Business is all about customers and selling. That’s why every manager and executive should be a salesperson once in his career. The skills and lessons are indispensible and difficult to learn any other way. 

Whether you manage engineers, marketing, operations, or customer service; you’re still a salesperson. You sell every day. You don’t just sell products and services; you sell your projects, budget, ideas, and capabilities. And your customers aren’t just the paying kind; they include everybody you interface with.

What Every Manager Should Learn From Sales 

A brilliant essay in the Wall Street Journal (www.wsj.com) this week entitled “How to Succeed in the Age of Going Solo” by Richard Greenwald wisely points out that while anybody can become a consultant, not everyone does it well.  He continues to prescribe what’s needed to thrive as a consultant in today’s business environment.

Some key findings from his research:

Think Long Term

Too many freelancers see their condition as only temporary—one that will go away as soon as economic conditions improve. It’s just a stage between jobs, they figure.

Some of them may be right. But the odds are that most are wrong. They’re going to be on their own for a long time. So freelancers need to think in terms of the long haul, preparing for a marathon, not a sprint.

Understand: This isn’t easy. Many of these people have known only 9-to-5 jobs, and it can be scary to think of freelancing as all there will be.  Scary, but necessary. Because if a freelancer views the condition as temporary, it’s almost a guarantee that however long it lasts, it won’t go well. Unless you think about it as a job itself—requiring time, investment, thought—you won’t get much of a return. Waiting for business to find you is not something successful consultants do. Clients know a halfhearted attempt when they see one.

Join a Network

The image many of us have of the lonely consultant toiling on his or her own is touching. And dated.

Most successful consultants are in a network or community of consultants. These networks are important sources of new clients; most consultants, in fact, say they get as many clients from these networks as they do from client referrals. What’s more, an increasing number of consultants share work, taking on bigger projects that require more hands. In this way, teams of consultants can function like a small boutique firm.

Have Your Own Space

We have long been told that one of the joys of working on your own is being able to putter around in your pajamas and bunny slippers. And such flexibility is, no doubt, an attraction of consulting.

But there’s a limit, and successful consultants say that having a work space separate from your living space is crucial. Clients do not want to have an important phone conference interrupted by a nagging two-year-old, a TV in the background or the sounds of street traffic. Most freelancers I spoke to have a space in their home that is solely for work—a bunker, as it were.

Others have started using shared spaces that provide a quiet space and a cubicle or desk to call your own. These spaces, called co-offices, often have other incentives. They give freelancers a place to go, which helps them keep schedules. They usually also provide a receptionist service, so someone always answers calls. And they provide a sense of workplace that is something many consultants complain about missing.

Think Like an Entrepreneur

Here’s probably the most important ingredient that distinguishes the most successful consultants: They think like entrepreneurs.

Too often, freelancers drift from project to project. That’s a mistake. They need to have a business plan or mission statement. If all they do is take everything that passes over the transom, they will be viewed as a nonspecialist in a world of specialists.

Consultants are known for the work that they do, and this often means the work they don’t do. With a mission statement and business plan, they can decide if a certain job is worth it. Sometimes the short-term gain in income becomes a long-term loss in reputation.

This doesn’t mean you should starve: Sometimes, any work is good. But too many consultants say yes to anything that comes along, so when the perfect project arises, they might be too busy to take it. What’s more, in this competitive world, prospective clients want to know what projects you’re working on. If they aren’t impressed, they may not hire you. So being able to say no to certain work, referring it to someone else, is a sure measure of a certain level of success.

To learn more about joining M Squared’s elite network of consultants, visit http://www.msquared.com/consultants/introduction.html

Cloud computing is changing the business IT landscape through its ability to provide scalable computing resources without the traditional technology overhead. Now, the same characteristics powering this charge—virtualization, integration, and value-added management—are poised to alter the face of business consulting.  A new cloud consulting white paper highlights the parallels between cloud computing and cloud consulting, as pioneered by M Squared Consulting, and explains how the new model is an effective alternative to the expensive, cumbersome, and outdated traditional consulting model.

In a groundbreaking article released this week, M Squared Consulting launched the innovative concept of cloud consulting™, which could transform how organizations meet their consulting needs.  “Similar to how cloud computing has forever changed the face of IT, cloud consulting will soon become the norm for skills-based delivery,” said Marion McGovern, the white paper’s author and founder & CEO of M Squared Consulting.

So what defines the “cloud” in this new model? The definitions may be as varied as the clouds they describe but the key elements remain very consistent. A cloud is built on virtual resources that are integrated, managed, and available on demand. In general, a cloud provides:

• On-demand access to a full range of resources
• No overhead infrastructure costs
• Use-driven pricing
• Reliability
• Scalability
• Flexibility
• Geographic Independence

In addition to these elements, the cloud has a unique ability to accommodate shifting business demands. By its very nature, the cloud is changeable, adapting to meet the needs of the business. By staying in step with business changes, the cloud provides greater agility and a competitive edge.

The Cloud—Remaking the Face of Consulting

Cloud consulting, as pioneered by M Squared Consulting, applies these core cloud concepts to professional services by integrating and managing virtual human capital to deliver an on-demand, cost-effective, reliable, and scalable resource system. By reflecting how human capital and intelligence resources are really employed, the consulting cloud is able to support business processes and resource demands at a cost that more closely reflects their true utilization.

It is important to note that how resources are linked and delivered defines the cloud more so than the resources themselves. For instance, in cloud computing, the resources are more commodity-like. But in cloud consulting, the resources are more specialized. In each case, it is the virtualization, integration, and management of the resources that makes the cloud a “cloud.”

Clouds on the Horizon

Today’s economic climate has forced companies to find ways to operate more cost-effectively. With fiscal pressures showing no signs of retreat, these cost concerns will continue to grow in all areas of business. And, because of its cost efficiency, so will the cloud concept.

By applying the cloud principles of virtualization, integration, and managed oversight, cloud consulting can help companies make their human capital and consulting budgets work harder and more productively.

To view or download the new Cloud Consulting whitepaper, please visit http://www.msquared.com/home/m2/Whitepapers/cloudconsulting.pdf

The cover story in the current issue of BusinessWeek entitled “The Permanent Temporary Workforce” is a fascinating read about the state of the American workforce.  The article describes the hardships faced by those affected by layoffs, and how many companies are turning to temporary help to protect profits in the economic downturn.

But in contrast to similar articles in recent years, the authors here point out that the current recession has fueled a “leadership on demand” phenomenon, meaning that many of the temporary workers are white-collar professionals, not “sneaker-footed admins”.  Many are seasoned professionals who relish the flexibility of a free-agent lifestyle.  “People with sought-after skills can earn more by jumping from assignment to assignment than they can by sticking with one company,” the authors write.

Déjà vu?

In her groundbreaking book, “A New Brand of Expertise: How Independent Consultants, Free Agents, and Interim Managers are Transforming the World of Work,” published in 2001, M Squared Consulting founder and CEO Marion McGovern tackled this very subject in some depth.

In particular, in the chapter about why many professionals choose “free agency”, Ms. McGovern’s writings are more relevant today than ever:

“Whether it is control over where they work, their hours, or their vacations, overwhelmingly it is a desire to make work fit into their lives and not vice versa.  One of our consultants of Dutch descent explained that she became an independent practitioner because she thought that American vacation structures were untenable; being used to at least six weeks of vacation annually, she couldn’t continue in the American mode of two weeks per year.  In today’s 24×7 world, time has a currency all its own.”

She continues….

“Some consultants want control over what they do, a sphere of influence that as a mere mortal in a large enterprise was beyond their reach.  At M Squared Consulting, we see this often with the alumni from large consulting firms.  Exposed to many types of industries and products, they may have been able to indentify the type of work they most enjoyed, but they may not have had the opportunity to do it again.  For these individuals, the type of work – the “what” – is most critical.

So in addition to being prescient, McGovern’s book illustrates that there are some long-term trends in place affecting American business, and the savvy consultant can take advantage of the opportunities that present themselves and thrive in today’s work environment.  And challenge, pay, and control are not the sole discretion of either the employer or employee.

With its collaborative approach, long-term relationships, and commitment to the success of both its clients and consultants, it’s no wonder that M Squared Consulting attracts top-tier professionals to its network.  To join the M Squared consultant community, please register on our website at http://www.msquared.com/consultants/join.html

A recent article highlighted four key developments that are being watched by demographers and employers alike, particularly as the economy starts to improve.   These dynamics will likely shape the growth of the flexible workforce in the next 10 years.  M Squared Consulting is tracking these trends and helping clients attain market leadership through the intelligent use of the high-end flexible workforce.

The shifts include:

1. Womenomics The book Womenomics talks about the fact that women are demanding more flexibility in their work. The authors argue that women have more power than ever to demand control over their schedules because companies that have proportionately more woman managers are also more profitable. Women want to work but gone are the days of 60-hour work weeks in the office, scrambling to find childcare and skipping the leisure time. The book offers many examples of how woman are leading this economy, and to stay competitive and profitable companies will need to offer women the flexibility they require.

    

2. Big Company AdoptionROWE stands for “results-only work environment” and is Best Buy’s workshifting program that says employees can work wherever they want, whenever they want, as long as they get their work done. An article in BusinessWeek does a great job of highlighting other results from ROWE-type initiatives.IBM has about 40% of their workforce with no official corporate office, and Sun Microsystems Inc. estimates that they saved $400 million over six years in real estate costs by letting employees work from anywhere. The biggest driver for these large organizations is usually the facilities cost when they don’t have to dedicate corporate space to each individual employee. But after implementing flexible working arrangements, companies soon also realize the benefit of higher employee job satisfaction.

   ROWE programs not only reduce costs but make for a more productive organization.

    

    

3. Gen Y Whatever you choose to call the newest generation (Gen Y, Millenials, Screenagers, etc.), they all grew up with the Internet. They’re more comfortable with technology and less accepting of corporate norms like 9-5 or suit and ties. Gen Y has been struggling at the hands of this economy but with the coming turnaround companies will have to employ flexible working arrangements in order to acquire and motivate this growing segment of the workforce.

    

4. Social Media The power and growth of social media over the last couple of years is astounding. The fact that so many of us are going to the Web to communicate and do business makes executives question traditional ways of doing business. We trust Wikipedia for information and use social media sites like Twitter to communicate as part of our jobs. This trend is only increasing and clearly demonstrates the acceptance of social media as a business communication tool.

    

As the workplace changes, savvy companies will continue to look to M Squared Consulting – and to the experts in its premier consulting network – for the strategies, programs, and human resources that will help them engage employees productively for years to come.

M Squared helps clients attain market leadership through the intelligent use of the high-end flexible workforce.  Consequently, we closely track the economic and social factors that affect working professionals.  And in the current economy, “baby boomers” (those persons born between 1944 and 1964), face particular challenges.

Prior to the economic slowdown, companies were focused on preparing for the exit of baby boomers from the workforce. While many boomers are staying on the job longer to compensate for their depleted retirement accounts, they will retire sooner or later, and talent managers need to take both those factors into account.

“You probably will see less of an impact as far as the retirement of the baby boomers than [was] originally thought,” said John H. Hudson, CEO and owner of The Growth Coach of Ventura County and author of Choosing the Right Path: Insights on the Changing Face of America’s Workforce. “I’ve talked to a number of people, and essentially they aren’t sure what they want to do in this next chapter of their lives, but they really don’t want to continue to do what they’re doing.

“The problem is if they are not able to leave the workforce on their own terms, organizations are going to have to deal with a lot of older workers who are there and don’t want to be, but are sort of held captive because of their economic situation.”

In order to re-engage boomers who were originally planning on retiring soon, Hudson suggested providing them with more free time.

“Many organizations are going more to telecommuting, part time [and] those sorts of situations - allowing people to have more free time but remain engaged and not have that brain drain occur in terms of people just walking away from the workplace altogether,” he said. “Organizations are going to have to think about how [to] keep that level of talent, history and information in the organization in creative ways, so that it’s not the same situation where [workers have] to do a 9 to 5 every day as they have been for the last 30 or 40 years of their lives.”

In addition to meeting the needs of boomers, companies also must ensure they continue to prepare for the coming boomer retirements.

“The first thing companies must do is understand the magnitude of the problem, including the knowledge and skills at risk - and it’s going to be different for different organizations,” he said.

“Secondly, they’re going to have to develop a strategy to capture and transfer knowledge and core skills from these retiring employees and to identify and retain new workers with those critical skills, either internally or externally, to fill those gaps.

“Third, they’re going to have to manage and measure the progress of the entire effort. They have to have metrics to measure how well they’re doing because capturing critical workforce knowledge and skills can’t be left to chance.”

Hudson said using soon-to-be retirees as trainers and coaches and having them assist in the identification and mapping of key job competencies would be good for both the organization and the boomers.

“If organizations allow [boomers] to walk out the door, that loss of experience and skill will drop straight to the bottom line in terms of lost productivity,” Hudson said. “That’s how organizations remain viable - the experience base and the knowledge base of how things get done - if that walks out the door, we start to lose a lot.”

Knowledge retention, knowledge transfer, and the intelligent use of talent are issues that we are passionate about at M Squared.  We remain focused on providing our clients with innovative, flexible consulting solutions delivered through the skills of our people and the abundant expertise that resides within our consultant network.

As the holidays approach and companies finalize their FY 2010 plans, more than ever the topic of the contingent workforce surfaces in human resources discussions. While utilizing external consulting expertise such as the type M Squared provides is now standard operating procedure for many companies, other organizations have yet to realize the benefits of flexible employment solutions.

For those companies on the fence, one element of hesitation can be knowledge transfer. That is, how to ensure the institutionalization of knowledge once a project is concluded and the expert has gone on to a new engagement. In the groundbreaking book, “A New Brand of Expertise: How Independent Consultants, Free Agents, and Interim Managers are Transforming the World of Work” (Butterworth-Heinemann), M Squared CEO Marion McGovern and co-author Dennis Russell address this issue head-on, and what they penned in 2001 is as relevant as ever today.

The following passages succinctly describe best practices in knowledge transfer:

“The best way to enable (knowledge) retention is to make it part of the contract with the consultant. He or she must be able to turn over the baton to an employee; the consultant must train someone in the organization on his or her approach, constructs, and activities. Someone in the organization must be left aware of potential issues remaining from the course of the project of that could arise in the future. This should be a formal requirement; for example, a product-costing project would not be considered complete until a manager is trained on the model and all associated documentation is provided.

Beyond these types of training requirements, managers must become sensitive to expertise networks. As success in an organization becomes more dependent on project management performance, those who are best able to rapidly deploy expertise will be those most recognized and rewarded. Managers must be able to rapidly identify individuals with expertise in disciplines that may be useful in the future. They must actively and deliberately develop formal and informal expertise networks, so that when the time arises they know where the knowledge may be found. This can be as simple as creating a list of individual consultants and intermediaries to call on when the need arises, or as complicated as cataloguing in a specialized database the skills of consultants used and/or considered for projects.”

In short, within every organization are people who know and people who need to know, and the lasting value of a successful consulting project is not only performing the task at hand, but making certain that knowledge transfer is built into the process.

The book, A New Brand of Expertise: How Independent Consultants, Free Agents, and Interim Managers are Transforming the World of Work” by Marion McGovern and Dennis Russell (Butterworth-Heinemann) is available at www.amazon.com

I recently came across two interesting data points which provide some important clues to what the emerging, post-recession, marketplace for labor might look like.

These data points have extra significance because in recent weeks we’ve seen an increase in consulting opportunities across all our practice areas, and we’ve also begun to notice a tightening of the knowledge worker labor force.

You might ask, how can it be that we’re still hearing about the recession and unemployment almost every night in the news, yet you’re saying there is both business opportunity and a lack of talent in the market?!

Here’s my explanation.

First of all, unemployment statistics are a lagging indicator. The rate of unemployment in the market will peak long before the government agencies report it. A much more reliable indicator of labor market trends is Gross Domestic Product (GDP). When it grows, the labor market will grow.

Second, unemployment for those with a college degree or higher (i.e. the knowledge workers that M Squared Consulting depends on to deliver results for clients) remains at near historic lows. The reality is that many members of the knowledge workforce have delayed their retirement. Once we begin the post-recession economic cycle we will see an increasing number of Baby Boomers (the most educated and experienced component of the current labor marketplace) begin to retire from the workforce. I predict this dynamic will cause a renewed war for talent.

August 2009 ExecuNet Recruiter Confidence Poll

Executive hiring by healthcare companies is expected to set the pace for management recruitment across all industries now through the end of 2009, according to ExecuNet’s latest Recruiter Confidence Poll. The survey found that nearly 150 responding executive search consultants anticipate seeing the most executive hiring in the healthcare space, followed by the clean/green technology sector, energy/utilities, and the life sciences market, including companies in the pharmaceutical, biotech and medical sectors. Senior management hiring in the publishing and media/advertising/entertainment industries is expected to be the weakest, extending a longstanding trend line.

“With the economy showing signs of stabilization, corporations are beginning to strategically upgrade their leadership teams and fill positions that were put on hold during the downturn,” says Mark Anderson, President and Chief Economist of ExecuNet. “In light of the deep cuts many companies made during the past eighteen months, the pace of job growth during the year ahead could be stronger than expected in many industries.”

In the poll a representative sample of executive recruiters are asked what industry they anticipate yielding the highest growth of management hiring in the next six months. Here are the top ten responses from the poll:

• Healthcare = 13.8%
• Clean/Green Technology = 10.6%
• Energy/Utilities = 9.1%
• Life Sciences (pharma, biotech, medical) = 8.4%
• Environmental Products and Services = 7.2%
• High Technology = 6.3%
• Tie-Business Services = 5.3%
• Tie-Government/Nonprofit = 5.3%
• Defense/Aerospace = 5.2%
• Financial Services = 5.1%

Source: ExecuNet Recruiter Confidence Poll 8/09

The Aging of the American Workforce - Pew Research Center

The aging of the American workforce has accelerated during this recession, both because older workers have stayed in the labor force longer and younger adults are staying out of it longer, according to a recent study by the Pew Research Center.

One government estimate forecasts that 93 percent of the growth in the U.S. labor force through 2016 will be among individuals ages 55 and older.

By a ratio of nearly two-to-one, survey respondents said they would prefer a job that offers better security (59 percent) over one that offers higher pay (33 percent) but less stability.

Yet even in the face of widespread layoffs, pay freezes and involuntary furloughs, nine-in-ten employed adults say they are either completely (30 percent) or mostly (60 percent) satisfied with their job. In recent decades, the Pew study reports, levels of job satisfaction have tended to remain stable through good times and bad.

As it turns out, older workers are the happiest workers. Some 54 percent of workers ages 65 and older say they are “completely satisfied” with their job, compared with just 29 percent of younger workers. That’s because a much higher percentage of older workers is working not because they need to, but rather, because they want to.

With the lingering effects of the recession it should come as no great surprise that the biggest worries of finance executives can best be summarized as cash, cash and cash!

This according to the latest poll of more than 1,200 senior finance executives conducted by CFO Europe, Tilburg University and Duke University. Ongoing worries about the stability of banks, scarcity of credit and health of counterparties all now rank near the top of CFOs’ top external and internal concerns in Europe, Asia and America.

Companies are tightening their grip on inventories, receivables, and credit lines. As a result, cash - making it, collecting it and hanging on to it - tops the list of CFOs’ concerns. In addition, CFOs are worrying about sputtering consumer demand, stalled credit markets, and the cost of fuel and other commodities.

For the United States the survey results were as follows (with the previous quarter’s rank shown in parenthesis):

1. Ability to forecast results (1)
2. Working capital management (NR)
3. Maintaining morale during downturn (2)
4. Balance sheet weakness (3)
5. Cost of healthcare (4)
6. Attracting/retaining qualified employees (5)
7. Supply chain risk (6)
8. Managing IT systems (7)
9. Pension obligations (8)
10. Intellectual property protection (9)

From a workforce perspective it is interesting to note that finding and retaining talent continues to be one of the CFOs’ top internal concerns. More than 60 percent of firms directly hit by the credit crunch plan to delay, reduce, or cancel hiring plans. We’re finding that many of our clients have hiring freezes or “pauses” in effect for full-time employees, yet they continue to deploy seasoned consultants to execute mission-critical projects and initiatives. The powerful value proposition of the M Squared talent-on-demand model (targeted expertise, driving results) works equally well in up and down markets!

The most common phrasing of the Golden Rule is “Do unto others as you would have them do unto you.”

I recently heard a sarcastic alternative definition: “He who has the gold gets to make the rules.”

While there are obvious problems with this viewpoint, it does offer an interesting perspective when we apply it to the knowledge workforce.

Many experts believe that the war for talent will heat up as we approach the bottom of the recession and begin a period of recovery and growth.

In a similar vein to the “alternative” Golden Rule above, we could postulate a Talent Golden Rule: “Those who have the talent will win.”

What do I mean by this?

Business success is no longer just about capital and natural resources, but rather about brainpower and the ability to execute. Quite simply, knowledge and expertise are the new coin of the realm.

This means that knowledge workers, and the skills, insights, experience, they bring to bear on problems are highly sought after assets. And it also means that those organizations who can attract and retain this talent will win in the marketplace.

This dynamic will become even more important as we emerge from the recession. In past economic downturns it was normal to focus on financials rather than employees. The logic was that when unemployment rose and the markets sank it was a buyer’s market for talent. Employee engagement, talent management and other employee concerns took a back seat to cost and risk management.

Most business executives now recognize the risks involved with this antiquated view of talent. They understand that a time of economic turmoil is precisely when they have the most to gain from focusing on employees. If employees are distracted, anxious, disengaged or believe they’ve stalled in their careers (especially top performers), they aren’t likely to do what’s required to keep the enterprise moving forward or deal with problems.

Unfortunately, there is still a large chasm between recognizing this issue and actually doing something about it. In a negative business climate when company leaders face an unprecedented number of challenges, talent management can drop far down the list of priorities, despite the best of intentions.

So with this talent-centric thought in mind, what are some strategies companies can consider to optimize their workforce and come out ahead when the war for talent heats up?

A few suggestions that will benefit both the organization and the workforce:

1. Lead by example: Business leaders need to present a thoughtful, calm and genuine “public face” to their people in a period of crisis. It’s the right time for straight talk, reassurance, empathy, and a clear vision and plan to move forward. Those companies which emerge from a crisis most successfully are inevitably those that commit to frequent, open, and honest communications with employees and their other constituents.
2. Think creatively about employees: The most common reaction to an economic downturn is to control costs tightly. But even if companywide staffing reductions meet cost cutting targets, they are rarely the best answer. A better solution is to carefully consider how you can deploy employees in creative and more productive ways to help reduce costs or increase revenues. For example, are your best performers doing the highest-value work? Can underutilized workers move to other areas of the organization? By looking at new ways to align the workforce with both short-term opportunities for efficiency and long-term strategies for growth, companies may be able to minimize staff cuts.
3. Take advantage of the opportunity to upgrade talent: With widespread layoffs the available pool of talented professionals is growing. This will be a short-term phenomenon, so smart companies will see this as a time to add new skill sets or increase bench strength. For example, the deep cuts at financial services firms represents a unique opportunity to pluck out talent from an unusually wide and deep pool.
4. Stay close to key talent: In the current environment it’s more crucial than ever to keep vital staff engaged, motivated, and productive. The good news, especially given budgetary pressures, is that pay itself has little to do with fostering engagement. Research consistently shows that engagement builds from emotional connections to the company and the nature of the work experience and environment. While it doesn’t require a big financial expenditure, it does involve a significant investment of time and attention, especially from senior leadership.
5. Embrace the flexible workforce: Increasingly companies have begun to identify the need for flexibility in all Human Capital expenditures, including professional and management talent. A flexible workforce strategy can accommodate volume fluctuations while maintaining a leaner permanent professional staff. Companies that embrace “lean” methodologies recognize the value and cost savings of adding management staff in increments as needed versus FTE. Instead of staffing for the peak, firms can now staff for average levels and use the flexible workforce to satisfy peak, special, or “one-off” needs. Companies are also able to match their special talent requirements with specialized resources.

By deploying independent experts, such as the consultants found in the M Squared Talent Network, companies can get work done in tough times without adding to their fixed cost headcount base. These seasoned knowledge workers are savvy business professionals who have extensive experience delivering results for their clients.

Flexibility, cost-control, and results will be the three primary corporate drivers for the growing flexible workforce. Executive teams need to take a holistic view of their total workforce. New talent deployment models and solution providers like M Squared Consulting are emerging that leverage the flexible workforce to deliver exceptional client value.