How to do well in consulting

by Irina Nazarova

How to Do Well in Consulting

In her keynote at Balkan Ruby 2024, Irina Nazarova, CEO of Evil Martians, discusses effective strategies for succeeding in consulting, which can benefit both consultants and employees within companies. Her talk emphasizes the importance of building relationships and mutual trust as the foundation for business success.

Key Points Discussed:

Importance of Relationships: Irina asserts that friendships and relationships are pivotal for business growth, enabling mutual trust, understanding, and care.
Building Client Relationships: Successful consulting hinges on establishing strong relationships not only within teams but also with clients. Companies often fail by not fostering this connection with their customers.
Social Capital: The concept of social capital is introduced, explaining how trust among economic agents reduces inefficiencies and fosters business opportunities.
Effective Communication: Being genuine during interactions is crucial. Authentic communication enhances connections and can encourage clients to perceive more value than they might otherwise.
Understanding Client Needs: Consultants should aim to grasp the unique needs and goals of their clients, positioning themselves not only as service providers but also as valuable connectors within their networks.
Ongoing Engagement: Beyond project completion, maintaining relationships with clients is essential for building long-term trust and rapport.
Learning and Teaching: Sharing insights and perspectives from experiences can establish credibility and deepen client relationships. Irina encourages consultants to teach their clients and to be honest about their limitations when necessary.
Overcoming Fear of Rejection: Irina notes the natural fear of rejection in professional interactions, advocating for a focus on good intentions rather than transactional goals.
Creating Opportunities: The talk concludes with a powerful message about actively creating opportunities for others, promoting non-transactional engagement, and fostering a culture of generosity in business relationships.

Conclusion:

Irina's keynote offers practical advice for cultivating meaningful business relationships that lead to successful consulting outcomes. The emphasis on integrity, authenticity, and mutual support establishes a foundation for stronger influences and improved business relationships. Irina encourages attendees to implement these insights to transform their approach to consulting and relationship-building immediately.

00:00:08.920 Thank you. I just finished tweeting about this conference. Alright, let's go!

00:00:21.320 It’s a big honor to be opening up this conference and to be doing this first talk. I'm super excited to be with all of you today, and again, it’s a pleasure to be here. My talk is going to be relevant for people doing consulting in any form, and even for those who are not doing consulting. Even if you're working inside a company, I think it can be useful to apply the same approach.

00:00:40.399 Before we begin, I arrived yesterday. How many of you are here for the first time in Sofia? Oh, cool! It’s quite an amazing gathering here. This isn’t my first time in Bulgaria, so I can remember the taste of ice cream I had once, which was sprinkled with something I didn't like at the time. I didn’t realize I didn’t like licorice until later!

00:01:11.439 That Seaside in Bulgaria is one of my first happy childhood memories. My mom totally rocked the NS outfit back then. Now, let me share a few facts about Evil Martians for those of you who don't know. We're a medium-sized company, established back in 2006, with a team of 50. We are completely remote, with a team in Japan and another in Portugal, while everyone else is scattered across 14 different countries. This can sometimes be challenging, but there are important aspects to note. We're bootstrapped, sustainable, and I’m proud to say we didn’t need to do any layoffs.

00:02:22.560 We do consulting, but in addition to that, we also commercialize a few products like AnyCable and Image Proxy, which is now its own company. However, about 95% of our work is consulting, mainly for developer-first products and startups. These are products built for engineers, and while you might not recognize all the names, they're cool companies.

00:03:01.599 We also build a lot of open source projects. As we work with startups, we find it valuable to open source the tools we develop. This is an exciting part of our work, though it won't be the topic of my talk today. A bit of personal context about myself: I originally created this opportunity. I thought I got a job after earning my degree, but I actually landed my first programming job before I even graduated with my computer science degree. The same pattern happened in my second career, which was in finance and economics. I initially joined JP Morgan before completing my master's.

00:04:33.720 I later quit the bank because I realized it wasn't for me, and I started a startup. I found an old screenshot of it - it was unsuccessful after two years, leading me to start another one. It was during this second startup that I learned Ruby, which was a crucial experience since it taught me about business first and Ruby later. Eventually, that startup wasn't successful either, leading me into consulting for startups, particularly in building Ruby on Rails applications.

00:06:21.760 Finally, in 2017, I joined Evil Martians and became CEO in 2020. We launched AnyCable Pro in 2021, and I moved to San Francisco this year in January. All of this is quite exciting! I previously gave a talk in Las Vegas on a similar topic, but today, I will discuss something different—something clear and concise enough for you to remember.

00:08:44.560 The idea might sound strange, but after all those years in banks, startups, and Evil Martians, I concluded that friendships—or you could say relationships—are the source of business. This is what I want you to take away, and I will explain what I mean. By friendships and relationships, I mean mutual trust, understanding, and care. Naturally, these elements vary in degree. You cannot have 100% trust with every person; a certain level will suffice. In any business or startup, strong relationships start at your team.

00:09:55.760 Many companies, often unsuccessful ones, fail to establish the same relationships with their customers. This, I believe, is critically important. Then there’s a larger relationship, the one with your audience. The audience includes where your customers come from, such as a community like the Ruby on Rails community. To explain why this is important: from an economic theory standpoint, there's a concept called social capital, which you need to grow an economy. You can think of it as trust among different economic agents.

00:11:07.000 The more trust there is, the fewer inefficiencies occur. Also, practical explanations matter: friendships create opportunities for everyone. They help you reduce waste because they enable less advertising and spam, ultimately helping you generate business. While this might sound altruistic, I'm speaking of business—how to bring revenue into your company or your consultancy. Consider it like fixing the leaks in your business bucket. If you’re pouring marketing efforts into a leaking bucket, it's ineffective. But if you can build relationships, that bucket doesn’t leak as much, and any marketing activities will be much more effective.

00:12:54.600 This approach actually scales. It’s not just about you building relationships with your clients; you can teach your teammates to do the same. So, if all of your team members practice this, it scales exponentially. My mental model here concerns how customers perceive your value. This can also apply to products. Any deal you make involves risk; you don’t know the value you’re getting. When you estimate value, you have a distribution of expected value.

00:13:37.200 You could perceive your service as being of great value, but your customers may see it as averaging out to a lower value. To avoid this, you need to convince customers to be irrational, meaning they should see greater value than the average customer would perceive. You can do this by disclosing information that underlines the uniqueness of your work, effectively building trust and reducing information asymmetries.

00:16:18.480 To build these relationships, it starts with understanding the person in front of you. When you meet a potential client or a returning client, focus on understanding them as individuals and what they need. This isn’t easy; it also involves comprehending their organizations and their goals. Grasp how your work generates value. For example, if you're asked to speed up a process, think about who will benefit and how much their efficiency will improve.

00:17:03.120 At Evil Martians, we recognize that we are often perceived as a premium option, only necessary when speed or quality surpasses cost. Additionally, imagine your role as a consultant not only as a provider but as someone who connects your clients with potential partners. By becoming a central node, you create additional value and encourage clients to be irrational about the decision to work with you.

00:18:50.920 Having moved to San Francisco, I find the notion of creating opportunities very tangible. In the Ruby community, this is a daily practice. I encourage everyone to help one another out whenever possible. When you create opportunities for those around you, you position yourself as a true businessperson, helping everyone—not just yourself.

00:20:47.760 Something I'm still working on, even with larger organizations, is to always be yourself. Communicating in an authentic manner is crucial. You might think you need to be formal, but being genuine is the key to connecting. Bring your best self to each interaction, be honest, and have fun with it.

00:22:03.480 Understand who’s on the other side of the conversation. Explore their stories through their public profiles, like LinkedIn or GitHub, and engage with them meaningfully. People love talking about their journeys since nobody’s path is entirely smooth. Share your passions too, as this fosters connection.

00:23:50.360 Teaching others plays an essential role after you've established a connection. Every experience is an opportunity to learn, and you should use that knowledge to provide your clients with insights. Don’t shy away from sharing your perspectives, because your unique viewpoint holds value. Trust that your perspective is beneficial, regardless of how experienced you believe your clients to be.

00:25:36.720 Quitting can sometimes be necessary if you recognize that you aren’t able to help a client adequately. Whether it's pointing them to someone else or acknowledging a lack of resources on your side, being honest pays off. Clients will appreciate your integrity and will be likely to return when they're better prepared to utilize your services.

00:27:33.960 Engagement comes in various forms, like inviting clients to collaborate on more than just contract work. Healthy relationships, much like friendships, require ongoing effort. Even after a project is completed, don’t let that be the end of your relationship. Continue to engage with those people.

00:28:42.200 One anecdote: last year, tickets for Rails World sold out quickly. Due to good timing and being on a call, I ended up with a spare ticket, which I gave to a happy customer. That moment was amazing, as it confirmed our relationship—treating customers as friends indeed builds deeper connections.

00:30:02.080 As I conclude, keep in mind that reaching out comes with its challenges, including fear of rejection. This fear is natural. Overcoming it often means focusing on your good intentions rather than being transactional about your interactions. The aim should be to genuinely engage with people, extending kindness and building rapport.

00:32:06.960 You'll discover that aiming for integrity—doing what you love and being truthful in your actions—becomes a superpower in your relationships. It’s not about momentarily creating superficial connections; it's about shaping a new lifestyle around this approach.

00:34:10.000 Finally, I urge each of you to focus on creating opportunities for those around you. Start today with non-transactional intent; it’s a habit worth developing. The more you engage in generosity and support, the stronger your influence grows, and the greater your business relationships become. This is practical advice, and I encourage all of you to take it to heart right now. Thank you.

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Irina Nazarova

@irinanazarova

Balkan Ruby 2024