THE CONITTEL SERVICE MODEL


A Description of the CONITTEL Alternative Approach to Consultancy!

 

 

Introduction

 

Organisations that buy in Consultants frequently find that they are dissatisfied with the experience. They often feel that they do not receive the expected benefits from the ‘deliverables’ or that the ‘deliverables’ were expensive and were not good ‘value for money’. Outsourcing is in reality only an extension of normal Consultancy services. The dissatisfaction experienced by organisations with Outsourcing is very similar to that experienced with normal Consultancy.

Using the Conittel Service Model avoids these problems

 

 

 

The Problem with Consultants

 

When organisations employ consultants they often end up being less than satisfied with the ‘value for money, they receive. 

The problems tend to fall in to 3 categories: -

-         Recommendations are frequently of the ‘Either Or’ variety. Clients are presented with recommendations that are in reality no more than a list of options. Clients obviously do want options, but they also want specific recommendation that the consultant is willing to support and which will clearly identify the  ‘value add’ benefits that they expect to obtain if they implements the consultants recommendations.

 

-         Even where Consultancy contracts have ‘value added’ recommendations there is rarely any link between the fees paid to consultants and the degree to which the recommended ‘value add’ benefit are realised by the client. It really is surprising how many Consultancy contracts neither specify ‘deliverable’ nor have SLAs as an integral part of the contract.

 

-         In large Consultancy organisations there is significant pressures to ‘on sell’ their own internal implementation and delivery services. It is therefore not surprising to find that the implementation services included in any recommendation are frequently from the same organisation providing the Consultancy. It may not necessary be the best solution and it is certainly not unbiased.

 

                       

 

The Problems with Outsourcing

 

Outsourcing can bring major benefits to clients in specific individual business environments. Normally it should only be considered in the following environments: -


-      Organisations that do not have the skills or knowledge in-house to deliver the functions being outsourced.
- Skills that are in very short supply and are also in very high demand.
-     Where the activity being outsourced is subject to widely fluctuating monthly/seasonal variations and therefore, it is more cost effective to buy in as an external service.
- Where the client wishes to pay on a transaction basis i.e. where the cost is related to volume of activity.

 

Examples of specialist business environments where outsourcing can be beneficial.

-      System software development where the client does not have in-house systems development capability.
- Web & Internet Services
- Networking & desktop support services.

 

 

 

Environments where Outsourcing is not appropriate

 

Normally the outsourcing of established in-house business functions together with associated human resources and transfer costs (TUPE), are more expensive than retaining in house. It is much more cost effective to re-engineer in-house business processes and functions to be much more efficient than to outsource the service. Outsourcing is not a ‘catch all’ solution for business problems and except in those specific environments already described Outsourcing does not generally reduce costs, in either the medium of long term.

 

 

 

 

How does Conittel Service Model avoid all these Problems?

 

A different approach to Consultancy: -

 

-         Conittel always offer ‘added value’ recommendations, which include defined benefits that utilise the proven successful SMART process methodology.

The Acronym SMART stands for: -

-         Specific Benefits

-         Measurable Benefits

-         Achievable Benefits

-         Results Driven

-         Time Bound

 

-   Conittel does not have any in-house software development or maintenance services and is therefore is not under pressure to try and ‘on sell’ these other in-house services. Recommendations as to whom should deliver and implement operational services should be based on capability to deliver, together with best value of money. Clients can only have total confidence if recommendations are genuinely unbiased and independent. Because of its independence Conittel can guarantee impartiality. In addition Conittel will underpin the SMART methodology with SVAs (Service Value Agreements) which are contractual commitments to deliver those agreed benefits.

-         Conittel offers services to project manage the delivery of any recommended solution, on the Maitre d’Oeuvre (Master of Works) principle. I.e. Conittel acting on behalf of the client as its Managing Agent. Conittel will manage and integrate on behalf of the client all the various delivery elements both internal and external to ensure that a successful holistic solution is delivered. Conittel fees will be based on the successful delivery of the ‘Value Added’ benefits of any project

 

-         The use of external organisations for the delivery of specific niche elements of a total project is not outsourcing. The client remains in complete control of the delivery of the project, either directly, through his own personnel, or though his Maitre d’Oeuvre. Conittel will only recommend an external delivery agent where the skills required do not already exist within the client’s organisation.

 

 

 

Risk with Reward

 

-         Conittel prefers not to sell its services on a  ‘Body Shopping’ basis but to charge a fixed price against delivering a set of key services as defined by SVAs in the contract, and through the utilisation of SMART processes. Payment terms are normally constructed around two elements.

 

-         A regular fixed monthly fee paid for the specified duration of the contract.

-         The residue of the fee is paid on achieving the agreed deliverables at agreed milestones.

-         Conittel Contract terms are therefore very similar to that of a normal supplier contract with defined deliverables, SLAs, and regular payments.

 

 

 

How is Conittel able to offer this type of commitment?

 

-         It is very simple! Because of the wealth of experience that Conittel has in managing large complex project Conittel is prepared to underwrite the risk through linking fees to performance. Many Consultancy organisations propagate the myth that delivering Intellectual services is much more complex than other types of service contracts. They think that they can convince clients that the contractual terms of these types of services should be treated differently. Rubbish! It is just a clever excuse to charge high fees with little risk!

 

 

Conittel offers real ‘Added Value’ services, the benefits of which the client can easily measure. If you want further details about the Conittel Service Model then contact Conittel.

Contact name John Hales.

Office 01 16 28 71 08 0

Mobile 07 71 39 89 46 5

Email Conittel@which.net