Five Steps to Becoming a First-Rate Business Consultant¹

Marion Gindes, Ph.D.

I am going to start with a radical statement for the Independent Practitioner. Managed care has done a great service for the independent practice of psychology. The abuses of managed care and its interference with how we serve our clients have motivated us to look outside traditional clinical practice. We have looked to other ways that we can use our knowledge, skill, and experience to benefit people. What many of us have found is that we can work outside of our private offices, in settings that are not psychological, and with people who would never seek psychotherapy but whose lives we can improve though our work.

Business consulting is one avenue for expanding your practice beyond psychotherapy or other traditional clinical roles. In this article, I describe five steps to becoming a business consultant. First, however, let's start with some background on the world of business and business consulting.

Background of Business Consulting

Psychological business consulting has been an accepted professional activity within psychology for many years. Business consultants come from industrial/organizational, clinical, counseling, and other specialties within psychology. One international consulting firm primarily hires psychologists with degrees in clinical psychology.

Within the last several years, business consulting has become increasingly popular. Some of the reasons for this change can be found in transformations in the nature of the workplace as well as shifts in social attitudes. Downsizing, which was a nonexistent term twenty years ago, has become an accepted and expected practice within the corporate world. The increasing complexity of life, in general, and work life, in particular, as well as the proliferation of technology have contributed to qualitative changes in the workplace. These changes are not necessarily good. Employee layoffs, particularly in good economic times, result in increased anxiety and anger, even for the survivors of the layoff. The implicit understanding between employee and employer that if you worked hard, did a good job, and the company prospered, you would be rewarded with job security, good pay, and good benefits no longer exists (Gindes, 1995). Employee loyalty and company loyalty to employees are now historical concepts. No one thinks any longer that he or she is going to work for IBM from graduation until retirement.

In addition, changes in societal attitudes, reinforced by legislation and judicial rulings, have had a marked effect on workplace cultures. In the past, many companies had explicit or implicit policies that supported or encouraged behavior now considered unacceptable. For instance, the practice of favoring the promotion of whites over racial minorities was accepted as the status quo. In one early sexual harassment case, the plaintiff said that she took for granted that she would have to have sexual relations with the boss. These practices and policies are no longer tolerated or accepted and have resulted in more frequent litigation by employees against employers. Furthermore, the business world (including for profit and not-for-profit) has become more aware of the heightened potential for violence in the workplace as well as the impact that domestic violence has on the victim, co-workers, and company. These changes affect productivity, morale, and organizational effectiveness and increase the need for consultants to help people, at all levels, function better and experience greater satisfaction at work. These are a sampling of the types of issues where psychologists can play important roles as business consultants.

What is Business Consulting?

Business consulting is the application of psychological principles and techniques to issues arising in an organizational or business setting. As psychologists, we rely on these principles and techniques when we provide services in organizational settings. According to Louis Perrott (1998), "The starting point for business psychology services is identifying and satisfying perceived needs in work situations where psychological knowledge and skills can provide the basis for creating people solutions for business problems." (p. 31) Building on this statement, I identify the goal of business consultants as "generating people solutions for those people problems that result in business problems" (Gindes, 1999a).

How can a trained clinician transform him or herself from a clinical practitioner into a business consultant?

The Five Steps You Need to Take

Step 1: Embrace a new mind set. You now have to think of yourself as a businessperson, something you probably never learned in graduate school or thought about as a practicing clinician. Many psychologists do not like to think of themselves as running a business. They think that it is contrary to being a helping professional. This is not true. We can act like business people and still help people. These two are not incompatible.

Thinking of yourself as a businessperson can dispel many psychological barriers that stand in the way of success. You can now take the steps that every business needs to take. For example, in business, it is a given that you need to spend money to start a business. Hire specialists to advise you about legal issues and tax consequences. Hire assistants to do those tasks that you do not need to do. You should buy the necessary equipment, if you do not already have it. A fax machine that is on all the time, for instance, is essential. It may seem like a little thing but no corporate executive or secretary is going to call you to ask if you would turn on your fax machine.

While you do not have to attempt to look like a bigger company, it is necessary to appear like a business, not a therapy practice. If you have a home office, don't tell people that you will be working at home on Thursday. Instead, tell them that you will be working in your Larchmont office. While some of this may sound trivial, treating your work as a formal business conveys to your clients or potential clients that you take your work seriously.

In contrast to most clinical practices, a consulting practice does not necessarily take place in your private office. Becoming a business consultant also requires you to get out of your office. Much of the work of business consulting is conducted "on-site," at the client's place of business, or "off-site," at a neutral place, such as a hotel or conference center.

Many advisors recommend that every business should have a business plan. Writing a business plan can be a daunting task, especially if you are in the very beginnings of thinking about a new business. If you are not ready to write a formal business plan, at the very least, write down your immediate goals and where you would like to be in two years. Remember, what you write down can and will be changed as you learn more about your new business.

2. Learn all you can about the business world.

What you need to learn. In order to consult successfully in organizations, you have to understand how they are structured, how they function, what motivates the leaders, and what are the concerns of the people in organizations. The term "organization" is used to include all types of organized entities that have a structure, purpose, and constituents. In that sense, a street gang, although not our focus, is an organization. The terms "business consulting" and "organizational consulting" are used interchangeably in this paper.

Most companies are hierarchical, although the flattened organization (more equitable distribution of authority) has made some inroads. The more hierarchically structured the organization, the more slowly it may act. In practical terms, it may take two years from the time you initiate a contact with a company and when you are actually hired as a consultant. In addition, businesses focus on the bottom line and, like the people within them, resist change.

The various features are not necessarily the same for all organizations or across different types of organizations, such as Fortune 500 companies, professional firms, not-for-profit organizations, educational institutions, and trade associations. What motivates the organizational leaders, for instance, clearly differs between not-for-profit and Fortune 500 companies.

Prevailing norms and cultures also differ greatly among companies. Some factors that both shape and reflect the culture include degree of formality, whether the company is traditional or non-traditional in structure and reporting relationships, the dress code, whether the senior executives have an open door policy, and whether the company is family-, minority-, and female- friendly. You can choose to concentrate on industries that are more likely to share a particular type of culture and avoid others. One corporate consultant told me that he cannot work with lawyers and so does not consult with law firms. In contrast, I enjoy working with lawyers. Before meeting with a representative from a company, you should find out about the dominant culture. One of my client companies had recently introduced a casual summer and casual Friday policy against the wishes of the conservative CEO. In consulting with the CEO, it was important for me to know that he did not share the same view as the other executives and employees.

How you can learn.

Start reading. Read the Wall Street Journal, the Business Section of a major newspaper, business magazines, such as Forbes, Fortune, and the current popular business books. The New York Times even has a best seller list for those books. As you read, you will begin to identify the trends, the language, and the concerns of the business community. Don't limit yourself to United States business news. We are a global community now.

If you have narrowed your focus to a particular industry, find the trade magazines or newsletters from those companies and go to the websites of the companies or the trade organization. For instance, if you are thinking about working with insurance agents, go to websites of some of the big insurance companies. You will not only find information about that company, but it will probably give you links to insurance-related sites.

Take courses. Enroll in a course or take a workshop on business or business consultation. You can do this through a local university, professional organizations, or from individual experts in the field. Many courses are now offered virtually (via the telephone and email) which reduces your costs in time and money.

Join professional organizations. Most psychologists belong to psychological associations. If you are seriously interested in becoming a business consultant, you need to join associations that focus on business and/or consulting, such as the Organization Development Network and the Society for Human Resources Management. These organizations will include people from business as well as independent consultants from professions other than psychology. It is important to join the local or regional chapter as well as the national one. When you are starting out, your work will most likely come from the people you know and the people you meet.

Within psychology, consider joining the APA Divisions of Consulting Psychology and of Industrial/Organizational Psychology. In addition, you may want to join the list servers for various organizations.

An important note to remember: No one reads everything or joins every organization. Start gradually and focus on those resources most relevant to your goals. If you are not clear on your goals, start anyway.

3. Conduct a Two-Phase Self-Assessment

To many clinicians who have had psychotherapy practices, the idea of consulting to big name corporations has a certain panache to it and often stirs fantasies of large consulting fees. In spite of the appeal of being able to say that Citigroup is your client, business consulting is not for everyone and not every type of consulting appeals to every consultant. The end goal of the two-phase self-assessment is to determine the best fit between your own skills, interests, experience, and talent and the various business consulting opportunities. One possibility, of course, is that you may decide to extend your practice in an entirely different direction.

First Phase: Assessment of Personal and Professional Attributes. In order to do this, you need to ask yourself the following questions:

• What am I good at doing?
• What do I enjoy doing the most?
• What am I most comfortable doing?
• How do I want to spend my time?

You may discover that your special talent resides in discerning problems that others may not see and you get energized when you help them see the problems and find solutions. You may also discover that, although you are very good at some professional activities, you do not derive much satisfaction from them. You may know that you prefer working one-on-one rather than in a small or large group setting. Through this type of self-exploration, you can design the ideal setting and type of activity for you, one that will allow you to do what you do best and brings the greatest satisfaction and success. It also serves as a natural way to narrow the possibilities facing you.

Second Phase: Assessment of Consulting Possibilities. The same model that can be used to analyze a consulting situation can be used to help the consultant identify his or her unique niche. You can use the different dimensions of the consulting process to focus further the opportunities that fit you best.

a. Levels of consultations: Consultation can take place on the individual, interpersonal (group or team), or organizational (system) level. Any form of consultation, even individual coaching, constitutes an intervention into the organizational system. While the ideal situation involves an intervention that results in change on all three levels, much consulting work focuses on one of the three levels. Sometimes, the company, itself, restricts the level of consultation. Sometimes, the consultant specializes or prefers to work on one of the levels. As part of your continuing self-assessment, you need to examine your preference and effectiveness in working with individuals, groups, or organizational systems.

b. Mode of Consultation: As electronic technology advances, consulting practices are occurring more and more through distance media rather than in-person. In narrowing your focus, you can choose to concentrate on in-person, distance, or both modes. Distance media generally include use of email, telephone, print, and, to a lesser degree at this point, videoconferencing.

c. Types of Interventions or Techniques: A business consultant can engage in many different types of activities, ranging from analyzing interview data or observations from focus groups to resolving conflict within a work team. As before, it is important to consider which activities best fit with your strengths and preferences. Some of these activities are listed below:

• Assessment of organizational problems and design of solutions for change via surveys, interviews with key personnel, on-site observations
• Delivery of programs on particular topics, such as sexual harassment, communication, conflict
• Individual coaching, such as executive coaching, topic-centered coaching (See Gindes, 1999b.)
• Assessment of individuals for selection, advancement

d. Issues and topics: Consultants also address many different issues that are of concern in the workplace. Some of these are leadership, communication problems, succession planning, executive development, work/life balance, and strategic planning. Some consultants choose to specialize in only a few areas.

The key in conducting your self-assessment is to find some specialty that flows naturally and easily from your skills, interests, talents, and experience. For example, if you are particularly good at working with groups and enjoy doing it, then team building might be a natural avenue for you to explore within business consulting. Alternatively, you might decide that you prefer working face-to-face in small companies or helping family businesses resolve succession conflicts. Although you may consider this your specialty, you also need to be prepared to address other issues as they arise during your consultation.

4. Adapt the skills you have and learn the skills you do not have

Consulting experts have identified specialized knowledge, interpersonal skills, diagnostic ability, problem-solving skills, communication skills, marketing, and selling ability as central to being a successful consultant (Block, 1981; Metzger, 1993; Perrott, 1999). Trained clinicians are already skilled in data gathering and interviewing techniques; specialized knowledge regarding personality development, group dynamics, and resistance to change; interpersonal skills, such as listening; interpreting, following the client's lead, and helping the client clarify issues, and more. While these skills and knowledge of human behavior are extremely useful, fine tuning is necessary to adapt them to the new context of working with a non-patient population in the business setting. In addition to learning about the business world, psychologists need to learn to speak in plain English. Corporate people are already concerned that every psychologist is a "shrink" and is trying to "psychoanalyze" them. Using psychological jargon reinforces that view and also interferes with communication. Use concrete examples when making a point. It is also useful to learn about the techniques that are popular in the business world, such as 360 ^o feedback and the Myers-Briggs. Some people are so enamored of the Myers-Briggs that they refer to others by their four-letter type.

5. Marketing and Networking  

Lack of marketing has been identified as one of the major reasons for failure as a consultant in any field (Gould, 1987). Because professionals, such as psychologists or lawyers have only themselves to market, marketing can be very awkward for them. In order to market effectively, you have to believe in the quality of your service, believe that the client needs and would benefit from your service, and, most important, believe that you are worth more than the fee you are charging.

No one can hire you as a consultant if your business is a secret. You have to get the information to your potential clients.

A few TIPS for getting the word out:

• Go where your potential clients are, such as the Rotary Club, Chamber of Commerce, professional or trade meetings
  
• Don't be a butterfly, flitting from one group to another. Get involved in a select number of organizations so people get to know you.
  
• Always be prepared to tell people what you do in 30 seconds. Be clear, succinct, and precise. "I help start-up companies in the technology field succeed." is better than "I consult to start-up companies."
  
• Two of the most important words to remember are "Follow up." It is not enough to have one contact with a potential client. Keep in touch periodically, by sending them a relevant newspaper clipping or a copy of an article you have written.
  
• Set aside a specific number of hours each week for business development, no matter how busy you are. If you do not get new business, you will not have a business. It is very easy to slip into believing that someone else's need is your crisis.

Conclusion

Remember this shorthand for what it takes to be successful:

The THREE T'S: TIMING, TENACITY, TALENT

TIMING. It is true that you have to be in the right place at the right time but you do not have to leave it to chance. For instance, one of my specialties is sexual harassment in the workplace. In June 1998, the Supreme Court issued three significant rulings about sexual harassment. Within two weeks, I sent a mailing, consisting of a letter relating to the rulings and a previously published article I had written about sexual harassment policies in the workplace. 

TENACITY. The following story is told about Thomas Edison. When someone noted that he had failed in 25,000 attempts to develop the storage battery, he responded, "No, I didn't. I discovered 24,999 ways that the storage battery doesn't work." (Jensen, p. 5) The morale of this story is to keep going and do not allow the lack of immediate success discourage you.

TALENT: Your bottom line is always whether or not you deliver what you promised. You have to be good to get referrals and return business. Before you go out into the competitive world of consulting, be sure you are prepared to be first-rate.

References

Block, P. (1981). Flawless consulting: A guide to getting your expertise used. San Francisco, CA: Jossey-Bass/Pfeiffer.

Gindes, M. (1995, November 27). Understanding the new realities in employer-employee relations. Westchester County Business Journal, 33.

Gindes, M. (1999a, Summer). Consulting to Business on Workplace Behavior: Discrimination, Harassment, and Conflict. Guide published by the Independent Practice Division of the American Psychological Association.

Gindes, M. (1999b, Summer). Topic-centered coaching for sexual harassment and other inappropriate workplace behavior. The Independent Practitioner, 19, 124-127.

Gould, C. (1987, January 11). Making the grade as a consultant. The New York Times.

Jensen, Marlene. (1987). Women who want to be boss. Garden City, NY: Doubleday.

Metzger, R. O. (1993). Developing a consulting practice. Newbury Park, CA: Sage Publications

Perrott, Louis A. (1998a). Business Psychology: A New Specialty. The Independent Practitioner, 18, (1), 30-33.

Perrott, Louis A. (1999). Reinventing your practice as a business psychologist. San Francisco, CA: Jossey-Bass

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