CHAPTER 5 Contracting Overview Flashcards
What is the primary desire of consultants regarding their clients?
To have power with clients, rather than power over clients.
What does the contracting phase of a project signify for consultants?
It is the point of maximum leverage and sets the tone for the project.
Define a contract in the context of consulting.
An explicit agreement of what the consultant and client expect from each other and how they will work together.
What is the difference between a contract and a working agreement?
A contract emphasizes the need for specific expectations in the consulting relationship.
What are the two basic elements of legal contracts applicable to consulting relationships?
- Mutual consent
- Valid consideration
What does mutual consent mean in a consulting context?
Both sides enter the agreement freely and by their own choosing.
What is valid consideration in a consulting contract?
The exchange of something of value between the consultant and the client.
List some tangible items that consultants need as part of their original contract.
- Operational partnership in the venture
- Access to people and information
- Time of people in the line organization
- Opportunity to be innovative
What are the two key behaviors for flawless contracting?
- Behave authentically
- Complete the business of the contracting phase
What should be included in the boundaries of your analysis in a contract?
A statement of the problem or possibility you are going to focus on.
What are the four general areas where you can expect to help the client?
- Solve a particular technical or business problem
- Create a new possibility for the organization
- Teach the client how to solve the problem for themselves
- Improve how the organization manages its resources
What is the purpose of having a written contract?
For clarity, not enforcement.
What should the form of a written contract be like?
Brief, direct, and almost conversational.
What is an example of a business objective in a consulting contract?
Decrease defects in the printed circuit board fabrication process by 4%.
What kind of information should a consultant specify in the contract?
Technical data, figures, work flow, attitudes of people toward the problem, and roles and responsibilities.
True or False: A consultant should avoid discussing control and vulnerability during the contracting meeting.
False.
What is one of the key consulting competencies required for contracting?
Elicit the client’s expectations of you.
Fill in the blank: A contract between a consultant and a line manager is a _______.
social contract.
What is the role of appreciation in a consultant’s contract?
It can be a form of consideration that the consultant needs.
What does it mean for a contract to have balanced consideration?
Both parties give and receive something of value.
What should a consultant do if a contracting meeting is not going well?
Discuss directly with the client why it is not going well.
What is one way to hedge against ambivalence in project contracts?
Be explicit from the start about the kind of information needed.
What types of information might be specified in a project contract?
- Technical data
- Figures
- Work flow
- Attitudes of people toward the problem
- Roles and responsibilities
Fill in the blank: ‘To complete the project, we will require daily production figures for the _______ process.’
[etching]
What is a suggested method to gather people’s attitudes towards the marketing function?
Interview at least 15 people to identify their views.
What should the marketing organization provide regarding new product decisions?
A definition of who is responsible for major decisions at each stage of the process.
What is the primary role of the consultant in a project?
To give a clear and understandable picture of plant performance.
True or False: The consultant should take full responsibility for implementing the solution.
False
What should be specified about the product delivered to the client?
The format (oral or written), length, detail, and nature of recommendations.
Fill in the blank: ‘The outcome of this project will be a detailed written description of our findings running somewhere between _______ and 15 pages.’
[5]
What is essential for the success of a consulting project?
Support and involvement from the client.
What should be included in the time schedule of a project contract?
- Starting time
- Intermediate mileposts
- Completion date
Why is confidentiality important in consulting?
To manage who receives the report and to protect the client’s interests.
What should a consultant do regarding feedback after project completion?
Ask the client to provide feedback on the impact of the project six months later.
What is the first ground rule for contracting?
The responsibility for every relationship is 50/50.
True or False: You can contract for someone else to change their feelings.
False
What should you do if clients want to renegotiate a contract midstream?
Be grateful that they are communicating their desire to renegotiate.
What is the significance of writing down contracts?
Most are broken out of neglect, not intent.
What does a good contract require?
Good faith and often accidental good fortune.
