A recent post on Mark Lee’s Blog, titled “Fees, fees, fees” brought up an interesting point about the focus on consulting firms focus on the holy grail of billable hours:
http://bookmarklee.wordpress.com/2006/10/17/78/
I recently heard of a company that uses a very ingenious method for rewarding its consultants for finishing a project. Typically, a consulting firm will focus on the number of dollars earned with professional services. A consultant would be given a bonus if they recorded an exceptional number of hours ($$$).
This firm used a customer-centric method for rating their service. Instead, they would give the customer a score card and ask them to rate the service and benefits of the project. The consultants would then get a bonus based upon the results from the score card. The customer would set the bonus – not the billable hours.
I like this approach because it creates an environment where the consultants focus on customer satisfaction – not just raking in the billable hours. Some consultants see a customer as a short-term opportunity to earn revenue. A score card approach shifts the focus towards creating long term, reoccurring customers. In the long run, this approach is far more beneficial for both the consultant and customer.
Filed under: Billable Hours, Consultating
