| Topic Name: |
The Death of Strategy Consulting |
| Message Name: |
much wisdom here |
| Date Posted: |
02/25/2002 |
| In Reply To: |
I agree with the original poster. Much like the dot.com bubble, strategy consulting will soon be gone for good.
You outsource the stuff that is least important to your business, (janitors or temps), not the most important decisions.
The success of consulting goes to the heart of the principal agent problem. Managers at companies don't pay out of there own pocket the ridiculous fees that strategy consultants charge.
Therefore, they use them as scapegoats or backup for decisions they would have made anyway. Post Enron, these type of corporate waste is going to come under fire. |
| Message: |
I have never understood why companies pay huge money to have outside people "think" about their business and ignore the people who know the business inside out who work at the company and who will gladly think for just their regular salary.
But to make them scapegoats... very true. It seams that after the strategy consultans leave, there are always layoffs. The managers can blame the consultants. "Hey guys, I'd have kept you on board, but the consultants said we had to fire you."
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