White Papers & Articles

Are you an effective leader? 

​If you answered ‘Yes’, how did you come to that conclusion?  Did you base your answer off your company financial performance,  goal achievement track record or your wonderful employee morale? What if Peter Drucker himself had an opportunity to review your leadership work, do you think he would come to the same conclusion? 

If by chance you are new to the philosophies and teachings of Peter Drucker I highly suggest taking some time to familiarize yourself with his works.  Short and sweet – Drucker is considered the godfather of business leadership and is responsible for much of what we know today on how effective leaders work and operate.  His works redefined leadership through the 60s, 70s and 80s and we still refer to his teaching on the daily today.

What makes for an effective leader?  Let’s ask Drucker himself.  ‘The Effective Executive’, a leadership book for the times and originally published in 1967, provides eye opening insight on exceptional leadership in ways which broke the mold back then and continue to do so today.  ‘The Effective Executive’ provides a straight forward, simplistic guide to “getting the right things done” for people in a leadership capacity.  What I found amazing about this book is how relevant and simplistic Drucker’s advice is, even for today’s purposes 52 years later in a business world that is far different from when these thoughts were put to paper.

So, what is it then that makes for an effective leader?

All too often I find people enjoy making the topic of leadership how-to’s overly complicated.  Maybe they do that to sell more books or to justify their new and insightful leadership methodology.  For me, I’ve found the more simplistic something is the better chance I have in understanding it, implementing it and continuing to act on it as a new habit. 

Drucker’s approach to leadership success and effectiveness is simplicity at its best.  He identifies the following five core competencies successful leaders should have as a part of the fabric that guides them through their daily work:

1. Managing Time
2. Focus on outward contributions, gearing efforts towards results
3. Knowing where and how to mobilize strength for best effect
4. Setting the right priorities
5. Combining #1-4 with effective decision making

Humbly, I’d like to offer up a 6th leadership core competency to add to Drucker’s list:

1. Empathy. Modern day leadership requires emotional intelligence, or simpler put and ability to be empathetic and understanding of others, especially ones employees.

While this list may seem incredibly simple, I can tell you from personal experience it’s anything but that.  Often times the most simplistic things in life can be the most difficult to master.  Why?  Because it takes discipline.  Though these concepts may be easy to understand, the difficultly comes in the form of holding oneself accountable to doing it above all other things.  That’s the tough part! 

“Intelligence, imagination and knowledge are essential resources [for a leader], but only effectiveness converts them into results.” – Peter Drucker

Being disciplined to doing the right thing at the right time is certainly easier said than done.  So much so that Drucker identifies that the number one reason for leadership failure is the inability or willingness to change with the demands of and expectations of the new job.

Key Take Away:
The leaders’ who are willing to change and adapt while being disciplined to doing the right things at the right time are the ones that will be the most effective.

Action Item:
Read Drucker’s book ‘The Effective Executive’.  Regardless of your job title the insight you’ll gain from his timeless approaches to leadership is worth every minute you spend reading it.
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The demand for consulting is up, way up! 

The US consulting marketplace has grown consistently over the past decade.  In the last three years, 2015-2018, consulting services have increased upwards of 25% bringing it to an estimated $68.5 billion U.S. dollars.

Demand is up and so is the desire from the US workforce to provide the service. 

Whether you’re new to consulting hoping to dive in to get a piece of the current demand for consulting services, or you’ve been consulting for years, you’ve inevitably been challenged with the thought…

“How should I charge for my services?”

Here we’ll give into a quick and straightforward guide for establishing your consulting fees and the things which need to be taken into consideration before settling on your pricing approach.

#1: Research the local marketplace – it is imperative you understand what the marketplace yields for the consulting services you plan to offer this way you have an understanding of how you fit in with your competitors and their respective offerings. Best way to obtain this information is to ask others in the business, attend events and get quotes from others in similar lines of work.  While you always want to make sure you’re getting paid for what you’re worth, you also need to be cognizant of pricing yourself out of the game.

For example, in Irvine, CA there is a large supply of people offering mechanical engineering design services. Baring any unique or niche expertise the average mechanical engineer consultant charges anywhere from $50-80/hr.  If you’re charging $125/hr for similar services you may find yourself missing out on projects with potential clients because the end user, or client, has too many other reliable and capable consultant options to choose from at rates cheaper than your offering.

#2: Fixed cost vs. time & materials – you’ll need to decide up front what type of pricing strategy you’re going to use.  Fixed cost is when you charge a flat fee or a ‘not to exceed’ fee for work you’re performing regardless of the amount of hours it takes you to get the job done.  Time & materials pricing structures price based on the amount of hours it takes to complete the job.  Read more HERE.

#3: Long game mindset – your pricing should reflect both your experience, capabilities but also your willingness to get repeat business from your clients.  If your rate is higher than the average marketplace rate for similar service you may still be able to get work, however you may find the client doesn’t pick you for additional work or longer projects.  Remember, the higher your rate the higher the clients expectations will be on your performance and the further scrutiny you will receive on your work output. 

#4: Know your profit margin – it’s important you understand what potential profit you stand to make for each project.  Profit is what keeps you growing and stable long term.  If you’re constantly breaking even you leave yourself at risk for unexpected downturns and other things out of your control.  Establish an ideal profit margin per project you want to achieve and incorporate that into your pricing.  Learn how to establish a profit margin HERE.

#5: Flexibility is key – clients like working with consultants that are flexible; if you’re too rigid with your pricing you may find you’ll lose out on opportunities in the long run.  Try pricing your work based on the difficulty of completing the task.  Perhaps you have a minimum threshold you’re going to charge per hour (say $100/hr) and then based on the work you’re potentially taking on you will scale your price upwards by 25%.  It’s not uncommon for consultants to have a pricing menu based on the range of their capabilities and difficulty to perform the work at hand.  We suggest not using a ‘one size fits all approach’ for pricing your services.

#6: Know what you need – while you should never price your consulting practice based on your personal lifestyle (clients don’t care how big your house is, what car you drive or what your bills are so they certainly aren’t going to pay you more just because your lifestyle requires it) it is important to know what you need to be charging in order to meet your personal financial obligations.  Once you know this number go back to step #1 in this article to see if your pricing number is in line with the general market.  Don’t charge more just because you need more to live.  Clients can smell that from a mile away and it’s a big turn off. 

Key Takeaway:
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Pricing should be based solely on the value you provide.  Your consulting price should have flexibility built into it while keeping in mind the difficulty of the work being performed.  Ensure you know how the marketplace is operating and what others are charging for similar services so you can be competitive with your offering.

Action Item:

Meet 3-5 people in the consulting space which is similar in nature to yours.  Learn about their offerings, how they go about pricing their service and what challenges they’ve had with clients specific to pricing.  The more you can learn from them ahead of your own efforts the better off you’ll be when it comes time to present your price in front of a potential customer.
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​It’s common to think “I don’t have the job title which warrants me to be a leader”.
 
Early in my career I struggled with this exact mindset challenge.  I thought “if I don’t have a title which gives me the power to lead, how and why would anyone listen to me in the first place”.  This mindset is especially true and often found with people who are in individual contributor roles.  We use the excuse “I don’t have the title to lead” as our justification for not stepping up to taking action, even in times when we know it’s what is needed.
 
I was well into the third year of my career when a senior partner in our office pulled me aside and gave me some much needed advice.  Let’s put it this way, it was a thump on the head in a caring way.  What he said was simple, yet incredibly eye opening:
 
“Your job title doesn’t give you permission to lead or make you a good leader people will respect, it’s more about your ability to help others achieve their goals while having their backs.  We can lead from any role in the company, there’s no need to wait to be told you can lead or given a title which means people have to listen to you.  So, why are you waiting?”
 
Urghhh, he had a point, even though in the moment my ego still wasn’t allowing me to hear it.  After a couple days of digesting this feedback I had to admit I felt pretty dumb about the way I was thinking about leadership and my role within the company.  I had to get over my ego and the thought that I needed a title to justify my ability to lead when the reality was, and still is, good leaders are those who take action and help others.  They listen, guide and influence because they’re passionate about helping others, first.  This in turns builds trust, respect and comradery – these are the building blocks and keys to being a good leader.  Titles aside, those who can build trust with their colleagues gain respect which leads to healthier interactions.  These things are possible and certainly most achievable even if your job title doesn’t reflect management.
 
Whether you have the leadership job title or not what’s important are your actions and the intent behind why you do them.  Follow these steps to help guide you down the path of leading successfully:
 
1.Let Go of Fear – the basis for our lack of leadership is fear; fear we won’t do it right, fear people will reject us, fear we’ll look stupid in the process, etc.; once we acknowledge fear is what holds us back from doing what we know is right or what we want we then can go about changing our perspective to improve the situation

2.Build the Foundation - for what successful leadership is by reading “The Go-Giver” by Bob Burg and John David Mann

3.Reflect - on who you are as a person, professional, peer and employee of your company
a.What skill sets or areas of influence do you possess which you could use to positive impact, support or mentor others within the organization

4.Channel Your Vulnerability – good leaders understand this truth, to be trusted as a leader we must be vulnerable.  This doesn’t mean crying because the creamer when bad and ruined your coffee, it means being honest and open with your intent, your struggles and perspectives to help people see who you really are.  No leader is perfect.

5.Be a Coach – listen and guide as this is the pathway to good leadership; like the old proverb says “give a man a fish and they will eat for a day, teach a man to fish and you feed him for a lifetime”

6.Act - start small and pick one person or department you believe you can positively impact; talk with that person or department to share with them your ideas and why you believe this would be of value to them, get their buy in before moving forward

7.Inform Management - Share with your manager the idea you have to help support and mentor others within the company,  .Be prepared to provide specifics on how this could positively impact the company

8.Consistency - implement a schedule you and your new mentee can follow which keeps you on track helping them achieve their goals, key thing here is to keep it natural don’t overdue it with processes and procedures