You Can't Fix a Problem Until You Know What's Wrong
I don't think I've ever mentioned that I own my own business. Yep - just me. It feels like the hardest, most terrifying thing I've ever done mixed with frequent bouts of exhilaration and flow. So I'm pretty sure I'm on the right track.
I recently learned about a little business philosophy that's rocking my socks. It's called the "Four Phases of Engagement," from Blair Enn's, Win Without PItching. Here's how it goes:
- Diagnose the problem
- Prescribe a strategy or solution
- Implement the strategy
- Ongoing re-implementation as necessary.
He basically says that we consultants put all the value on phases 3 and 4 and then ignore the first two phases. And he argues that a HUGE chunk of the value is actually in phases 1 and 2 and compares it to the value of a doctor diagnosing a clogged artery and prescribing a bypass surgery as HIGHLY valuable, even if that particular doctor never picks up a scalpel.
The Good News - I don't ignore steps 1 and 2...at all. For each project I undertake, I have a detailed initial discovery phase where they spill their guts about every little thing they do and then I build them a super-intricate map of their processes and how they could be doing things better, including the systems and tools they should use. I even charge for this session.
The Bad News - I do undervalue steps 1 and 2. If I were really listening carefully, I would have heard my clients telling me, again and again, that the diagnosis and prescription are what they're truly seeking. They don't know what they don't know. And they don't even know where to look to START knowing. So the fact that I can come in and listen to their woes and point them to a place to start is a huge relief. I recently did a project for a real estate agent where he asked me to build a super-complex system for staying accountable to getting his tasks done. When I listened to his story, it was clear that the biggest pain point they were having was inefficient communication, not task-management. So I prescribed an existing CRM that had some awesome communication tools already built-in and helped him get it up and running. It changed everything for him and he was THRILLED. And I, for some reason, felt like I'd cheated him because I hadn't built anything new.
The truth is, I've always valued the implementation and ongoing support as the thing of real value. Why do I care so much about the implementation part? Why don't I value the diagnosis and prescription? Why are those critical steps just a means to an end for me?
My hunch is that it's a combination of two things...
It's Too Easy
The fact is, these steps come so easily for me I feel like it can't be all that valuable to someone else. Clearly they could do this for themselves, right? Whereas the implementation...that part requires lots of time and discipline and the use of tools I've intentionally trained myself on how to use. It's challenging for me, so of course it would be challenging for others and thus, valuable and worthy of asking a nice price.
Obviously, we consultants shouldn't use difficulty-based pricing, charging our clients more and more as our own personal level of difficulty goes up. But somehow, when I'm not thinking critically or logically, that does FEEL just. Like I can go to bed at night feeling good about the fact that I charged someone a lot for things that were hard for me to do and just a little for other things that were really no big deal for me. That seems "fair," right?
No. Of course not.
I Haven't Changed Anything Yet
I struggle with intangibles. I like for everything to have a "thing" that gets made or shipped at the end of it...something that makes a change in and of itself. The very nature of the diagnosis and prescription steps means that you're not really changing anything yet. You're just figuring out the lay of the land and making a plan. Of course, I know from personal experience that a good plan can be valuable beyond measure (and I do create a tangible plan as a deliverable), but it's definitely not as sexy as an amazing new system for managing your processes that's been perfectly implemented to align to your business goals. So I brush it aside and move on to the "important" part.
The bottom line is that just because it's easy for me and I haven't built anything new doesn't mean it's not wildly valuable for my clients. They now are equipped with valuable knowledge and direction they didn't have before. And they probably would've fixed their problem on their own by now if they could've figured that out (or wanted to spend the time to do it).
Someone I trust suggested that I raise my price for my discovery phase, particularly for the prescription part. And while I don't disagree with him, I wonder how things would change if all I did was change my own personal story and beliefs about the value of those steps. I wonder how I would conduct myself. I wonder how I would organize that experience differently. I wonder how my clients would perceive the value of it for themselves? My hunch is that this could be a game-changer. This could be the key to shifting from a process-fixer for hire to a true trusted advisor. Mindset is everything and this is a shift that may just be worth the effort.