There is an old joke: A consultant is someone who borrows your watch to tell you the time, and then keeps the watch.
Most consulting engagements are a transfer of wealth, not a transfer of value. The reason is rarely the consultant’s incompetence. It is the client’s lack of Protocol.
If you hire a mercenary without a clear mission, do not be surprised when they loot the village.
The Trap: “Help Us” Never hire a consultant to “help.” “Help” is vague. “Help” is a blank check. “Help” has no deadline.
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Bad: “Help us improve our marketing.”
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Good: “Audit our CAC/LTV ratio and build a playbook to reduce CAC by 20% in 90 days.”
The 3 Rules of Engagement
1. The “Specific Output” Clause Before you sign the contract, define the physical deliverable. Is it a PDF? A piece of code? A workshop? A spreadsheet model? If you cannot visualize the artifact, you are not buying a solution; you are renting a friend.
2. The Transfer of Capability The goal of a consultant is to make themselves obsolete. If they leave and the magic stops, the engagement failed.
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Requirement: Every engagement must include a “Training Phase” where your internal team learns to drive the car.
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The Test: Can your junior employee run the system the day after the consultant leaves?
3. The “Skin in the Game” Filter Be wary of advice that carries no risk for the giver. If they recommend a strategy that destroys your company, do they still get paid? Whenever possible, tie a portion of the fee to Success Metrics (Outcomes), not just Time Spent (Inputs).
#DhandheKaFunda: Rent their brain to build your engine. Never rent their engine to drive your car.