The Big Question
Questions I get from consultants. And my answers.
In my last webinar on January 12, I presented my top 10 learnings from 2021. I got several emails from fellow followers/subscribers, so I decided to summarize them in the following two newsletters, part 1 and part 2. Enjoy the read. Get ready for it.
Here’s part 1, learnings 1 to 5. If you’d like to visit the rich resources from the webinar (recording, slides, etc.), you can find them here.
Learning #1: Authority-Led: the need to build your reputational footprint
I already explained the ‘Authority-Led Approach’ in my previous newsletter with the four quadrants: 1) positioning, 2) visibility, 3) social proof, and 4) network. In summary: without visible authority in your consulting market, you will sit on the second (or third?) row to win new business, and you will - most likely - need to compete on price. And competing on price is not a great place to be in consulting.
In 2021, I saw several of my clients improving their reputation in a specific expertise domain, and they started thriving. A few of them had their best year ever. Amazing how an authority-led approach - done well - can have such a strong commercial impact. Again, read everything about it in my previous newsletter.
Learning #2: FOMO remains the #1 toxic habit in consulting
I’ve been talking a lot about this already. It’s one of the most toxic underlying habits in consulting. See also my Linkedin post on this subject. We live in a world full of restlessness and indecision. In consulting, that often translates into ‘keeping all the options open’ out of Fear Of Missing Out (FOMO). What I’ve seen the past year, more than ever before, in working with consultants is the chasm between:
1. the indecisiveness to focus out of fear (to lose income/revenue) and
2. the deep desire to be recognized as a consultant for specific, compelling expertise.
We seem to struggle to make deep commitments to become those long-haul heroes who courageously invest in particular expertise and stick to it for years. If you can’t commit, that misleading belief that we can be successful by keeping all options open will burn you out in the long run. Deep fulfillment, satisfaction, and recognition come from becoming allergic to our infinite browsing mode. Keeping all options open in consulting is toxic. Solo consultant, boutique consultancy, big consultancy firm? There's no difference.
Learning #3: Laser-sharp Positioning is the foundation for consulting success
Robust positioning as a consultant or consultancy is the genesis of success in consulting (and therefore Quadrant #1, see the quadrants in the previous newsletter).
I cannot repeat it enough, success in consulting comes from a clear-cut positioning strategy:
● Narrow focus, deep expertise (with an obsession for repetition and pattern recognition)
● Specific target audience with specific, prototypical pains
● Client-specific value proposition with a distinct problem-resolution process
Poorly positioned consultancies will always struggle with a multitude of business development goals. They often get under mental pressure to start selling downstream availability (order takers instead of transformational experts) and usually start overservicing the clients at too low a price. Poor positioning is a losing battle in both visibility and trust-building with prospects.
Stop going there. There’s too much saturation in the crowded, competitive consulting market, too many competitors doing the same thing.
Learning #4: Get rid of the inside view, move to the outside/client-view
I learned that consultants and consultancies have a tough time getting rid of their incredible inside view. Almost unanimously, their websites sound like this: we are the best in this, the best in that, we are unique, we are award-winning, we have a collective experience of 80 years, we are innovative, leading, passionate, result-focused, client-centered, and fascinated about teamwork. Amazing.
Who cares what you are fascinated about? Everybody says that. Here’s what you should think and talk about:
● Where's the client in all this?
● And which clients are you focusing on anyway?
● What are the pains of the client you can transform?
● What is the specific transformation you can deliver for those prototypical pains?
● What is your point of view about this prototypical client pain?
● What is the value or impact you will have?
● Where’s your value proposition?
● Where is your specific social proof about your useless we-we-we vanity claims?
Do you really believe you differentiate by telling the world you are passionate (that monster cliche)? Useless, self-centered bragging. Unappealing and pure commodity. Write this down and stick it to the office wall: it's not about what you think you are (inside view), but about what transformational impact for the client you can have (outside view).
Stop with your (inside-driven) self-love. It’s not what it is but what it does.
Learning #5: Specialization is key
It’s one of the biggest debates I am having with consultants, and (driven by FOMO, Ego, Pleasing Syndrome, etc.) they keep challenging me on my specialization mission. I get all kinds of pushback, but I hope that, if you read the previous learnings, you get the idea that - given the fierce competition in the market - you’d better stand out with ‘something’ or you better find a regular job. Really.
Until now, none of the objections I receive have ever been proven: eg.
● the risk that a specialization gets less attractive in the market (well, you need to stay agile, keep finetuning your service offering, be a T-shaped specialist)
● the boredom of doing the same thing (repetition to learn all the patterns is an incredible discovery journey, I’ve been there and never/ever got bored)
● missing out on opportunities (doing less to achieve more, yes that works, seriously)
Here’s what I learned: specialization in consulting is a superpower! Here are 7 wonderful outcomes of commitment to specialization:
1. You will have more time growing the business;
2. You will move to a higher-quality life, instead of running in the downstream treadmill;
3. You will be able to charge premium prices, and you won’t be challenged a lot;
4. You will get recognized as an expert, your infinite energy supply;
5. You will know everything, you can always/anytime answer all the questions; countering strenuous client objections is a walk in the park;
6. Clients will come to you, and you won’t have to sell, persuade, negotiate a lot;
7. Your love for your craft will let you sleep well and protect you against stress or burnout.
While most consultants try to be everything, depth and specialization are superpowers. Variety in consulting is hell.
Next time I will continue with learnings 5 till 10: 6) Sharing expertise to build trust, 7) The evil RFP, 8) Help, we have bad clients, 9) OMG, we don’t have time, and 10) Outbound doesn’t work. See you back in 2 weeks!
