Total Diversity Management Click to Visit www.cramerscube.com
 
C U R R E N T   A R T I C L E S:
Convert from Out-Sourcing to In-Sourcing
Keep The Corporate Expertise In-House
 

I. The Power of Diversity

Historically, corporations have hired management consultants to help them address problems, confront challenges and define strategies. I will not presume to judge the degree of success that this approach has achieved in an analytical sense, but will instead propose a methodology that enables corporations to be more efficient with their resources. I propose that the resources and the expertise to provide the same, or even greater, level of support already exist within the diverse ranks of the corporate team. Applying the proper methodology, it can be demonstrated that corporations no longer need to look outside of their organization to find the type of expertise that it requires. It already resides within the company.

If a company has a highly developed diversity program, it no longer needs to bear the expense of hiring consultants. Through its Diversity Attainment, the first step is to recognize that the company has created a very diverse group of thought, insight and experience within the ranks of its employees. This diversity needs to be tapped in order to reach the corporate objectives, and to enable the individuals and the workgroups to reach their full potential and maximum contribution.

When engaging with a management consulting team, a typical flow of events would approximate the following steps:

  • Corporate executives define a problem, opportunity or challenge.
  • Corporate executives define its severity, degree of concern or degree of opportunity.
  • Corporate executives make an attempt to address it.
  • Due to time constraints, priorities or lack of expertise, the executives talks to management consultants.
  • The management consultants are informed of the situation and they put forth their credentials and applicable capabilities.
  • An expectation that the management consultant can provide value is established.
  • The management consultant is hired.

It is non-productive to discuss whether the "right" consultant was hired and whether the selection process was fair and balanced. It is more productive to determine whether the process was the most practical and the implementation was potentially the most effective. Although this will take direct aim at the status quo and entrenched modus operandi, I propose that the answer is a resounding "NO!" Challenging the strategy of hiring management consultants is not done for the purpose of undermining their credentials, integrity or value. Rather, it is simply a change in focus. The corporate executives need to look elsewhere for the insight and expertise to address the issues that traditionally have been "solved" by management consultants.

 

II. Pitfalls of Traditional Management Consulting

There are many compelling reasons for moving away from the traditional business practice of using management consultants. The first reason is found when the executives meet with the consultant organization and explain the issue and define the assistance that is required. This is where the process begins to break down. As has been said, and paraphrased many ways, a strong house must begin with a strong foundation.

Traditional management consultants provide an approach that uses a weak foundation. The executive team describes the situation from their perspective and personal view. The consultants listen and absorb the information from their perspective, experience and motivation. If we fast-forward to the point where the consultant has been awarded a contract, it is interesting to observe what happens next. The consultant team will usually fan out into the corporation to gather statistical information from corporate and departmental records. But, even more importantly they will strive to gather perspective and insight from the employees. This will either a) validate preconceptions or b) define root causes that had not been foreseen by executive management. Whether it is "a" or "b", the consultants will begin their work to address the matter and define a documented approach that will correct or improve it.

 

III. An Alternative Methodology

If we propose to eliminate this approach, what would take its place? The answer lies in the sequence of events previously listed. Instead of the management team handing the assignment to the consultant who in turn collaborates with the employees...hand the assignment to the employees!

Most likely this recommendation might appear to be rather naïve. That may be an accurate assessment, unless a methodology can be deployed which the executive team endorses for the employees to follow. You cannot expect employees to effectively follow the same flow that the consultant would use. If they did, the results would be disastrous because the employees have not been educated and trained to think and operate as consultants. An alternative methodology must be put in place.

As with consultants, it would be expected that these assignments require a team of employees.

That being the case, the corporate executives must take four actions:

  1. Select the employees for the workgroup assignment.
  2. Describe the objective.
  3. Define the team's operating methodology.
  4. Define the expectations of the team.

If this has the possibility of being successful, the first person who would need to be convinced is the CEO. After all, corporate consultants are embedded in the workings of corporate methods and it takes a daring move to make dramatic changes. Of course, there is apprehension that the result will be disappointing or possibly detrimental to the corporation. Consultants have certifiable expertise, but the employees do not. How do consultants maintain that expertise? Obviously by working with corporate clients and their employees.

That being said, how can this change ever be made? In this case, the starting point for change is item number 3. If the CEO can certify that a methodology can provide effective operating dynamics and satisfactory results, then the change can be made.

It was decided to discuss item number 3 instead of item number 1 because that item has already been completed. For companies that have made the investment in Diversity over the past decade, the corporate team is already comprised of a rich mixture of individuals. Selecting a "consulting" team from the ranks of the diverse groups of individuals is rather easy.

In selecting a methodology, the CEO would want it to:

  1. Be easy to understand, communicate and follow.
  2. Have steps that are clearly defined and documented.
  3. Be conducive to an operating environment that is energized and civilized.
  4. Allow all team members to have equal power, influence and impact.
  5. Permit tasks to be completed in an acceptable amount of time.
  6. Accommodate and encourage all aspects of diversity.
  7. Promote team dynamics that are passionate but not personal.
  8. Have clear rules of discussion, argument and debate
  9. Establish standards for conduct
  10. Avoid sacrificing individuality and insight in the process.
  11. Define, understand and follow the rules for team collaboration
  12. Push the limits within the methodology, enabling the team/individual to excel
  13. Conform the team's recommendation to established criteria.
  14. Require more than one recommendation.

 

IV. Power to the Employees

In adopting this methodology, the team members will no longer be unpaid consultants to the company. Rather, they will have been given the opportunity to have ownership in the output as opposed to only providing input. In the big picture, if such a methodology is adopted and followed, two significant byproducts will be created. Employees will achieve a level of pride and satisfaction in seeing that their unique talents and insight are being utilized in assignments that are important to the corporation. This might dramatically contribute to corporate success by creating a very high level of employee satisfaction that directly affects the corporation's recruitment and retention. It also dynamically and profoundly alters the corporate culture and identity.

Item 14 requires some elaboration. The reason that more than one (the preference is 3) recommendation is required is not because there is apprehension about the team's capability in comparison to a consultant. It is required so that the executive team can make relative evaluations and assessments. Defining the recommendations as Innovative, Extreme and Revolutionary will challenge the team's abilities but it will also challenge the range of solutions that the executive team was prepared to consider.

Now is the time for corporations to make the switch from consultants to internal contributors for obvious reasons in this difficult and challenging economy. The primary reasons supporting this argument are:

  • Financial constraints have already reduced the hiring of consultants.
  • Consultants were engaged prior to the downturn.
  • There are multiple challenges faced by corporations...how many consultants would be needed utilizing a traditional consulting model?
  • The environment is so dynamic that it is difficult to accurately define the corporation's issues and challenges.
  • By classifying corporate diversity as an asset, the corporation will maximize its potential.

 

V. A Brave New Diverse World

This may be a somewhat abstract concept for executives to accept at first glance, principally because there has been a significant shift toward outsourcing by major corporations. Outsourced items have included manufacturing, payroll, public relations and product development. These departments had previously helped to define the corporation's identity but now they reside somewhere else, with someone else. Now is the time to tap your greatest corporate asset, the one in which you continue to invest, even though you continue to implement your outsourcing strategy.

You now have a richly diverse corporate team that, in all probability, you personally built over the past few years. The only way to find out what they are capable of achieving and contributing is to provide them with the opportunity to show you. Make the transition by moving your diversity initiatives from a program to an asset. Next, adopt a dynamic working environment utilizing the comprehensive methodology of Cramer's Cube for workgroup assignments. Finally, have the teams tackle the important issues that you previously reserved for the consultants.


Vincent M. Cramer is the author of Cramer's Cube. He is also the founder of Winchester Consulting Group, an Organizational Development and Training Company specializing in the principles of Cramer's Cube and its application to Diversity Asset Management™.

 
 
 
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© 2001, 2002, 2003 and 2004  Vincent M. Cramer