By F. Ciampi
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15 Criteria for “success fees”, and similar payments, are not easy to establish, because it is difﬁcult to determine ex post which changes in the client ﬁrm’s structure and business performance results are a direct consequence of the consulting intervention. Another difﬁculty is that (most of) the effects will be produced after the end of the consulting intervention. In this regard, see Section 5 in this Chapter. 48 CRITICALITY Consulting service as a “credence good” good Initial consultant-client contacts Preliminary diagnosis CRITICAL REQUISITES Empathetic skills Synthetic skills Self-confidence Consulting proposal Complexity/Urgency of the consulting problem Intervention proposal Comparable/relevant previous experience Financial proposal SNARES “Last beach” syndrome Negotiations CONSULTANT ’S AREA CLIENT ’S AREA Complexity of the “purchasing problem” problem ESSENTIAL TASKS NON-PHYSIOLOGICAL ATTITUDES Stipulation of contract “He’s ’s not one of us” us syndrome Formal contract Psychological pact “Contractual” attitude 49 Figure 6.
Experience has taught me that being totally transparent can create a sense of insecurity in the other party (I have “lost” many potential clients for this very reason), but in the long term it certainly pays off: in the remits I have been given in the past 10 years I have always received the maximum cooperation from my clients, and only in one case have I been criticized for not fully attaining the consultancy project goals (and in our profession attaining 100% of the objectives within the given timescale is the exception, rather than the rule).
Those that interpret management consulting as a speciﬁc type of professional service (“management consulting as a profession”). 2 One of the consultant’s main responsibilities is to assist client ﬁrms in deﬁning the entrepreneurial problem from their viewpoint and in such a way as to protect their interests (Schaffer, 1997a; 1997b; Turner, 1982). The consultant must withstand any opportunistic temptations (Ormerod, 1997) to pursue other purposes (Saxton, 1995), such as inducing the client to purchase what the consulting ﬁrm wants to sell, rather than what the client really needs (Madigan & O’Shea, 1997).
The Knowledge Creation Potential of Management Consulting by F. Ciampi