Based near Chicago, Waterstone Consulting is a business consulting and systems integration firm specializing in advanced customer and operations solutions. The Waterstone Consulting survey examined many issues, including key selection criteria, client expectations and the perceived advantages and disadvantages of both large and niche consulting firms.

"This research was extremely helpful in allowing us to better understand what clients really expect from their IT-consultants," said Rick Podgorski, President of Waterstone Consulting. "We hope to utilize these findings to better measure our clients expectations, and to focus our efforts on the services and qualities they most value."

Aimed at high-level operations and MIS executives, the survey sought responses to these five questions: How do clients handle the decision making process when choosing an IT consultant? What are the key consultant selection criteria? What specific attributes or expertise is missing in the IT consulting marketplace? What do clients expect from their IT consultants? What are the perceived advantages and disadvantages of choosing a "Big Five" vs. a niche consulting firm?

The Decision Making Process

The Waterstone Consulting survey indicated that many companies make a software decision first- and then decide which, if any, consulting firm(s) to retain for implementation of the chosen software. Typically, internal staff is assembled to assess and evaluate this need. Identifying "the right" consultant is not always an easy decision, and occurs most times through successful prior relationships, recommendations of business contacts, vendors and associates, and selection of a recommended partner of the software being implemented.

Key Selection Criteria

The survey also indicated the following top five criteria clients utilize in choosing an IT consultant:

• Expertise or experience in a given technology or system ­ Clients hire consultants whose expertise matches their needs. Remarked one respondent, "that's why we look to bring [the consultant] in."
• Responsive, timely service - Clients expect their consultants to develop a realistic timeframe from implementation and commit to it. "Give me a date and stick with it," stated one respondent.
• Professionalism ­ Clients expect their consultants to understand the problem and provide solutions. "We like them to be consultants not sales people," said one respondent. Consultants should also be "punctual, dressed appropriately and treat others with respect and dignity," remarked another.
• Strength of reputation in consulting ­ clients prefer a consulting firm with a proven track record in "doing a quality job and delivering high value".
• Ability to handle systems development and/or integration for the complex areas of a business ­ For many clients, it is of vast importance to hire a consulting firm with knowledge of complex business processes. "That's the value they bring to us," remarked one respondent. "[We want a] technology solution that solves our problems."

What do consultants lack? What do clients expect?

Many respondents feel that knowledge of a client's general business and an understanding of business functions and how they need to interact are skills that are largely lacking in consulting situations today.

When identifying the qualities they most desire in a consultant, clients seek team players who are flexible, easy to work with, and communicate openly. The Waterstone Consulting research also indicates that building a sense of trust with a client is paramount, as is transferring knowledge through the life of a project so clients can be self-sufficient when the new system is in place. Above all, clients look for consultants who will take accountability for their actions.

Advantages/Disadvantages of Big Five Firms

According to the survey, Big Five firms are typically stronger than smaller firms with regard to their breadth of knowledge and expertise ­ especially in the field of leading-edge technology. Big Five firms are also perceived to have clout with certain software vendors, and an unrivaled ability to scale up numbers of consultants to staff large projects.

Size has its price, however. The services of a Big Five firm are viewed as more expensive, as clients feel they may be simply "paying for a name". In addition, those surveyed indicated that larger firms tend to employ inexperienced people who receive on-the-job training at the client site. "We want expertise when we bring them in," commented one respondent. "We don't want to pay for their training". In addition, many Big Five consultants are viewed as difficult and arrogant ­ and are more interested in being leaders rather than team players.

Advantages/Disadvantages of Niche Consulting Firms

Those surveyed indicated one minor drawback to niche consulting firms lies in the availability of man-power. Many respondents feel that should a niche organization get behind on another project, their own project may suffer due to lack of resources.

However, those surveyed also feel that niche firms seek to build better client relationships, and generally provide a better value-to-cost ratio for their clients. "They feel our project is a big deal", commented one respondent. In addition, niche firms are viewed to offer better customer service than their Big Five competitors, in addition to reacting better and faster, and work harder to meet client needs.

Waterstone Consulting is a business consulting and systems integration firm specializing in advanced customer and operations solutions. With expertise in customer management and supply chain management, including ERP implementations, Waterstone Consulting drives client success by solving complex business needs using advanced technology, a straight-talk approach, and an unmatched ability to deliver on promises.

Based in Des Plaines, Illinois, Waterstone Consulting has served the needs of mid-market and Fortune 500 companies since 1992. Waterstone's client roster includes market leaders such as Caterpillar, Monsanto, Motorola and Whirlpool, as well as growing mid-market companies including The Antioch Company and ChemRex . For more information, visit the Waterstone Consulting web site at www.waterstone.com.