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The End of Traditional Consultancy?

We have entered a new stage of global economic growth: business has changed profoundly – driven by aggressively advancing technology and a volatile global economy.

Trade flows have shifted, the pace of change has accelerated and higher levels of risk and uncertainty are the norm. Successful companies need to harness the energy of their employees as they seek new and sustainable growth opportunities.

They need to be inventive, agile and change enabled with a culture of initiative, urgency and innovation.

It is against this backdrop that a recent report has explored how companies are making use of management consultancies: in particular, how critical elements of culture change are being delivered to UK PLC.

It discovered that a new model of management consultancy is needed. The demands and aspirations of businesses that are future proof are not being met by the current approaches of many consultancy interventions.

The central model of consultancy has its roots in the early 20th century and is one of a ‘detached expert’:someone who brings the disciplined tools of finance, operations,
organisation and strategy to solve a problem.

The role of these consultancies is still relevant, but relationship skills - the ability to listen, empathise and understand the softer cultural facets of the organisation are now just as important.

It found the role of Consultants needs to focussed on coaching and supporting the client through a change programme.

Instead of the ‘sage on the stage’, employees require a ‘guide by their side’ to inspire ideas and confidence.

This was illustrated by some fairly startling statistics

  • Less than half (46%) of employees are engaged by the recommendations made by management consultants
  • 91% of business leaders are worried that hiring a management consultancy would be a waste of money

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