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Building Organizational Capacity

HOW TO SELECT A CONSULTANT
by
Moy Eng

Your organization has an issue.

Your town wants to donate a former municipal schoolhouse and has given your organization twelve months to formally respond with your answer. Your arts agency has long outgrown its 800 square feet of donated space and relies solely on additional donated spaces for its informational services, technical assistance and exhibition offerings. Your board and staff are thrilled with the opportunity. But, can you afford to move, renovate and refit the building for your programs? How will this potential facility project impact on your current program offerings and human and financial resources? Should your organization say "yes"?

OR

Your arts agency provides a breadth of services to the arts community and presents a multi-discipline series at the local community college. A lean, devoted three-member staff accomplishes this broad spectrum of activity. Yet they also continue to look for new opportunities to showcase local arts resources. The strain on the staff is clear. One evidence is that the Executive Director has had significant staff turnovers over the past three years. Another indicator is that they seem to be either working too close to deadlines or missing them altogether. Your organization has never had a long-range plan before and you're wondering whether it's time to create one.

OR

You are on the Board of the local arts presenter in a community that has a sizable African American and Latino community. There have been discussions over the past two years at board meetings about improving the organization's outreach to both communities. You know that board representation, Advisory Board participation and relevant programs in conjunction with thoughful targeted marketing efforts are key. But, the organization doesn't know the community leaders or how to begin and sustain an outreach effort.

OR

A major funder has cut support because your organization is not meeting their guidelines and criteria as effectively as other similar organizations. The funder recommends that you hire an outside consultant to help analyze your programs and services and how effectively they serve your community.

The aforementioned are some of the scenarios that provide the impetus to consider seeking help from a consultant. Your organization has reached a juncture where the problem is beyond your organizational leaders' expertise to successfully tackle it without outside assistance. Concurrently, your funder may have suggested that you find a consultant to help you solve it. But, you don't know where to begin or what you can expect from a consultant.

A consultant is an individual who provides counsel on a specific topic for a specified time period: for example, six months, or on a long-term basis. What you can expect from a consultant are: expertise, an unbiased opinion and viewpoint, confidentiality, and strong facilitation, analytic and communication skills.

STEP ONE: ARTICULATE YOUR ISSUE.
Before you make your first call, your organizational leaders need to be able to concisely express the issue. Are you ready to answer the following questions?
· What is the organizational issue?
· How long has this problem been occurring? Is this problem a recent or a long-term concern?
· What are contributing factors to this issue?
· What past or recent actions have you undertaken to solve the problem and why were the actions unsuccessful?
· Why is there an urgency to solve this problem now? Does the problem result from a crisis?
· What is the potential impact on the organization, if the problem is not resolved?
· What specific outcomes do you want to achieve, once the consultancy is completed?

By writing and verbally articulating the problem, this process will help you to identify what area of expertise is needed from your prospective consultant. Is it a board or staff issue? Is it facility development? Or, is it in program and service development because your arts agency wants to embark on a community needs assessment and planning process?

Also, you should determine the kind of consultant who may be most effective in solving your organization's issues. Some consulting styles follow:
· Expert - This assumes that the client (your organization) has made the diagnosis and is looking for a "product result."
· Physician - The doctor/patient model is where the consultant diagnoses the problems and prescribes solutions.
· Nurturer - The consultant and organization work together in identifying and solving the problem.
· Mediator - Where in-house communication has broken down, the consultant is brought in to act as an arbitrator.

The goal is to find the best possible match in expertise and style between your organization and the potential consultant.

STEP TWO: GATHER CONSULTANT RECOMMENDATIONS.
There are three common ways to find a consultant. The best way is to ask for recommendations from your board members and respected colleagues. The second is via funders, technical assistance providers, and allied organizations such as the Alliance of New York State Arts Organizations, Arts and Business Council, Asian American Arts Alliance, Americans for the Arts, and Volunteer Lawyers for the Arts. The third is from trade publications and resource books like this one.

As you canvass for suggestions, don't accumulate a list bigger than you are able to follow up with: for instance, 6-10 names and their contact information.

STEP THREE: CONDUCT INTERVIEWS.
Be succinct and accurate--250 words or less is a good rule--when you describe your issue to the consultant at first contact. During this initial phone discussion, the consultant becomes acquainted with your organization and the key issue(s). You obtain essential information on the consultant's expertise, leadership style, fee structure and availability, to help you decide if you want to work with him or her. Ask the consultant to send the following: materials on the consultant or firm (biography, resume or promotional brochure), client list, and a list of references on assignments similar to your issue.

You then will arrange for an initial meeting with each of the consultants whom you are considering. It is helpful to meet the consultant in-person and on-site, to reaffirm your initial impressions and to have a lengthier opportunity to discuss how the consultant could assist your organization. The average initial one-and-one-half hour meeting is usually conducted without cost. However, if the consultant is not local, it would be expected that the consultant's travel costs for the initial meeting would be paid by the organization.

It is important to apprise, and when appropriate, incorporate key board and staff members in this selection process, especially if the consultancy will be focused on board and organizational development and strategic planning.

STEP FOUR: ASK FOR A REQUEST-FOR-PROPOSAL.
Once under further consideration, you should ask from your leading candidates a "request for proposal", or RFP. It is important that you give the candidates a deadline for the RFP. The request for proposal outlines the scope of work to be performed and provides the framework for the subsequent letter of agreement between the consultant and organization. The RFP should include:
· a description of the issue(s) being tackled
· strategy and goal of the proposed consultancy
· timetable
· projected outcomes
· listing of reports or other "products" to be generated as a result of the consultancy
· project budget
· financial agreement and payment schedule
· key personnel working on this project - roles and responsibilities, including support staff
· two designated liaisons: a board member and a staff person to whom the consultant is responsible

STEP FIVE: EVALUATE THE REQUESTS FOR PROPOSAL.
Carefully review the proposals from your leading candidates with the following criteria:
· depth and breadth of expertise in your area of need -- has s/he worked with similar organizations or on comparable assignments?
· successful outcomes from past consulting assignments -- call references and review past reports, long-range plans, cultural assessments or other products that will be pertinent to your consultancy.
· viability of the proposed strategy within the planned time period.
· affordability -- what are the personnel and non-personnel costs for the consultancy?
· strength of their individual analytic and communication skills. · cultural background and/or language skills -- is your consultancy focused on issues of cultural diversity in board, audience and program development?
· geographic proximity.
· leadership style and personal chemistry with your organizational leadership -- does your board and staff leadership feel that they can be candid and put their trust in the consultant and in his/her advice?

STEP SIX: DEVELOP A WRITTEN AGREEMENT WITH THE CONSULTANT.
Once you've narrowed your choice, make an offer. Complete the negotiations and then outline the "letter of agreement". The letter of agreement is a legal document which should outline what services the consultant has agreed to perform. This document can be written by either the consultant or your organization. It is in your best interests to write out this contract: make sure it accurately represents your verbal agreement, and review it with your lawyer before you submit it to the consultant. Then, you can sign on the dotted line.

Congratulations! You are ready to begin working with your consultant. For a productive consultancy, here are some pointers.

Be clear about your expectations concerning this working relationship from the very beginning. Clarity and candidness are critical to the success of this partnership. Without it, you create an environment where nothing is direct and this only hinders the consultancy. The results are a slower start-up, longer assessment period, and little or no buy-in by the participants in the consultancy.

Establish regular communication times between the consultant and organization so that not only is key information shared, but misunderstandings have little time to fester and develop. This is particularly true when participating individuals from different backgrounds and varying perspectives come together for a common purpose. Identify the key board and staff members who will participate in the consultancy. Outline their roles and responsibilities in the consultancy. Delineate the lines of communication and who will facilitate the information.

Recognize the increased work generated by a consultancy. The scope and magnitude of the problem(s) being addressed impacts on the additional time demands on staff and board members. Your organization will have preparation, ongoing communications, and follow-up work with the consultant. For instance, when executing a board retreat, the organization may have eight to twelve hours of work: designing the retreat agenda with the consultant; conducting pre-retreat meetings with board and staff members; securing the location; disseminating the retreat information to the Board; executing the follow-up calls; organizing the travel to, and accommodations at the retreat site, and doing the transcription of the retreat notes.

Be mindful that your identified issue may not be the real problem for the organization. The consultant typically conducts a comprehensive overview and assessment of the organization at the onset. At times, this analysis reveals a deeper problem where the original issue was only a symptom. For instance, a consultation on board development and strategic planning may be needed before successful fundraising can occur. Be open to change and address what may be the genuine and more compelling issue with the greatest potential for long-term organizational impact. If you decide to do so, make sure you renegotiate the letter of agreement with your consultant.

Voltaire said to "judge a man by his questions rather than by his answers." Hiring a consultant is more than engaging intelligent, thoughtful counsel on an issue. The best consultants ask excellent questions and help an organization find its right answers. The optimal use of a consultant is as a catalytic agent, one to stimulate positive change in an organization and its leaders. Take care in finding the right consultant and you may be rewarded with a revitalized organization.

How to Select a Consultant
By Moy Eng
September 1996

This article was commissioned by the Alliance of New York State Arts Organizations exclusively. No additional printing of this article may be done without written permission of the author. Additionally, no part of this article may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without written permission of the author.

The Alliance of New York State Arts Organizations has a 29-year history as New York’s service association for community based arts and cultural organizations. The Alliance provides leadership and vision, and delivers services, resources and tools that strengthen cultural organizations. The Alliance informs the field on statewide and national issues affecting the arts and assists local arts agencies in building community support.

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