Killing Strategy: The Disruption Of Management Consulting

Since former Boston Consulting Group consultant Clayton Christensen first used the words «disruptive innovation» in 1995, nimble startups have challenged incumbents in every field from music to manufacturing.

 
The industries that have proven the most vulnerable to disruption have been those with:

-One or a few major players

-Relatively outdated business practices

-Slow technology adoption

Oddly, management consulting is rarely named in discussions about industries vulnerable to disruption (unless you ask Christensen), despite the fact that it meets all of the above qualifications.

Over the last 60 years, the large management consultancies have grown and maintained their status through prestige, branding, and long-time client relationships. Consulting itself is a $240B industry, per CB Insights’ Industry Analyst Consensus. But McKinsey, BCG, and Bain are ultimately no more immune to the forces of disruption than any other industry. Management consulting is primarily human-driven. Hourly or per diem billing, rather than outcome or value-based pricing, is still the general rule (even as industries like law move away from billable hours). The increasing pace of technological change means that more and more, consultants’ recommendations are out of date nearly as soon as they’re made.

Consulting, in other words, is inefficient, inflexible, and slow to adapt. Any of these weaknesses alone would threaten disruption — possessing all of them points to a major fight ahead.

McKinsey, Bain, and BCG have weathered existential crises before. These consultancies offer a highly brand-driven, prestigious, and hard-to-quantify product to Fortune 100 companies with plenty of cash to spend.

If you dig deeper into the specific types of services that these firms offer their clients today, however, it’s clear that a tectonic disruption is hitting management consulting just as it has hit many other industries before. It may be a slow and gradual change, and the big names may well endure — no matter how thinned their ranks — but a change is coming.

Συνέχεια ανάγνωσης εδώ: www.cbinsights.com

Σχετικά Άρθρα