Apr
5
2019
Transformation is one of those words that means different things in different settings. In the popular Transformer movies, cars turn into robots and blast away at each other. In consulting, consultants “transform” struggling organizations and turn them into great organizations that leapfrog competitors (or more commonly, make them less-struggling organizations that live for another day).
Apr
2
2019
In a production environment, quality is rooted in infinitely detailed engineering standards and controls. Every process and part is specified, constructed, and measured the product works. Zero defects is the benchmark, and the lowest assembly workers can be empowered to stop the line if they spot a mistake.
Mar
8
2019
More than half a century ago, US Supreme Court Justice Potter Stewart famously characterized pornography by stating: “… I know it when I see it.” Most management consulting firms seem to adopt the same mindset when it comes to branding. Achieving that exulted status as “trusted advisor” is ephemeral and only visible to those who have witnessed the service.
Jan
18
2019
I was talking with a colleague recently concerning a theory that has been bandied about for the better part of my 25 years covering consulting – professional service firms that merge multiple and disparate PS businesses into an ultimate “one stop shop.” The goal is that clients, of course, will flock to the Walmart/Amazon/Google of professional services.
Dec
14
2018
Ten years ago at this time, the financial meltdown started sucking the consulting industry down a vortex from which it took almost four years to recover. The industry has been strong for the last half-decade and the general consensus is that consulting’s boat has risen with the economic tide. The Wall Street Journal reported this week on the Big 4’s collective earnings reports by observing: “The 10.4% combined revenue growth was the firms’ strongest since at least the 2008 financial crisis.”
Dec
7
2018
Branding consulting firms has always been a tricky proposition. The industry’s stalwarts all followed the values-driven underpinnings of their founders. McKinsey, Bowers, Kearney, Henderson, Bain were the Rockefellers, Vanderbilts, and Carnegies of consulting.
Nov
2
2018
Three seemingly unrelated events within the consulting world add credence to the industry’s altering landscape.
First, LEK, the highly respected strategy boutique, filed its inaugural annual report, which detailed its restructuring from a partnership into a corporate group. The rationale was “based on a desire to grow and develop the business through greater investment.” Translation: partners’ own money probably couldn’t underwrite the business enough to keep pace with larger players.
Oct
24
2018
A recent Financial Times article compared consultants to rats -- the hypothesis being that both are plentiful and both are able to sniff out plentiful food sources.
Oct
15
2018
“Fee fungibility” is a term I’ve used quite often to describe how management consultants approach pricing. Yes, all firms have rate cards that show hourly/daily rates by various staff levels. Those rate sheets hark back to a simpler time, when consulting’s time-and-materials approach resembled genteel country lawyers or green-shaded accountants.
Oct
5
2018
The Fourth Industrial Revolution is upon us, and consulting firms are no exception in their need to adapt. The World Economic Forum said that, “The Fourth is evolving at an exponential rather than a linear pace. Moreover, it is disrupting almost every industry in every country. And the breadth and depth of these changes herald the transformation of entire systems of production, management, and governance.”
