Guerrilla Marketing for Consultants

Another Independence Issue Brewing

According to a recent study by the US Congress, consultants who recommend compensation packages for corporate clients have "pervasive" conflicts of interest that appear to be inflating executive compensation.

The study found that at least 113 of the nation's 250 largest companies rely on compensation consultants who also do other, more lucrative work for them. On the surface, this fact isn't problematic given that multi-service firms often provide an array of services to big organizations.

What troubles some legislators is that, on average, median CEO pay in 2006 was 67 percent higher at companies whose consultants had the most potential for such conflicts, compared with those whose consultants didn't have such conflicts.

The implication is that consultants sweeten their recommended pay packages in an effort to win other work from their clients. It may be easy for some people to believe that consulting firms try to line their own pockets by stuffing their clients' wallets, but it's probably time to take a deep breath and fully explore the issue--and the study's methodology and results.

Maybe the executive pay that some compensation consultants recommend is in the stratosphere. But as soon as the market comes to believe that a quid pro quo exists that trades executive compensation for future consulting work, the firms involved could lose some or all of their work with clients.

Most firms won't sell their integrity, or future, even if the price runs into the millions. Still, the issue has grabbed the attention of legislators, so stay tuned.

The last time we heard this type of concern, the US Congress passed the Sarbanes-Oxley Act.

US Airlines Performance--Are We There Yet?

It's always frustrating to hang around an airport waiting for a delayed flight.

When we're lucky, pilots find some way, whether it's using a different route or taking advantage of favorable winds, to travel a little faster than originally planned. After all, waiting to depart is a drag, but we tend to care more about when we get there.

How often do the largest airlines actually arrive on time? According to the US Government, the major airlines get their planes to the arrival gate on schedule about 75 percent of the time. When they miss, expect about an hour delay.

It's disturbing that the worst performer, American Airlines, logged the most revenue passenger miles of the top carriers. Over the past several years, American's executives have watched the airline's on-time arrival percentage fall and the average flight delay rise.

Southwest Airlines bucks the trend by keeping its on-time arrival performance steady and boasting the lowest average flight delay. I wonder what client would knowingly hire a consultant with an on-time project completion rate like some of these:

	% of On-Time Arrival	Avg. Flight Delay	Market Ranking
American	69%	61 Mins.	1
United	72%	59 Mins.	3
Continental	75%	60 Mins.	5
Delta	78%	50 Mins.	4
Southwest	81%	47 Mins.	2

Source: US Department of Transportation

You Should See It Coming

Some memories fade with time, but a project that goes wrong can haunt you. We tend to relive profitless sinkholes, kicking ourselves anew each time.

Even though consultants learn quickly from debacles, in many cases, it's possible to sidestep such headaches entirely by heeding the clues clients give us.

In this month's issue of The Guerrilla Consultant, we discuss those clues and why it's sometimes better to pack up and walk away from a project rather than pursue it at all costs.

Read the article

How to Influence Change

One of toughest challenges we face is influencing change in a client’s organization. Most change initiatives take longer than planned, bust the original budget, and fail to achieve the desired results. This month in Management Consulting News, our guest, Al Switzler, tells us about a better way to influence change.

Switzler, co-author of the bestselling books Crucial Conversations and Crucial Confrontations, helped change how we communicate at work and at home. In the new book, Influencer: The Power to Change Anything, Switzler and his fellow authors offer a research-based model for influencing personal and organizational change.

Read our interview with Al Switzler.

In his column, “Flying Solo,” Alan Weiss emphasizes the importance of telling a client what you’ll do, rather than focusing on how you will do it.

We’re also featuring articles on the must-haves for every e-newsletter, the secrets of large firm selling, and whether or not to bet that your airplane will land on time. 

Read this month’s issue of Management Consulting News.