Consulting Tip #02 and Wrapping Up the Year
Hi there,
I hope this message finds you well! As I look ahead to 2024, my calendar for the first half of the year is already filling up with exciting consulting projects and writing plans. It’s shaping up to be a busy and rewarding year, and I’m thrilled to share some of that energy with you in this newsletter.
In this edition, I’ll share another consulting tip to help you sharpen your skills and gain new perspectives. And as the year draws to a close, I’ll also reflect on how 2024 went for me.
💼 Consulting Tip #02 – Understand the Business Side of Your Work
As a consultant, it’s easy to focus solely on your immediate responsibilities: delivering projects, meeting deadlines, and satisfying client expectations. However, there’s one perspective that often gets overlooked, especially by new consultants (and sometimes even by seasoned ones). This perspective could be the key to unlocking your career growth: understanding the business side of your work.
I’m not talking about understanding your client’s business (although that’s certainly valuable). Instead, I mean recognizing the value of your work within the context of the consulting business itself.
📊 Step One: Know Your Hourly Rate
Understanding the business aspect of consulting starts with knowing your hourly rate. You should know how much your employer charges clients for your time – not just to understand your value but also to gain insight into how the consulting business works.
Why is this important?
Value your work: Knowing your hourly rate helps you better understand your employer’s and client’s expectations for your contributions.
Prepare for salary discussions: This knowledge gives you a stronger position in career discussions and salary negotiations (more on this in an upcoming post!).
Understand market dynamics: Your hourly rate provides perspective on how different skills and roles are valued in the consulting market.
How do you find out your hourly rate?
Ask your manager or project lead. There’s usually no reason for this information to be withheld – and if it is, that in itself might tell you something about the organization.
🔑 Advanced: Dive Into Project Economics
Once you know your hourly rate, the next step is to explore the financial foundations of consulting engagements. This is a key skill for consulting leaders, and learning it will set you apart as you progress in your career.
Here are two areas to focus on:
Effort estimation and resource allocation: Understand how project workloads are estimated and how resources are allocated efficiently.
Pricing strategies: Learn how your employer prices consulting services to ensure projects remain profitable while delivering value to the client.
Getting involved in proposal preparation is an excellent way to gain hands-on experience. Ask to be part of the process, even if your contribution is small at first. It’s also a great opportunity to ask questions – even the “dumb” ones. More often than not, experienced colleagues are happy to share their knowledge, which can be invaluable.
Pro tip: Reviewing public sector procurement materials can also provide eye-opening insights into pricing and competition in the consulting industry.
💡 Why This Matters
Understanding the business side of your work isn’t just a “nice to know” thing. It’s an essential foundation for growing professionally, advancing your career, and even negotiating a better salary (there will be more on this in a future post). Consultants who grasp the financial context of their work are better equipped to make strategic decisions and demonstrate their value to both their employer and clients.
A Look Back at My Year and Stay Tuned For More!
As the consulting year begins to wind down, it’s the perfect time to reflect on lessons learned and set goals for the year ahead.
For me, 2024 has been a busy and rewarding year! I had the privilege of sharing my career journey with students on a couple of occasions and took part in the CGI mentoring program as a mentor, inspiring the next generation of IT professionals and consultants. One of the highlights was publishing my third book (and the first one published by a major publisher), Kokonaisarkkitehtuuri: Oppaasi organisaation muutosmatkalla which dives into enterprise architecture as a strategic tool for driving organizational change. In terms of fiction, my short stories were awarded in two occasions (so apparently I can write science fiction as well). I'm also collaborating with an illustrator on a children's book.
Alongside writing, I worked on exciting consulting projects that challenged me to grow and brought valuable lessons along the way. If I counted correctly, I worked for (and will continue to work for) six different clients, so there really was a need for proper time management! This combination of consulting, writing, and mentoring continues to be a source of inspiration and fulfillment for me.
How has your year been? I’d love to hear about your achievements or what you’re looking forward to in 2025! 😊
Wishing you a wonderful holiday season and a successful start to the new year. Thank you for being part of this journey – I’m excited to continue exploring these topics with you. Stay tuned, and let’s finish the year strong together!
Eetu Niemi
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