Author: Y. Yağmur Katipoğlu
The Challenge of Independence in Consultancy
As a professional who has been providing logistics consultancy since August 2000, I aim to elucidate the concept of a “difficult consultant” in this article. My goal is to assist colleagues within the logistics industry who aspire to pursue careers as consultants.
The Importance of Independence and Objectivity
A competent consultant must never furnish incorrect or inaccurate information to their clients. Consultants are responsible for delivering accurate information to their clients; even a single erroneous statement can tarnish their reputation. This is because their expertise and knowledge form the basis of their services, and any inaccuracies can significantly devalue the services they provide.
Independence and objectivity are paramount qualities for a consultant. A consultant involved in the sale and installation of transportation management software (TMS) cannot maintain independence and impartiality. Being financially tied to the success of a particular software, they might overlook weaknesses or issues in the TMS, compromising their objectivity.
Avoiding Commissions and Partnerships for Impartiality
Consultancy firms must not give or receive “commissions” from other companies while serving their clients. Clients pay fees for consultancy services, and any additional commissions from companies selling software, hardware, or products within the project’s scope can undermine impartiality and independence. In case of project-related issues, it becomes questionable whether the consultant will prioritize the client’s interests or those of the companies providing commissions.
Consultancy firms should not establish partnerships with representatives of software or product-selling companies. True independence and impartiality can only be maintained by maintaining an equal distance from every software company.
The Challenge of Remaining a “Difficult Consultant”
The term “difficult consultant” in the article’s title encapsulates the challenges faced by those committed to performing their duties faithfully. Consultants who remain impartial and independent indeed face a demanding task. Financial hardships might test their resolve, and the allure of joining a software or product-selling company’s ecosystem may seem like an “easy” way out.
Over time, the truth will surface, potentially leading to the demise of profitable consultancy firms. In reality, the business world offers distinct opportunities for consultancy firms engaged in ethical practices. Providing genuine guidance is an arduous task and resembles a noble pursuit.
Protecting Client Data and Learning from Them
Consider your consultancy firm as an “Expert Witness” or “Arbitrator.” Do such experts or arbitrators receive commissions beyond their salaries or fees? If they did, would you still place your trust in their judgment?
Safeguarding the confidentiality of all customer-related data is another fundamental principle in consultancy. Adhering to confidentiality requirements is not as straightforward as it may appear; it poses significant challenges. Before engaging a new client in the same sector, the consultant must inform and seek approval from previous and existing customers in that sector. It’s essential to acknowledge that consultants continually learn from their clients, even though they may feign omniscience.
The Power of Genuine References
While an iPhone is referenced by its physical product, a consultant’s reference stems from customer recommendations. In this context, creating success stories that appear to have been composed or recounted by customers is a common consultancy strategy but may not always accurately reflect the facts.
Measuring Performance for Sustainable Consultancy
For consultancy to be sustainable, performance should be measured against concrete criteria, with the initiative for assessment belonging to the customer.
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