Technology consulting keys to success

By Kenneth M. McCall, MBA, MCP
Boomer Consulting

It has been pointed out often, in many forums, that the CPA is the lucky beneficiary of the "most trusted advisor" label in the eyes of their clients. This makes sense, of course, since in the course of tax and compliance work the CPA sees and understands the most intimate details of the client's business records. This trust, and the insight gained by the detailed understanding of the client's business, leaves the CPA uniquely positioned to be a provider of selected technology consulting services to these same clients.

Boomer Consulting, Inc., has been in the business of providing technology consulting services in one form or another for almost 20 years. In that time, we have identified a few keys to success, and at least one way to almost guarantee failure. Let's take a quick look at these indicators and see how knowing them can help you become more profitable.

The pitfall

First, the pitfall and the warning! When firms begin to move towards technology consulting as an additional client service, there is a tendency to try to do too much, to be too broad based or insufficiently focused. This lack of focus tends to stretch the available people too thin, to draw the consultant into areas where he or she lacks the required expertise and to ultimately disappoint client expectations. Lack of focus can lead to your downfall as a consultant almost before you get started. While there is no way to guarantee success, trying to be "All things to all people" is an almost certain guarantee of failure!

Keys to success

So then, the first key to success is to properly focus your efforts. We have seen CPA consultants become successful at a variety of skills: accounting software configuration, networking support, Internet development, or strategic planning. Which one you choose will depend upon your skills and your interests, or at least the skills available to you, so the choice of "which" is less important than the decision to focus on only one or a limited few. Most successful consultants will begin by focusing on no more than about three distinct services to build their expertise and client loyalty. As you choose your focus, consider the relative profit potential of the options available and decide whether you can compete better in a "commodity" arena like networking, or in a value added environment such as strategic planning. The second key to success is to standardize your procedures and your engagement management. One of the advantages of focusing your attentions is the ability to get more efficient at each engagement you attempt. Forms, checklists, and other procedures can be standardized and refined as you gain experience so that each engagement becomes more streamlined, and therefore more profitable than the ones before it. Make sure your standardization efforts include the administrative side of things as well, and develop good engagement letters and change orders to support your work. This will allow you to shape client expectations so that you and the client share the same clear vision of what it is you are expected to accomplish and how to recognize when you are "done." Open-ended engagements tend to be bad engagements for both you and the client left unhappy at the end.

Pricing of your work is another critical variable. Pricing structures will vary based upon the work in which you've chosen to specialize, but there are many opportunities to apply a "value pricing" strategy as opposed to the traditional hourly rate billing. A detailed discussion of value pricing strategies is beyond the scope of this article, but a great book on the topic is The Professional's Guide to Value Pricing by Ronald J. Baker. I strongly urge you to read and digest this book before you begin a consulting practice.

Perhaps the final key to success is to leverage your experience with others who are engaged in similar pursuits. Accounting firms for years have benefited by membership in various state, national, and international associations that bring together firms with similar challenges and objectives. The same is true for those firms who wish to pursue technology consulting as a practice area.

So, in summary, if you are considering the exciting world of technology consulting remember a few simple keys — focus your efforts, standardize your practices, price wisely, and join a support network. No one, or all, of these things will guarantee your success, but they will give you a strong head start in the right direction. Good luck and good consulting!

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