| Topic Name: |
The Death of Strategy Consulting |
| Message Name: |
There is an alternative to the "pure strategy" consultancy |
| Date Posted: |
02/23/2002 |
| In Reply To: |
The rumors of Strategy Consulting's death have not been exaggerated. All of the so-called infallible top-tier firms that have taken turns claiming that they are doing better than the industry as a whole and that their stellar brands would help them ride out the economic downturn (unlike their unfortunate competitors) have been hush-hushing their own low utilization rates, accelerated up-or-out policies, deferred or reneging on offers to top candidates, and generally taking away the best aspects of the career path (expense accounts, plenty of interesting, high-level work). Consider the true stories from the so-called "best of the best":
McKinsey: Lays of their entire 2nd year Analyst class in San Francisco and Los Angeles. Euphemistically call it "ending their analyst program early." Nonsense -- layoffs are layoffs.
BCG: Finally caves in a proceeds to lay off between 20-50% of their workforce firm-wide, with Asia hit hardest but North America not spared. Entire classes of Associates at risk, including top performers.
Monitor: "Unprecedented conditions" results in firm-wide layoffs last summer and many new offeree deferrals.
Arthur D Litte: The founder of the strategy industry is on the verge of bankruptcy and cannot find an angel after many months of defaulting on loans.
Booz-Allen Hamilton: Lays off people at all levels of the firm, from partner on down, and rescinds offers.
Other, lesser firms, have been predictably hit as hard or worse.
So a word to the wise: Consulting is dead. Clients have finally realized what everyone in the industry knew the first time they made a Powerpoint, that the work they were doing had no tangible usefulness.
As attractive as the industry is for high-flying undergrads and MBAs, it was always better for the consultants than for their clients, a business model doomed for failure once the fad wore out.
Seek alternative employment. |
| Message: |
I agree with zxcv.
But there is an answer to the people who think that great idea on Powerpoint slides, on Excel spreadsheets, or on hundred pages of Word documents are not necessary worth the money.
Instead of thinking or finding "THE" idea, or strategy, the way to help clients is to help them realize their ideas. From the ideas to the "real" solution which can go live.
Of course this is not a new consulting approach, but it is a win-win approach, for both clients and consultancy. Accenture acknowledges this and is taking it as the new leitmotiv "Innovation delivered".
"Pure strategy" Consulting might be down, but I think there is still a lot to do for "Smart" Consulting.
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