Seven traps to avoid when hiring a computer consultant.

There are a lot of pitfalls out there for those who know little about computers. Following these rules when you contract to have your system set up can make all the difference between success and frustration.

The owner of a small Ohio business finally reached the end of his rope. A year earlier, he had sorely needed to upgrade his computerized inventory reporting system. Knowing next to nothing about data processing, he signed a contract with a computer consultant to do the job. The fee was higher than expected, but the consultant promised to have the system operational in three months.

It was not to be.

Several months of missed deadlines and vague excuses followed. Not only was the inventory system in shambles, but the consultant made changes in the business software that left the staff in utter confusion. Worse yet: When the frustrated staff called the consultant with questions, they were met with busy signals. (The consultant, you see, worked on the computer during night hours. He went home in the morning and took his phone off the hook while he slept during the day.)

Finally, enough was enough. The business owner told the consultant two things: first, the relationship was formally terminated; and second, the final payment due for the project would be withheld for non-performance.

That was the last word on the subject, right?

Not quite.

Angry at being terminated from the project, the computer consultant stormed out of the office, but not before he turned at the door and shouted: "Don't forget there's a modem on your computer. I can call in and destroy all of your data."

The frightened business owner called in another consultant, who made sure the modem could only be used to dial out. The business was safe from an intruder intent on damaging data.

In this case, at least, a computer consultant's threat was more bark than byte. But the story exemplifies many of the problems encountered when working with computer consultants: experts say businesses should do more groundwork before signing on the dotted line.

"Hiring a computer consultant is like getting married," says Vincent Hamm, president of Aim High!, a computer consulting firm in Golden, Colo. "You need to make sure both sides are willing to make the necessary commitment. If they aren't, the worst case scenario is a messy divorce."

Going with the wrong consultant means, at the very least, costly delays in getting a computer system running the way it should. "Time and again we run into businesses that pay computer consultants for projects that never work quite right," says Hamm. "And it's expensive for another consultant to come in and figure out how to fix what someone else has done."

Veterans of the computer industry say that businesses commonly fall into a number of costly traps when hiring a computer consultant. Let's see what they are, and how you can avoid them.

Trap #1: Overlooking Reports from Others

What computer consultants are being used by other businesses in your region? And are the relationships happy ones?

Those are perhaps the most important questions you can ask when seeking out a computer consultant. Indeed, you can draw up a great "short list" of prospects just by asking other business owners for referrals.

But do it right.

"Make sure your sources actually' hired and used the experts they are recommending," warns Nik Johnson, president of Computer Advisors, Prospect, Kentucky. "It's too easy for people to pass along offhand references by hearsay."

Larger companies can be good sources of leads because they often have more experience dealing with computer consultants. Try to find out the names of computer consultants used by the most successful, fastest growing businesses in your region.

Whatever your source of leads, it's essential that you get answers to some key questions. For example, how accessible is a consultant? Slow response time is one of the most common client complaints.

"Find out how quickly your sources get service when they need it," says Joseph Lacerenva, president of Unique Technologies, Stamford, Conn. "It's a bad sign if they have to wait too long to get back up and running when they experience a problem."

Bonus tip: People come and go quickly in the computer field. Don't get left high and dry. Find out if your prospective consultant has established long-term relationships with clients.

Trap #2: Selecting a Consultant who Knows Computers, but not Business

Once you have a short list of prospects in hand, arrange for personal interviews. Here's where you find out which consultants can apply their expertise to your business.

"You want to avoid the person who knows everything about data processing, but doesn't know what a receivable is," says Johnson.

This is a common trap. The business owner who is intimidated by computers can put too much faith in a "white knight" who throws a lot of technology at a problem Here's the bottom line: does the consultant exhibit an interest in your business problems, and define a computer-based solution in plain language?

"You are looking for someone who can ask the right questions rather than give you all the right answers," says Johnson. "A good consultant will find out what your business problem is, and then solve it."

Trap #3: Selecting a Consultant Who Lacks People Skills

Your computer consultant must have skills that go beyond the technical, into the realm of communications and training. In your interviews with consultants, find out which ones exhibit a real interest in solving the problems of your staff.

"Good consultants build systems that lend themselves to how human beings are already working," says Harem. "They don't expect your staff to change their ways of working to meet the needs of the computer system."

Avoid the consultant who shows resentment at speaking with your personnel. You'll have problems down the road when your staff needs technical assistance.

"Sometimes it's hard to find computer consultants with good people skills," says Hamm. "They were the kids who were teased in high school for being geeks with thick horn rim glasses. They stayed home to watch Star Trek rather than go to the Saturday night dance. Now they are in control, and it's pay back time."

Consultants with an attitude can create havoc with your business. "They will try to control how you run your business, or they will do something and not tell you what they have done," says Hamm. "Then when something goes wrong you are forced to run them down and find them."

Trap #4: Selecting a Consultant Without the Required Expertise

Knowing computers is one thing. Knowing the particular area of data processing necessary to solve your business problems is quite another.

"It used to be that you could safely assume a good computer consultant could help you with any software problem you had," says T.J. Lee, senior consultant at Prime Consulting Group, Winnetka, Calif. "Today things are much more complicated. Now you have hardware and network problems, as well as Windows operating system problems."

The interaction of software, hardware, networks and operating systems has become so complex that a lot of times you know you have a problem but you don't know in what part of your system the solution lies. All the more reason to take more time laying the groundwork with interviews. You need to find someone with the right set of skills to address your business problems.

Trap #5: Not Identifying Hidden, Vested Interests 

When a California business started having problems its books, the owner called in a new consultant to look over the spreadsheet program that had been designed for them.

As it turned out, the first consultant had been a sales person for the spreadsheet vendor, and had been determined to solve the business' accounting problem with that tool.

Result? The business had paid the consultant $12,000 to create a general ledger, payroll and accounts receivable program that did a poor imitation of a shrink wrapped package that would have cost $150 off the shelf.

"Many times, consultants who make money selling other people's products will not look out for the best value for you," says Michael Betts, president of Software Development Group, Glastonbury, Conn. "They will try to fit your needs to what they have to sell you."

Does your consultant have a vested interest in a vendor? A cut perhaps, of every sale of a software program? A salary?

If so, you had better know about it. Vested interests can color solutions to business problems. To recall an old saying: if all you have is a hammer, everything you see is a nail.

But product-dependent consultants have their place. Indeed, they can be life savers when a given software package is just the ticket to solving your business problems.

"Many specialized programs are hard to learn," says Patricia McCay, president of The Consulting Group, Huntsville, Ala. "The person who goes out and buys them cannot expect to learn them overnight."

McCay specializes in Dun & Bradstreet software that tracks employee information, payroll and tax compliance, among other things. "Our clients benefit from our experience with the product. Much of our staff has been with the product from 10 to 15 years." Indeed, many software vendors certify consultants, using third party testing.

"If you know that a certain software program is just what you need, call the vendor and get a consultant referral," says Lee.

Bottom line: You should be aware of any vested interest held by a consultant. But if that vested interest can work to your benefit, then by all means go for it.

Trap #6: Letting the Consultant Take Control of the Project

Give specific instructions. Establish check points with clearly stated goals. And watch what the consultant does.

Follow those rules and you will avoid a common trap: giving the consultant too much free rein. Unchecked, the consultant will likely develop a program that does not solve your business problems.

"Don't abrogate your responsibility to manage the company," says Johnson. "You may feel as if you are limited in your ability to track what the consultant does, but realize that the consultant is limited as well - in the area of management."

The first step is to plan out what you need before interviewing consultants. Get the big picture. Then fill it in, one small job at a time.

Many managers resist taking a day out of their time to conceptualize, but that's where money might be better spent. When you understand what your problem is, you can better explain it to the consultant. You end up with what you needed in the first place.

"Set out what you want in plain English," says Lee. "Say what you want to accomplish and let the consultant translate it into what the software can do." Although something will be lost in the translation, your goal is to keep surprises to a minimum.

"You want to avoid coming to the end of the project and disappointed," says Lee. "You may say, 'it doesn't do X, which is critical,' and the consultant will say, 'when did we about it doing X?'"

Doing the big job in small increments will help avoid unpleasant surprises. "Develop your program like you would eat a rhinoceros," says Johnson. "Cut off a little piece at a time and eventually the rhino will be gone."

Trap #7: Agreeing to a Big Project Without a Second Opinion

Sometimes you just can't help it: you need to bite the bullet and sign a contract for a large scale project.

Just don't rush into a large scale project blindly "Before you sign a contract to pay a large sum of money, invest some time and money in hiring another consultant to review any large proposal," says Betts. "If you pay $600 or so to someone who spots huge flaws in a plan, that's money well spent."

Be especially careful of overpaying for old hardware, or for specialized software that no one else can work with. If the vendor goes out of business you may face the heavy financial burden of replacing your entire system and starting from scratch.

If you follow the guidance in this article you will go a long way toward sidestepping the most common- and costly-traps when hiring a computer consultant. But there is one final hurdle to overcome: Don't forget that the computer consultant has access to your company data. Can you trust this person?

"Most horror stories boil down to a breach of one of two kinds of trust," says Johnson. "The first is ability and the second is attitude."

An untrustworthy person can create havoc with your business. Says Johnson: "Don't hire any consultant you can't trust as a human being."

RELATED ARTICLE: The 7 Biggest Computer Consultant Traps

* Overlooking experience reports from other businesses.

* Selecting a consultant who knows a lot about computers but nothing about business.

* Selecting a consultant without people skills.

* Selecting a consultant without the required expertise.

* Not ferreting out hidden vested interests.

* Letting the consultant take control of the project.

* Agreeing to a big project without a second opinion.

RELATED ARTICLE: What to Ask about a Potential Computer Consultant

Look before you leap, Prior to hiring a computer consultant, ask for a list of clients. Call those clients and find out if the consultant possesses the following qualities:

* Talks in plain English?

* Takes an interest in helping your staff?

* Understands business?

* Has expertise in the area you need?

* Responds quickly when you call?

* Been in business for a long time?

* Held relationships with some clients for a long time?

* Willing to work in small pieces, using check points with clearly defined goals?

* Listens to needs before offering solutions?

* Up front about any vested interest in a product?

* Has a back-up, in terms of a co.ague, who can take over if the consultant is not available?

* Brings the job in on time?

RELATED ARTICLE: How to Locate a Computer Consultant

Other businesses in your region are the best sources of referrals for prospective computer consultants. If you come up short with such an approach, you can obtain names of professional consultants in your region from the Independent Computer Consultants Association, 11131 South Towne Square, Suite F, St. Louis, Mo. 63123. Phone: [phone], or [phone].

You can also search for consultants in your region at the ICCA's web page. Tune your browser to http://www.icca.org

Be sure to ask consultants for references. Call the clients for experience reports.

Categories of Computer Consultants

1. Systems integrator. Specializes in getting off-the-shelf software to work together on your hardware. Writes only modest customization.

2. Contract programmer. Creates a custom system from scratch when there is no off-the-shelf software that can get your work done.

3. On-site consultant. Writes programs at your location, with extensive testing on your computers.

4. Vertically oriented specialist. Concentrates on a software category such as accounting, inventory control or manufacturing.

5. Horizontal specialist. Concentrates on a platform such as Windows 95, Windows NT, or UNIX, but works with a variety of software categories.

What Happens When Your Consultant Disappears?

Suppose your computer consultant writes you a lot of custom code that works just great - then leaves your state or goes into another line of business.

Who will take care of maintaining and improving your computer program?

"Consultants who disappear, or who are fired, often leave behind indecipherable code," says Vincent Harem, president of Aim High!, a computer consulting firm in Golden, Colo. "You can be stuck with a big bill when you have to hire another programmer to spend time figuring out what the previous person did." Not to mention expensive down time that occurs until the new consultant can get things back up to speed.

How can you avoid this problem?

If you are signing up with a consulting firm that has many consultants, ask one of the top executives what steps they take to make sure that another consultant can pick up the torch that someone else throws down.

"Be wary of agencies that are essentially 'body shops,'" says T. J. Lee, senior consultant at Prime Consulting Group, Winnetka, Calif. "They seek out independent consultants to fill your needs. But if the consultant disappears, you can get stuck with code that you don't understand." If you do use such services, make sure you grill them on their techniques for controlling the quality of their personnel, for assuring continuity when a consultant departs. Ask if they require that their programmers use a common set of templates so other consultants can easily pick up your code.

If you are hiring an independent consultant, make sure the person is agreeable to sharing code, and can give you the names of other individuals who can understand their programming style.

In either case, all code should be documented thoroughly.

Who Owns the Program Your Consultant Writes?

You own the program that has been written by your computer consultant, right?

Maybe not.

If an independent consultant writes customized code for you, the code belongs to the creator unless you have specific written contract stating that you own the code. And this contract should be reviewed by an attorney cognizant of intellectual property law.

Make sure you get a copy of the source code - the program written by the consultant. This can be a big help to another consultant who needs to work on your system.

Your contract with the consultant should answer the following questions:

* Who owns the custom program?

* May the consultant sell the same program to your competitors?

* If the consultant is using a third party software as the basis for customization, do you retain the license to use that software if the consultant leaves?