Last month Pivotal Insight looked at when an organization should consider hiring a consultant. This month we focus on which consultant to hire. Our purpose is not to name names or endorse consulting companies—we look at the characteristics that go into a good hiring decision and usually result in a satisfying choice.

The most important thing Government executives need to consider is the ability of the consulting firm to deliver results, i.e., meet or exceed the requirements specified in the Statement of Work, be on schedule, and at or under budget. However, don’t underestimate the importance of relationships since most people prefer working with people they like.

Since consulting is one of the fastest growing business sectors and the field isn't regulated, buyers should take some precautions to make sure they get what they're hoping for. For example, many government procurements do not directly address the ability of the firm to accomplish the work. While commercial firms focus primarily on predictive indicators of the likelihood of success, government agencies may focus on “Best Value.” Although technical and management approaches are usually required, contract award is typically based on a percentage calculation of scores for approach, past performance and price. Past performance is a valuable indicator of a firm’s experience with similar projects but it is not entirely indicative of the firm’s ability to execute successfully on the task at hand. Price can often be attributed directly to the cost of the personnel being proposed who may or may not have the requisite skill-set and experience. Given the constraints of government procurement, here are some things to consider when hiring a consulting firm.

Consulting firms are constantly looking to expand their business and service offerings into other areas-a very well known firm maybe not be experienced at all in particular service. Government buyers often want firms who have dealt with similar problems in the past. Buyers need to understand the inherit risk of being the "guinea pig" and, if still willing to proceed, should negotiate a discount. While a government executive may have done a significant amount of work with a given company and have come to know them and enjoy working with them, don't automatically assume that the incumbent consulting firm is capable of performing the new work as new requirements emerge.

There's no single right answer to this question that covers every situation. Some considerations in making this decision include the uniqueness of the problem or business area, the possibility of increased scope requiring greater/different resources from the consulting firm, and the ability of one firm to address all of the issues and challenges.

How much attention will the firm devote to your needs? Are they going to provide their top performers? Will you have immediate access to top management in the event that escalation is required? Larger firms may have a more impressive track record, a deeper bench, and a broader spectrum of services and products; but is your project strategic to them or are you below their radar screen in terms of importance?

One of the most important indicators of future success is the personnel being provided by the consulting firm. All too often “bait and switch” occurs: the firm proposes senior people and then uses junior people to do the work while they’re being trained on the buyer’s nickel. It is important to make sure that you are getting the people you need and expect.

Commercial contracts rely very heavily on “skin in the game” tying fee to results. The government is adopting many of these same principles through the use of award fees and performance based contracting. Last month’s newsletter addressed the growing interest in Share in Savings contracts. All of these options are available to you—and you should consider using them.

The bottom line: choosing a consultant is not a “just check the boxes” process. As the buyer, you need to make a series of difficult determinations and then evaluate them against the personal chemistry between your organization and the consultants who will actually do the work. Government entities that are satisfied with their consulting choices usually point towards the skill, commitment, and personal characteristics of the consultants they value. Your selection approach will be most effective if you focus on the same factors.