BFFs: Consulting’s Virtuous Cycle

Forbes’ annual “Best” Consulting Firms has elicited a fair bit of chest-thumping by many of the the 229 firms that made the list. Then again, with 32 sectors and services areas and multiple sub-lists by size and function, virtually every firm scores well in one category or another. So huzzahs all around, and feel free to pop the champagne.

(Full disclosure: we’re in the business of rating consulting firms, so I tend to have a jaundiced view of ratings that appear a bit superficial.)

I don’t question the statistical validity of Forbes’ approach. They queried 7,500 senior consultants and 1,000 clients. What bothers me is the self-validation that typically occurs when asking self-validating questions. Respondents were asked to recommend consultancies from a pre-loaded list, and across predetermined sectors and functional areas; self-nominations were not considered.

When you simply ask someone which firm they would recommend, it’s like an exchange with my opera-loving friend:

Her: “How did you like the opera?”
Me: “I thought it was wonderful!”
Her: “But you don’t like the opera?”
Me: “I still thought it was wonderful!”

Context, knowledge, and experience all matter when soliciting opinions. Partners who may give a one-star restaurant review will rarely speak ill of their time with any of the big global firms. Why? Because it would cheapen their own reputation.

In the same vein, clients — particularly c-level executives — rarely bash the firm on which they’ve just spent several hundreds of thousands, or many millions of dollars. And if any rancor does exist, it usually comes out via lawsuits, which are few in the consulting industry.

Consulting is a secretive business and breaking this echo chamber of positivity can be tough. But it’s necessary if clients truly want to make informed decisions. Heck, at least if I’m asking my neighbor’s opinion on lawn-service providers, I’d look over the fence first.

admin