Consulting – very much like politics – can sometimes make some people do things their mothers would never have tollerated. The following is my opinion on ethical consulting crystalized after an encounter with a former subordinate now an independent consultant.
A while back I was asked by another consultant to provide some feedback on a client request. I did some fairly intensive research to develop duly diligent feedback to his query. The feedback I provided suggested that it was not wise for the client to proceed down the intended path. I did not expect the reply I received which was “who am I not to take their money if they are willing to give it to me?” After recovering from my momentary shock at the callousness of the comment, I made what I thought was a diplomatic reply: “Well, yes, I suppose if you reveal this research and they then still believe that their intended path is better, it would not be unethical to assist them in moving forward.”
The other consultant persisted saying that they were “helping the client to realize their dreams” and that “they had plenty of money to spend.” I gracefully exited the conversation before I said something I would regret while hoping that my comments would have some moderating effect before the next phase of client work. The conversation did cause me to think for several more hours about my past experiences in client revenue generation.
My last two employers before going independent espoused the goal of being “trusted advisors” to our clients. For the most part, and certainly for my part, I believe we met this goal. Being a trusted advisor means that the client can trust that their goals will come ahead of my revenue needs. In a mutually symbiotic relationship, I become the go-to source for add-on business and can count on references for new business with other clients. The client trusts me to do the right thing and in return comes back again and again for more solutions. Yes, there are clients – usually driven by purchasing departments – who do not recognize mutual symbiosis. My condolences if you have one of those but hey at least the salesperson got their commission before they turned it over to you!
Going back to my former colleague, “who am I not to take…” is an example of parasitic symbiosis. Take what you can while you can and then move on to the next host when there is nothing more to take. How similar that sounds to “sell what you can any way you can while you can because we have to make the quarter!” I am not saying we shouldn’t have quotas – they are necessary for a variety of reasons. I will however save my opinion of how quotas are sometimes set (hint: parasitically) for another time. What this behavior does drive is broken client trust, non-deliverable contracts, financially stressed deals, and unsustainable environments.
Notice above that I told my colleague that it would not be unethical to take the money of a suitably informed client. Just because something is ethical does not mean it is moral. Ethics relate to moral rules while morality relates to a moral compass – the ability to end up in the right place without rules to guide you there. Would the delivery of an unsustainable product just because the customer insisted be moral? We certainly all know a client has never blamed a consultant for delivering exactly what they asked for. Instead they have their attorneys levy the blame via a demand or breach letter! Usually such letters contain phrases like “Supplier knew or should have known…” and indeed usually you did or should have.
Try thinking about client needs and goals before quota and commission. Make quota by seeking ways to provide trusted advice that leads to predictable results. Give your clients the best advice possible. Provide full disclosure even when it means you might not make a sale. Often the client will compare the whole truth you are presenting to the expedient truth a competitor might be selling and make the right choice.
I never paid any attention to commission until December 15 each year. I just did what was right for my clients as often and as much as I could. I never had reason to lose sleep over what I said, delivered, or billed to a client. 80% of the time it resulted in over-achievement on bonus which averaged out to 98% achievement over 10 years. That’s 98% of F3, and well over 110% of RMDG – both of which bear explaining.
F3 is Finance Fantasy Forecasts – what we have to do to reconcile to the fantasies presented to the stakeholders. These are set even higher in years when “performance-based” attrition is desired especially in the aggregate to the executive level. F3 is always a plug. F3 is never fact-based and can not be reconciled, do not try. Expect a stretch goal on top of F3 in June or July especially if your personal run rate appears likely to meet or exceed F3. Cynical? No, reliably cyclical.
RMDG: Realistic Market-Driven Goals – what the market can sustain as evidenced by past performance, projected growth, realistic expectations, and objective plans to take competition share. It is unrealistic to expect RMDG.
Your goal is to survive F3 without compromising ethical and moral business practice. If you are unable to accomplish this, you must reconcile yourself to what you will have to become, or seek mutual symbiosis elsewhere.
When truthful push comes down to expedient shove, resist the urge to shove back. Push the truth. Deals that are not built on truth and trust – even if it is hard truth – invariably end up in trouble or worse. Better to let your competitor choke on a few of those than take the money – and inevitably suffer the consequences – just because you can…in my opinion, anyway.
