When change fails it is because of two reasons, politics or disconnected strategy.
And the second is often because of the first so now we are down to one reason.
A good experienced high level CM consultant is intensely focused on the end state. So when politics get in the way of that path they will address, mediate, argue through, dialogue and debate to keep the change momentum moving forward. In fact when they are really good they are ahead of the politics (but maybe that is another post). They have been there before in many places on different occasions (which would probably not look too good on an internal resume). It is much easier to contract with them. And much easier to let them go (which is why the good ones at first glance seem expensive-it is a very risky role-when done correctly). As a senior executive client you will have someone who will go where you can’t, won’t or hesitate to go in your organization. In my case that also means pointing out operational improvements and savings which covers that above “expensive” and often pays for the role and then some.
An internal CM consultant on the other hand must play the politics of evaluation, performance and reward. Strike one. They are also never, in my experience, placed high enough in the organization to have the needed credibility, leverage and, well political pull that is required of large scale change. Strike two. And because the politics (there it is again) of compensation typically requires a trail of deliverables (many that would never pass my “Why?” test) they will spend an inordinate amount of time creating tools, assessment, evaluations etc. Expensive-strike three.
OK. Self serving and harsh. Guilty I am.
So how about both?
You can cover the external cost by using a value-based-tied-to-business objectives contract. And you can leverage the external to develop internal competencies (an ethical consultant will insist on this, any firm that is focused on revenue and footprints will not, sorry to insinuate that is unethical, but, well,…). You now have a resource to use to build future capabilities internally. Short engagements, retainers, help with individual projects from the external can be a cost effective way to address development later without having the in house expense.
The advantages of internal CM consultants. Only fair, right?
- They are deliverable based
- They are good at politics in the middle of the organization
- In the short run they can be cheaper
- They have loyalty to the organization (you hope) for the motivation of others
And finally a third option-
Use an external for an upcoming large scale change, build a change management entity concurrently and take advantage of the positives of both while successfully completing a “pilot” change initiative. And walk away with a structure that can be used again for the next corporate strategy implementation.