Are Two Consultants Better Than One?
Is it necessary to hire two consultants for the sake of independence?
Independence has now become an even hotter word as compensation and corporate governance remains under further scrutiny. Consultants hired by an organization to advise and assist with executive compensation and other complex issues are brought in and are expected to be "independent," with no conflicts of interest, no bias, and not susceptible to coercion.
However, as is often the case, the consultants are typically hired by either the board of directors, or the management team, and sometimes favor whichever side they were hired to "represent." As a result, in an effort to maintain the independent, objective approach consultants are hired to provide, companies are beginning to consider engaging two consultants - one to represent each of the "opposing" sides - Board vs. Executives.
This practice begs the question: Are two consultants better than one?
Even consultants themselves, in an effort to increase their sales opportunities, might tell you that it is best to hire two consultants: one hired by the board and one by executives. However, you must consider the ramifications of such a scenario with two consultants representing their respective clients. In this situation, each side would have their own approach and solutions to serve their own best interests. A series of negotiations would then follow to allow the sides to reach an agreement. It's almost guaranteed to cause undue friction, drag on indefinitely, and cost more than it should - with only the consultants coming out as winners.
Perhaps this would not be the best scenario after all. Perhaps there is a better answer.
Resource Consulting Group's experience leads us to believe the answer is one consultant with ETHICS . This six-letter word can make a world of difference-as anyone can see after reading recent business headlines. One consultant with ethical standards can eliminate the need for hiring two consultants.
For consultants, maintaining ethical practices will avoid the expected position of swaying your recommendations to any one side. One consultant operating with honest and fair objectives will be able to provide solutions that are right down the line and truly independent. This consultant should then be a good spokesperson in order to easily convey the right answers to both sides.
We actually believe the consultant, upon completion of the project involved, should sign an affidavit attesting to their independence and guaranteeing they were not coerced or swayed by any and all parties concerned (trust me, that will separate the wheat from the chaff very quickly).
In the end, an ethical consultant can save the company both dollars and headaches