Collaboration Through Channel Partners

Click image to see full modelMany changes are occurring, post economic meltdown, in the fast-paced world of collaborative consulting.  One of these changes is that more collaboration is now occurring between collaborative consulting firms.  In short, it has become apparent that working with, for, or through “channel partners” in the overall collaborative consulting space is a model that can provide the “best of the best” intellect to solve client issues.  In some cases, it’s nearly essential to collaborate across firms given that the overall consulting intellect was dispersed substantially in the downfall of the consulting industry circa 2003-2005.  As shown, there are at least 4 sweet spots that consultants can leverage as channel partners, with a distinct difference in the value proposition and fee potential between a “contractor” approach and a “partner” approach.

Update on Wednesday, October 21, 2009 at 6:32PM by Collaboration King

PROMOTED COMMENT (when comments add in depth detailed information to the original post, they are promoted as primary content) 

by David Roberts

I led several one-hour discussions on this model with a 70 or so OD professionals and single-shingle strategy consultants in Palo Alto. It was a fantastic model - thanks Tom. A couple of builds:

1.The main difference between the top 2 quadrants and the bottom 2 is about "thought leadership/IP". Are you delivering their methodology (Contractor, bottom 2 quadrants in model) or delivering yours (Partner, top two quadrants of model)?

2. Intuitively, the best place to be is in the top right corner, delivering your companies' "thought leadership" in partnership to External clients. This is where the money is and the value is. It also requires the most trust from your channel partner. It requires adapting as you go from account to account, and engagement partner to engagement partner. You don't need the entire organization to love you; just a devoted few who can sell you in. Often there is an internal group who, really, should be able to do the service you offer to clients... they just don't do it as well. Big Consulting companies seem ok with this overlap if clients gain value.

3. The easiest path to get to the top right quadrant is to start in the upper left, not the bottom left (again, the key difference is thought leadership). This means providing a service for them that they cannot do themselves. Once you are seen as bottom left, a contractor, (delivering their thought leadership for them) it can be tough to re-define yourself. 

4. The just-maligned bottom left quadrant (Contractor delivering work to their Internal people) is a great fit if it sustains your business financially and gives you contacts. Typically you're not learning a whole lot and you're not in a direct sales opportunity. But, as a small business it gives you consistent, ongoing revenue at relatively low risk. 

5. If you are delivering in the left 2 quadrants (Internal work for the consultants themselves) they will low-ball on cost, and force a decision-point for you. Have guidelines about this "do I cut cost to get the work?" question, but each situation is different and should be treated as such, at least until you're big/successful enough to say NO to things consistently on principle.

6. Careers are long. Delivering high-quality work with multiple business partners makes a ton of long-term sense.

David is a Co-Director at The Difference Consulting.