Consulting By Design
So he decided to leverage his skills into the consulting arena by joining the professional services division of Santa Clara-based Exodus Communications. "They were the 800-pound gorilla in the Web-hosting space and they were in a growth spurt," says Ellis, a CIN member. Today, the future of Exodus, like that of so many companies, is uncertain - the company filed Chapter 11 in late-September.
He may not know it, but Ellis is part of a larger trend: CIOs, once ensconced in the corporate bureaucracy, are entering the consulting world in droves. Some leave corporate jobs because they are tired of the politics or the monotony. Others, like Ellis, strike out on their own in a spirit of adventure, seeking new skills and independence. But for the vast majority, say recruiting experts, consulting is a temporary -and often unwelcome- career move forced on them by a down economy. Many have no choice but to go solo: executive recruiting is off by 30% to 50% compared to last year, according to Joseph Daniel McCool, editor-in-chief of the trade publication Executive Recruiter News in Fitzwilliam, N.H.
|Consulting: Look Before You Leap|
Consider these tips from CIOs and recruiters before making the leap to consulting:
1. Determine your risk tolerance.
2. Assess your skills.
3. Get your family on board.
4. Determine a minimum wage.
5. Be realistic but don't undersell
6. Define Your Value
- Eva Marer
In some cases, consulting can work in the long-term: some CIOs find that they enjoy the diversity and excitement of consulting, and are able to make a living too. And even in the short term, consulting can provide valuable skills and experience to bring to the next job-interview table. The key is knowing whether you're cut out for consulting - and how to make it work for you.
Very few CIOs move to consulting willingly, says Tom Pettibone, an IT management consultant based in New Canaan, Conn., who also provides interim CIOs through his firm Transition Partners Company, headquartered in Reston, Va. Pettibone has seen an avalanche of resumes fall across his desk since early summer. Even top CIOs with 10 to 15 years of experience under their belt are among the jobless. In the tight-as-jeans job market of the past few years, CIOs could jump from job to job with impunity. Today, a backlash of anorexic IT spending after years of overspending means projects are being cancelled or deferred.
Even in the best of times CIOs have been the scapegoats of senior managers, says Jay Gaines of Jay Gaines & Co., a mid-size executive search firm in New York that specializes in placing senior technology executives in the financial industry. The need for enterprise or large divisional CIOs is down dramatically, he says, and many choose consulting by default.
As a result, most would-be consultants are not leading from a position of strength, according to Gaines. Notable exceptions are retired executives who choose to stay active and CIOs with large-cap credentials lured into the space by the smell of a sweet deal.
For example, Marty Stein, former vice chairman of technology and operations for Bank of America, and Don Hollis, one-time CIO of First Chicago, both built successful consulting practices after they retired. And Pettibone, former CIO with Philip Morris, left the corporate world when he got the opportunity through a colleague to structure the new business in an attractive way. Today he pays almost as much in income tax as he made in his final year as a CIO.
Yet not everyone seeks money or status. CIN member CJ Rhoads, formerly vice president of program office, information services with First USA, loves the independence and variety of working for herself. Her company Enterprise Technology Management Associates provides technology management consulting to banks and other financial institutions. She continues to turn down better-paying job offers because she prefers being her own boss and wants to stay in her hometown Reading, Pa.
Another CIN member, Mike Howard, a consultant in Edinburgh, Scotland, also chose to start his own company for geographical and practical reasons. He and his wife chose not to relocate when he was let go, along with about 60% of the staff, from Quadstone, a CRM software house. Even though there are only about one or two CIO job openings per year in the area, he saw an opportunity to provide technology management services to Edinburgh's many small and medium sized enterprises that do not employ full-time CIOs. He is on track to make about the same income he made as an employee, yet he is only working two days per week and paying expenses that would normally be picked up by his employer. Taking a profit by deploying staff to small and medium-sized enterprises seems the way forward for his company BlueSpline Ltd.
Are You Cut Out for Consulting?
When hiring, Pettibone considers only CIOs of Fortune 500 companies with at least 10 to 15 years of experience. Yet he warns that even excellent CIOs can wash out as consultants. "I get the sense that there is an automatic feeling that you've reached the CIO level, now it's easy to fall into consulting. That is simply not the case. These are two totally different jobs."
For one thing, successful consultants display a high tolerance for risk and thrive under pressure. "I get to bail out of the stable part of the execution and move on to the next project," says Ellis. Yet even someone who enjoys the pressure-cooker lifestyle can feel squeezed. "Everyone has heard of projects that went three times over budget and took three times as long. Every day that you're on a complex project, that potential is there. You have to constantly have your finger on the pulse of the project and ask yourself what could go wrong."
|Other Special Reports by Eva Marer|
|Collaboration As Culture Attention: The New Business Currency 5 Tips For Avoiding Burnout Companies Confront Rising Network Security Threats Outsourcing: The Reluctant Bridegroom|
The pace of change is much faster in consulting, where one must rapidly understand -and provide value- in new situations. Most consultants labor near the front-edge of technology, says Ellis, and must continually invest in understanding emerging technologies.
Ultimately, successful consultants must demonstrate a unique combination of confidence and showmanship. "Otherwise it's difficult to convince someone to spend a lot of money to listen to your words of wisdom," says Ellis. Knowing that a company is paying $300 to $400 an hour for his services also contributes to the pressure to deliver.
The fact is "good consultants work hard because they enjoy it," says Pettibone. As a result, they may be well paid. But don't expect to make the $300,000 you made last year right off the bat, he says, suggesting that some CIOs were overpaid and are having trouble adjusting to the competitive open market. "If you just go into consulting because it's the only thing left to do, you will be unhappy, do a lousy job and disappoint clients."
|BlueSpline Ltd. Enterprise Technology Management Associates Executive Recruiter News Transition Partners Co.|
Eva Marer is a freelance business and technology reporter based in New York. She covers investments, personal finance and corporate technology issues for a variety of trade and consumer magazines. Contact her at email@example.com.
Editor's note: Join an ongoing discussion about CIOs becoming consultants in the CIN Forum. Visit the thread under Focused Discussions by clicking here.