Very interesting read on The Atlantic about why strategic consulting in the realm of both corporations and government entities is not as viable and fruitful a strategy (no pun intended) as it once was.
There is no good way to reliably predict the future in these markets anymore, except maybe by being privy to the desires of an ever-decreasing number of centrally connected power players. Companies still need guidance, but if rational analysis is nearly impossible, is it any wonder that executives are asking for less of it? What they are asking for is something, well, less productive.
What's really interesting about this article is how little sense it actually makes. Here's why:
- Author has been in consulting for 15 years, implying that he started in the field ~1997.
- Author argues that only in the past 4-5 years (since the financial crises), is this problem most evident.
- He uses Cold Warm-era strategic consulting as a gold standard, when his own understanding of it is likely only as good as someone's retelling of the situation.
I just don't understand how bureaucracies, consolidations, and the importance of policymakers in economic decisions is just now a problem. Certainly forty years ago there were massive bureaucracies, self-interested policymakers, and private-sector consolidations.
What do you guys think -- is the executive's unilateral power so great now that consulting no longer has a place? Why bother making an argument, when someone already has their anchored opinion on the matter? Also, is this even a new phenomenon?
I actually do agree with the author's point. I think the main thrust of his thesis is captured at length in another work: "Good Strategy, Bad Strategy"
It is true that the strategy crafted by today's corporations with the help of their outside consultants resemble more a statement of hope rather than an actual plan in which hard choices are made in order to reach an attainable objective.
Unfortunately, correct me if I am wrong, but the realm of strategy consulting has devolved to something resembling a rubber stamping committee of the management team's plans. This is done to either amortize the responsibility if the plans should fail and, more generally, to keep good relations with the client and not piss them off.
However, this does not preclude the industry from generating valuable insights, etc. Valuable consulting work is still done - but are those great thoughts actually put into action?
I would generally agree Briefcase -- I feel the market for consulting is still as wide as it is due in part to the fact that justifying some top-down policy is easier if a "neutral" third-party makes a similar recommendation.
By and large, one could argue that those valuable insights probably don't make it to the realm of policy, but even so, on a smaller scale I'm pretty sure than consultants make a substantial difference for companies. In any event, there are still tons of middle-sized companies that can benefit greatly from consulting and might not be subject to these structural problems that the author espouses.
I do agree that middle-sized companies can benefit from strategic insights - at the same time, I see two issues that this poses with regard to the current structure of the consulting industry
Of course, good strategy work is being done - but it is becoming less and less common
I don't know too much about consulting in general, but in IB at least, boutique banks still serve a very important purpose, both alongside their bulge-bracket counterparts and at levels that are more regionally-focused, etc.
I'm probably not in any way qualified to talk about boutique consulting firms, and I don't even know how influential they are as compared to boutique IBs, but do you think this could put boutique consulting shops in a stronger position vis-a-vis MBBs? I assume "middle-market" consultancies are fairly common...
i got monkey shit cuz i didnt read the whole thing? ridiculous!
Is it ?
Disclaimer : I didn't throw shit at u !
This article is interesting, but it really doesn't describe "Strategy Consulting" as MBB practices and most of WSO knows. The author describes himself as a "futurist," and his business appears to be forecasting long-term industry trends. I'm not sure whether or not long-term forecasting is really getting harder, but I'll take his word for it.
On the other hand, most MBB engagements don't involve that kind of long-term, futuristic thinking. Instead, they are about how a company can change itself and/or reposition itself in the current marketplace (or, at most, projecting tech trends a few years ahead). That's very different than Garland's "Future Trends 2025"-type analysis.
who reads The Atlantic???
I have a negative view of the financial consulting industry and think it's a bunch of b.s. Many of these people tout revolutionary theories/ideas/concepts every month, year, decade, etc. I cannot fathom why people pay consultants for their services.
I respect consultants for their efforts but just am skeptical about their contribution. I don't think they bring any value. If anything their ideas are published in academic circles months in advance.
When people say "no pun intended" they always intend that people realize how smart they are for setting up the sentence that way. Annoying.
It wasn't even really a pun either
Boards will always trust MBB more than their management teams. They come from those shops themselves.
Pure strategy consulting will never go out of style
"There is no good way to reliably predict the future in these markets anymore"
?
When have strategy consultants ever been able to reliably predict the future? They just put together bullshit power point slides and then go onto the next project.
asia i banker
ur racist
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