risk mitigation guide: client-agency/consultant relationship management
DESCRIPTION
Guide for mitigating risks associated with hiring external agencies/consultants for projects inside your organization. Connect with Caroline Kealey at Ingenium Communications: WEBSITE: http://www.ingeniumcommunications.com TWITTER: @CarolineKealey SUBSCRIBE to the Results Map Blog: http://www.resultsmap.com/category/blog/TRANSCRIPT
©2013 Ingenium Communications Inc.
Risk Mitigation Guide Agency/Consultant Relationship Management
Risks Description Preventative Actions
1. Gaps in quality The agency/consultant does not meet your expectations in the quality of the deliverable
Structure the project to have interim deliverables in order to give a sense for alignment with expectations
Set up validation mechanisms through the project lifecycle
Ensure that expectations are clearly documented as part of contract and project plan
2. Cost overruns Project costs for the deliverable go up, or bills are received for unexpected project components
Structure contracts to focus on deliverables/results
Document inclusions and exclusions for costing in contracting
Formalize terms for milestone payments Document expectations for version control in contract and project plan
3. Scope creep Project evolves to include unforeseen elements, costs and/or time
Define the specific project deliverables and component parts in the contracting phase
Confirm the project components in the project plan
If new requirements come up, document the scope of those elements for pre‐approval
Ensure that the contract precludes the agency/consultant from beginning work on new project components without documented pre‐approval
4. Non‐delivery Supplier fails to deliver the required product
Document terms for non‐delivery in the contract Plan for early warning signals in the project plan in order to secure an alternate supplier in a timely fashion
5. Loss of productivity
Staff member(s) spend an inordinate amount of time and energy on managing the agency/consultant, thereby presenting an opportunity cost from investing in other worthwhile initiatives
Identify one point of contact for managing the agency/consultant relationship in order to have an efficient internal system
Use the project plan to budget staff time appropriately, particularly in scheduling time required for approvals
6. Bait and switch
Agency/Consultant presents key talent but then replaces these resources, usually with less experienced staff
Design the contract to protect against bait and switch and secure access to key talent
Define key relationships with the agency/consultant to clarify the appropriate resource for various tasks
Discuss an appropriate arrangement for ease of access to key talent as required
Risk Mitigation Guide – Agency/Consultant Relationship Management Page 2
©2013 Ingenium Communications Inc.
Risks Description Preventative Actions 7. Mis‐alignment There is a disconnect in the
goals/direction of the agency/consultant and of the client, and/or an erosive conflict or tension in the agency/consultant‐client relationship
Structure the contract and project plan to focus on aligning goals and strategic direction
Identify and address points of conflict early as part of the project planning process
Work to constructively and collaboratively address points of conflict or mis‐alignment through face to face communication
8. Reputational risk
The agency/consultant has a negative impact on the client reputation by making disparaging comments, sharing confidential information or breaching intellectual property rights
Protect corporate reputation as part of the contracting process
Proactively and immediately address any perceived risk to reputation through face to face communication
Escalate concerns about reputational risks and seek appropriate intervention as appropriate
9. Irrelevance The operating circumstance evolves, making the project as it was originally intended irrelevant
Take immediate steps to identify and isolate the risk of irrelevance
Assess potential opportunities for shifting the project focus or design in order to address current/emerging needs
Evoke contract mechanisms to cease work on project if it no longer provides value in its current form
10. Lack of organizational acceptance
The organization or Board does not accept the agency/consultant or their deliverable, thereby jeopardizing the initiative’s ability to offer value
Ensure that key internal partners are brought into the project early, through the project scope, briefing and kick‐off process
Build regular ongoing communication with key internal partners into the project plan to help foster positive alignment throughout the project lifecycle
Consider a project hand‐off to staff or integration with another project as means of helping to enhance internal organizational acceptance