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What is Management Consulting?

The world of management consulting at times appears to be clouded with uncertainty and confusion; it can require the patience of Job and the Wisdom of Solomon, the serenity of Gandhi and the confidence of Churchill, all at the same time. It can also be the most rewarding experience outside of family that a person can have. Seeing the impact a successful project implementation can have on an organization, even beyond the monetary rewards, makes the headaches and frustrations all worth it. The experience of being part of something that not only impacts your own life but the lives of many others allows one to transcend the drudgeries of the everyday work week, and turn it into learning and life experiences that can rarely be felt in the corporate employee world. This makes it sound akin to a spiritual experience, and in some ways it can be, if the situation is right. But, it is more about being able to participate in a partnership, between the consultant and the client that enhances the professional life of both, and may, maybe in rare cases, promote the well being of society.

Management consulting is about the collaboration of two entities, the consultant and the client. I have found, in the last 25 years of IT consulting, that my role is not the ‘all knowing, ever seeing’ oracle, but that of a partner in the development of successful organizations. In many cases, I may know going into an engagement what the solution for a client is. But my job is not to simply offer my perfect wisdom, collect a check, and run. My job is to listen to the client first and foremost; to let them describe their concerns and issues. Many times, the concept or idea, that presents the ultimate solution will be right in front of the client, they just need to stand back and recognize it. The experiences we have gained through various prior engagements can be called on to help the client see that vision. As Gable (1996) suggests, “client learning or improved client understanding is an important object or result of many consultancies” (p. 1177). Our role as expressed by McLarty and Robinson (1998) is to “provide substantial expertise to the client and while so doing to contribute added value” (para. 11).

This role has changed somewhat over the years. Twenty years ago clients relied on us to tell them what their IT needs were, what they should buy, and how to implement it. Now they come to us telling us what their IT needs are. Our job is to filter through their objectives and determine if the direction they feel they want to go will actually get them to their destination. We are, many times, called on to merely act as a ‘sounding board’ for ideas that the client has. Our experience, understanding, and expertise allow us to assist the client in working through the myriad possibilities that they are presented with.

A number of years ago we had only limited experiences in working with management consultants. At that time IBM was trying to develop business partners to sell their AS/400 systems. They had each participating partner go through a series of training exercises put on by a consultant from one of the ‘Big 8’ accounting firms. This was really just marketing training, that none of us enjoyed. However, what we did learn from that experience was the importance of having a vision of what our role as consultants was to our clients. That vision has stuck with us ever since.

References:

Gable, G. G. (1996). "A Multidimensional Model of Client Success When Engaging External Consultants." Management Science 42(8): 1175-1198.

McLarty, R. and T. Robinson (1998). "The practice of consultancy and a professional development strategy." Leadership & Organization Development Journal 19(5): 256-63.

Are all information products created equal?

This is going to be a brief entry today because I am not quite sure I am completely ready to make a full statement about this topic...

But, I have been doing a lot of research lately on Information Marketing. Unfortunately, a lot of what I am finding is just plain ’hooey’. You get the same email from 15 different people all trying to get you to buy the latest and greatest product promising to make you an instant millionaire. Everyone is selling the same, or similar, product.

Every once in awhile though a product does come around that really looks like it has the potential to be useful; not just to make money, but to actually help in creating a quality product itself. One such product I came across is a series of templates to help those who are creating e-books.

There is a wide variety of quality out there when you start looking at e-books. Some authors have gone to quite a bit of work to make their product easy to read and pleasant to look at. While others have thrown together a bunch of text that they most likely ‘borrowed’ from some other source and claim as their own, and mismatched fonts and formatting to quickly get a product out the door.

EZ eBook Templates V5 seems to be designed to assist those who are really interested in creating a quality product. It provides a wide variety of backgrounds and formatting aides to help authors create a sophisticated product that will be a pleasant ‘read’ for those who purchase their e-books.

I am going to continue evaluating this product and will let you know what I come up with.

Will rising fuel costs spur an increase in telecommuting?

Will rising fuel costs spur an increase in telecommuting?

The dream of working from home in your pajamas has probably been on the back of almost every ‘white collar’ worker at some point in their career. Not having to hassle with spending an hour or more in the car every day just to get to and from the office has always sounded pretty good. But that dream has never turned into a reality for most people. Even as recently as 2006 some suggested that there was more myth than reality to the idea of telecommuting and flexible work schedules (Gragg, 2006).

However, as gas prices have risen past the $4 per gallon mark, a renewed interest, and maybe even, sense of urgency, has again brought telecommuting to the forefront of employees’ minds.

If your total commute to work is 100 miles (50 miles each way) and you get 20 miles per gallon in your vehicle, at just $4.00/per gallon, it is costing you $20.00 per day, just to get to and from work. If you work 50 weeks per year, not counting holidays, it is costing you roughly $1000 per year to drive to and from your office.

Assuming the above costs and car mileage you could save $200 per year by working from home just one day per week. These figures also do not include maintenance and insurance costs which could be impacted by the amount of mileage you put on your vehicle.

Not only is there a cost savings, but the impact on the environment could be just as, or even more, important. Using our commute example above; you are contributing over 5300 pounds of Carbon dioxide per year to the environment if your commute is 100 miles per day. Reducing that by even 1 day per week will reduce your environmental footprint by almost 1000 pounds per year.

Individually these savings may not appear that great. But if you multiply this by the number of potential telecommuters, the results are staggering. A recent report from Telework Exchange has suggested that it may be possible to save over 9 billion gallons of gas and $32 billion per year, by merely working from home 2 days per week.

Whether or not this spurs an increase in telecommuting remains to be seen. There are so many other factors involved that it is hard to predict. Employers must buy into the idea of allowing their employees the flexibility to work at home. Unfortunately, this may not be the case. Despite evidence that there is an increase in productivity from telecommuting workers, a recent report from CIO Insight suggests that over 50% of companies discourage full-time telecommuting as opposed to encouraging it, while only 34% even encourage part time telecommuting. They do however suggest that this is an improvement over just three years ago.

There is much work still needed to increase the number of telecommuters. Rising fuel costs may just be the impetus that is finally needed.

Is an Online Education Right For You? Choosing an Online Education, Part 1

Whether you know it or not, you have spent your whole life learning. You just may not have a fancy printed certificate hanging on your wall to show for it. Is now the time to make that step to get your degree? Taking that step in the past was a scary, and for many, impossible, feat. You don't have the time to attend classes at night, you cannot afford the tuition and travel expenses, or maybe you are uncomfortable in a classroom setting. With the advent of the internet, learning online may be the key to achieving your goals and overcoming those challenges.

For many adults, continuing, or even finishing, their education seems like an impossible task. The reasons will be as varied as the individuals. Some may include:

• There is just not enough time in the day to deal with the challenges at home and work, and then attend classes at night, or on weekends.
• For many it may be a fear associated with failing in the classroom. I think we can all dig bad memories out of the abyss of our mind about classroom experiences that may still give us nightmares.
• For some it may just be impossible to physically to get to a school. You may live in the backwoods of Alaska, or on some remote island in the middle of the Pacific Ocean, where there is not a school available.
• The list could go on for ever...

This does not have to be the case anymore.

With the advent of the internet, a new realm of possibility has been opened for adult education. You can now sit in the comfort of your home and continue that education that was interrupted when the trials of life got in the way. Proximity to a college is no longer a barrier to obtaining a college education. Time and distance should no longer be issues in the never ending quest to improve ourselves.

However, in order to take advantage of this opportunity, you need to decide if this really is the right thing for you to do. Answers to the following five questions will help you make that decision that could propel you into the world of the electronic university:

• What do you hope to accomplish?
  
• You must have a specific goal in mind. It does not necessarily have to be to achieve a degree however. You may be doing it simply for the joy of learning something new. But the idea is to have a specific purpose. e.g. “I want to learn to program in Java?”, “I want to learn about the industrial revolution”, “I want to learn about_____ (you fill in the blanks)”.
• Are you a self starter?
  
• Making the commitment to an online learning program is a major step in your life. If your usual way of doing things is to wait until someone gives you a specific assignment and then fulfilling it to the satisfaction of the person who gave it to you, then an online learning environment may not be the thing for you. You will need to allocate time and push yourself beyond what you may be used to.
• Are you organized?
  
• This may seem like an odd requirement, but being organized is a necessity. You cannot be continually be searching for where you placed that assignment you just printed out last week, or where that article is that your instructor requested you to read, etc… You must develop a system for organizing your time, assignments, and reading material.
• Are you committed to achieving your goals?
  
• If this is just a whim, forget it. If you are not committed to achieving your goals you will not succeed. You must develop a firm commitment to seeing this through to the end. Life may unexpectedly throw you some curves that will delay your completion; but you must keep your ultimate goal in sight.
• Do you have the support of those closest to you?
  
• Many people think that ‘attending’ an online class is easier than a traditional classroom environment. This is not the case. You may be able to sit at home in your pajamas and ‘go’ to class, but you will also have with it the attendant interruptions and distractions. If you are in a relationship, or have children at home, they must know when it is time to leave you alone and when you need their support. There will be many times when you have to make choices between attending events involving family members, or sitting down at the computer and doing the research for the paper you have due next weekend. Not only do you need to be committed to the goals you have set, but so do those closest to you.

On online education may or may not be the right thing for you, only you can decide that. The questions listed above will hopefully help you in making that decision.

In the next installment of this series we will look at the factors you need to consider once you have made your decision.

10 Things You Should Know Before You Bid On a Business Product from an Online Auction

Recently I spoke with someone who had purchased a car through an online auction house. Unfortunately they found out too late that the car was not what it was supposed to be. They attempted to cancel the check, they wrote, before it was actually sent from the bank, but it was too late.

Buying something on an auction site can be a thrilling adventure. You may have the opportunity to buy something at a price far below the normal cost of that item. You may also find items that are not available through normal stores and retailers. You also need to be very careful about what you are buying, there many stories about items not being delivered, and the wrong product or a defective product being shipped. I found a list recently of tips that will help make your experience a little safer. I have added some items to it and also expanded on some of the issues mentioned.

Below are 10 things that will help you have a more satisfying experience when buying through an internet auction site:

1. Know the value of the product before you bid. If the product is brand new, check to see what price retailers are charging for it. If the product is used or reconditioned, you will want to pay way less than the retail value. If the product is considered an antique or classic product you may want to check with professional auction services to see what their value for the product is.

2. If the product's description or picture isn't detailed enough for you, contact the merchant to get more information before you bid. You don't want to take a chance to waste your hard earned money.

3. Know the highest price you will bid for the product and stick with it. Don't get caught up in a bidding war; you may end up paying more than the product's worth. Don't forget to add in the shipping price with your bid. This is no different than going to buy a car on a car lot, a new couch, or even a new house - know what your financial limits are and stick to them.

4. Visit a few online auctions before bidding because some merchants auction the same product in many auctions. You usually can purchase the product for a lower price in a unpopular auction because there are less bidders.

5. Know the time the auction begins and ends. You also want to know how long it will take to ship. If you need the product by a certain date, you'll want to estimate the time it will take to receive it. You may even consider entering an appointment into whatever calendar program you use to have it remind you of when the auction is due to end.

6. Know the payment options the merchant accepts before you bid on their product. If they only accept checks or money orders, it may take even longer to get the product because the payment has to clear. If they accept credit cards make sure they have a secure server.

7. Know if the merchant offers a warranty or money back guarantee or before bidding on a product. You don't want to get stuck with a product that does not work or you're not satisfied with.

8. Online auctions will, sometimes, allow you to check the merchant’s history with their auction. Check to see if people have complained about their products or business practices before you decide to bid. Pay close attention to buyer ratings. Sellers who have low ratings may be unreliable and you may not get the great deal you are expecting.

9. It is important to place a bid early in the auction to show other bidders you are interested in the product. If someone does out bid you, don't be afraid to out bid them. Remember not to go over your maximum bid price.

10. Another reason to know when the auction ends; you can place a last minute bid. The other bidders may not be keeping track of when the auction ends or may not have the time to bid again.

Are you Prepared?

I hope you don’t think this is ‘beating a dead horse’, but I can’t help but draw your attention to the news coming out of the Southern California area this past week. Over 250,000 people had to be evacuated from the area due to wildfires fueled by a season (or more) of dry weather and driven by over 75 mph winds...

Last issue we talked about problems that occurred in a small Idaho town due to wildfires this summer. Ultimately little property damage occurred and people were able to return to their homes fairly soon. Now we have a much larger example, with more devastating results, due to fires that have wreaked havoc in Southern California. This time, billions of dollars in property damage and human, as well as animal, lives have been lost. For those who survive, with ‘only’ the loss of homes and businesses, recovering from this tragedy will take years. Some may never completely return to a so called ‘normal’ life.

From a business information technology perspective this again points out the need to prepare to run your business from outside of your primary location. It points out the need to have offsite backup of important documents, programs, and data that can be accessed when needed. It points out the importance of having alternative sources of supplies, and even employee resources. We could add to this list forever, but the point is that you need to take a long hard look at all of the areas where you are potentially vulnerable.

It is also not just your traditional office/business that needs to look at this issue. How many of the homes lost were used as a base for a home business? I don’t think we can estimate and will most likely never know. It may be even more important for those who are running a business out of their home to anticipate circumstances that will cause them to rapidly move their business to another location. Being able to move computer equipment, paper files of customer information, internet services, etc… all require careful and diligent planning. Two items to seriously look into are: Backup generators for temporary power needs and External Hard Drives to backup your data.

No amount of planning can prevent a disaster of the magnitude presented in and around San Diego. If it is going to happen it will happen. But, you can improve your odds of surviving, and being able to, quickly, return to some form of normalcy by being prepared.

If it ain't broke you may need to fix it

Normally, the old adage "If it ain't broke, don't fix it" is a well heeded thought. Unfortunately that is not always the case when it comes to technology.

Recently a client brought to us a computer that was extremely old. This computer had been working for many years and was used to control equipment used in a manufacturing environment. There had been no need to monitor how this equipment was functioning, or the software it was running, because it 'simply worked'.

The problem that now surfaced was that this particular computer was failing. Simple enough to solve; or at least that is what we thought. The problem, unkown to anyone, was that the software running on this computer required a very specific processor speed and would not run on newer computers.

So, now we are scrambling around trying to find computers that were made 10 years ago, but still function: Not an easy task.

The lesson we have learned from this is that all computers and applications become obsolete at some point in time. With the every changing world of computers, no software will run forever, and no computer will function likewise.

All organizations need to periodically review their software applications and hardware to determine where they stand in relation to the long term goals of the organization. Do they need upgraded? Can they even be upgraded? Or, do they need to be replaced with new software and hardware?

How old is your oldest computer? How long have you been using your current software applications?

These are questions you need to ask yourself, before it becomes to late.

Can a thumb drive hurt your business

Think about this for a minute...

Someone can walk up to any computer in your office, insert a thumb drive (memory stick, flash drive, etc...), reboot that computer and potentially access everything on your system.

Now, this is a major over simplification of the problem. But nonetheless, it is possible. Mandriva, several months ago, brought forth just such a device that can be inserted into any computer that has been setup to allow a boot to take place from a portable USB device. Once their operating system has booted up on that computer, any device attached to the computer is susceptible to access. Is there secure information on its hard drive? Is it a laptop that holds confidential client information? Or, could it even hold the names of covert operatives working for the CIA?

If sensitive information resides on the hard drives of computers within your organization you must take steps to secure it. A very basic way to prevent this particular danger is to password protect access to the BIOS on your computers and then disable the ability of your computers to boot from portable devices.

These simple steps will keep unintentional access to your systems from occurring and hopefully make it easier to secure sensitive information.

Is your business prepared for a disaster?

A couple of years ago the world watched as New Orleans almost became the ‘Lost City of Atlantis’. Hurricane Katrina almost completely destroyed this historic city on the Mississippi. Homes, lives, and businesses were lost in the matter of just a few days. Many of those businesses had enough warning to enable them to move vital information to secure spots. Unfortunately, many more chose to ‘stick it out’ in hopes that the storm and surge would pass by them.

Most people who live along coastal waterways know there is the possibility that they will be subject to some kind of natural disaster. Businesses put plans in effect that will help them relocate in case of emergencies. But what would you do if your small community seems impervious to natural disasters? We live in a relatively safe place here in Idaho. We do not get hurricanes; we rarely have tornados, and when we do the most damage it usually does is tip over somebody’s tractor or throws their swing set into a tree; we can have some harsh winters but not anything that can’t be dealt with. But, recently an event happened that should make every small town that sits in the mountains take notice.

A fire started in the mountains near Sun Valley, Idaho. It quickly grew to many thousands of acres, threatening the towns of Ketchum, Sun Valley, and Elkhorn. They, or at least parts of them, were evacuated for several days. Did these towns have a week or two notice, like they did with hurricane Katrina? No, they had only a few hours notice for the citizens of those communities to grab whatever belongings they could carry and evacuate. Fortunately the fire was contained and few reports of lost property were reported.

What would you do in your business if this happened? How would you safeguard your property? How would you transfer vital documents and supplies to safe areas? What would happen to your information technology infrastructures? How would you conduct business if you were forced to leave your place of business for an extended time?

These same questions were repeatedly asked on September 11, 2001, the day the World Trade Center towers were attacked and destroyed, by many businesses throughout this land and beyond. These same questions need to be asked today?

Disaster preparedness is not just about stocking food in case you can’t get to the store. For businesses it is about preparing to function in extreme circumstances, preparing to secure key components of their business from possible damage, and preparing to not only survive, but prosper when all around them seems to be in chaos.

How have you prepared your business in the event of an emergency?

Let us know…

Innovation in the Family Business

A danger in any business is stagnation. As our business becomes more successful, we become more comfortable with our surroundings and less motivated to change from existing practices. Family businesses are no exception: Starting out on an entrepreneurial high, family businesses “are widely recognized as a major source of technological innovation and economic progress” (Zahra, 2005, p. 23). But somewhere in the process we lose the drive, the desire to continually bring innovative practices and products to our organization. Owners may become more concerned about the risk of losing their business, than the prospect of growing it into a larger and more successful entity. In sports this can be compared to a coach who becomes more conservative in a game that the team is winning and instead of trying to win the game, they try and keep from losing it, usually ending up with either a very narrow win, or a loss. How can we continue to promote innovation into the lifeblood of a family business, even as the owner is aging and may be facing the prospect of turning the business over to a younger generation?

One key to this is vision: What is the owner’s vision for the future of the organization? Does he, or she, want this to be a legacy to their foresight, and entrepreneurial abilities that will last for generations? Do they want to sell the business for the best price and leave an inheritance not tied to the business for their children and grand children? Do they want the business to be buried with them? Each of these questions can spur multiple answers and will ultimately decide the current and future direction that the business takes, but the answer to the first question is really the one that will determine the future success or failure of an organization. An owner, who desires to pass their legacy on to a succeeding generation, and give them the best chance of success, will plan for the future; will prepare that company to be a success in their chosen field, and will consider all aspects of what it takes to make that company successful.

Developing a culture of innovation then becomes a key component in preparing that organization for the future. That is a lot easier said than done however, and each organization will have to find what works best for them. One factor particular to family businesses though is identifying a successor and grooming them early to take over the organization. You cannot leave this decision to the last minute. The transition from one leader to the next is difficult in any organization, but when you throw the dynamics of the family into the mix, it becomes even more precarious. Many organizations fail because the new manager (son or daughter) was not prepared for the intricacies of leadership, did not understand the business, or was simply the wrong choice for the job.

We would like to hear from other organizations on how they have handled this transition and maintained a environment of innovation and excitement.

References:

Zahra, S. A. (2005). Entrepreneurial Risk Taking in Family Firms. Family Business Review, 18(1), 23-40.

Hello World!

We have decided to consolidate our various blogs into one. This will be an all encompassing blog to help small and family businesses with the management and information technology needs. Topics will range from leadership transition in family businesses through virtual organizations and teams.

Family Businesses drive the economies of most countries. This is the first of hopefully many thoughts about helping Family Businesses succeed into multiple generations. Unfortunately less than half go beyond the first generation, and by the 4th generation only 3% remain. Our goal is to help organizations that have reached the point, or will someday, where they are considering how to transition from one generation to the next, or even if they want to. We ask all who have ideas to let us know what they are. Together we can build organizations that will last and prosper for generations to come.