Making that final investment decision

Even though many organisations are seriously unhappy with their organisational performance there is always a certain level of doubt about making an investment to make it better.

For most organisations investing in a physical piece of equipment seems to be much more palatable - yet investing in expert consultancy or training support at a fraction of the cost is often subjected to more scrutiny. I know the argument that if you have a piece of equipment it has a residual value - but that is the folly of many purchases as it is often extremely difficult to realise the value that second hand equipment have on the books!

I suppose the concern comes from whether or not you are buying quality support and consulting, unlike many commodity items, is not the same irrespective of the price. I will explain this point - you would expect a TV you purchased for £50 to work as much as you would a TV for £5,000 - the picture and features might be different but fundamentally they will both work. In consulting terms the same is not true - you can pay £50 and get a 'non functioning product' - much the same as you can for a £5,000 consulting project!

This does not make it easier to buy consulting, it actually makes it harder! Coming back to the first point I made, it is very difficult to make a decision about consultancy and many, many organisations have been caught out by being sold the 'corporate package' by a well dressed partner only to have the service delivered by a poor quality graduate.

To make the right decisions I would suggest the following five points:

1. Ask who will deliver the project - and meet them to ensure you like them
2. Buy in stages (with get out clauses) so you can terminate if you are not happy
3. Understand exactly the process/methodology they will follow
4. Ask for references - they don't all need to be directly relevant but they do need to 'stack up'
5. Get 1st hand feedback from the people working with the consultants on a regular basis

Of course, you could always go and spend £500,000 on a machine - but I would always say pay £5,000 on consultancy to identify whether you need to actually buy the equipment at all!