Executing growth strategies more cost-effectively.

The economy is on the upswing. Once gain, companies are beginning to execute growth strategies that were shelved during e economic downturn. With these come new strategic and operational initiatives, including a need to add infrastructure in the form of talented people. Although some companies still pull back at that point because of the added investment, others support the need for growth by choosing a viable alternative without adding to overhead. That alternative is flexible human capital.

Flexible Human Capital

Flexible human capital often takes the form of using independent project professionals who have specific skills to match a company's needs and job requirements. It is a sought after option because it mitigates one of the company's most expensive fixed assets: permanent and excessive personnel overhead. Furthermore, flexible human capital is attractive because it's often difficult to find the right person for permanent employment, not to mention the time or cost involved in recruiting and interviewing efforts.

Eliminating the time investment in a job candidate search is one immediate advantage to using independent consultants. Other pluses frequently mentioned include:

* Minimize staffing costs because overstaffing is no longer an issue.

* Regular employees aren't overburdened with seasonal or special projects.

* Large projects can be implemented incrementally, as budgetary, economic and time constraints allow.

* Talent isn't compromised because all skill levels are available.

* Project staffing changes status from a fixed cost to a variable cost.

Michael Dowlan, Director of Operations for NativeSun Media and a former VP of Marketing at Wells Fargo Bank, knows first hand about the value and benefits of using senior level consultants. He reports, "Oftentimes, we would need people on very short notice for very complex work."

The Broker Connection

Companies that need freelance resources often struggle when it comes to matching the right project professional with the right set of skills. So the question is where can companies find the competent consultants? Some are turning to a new breed of professional service firms that specialize in matching senior level independent consultants with companies' specific resource needs. These brokers make available an existing network of thousands of pre-qualified consultants. This service is a viable option to companies that would otherwise have to start the search for a consultant from scratch. A company's most critical projects and strategic initiatives are just too important to leave room for error, which can happen when the consultant selected isn't the best candidate for the task at hand.

Here's an example. Edwige Mesrobian, VP in Charge of Management Reporting and Profitability Measurement for Union Bank of California, was asked to put a risk-reporting package into a production environment in order to automate the process and set up report generation on a quarterly basis. Because she was on a tight schedule with less than a week to begin the project, Mesrobian turned to a consultant broker to find the talent she needed.

"We had a two or three day turnaround, and the broker got right on it. They came in two days later with three qualified candidates, and we interviewed and picked the best individual for the job," says Mesrobian. She found the new consultant very professional, cooperative and organized. "Most important," she adds, "he took on the tasks and challenges, and with minimal direction was able to put together exactly what we expected."

Another benefit of using a broker organization comes from the broker's ability to help the client company identify its needs. Brokers typically start with a needs' identification process that includes defining the project by way of responsibilities, deliverables and critical subjective considerations.

Ideally, brokers work from databases that are large enough to offer clients a choice of candidates and a range of rates. Furthermore, brokers offer talent that has been pre-screened, interviewed and reference-checked--which most HR professionals will agree represents a huge time saver.

Finally, today's talent brokers don't disappear once the right consultant is found. To ensure a successful result, brokers stay in contact with the client company and the consultant as the project progresses, making sure everything and everyone stay on track and deliverables are being met.

Outsiders Can Add Value

While there seem to be obvious benefits to hiring independent consultants and using a broker as part of the process, there are several reasons why some companies, inexperienced in using consultants, initially fail to see the value. Some of these include:

Vague understanding of needs. The simplest and most common reason is that many companies have trouble defining their needs. Even in this capacity, a consultant broker can be especially helpful at zeroing in on project responsibilities and the personality of the company in order to make the best possible employer/consultant match. After all, happy clients are loyal clients. It's in the broker's best interests to make sure solid matches are made from the start.

Misinformed about freelance consulting fees. In truth, the cost is often less or roughly equivalent to adding a staff employee--temporarily. Really, if management thinks nothing of renting a piece of equipment for a seasonal project, why consider it differently with personnel?

Mistakenly believes only insiders add value. Most senior level consultants are accustomed to working in many different environments. They adapt well to unfamiliar territory without losing focus on the project at hand, oftentimes better than those embroiled in and blinded by company politics. Plus, an independent and objective approach to a project or important business problem can be a key factor in its success.

Unsure how brokers benefit the process. When placing an independent consultant in an assignment, what the client company really needs is someone who understands not only the industry or market niche the company serves, but also the overall problem at hand. Surprisingly, some of the best company/consultant matches are often made outside of the client's industry. For example, a broker may suggest a health care client interview a consultant from the financial services sector because ultimately both industries rely on quality relationships to foster customer loyalty and retention.

Just in Time Expertise

Now, the 'just-in-time' concept goes beyond its application to inventory management and supports the HR function by using talented executives as the need arises. Implementing a flexible human capital plan maximizes resources, increases flexibility and keeps a lid on excessive overhead costs.

As the economy continues to recover and businesses become more aggressive in their growth initiatives, it is more important than ever to have the right person for the right job, regardless of the parameters of the position. Carefully selected consultants have the skills, talent and experience to deliver the expertise when it's needed and only for as long as it's needed. Now, that's just-in-time philosophy at its best!

Robert Moore is Vice President of [M.sup.2]. For more information, please call Mr. Moore at [phone], or visit the company website at www.msquared.com..