Proposals, Part 2: The Potential Solutions

In Proposals Part 1: Why They are a Waste? I presented five problems associated with the commonly accepted ‘standard’ consulting proposal – the kind that can be found online with a simple search.  What spurred my need to write this two-part series consulting proposals?

Within the past month I was talking to a relative newcomer to the consulting profession.  This individual, like so many solopreneurs, had come from within an industry that they now intend to consult to.  The individual was describing a meeting with a C-suite member of an organization in the industry who was talking about their needs and whether the consultant could help them.  The smiling newcomer offered up, “Yes, I’ll send you a proposal.”  

You can see the potential problem here, can’t you? In short, the new consultant took an opportunity and perhaps squandered it by immediately offering a proposal.  The consultant, subsequently, spent hours of (unpaid) time writing the proposal, which they emailed, and, in the process of creating ‘credibility’ gave away their time and their intellectual property with no expectation of reciprocity, i.e., paying consulting engagement, from the possible client.  BTW, as of this writing, the new consultant has not heard back from the ‘prospect,’ changing their initial excitement to current anxiety.

How do you as a management consultant avoid this trap?  Let’s explore possible ways.

If a Proposal Is Required/Requested:

Better Differentiation – If you absolutely have to submit a proposal to a request, then write it differently from your competition (again, as stated in the previous blog most consulting proposals contain essentially the same sections creating few opportunities to set yourself apart) and create another process seeking the prospect’s involvement in the process.  

There will be ample opportunity to address/present what you do (IT, HR, OD, Strategy, Marketing, etc.), your skills and knowledge.  In doing so, please accept there is little you can do in this context to separate yourself from the competition other than in ‘putting a tidy bow’ on your experiences/past projects.  In this approach, then, it seems to come down to price as the ultimate differentiator.  And, is this how you want to compete?  Michael Porter would likely suggest that this is a losing strategy, especially for professional services.

A couple simple hints:

Hint #1 – Prepare your proposal and mark it DRAFT, primarily in that it allows you to use language along the lines of “to ensure that I have heard you and that the scope and deliverables I propose are aligned with your needs, please feel free to mark-up this draft proposal, adding clarity where warranted.”  Most prospects cannot resist the urge to edit the proposal and, in doing so, they convert your proposal to theirs, they have an ownership/authorship in it now.  You do not have to accept their changes; they simply give you a opportunity to have further discussions, refine and clarity the proposal, and gain their trust in the process.

Hint #2 - If nothing else, add a section towards the end (after Fees and before the signature line) about benefits accruing to the prospect due to your efforts.  In simple terms, do not end the proposal on Fees.  Use this section to ‘convert’ your outcomes to, where appropriate, both quantifiable benefits and qualifiable benefits.  For example, your project may yield cost savings through operational efficiencies or through improved flow.  Your project may also yield other, not-so-quantifiable gains, such as improved employee morale or improved customer satisfaction.  Spell these out, realistically of course, and use this opportunity to allow the reader, your prospect, to focus on something positive, not Fees. 

Simple, but none of the standard, prototypical consulting proposals I saw online ended in a positive note.

Hint #3 - Additionally, further differentiation involves adding information about how you consult and how you are different from your competition.  An estimated two million folks consult in the U.S. today in an estimated one million firms; separating yourself from these others must include how you consult – the professionalism you stand for.  I’ve written previously about five things I do to separate my practice: adherence to an enforceable Code of Ethics, adoption of a professional Code of Conduct, certification to an international set of Consulting Competencies, and use of consulting checklists inherent in ISO 20700 training.  To do so I further add to proposals this paragraph:

“As a prospective user of consulting services, you obviously have the absolute right to hire the consultant you deem to best fit your needs.  I would suggest that you give strong consideration to those consultants who have been independently vetted to meet the highest international consulting standards, the CMC®, and who adhere to an enforceable Code of Ethics, a professional Code of Conduct and are trained in the international standard for management consultants, ISO 20700.  This is for your protection.” 

Furthermore, I refer to and attach PDF copies of both the enforceable Code of Ethics and the professional Code of Conduct.

[BTW, for a mere $325/year you, too, as a member of IMC USA can have privy to an enforceable Code of Ethics and a professional Code of Conduct.  If you feature these two tangible benefits from being an IMC USA member you have clearly differentiated yourself – and in an all-important area, ethics and behavior. The ROI on your membership fees, especially as used in the proposal stage, is fairly straightforward and positive.  You can also start yourself on a path, perhaps, to attain the Gold Standard in Ethics and Professionalism, the Certified Management Consultant®, the CMC®.]

If a Proposal Is Not Required/Requested:

But, what if a proposal is not required/requested, then change the sales process to remove the need to do so.  Simply do not offer one up to a prospective client, even the word “proposal” suggests non-closure (a proposal is “… put forward for consideration or discussion..”)  Much too open-ended for me.  I simply say, “I don’t do proposals.”  Sacrilegious? Perhaps?

Change the Process with Better Questioning - What if, in the example presented earlier, the new consultant had considered a different method to ensure the process was more successful yielding an engagement?  Remember, the consultant was not asked to submit a proposal, they offered it up.  What if this individual took control of the conversation, rather than simply jumping to giving away IP and leaving indecision in its wake?  How would it look to simply say, “I would be pleased for the opportunity, may I ask some questions before I respond to ensure I fully understand your situation?”  Then ask for additional time (then, or scheduled later) to meet with the prospect, to ask open-ended questions about the history and the current situation, and listen (and process) what was shared, and likely building a level of trust?  Then and only when you have that trust, try to get agreement to move forward, for example, with a Letter of Understanding or a Letter of Agreement.  Nothing is ‘proposed,’ it’s understood, assured, and committed.  To repeat, “I don’t do proposals; I will do a Letter of Understanding or a Letter of Agreement if you wish.”

Find your language and refine your approach to writing proposals. They are not automatically required in most cases.  To a degree, providing proposals is a self-inflicted wound for consultants. Break the accepted pattern and set yourself apart, more valuable, and more trustworthy.  Slow down and own the process.  Work on building trust and thus increase your closing rate (win/loss ratio, you do measure it don’t you?).  Lower your uncertainties and anxieties accordingly.

This and the previous blog are prescriptive and, hopefully, challenge you to redefine your sales process.  Don’t give away your work plan, your IP, and your fees in hopes of getting a gig.  Ultimately, it is not worth it especially in terms of lost time and IP and increased anxieties and uncertainties.  Consider there are variations to the generally accepted process that do yield increased work and realization on your P/D efforts. 

You are the owner of the process (mostly speaking), own it.