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Consultancy Operating Models


Edward asks:
I’d like to find out different templates used to structure numerous business projects. I want to make sure I am covering all angles. Does this make sense?

Here’s my reply:
Methodologies differ from consultancy to consultancy; so the easiest way to get a sense of this is to ask colleagues how they structure their jobs – generally I find people are happy to share their operating models.
So if I’m understanding your question, here are some of the structures i know of:

  • charge the client a flat fee for a prescribed scope
  • work on retainer
  • work by the hour or by the day (“do and charge”)
  • work on a percentage of profit or improvement the client makes (difficult to reinforce)
  • work on a fee per head of someone using your product or service
  • charge consultants to use your IP (a program, a diagnostic tool for example), on a per instrument / per head basis and provide all support for free (then both of you profit when they do well)

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