Your company has decided to select a new enterprise information system, and they’ve asked you to lead the selection project. As you reach for your aspirin bottle, you wonder how you’re ever going to handle your day-to-day workload while managing the selection and implementation of a new system. Sure you can hire new staff, but what will you do with the extra people when the project is over and everything is  "back to normal."

Like many companies, you can hire a consulting firm. With their wealth of experience and in-depth knowledge, good consultants are up to speed on the latest technologies as well as the benefits and drawbacks of software solutions for your industry. Best of all, most consultants are happy to pack their bags when the job is over, saving you the long-term expense of hiring permanent staff.

Before you begin shopping for a consulting partner, you should first identify your objectives and budget. What outcomes are you expecting from a consulting firm? How will you know when the project is complete? What criteria will you use for evaluating the consultants’ work?

Once you’ve answered these questions, prepare a written scope document that includes an overview of the goals you want to accomplish along with a realistic timetable. Be sure to ask for input from your colleagues so that everyone affected by the new system "buys in" to the project.

One of the main reasons relationships with consultants fail is because the goals of the project were not determined in advance or communicated clearly. Be sure to put your goals in writing, and provide this project description to the consultants from whom you request proposals.

Once you’ve defined your goals and objectives, it’s time to establish a budget for the consulting project. How much can your organization afford to spend? Consulting fees can range from $80 to $250 per hour and beyond, depending on the scope of the project and expertise required. If you’re considering out-of-town firms, be sure to also figure in travel and lodging expenses.

Now that you’ve defined the parameters of the project, you’re ready to search for a consulting firm. You can choose from a wide range of firms--from the "Big 5" to small "boutique" firms that offer very specialized services. In general, small "boutique" firms can offer more focused services, whereas larger firms tend to be more expensive, but may also be more flexible in scheduling your engagement.

Knowledge and experience in your industry is a must. No matter what your reason for engaging consultants, you’ll want to find someone who is knowledgeable about your business processes and the unique aspects of your industry. If the consultants can’t "speak your language," it will not only be difficult for them to understand your needs, you’ll also find yourself spending valuable time educating them about your business. In addition, the firm will not be able to provide ideas on innovative practices used by others in your field to make their businesses more successful.

The best way to find a firm with a proven track record in your industry is by word of mouth. Contact your colleagues in organizations of similar size and function, and ask for names of firms they‘ve used with success. Professional organizations are another good resource.

You may also consider asking the opinion of companies that provide you with services. For example, if you’re looking for help in redesigning your financial department’s processes, ask your accountants to recommend a good consulting firm. If your project is a computer system implementation, ask the vendor you’ve selected for names of several firms familiar with their software package. Keep in mind that your sources will have their own biases, so be sure to research ALL potential firms before making a final selection, regardless of where you obtain your recommendations.

If you’re unable to find references within your own circle of contacts, many other resources can help you identify candidate firms. Industry publications often include articles written by consultants. Scan these magazines and newsletters for articles related to your project. If the consultant’s views and opinions are similar to yours, you may have found a good candidate. These publications may also include advertisements for firms specializing in your industry.

Another great resource is the Internet. Start by looking at sites listing service providers, such as the Information Technology Yellow Pages http://www.olcsoft.com/yellowpage.htm for information technology projects. You can also search for sites that contain articles and advertisements that may help you identify potential firms. Many sites offer the ability to e-mail contacts at their website--use these to request information on firms specializing in your industry.

Once you’ve narrowed down a list of candidate firms, you’re ready to conduct pre-proposal meetings to clarify project objectives and questions with interested consultants. The project scope document you’ve created should be forwarded to these firms several days before your interviews to allow them to become familiar with your goals.

You should interview at least two prospective consultants--even if you’ve already identified a probable candidate for the job. Talking in depth with consultants from different backgrounds, who may have different approaches or techniques, will help you better understand the problems you are tackling and identify practical solutions.

During the interviews, make certain you ask each candidate the same questions so that you can establish a fair standard for comparison. Some questions to ask include:

How long have you been in business?

What types of projects/issues are your specialty?

What markets do you serve?

How do you measure success?

What resources are available to you for completion of the project (staff, sub-contractors, etc.)?

Can you meet the time schedule?

What communication tools do you use to inform your clients of the project status?

How do you charge (per hour, per day, per project)?

What are your billing rates?

What types of expenses do you require reimbursement for?

Do you require a deposit?

Do you guarantee value added outcomes?

Be sure to also request samples of the firm’s work as well as a client list with names and phone numbers of references.

Based on the consulting firm’s responses to your questions, you should get a feel for how they operate. Consulting engagements should complement your operations, not assume control of them. Do the consultants listen to your needs, or do they tell you what your needs are? Good consultants will educate your managers and enhance their skills. Does the firm want to "come in and do it all" or work with your staff to train and educate them?

In addition, the consultants you hire should perform the work as efficiently and cost-effectively as possible. Make sure the firm does not view your company as an open pocketbook.

Finally, the consultants you hire should offer innovative solutions to your problems. Do they ask creative questions about the project? Have they provided you with some information or insights you had not previously considered?

After your interviews are complete, narrow down the field to two or three candidates (if you’ve interviewed more) and request written proposals. The consultants’ proposals should include the following items:

A summary of the work to be performed

Deliverables included in each step of the project

Timeline for completion

Billing rates and payment schedule

Resumes or profiles of the actual consultants who will perform the work

As you evaluate the proposals, balance the importance of quality and experience with the budget for the project. While all companies would like to contract with the "cream of the crop," it’s not always feasible with the allotted budget. Try to find the best option you can afford with the money available. If the experience you require cannot be found within the project budget, you may have to redefine the scope of your project or increase your budget.

Based on the information you’ve collected, it’s time to select the consultants you’d like to work with. As you choose your preferred vendor, also select a "runner-up" who would be a viable alternative. If the first choice consultants don’t pass your reference checks, you can immediately begin the process with the second choice firm.

As part of the evaluation of your finalist consulting firm, be sure to check references. It's the only way to distinguish between accomplished professionals with a track record of genuine success and a firm that merely interviews well. Ask your prospective consulting firm for a complete list of recent clients, and choose from this list rather than the two or three names they might otherwise provide.

When contacting references, look for organizations similar to yours or who have worked with the consultant on problems related to the ones you now face. Your goal is to elicit candid information from the person you’re talking to. Shy away from "yes or no" type questions--instead, ask open-ended questions about the scope of the engagement and the quality of the services provided.

Next, meet the individual consultant(s) who will be assigned to your engagement. Through the course of the project, the consultants assigned to work with you will be spending a great deal of time with you and your staff. Personal chemistry and a working style that blends well with your organization are vital to the success of the project. Also, be sure you feel comfortable sharing confidential company information with these individuals.

Your consultants should have qualities similar to those you would expect of professional staff members, including expert knowledge in the subject area of the project, experience with projects similar to yours, and a respected track record with other clients. If you feel the consultants are lacking in any of these areas, contact the firm about assigning other consultants to your project--or consider contracting with a different firm.

Signing the contract, of course.

Most consulting firms have a standard engagement contract format which they use for all clients. You should make sure that your contract includes:

A list of deliverables

A projected completion date

A schedule for payment

Checkpoints along the way at which the client and the consultant can evaluate progress and resolve any problems that may have arisen

A mechanism by which either party can terminate the contract before it is completed

Identification of the person in your organization who has the authority to agree to expenditures or approve the consultant's work

A method for resolving disputes

The consultant’s original proposal, which should have included many of these items, may be included as an appendix to the contract. This ensures that the firm is contractually liable to deliver on the promises made in the proposal.

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