Thank you! I do find that having clever questions in my toolkit really helps. The best case in my view is when the questions are internalised, so they just come to you without even needing to ask them!
Hey Andrea and your colleague, thanks so much for this helpful article! I’m really grateful for your insights. I’ve been thinking about a common question that consultants often face: why don’t we take more responsibility for the outcomes we create? It’s easier to say that we don’t than to actually do it. Another thing I’ve been struggling with is how to position our value and impact over price. I know it’s not always easy to convince clients that our services are worth the investment, but I’m determined to find a way to make it work. Any advice you can give.
Based on my experience, consultants can’t realistically take responsibility for factors beyond their control, like ultimate outcomes, since so much depends on client execution and external circumstances. However, we should absolutely take responsibility for making recommendations that are thoughtful and responsible - that means thinking ahead about unintended consequences and being clear about the assumptions and risks involved. In short, I'd argue that we can't take responsibility but should behave responsibly!
On the value versus money point, I’ve noticed that while “value” takes center stage in pitches and early conversations, in actual proposals and contracts, finance teams tend to focus on budget, resourcing and deliverables they can measure and sign off on. As a result, the discussion often shifts to breaking down value into time, effort and concrete outputs, rather than broader impact. So the challenge is to keep the focus on value in early discussions, but then recognise that, at the end of the day, approvals usually hinge on more tangible and quantifiable deliverables.
To your first question: professional services firms are shifting more from time & materials-based pricing to value-based pricing. Instead of charging by the hour or a flat rate for a deliverable, they determine what an outcome is worth to the client and price it accordingly (for example saving 10M in taxes). In some cases, they can also agree on gain sharing; meaning if they realize the outcomes they get a percentage of the gain, but if not, they take home less profit. However this does not apply to each situation, and Andrea's point that we cannot always take responsibility still applies. Frankly, sometimes organizations can act incredibly stupid and you need to cover yourself.
To your second question: Most important is to start with truly understanding the client, their business and their pain points. Only then can you develop a solution which brings value - at least in a way that the client will understand. You also need to ask yourself what is the client's definition of good and is your approach giving them what they want. As Andrea says - you need to keep the focus on value in your client discussions. To make it resonate even further, you need to add on client insights that make it specific, and ideally you need to make it surprising. Does it add value beyond what was written in their request or what they would expect? Because if you just tick all the boxes then the client will indeed look at your price to make the decision. But what you want, is to make your value proposition so spot on, that it will also justify a higher price point.
Great points here! 👏🏼👏🏼 And I think this also shows that consultancy is a pretty broad spectrum. I don’t tend to encounter clients like these, but this is likely just a reflection of my sector.
Thanks. Great insights! I love the list of the ten questions. These help to move things in the right direction.
Thank you! I do find that having clever questions in my toolkit really helps. The best case in my view is when the questions are internalised, so they just come to you without even needing to ask them!
Yes, that’s right.
Hey Andrea and your colleague, thanks so much for this helpful article! I’m really grateful for your insights. I’ve been thinking about a common question that consultants often face: why don’t we take more responsibility for the outcomes we create? It’s easier to say that we don’t than to actually do it. Another thing I’ve been struggling with is how to position our value and impact over price. I know it’s not always easy to convince clients that our services are worth the investment, but I’m determined to find a way to make it work. Any advice you can give.
Based on my experience, consultants can’t realistically take responsibility for factors beyond their control, like ultimate outcomes, since so much depends on client execution and external circumstances. However, we should absolutely take responsibility for making recommendations that are thoughtful and responsible - that means thinking ahead about unintended consequences and being clear about the assumptions and risks involved. In short, I'd argue that we can't take responsibility but should behave responsibly!
On the value versus money point, I’ve noticed that while “value” takes center stage in pitches and early conversations, in actual proposals and contracts, finance teams tend to focus on budget, resourcing and deliverables they can measure and sign off on. As a result, the discussion often shifts to breaking down value into time, effort and concrete outputs, rather than broader impact. So the challenge is to keep the focus on value in early discussions, but then recognise that, at the end of the day, approvals usually hinge on more tangible and quantifiable deliverables.
I agree with Andrea. In addition:
To your first question: professional services firms are shifting more from time & materials-based pricing to value-based pricing. Instead of charging by the hour or a flat rate for a deliverable, they determine what an outcome is worth to the client and price it accordingly (for example saving 10M in taxes). In some cases, they can also agree on gain sharing; meaning if they realize the outcomes they get a percentage of the gain, but if not, they take home less profit. However this does not apply to each situation, and Andrea's point that we cannot always take responsibility still applies. Frankly, sometimes organizations can act incredibly stupid and you need to cover yourself.
To your second question: Most important is to start with truly understanding the client, their business and their pain points. Only then can you develop a solution which brings value - at least in a way that the client will understand. You also need to ask yourself what is the client's definition of good and is your approach giving them what they want. As Andrea says - you need to keep the focus on value in your client discussions. To make it resonate even further, you need to add on client insights that make it specific, and ideally you need to make it surprising. Does it add value beyond what was written in their request or what they would expect? Because if you just tick all the boxes then the client will indeed look at your price to make the decision. But what you want, is to make your value proposition so spot on, that it will also justify a higher price point.
Hope this helps!
Great points here! 👏🏼👏🏼 And I think this also shows that consultancy is a pretty broad spectrum. I don’t tend to encounter clients like these, but this is likely just a reflection of my sector.