe called process or solution based consultancy.

In practice project- and process-based servicesoverlap in most consultancy projects. The typeof work you want done will affect the sort of con-

sultant you seek as well as what you can realisti-cally expect to achieve.

Why use consultants?

Although the rationale for hiring outside counselvaries widely, it can usually be attributed to oneof these reasons: • As an extra resource to deal with a tem-

porary workload peak. Organizations relyon staffing to cover an average or expectedworkload over a given period of time yet,inevitably, there will be peaks and troughsthroughout the year. During the peaks the cur-rent staffing levels may be insufficient and con-sultants can be used as added cover.

• To tackle a specific problem thatrequires a particular skill set and/or anexternal view. With today’s ever-changingcustomer, technology and legal requirements,it is inevitable that an organization will uncovergaps in its available skill sets. In these situa-tions it is often desirable to buy-in consultantsrather than permanently employ someone. Theconsultant will not only be able to bring in thenecessary skill(s) but will also have transfer-able knowledge from previous projects.

• To provide required skills that theorganization cannot afford to perma-nently employ. Unique, or at least rare, skillsare expensive to buy in permanently and anorganization may find that the workload doesnot justify this continuous expenditure. Inthese situations consultants can be used ad-hoc to provide cover. This can lead to substan-tial savings when compared with the option ofemploying someone.

• To benefit from the objectivity of an "out-sider." One of the real values of consultants isa new set of eyes looking at some problem and

re-examining the set of assumptions that led tothe problem. This includes asking questionsthat permanent employees don’t dare to askand questions that everyone thought somebodyelse had already asked. As objective observers,consultants can analyze issues, develop anoverall plan of action, and help monitorprogress.

• To facilitate discussion and build con-sensus.

• As a means to "reality test" plans andstrategies.

What should I get out of it?

An organization that is looking at bringing in aconsultant should first decide what would consti-tute a positive, tangible outcome. A well-writtenreport that simply sits on a shelf will not achievethe real objective of, say, testing the feasibility ofa capital campaign. The desired tangible out-come will be a practical solution that achievesreal improvements in, for example, how yourorganization communicates to the alumni.

Value-based consultant relationships start withcreation of a “consultant relationship roadmapto creating value.” Understanding what theorganization wants to gain from the relationshipand identifying priorities will establish a baselinefor consulting services. To ensure results areachieved as the program progresses, and is con-tinually adjusted to match changing businessneeds, a regular “value health check” of the con-sultant program is recommended. This allowsthe relationship partners to continually monitorthe pulse and the vitality of the relationship andmake adjustments, if needed, to ensure align-ment and a focus on sustainable organizationvalue.

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M G I / S e r v i c e s a n d C o u n s e l i n f u n d - r a i s i n g a n d c o m m u n i c a t i o n s

About the author…

John Martin has more than30 years experience in thenot-for profit field, on both theorganizational and consultingsides.Through his consultingwork with clients seekingcounsel for major capital andendowment campaigns,Mr. Martin has earned areputation as one of NorthAmerica's top strategists forthe not-for-profit sector. Hisbrash mix of social concernand aggressive business smartshas helped raised hundredsof millions of dollars for colleges, hospitals, humanservice organizations and arts and cultural groups throughout North America.He can be reached via email:martinmgi@cs.com

Publisher: John A. Martin, CFRE

Editor: Pamela Capriotti, CFRE

Contributing Editors:Elizabeth HamrickBecky WatsonJohn Schwietz

Published by:MGI Fund Raising Consulting, Inc.600 South Highway 169,Suite 180Minneapolis, MN 55426

For information on our services, call toll-free 1.800.387.9840 (U.S. or Canada)

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Reproduction without permission is prohibited. Brief extracts may be made with due acknowledgment.

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How to Select Counsel?

Preparing to hire counsel• Build consensus internally that retaining counsel has merit.• Write an RFP (request for proposal) that clearly spells out the institu-

tion's objectives in using counsel, the qualifications and experienceyou seek, and the process for submitting a written proposal for yourconsideration.

• Decide what criteria will be most important to your institution inselecting counsel, i.e., prior experience in your community, with yourtype of institution, etc.

• Decide who will be involved in making the final decision.

Selecting firms to be considered• Ask colleagues in similar institutions, both locally and in other parts

of the country, for recommendations.• Ask your Board members for suggestions. • Call AFP and/or AAFRC (American Association of Fundraising

Counsel).• Keep informed about consulting firms through conferences and pub-

lications.

Conducting interviews with the prospective firms• Ask several firms to submit their credentials for review.• Involve the decision-makers in interviewing two or three firms. • Ask that the individual(s) who will provide the actual services to

your organization be there. • Use a checklist of the criteria by which you want to evaluate the

prospective consultants.

Select and notify the consultants of your decision• Do not forget to inform the consultants that participated in the com-

petition but were not selected that they did not get the assignment.

Finalize a formal contract or letter of agreement

Criteria to Consider When Selecting a Consulting Partner?

1. Preparation for the presentation. 2. Level of interest in your program. 3. Past performance with organizations similar to yours. 4. Prior experience in your community or other communities similar to yours. 5. Capacity to assess your program and/or your readiness to undertake a cam-

paign. 6. Capability to handle your type and size of campaign or project successfully. 7. Appropriateness of proposed services to your organization's needs. 8. Creativity and flexibility as demonstrated by prior experience and the pro-

posal to your organization. 9. Ability to provide related services that your organization might need later in

the program or campaign. 10. Prior experience and competence of staff proposed to work on your pro-

gram. 11. Sensitivity to your organization and its mission. 12. Compatibility with your community. 13. Ability to work with your leadership and board; ability to work with your

staff. 14. Fee appropriate to the level and nature of the service proposed. 15. Availability to respond quickly to your needs. 16. Credibility and integrity of firm.