1 / 54

Choosing Consulting as a Career: Key Elements and Tips for Success

Explore the ins and outs of consulting engineering with tips from industry expert Paul D. Koch, P.E., BCEE. Learn about job opportunities in government, academia, industry, and consulting firms. Discover the factors to consider when selecting a consulting career, such as the type and size of the firm, reputation, and organizational structure. Gain insights into business development strategies and the cycle of success in a consulting practice. This presentation provides valuable advice for aspiring engineers considering a career in consulting.

mala
Télécharger la présentation

Choosing Consulting as a Career: Key Elements and Tips for Success

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. UNIVERSITY OF ILLINOISCEE ENGINEERINGIN RESIDENCE PROGRAM “Now I’m An Engineer - Do I Want To Be A Consultant?” Presented By: Paul D. Koch, P.E., BCEE April 20, 2012

  2. PRESENTATION SUMMARY • Overview Of Consulting Engineering • Key Elements Of A Consulting Practice • Terms, Tools, & Tips for You To Consider and Remember

  3. JOB OPPORTUNITIES • Government • Academia • Industry • Consulting

  4. CHOOSING CONSULTING AS A CAREER • Type Of Firm • Services Offered • Disciplines Covered • Size Of Firm • Small - Less Than 50 • Medium - 50 - 500 • Large - > 500

  5. CHOOSING CONSULTING AS A CAREER (continued) • Reputation & Position In Industry • People • Management/Ownership • Staff • Benefits and Location

  6. ORGANIZATION OF A CONSULTING FIRM • HRA • PES • SAIC

  7. HRAORGANIZATION CHART HRA BOARD OF DIRECTORS ADMINISTRATIVE SUPPORT PRESIDENT DIR. OF OPERATIONS VP/TREAS. & DIR. ELEC. ENG. VP/SEC. & DIR. MECH. ENG. DIR. OF ARCH. CONSTRUCTION FIELD REPS ELECTRICAL MECHANICAL ARCHITECTURAL CLERICAL, TECHNICIANS & CADOPERATORS

  8. PACIFIC ENVIRONMENTAL SERVICES, INC.ORGANIZATION CHART CORPORATE PLANNING PRESIDENT CONTROLLER/ ADMINISTRATION MARKETING TECHNICAL DIRECTORS WESTERN REGION MIDWEST REGION SOUTHEAST REGION MID-ATLANTIC REGION SOUTHWEST REGION AIR QUALITY MANAGER MANAGER MANAGER MANAGER MANAGER SOURCE TESTING MANAGER MANAGER MANAGER MANAGER MANAGER OCC. HEALTH & SAFETY MANAGER MANAGER MANAGER MANAGER MANAGER COMPUTER SYSTEMS MANAGER MANAGER MANAGER WATER MANAGER MANAGER WASTEWATER MANAGER MANAGER MANAGER HAZ WASTE/P2 MANAGER MANAGER MANAGER MANAGER

  9. SAIC CORPORATION Chairman and Chief Vice Chairman Executive Officer Vice Chairman President and Chief Operating Officer Vice Chairman SAIC Commercial Technology Science & Technology Segment Technology & Systems Segment Technology Services Company Real Time Systems Group Advanced Technology & Analysis Sector Advanced Technology Sector Aerospace & Defense Sector Science & Engineering Sector Communications, Info & Space Sector Space, Energy & Environment Sector Info & Technology Systems Sector Systems, Software & Telecommun. Sector Technology, Policy & Operations Sector Systems Technology & Integration Sector Environment 1 of 20 Pages Technology Research Group SAIC ORGANIZATION - FY92

  10. ‘ELEMENTS’ OF A CONSULTING PRACTICE • Business Plan or (Strategy) • Business Development • Marketing • Sales • Contracts • Project Management: • Produce a QualityProduct • Meet Budget and Schedule • Develop a ProfessionalStaff • Customer Follow-up • Review Deliverables and Customer Satisfaction • Pursue AdditionalWork

  11. Business Development Contract Business Execution Plan Customer Project Follow-up Mgmt. THE CYCLE OF SUCCESS

  12. BUSINESS PLAN • Define Services Offered • Identify Types Of Clients • Establish Geographic Area • Assess Competition • Develop Targets & Tracking Mechanisms • Agree It’s A “Living Plan”

  13. Business Development Contract Business Execution Plan Customer Project Follow-up Mgmt. THE CYCLE OF SUCCESS

  14. DEFINITION OFBUSINESS DEVELOPMENT (BD)“Creating the opportunity to bring the best solutions to customers.”

  15. BD CONCEPTS • Apply to All Career Choices • Consulting • Industry • Academia • Government • Required to Successfully Compete and Have the Opportunity To Execute Work

  16. FUNDAMENTAL BD BUILDING BLOCKS Relationships Communication • Listening • Response

  17. KEY COMPONENTS OF BUSINESS DEVELOPMENT • Marketing • Sales

  18. MARKETING:STRATEGIC EFFORT WITH FOLLOW-UP ACTIONS • What Services Do We Offer? • What Customers Will We Pursue? • What Geographic Area Will We Support? • What Tools Will We Use? • Brochures • Advertising • Internet • Conferences/ Publications • ‘Freebies’

  19. SALES:ACTION EFFORT TO EXECUTE A MARKETING STRATEGY • Additional Work From Existing Customers • New Work From New Customers • References • Networking • Cold Calls

  20. BUSINESS DEVELOPMENT STEPS • Identify/Obtain Clients • Define Needs/Projects • Prepare/Submit Proposals • Select Firm • Negotiate/Execute Contract

  21. “WHEN AND WHERE ARE YOU INVOLVED?”ALWAYS ANDEVERYWHERE!

  22. IDENTIFY/OBTAIN CLIENTS • Existing Clients • Firm’s Reputation • Personal Contacts - “Networking” • Advertising/Promotion/Conferences • Cold Calls

  23. ‘MAKING THE SALE’ • One-step Sale:Problem and Project Defined; Prepare Proposal and Select a Firm • Two-step Sale:Agree a Problem Exists; Define a Project; Prepare a Proposal and Select a Firm • Three-step Sale:Identify a Problem and Agree It Exists; Define a Project; Prepare a Proposal and Select a Firm

  24. WHEN DO YOU PREPARE A PROPOSAL? When you are Requested to do so by a potential customer – i.e., in response to a verbal or written: “Request for Proposal” – “RFP”

  25. HOW DO YOU GET AN RFP? • Proactive Customer Contact • Customer Mailing to ‘Key’ Firms • Commercial Publications – Engineering News Record (ENR), Dodge Reports • Government Publications – • Federal Business Opportunities—”FBO” • State Procurement Opportunities • ‘City Bulletin’

  26. WHAT KINDS OF PROPOSALS ARE THERE? • ‘Verbal’ Proposal - No! • Letter Proposal • ‘Comprehensive’ Proposal—Technical and Cost Proposals • SF 330 or Equivalent • Statement of Qualifications

  27. WHAT DO YOU DO WHEN YOU GET AN RFP? • Read ALL of It Thoroughly! • Give It to Other Key Staff to Review (Both Technical and Administrative) • Identify Incumbents • Make ‘Go, No-Go’ Decision • ‘Prime’ Contractor • ‘Sub’ Contractor

  28. HOW DO YOU DECIDE? • Who Is the Customer? Are We Known? • What Is the Scope of Work - ‘SOW’? • What Technical Skills and Level of Effort (LOE) Is Required? • What Are the Selection Criteria and Weights? • How ‘Big’ Is the Project?

  29. HOW DO YOU DECIDE? (continued) • Is It a ‘Set Aside’?—8(a); SBSA; SDVOSB; WOB/WOSB; HubZone • What Are the Location Factors? • What Is the Duration of the Assignment? • What Is the ‘Fine Print’? • When and Where Is the Proposal Due?

  30. WRITTEN PROPOSAL • Introduction • Scope of Services - Tasks • Project Schedule • Project Budget (Cost) • Qualifications of ‘Team’ • Prior Experience • Staff Resumes • Facilities

  31. WINNING PROPOSALS • Address ALL Requirements • Make Yours ‘Easy to Score’ • Discriminators not Platitudes • Factor-Benefit-Proof

  32. SELECTION PROCESS • Presentation or BAFO • Win--Negotiate Contract • Win or Lose--Get a Debrief • Lose--Protest (RARE!!!)

  33. THE CYCLE OF SUCCESS Business Development Contract Business Execution Plan Customer Project Follow-up Mgmt.

  34. CONTRACTS -ALWAYS HAVE ONE! • Forms • Elements • Type Of Contract = Basis Of Payment

  35. FORM OF CONTRACT • Verbal - Never! • Written - Always!

  36. CONTRACT ELEMENTS • Client • Consultant • Scope Of Work • Price • Schedule • Terms/Conditions - “Fine Print” • Authorization/Signatures

  37. TYPES OF CONTRACTS • Fixed Price/Lump Sum/% of Construction—Scope Well-Defined • ‘T&M’ or ‘T&E’—Scope Flexible • Cost-Plus-Fixed-Fee—Either Case • Cost-Plus-Award-Fee—Fee Based on Performance

  38. IMPORTANT TERMS • Labor Rates • Direct Labor Rate • Billing Rate • Overhead - Indirect Costs • G&A - General & Admin. Expense • Direct/Reimburseable Costs • Profit

  39. STANDARD SCHEDULE OF COMPENSATIONENGINEERING SERVICES CLASSIFICATION (DIRECT LABOR RATE) BILLING RATE Principal Engineer/Scientist I $50.00 $150.00 Supervisory Engineer/Scientist I $40.00 $120.00 Engineer/Scientist I $30.00 $ 90.00 Assistant Engineer/Scientist I $20.00 $ 60.00 Senior Support Services $10.00 $ 30.00

  40. EXAMPLE BILLING RATE CALCULATION

  41. OVERHEAD BREAKDOWN 0500 Indirect Labor/Selling/Admin./Incentive Comp 0515 Vacation/Holiday/Sick Leave 0535 Payroll Taxes 0540 Worker’s Comp/Group Insurance 0550 Employee Welfare/Training & Education 0560 Benefits Plans Administration 0565 Recruiting & Relocation 0570 Travel - Fares/Lodging & Subsistence/ Car Rental/Mileage/Tolls/Travel - Other 0595 Office Rent/Utilities/Janitorial & Maintenance 0607 Equipment Maintenance & Repair 0610 General Insurance 0615 Reproduction G&A BREADDOWN Accounting Costs Corporate Management Costs

  42. LUMP SUM/FIXED PRICE/% CONST. • Very Well Defined Scope • Complete Project For Fixed $ • FIRM ASSUMES RISK • Imagination Yields More Profit • Payment By % Complete Or Deliverable

  43. T&E OR T&M • Scope Of Work Less Well Defined • Compensation Based On Total Labor Costs And Expenses • Option: “Upset” Maximum Amount • FIRM AND CLIENT SHARE RISK • Payment Based On Schedule Of Compensation

  44. CPFF/CPAF • Well-Defined or Flexible Scope • Complete Project For An Estimated Total Cost Plus A Negotiated “Fee” (Profit) • FIRM AND CLIENT SHARE RISK • Total Profit (Fee) Is Fixed - “Costs” Can Increase for Payment • Payments Based Costs Incurred, Plus Portion of Fixed/Award Fee

  45. THE CYCLE OF SUCCESS Business Development Contract Business Execution Plan Customer Project Follow-up Mgmt.

  46. PROJECTMANAGEMENT • Team Concept • Project Work Plan • Tools/Techniques

  47. TEAM CONCEPT • Project Manager, Project Engineers and Subcontractors • Corporate Management—Legal, Accounting, SR Staff (QA/QC) • Support Staff

  48. PROJECT WORK PLAN • Discrete Tasks/Outputs • Defined Budget/Schedule • Staff Responsibility Identified • Subcontractor Management

  49. TOOLS/TECHNIQUES • Tracking: Scope, Cost, Schedule and Deliverables • QA/QC and Key Review Points: Internal and with Customer

More Related