We’ve brought in a number of high priced consultants to perform a business case analysis. In hind sight, it appears we could have done the same work with internal resources. Why then did we hire these costly advisors?

StrategyDriven Response:

There are many reasons for hiring consultants. One or more of these likely applied in your situation:

1. The consultants brought unique insights and experiences from outside your organization; enabling them to develop and present points of view that would otherwise have not been available for consideration.
2. The organization staff did not have the capacity to perform the given task. Therefore, the consultants were hired to augment the labor pool.
3. The existing staff had the capacity but not the knowledge and skills to perform the work. (Note that this appears to not be a factor given the question asked but is a legitimate reason for hiring consultants.)
4. The organization is reluctant to implement the recommendations made by those internal resources not viewed as being experts in a particular area. Subsequently, the consultants are brought in because of their ‘expert status’ that leaders know will enable them to move forward with a desired course of action.

The reason for engaging consultants should always be understood prior to hiring them. Clear, quantifiable expectations should be documented within the statement of work that define the value they are to bring to the organization whether that is external knowledge and experience, labor augmentation, skills augmentation, or to drive a particular perspective. The consultants must be held to the achievement of these established goals in order to ensure they have met the return on investment promised by their employment.

Final Thought…

Using consultants should always be on a temporary basis. Some organizations fall prey to hiring consultants for temporary staff augmentation only to find that these individuals remain in position for years if not decades. Such circumstances highlight an understaffing condition that should be alleviated by the typically less expensive option of hiring additional resources rather than engaging costly consultants for extended periods.

Additional Resources

StrategyDriven Contributors further highlight the benefits of using consultants in the article, Independent Assessors.

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When a job opens up in today’s economy, it receives a lot of attention. And no wonder: Over 15 million Americans need work. And if you’re a hiring manager, you may have found that the best way to shrink that pile of résumés on your desk is to weed out the seemingly ‘overqualified’ workers first. After all, you reason, those candidates will want too much money and will jump ship the minute they find a better offer. Right?

…And the Clients Went Wild!: How Savvy Professionals Win All the Business They Want by Maribeth Kuzmeski   Discover just how powerful your biggest fans can be! And the Clients Went Wild! gives you the tools to take an eclectic approach to your marketing, and pick the best, most wildly successful marketing methods – traditional, online, or both — to win at achieving your marketing goals. And, whether by means of Facebook, Twitter, streaming video, or by old-fashioned word of mouth, public relations, or personal sales skill, the goal is to win, right? Combine social media with traditional marketing techniques for breakthrough results! While social media is doing much to change the marketing landscape, it doesn’t mean you have to take an either/or approach between it and more traditional methods. Find real-life examples of success from some of today’s best businesses Shows how to integrate and benefit from both traditional and new marketing methods Uses the proven business growth strategy Red Zone Marketing® as a central concept Author has proven the concepts successful in her work for numerous major clients Don’t throw out tried and true marketing techniques just for the sake of the new. Do what works! Perfect your marketing mix and win with …And the Clients Went Wild!

Not necessarily. In fact, a recent Harvard Business Review article suggests that when you ignore these candidates you’re missing out on the opportunity to add highly qualified talent to your organization.

The article points out that ‘overqualified’ candidates tend to show a better work ethic, stay, on average, longer than less qualified candidates, and as long as they are empowered are actually happy workers.

To back up these assertions, the HBR article cites studies from folks at the University of Connecticut, the University of South Carolina, St. Ambrose University, and Portland State University, respectively, which show that overqualified workers are high performers, less likely to quit, and value autonomy.

Saying someone is ‘overqualified’ is basically saying he or she is too skilled or too experienced. The truth is, candidates with well-developed skills, a lot of working world experience, and the right attitude are exactly what you should want. When you ignore candidates based on your own assumptions or perceptions about what you see on their résumés, you run the risk of missing out on great employees.

Instead, take the time to connect with these candidates. Invite them in and learn what motivates them.

For years, I’ve been helping companies and individuals create strong business relationships that will help them get ahead regardless of their professions. I teach my clients how to connect with their customers in order to win business and build loyalty. These same relationship-building skills can help hiring managers connect with the candidates who are the right fit for their companies.

Read on for my advice on how best to approach the highly qualified hire:

Be open and honest about your concerns. If you have concerns about certain elements of the candidate’s experience, ask about it. If you see that a candidate has an impressive list of achievements, acknowledge them.

Don’t chuck someone in your ‘no’ pile simply because you might be a little intimidated by his achievements. Ask the candidate how he plans to use the skills that led him to his past achievements in the position you’re offering, but don’t focus too much on the past. Instead, find out about his current motivations and the goals he has for the position.

Connect with the candidate’s why. Your worries about a highly qualified candidate can be decreased when you connect with her why. Most candidates are not applying for jobs they seem more than qualified for because they are simply desperate for work – but many hiring managers never find this out because they discard these candidates’ résumés rather than invite them to come for an interview.

By connecting with the candidate’s why, you can learn her motivations for wanting a position. Even if a person was downsized, maybe she was burned out on what she was doing and wants to jump-start a new career. Or she may want to give up a higher level position in order to get back to something she enjoyed doing earlier in her career. You’ll be able to tell when she is explaining her reasoning and her motivations whether or not she truly has a passion for the job in question or whether she is simply willing to take the first job that is offered to her.

Recognize that highly qualified people require less training. If a job candidate has been around the block a few times, his adaptability to new situations and responsibilities will be better. That’s good news, because you and your managers will spend less of your own valuable time training him.

Plus, once you have him on board, it’s likely that you’ll find he is a great help to your other employees. Highly qualified candidates bring with them more life experience to pull from when challenging situations arise with clients or other coworkers. You will probably also find that you have added peace of mind knowing that someone who is highly skilled and experienced is hard at work for you.

Hire based on attitude. This might be the best piece of advice to heed with any hiring decision. As long as a candidate has the basic skills and knowledge required to get the job done, don’t spend time wringing your hands over whether or not she might be too qualified. If the person has a great attitude and is highly motivated, then you might want to give her a chance, especially if the other candidates are less qualified and don’t seem like they will fit in with the company culture.

Hiring is a tricky business. Sometimes it’s okay to go with the person you like the most. If that person also happens to be highly qualified, then it will only benefit you and your company in the long run.

Once you have them, empower them. As touched on above, the study from Portland State University found that overqualified employees who are given decision making power tend to be more satisfied with their jobs. The study performed by assistant professors from the University of Connecticut, the University of South Carolina, and St. Ambrose University examined data on more than 5,000 Americans. Those examined, according to the Harvard Business Review article, were high-intelligence workers in jobs such as washing cars and collecting garbage. With those studied, high performance was the norm.

By giving these employees autonomy, you show them that you have confidence in their abilities and respect the skills and qualifications they bring to the table. As a result, they stay with the company and often outperform their fellow employees.

The best thing you can do is ignore the myths about ‘overqualified’ job seekers. Think about it: These people became highly qualified for a reason – for the most part, they make fantastic employees. You want to hire the right person for the job, not the person you assume, sight unseen, is less likely to leave. By taking the time to connect with candidates and discuss their motivations and goals, you’ll be able to make that judgment for yourself.

About the Author

Maribeth Kuzmeski, MBA, is the author of five books, including …And the Clients Went Wild!: How Savvy Professionals Win All the Business They Want (Wiley, 2010) and The Connectors: How the World’s Most Successful Businesspeople Build Relationships and Win Clients for Life (Wiley, 2009). She is the founder of Red Zone Marketing, LLC, which consults with businesses from entrepreneurial firms to Fortune 500 corporations on strategic marketing planning and business growth. Maribeth has personally consulted with some of the world’s most successful CEOs, entrepreneurs, and professionals. An internationally recognized speaker, she shares the tactics that businesspeople use today to create more sustainable business relationships, sales, and marketing successes.

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A financial institution is completing an acquisition and needs to reallocate personnel across its existing branches. Given the skills, location and mobility of this work force, how should these resources be allocated most effectively?

In each case the answer is it depends. The best way to allocate resources depends on the nature of the resources, the constraints at hand and the organization’s mission.

Optimization involves designing a system or process to be as good as possible in some defined sense. Of course, it’s the “defined sense” that makes things murky. What’s optimal for you – with your goals and values – could very well be suboptimal for the next person. Every performance management paradigm, every mission statement, could point to a different definition of success – and therefore to a different way to “optimally” allocate resources.

How do you optimize resources in poorly defined decision-making environments – or in cases where scenarios are well-defined or ineffective? Effective resource optimization requires a certain rigor, consistency and agreement on processes. Whether you are developing a mathematical optimization or just trying to drive more effective and efficient use of resources across the organization, the resource optimization model should be based on the objective, decision variables and constraints.

Within this framework the purpose is to maximize or minimize, as appropriate, the performance metric in the objective by assigning values to the decision variables that satisfy the constraints. The following five steps can help you make the most of this optimization framework.

Five Steps to Resource Optimization

Step 1: Define the objective to reflect organizational mission and strategy
The resource optimization model must reflect not only the well-defined, often narrow departmental objectives but also the objectives that are most important to the organization as a whole. There also needs to be an understanding of how activities will support these objectives, and how success or failure will be measured.

Step 2. Get executive buy-in and foster accountability
It’s not enough for executives to agree on the goals, business rules and constraints, and decisions that will be made. Putting the “best” choice for each decision variable into action requires accountability and commitment from implementers and executives.

Step 3: Define the conceptual resource optimization model
To define the model, you first need to determine what input data is available. The cleaner and more accurate the data, the better. The more historical depth and relevance, the better. Next, identify variables that can actually be changed and decisions that can realistically be made in this organization within the given time frame.

Step 4. Formulate the resource optimization model
This step is the translation of your conceptual model into an analytic model with more rigor and detail, represented in mathematical terms. In this step you begin to formally code the key elements of the optimization model – objective, constraints and decision variables. There is no single “right” way to use mathematical expressions to represent the elements of a decision problem. Every formulation represents a compromise because no mathematical representation can reflect every detail of a real-world scenario. Good modeling balances realism and workability.

Step 5. Implement and update the model
Using analytical software such as SAS, build and implement the model. Its output can provide recommendations as to the best values of the decision variables to support the objective, given the constraints and data available.

Test the optimization model for suitability. Training and experience will help you to choose the best model. It’s important to understand how well the model works in the real world and to incorporate the knowledge from previous versions of the model into future ones.

Analytical models must be validated and continually updated. Best practices for resource optimization are tied to
performance management by answering questions such as: “Were recommended decisions put into action?” and “Were those decisions effective in driving improved alignment with organizational goals?” If the results were not what you would expect, revisit the model to determine whether objectives, decisions, constraints, resources and other elements are properly identified to reflect your current reality.

Commit to resource optimization
Changing conditions will warrant corresponding changes in your resource optimization models. Periodically cycling through this five-step process will help organizations highlight areas to improve as they update their models to generate insights that continue to be relevant and valuable. A commitment to resource optimization will help to ensure that your organization remains focused and productive in an ever-changing competitive environment.

This article was republished with the permission of sascom Magazine.

	Ed Hughes is a SAS Product Manager and frequently published SAS Institute author and conference presenter. He has co-authored numerous papers including: What’s New in Optimization with SAS/OR, Exploring System Performance with SAS Simulation Studio, and Five Steps to Resource Optimization. Ed holds a Master of Science degree in Operations Research and a Bachelors degree in Mathematics.
	Becca Goren is the Worldwide Marketing Manager for Communications, Media and Entertainment at SAS; driving the go to market strategy and positioning for these industries. While at SAS, she has led research studies, authored white papers, articles, and blogs and spoken on leveraging business analytics to improve performance. Becca has also acted as the product marketing manager for a wide array of technology solutions.
	Mary Grace Crissey is the Analytics Marketing Manager at SAS, where she follows her passion for applying mathematics and advanced analytics to real-world challenges. She holds an MS in Management Sciences from the University of Maryland. Mary Grace holds leadership appointments with several professional societies including Knowledge Discovery and Data Mining and the Institute for Operations Research and the Management Sciences.

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Ongoing assessment of resource availability should be performed for those personnel, material, equipment, and financial resources required to perform operationally significant activities and achieve strategic goals. Some examples include:

[private]Operationally Significant Activities

• major facility overhauls
• peek production periods

Strategic Goals

• asset construction
• new product development
• service line or offering expansion

Some market factors to consider for each resource type include:

Personnel

• number of individuals available within the workforce possessing the required knowledge and skills
• pipeline health including:
• projected number of workforce entrants
• availability of uniquely skilled recent military veterans
• training availability including internal training programs, trade schools, and colleges and universities
• entrant interest and fit with the organization and industry
• market opportunities enticing existing worker attrition
• demand for critical personnel resources by other organizations and industries in both the near and long-term

Material

• existing and projected material demand within the local, regional, and global marketplace
• existing and projected material supply within the local, regional, and global marketplace
• lead times for strategic materials and trends
• pricing of strategic materials and trends

Equipment

• existing and projected equipment demand within the local, regional, and global marketplace
• existing and projected equipment availability within the local, regional, and global marketplace
• pricing of strategic equipment (purchase and lease) and trends

Financial

• existing and projected competition for capital resources
• existing and projected credit availability
• cost of credit and trends

Final Thought…

It is often helpful to first identify potential sources of competing resource demand. Be creative. Demand for your company’s needed resources will originate from other companies in other industries and in today’s global marketplace, from other countries as well. Likewise, don’t forget to include global sourcing when assessing the resource supply.

Availability of critical resources often dictates an initiative’s viability. As such, consider creating externally focused performance measures to monitor supply and demand of strategic resources with action triggers defined to initiate further analysis or other decision-making.

Additional Resources

Trade associations and industry groups are often a good source of refined information regarding resource availability. Many provide Congressional testimony and make other public presentations; making this valuable information publicly available. Remember, other industries competing for like resources may be supported by similar organizations providing a view on these resources also. Consider these data sources especially if no industry specific studies are available.

Absent this refined information, a wealth of raw data can be obtained from government sources such as:

• FedStats – www.FedStats.gov
• Bureau of Labor Statistics – www.BLS.gov
• US Census Bureau – www.Census.gov
• Bureau of Economic Analysis – www.BEA.gov

[/private]

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Personnel resource sharing requires individual availability and skill matching. Optimally, an individual possessing the needed, not excessive, skill in one workgroup is available to augment the receiving workgroup for the exact period of time necessary to complete the work assignment. This situation is difficult to achieve not only because of the idealistic pairing of skills and availability but because of the challenges associated with identifying well suited, available resources across the organization. While difficult, the optimal pairing of the organization’s personnel resources with its work is enhanced through effective execution of the following programs:

Skills Matching

• Alignment of the Organization’s Qualification Designations – common qualification designations assigned to individuals meeting like training, testing, and performance standards
• Cross-Qualification and Cross-Training – an organizational expectation that individuals gain proficiency and become qualified to perform a variety of tasks
• Standardized Processes and Procedures – common work methodologies for which individuals are qualified and become proficient. Organizational alignment exists in both documentation and execution. Examples of standardized work processes and procedures include:
  • work order planning and execution
  • clearance/safety tagging
  • permitting
  • problem reporting
  • material/parts requisitions
  • time reporting
• Consistent Procedure Formatting – work controlling documents possess a common format and contain standardized information sets
• Common Work Performance Standards – expectations for how work is to be performed, such as safety and quality standards, are commonly shared and equally reinforced across the organization
• Use of Common Applications and Tools – computer systems and physical tools used to document and perform work are common to all workgroups within the organization

Individual Availability

• Use of a Standardized Work Scheduling Process – policies for the development of work schedules are common throughout the organization
• Common Work Break-In Policy – rules governing circumvention of the planning process are consistently applied across the organization
• Consolidated Resource Management Program – standardized policies effectively control the planned availability of workers including:
  • vacation scheduling policies align the scheduling of extended time off with the work scheduling process
  • training scheduling practices align the scheduling of time intensive training courses with the work scheduling process
  • common set of company holidays shared among all business units, sites, and workgroups
• Personnel Resource Visibility – tools are employed that make personnel availability identifiable to all workgroups potentially needing the individual’s skill set. Individual visibility exists for both skills and availability
• Inclusion of Personnel Resource Absences in Work Schedules – personnel resource availability is considered in the work schedule’s resource loading process

While possessing skilled and available individuals and having the means to identify them, many organizations will still not effectively share their personnel resources. Culturally, these organizations do not value sharing; their leaders focusing less on the organization’s overall success and more on what their individual workgroup can accomplish. Subsequently, the final cornerstone in the foundation of effective personnel resource sharing is the commitment of the organization’s leaders; a commitment that is acted upon and reinforced.

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Parkinson’s Law
Wikipedia

There exists a tendency among workers to use all of the time allotted to perform a task even if the work can be done in a shorter period of time. Some organizations, through high accountability and managerial engagement, minimize the amount of lost time caused by unnecessary work expansion. In other organizations, however, a lack of managerial oversight and reinforcement of high performance standards allows the Thieves of Time to rob the organization of precious productivity.

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Organizations are complex creatures comprised of personnel with varying personalities, talents, needs, and aspirations. Increasing this complexity is the wide array of organizational possessions: tools and materials, physical and intellectual properties, and financial instruments. Ordering this complex collection of resources to ensure the efficient, highly engaged use of all of the organization’s assets is the function of the resource management program.

Processes associated with an organization’s resource management program vary between the strategic and the tactical. Within the realm of strategic planning, resource management encompasses the processes and activities of performing annualized projections and monthly/weekly capacity planning. Extended into the tactical arena of business execution, resource management involves scheduling; acquisition; retention; maintenance and development; and termination, retirement, and release/disposal of assets.

Resource management, whether strategic or tactical, focuses on personnel, material, land, intellectual property and financial instruments. In strategic planning, resource management processes group assets into large categories based on common characteristics. As processes narrow their focus from long-range to tactical resource planning, asset focus becomes more specific; even to the point of uniquely identifying the asset to be involved in an activity.

Focus of the Resource Management Topic

Articles in this topic area are dedicated to discussing the leading practices of companies successfully executing a resource management program in support of strategic planning and tactical business execution. The following articles, podcasts, documents, and resources cover those topics foundational to a strong resource management program.

Articles

Best Practices

• Best Practice – Attract the Best with Accountability    [StrategyDriven Premium Content]
• Best Practice – Categorical Activity Prioritization    [StrategyDriven Premium Content]
• Best Practice – Establishing the Foundation for Personnel Resource Sharing    [StrategyDriven Premium Content]
• Best Practice – Ongoing Assessment of the Market Availability of Strategic Resources    [StrategyDriven Premium Content]
• Best Practice – Staggering Project Starts    [StrategyDriven Premium Content]

Warning Flags

• Warning Flag – Frequent, Inaccurate Resource Needs Estimation    [StrategyDriven Premium Content]
• Warning Flag – Parkinson’s Law    [StrategyDriven Premium Content]

StrategyDriven Expert Contributor Articles

• Five Steps to Resource Optimization: Any process can be improved, but it takes alignment to get it optimized by Ed Hughes, Becca Goren, and Mary Grace Crissey

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