The Case For Collaborative Consulting
Saturday, December 31, 2011 at 5:23PM Those who have plunged into entrepreneurship know that success can be difficult. Countless books sell the "idea" of business ownership as one of the hallmarks of the American dream. The reality is that most ideas, if not executed with the right team and resources, won't succeed.
I come from the mindset that success need not be complicated but does require planning. By taking control you have the ability to define your own success. For some the goal is acquiring a zillion customers in the shortest possible time. For others it may be starting an organization to serve a particular need or community. Regardless of your plan it has been proven time and time again that you can't do it alone.
In recent years social media and crowdsourcing have had a profound global impact. Now companies like Google, Wikipedia and Twitter (to name a few) bring value to millions by organizing user generated content. TED superstar Rachel Botsman has also introduced the concept of collaborative consumption. The idea being that we can make the world a better place by sharing physical resources (e.g. think Zipcar). As a small business owner I've often wondered how independent workers (freelancers) could improve their customer value by pooling their talents and resources. This idea of collaborative consulting isn't complicated, and if executed correctly could help the freelancer reap tremendous benefits.
Time & Resources
The biggest challenge in self employment is time. As an employee you become accustom to being paid for 40 hours per week along with vacation time and sick leave. As as freelancer these formalities go out the window. All your work is organized into two two categories - billable and non-billable. Translate this to an 8 hour day and you may spend 6 hours doing non-billable work (eg. accounting, marketing, sales, taxes) leaving the remaining few hours for billable projects.
The other challenge is expertise. You may be gifted in website creation and marketing campaigns, but may not have a clue about accounting or strategic planning. Furthermore, you may lack critical skills needed in your billable work. So, for example, when your client asks about hiring a graphic designer you wind up scrambling to contact colleagues and posting something to Craigslist.
Making The Connection
Challenges in time and resource management have been around as long as people have been doing independent work and many of us have come up with workable solutions. The most obvious strategy is to increase one's connections through networking. To that end your chamber of commerce, conventions, business presentations and special membership events can help. Important connections can also be established through social media sites like LinkedIn, Google Groups, Twitter, Facebook and others. Even connections made through coworking spaces and coffee shops can be valuable.
The Model
As we work to establish these important connections how can they be used to increase customer value? The recent phenomenon of coworking is intriguing since you may have the chance to literally bump into someone with a complimentary skill set. However, most freelancer-to-freelancer relationships are "arms length" which, in my opinion, reduces value and business profitability. The common example is the referral. While finding clients through referrals is great, wouldn't it be more efficient for customers to find everything they need through a single network? Folks looking for a solution wouldn't need to find an independent developer, marketing expert, copywriter and graphic designer. The customer essentially gets introduced into the network based on a single need, and the freelance team reviews the project to determine how their skill set can increase customer value.
Freelancers that participate in this "collaborative consulting" model would still continue to run their own businesses (covering their own expenses), but would work together on larger projects or when asked by other members. Groups would be limited to 5-8 people to streamline decision-making and all members would have complimentary skill sets. The goal? Establish self-organized teams that can crank out high-quality, competitive solutions.
Unlike a typical arms length relationship, members would also donate part of their time (and possibly resources) to benefit the group. A basic example would be the creation of a website or blog where members contribute one article per week. As the group grows in confidence this could extend to joint efforts in advertising, workshops, strategic planning or even supporting personnel. When considering the many benefits of this approach, I envision the productivity of a hackathon coupled with some organizational structure.
Conclusion
It's widely known that mega companies like IBM make huge investments in consulting in order to provide end-to-end solutions. Other groups like Ubermind are now rumored to turn away business because they've found the sweet spot in delivering customer value. By pooling resources through a collaborative consulting approach, independent professionals could also make substantial strides in increasing customer value, competitiveness and their bottom lines.





