DISCLAIMER: I run a company that provides PMs to clients. (But I'll try to be unbiased).
Over the years, I've seen some clear patterns in when external consulting PMs don't work well:
1. There's no plan (or time) to get them up to speed quickly on your org dynamics.
2. Stakeholders are uncomfortable working with outsiders (e.g., they've had bad experiences in the past they can't let go of. It's setting your external PM up to fail).
3. You're hoping they'll manage lots of projects at once. That's usually suited better to a leased worker you hire directly as staff augmentation. The best use case for an external consulting PM is to manage a single, high-stakes project. (Consulting PMs usually bring more expertise...but higher rates).
4. You already have the budget for a permanent hire, where the long-term retention of knowledge is a better investment.
When external consulting PMs do work well, it's usually because clients:
1. Onboard them intentionally, rather than hoping they'll figure it out on their own.
2. Give candid feedback about what's landing (and what isn't) as they learn the culture.
3. Structure pricing in a way that builds trust and accountability, not suspicion. I recommend fixed cost/month vs. hourly rates which can encourage inflation.
4. Ask them not just to "deliver the project," but to leave behind process improvements.
5. Insist on good artifacts and transition planning, in case the project needs to move back in-house.
That's what I've seen anyway. Curious about other people's experience? (It might help me run our business better!)