Posts Tagged ‘contracting’

Contractor or Consultant

Sunday, March 7th, 2010

I’ve been giving some thought this week to the idea of developing and deepening project management skills in an organization. During the latest cycle of downsizing, a number of companies questioned why they needed dedicated project managers. They asked, “why can’t my department managers do that job?”

Well, we know the answer to that is at least two sided. First, they need the skills and then they need time. Department managers learn to put out fires and ‘deal’ with problems. They don’t achieve success by keeping their boss informed of problems and challenges and they don’t necessarily provide periodic status reporting. And, they have day jobs. They can’t set aside their day job to do a project.

The reality right now is that operations and projects are getting mixed together. Whether that can be successful in the long term is questionable, history doesn’t predict that it will be, but I think in the short term, there’s a way to support businesses through successful project delivery.

Some project managers who go the self employed route set up as contractors. They go in and do a great job managing a project and then they get out.

Others go the route of consultant. They may still go in to do a project, the difference is that while there, a consultant will look for opportunities to improve processes, set up new ways of dealing with projects in the future and leave lessons behind purposefully.

From a perspective of the business, project management contractors fill in shortages of capacity. Too many projects for a short term to complete with internal leadership. As the company grows, some of the contractors will be invited to become permanent employees.

For the business person, a consultant will suggest changes to improve, streamline, and change, the business processes to increase capacity of the internal team. As the company grows, consultants are asked to do more of this work and may temporarily fill a gap in competency.

The world needs both, contractors and consultants, as much as it needs employees. The key to success for the project professional is to know which you are, consultant or contractor. The key to success for the business person is to know what you need.

Have a successful week.