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Business Connections
Connect with Australia China businesses through our online marketplace. Job Connections
A new way for Australians and Chinese to find employment in each others countries.
Events Connections
Click images below for the many EVENTS in China and Australia
Book Connections
The site to find the many books on China.
Back Issues
| The China consultant conundrum | | Print | |
| Sep / Oct 2008 | |||
 Choosing the right consultant for your China business can be a task in itself writes Cecilia Fan.Today's corporate world seems jam-packed with consultants: real estate consultants, IT consultants, HR consultants, asset management consultants, M&A consultants, communication consultants, and in the last 20 years, large numbers of "China" consultants. But just how important is it to have a China consultant? Some would argue that if China had transparent systems of information and easy access to resources at appropriate costs, there would be no need for consultants. Unfortunately, the reality in China is a long way from this ideal and a consultant can be a valuable resource in more ways than one. Experiences with China consultants differs vastly and unlike lawyers and accountants, where there are certain industry standards to adhere to, anyone who has spent a bit of time in China can claim to be a China hand. Here are some factors to take into consideration when making that decision: Individual versus Company There are pros and cons as to whether to use an individual consultant or a consulting firm. This will largely depend on the nature of the task. Individual consultants can cost less, enjoy a shorter communication channel and can have a wealth of experience and be trustworthy. A company however might have a more systematic approach, have greater access to resources and a multi-skilled/multicultural team can cover more aspects than any individual. When using an individual, you may need to be realistic about the scope of work one person can cover and have a contingency plan for when this individual is not available. Government division versus Private consulting firm Austrade and state government departments provide consulting services in China. These can be a good starting point when you need generic and preliminary information or when leverage can be gained from someone "wearing a government hat". However government departments have limited resources and specific services and they don't function in the same way as consulting firms which can throw themselves deeper into projects over a longer time frame and are closer to the market. For visiting programs, governmentorganized business delegations are good for ‘eye-opening' exercises, but they do always give businesses any specific leads. A tailormade trip is often more focused and fruitful. How much China experience should your consultant have? There are no specific requirements but the consultant's experience should be appropriate to the level of difficulty of the tasks being assigned to them. Do not be swayed by elements such as the attractiveness of a company's website. Be sure to talk to the consultant and question them as to what exactly they have done in the past to find out whether their past experiences can be helpful to your case. Do not choose your consultant merely based on the "contacts" they claim to have - this is hard to verify and even then, even harder to know how far a "contact" are will go out their way to help. How important is it for a China consultant to speak Chinese? Again it depends on your task and what other skills your consultant can offer if he /she doesn't speak the language. In most cases, a consultant who can't speak the local language often is not in the best position to help you because they are working in an environment where most people, particularly decision makers, don't speak English. A lot of information in China is often only available in Chinese. A big firm must be a better firm? In addition to the question of affordability, there are other reasons why a bigger firm might not necessarily best suit your needs. No matter how big a firm is, you should still check how much experience this firm has had in China, or the particular task at hand. It's also important to establish whether China is an important part of their business or if they only have a China division because it is "trendy." A flash looking office in Sydney should not be the reason for choosing a China consultant. Price and Contract Do not compare apples with oranges when it comes to assessing fees with the firm/consultant's experience and deliverables. If they added value, they deserve to be compensated. One way to assess the fee level is to produce a hypothetical cost sheet to compare their fee with how much it would cost you if you (or your staff) were doing it yourself. Often the best way to find out whether you have selected the right consultant for the job is to work with them for a while, so its important to have a contract that is flexible enough to let you out of the agreement if you are not happy with the progress. ■ Hui Yin Bi, the "Echo Wall," welcomes all feedback. E-mail Cecillia Fan at: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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