Consultancy steering committee costs are easy to overlook because the meetings can feel like you’re making progress. Many big consultancies favour steering committees and lots of high-level meetings. In this video, we explain that this can mean fortnightly calls, eight people dialled in and RAG reports (red, amber, green status updates) everywhere, while the system itself hasn’t moved.
The more levels, people and reporting a project has, the more of your consultancy days usually go on reporting structures rather than on the system. We aren’t saying you should drop reporting. We’re asking whether it needs to be as hierarchical, and involve as many people, as it sometimes does.
The practical outcome is a simple habit. Look at where your consultancy days and money go when you run a project, and check that they’re going into a working system that takes you from where you are now to where you want to be.
Quick takeaways
- Steering committees can quickly use up consultancy days without really moving your system on.
- A typical warning sign is fortnightly steering meetings, around eight people on the call and RAG reports everywhere.
- A RAG report is a red, amber, green status update. It shows progress reporting, not progress in the system.
- More project hierarchy, more people and more bureaucracy usually mean fewer of your paid days go into the system.
- You still need some reporting. The question is whether it needs that many layers and attendees.
- The outcome you’re paying for is a working system, so check your money is going towards that.
What a heavy steering committee looks like
It might be fortnightly steering meetings. It might be eight people dialled into the call, with RAG reports (red, amber, green status updates) everywhere.
You’re paying for all of it, and your system hasn’t moved an inch. What you want is a working system that takes you from where you are now to where you want to be.
Where consultancy steering committee costs come from
The more levels a project has, the more people are involved. That brings more reporting and more bureaucracy. Usually, more of your consultancy days and time then go into reporting structures and fewer into the system. That time could often give you better value elsewhere.
If you’re running a CRM or ERP project, see how we approach Dynamics 365 projects.
Do you need to drop the reporting?
No, absolutely not. But does it need to be as hierarchical as it sometimes is, with as many people involved? That’s the question to ask.
A quick check on your own project
Look at your last invoice and ask:
- How many people were on the calls, and did they all need to be there?
- How many consultancy days went on reporting?
- What changed in the system over the same period?
If the answer to the last one is “not much”….. you know where the money went!
Whatever the size of your project, you should try to keep an eye on where your money is going.
What should you ask when choosing a Dynamics 365 partner?
Frequently asked questions
A steering committee is a group of people who meet regularly to monitor a project. In the video we describe fortnightly meetings with around eight people dialled in and RAG reports shared. Our concern is that these meetings use up consultancy days while the system stays where it was.
A RAG report rates parts of a project red, amber or green to show how it’s doing. It’s a standard way to summarise the health of the project. It tells you how the project is reported. To see how it’s going, look at what has changed in the system.
Some reporting is useful, and we wouldn’t throw it out. The cost comes from hierarchy and headcount. If many people attend frequent meetings and most of your consultancy days go on reporting, you’re paying for activity that leaves your system untouched.
Ask your consultancy for a breakdown of the days spent on reporting and the days spent working on the system. Check your last invoice to see how many people were on the calls and what changed in the system over the same period. If you can’t see any progress, ask them to explain. What the first 30 days should look like.
We don’t have a magic number, but our view is that calls often involve more people than they really need to. For each attendee, you could ask what decision they make or what they add. If the answer isn’t clear, the call might work with fewer people or fewer meetings.
No. Some reporting is useful on any CRM or ERP project, simply keep it in proportion. Ask whether the structure really needs as many levels and people as it has, and think about whether that time would give you more value spent on the system. Microsoft’s Dynamics 365 implementation guide treats governance as something that helps you plan, spot problems early and respond to change. That’s the test we’d put to any steering committee: is it helping the project deliver?
A working system that takes your business from where you are now to where you want to be. Judge the project by how far the system has moved, and look at the number of meetings or reports second. That’s the result you’re paying consultancy days for.
Start with where the days have gone and what has changed in the system. If the answer is “not much”, ask your consultancy to explain the gap and agree what gets built next. If you’d like an outside view, read how we got a failing Business Central go-live back on track.
About Mark Pullar
Mark Pullar is the founder of All My Systems, a Microsoft Dynamics 365 consultancy based in Hebden Bridge, West Yorkshire. He has 25 years’ experience in IT and senior management, holds an MSc in Information Systems Management, and is a Microsoft Certified Professional in Dynamics 365. Mark set up All My Systems in 2014 to bring proper business systems to small and medium sized companies, and he shares practical lessons on productivity and running a business along the way. Read more about Mark’s story and how All My Systems began.