My stance on running a boutique consulting business is very clear: Establish a narrow focus, develop a very specific value proposition for a narrowly defined target audience, create a signature methodology, repeat it multiple times, and say no to all other non-fit projects.
However, it would be remiss of me to make no room for exceptions. I’ve been there myself and it was always a difficult moment from a decision-making point of view.
There are instances when accepting non-fit projects from existing clients is a good idea – in fact, under the right circumstances, doing so can come with significant long-term gains.
So that’s what I’d like to discuss in this article: the nuances of determining whether to say yes to non-fit project requests from existing clients.
The risks of accepting non-fit projects
Before I delve into the instances when non-fit projects might be a good idea, I’d like to quickly run through the main risks.
- Dilution of expertise: Consultancies that take on projects outside of their core expertise risk losing their specialisation edge and being seen as generalists.
- Strained resources and operational inefficiencies: Taking on non-fit projects generally means having to tap into additional resources, be it time, skills, or personnel. This places unnecessary burdens on teams, which, in turn, diminishes their productivity and can lead to burnout.
- Reduced quality of work and client satisfaction: Without the right expertise or resources, the consultancy risks delivering subpar value to their clients. This is especially damaging when it comes to existing clients.
- Lost opportunities: Saying yes to non-fit projects means taking away resources from potential perfect-fit projects. After all, there are only so many hours in the day.
- Setting a bad precedent: If a boutique consultancy says yes to one non-fit project, it risks setting a precedent both internally and externally. It will be that much more difficult to say no to the next non-fit project request from the same client without compromising the quality of the relationship. It will also invite other clients to request non-fit projects. And it risks eroding internal alignment.
Recommended reading: 9 Ways to Assess a Boutique Consultancy’s Expertise Reputation
When non-fit projects might indicate an opportunity
While, in general, I advocate against accepting non-fit projects (whether from new or existing clients), I also urge consultancies to look back and assess the nature of those requests. Here is why:
- Regular requests for non-fit projects could indicate a value proposition problem: Consultancies that regularly receive such requests – or at an increasing rate – could benefit from reassessing their value proposition. There is a good chance that it may not be clearly explained enough.
This lack of clarity can result in clients making project requests outside of the parameters of the consultancy’s expertise/portfolio of services.
It’s an opportunity for consultancies to go back to the drawing board and redesign their value proposition in a way that will make for more specificity and a stronger differentiation.
- Non-fit projects could signal a new trend/emerging market need: Sometimes, these non-fit requests could signal a new trend or a common struggle among clients. I advise that consultancy owners and leaders pay close attention. It is worth investing time into in-depth conversations with existing clients to determine whether it’s a one-off request or indeed an emerging market need.
If it’s the latter, boutique consultancies are presented with an opportunity to develop and launch a new service – ideally, something that neatly aligns with the existing portfolio and can be vertically integrated.
In these circumstances, I recommend that consultancies first organise a pilot project with a client or two to first explore these new areas. Then, it can be validated with a larger network of clients.
- Strategic acceptance for key accounts: Consultancy owners and leaders can sometimes consider making exceptions for crucial clients.
However, this should be a carefully considered decision, followed by an open discussion with the client to ensure it's not just a habit of saying yes to everything, which can be detrimental.
I see three reasons to step outside the narrowly defined parameters of work for key accounts:
- Opportunistic: Taking on the project might help keep the lights on when things aren't going well.
- Tactical: To please, retain, or develop a key client, a transparent discussion should be conducted explaining its exceptional nature.
- Validation: Carefully testing or piloting new waters.
Recommended reading: The 4 I’s of Service Design for Boutique Consultancies
Three dimensions to consider before accepting non-fit project requests
Before saying yes to non-fit project requests from existing clients – or from new ones for that matter – I’d urge boutique consultancy owners and leaders to first think through the following dimensions:
- Resource allocation assessment: Before saying yes, it would be wise to evaluate whether the consultancy has the necessary resources and skills to deliver quality results without impacting its core services.
- Long-term impact: What are the potential long-term effects of taking on non-fit projects? Will it dilute the consultancy's core strengths or distract from its primary business goals?
- Repeatability assessment: If the project is a one-off requiring specialised resources that won't be fully utilised in the future, it’s better to decline politely. Taking on such projects may lead to inefficiencies and strain your team's capabilities. However, if it is something that could be replicated with other clients, there might be potential for service expansion.
In conclusion
I believe that for boutique consultancies, maintaining a narrow focus and cultivating go-to expertise reputation are essential for long-term success.
However, there are moments when stepping outside these established boundaries for non-fit projects may be worth the risk.
The key lies in balance and discernment.