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30th January 2009

To consult, or not to consult?

In recent weeks there has been a lot of negative press about the use of consultants generally and more specifically in the sport and leisure sector.

One such story, which was run in The Telegraph, reported that a certain consultancy (not Strategic Leisure) has been paid £175,000 plus VAT in fees for a report into the use of temporary venues for London 2012. The objective of the consultancy project was to try to discover where (if at all) cost savings could be made by relocating some events, or by putting them into other existing venues.

Apparently the work involved 90 working days which equates to an average of around £2,000 a day. The firm concerned has now earned more than £1.75m from the Olympic project – a nice little earner.

The full report is not in the public domain, but a 13-page Executive Summary (heavily censored) is. This is a wholly unremarkable document. It concludes that there are almost no savings to be made, as relocation is not feasible for a variety of reasons.

In the same week, there were reports that the cost of consultancy fees in relation to the International Sports Village in Cardiff have totalled over £700,000 in the past three and a half years.

Whilst the amount spent on consultants in the sport and leisure sector is but a drop in the ocean compared to other sectors, it is not difficult to see why consultancy is often perceived to be a ‘gravy train’ and why in times of economic difficulty consultants are seen by the public as somewhere between Estate Agents and Bankers.

So I put myself on the spot. Is Strategic Leisure part of this gravy train and should we be thoroughly ashamed of ourselves? I seriously pondered this question and the cynics among you will not be surprised to hear that I answer emphatically NO.

Firstly our fees are about a third of those quoted above and in most cases our staff earn much less than they could command in other sectors and indeed our clients’ businesses. I know we offer value for money. Secondly we are not a generic consultancy that will work in any sector offering generic solutions. We are sport and leisure experts and passionate about what we do. We would not dream of (and neither would we want to) work in sectors we don’t understand. Thirdly and most importantly we are happy to let actions speak louder than words. For example we have helped our clients to enhance the quality of life of their residents and customers by generating over a £billion in capital investment in facilities and by enhancing their management. We are proud of what we have achieved with our clients.

I have no doubt that there are consultants out there that don’t care about their clients, the work they do or delivering value for money. We shouldn’t all be tarred with the same brush.

This got me thinking about the variety of ways that consultants are used and the roles they play. Here are some examples:

Covering Your Backside

It seems to me that the Olympic example above was purely a £200,000 ‘backside-covering’ exercise, to show that every angle had been considered. Often, the answer is known even before the work is started. I have no problem with this in principle – there is often a very strong case for independent confirmation or verification – but in this case it seems extortionate that such a simple exercise can have cost so much money. The big generic consultancy practices may give a level of comfort but paying for a name (to blame if things go wrong)can be an expensive solution.

Not Enough Time

Frequently we are called upon to undertake exercises, studies or programmes of consultation which are just far above and beyond the normal realm of the client’s day to day activity. In the case of a local authority, it might be a major building programme – say a leisure centre – which only gets built once every 25 years. Often using a separate firm to deliver this is the most cost effective route. Consultants can devote time to a project and bring expertise from similar studies.

An Independent Approach

Much of the work we undertake involves wrestling with issues which might have been causing rifts or conflicts in a community for years. The simple truth is that many projects, particularly involving the retention or loss of facilities or services, are very politically charged, with all kinds of opinions on all sides.

Using independent specialist consultants is often the only way to take a neutral path. We at Strategic Leisure are all hugely passionate about sport and leisure – it’s why we do what we do – but at the same time, we recognise that tough decisions sometimes have to be made, and that’s why it’s crucial to have a rigorous approach which is never built on preconception or assumptions.

Experience and Best Practice

For the precise reason that often (particularly in capital developments) you only get one shot, it’s crucial in my opinion to ensure you give the best possible chance of success.

This means strategies which are well thought through and achievable; business plans which are realistic, accurate and based on facts and figures, not speculation or hope; operational reviews which are carried out by people who know their industry.

Consultants can bring experience, dedication, knowledge and foresight (normally based on hindsight from the last time!!) to bear, based on a career spent on the cutting edge of an industry.

Many Heads are Better Than One

I think it’s been a historical truth that the sport and leisure industry in the UK particularly has often suffered from work being done in isolation, with little or no planning, or engagement of partners or broadening the pool of expertise and involvement.

There surely can be nothing more frustrating than deciding on a course of action and ploughing on serenely in a flurry of activity, only to realise that had one other group been involved, or put forward a view, an opinion or thought been heard, the conclusion could be 10 times more satisfying and successful.

By taking the time to listen to people, partners or stakeholders, not only are you helping them to feel engaged and involved with the process (and therefore more likely to take ownership and responsibility) but you’re also pooling your creative resources. You never know, the answer you are looking for might have been there in front of you the whole time.

And so if consultants are allowed to ‘milk the system’ and to generate ridiculous fees it is often not entirely their fault although it is obviously distasteful especially at the moment. The point is that there are consultants that know what they are doing and who provide valuable services at a reasonable cost that generates additional value. Some even care more about doing a good job than about making huge pots of cash!

Remember you get the consultants you deserve. Always have a clear brief and a rigorous selection process and above all know why you want to employ consultants in the first place.

We have a ‘Guide to the Use of Consultants’ and some template consultant briefs. If you want one of these free documents just ask.





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