As an executive, you need to keep your companies crown jewels in house, or risk giving your companies secrets to consultants.
Consultancies are never the long term answer
The quickest way to get some traction on your Agile transformation is to bring in one of the big four consultancies. And bring in 30 people from the firm to ‘work with your teams’
That's what I used to think 15 years ago when I was commissioning consultancies to do work for my employer.
Turns out I was getting a short-term gain for long-term pain.
The critical lesson I learned was
There is only one place to keep your company’s crown jewels. That’s inside your company, not in the hands of a consultancy.
Picture this: Your company is facing a new challenge, and as a C-suite executive, you're tasked with finding the best solution to overcome it. You've heard much about the benefits of agile methodologies and transformational leadership, but your organization hasn't yet mastered these skills. The idea of hiring an external consultancy seems tempting, as they promise quick and effective results. However, before making a decision, let's have a chat about the risks of relying on external consultancies for your company's agile and transformational mastery.
I realized that for an agile transformation, having in-house Coaches and Scrum Masters and having in-house Product and Portfolio Managers all tunes to the new ways of working is essential for the long term.
I suggest lots of leaders start with the intention of getting the big four consultancies to exit. Let’s just put it politely - that is not the consultancies intention. Their intention is always to land and expand.
There are four things to juggle in your strategic thinking :
Short-term gains vs. long-term dependency
Loss of control over the company's transformation process
Potential for misalignment between the company's culture and the consultancy's approach
Costs that grow faster than the knotweed in your garden (that’s very fast, BTW)
Let's look at each of these for a moment or two :
Short-term gains vs long-term dependency
It's true that external consultancies can provide valuable expertise, especially if your company is new to the world of agile and transformation. They can offer a fresh perspective and tried-and-tested methods to help you navigate the initial stages of the transformation process. However, it's essential to understand that these short-term gains can come at the cost of long-term dependency.
Think of it like learning to ride a bike. If you always have someone holding the bike for you, you might feel more secure, but you'll never learn to balance on your own. Similarly, relying too much on external consultancies can hinder your organization's ability to independently develop its agile and transformational capabilities. The more you depend on them, the less likely it is that your organization will become self-sufficient in these areas.
Loss of control over the company's transformation process
By outsourcing your organisation's agile and transformational aspects, you're effectively handing over the reins of your company's future to an external party. While this might not seem like a big deal initially, it can have significant repercussions down the line. Your company's unique culture, values, and strategic goals may not align perfectly with the external consultancy's approach, leading to clashes and misunderstandings that could derail the entire transformation process.
Moreover, the long-term success of any transformation depends on your organization's ability to adapt and evolve in response to new challenges and opportunities. If your company's agile and transformational expertise lies outside its walls, it becomes much harder to make those critical pivots and adjustments when they're needed most.
Potential for misalignment between the company's culture and the consultancy's approach
Every organization has its own unique culture and way of doing things. When you bring in an external consultancy, there's always the risk of a culture clash, which could undermine the success of the transformation process. The consultancy may have a one-size-fits-all approach that doesn't gel with your organization's culture, values, or needs.
For example, a consultancy that emphasizes top-down decision-making may struggle to integrate its approach within a company that values decentralized, employee-driven innovation. This disconnect could lead to resistance from your employees, who might feel that their voices are not being heard or that the changes being implemented don't align with the organization's identity.
To avoid these pitfalls and ensure that the transformation process reflects your organization's unique character, it's crucial to develop in-house agile and transformational mastery skills. This way, you can be confident that the changes being implemented are a good fit for your company, and you can address any potential cultural clashes head-on.
Costs
Now, let's address the elephant in the room: cost. Engaging external consultancies for your company's agile and transformational needs can be expensive. While it's true that you might see quick results, these short-term gains might not justify the long-term financial investment. Moreover, if your company becomes dependent on external consultancies for its transformation initiatives, you'll likely incur even more significant costs over time. By contrast, investing in building your organization's agile and transformational capabilities in-house can be a more cost-effective approach in the long run, as you'll be equipping your company with the skills and expertise needed to handle future challenges independently.
The Way Forward
So, how can your organization break free from the risks associated with external consultancies and start building its in-house agile and transformational mastery? The first step is recognizing that this journey won't be quick or easy. Building a strong foundation for agile and transformational capabilities requires time, commitment, and investment. However, the potential benefits of developing these skills in-house far outweigh the risks and costs associated with relying on external consultancies.
To begin, fostering a culture of continuous learning and improvement within your organization is essential. Encourage your employees to embrace new ideas, take risks, and learn from their mistakes. This mindset can help your company become more resilient and adaptable, allowing it to navigate the ever-changing business landscape more effectively.
So how do you force your company’s long-term objective of building your own crown jewels into the transformation roadmap?
The answer is to develop your factories.
A Coaching Factory and a Product Owner Factory would be my first two to set up
Yes, I mean a factory.
Create an internal factory with learning and development paths, training, certification etc., that produces xx coaches per year. (xx is your figure dependent on the size of the company and the speed of transformation needed.)
Let’s assume you determine that you need 40 coaches for the agile transformation of your company at peak and then ten ongoing, and you have three. Not enough, but you have to get on with it.
You 'buy in' 35 coaches to help with the move, but at the same time, set up a factory in your company that produces at least ten coaches a year minimum from internal candidates who can transfer to the new skill set.
If you want to know more, I'll be writing more about this in my next piece. Subscribe to my writing to see the next post: Developing your Coaching Factory