In Search of…the Impartial Consultant
For a builder, the decision-making process starts with a well-documented set of goals and requirements for an information system. So far, so good. As you get further into it, you realize that most vendors fulfill “all your needs.” The further you go, the more confusing and murky the information becomes.
At this point, many builders seek the advice of an “impartial source” to separate the wheat from the chaff. Enter the information technology consultant whose job typically ranges from recommending technology solutions to implementing them. “This person will steer us down the right road, right?” asks the builder. The answer is, “It depends.”
Today’s world is threaded with alliances of one sort or another and there are plenty in the home building business. Put plainly, some consultants out there are really software salespeople in disguise. They take commissions and curry favors from the vendors they’ve cut deals with. In my opinion, that’s where the line is crossed.
Ask Potential Consultants How They Are Compensated
As a prospective software user, it’s important to know where to get straight answers. Many IT consultants are dedicated professionals who are very knowledgeable about the home building industry, its trends and what to avoid. In some cases their software recommendations come from relatively impartial perspectives. However, it’s vital to ask them what compensation, if any, they receive from the vendors they recommend.
All consultants, even those that aren’t motivated by money, have biases. And it’s simply impossible to be on top of all the existing technology options and still be skillful enough to know how to apply them to a specific user.
In professional circles it’s not unusual for a consultant to accept a modest finder’s fee from a vendor for providing a lead on a prospective user. This saves the vendor time and money on marketing and selling to the prospect. However, it isn’t ethical when the “consultant” receives a significant commission and the customer pays a bloated price for software of questionable value. That can happen when both a sales force and “partners” are involved.
How to Avoid the Technology Evaluation Trap
To stop yourself from falling into that trap, here are some tips for evaluating technology at the International Builders’ Show:
- Gather ideas and information from all available resources. Salespeople can give you as much insight as consultants can, and both can help you.
- It’s appropriate and in your best interest to ask consultants how they are paid and what compensation alliances they have with which vendors.
- Get a feel for a consultant’s scope of work. In addition to asking about the vendors the consultant works with, find out which markets they work in and whether they recommend technology solutions, help implement them or both.
- Be a sponge. Ask what else you should be asking about. Maybe you can’t ask 20 questions, but a salesperson or consultant can raise some you didn’t think of.
- Concentrate on what the vendors (and their software) you are investigating have done — not on what they will do.
- Find out who currently uses the software. Builders who use software you are investigating are your most impartial sources. They have worked with the software in their businesses and know its capabilities.
- Decide what software to buy only after you can visualize how it will work for you and your employees. This means you will probably not ink a deal until sometime after January.
Earlier Articles in This Series
- To read, “Know Your Technology Needs Before You Invest,” Part 1 of this series, published April 14, click here.
- To read, “Strategic Planning Software Can Help Focus Your Business Model,” Part 2 of this series, published April 21, click here.
- To read, “Does Your Planning Software Match Your Project's Sophistication?” Part 3 of this series, published May 5, click here.
- To read, “Don't Put the CAD Before Your Product,” Part 4 of this series, published May 26, click here.
- To read, “Manage Prospects and Buyers More Efficiently With Technology,” Part 5 of this series, published June 9, click here.
- To read, "Automate Your Selection and Change Order Processes,” Part 6 of this series, published on June 23, click here.
- To read, “Scheduling Software Can Improve Your Cycle Time,” Part 7 of this series, published on July 7, click here.
- To read, "An Effective Purchase Order System Enhances Efficiency," Part 8 of this series, published on July 21, click here.
- To read, "Don’t Fix New Software If It Isn’t Broken," Part 9 of this series, published on November 24, click here.
Note: Various software products are mentioned throughout the tech talk series. The intent is not to recommend these products as being right for you, but to identify some fairly well-known players and to note a few new ones. My apologies to vendors who are not mentioned — the omission was not intentional.
Bill Allen is president of W.A. Allen Consulting and a member of NAHB’s Business Management & Information Technology Committee. His company, headquartered in Redmond, WA, provides information technology consulting services and process management assistance to the home building industry. Allen can be reached at 425-885-4489 or via e-mail. Or visit the W.A. Allen Consulting Web site.
Want more information about using technology in your business?
NAHB’s Business Management Department offers a variety of online resources to help you run your business better and more profitably. Click Business Management Tools for articles about human resources, financial management, sales, production, technology, customer service and other business-related topics. In addition, visit the NAHB Software Users Network Discussion Forum (SUN) to ask technology consultants and other builders what they think of various software packages and applications.
BuilderBooks.com also offers a variety of publications about computer technology. To view or purchase these publications online, click here.
Subscribe to NAHB’s Business of Building e/Source
NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, click here on the members only side of www.nahb.org.
Be Part of the Technology Solution
Do you:
- Have questions about the Web?
- Want to learn how to make the best use of technology in your home building or remodeling business?
- Have technology tips to share with your peers?
Join the Information Technology Work Group — a sub group of the Standing Committee on Business Management and Information Technology — to brainstorm articles, booklets, Web content and other tech-related business management resources for NAHB’s members from 3:30-5:00 p.m. Saturday, Jan. 17, in the Las Vegas Convention Center (location details to come later).
E-mail Marcia Childs or Jill Tunick for information.
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