Partnering with a Professional Services Firm
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1 Partnering with a Professional Services Firm Evaluation Checklist & Scorecard
2 Factors to consider when selecting and evaluating service providers: You ve decided to partner with an external firm to deliver Executive Coaching, Team and Leadership Development for your organization. Question is, how to select the best provider that s a strong fit for your culture and needs? What factors should you consider in the evaluation process? The decision can be a difficult one, given the broad range of options available - from solo entrepreneurs to the Big Four; from training organizations and boutique consulting firms to large staffing/outplacement providers; from generalists to specialists. There are many factors to consider, recognizing that the ensuing partnership demands a transference of trust involving your company s most valuable asset your leaders. Nothing less than a strategic partner who can demonstrate experience, competence and results is worthy of the risk. A 2009 research report by RainToday addressed the question of how buyers buy professional services. They found that the most common way buyers initially identify and learn about service providers is via referrals, namely referrals from colleagues or other service providers. How Clients Buy: 2009 Benchmark Report on Professional Services Marketing & Selling from the Client Perspective. RainToday.com and Wellesley Hills Group The Selection Process According to the study, the factors most important in the company s decision to choose a service provider, was the overall value the provider can deliver, followed by industry relevant or need specific experience, overall costs or fees, and the reputation of individual consultants (see chart above). The Evaluation Process Once you ve identified and shortlisted reputable service providers that meet your key criteria, what factors should you consider when evaluating each one? We ve compiled our list of critical factors and selection criteria into an evaluation checklist and scorecard to assist you in this process. The successful use of strategic partners ensures a greater return on your investment and reduces the time spent on selection, vendor relationship management, initiative reporting and service delivery processes. Copyright 2011, A.J. O'Connor Associates p Page 2
3 Strategic Fit Evaluation Criteria Checklist Start by identifying the most important criteria you will use to select a partner. Think about what you're trying to accomplish both short-term (your immediate needs) as well as the long run. To assist, we ve organized seventeen recommended criteria into three categories (Strategic Fit, Delivery Performance and Thought Leadership) and these are detailed on the following two pages. You may wish to add to, or amend these, based on your specific needs, goals and objectives. Instructions: Rate each factor in terms of importance using a 5 point scale where 1 is very low; 2 is low, 3 is moderate, 4 is very important and 5 is extremely important. Use 0 for not applicable or unimportant and 0.5 where you re undecided between two ratings. Enter your importance rating to the column in the table below, or directly to the scorecard spreadsheet that accompanies this checklist. Criteria Questions Importance (1-5) Organizational Level Geographic Location What level(s) within your organization will be served? How well does the engagement/provider match? For executive coaching, ask for a breakdown of assignments completed by level. In what geographic locations will services be required? Are services required locally, nationally and/or globally? How does the provider s reach match your location needs? Cultural & Business Acumen Company, Industry & Functional Experience How critical is indepth working knowledge and experience of geography, culture and business acumen for each location or engagement? How effectively does the provider match cultural and business needs? Is there a culture match? How is each one like you? Different? How important is company, industry and functional business experience? What direct company experience, industry experience and functional departmental experience exists? Credentials Am I getting the best? Will the credentials be credible among leaders with whom the provider will be interacting? What accreditations, training, certifications, depth of experience do delivery consultants/coaches possess? Breadth & Depth of Expertise Overall Financial Value Will you need solutions in multiple areas? How broad is each provider s service offerings and capabilities? How long has each one been providing these services? What are the areas of specialization? What are the overall costs or fees? What are the cost benefits? How would you assess the overall value the provider can deliver? Copyright 2011, A.J. O'Connor Associates p Page 3
4 Thought Leadership Delivery Performance Criteria Engagement Process Questions Is there a consistent, documented process based on best practices in the industry? What are the provider s best practices? How effectively can the provider guide you to an optimal solution(s)? Importance (1-5) Confidentiality What level of confidentiality is observed during and post service delivery - at the individual, team and organization level? What are the provider s policies in this area? Relationship Management Status and Reporting Contingency Management Success Criteria & Delivery Metrics Is there a single, easily accessible, efficient point of contact for follow up? What is the frequency, nature and quality of communications? What level of trust and commitment does each provider engender? How flexible, adaptable, reliable and responsive is each provider? Are there formal communication checkpoints engaging all key stakeholders including leaders, their managers, and potentially multiple levels within human resources? Is there capacity and are there backups and contingencies in the event of changing/expanding requirements, escalation of events, or disaster? How scalable is the provider s operation? Are engagement and developmental objectives documented, tracked and progress measured? How effectively does the provider measure engagement success? Are there published metrics and metrics in place for return on investment? Criteria Questions Best Practices What mechanisms are in place to ensure that industry current best practices and leading trends are incorporated to the provider s services? Importance (1-5) Ongoing Development Process Improvement Use of Technology What commitment and requirements does the provider have for the continued development of its professionals? How does the provider incorporate its own learnings into quality and process improvement? How is technology used to speed/support learning integration, global delivery and client communication? Copyright 2011, A.J. O'Connor Associates p Page 4
5 Evaluation Scorecard To help you evaluate providers, use our scorecard to assess each provider (see pages 6-7). As you can see from the example on the right, you ll get a visual representation of how each provider measures up against your most important criteria. In addition to entering your importance and evaluation ratings, you can also amend any of the criteria. Instructions: Contact AJO if you would like us to this spreadsheet (shown on pages 6-7) to you. Additional Resources AJO Scorecard For Evaluating Professional Services Firms - An excel spreadsheet where you can enter importance scores and ratings for each of the seventeen criteria outlined on pages 3-4. As you enter ratings, the chart provides a view of how closely each firm matches your most important criteria. Ten Trends in Coaching and Leadership Development - Ten trends are covered in a series of six blog postings on AJO s website. Each posting includes several additional resources. How Clients Buy: 2009 Benchmark Report on Professional Services Marketing & Selling from the Client Perspective. RainToday.com and Wellesley Hills Group research report. Download an excerpt from this link, or ask AJO if you d like to learn more about this study. About AJO As a professional services provider, A.J. O Connor Associates invests in developing sound practices and differentiating itself through high quality, flexibility and breadth of service offerings. Our tenured consultant team brings global industry experience, proven programs, accelerated development and exceptional results to support your needs. AJO has worked with a wide range of companies in terms of size, scale and industry. This checklist and scorecard have been developed based on our considerable experience in the selection and delivery process for over 28 years. Copyright 2011, A.J. O'Connor Associates p Page 5
6 Contact AJO if you would like us to this spreadsheet to you. Copyright 2011, A.J. O'Connor Associates p Page 6
7 Contact AJO if you would like us to this spreadsheet to you. Copyright Copyright 2011, A.J. O'Connor 2011, A.J. Associates O'Connor Associates p p Page 7 Page 7
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