Define independence

by Dennis Howlett on January 8, 2010

Three events this last week have got me thinking about independence in opinion, analysis and commentary.

  1. Butler’s acquisition by Gartner and subsequent podcast where I appeared alongside Jonathan Yarmis, Naomi Higgins and Jonny Bentwood
  2. Bruce Richardson’s departure to the ‘dark side’ in joining Infor as Chief Strategy Officer
  3. Sage Circle’s broad dismissal of blog influence in negotiations

On the podcast, I said that further consolidation represents a reduction of choice but an opportunity for the boutique groups to enjoy a differentiated position in the market. Bruce’s exit may, or may not mean an opening up at Infor. The fact he believes that Infor ‘gets’ the importance of the customer would suggest improved transparency. Sage Circle’s assessment that the traditional analysts (for which read largely Gartner/Forrester) drew comment from Frank, Vinnie and myself. Vinnie’s challenge is interesting:

If you want a serious comparison compare analyst blogs to those of independent blogs, and compare analyst advisory services to those of independent advisory firms.

Organize a shoot out and a few of us independents will show. On one condition – if we kick ass, we will be written a fair piece of those billions analyst firms charge.

While he doesn’t say it out loud, I’m thinking that the defining characteristics that differentiates the independents are:

  • the degree to which they are transparent in their dealings,
  • the amount they are prepared to give away through their online writings and
  • the extent to which they are prepared to challenge the status quo.

If this sounds like an attempt to take some sort of perceived moral high ground then you’d be right. Too often I see mild mannered, uncritical, PR driven material that provides little of real value to the buyer community. Most often it sounds like the ‘Crowd’ playing to both itself and the vendors that pay for the advertising that supports much of today’s media. You see that in the incessant Tweeting and re-Tweeting of anything that references something where there is an implied relationship. Heck – I’ve been guilty of that myself. It leads to all sorts of self serving ’stuff.’ It’s all good for the page views but does it actually count for anything? Does it mean anything for buyers?

When you look at the Twitter crowd for example, where are the technology buyers or decision makers? Apart from the CIO Dashboard list, I don’t know. Perhaps all that means is that as a channel to reach enterprise buyers, Twitter is of limited value. I do however know that it is a worthwhile channel for reaching developers. Quite how much influence they have is moot and worthy of another post.

But what do you think? Have I got this definitional set of characteristics right?

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  • Very interesting discussion thread which I've been meaning to comment on for a couple of days. I thought Barbara French's comments about not over-idealizing independents were well taken. At the same time, what I can say is that the independent analyst blogs do tend to be Tweeted and discussed much more openly. Bottom line is: I think their work, at least what is blogged publicly, is generally superior.

    Yes, I suppose independents are more dependent on models that involve creating free content, but by doing so, they also have a way of exposing the stodgy/siloed/conversative approaches of larger firms. And yes, transparency in financial disclosures is refreshing. I see such disclosure mentioned frequently in the blogs of independents but rarely in the blogs of the big analyst firms I follow.

    At any rate, while it's dangerous to idealize one side, I know which side I'm on. And to a large degree, it's by choice. I've worked in situations where I felt muzzled and I feel I serve myself (and with any luck my readers) better through independence, or at least the striving towards it.

    Finally, to your list of characteristics, the other thing I often see in independents is a more narrow focus. This would make sense - specialization helps an independent to offer a deeper expertise. Sandy Kelmsley in the BPM space comes immediately to mind, Naomi Bloom in HR, countless more. I know that my strengths tend to be in SAP and to some extent, ahem, "web 2.0," once I move too far beyond those areas I'm more likely to form an alliance with another independent to better serve my client. Perhaps these loose alliances can become more powerful. Hopefully Enterprise Advocates can help to chart this course.
  • You make good points. I think that you're taking a very idealistic view of these 3 attributes. Sure, some SOHO analysts and consultants are striving for the higher moral ground. However, most seem focused on things much more mundane -- building a successful business, paying the bills, putting away the kid's college fund. To my thinking, that's why these 3 attributes are so dominant among the SOHO analysts and consultants.

    So, here's some additional coloring I'd add to your high ground point of view:

    Transparency in dealings - SOHO analysts and consultants need to put forward reference accounts to attract clients. They also must accommodate client expectations for non-competitive client lists. Finally, they have a greater need to build confidence and trust and justify pricing, and transparency on how they tackle projects and reach conclusions certainly helps on that front.

    How much & what content they give away - Freely accessible blog, Twitter, YouTube, SlideShare, white paper content plays a bigger role in the promotional strategies of SOHO analysts and consultants than they do with the larger firms. The SOHOs use free content as a low-cost marketing and influence-building tool. The larger firms are able to charge vendors for putting the same type of content out on the open net.

    Willingness to challenge status quo - Even the idiot SOHO analysts and consultants out there understand this is one of the short cuts to grabbing 15 minutes of fame. Larger firms tend to have mechanisms in place to censor/edit/moderate (choose your term) such commentary.
  • @barbara - there was always the risk of appearing too idealistic as you say. But heck: if the bar is as low as seems to be the case today in many parts then why not try hoist it somewhere impossible? At least that way, we can get a conversation going about how these things work out best for those cutting checks.
  • Whether the list is "right" is possibly too early to call, but it's a good start. When I think "independence" in relation to analysts, I start from a purist viewpoint that there should be NO financial relationship with any of the analyst's subjects. Before anybody jumps on me, I appreciate that this is probably unrealistic - (which comes to your point on transparency) but to me it's a yardstick for comparison. "Transparency" not just of commercial relationships, but of any potential influence on the analysis (personal biases and relationships in particular which may otherwise not be obvious) allow the recipient to make allowances and adjustments to the advice that they see fit.
    Willingness to challenge the status quo is (whether classified as "independent" or not) one of the key values that analysts SHOULD be bringing to the table - if you don't do it, how can you possibly call yourself an analyst?? This should be a given ....
    As for the other point about give-away material - that sounds like a chicken-and-egg thing: are you independent because you give away analysis, or do you give it away because you're independent? Either way, I agree it tends to be an identifying characteristic, more displayed by independents than the Gartners of this world.

    [Disclosure: in case nobody had guessed, I am unashamedly buy-side :) ]
  • frankscavo
    I've already commented on Carter's post, where essentially I think he is setting up a false contrast between large for-fee advisory firms (e.g. Gartner) and free websites and bloggers. As Vinnie points out, if you want a fair comparison, compare the blogs of the major analyst firms with those of independent analysts and determine which have more value. Or compare the for-fee research services of Gartner et al and the for-fee offerings of independent analysts and small advisory firms.

    Regarding the value of Twitter in reaching enterprise buyers, I would agree. For example, none of my clients, to my knowledge, are on Twitter. The issue is that the needs of enterprise buyers are episodic: that is, they search for information at the point of need (e.g. when they are contemplating a purchase or other major decision), not as a continuing day-to-day requirement.

    For me, Twitter is a great networking tool for reaching and maintaining relationships with other technology consultants, media folks, and vendor representatives. Reaching prospective clients takes other means.
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