Agenda. Introductions. Retirement Option: Why Choose a Second Career as an Independent Consultant?
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1 CPS Human Resource Services Retirement Option: Why Choose a Second Career as an Independent Consultant? Gib Johnson Managing Director, Consulting Services East Giles A. Reneau Business Development Director 1 Agenda I. Introductions II. Workshop Objective III. About CPS IV. Retirement Option: Why Choose a Second Career as an Independent Consultant? V. Independent Consultant Knowledge, Skills, & Abilities (KSAs) VI. Starting a Consulting Business VII. Value of Partnering With CPS VIII. Next Steps to an Exciting New Career IX. Questions & Answers 2 Introductions Gilbert (Gib) Johnson Managing Director, Consulting Services East Giles A. Reneau Business Development Director 3 1
2 Workshop Objective 4 Workshop Objective Purpose To inform/educate prospective retirees and former HR government employees about the unique value of becoming an independent HR consultant. To provide the Who, What, Where, Why, and How of becoming an independent consultant. Ongoing Goal To build a network of competent, capable, and committed independent consultants in order to meet the growing needs of public and non-profit agencies. 5 Who is CPS? CPS (Cooperative Personnel Services) is a that provides a full range of HR management and consulting services exclusively to government and non-profit clients. 6 2
3 CPS Unique Expertise 7 Retirement Option: Why Choose a Second Career as an Independent Consultant? 8 Federal Government Spending on Consultants Small Business goals for Federal government include: 23% to small businesses; 5% to small disadvantaged businesses; 5% to women-owned small businesses; 3% to HUBZone small businesses; and 3% to servicedisabled veteran-owned small businesses. Source: Small Business Administration Goaling Reports Federal government subcontracting has increased 86% since Source: Federal Business Data System Next Generation Trending Analysis Report 2006 In FY2005, Federal government procured over 184 thousand contracts with professional services consultants for a total of $44.7 billion. Source: FBDS NG Procurement Report
4 Retirement Job Trends According to an AARP/Roper survey: 80 percent of baby boomers expect to keep working in retirement jobs. Only 7 percent of baby boomers said they expected to be in a full-time retirement job. 55 percent of baby boomers said they would work part-time either for income or enjoyment. 15 percent said they'd like to start their own business as their retirement jobs. 10 MONEY The chance to earn supplemental income is one of the main reasons people want retirement jobs. LOVE Some people want retirement jobs because they just love to work. FRIENDS Some people are outgoing and love to interact with other people every day. FEAR Some people prefer to keep working at retirement jobs as long as possible to delay the need to adjust to a different lifestyle. FULFILLMENT Some people want a greater sense of purpose, while others want jobs that contribute to the greater good. Why Do Seniors & Baby Boomers Want Retirement Jobs? 11 Benefits of Being an Independent HR Consultant Chance to leverage your unique industry expertise accumulated throughout your government career Opportunity to give back to public agencies while achieving excellent financial rewards Ability to enjoy the freedom and independence of doing your own thing Flexibility of living wherever you want 12 4
5 Challenges & Obstacles Getting your first assignment Financial uncertainty Gaps between assignments Timing: short proposal deadlines Lack of control vs. advising/consulting Developing a resource base for project assignments Developing strategic alliances Developing relationships that lead to business success Demonstrating new & improved knowledge/techniques that clients will accept Getting licenses, permit, and insurance Attaining government procurement vendor status 13 Knowledge, Skills, & Abilities (KSAs) of an Independent Consultant 14 HR Consulting Knowledge Areas Classification, including development and writing of position descriptions Compensation Studies HR Personnel Specialist duties (testing, interviewing and screening) Training and Development services, including competencies development Performance Management Development, including development of performance metrics and employee performance plans Organizational Assessment and Redesign services, including process reengineering Workforce Planning and Succession Planning services Staffing, including development of KSAs and crediting plans 15 5
6 Use Existing Skills and Build New Ones Excellent verbal communication/presentation skills Computer literacy: word processing, spreadsheets, and presentation graphics Sales skills gain clients trust and get them to take action If you don t have clients you don t have a viable business Write winning proposals 16 Eight Abilities of an Outstanding Consultant The ability to: 1. Lead 2. Recognize problems and opportunities quickly and accurately 3. Find cost effective, practical solutions & strategies 4. Communicate solutions effectively 5. Productively manage human relationship aspects of the work 6. Manage your time effectively 7. Command a competitive fee for your services 8. Successfully market yourself/your services 17 Testimonials from Retired and Former Government HR Leaders Pros and Cons 18 6
7 Gib Johnson Characteristics, Competencies & Behaviors of an Outstanding Consultant 19 CPS Project Consultant Testimonials/Video Pros & Cons of being an Independent Consultant Day in the Life of a Consultant 20 Starting a Consulting Business 21 7
8 CPS Project Consultants: Paid as CPS hourly employees biweekly Sign an Engagement Letter Not eligible for CPS benefits Taxes withheld from CPS earnings; W-2 provided at years end Utilize the CPS Time and Reporting System to track project hours Two Ways to Engage with CPS CPS Subcontractors: Have their own company Sign a subcontracting agreement Maintain both comprehensive professional and limited liability insurance for at least $1 million (as well as worker s compensation insurance if required) Must submit an electronic invoice to CPS for their services on a biweekly basis Utilize the CPS Time and Reporting System to track project hours 22 Telecommuting - Working from Home Think about how you ll communicate with co-works and clients. Working from home should enhance your productivity if it doesn t find another arrangement. Set up a system to balance work and family life without blurring the distinction between the two. Source: 23 List of Home Office Supplies Computer Laptop or Desktop Computer System Office Telephone consider a two-line cordless phone with call display, and a cell phone. Printer a multi-function printer acts as a fax/photocopier) Internet connection with wireless Internet, you ll only need a router and a card Filing cabinet keep working files on your desktop, but make sure you have somewhere to keep business records Desk or home office armoire get an ergonomic one that s set at the right height Chair get a chair that s suited to heavy long-term use Stapler need we say more? Staples, Folder, Calendar/PDA, Clock, In-Out Box, etc. 24 8
9 Develop A Marketing Plan Key Components of a Marketing Plan: Market Summary, Market: Past, Present, and Future Competitive Landscape Product/Service Comparison and Positioning Communication Strategies Public Relations Strategy and Execution Advertising Strategy and Execution Pricing and Policies Success Metrics Marketing Schedule 25 The Value of Partnering with CPS 26 Background 70+ year heritage in public sector Office locations Sacramento, CA headquarters and west coast operations Washington, DC federal and east coast operations Crystal City, VA TSA project More than 200 full-time employees with public and private sector experience; 1,400 project consultants nationwide Over 1,000 clients; $158M ~ annual revenue 27 9
10 Partial List of Clients San Francisco Houston Atlanta Los Angeles County Phoenix 28 Value of Partnering With CPS as an Independent Consultant Be in business for yourself, but not by yourself Collaborate with CPS to build a meaningful value proposition Opportunity to add creative solutions to problems Leverage the CPS brand with its known reputation for providing more value than expected Use CPS as the primary contractor responsible for Commercial Liability Coverage Allow CPS to carry project overhead costs Minimize your financial exposure by using CPS direct client billing & collections process Rely on CPS consistent biweekly payroll checks 29 Resources/Information Recommended Resources Articles 30 10
11 Next Steps 31 Next Steps To An Exciting New Career 1. Conduct an objective self evaluation: e.g., Myers Briggs Personality Test, and/or seek performance and skill assessment feedback. 2. Write a Business Plan: sometimes the learning process of actually constructing a business plan is often more important than the plan itself. 3. Network with experienced HR consultants, and if possible, find a mentor or coach. 32 Next Steps To An Exciting New Career - cont d 4. Consult a business attorney and/or accountant to determine what type of business you want to form, e.g., Proprietorship, Partnership, or Corporation. 5. If you choose CPS, do your due diligence ask for and check references, talk to CPS clients, as well as current and former consultants. If you decide to take on the challenge, contact CPS to register as a project consultant or subcontractor
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