| Topic Name: |
Consulting long-term |
| Message Name: |
growth rates in top MC |
| Date Posted: |
09/20/2001 |
| In Reply To: |
I haven't seen the McKinsey thread, but to me the answer is fairly simple: B/B/Ms' reputations are a barrier to entry, and so as long as they maintain their reputations they will remain strong. A parallel: there are essentially 6 big i-banking houses on Wall Street, and there have been since the time of J.P. Morgan, because those 6 firms have sterling reputations. Reputation solves for moral hazard. A firm puts its reputation on the line with each project. We work insane hours to avoid delivering poor work, which would harm our reputation and impair our ability to get clients. There was perhaps a threat generated by the e-consultancies, but if anyone thinks marchFIRST, Razorfish, or any other bankrupt company is going to threaten firms like BCG, they ought to have their head examined. On Wall Street and in consulting, it's all about reputation. |
| Message: |
The McK and BCG are thought leaders - despite the enormous amount of hatred and envy they manage to generate.
Considering that there are more thought leaders who ahve started their own niche firms in the last decade one wonders whether the process of pioneering 'thought leadership' and 'excellence' as in prior decades in these firms is under attack ...
the same business models were successful for 50 years now but whther they are irrelevant today - I dont think so.
as long as the selection criteria in these top firms remain a sstringent as today their 'thought leadership' will be maintained for a looong time to come...
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