How Do Consultants Handle Situations With Clients Who May “Laugh” at Them Relative to Projections and Opportunity Outcomes?

23 Feb

Here are some thoughts on how consultants prepare for and handle these types of situations:

  1. Projections may be initially tested in safer settings. If projections end up being perceived as too wild or aggressive, it is better for this to happen in a working meeting or separate session before a “final” presentation is made. Following an iterative process and managing client expectations reduces risk for the consulting team.
  2. Projections are usually based on models with assumptions being made transparent. By making assumptions and modeling transparent, some focus can be taken off of the actual projections. The focus is more on the process and the assumptions, which of course lead to the projections. If the client disagrees with the assumptions or the process and modeling, problems can be resolved to minimize the possibility of clients “laughing” at the consulting team for the projections.
  3. Models and projections are often built by keeping the client team involved during the build process. This further minimizes risk of the client being surprised at the end. It also helps to increase ownership of the projections by the client. All projections have limitations of some sort. So let’s all own both the insights and limitations of the analysis.
  4. If the consulting team was not able to follow any of the processes above or if the consulting team could only feasibly do some of the elements above, then senior people on the team may need to handle a client that disbelieves the numbers and “laughs”. As example of how this could work, the partner could simply assert confidently that they believe the numbers and that a separate session could be set up to go through them. Another alternative might be for the partner to say that the consulting team will take a second look and perhaps one or more of the client members could be involved. Yet another option might be for the partner to suggest that some other scenarios and sensitivity analyses be performed. I will say though that consultants use their analytical training try to avoid being orders of magnitude off when putting forth projections. Or if they are going to provide projections that may be wildly off, they caveat that up-front.

All said, consultants try hard not to let situation #4 come up by actively working on items #1-#3 to reduce risk. It is important to remember that in consulting, the process is an essential part of the deliverable.

The post above was reproduced from a question that I originally answered on Quora.

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