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Too much of a good thing?
Lisa Wichmann
It seems the old adage: everything in moderation, can be applied to just about anything in life. And lately, it seems to apply to consulting too.
Don't get me wrong. Consultants—with their vast experience and education—offer valuable wisdom and insight. As baby boomers retire, many of them will re-enter the workforce as consultants, much to the relief of managers who dread the loss of so much talent. But when does consulting get out of control?
Look no further than the federal government for a prime example. As reported by the Globe and Mail (August 18/06), a consulting contract on procurement reform awarded to A.T. Kearney Ltd. ballooned to $24 million in only nine months. It was originally supposed to be $15 million—over four years.
The contract was awarded by the former Liberal government, but most of the cost increases were incurred this year, after the Conservatives came to power. An executive in charge of the increases has since been let go by Public Works and Government Services Canada (PWGSC). Meanwhile, the minister of PWGSC, Michael Fortier, is chagrined, and vows to take more charge of the procurement reform project. Might we offer a suggestion here?
How about looking internally for ideas to improve purchasing? Or at least, try to develop the expertise by sending senior bureaucrats on benchmarking and fact-finding missions.
Surely with all the professional training and certification out there, a senior-level purchaser, who has worked at the government for years, stands just as good a chance of gaining the skills and contacts necessary to implement strategic sourcing?
I would venture to say internal staff would be even more successful, because they’re already familiar with the culture and constraints of their organizations, more so than a consultant could ever be.
Take the case of A.T. Kearney. According to the Ottawa Citizen (Sept. 1/06), A.T. Kearney suggested the idea of reverse auctions to save the government money. Reverse auctions have their place and time, no doubt. But imposing them on an unwilling—or unable—supplier base is bad diplomacy.
Surely there were purchasing staff members, upon hearing about the plan, who shook their heads in disbelief. Perhaps some even protested the idea. One would hope the ranks were conferred with over the decision.
By contrast, check out the report in this issue of Purchasing b2b, on Dennis Silva's approach at Best Buy Canada. After reading an article on Air Transat's strategic sourcing program recently, he hopped on a plane and paid them a visit—and gleaned some useful, practical ideas in the process.
Perhaps, instead of funneling millions upon millions into the coffers of consulting firms, procurement executives should take a more collaborative approach that leverages—instead of downplays—the potential of their own staff.
Let's stop wasting the talent sitting in front of us. We'll save a ton of money, and enhance a lot of careers in the process.
—Lisa Wichmann
Editor
Contact the editor at lisa.wichmann@pb2b.rogers.com
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