The opposite of this- hourly, full time and third party- is what I consider another disturbing trend in change management (and some consulting roles in other disciplines).
High level consulting especially change management since it deals so closely with business/human nature requires a strong, trusting relationship. It is essential that the true owner, the one with the budget and ultimate responsibility for the change and the consultant agree on and work together toward shared business goals. To insert a third party breaks this connection. Direct.
The owner must know that the consultant will be available throughout the engagement. The consultant must feel comfortable in knowing that they will be connected to the engagement long enough to effect the change. Without that security the consultant will operate with urgency detrimental to change management. Retained.
The client benefits from budgeting the consultants role into the engagement early. If the consultant offers a discount for full pay then there is a fiscal plus. This locks in that role and provides a level of budgeting security to the owner that will not come from ongoing invoicing. For the consultant it eliminates the “fear” (in quotation marks because we are all used to the fact that on a whim a client can end an engagement if our opposite scenario is the contract) that the engagement could end at any given time. Upfront.
Our opposite scenario seems to be a reaction to the Microsoft case over the vague line between employee and contractor. The reaction, unfortunately, has spilled in to the consulting ranks. For a true consultant who would be operating on a Corp-to-Corp basis hourly and full time is really not possible since no more than 80% of revenue can come from one client. And yet lately clients are retaining staffing firms (sorry but they are not consultancies by any definition) to fill very high level roles.
This, I have noticed, is an excellent way for the owner/client to insert another level of blame and responsibility not their own. Do not be that kind of client if you expect true business and people results from change. If you must use a third party, or if your company inexplicably inserts it for you, then use a fee and go to the second paragraph of this post for step two. Your initiative is too precious to do otherwise.