• Login
• Contact Us
• SPE.org

The Role of a Consultant—What Is It Really?

The title of the article might cause one to pause momentarily since I am sure that we all know what a consultant is and what his associated role should be. I am equally sure that if one were to ask a group of consultants the same question, the answers would be interestingly varied. As an engineer, consultant, and ultimately, a business owner, I take this opportunity to distill more than 25 years of experience that I have used to build a leading consulting organization, while sharing some of the more controversial issues that arise.

Dictionaries proclaim that a consultant is an expert who gives advice. Additionally, it is believed that the word consultant has been used for some time, since before 1892. So, what is it that has driven the need for this “species” from as far back as the 19th century? The answer is simple and partly has to do with the expertise factor, but, above all, it has to do with the time/money factor. A client employs a consultant to get something done more quickly (and, one hopes, better) than he could have done it himself given his lack of available and qualified resources. As a result, the job should cost less. In addition, the value added must always be significantly greater than the value paid out. 

Consultants are prevalent in a number of industries including medical, aerospace, transport, and construction. The energy industry is no different, and one comes across a wide spectrum of, on the one hand, independent consultants and, on the other, larger organizations geared to take on and execute large projects. Wherever you are in the spectrum, there are a number of fundamental prerequisites that define a true consultant. These include the following:

Expertise. This comprises the technical and, possibly, commercial background necessary to address the problems at hand and deliver a successful solution.

Experience. Armed with the technical know-how, this relates to the fact that the individual or company has successfully executed the type of work currently under consideration.

Deliverability. No matter how smart and how experienced one is, if one cannot deliver on time, on budget, and to the client’s satisfaction, then it is all for naught, and the client’s time and money have been wasted.

Integrity. This is a key element in today’s business environment and hinges on one doing what one says one is going to do while ensuring that there are no conflicts of interest along the way. This is especially important given the fact that a consultant is usually exposed to sensitive client data that must not be seen by any third party. Sanctity of contracts is key, whether constituted on the basis of a handshake or resulting from a 20-page document.

Service. This is a difficult one and one that does not come easily, particularly to consultants who previously have worked in oil companies. It relates to the mindset that

1. The client is always right—or at least most of the time.
2. You are there to advise, and that is it.
3. Once you are finished advising, you must not overstay your welcome.
4. If you do a good job, you may be called back, but this should not be an expectation.

Value added. There must always be an element of clear and resounding value added for the client to feel satisfied that he has received what he paid for and then some.

Having detailed what should make a consultant successful, one might ask what the barriers to long-term success are.

These are summarized in what I call a series of effects:

The “charlatan” effect. I have come across the gamut from bogus degrees to the selling of snake oil. Not to mention the claims of working on projects that never really happened. One is reminded of the quip about summing up the years of experience in a resume and finding a 130-year career.

The “I will play with the big boys” effect. This appears to be fairly common nowadays when consultants are asked to “participate” in the “upside” of the field. So, in one fell swoop, the consultant has become a producer. Now what is wrong with this picture, I wonder? I will let the barrage of lawyers employed by the various “real” producers out there attempt to answer that question in the context of “conflict of interest.”

The “holier than thou” effect. There are consultants out there who, having established some degree of expertise in an area, suddenly become the proclaimed mouthpiece for that area. Naturally, they act as the one and only “go to” guys with rates that are commensurate with this pedestal.

The “conflict of interest” effect. A true consultant is ambivalent about what tools are used to execute the work. The tools must be best in class and fit for purpose. Indeed, he must be able to recommend to the client what software should be used on a project, with the client making the ultimate decision. The client, on the other hand, must have a say-so in what is used because he is paying for the tools one way or another. So, anyone pushing in-house developed/marketed software is, by definition, conflicted despite whatever assurances are provided to the contrary.

The “I do not need to listen” effect. Many consultants believe that they really do know it all and that they can diagnose the problem before the client has even verbalized what it is. As a result, they are off on a solution track that is, more often than not, tangential to a convergent solution. Naturally, time is being billed to the client in the process.

The “get rich quick” effect. The industry is cyclic in nature, meaning that there will be buoyant times and there will be not so buoyant times. There are some who subscribe to the philosophy that gouging when times are good will put them on the Bill Gates ladder to great wealth. What they tend to forget is that the industry maintains a memory that is almost elephantine in nature and that next cycle around, they will scrape the bottom of the barrel.

So where does all this leave us? The industry is very much buoyant. Oil prices are staying at a level where previously marginal fields have now become economical. As a result, novel technologies are being pursued. This provides an excellent opportunity for many players in the consulting world to exhibit their wares and secure business that is ultimately intended to add value to their clients, the energy companies. The value added needs to be clear and succinct and, in return, compensated for on the basis of fair market value. To accomplish these objectives and achieve the ultimate goal of “sustainability,” the go-forward plan is quite simple—find more and produce more. That is a simple mantra to keep in mind, which should also help us consultants to “stick to the knitting” while “delivering the goods.”

The latter two clichés should not be taken lightly but rather should be considered in the face of a client/service-provider relationship that should maintain an interface that must not be blurred and a responsibility that must not be infringed upon. Suffice it to say that, if the technologists at the manufacturer of the O-rings on the solid boosters straddled by the space shuttle Challenger were allowed to do their job and present their recommendations, things might have been different.

The consultant has a clear and important role to play. He must understand it, embrace it, and be allowed to play it. If these business elements are met, and if the prerequisites discussed earlier are checked, then there should be nothing to hinder a long-term successful and harmonious relationship between the client and the consultant.

• Archives
• SPE.org
• Advertising
• Contact Us