The consulting industry as we once knew it is gone. Even when we get past coronavirus and whatever is the next pandemic, there won’t be as much of a need to hop on a plane. The technology use today will carry forward and the model will forever change. However, the need for consulting has never been higher. If you aren’t renting high end, high powered, brilliants minds to think through today’s business challenges, then you may face a problem evolving your business.
Management consulting is the practice of helping organizations improve their performance by analyzing existing problems and developing improvement plans. McKinsey CEO Kevin Sneader has spoken out about what he believes is the impact of the global coronavirus pandemic on the business world, saying that the impact on the consulting industry over the next few years “will mean nothing will be the same.” The managing director of McKinley, the leading consulting firm in North America, analyzed the policies that organizations, entrepreneurs, and entrepreneurs will apply to adapt to the big changes in this situation. He said the world will not return to normal until the outbreak of the coronvirus subsides. According to a recent report by the World Economic Forum, the consulting market is expected to shrink to an estimated $132 billion by 2020. Sources: 7, 10, 13
Consultants often have a pedigree they have worked hard to build, including degrees from top schools and consulting firms with the experience of their firm. There are several companies active in the global consulting industry, including McKinley, McKinsey, Deloitte, Bain & Co. and IBM’s consulting division. When companies need specialised expertise and services that consultants provide, including a wide range of expertise in areas such as business consulting, research and business development, they hire consultants and companies to provide external advice. This does not mean that expertise is safe from disruption, but it is a cornerstone of the value system of management consultants. Sources: 0, 2, 6, 7
However, advice is not immune to such changes, as it is a heavy industry based on travel and the coronavirus safety model is not well suited to the needs of the consulting industry. After the pandemic, this is as true as ever, although organisations will still have to contend with significant changes. Many companies will seek to leverage the expertise of their management consultants by hiring independent consultants who can provide similar services at a lower cost. Instead of dealing with a typical global management consulting, many organizations will explore wealth consulting. Sources: 1, 2, 8
We expect more business consultants to switch to value-based pricing when they try to become consultants, not just service providers. Sources: 3
One model for the transformation of management consulting could be the “insider counsel revolution” that began to shake the legal world in the 1970 “s. NASA, writes historian Christopher McKenna, “would become a model for emerging from the hollowed-out structures of the private-sector consulting industry and corporate legal system. Sources: 4, 6
Ironically, under this new business model, the company found that its best customers were not only its customers, but also its employees and suppliers. BCG has changed the way people thought about their business through its famous 1m framework, also known as the growth and equity matrix. But his findings also changed the way they built businesses, not just in terms of the size of their customers. Sources: 6
Consulting firms handle this pressure differently, and one company has stood out: Bain & Company. Today, Bain, a major management consultancy, is focusing on the growing need for digital and technology consulting. Individual consultants and consulting firms are building digital brand solutions to reinvent consulting, transforming it from a project on Gantt’s charts to a solution that endures beyond subscription and extends well beyond the end of the engagement. Sources: 6, 11
The strategic side of counselling is that practising counsellors actually come in and help companies make changes. Instead of consultants just telling companies what to do to help them, consulting firms are now aware of this. Customers assess which solutions are best based on the specific domain knowledge required to solve the problem. Sources: 6
CEO of a Fortune 100 company is a specific type of problem that requires a consulting firm, whether it is human resources, corporate governance, human capital management, or financial management. Although Alvarez & Marsal advocates even better executive compensation, companies still need to address human resources as a first step. Sources: 6, 10
It may seem that when companies hire ex-advisers to make their strategy in-house and work less with large consulting firms, the problem is that it’s just like that. Consulting firms are commissioned and investigated to determine which important developments will be important alongside their customers. To understand what the future looks like after the revolution for large consultancies, take a look at the four consulting functions. Sources: 6
I think more organisations will realise that it is silly to spend money on weekly trips to get local counsellors and forget about them. I can’t imagine the orgs feeling that an analyst-level consultant is regularly needed on the ground. Sources: 12
While consultants will stress the importance of saving resources, improving patient experience, and improving performance with less clamor, most healthcare customers will recognize the value of allocating resources to the right people, not the wrong people. As long as consultancies pursue a growth strategy rather than a survival strategy, crises will provide an opportunity to recruit the best and brightest people with the skills and experience needed for long-term success, and not just for the moment.