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Consultancies typically follow a fairly linear path in terms of growth and maturity. There are various thresholds that firms face – primarily in size – that can prove difficult to cross. Many firms remain mired at levels <$20m annual revenue due to their inability to manage rapid growth.

Part of the problem is that early-stage growth is characterized by ad hoc support services; senior consulting practitioners/partners typically manage such functions as marketing and HR with tactical assistance from staff-level personnel. Many boutiques struggle as business scales because the operational demands of running the firm consume increasing amounts of otherwise billable time.

The consulting industry has a very large population of smaller firms whose owners fail to relinquish day-to-day management of back-office operations. While seemingly reasonable from the owner/partner perspective, those managing the firm face the same challenges as their clients; what activities should be managed with internal resources, and what can (and should) be outsourced for efficiency and profitability?

Consultants are trained to understand cost-benefit scenarios and apply those to their clients. At the same time, consulting firms become so consumed with their clients’ business that they can lose sight of their own.

Our research indicates that those executives who are managing consulting operations tend to emphasize client-facing activities – business development, marketing, branding – first and foremost. The priorities are understandable, but potentially shortsighted.

Most global consulting firms make sizable investments in both the people and systems to manage their infrastructure. Small firms’ historical seat-of-the-pants approach has evolved to some degree. But it’s obvious that many boutique firms would benefit greatly to taking the same medicine they’re prescribing to their clients.