Consulting is a parasite
Obviously there is "value" in consulting and I don't need anyone to give me definitions of the meaningless work you do. Think about it, you guys are hired as a third party to essentially "improve" and aid in other businesses, however, there is no success ratio or incentive to be successful. The success ratio is most likely below 50% and is wildly expensive.
Shall we see how triggered the consultants are?
You will find that a lot of consultants probably agree with you lol.
Fair enough, but if consultants do not add much value, then why are they still able to demand high fees?
I think you're kind of right though. Extrapolating this, I reckon fees will fall over the next decade. This will not just be the case in consulting but basically any industry that still, to some extent, relies on prestige.
Read this: https://www.wallstreetoasis.com/forums/consultingmoney-suck#comment-222…
I wonder if there has been some sort of hierarchical structure that created multiple prestigious industries. Almost creating Native American tribes (businesses) with levels of work. Where is the future going?
"Real skills, BS job"
Not a consaltant but interviewed with MBB before deciding not to pursue it further. Why? One of my cousins who took the IB -> M7 MBA -> MBB route told me the above when I asked him what he thinks about MBB consulting. He's fairly successful so I figured I should listen to him...
As long as we can find insecure CEOs who don't have the balls or skills to fix their own damn business, we'll keep taking their money.
Same with finance:
- investing: traders just flip stock, not contributing to the real word, just trying to rob uninformed / ill-prepared / less fortunate traders
- corp. fin.: just pushing pieces of paper around, creating bureaucracy, wasting everybody's time on pointless calls, most of the time spent at work is not productive
- bankers: most of the M&As destroy value. also, why is there even a need for a middle man. if you want to sell your company, just pick up the phone and call up larger companies in your industry, then you can set up a price bid. if you want to IPO, let people bid for your stock directly. you wanna sell 100M shares, announce that you'll sell them on MM/DD/YY and sell them to the highest 100M bids. wanna sell more later, sell at market. you can place a floor price as well - you can ask a Big4 to run a DCF for you with your projections and use it as a floor value for IPO - it will take a Big4 Analyst less than a day. there is also software to generate a DCF based on your projections, so even a Big4 Analyst is not needed.
Overall, even outside of finance and consulting, most jobs are pointless.
Inherently Consulting (Management Consulting esp.) is a convenient and expensive way for C-Level Execs to cover for their asses imo. My firm hires MBB for some "Strategic Transformation" yet when i see their deliverables its mostly benchmarking and some random projected numbers sprinkled with fancy buzzwords. When instead the work could be done by the internal Corp. Development team...... if they actually wanted to invest in some data collection/database/market research subscription at 1/10th of the price and 1/2 the time.
We sometimes wonder why would we spent millions for something that 90% of us already know, just presented in a fancier way..
The C-level could throw the blame to the consultants saying "we we're just following recommendations", but then they kept hiring them because having an MBB basically rubber stamping your research/transformation is equal to having a rigorously peer-reviewed research paper to other people.
This seems like the most accurate response to me. Basically consultants provide value to C-suite by giving them some support from a “reputable source” so if stuff goes wrong it’s not seen as their fault
Harum ducimus nostrum totam dolorem. Est vel enim velit recusandae veniam quo. Praesentium saepe at qui exercitationem necessitatibus cum rerum. Laborum reprehenderit amet quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...