| | By Mick James
A recurring theme of
these columns is the
networked consultancy
and over the years we’ve
encountered many
variations on the theme.
At this point in the
business cycle, networks
come more sharply into
focus, as new entrants
to consultancy look to
deploy skills gained in
management and
established consultants
look to manage risk and
maximise opportunities.
“We’ve been
experiencing some of the
largest turnouts we’ve
ever had at our member
recruitment seminars,”
says Philip Garnar,
co-founder of The
Lamberhurst Corporation
Network. “Whether that’s
a sign of the times or
because we’ve recently
changed the way we
advertise, we’re seeing
a lot more practitioners
coming through.”
Consultancy networks
vary widely in structure
and approach, with some
being little more than
common “badges of
quality” shared between
a loose association of
members, who largely
operate independently.
Lamberhurst is at the
opposite end of the
scale, presenting a
unified corporate brand
to the market, which
rests on the aggregate
skillset of all its
members.
So from the outside
Lamberhurst looks like
any other corporate
entity of its size. The
only hint that things
are different on the
inside is the claim on
the website that
“Lamberhurst consultants
are free from
organisational
politics”. Within the
network, each consultant
belongs to a practice
group, but remains (or
becomes) the boss of
their own incorporated
company, without the
downsides attached to
being a
“micro-consultancy”.
“As a
micro-consultancy you
have no back up or
support; bidding for | |
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| | large public sector
frameworks is virtually
impossible,” says
Lamberhurst co-founder
Barbara Whitney. “We
developed the network to
counterbalance these
downsides.”
One of the biggest
problems independent
consultants face is
generating a sufficient
pipeline of work. “When
people start working as
independent consultants
they often find it a
culture shock,” says
Whitney. “They may never
have sold before and
they no longer have a
colleague to look over a
proposal or test
proposals on. You have
pedigree as a business
person, but no history
as a consultant.”
Even those
consultants that crack
the problem struggle to
maintain it, due to what
Lamberhust calls
“contact erosion”.
“Firstly, there are
only so many times you
can keep selling the
same thing to the same
customers,” says Garnar.
“Secondly, you may have
a client base you’ve
known for over 20 years,
but through no fault of
your own, it erodes. For
example, your client may
be acquired by a company
with a simple philosophy
of not using external
resources – you are
going down a blind alley
– and doing something
about it is very
expensive.”
Sole practitioners
also face another
problem. “When you’re
delivering, who is
selling?” asks Garnar.
“When you’re delivering,
you’re not selling to
the next client, so
revenue continuity is
impossible, and you’re
also not available and
as a consequence of no
use to your contacts.”
Lamberhurst’s
solution is a carefully
designed opportunity and
revenue sharing scheme
which also funds the
group’s centralised
marketing activities.
Individual members pay a
subscription to the | |
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| | group, and keep 100% of
the revenues for all the
opportunities they find
and deliver themselves.
But if these
opportunities turn into
work for other members
they can claim a portion
of the fee with a
further slice going to
the marketing fund.
Members can also call on
other members, for
example, to help with
business proposals while
they are busy.
Garnar contrasts the
network with a
franchise, for example,
where the buy-in costs
are high and each member
must conform to a shared
methodology. Lamberhurst
goes for consistency
where it counts – as a
Recognised Practice of
the Institute of
Business Consulting, for
example, all its members
are actively encouraged
to be IBC members and
all members must conform
to its Code of Practice.
“Credibility is vital
when you sell a service
and so is quality,” says
Garnar. “With 45
professionals your brand
penetration can be 45
times greater.”
This establishment of
a common brand is the
key to the future of the
business, which is
already expanding
internationally with
representation in Europe
and South Africa. The
group’s marketing now
focuses on 300 target
accounts, which are
contacted on a regular
basis, and consists of
large to medium-sized
companies and public
sector organisations.
“We want to be seen
as a business, and
increasingly we are
operating through the
practice groups,” says
Garnar. “Our primary
objective is to be the
supplier of a
comprehensive
consultancy service to
our clients – our
ambition is to become
the premier supplier of
consultancy services to
the markets we serve.” | |
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