Ten Mistakes to Avoid For Successful BI Consulting

Ten Mistakes to Avoid For Successful BI Consulting  By Dave Wells  08/28/07  Foreword  Mistake 1: Unclear Consulting VISTA  Mistake 2: Excessive Dependency  Mistake 3: "Cookie-Cutter" Consulting  Mistake 4: Inadequate Fact Gathering  Mistake 5: Lack of Processes  Mistake 6: Insufficient Knowledge Resources  Mistake 7: Mismatch of Skills  Mistake 8: Lack of Tools  Mistake 9: Lack of Results  Mistake 10: Unshared Knowledge  About the AuthorForewordAccording to the 2006 TDWI BI Benchmark Report, a typical business intelligence (BI) team is a combination of internal staff and third-party expertise in the form of consultants, contractors, and outsourcing. The level of third-party staffing ranges from 9 percent in small companies to more than 30 percent in large corporations. Consultants are the most influential among third-party staffing. Unlike contractors and outsourced service providers - staff augmentation solutions for design, construction, and deployment - consultants provide guidance and advice with long-term and strategic implications. Effective consultants don’t bring answers, but help their clients to find answers. The right questions, not the right answers, are frequently the most meaningful of consultant contributions. The strategic nature of consulting services leads to adviceand guidance with far-reaching effects on BI architectureand on the business value that is realized from a BI program.The level of impact, combined with the frequency with whichconsultants are used, places quality of consulting servicesamong the critical success factors for a BI program. This TenMistakes to Avoid offers perspectives to be heeded by bothproviders and consumers of BI consulting.Mistake 1: Unclear Consulting VISTAVISTA is an acronym for value, integrity, service, trust, and accountability. These qualities are essential to extend beyond a simple provider-consumer relationship and to establish shared-value consulting relationships.Value is fundamental to a successful consulting relationship.You must know and be able to articulate what value you willprovide as a consultant or will expect a consultant to providefor your BI program. To achieve shared-value relationships,the inverse is also important: You must know and be able toarticulate what value the consultant expects to receive. Whenvalue is described in measurable terms, it becomes possibleto discuss and develop a consensus on value expectations. Integrity is a cornerstone of good consulting practice. Thebest consultants operate based upon a code of ethics. Asa provider of services, be prepared to state your code ofethics. As a consumer, be sure to ask about it. Key ethicsconsiderations include confidentiality and nondisclosure.Also avoid conflict of interest; be (or hire) a consultant whois not influenced or biased by the possibility of work beyondthe scope of the current engagement. Service is the heart of successful consulting; it is a servicebusiness. Thus, consultants are service workers. An effectiveconsultant is one who actively works to deliver real benefitsto clients in a professional and effective way. A positive andpleasant experience upon conclusion of each engagement isthe mark of service-oriented consulting. As a consultant, beable to clearly articulate your service model. If you’re hiring aconsultant, be sure to ask how your prospective consultantsdefine and deliver service. Trust aids in confidence, comfort, and ease of communication - all essential for successful consulting. A relationship based on trust prevents suspicion and misgivings for both providers and consumers of consulting services. Good consultants know how to establish trust and will offer solid and meaningful references who attest to their trustworthiness. Wise consulting clients openly inquire about references and take the time to check them carefully. Accountability helps to set expectations, enhancecommunications, prevent misunderstandings, and assurea conflict-free consulting experience for both parties.Before a consulting engagement begins, agree on fees,reimbursable expenses, reporting responsibilities, the formand frequency of progress reports, the basis of billing, andpayment terms and conditions.Mistake 2: Excessive DependencyThe term “independent consultant” is used in consulting circles to describe a consultant who is self-employed, thus not dependent on a consulting company. Independence of this kind, however, is not a key decision factor. The dependencies that limit consulting value and damage consulting relationships are of a different type - those that inhibit self-sufficiency of a consultant or of a consulting client. An obvious example is the consultant who depends on a software vendor. It is difficult for this consultant to offer unbiased advice about technology selection. I recall a consultingassignment several years ago when I worked for a software vendor. I was sent to a client site to evaluate and redirect a troubled project. At the end of my first week, I understood the cause of the project difficulties: Our products were not the right technology for the client. What an awkward situation for a consultant! Fortunately (with my manager’s agreement), I was able to advise the client to make a change of technology. Objectivity is also inhibited when a consultant becomes too dependent on the income earned from one or a few clients. This consultant is easily caught up in client politics. In these circumstances, it is difficult to choose between telling them what they want to hear and telling them what they need to know. The outcomes of these two approaches are radically different.Client dependency is similarly harmful to consulting success. As a consulting services consumer, position your consultants as advisors, guides, and sources of industry expertise. You are still responsible for decisions and results. The consultant’s service is not a license to abdicate responsibility.Mistake 3: “Cookie-Cutter” ConsultingHaving a consultant with breadth and depth of experienceis a good thing. Sometimes, however, the experiencedconsultant becomes the jaded consultant. Whencomplacency sets in, the “seen it all, done it all” consultantis inclined to quickly classify needs, jump to conclusionsabout solutions, and redefine problems to fit preconceivedrecommendations. In extreme cases, some consultantsmodify reports and recommendations from previousconsulting engagements and present them as analysis,findings, and guidance. Some may ask, “So, what’s the problem? Didn’t the clientsget analysis, findings, and guidance as agreed?” And this isprecisely the problem. A consulting agreement implies morethan that. Every client has a right to expect careful analysis,thoughtful findings, and sound guidance. The qualities ofcare, thoughtfulness, and soundness are exhibited onlywhen the consultant recognizes that each combination ofprograms, projects, problems, and clients is unique. Consultants can avoid falling into the cookie-cutter mode with one simple rule: Challenge your own experience. When you encounter a familiar situation, concentrate first on the differences, not on the similarities. Ask yourself what distinguishes this situation from those in the past. What is unusual or divergent from your experiences? Then, with this perspective, look at the similarities. Finally, confirm your understanding by summarizing for the client and seeking feedback. Consumers of consulting services also have a responsibility to avoid cookie-cutter consulting. Again, one simple rule will help: Participate in analysis. Don’t become a passive recipient of consulting advice. Always participate actively in the analysis process.Mistake 4: Inadequate Fact GatheringThe purpose of consulting is sound guidance based onthoughtful findings of careful analysis. Facts are thegroundwork of analysis. Lacking the right facts, analysis willbe flawed, findings faulty, and guidance unsuited to the realneeds. Thus, fact-finding is the first stage of consulting andan essential consultant capability. A core principle of fact gathering is that listening matters.Fact gathering is a learning process best accomplishedthrough purposeful questions and attentive listening.The “consultant as interviewer” is sure to perform moreeffectively than the “consultant as lecturer.” Fact-finding mayuse a diverse collection of techniques, including interviews,surveys, questionnaires, observation, and more. Rarely,however, are facts found when talking. Finding facts is not particularly difficult. The challenge isfinding the right facts, the relevant facts, and all of thefacts. It is often necessary to ask the same questions manytimes, to ask in different ways, at different times, and ofdifferent people. As a fact finder, you need to work in threedimensions: facts of presence (seeing what is there); facts ofabsence (seeing what isn’t there); and facts of anticipation(seeing what lies ahead). When using the services of a consultant, actively supportfact-finding processes. Attend the meetings. Give fullattention in interviews. Complete questionnaires. Respondto surveys and encourage others to do so. Be patient andunderstanding when covering the same ground multipletimes. Remember that the consultant can’t perform the rightanalysis without the right facts, and you are an importantsource of facts.Mistake 5: Lack of ProcessesGood consulting isn’t art, alchemy, or magic. It is a formalengagement constructed as a particular course of action andintended to achieve a desired result. The course of actiontypically begins with the statement of a need or problem andconcludes with guidance that is presented as findings andrecommendations. The path from problem to guidance is acomplex one that is best navigated using defined processes. Don’t confuse process with methodology. Methodologyprescribes a sequence of activities to be performed and theresults to be produced by each. Consulting is often entry intothe unknown, where the prescriptive nature of methodologyis much too rigid. The processes of a consultant arethose that are readily adapted to the circumstances ofthe moment. Every consultant needs a robust repertoireof processes to support conflict resolution, consensusbuilding, information gathering, feedback and confirmation,root cause analysis, breakthrough thinking, findings andrecommendations, and more. Simply having processes doesn’t make successful consulting. The skilled consultant recognizes when a particular process is needed, has the ability to use it effectively, and hasthe wisdom to adapt it to the culture and needs of the client. You must have processes, but do tailor them to individual clients and their circumstances. When engaging a consultant, ask about processes. Be cautious if the answers sound too much like prescriptive methodology. And be equally careful of any response suggesting that processes aren’t needed.Mistake 6: Insufficient Knowledge ResourcesConsulting is a process of applying, sharing, and transferringknowledge. A consultant’s effectiveness is directly related tothe knowledge resources that he or she can apply to meetclient needs. Perhaps most important is a network of people - the consultant’s essential resource. Nearly everyone in the BI consulting community seeks input, expertise, and feedback from peers when working beyond their primary areas of experience and skill. The strength of a consultant’s network is assessed by two questions: Who do you rely on as a source of knowledge and expertise? Who seeks knowledge and expertise from you? Large consulting groups will typically have a formal network within the company. But don’t discount the self-employed consultant on this criterion. Many strong but informal networks bring together some of the best talent and most extensive experience in the BI industry. Although a network of people is essential, the network alone is not enough to satisfy a consultant’s need (and ideally, a consultant’s appetite) for knowledge. A good consultant is also a good researcher with the ability to locate and verify knowledge when needed. Those who subscribe to paid research services have the edge over those who work solely from publicly available sources, such as Internet searches. Quality - in both timeliness and accuracy of information from research services - is well worth the cost.Mistake 7: Mismatch of SkillsNot everyone is cut out to be a consultant. It is a demanding occupation that requires a diverse set of skills. Three skill areas are indispensable; every successful consultant must have them. Human skills - the abilities to work effectively with people, both individually and in groups - are a must for every consultant. Consulting is a people business first. Research, as described in Mistake Six, is another core skill. And active listening - seeking feedback in verbal, visual, and behavioral forms - is critical to fact gathering, as emphasized in Mistake Four. Beyond the core skills, a consultant may need to wear many hats - and to be constantly aware of which hat he or she is wearing. Facilitator, detective, analyst, teacher, mentor, architect,designer, reviewer, critic, guide, evangelist, bearer-of- bad-news - all are among the many roles that a consultant may fill. As a consultant, consciously assess your abilities in the core skill areas and actively work to refine these skills. Know where your talents lie among the many other roles and skills. When asked to fill a role for which you are poorly suited, seek an alternative, such as bringing in another consultant. When hiring a consultant, don’t compromise on thecore skills; know which of the many other skills aremost important for you to have a successful consultingengagement. Don’t expect any consultant to be an expert inall roles. Seek consultants with talents in the areas whereyou have the most pressing needs.Mistake 8: Lack of ToolsEvery consultant needs a toolkit - the stuff to support the processes of consulting, from fact gathering to delivery of findings and recommendations. Typical fact-finding tools include such things as checklists, surveys, and questionnaires. Analysis is frequently supported with a variety of assessment tools. Documentation and delivery of findings often employ templates. In each of these areas, you must have tools, but you also must use them with caution and reserve. Depending too heavily on tools brings the risk of cookie-cutter consulting. Communication tools are as important as the process tools.Although less formal and structured, they have an importantrole in consulting success. Making it real (whatever “it”may be) is a key element of communication. The tools inthis area include such things as metaphors, analogies,success stories, horror stories, case studies, and personalexperiences. Use care and precision in choosing yourlanguage. Avoid ambiguity in speech, and write clearlyand concisely; always define your terminology. Finally, consider the less interesting but necessary administrative tools. Forms or templates for activities such as progress and status reporting, billing and invoicing, issues management, and change control help to ensure a trouble-free consulting relationship while reducing the tedium of administrative activities. As a consultant, build your toolkit of process, communication, and administrative tools. As a consumer of consulting services, ask what tools are used and in what ways.Mistake 9: Lack of ResultsWhen consulting fails to produce results, it wastes time, energy, and money. When consulting produces results that are difficult to itemize, describe, and evaluate, then conflict and disappointment are likely. The wise consultant works with a defined classification of resultsthat are directly related to services provided, such as understanding, documentation, architecture, designs, models, plans, schedules, etc. Creating this classification is essentially a process of putting names to the things that you produce - the deliverables of your consulting services. A well-defined taxonomy of results is the foundation uponwhich to define the scope of a consulting engagement, toreport progress, to measure results, and to know when thejob is completed. For example, with a classification schemaof understanding, architecture, and models, one specificconsulting engagement might be defined to deliver: (1)understanding of the differences in purpose and applicationof relational and dimensional models; (2) architecturestandards and conventions for choosing between relationaland dimensional data structures; and (3) dimensional datamodels to implement six key performance indicators. Describing results in this form has many benefits: The scopeof the consulting effort is clearly defined. The deliverablesare readily itemized in a consulting services contract. Thebasis of progress and status reporting is well defined.The quality of deliverables can be assessed. The value ofeach deliverable can be determined. And expectationsfor completion of the consulting effort are clear andunambiguous.Mistake 10: Lack of ResultsThe adage, “Give a man a fish and you feed him for a day.Teach a man to fish and you feed him for a lifetime,” is goodadvice for consultants. Knowledge transfer is the highestform of consulting services. The wonderful thing aboutknowledge is that you don’t deplete it by sharing it. Youmay, in fact, see it grow. Sharing what you know doesn’tdiminish your value as a consultant. Quite the opposite:The consultant who transfers knowledge is among themost valued. Building knowledge-transfer expectations into consulting contracts is a good practice. Itemizing deliverables such as “knowledge of ...” and “understanding of ...” sets expectations and helps to ensure that real transfer of knowledge takes place. If you are engaged as a consultant to perform an architectural assessment, certainly perform that assessment. But do so in a participative process wherein the client is positioned to self-assess next time. Similarly, if you’re engaged to develop data models, develop them as part of a learning experience for the client. As a consulting client, strive for self-sufficiency. Expect that every consulting contract includes knowledge transfer among the deliverables. As a consultant, strive to work yourself out of a job. What better references could you offer than self-sufficient former clients?About the AuthorDave Wells is the director of education for TDWI. Througha career of 35 years, he has worked in management,architecture, analysis and design, quality assurance,consulting, and education roles. Having worked in the datawarehousing and BI field since 1994, as a consultant sincethe 1980s, and as a manager who hires consultants, Davebrings unique qualifications and perspectives to this topic.About the Author Dave Wells is consultant, mentor, and teacher in the BI field. He brings to consulting endeavors a unique and balanced perspective regarding the roles of technology in business. This perspective—refined through a career of more than 35 years that blended business and technical roles—helps align business and IT in the most effective ways. Dave focuses on strategic and organizational alignment as the keys to building and sustaining valuable, high-impact BI cultures and systems. Contact him at dave_wells@.。