How to turn down one hundred thousand dollars and why. And other things consultants should say ‘No’ to.

The opportunity was – to say –castle-building. We had struck gold without digging, diving, or deranging anyone to get the deal. In fact, the opportunity landed straight in our lap from a long-standing client. One hundred eighty thousand dollars…

Aside from the compensation, we’re excited about big challenges -anything related to documentation and writing so we prepared to put together a marvelous proposal. Mind you, the first time we had informed the client that we did not have sufficient time to put together a viable proposal so seeing it re-advertised and sent specifically to us, seemed like a beautiful second lifeline.

Although all stories deserve a good ending, this is one of those series where the guy doesn’t get the good girl and there is no sunset to ride away into. After two review and interview weeks of critically interrogating the terms of reference, we realised that we had to say ‘No’, very decisively. It was clear the budget they had put aside was a hoax and the multi-year commitment they were asking for would lock us in to their work to the detriment of other clients. Our refusal email was a short one-liner citing low budgets and insufficient technical capacity. Be real, don't lie; clients respect you more when you don't waste their time.

Why are some deals bad deals even though they seem profitable?

• Re-advertised opportunities, (and this one was one of those) have the potential of hoarding landmines either because the terms are ambiguous, impossible, or have insufficient budgets. In many cases, the client is not clear on what they want or why which means pleasing them is going to be impossibly cumbersome. There is always a hidden reason why the ‘good opportunity’ isn’t being scooped up. (Proceed with caution, conduct sufficient due diligence.)
• When the maths doesn’t add up. A million dollars can seem like a lot of money until you’re told it has to cover all your expenses for the next 100 years. For this opportunity, after breaking down the costs to the last detail, we realized that the client budget was never going to cover even a fraction of the most important activities. In fact, only the most unscrupulous consultants would dare to try and deliver anything with that budget. Sometimes, big figures are used to bait consultants; always sit with the team and test the numbers. (If the budget is too low, don’t go near it, even if it sounds like a million dollars –it will compromise the quality of your work and ruin your good name.)
• Too many cooks stirring the broth. They say, ‘The more the merrier', but forget to add, ‘The greater the entanglement’. When there are many decision-makers and reporting lines, be prepared for conflicting expectations. It doesn’t matter what the terms of reference say –these can be interpreted variously by different stakeholders based on their experience. (If you are going to be reporting to seven project heads ensure that the deliverables are cast in stone and described to the last detail to manage expectations.) We have had projects where we submitted a best practices publication only to have approvals delayed by six months because five different organisations had to review it and come to a consensus. ?
• Insufficient internal capacity or lack of trustworthy external experts. Some consultancies look good on paper; however, once you sip your coffee and begin to analyse the terms of reference clearly, you may quickly become aware that you are way in over your head and lack the experience to deliver well. (Although there is a first time for every gold medal, if you do decide to proceed into uncharted territory by sourcing for external team members, have a warm-up discussion. This will help you assess whether the external expert will be amenable to work with when things get really hot.) A colleague recently described how she partnered with a renowned external consultant who then became an unreachable and untouchable nightmare, so much that she had to forfeit her part of the payment to mend fences with the client. You don’t want to be left alone in a sinking boat when you don’t know how to swim. ??

Other things consultants should say ‘No’ to:

• Under-table dealings. We have a no-corruption policy written in our quotations. This was introduced after a finance manager requested us to give them ‘something’ to expedite our payment for work completed. Another manager asked us to inflate the cost of our communication training so they could scoop off the extra – we asked them to put that in writing and we never heard from them again. Once word travels that you’re the consultant who deals in shades of grey, unafraid to grease palms, your professional credibility will be compromised and eventually relegate you to the bad deals that no one wants to touch. Once you start ‘greasing’ you have to keep the oil running –that is until the auditors come knocking –as they always, eventually do.
• Express, low-paying jobs. When you’re starting out as a consultant, low pay may be your fodder for a while as you get your footing. However, once you get a hang of the ropes and understand the actual timeframes it takes to get a job done, avoid clients who always have ridiculous deadlines unless they are willing to pay for express delivery. Low-cost isn’t a strategy (because it isn’t sustainable) as working for less than a job is worth will demotivate you unconsciously and tone down your best efforts. Cheap is cheap and it will show off its true colours in your deliverables.
• Jobs you cannot control or manage. ‘You’ being the Principal, should have razor-sharp clarity on the tasks involved in every consultancy activity. If you cannot step in at any part of the activity process, or source replacement personnel, do not proceed. Use the Buffet rule of investing –only invest in stock you understand. Only invest your time, skills and resources in consultancies where you clearly understand what is involved, not where you have to wait for an expert to handhold you and give you a 101.
• Put a ring on it. Regardless of the camaraderie you have with a client, always sign a contract before proceeding. This applies to even repeat clients, client-friends/relatives, and any other iteration. Money not only talks, it also changes dynamics -when peoples' jobs are at stake they will readily throw you under the bus. Ensure that the responsibilities and expectations of each party are clearly spelled out and signed. I cannot enumerate the number of times we have had assignments close to collapsing with unrealistic client demands until the contract is cited and then sanity returns. I have to emphasize (again), do not start work for anyone without a signed agreement/contract however short and simple or even by email. Once upon a time, a client was 'unable' to pay us because there was only one signature on the contract whereas their organisation policy required two signatures from the Directors. If the work is urgent, the client should ensure to urgently work on the paperwork before sweettalking you to start and backdating paperwork.

Red flags, landmines are all over the place when it comes to consultancy; when you do land in one, nurse your wounds, carry the lesson away and document it. In the meantime, attempt great things wisely. What other 'no nos' should consultants look out for?