Wanted high-tech help.

Once you've made the commitment to upgrade or overhaul, don't go it alone. Here's how to pick the right consultant for the job.

EARLY LAST YEAR, DENISE

Blake realized that her organization's Web site wasn't doing its job. The few visitors that did stop by didn't stay long because of outdated information and unattractive design. As manager of special programs for the Congressional Black Caucus Foundation (CBCF), Blake knew the Web site (www.cbcfnet.org) had to be updated and modernized, especially if she was going to use it to encourage people to register for their annual conference.

Realizing she needed help, Blake conducted a Web search for African American Web site designers and e-mailed requests for proposals to them. Several responded via e-mail, but Ken Granderson, president of Inner City Software (www.innercity.com), a Boston firm that specializes in interactive Web site consulting and development, was the only one to place a phone call as well. The call, and subsequent conversations, led Blake to contract Granderson's firm without ever meeting him face to face.

In the first three weeks after its redesign, the CBCF's Web site received 2,500 downloads of its conference registration form, thanks to the additional graphics and interactive capabilities installed by Inner City Software. Next on tap for the site: internship and scholarship applications, online reproduction of CBCF research papers and audio and video clips of conference proceedings.

Many business owners find themselves in Blake's position--with a business or equipment problem they want technology to solve and not sure which solution is best. That's where a technology consultant can come in handy. However, there are some things a business owner should do before bringing one in.

ANALYZING WORK FLOW

Having an accurate concept of how your organization works is the first and most important step when deciding to engage a consultant. Identify exactly what each of your organization's departments is responsible for and how they interact. This will help you articulate to a consultant what business problem or process you wish to improve through technology.

Work flow analysis can help you decide which functions (e.g., accounts receivable, payroll, personnel) can be automated to improve the way information moves through your organization. It will also help you prioritize your implementation. If you can't do this yourself, have a consultant help out. David Pinkerton, senior vice president at Lakeside Bank in Chicago, says they had not documented their work flow before engaging Blackwell Consulting Services (BCS), a Chicago-based information technology consulting firm, to redo the network that connects their five branches. "They did a very detailed analysis of our network requirements," says Pinkerton, "after interviewing all of our key personnel to understand how the whole bank works together." Such an analysis will ensure that you direct your energy and dollars to the root of the problem and not its symptoms.

CHOOSING A CONSULTANT

Once you know what you want the technology to do, you need someone to help identify a solution. But where do you find the right consultants? While there are several avenues to take, from the Internet to the Yellow Pages, one of the more reliable ways is through referrals. Ask some of the businesses that you deal with for the names of technology consultants.

Once you have a list of prospects, determine what qualitative and quantitative criteria you're going to use to select the consultant and evaluate their progress. "These factors should all be decided on up front, so your selection is not based on a sales pitch where the consultant will tell you what to measure them by, which they'll do if you let them," warns Hilton H. Augustine Jr., CEO of Global Management Systems Inc., a high-tech company in Bethesda, Maryland, that designs, develops and manages network systems.

Important factors to consider should include how established the business is, its clients, responsiveness and level of expertise. Also, consultants may be certified through industry organizations such as the Institute for Certification of Computing Professionals or major vendors such as Novell and Microsoft.

Ongoing maintenance and training is also key. "It was very important that our consultant not be a fly-by-night company that would come in, do the lowest bid and be gone the next day," says Pinkerton.

Other factors to evaluate include the firm's familiarity with the latest technologies, past assignment completion records, efficiency rates and whether the work is going to be done at the consultant's site or your office.

Survey companies where the consultant has done the same type of work you're interested in. "Most firms gave us three to five [references], but we went beyond what they furnished us," says Pinkerton, who asked each candidate for 10. He then visited these banks to see their networks and asked about the consultant's reliability, timeliness, ability to meet the budget and willingness to stay in touch after the project was completed.

It's important to talk to someone at the executive level during your site visit to learn whether they were satisfied with the results, the consultant's approach to the work and the performance of the internal project manager assigned to oversee the tasks. Ask what criteria were used to make consulting decisions and evaluate delivery. Someone from the financial side can tell you where they are seeing a return on investment now that the project is completed. Finally, review all the deliverables and any kind of milestones that were set up for implementation and follow-up, including project management and status reports.

The written proposal you request from each candidate should help you understand what methods will be employed to implement your solutions, and evaluate whether the firm has employees qualified enough to handle your needs. The consultant should provide resumes and allow you to interview persons who will be doing the work.

The consultant should be checking you out, too. "Some were eager," says Pinkerton, "but others wanted to make sure that we were a firm that could absorb the type of technology they recommended and would pay our bills." Hilton Augustine agrees. "Seeing that a consultant has some kind of evaluation process for you as well shows that they wilt not just take anything they can get their hands on."

CREATING A TECHNOLOGY PLAN

"The consultant should do an analysis of your business and help you create a plan where technology can help grow, whether It be a five-year or a two-month plan," says Granderson.

In analyzing your business, consultants should understand your current state of technology and ask questions about your company's direction. In addition, they should determine how technology can support your business and give you a competitive edge.

Each prospective consultant's written proposal should outline the strategy--the beginnings of a technology plan--and estimate the time and costs involved in your project.

Equis Corp., a Chicago-based real estate firm, called on BCS to upgrade the company's database management application from Q3.0 to Q4.0.

"Conceptually, we were sure what we wanted," says John O'Brien, vice president of Equis, "but the actual design, implementation and all of the little practical details evolved during the planning." A detailed technology plan will develop from further work flow analysis, give-and-take meetings and research by both the consultant and the client.

"Our consultant e-mailed a step-by-step plan prior to the [Web site] redesign," says Denise Blake. The beginning of the plan outlined objectives that she wanted Inner City to accomplish. such as text replacement, graphic addition and color enhancement. "Then he went into things that I didn't know I needed. like online registration," she adds. The plan included information about e-mail capabilities from the Web site, satellite video conferencing ideas and general completion dates.

Your company's business plan can also be invaluable. "The technology plan should map to your business plan, which tells you what you're going to do. where you're going to focus and how you're going to make money in the future," says Robert D. Blackwell, president of BCS.

The following information also should be in your technology plan: a schedule of updates, what needs to be purchased, cost estimates, training options. warranty periods and support strategies.

WHAT ABOUT COST?

During the first couple of meetings, a business owner should evaluate how creative the consultant appears to be when working within certain bounds of constraint--such as a tight budget. For example, if the plan involves buying 20 PCs, it's wise to wonder about obsolescence. A consultant who's looking out for his or her client's best interests might recommend leasing equipment rather shall buying--or suggest ways they can make do with existing programs and equipment. In fact, the consultant should start by exploring additional solutions available through your existing technology. Find out what features you would sacrifice if you go with a lower-cost solution. If you can afford what the consultant is recommending, but they don't seem certain about what they're proposing, you shouldn't engage them. "Of the proposals I got, the prices quoted varied widely," says Blake. "But some consultants were proposing things I did not need and others neglected to give me all the options."

Every business starts from a different level of technology, ranging from ground zero to sophisticated, which means you may not have any idea what your expenditures should be. Not only should consultants be realistic and candid about what technologies cost, but also it's their responsibility to show you why you should invest in their recommended solutions and where the return on your investment will be.

For example, Pinkerton had unrealistic expectations about how much his Lakeside project would cost. "All of the consultants came in with a much higher figure than we expected, but that's because we had such limited knowledge. What we first budgeted was unrealistically low," admits Pinkerton, who had to buy 75 new PCs to get the project going. But when the work is completed, Lakeside employees will be able to fax from their desktop, e-mail internally and externally and dial into the bank's server from remote locations. Interestingly, while Pinkerton underestimated his costs by 150%, O'Brien's estimations for Equis' project were in the ballpark and Blake overestimated by 30%.

Also, consultants' rates are all over the place, ranging from $400 to $3,000 a day. The $400-a-day firm could be a five-person shop that sends a technician over to install a few applications on your PC. Heavyweights like IBM and Apple might send a trainer in to bring a whole office up to speed on the latest technology and charge $3,000 a day.

Some consultants use fixed-price contracts that cover a variety of skills and services. But the norm is to bill by the hour for as long as it takes to complete the project. The hourly rate works best for clients who have a specific request and understand the technology and its implementation.

STAY INFORMED

Just because you now have in hand a good technology plan doesn't mean your work is over. You must continue to make decisions throughout the process about the consultant's conclusions, recommendations, implementation and ongoing support.

CBCF's Blake suggests having the consultant keep you informed of their progress toward key objectives via written reports and status meetings. During their engagement, Inner City Consulting provided an added benefit by giving Blake a usage report. "It told us the number of hits our site had gotten and the number of downloads of our registration form," says Blake.

BCS and Equis had a different relationship during implementation, but it worked just as well. "Because they lived here with us, everything was very communal," says O'Brien, who has worked early mornings, late nights and even weekends with the four BCS consultants who will remain on site for the duration of the project. While designing the core of Q4.0, Equis and BCS would have a steering committee meeting once a week and subcommittee meetings every other day of the week. Lakeside also held weekly meetings with BCS consultants to discuss detailed progress reports prepared, in this case, by the bank's project manager. "These reports would list every task that was supposed to be done during that particular phase of the implementation and what percentage was completed," says Pinkerton.

A support strategy, identified during early discussions with your consultant, should include services such as on-site, telephone and on-call support. These arrangements are often defined in service level agreements, which lay out parameters such as committed response time, escalation procedures, problem tracking arrangements and fee arrangements. Most consultants will provide ongoing support for 10%15% of the cost of the project.

ONGOING SUPPORT

"One of our greatest fears was that the consultant would do the job and then disown the project," says Pinkerton. But not with BCS. The two firms have worked out a deal where BCS consultants will be available to Lakeside employees for at least six months after the project is completed.

Staying in touch with your consultant will probably reap more benefits than just working out the bugs in your new technology. Maintaining a relationship helps to ensure that the consultant knows what is going on in your business. They may be able to suggest new upgrades, applications or products that can economically replace something they initially integrated for you.

Engaging a consultant does not have to be painful. A bit of common sense plus adequate research and consultant communication should guarantee a positive experience.

RELATED ARTICLE: The TECH Commandments

1. Listening is a virtue. A consultant should listen to your needs and objectives before offering advice. Their primary task is to translate your needs into workable solutions.

2. Check for references. Ask about the consultant's relationship with vendors and other clients. Contact standard background checking organizations like Dun and Bradstreet, the Better Business Bureau, chambers of commerce and industry trade associations.

3. Be wary of technical jargon. Consultants who don't explain things in terms you can understand may not have your best interests at heart.

4. Inquire about the consultant's objectivity. Have them specify any special allegiances or financial incentives tied to specific products.

5. Know exactly who is going to do the work. Whether it's a contractor or a staff person, it's important to talk to (and investigate) whoever is slated to do the job.

6. Remember, you have a role to play too. Contribute ideas and take the time to understand what the consultant is implementing.

7. Be aware of other costs associated with a technology upgrade. Ongoing training, maintenance and lost productivity during implementation cost money.

8. An hourly or daily rate doesn't tell the whole story. The consultant should show you where your return will be and why you should invest in a particular solution. They should be realistic and candid about what technologies cost.

9. Beware of gung-ho consultants. Unless this new technology at least doubles a measurable aspect of your productivity, it's generally not worth the risk or the money. It is prudent to wait hardware or software from both a cost and functionality standpoint.

10. All information technology has some sort of life cycle. Have your consultant build in an on-site training and warranty agreement for malfunctions or mishaps.