There’s no doubt about it…things are tough economically all around.  It’s looking up a bit from the 2008-2011 timeframe, but not enough yet to really call it a turnaround.  This article is targeted towards all of you project management consultants out there who are hiring on to manage projects and then subcontracting some work out to other consultants.  I’m saying beware of how you conduct business in these economic times…not everyone is working in your best interest.

Right now, there are experienced consultants out there leveraging whatever clients they've managed to retain and out of work IT personnel suddenly becoming consultants overnight.  I'm not saying it's a bad thing. 

However, it does change the dynamics a bit and it changes the consulting landscape a lot.

Experienced consultants beware

The interesting twist that situations like this can sometimes bring about is what I like to call client poaching. New consultants began to contact existing project management consultants looking to partner or collaborate on project engagements. Sometimes these are legitimate offers of new consultants looking to offer their time cheaply in return for good experience on real projects. Other times this is nearly scandalous where new consultants are trying to obtain your prices and client list so they can underbid you and take clients away from you now and in the future.

How do you tell which type you're being contacted by? Unless you are an excellent reader of character and intent, it's better to not just trust your instincts on this...I have and it's not always served me well. It's far better to follow a few steps and then step back and assess the situation.

1. Have them sign an NDA

If they show any hesitation to signing anything then you don't need them...run away. Ask them to sign a non-disclosure agreement and any other similar paperwork you like to have signed to protect your clients and your intellectual property.

2. Check their online presence

Check their website. Search for them on internet sites, postings and social media sites like Facebook, Twitter, and LinkedIn. Do they have a good presence? Are there questionable postings?

3. Ask for a client list

If this consultant has never done any consulting or project management work before, ask yourself what they are really bringing to the engagement. Now if they have a specialty that you need, then by all means continue on.

4. Figure out what they can add to your engagement

If their effort brings in $5k and your effort brings in $20k, and together your efforts still only bring in $25k, then there’s no use adding them to the engagement. If they don’t add income to your project management engagement exponentially, then there’s no reason to add them and you should likely question their motives.

5. Are they overly inquisitive of your consulting practice?

Does this consultant who wishes to collaborate with you ask too many questions? Does it seem they want to know anything and everything about what you do, how you got to where you are now, and how you serve this and other clients? If you’re uncomfortable with where the questioning is going, then you probably have good reason to be. There are only so many clients out there who are willing to part with their money right now and they may be trying to take from you what you have.

6. Are they bypassing you and spending too much time with the client

This is one for after the engagement is underway or after the new consultant is already assisting you. It’s not a good sign if it seems that they are beginning to go around you to work directly with the client whenever possible. They may be trying to negotiate separately with the client for cheaper options to jump ship with them. This is not a consultant you’ve had a long relationship with so they are not your friend. Be wary from the start and shut it down if you see any questionable behavior exhibited with the client. And above all, make sure you have an easy out on the contract before you make things official. This will give you a chance to cut them from the project if you are concerned with their motives or actions.

Summary

Ultimately, you’ll have to trust your gut somewhat because this list won’t necessarily weed anyone out…but it should at least give you more information for your decision-making process. Remember, if it looks like a dog, smells like a dog, and barks like a dog…it’s probably a dog. Find out what you can and fill in the rest with your experienced instinct and act accordingly in the best interest of your consulting practice as well as your client.