The Financial Times has done a nice job of capturing the essence of the changing world of consulting. Three recent articles in the FT call into question the real value of consulting and how the industry is changing.
The most recent of these articles, Consultants face need for survival strategy (June 2010), highlights the changing value that consultants bring to their customers.
While the article was primarily focused on the impending merger between giant consulting houses Booz & Co and AT Kearney and the declining value of “strategy consulting,” I consider the subtext and speculation calling into question the future of strategic business consulting as spot on. As company leaders and decision makers have become more sophisticated strategists themselves, the capability and desire for the organization to devise and drive strategy from within has similarly improved.
The implication for consultants is this: operating in a “traditional expert” role and providing information that is readily available online adds little to no value.
I also found that the article McKinsey’s joint venture changes structure (June 2010) further illustrates the declining value of “strategy consulting” and McKinsey’s efforts to change their product and service offering.
The article highlights how McKinsey is changing its 84 year old business model to include providing data on what consumers are saying about clients’ brands and customer insights in support of product development, marketing campaigns and customer service. Again, the subtext to the article is the declining value associated with providing strategic information already contained on the readily accessible internet.
The implication for consultants is two-fold: Again, providing information that is readily available online adds little to no value. In addition, consultants better have the ability start with the customer experience and work inwards, rather than having the customer experience as an afterthought.
And the last of these articles, Strategy consultants need some new ideas (April 2010) expands on the popular uprising belief that “strategy work is dead” and calls into question the value of consultants.
Upon closer reading, the term “strategy” in the article implies taking too much time to plan in sacrifice of timeliness, responsiveness, decisiveness and missed opportunities. This, along with referencing Sturdy et al.’s (2009) three-year study of consulting, found that consultant’s are “not that innovative or different as is often thought. That much of the mystic of management consulting has faded.” More importantly, that consultants need to be doing more than acting as “knowledge brokers…” Again, implying that information is power unless that information already exists on the internet!
At OTM, we couldn’t agree more that these trends are real and the landscape is indeed changing! And thankfully, ON THE MARK is ahead of the curve...First, our approach to consulting goes well beyond simply providing information. We bring to our customers the know-how and wisdom that only comes with 20+ years of planning and implementing complex change. Then, we use this know-how to bring about change real fast – so fast that it has kept many an executive team awake at night.
We always start with the customer experience...so that all change is aligned with delivering that experience. Then, as if that is not enough, we partner with internal resources and work transparently – teaching them along the way so that they won’t need us next time.
It’s difficult to find any business, let alone a consultancy, that structures their work and methodology around delivering solutions deliberately designed to allow the customer to fulfill their own needs in the future and for the long term.
- Mark LaScola, Managing Principal, ON THE MARK
Articles & publications referenced:
Edgecliffe-Johnson, A. (2010) "McKinsey’s joint venture changes structure." Retrieved August 10, 2010 from the Financial Times website: http://www.ft.com/.
Stern, S. (2010) "Consultants face need for survival strategy." Retrieved August 10, 2010 from the Financial Times website: http://www.ft.com/.
Stern, S. (2010) "Strategy consultants need some new ideas." Retrieved August 10, 2010 from the Financial Times website: http://www.ft.com/.
Sturdy, A. and Clark, T. and Fincham, R. and Handley, K. (2009) “Management consultancy : boundaries and knowledge in action.', Oxford ; New York: Oxford University Press.
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