Deloitte Completes Acquisition of Monitor’s Global Strategy Consulting Business - Jan 11, 2013
PwC completes its acquisition of Booz & Company - Apr 3, 2014
With 2 of the biggest strategy consulting firms getting acquired in just over an year's time, the value proposition of the core consulting model is increasingly being questioned. With heavy reliance on execution, does it still make sense to spend millions on a group of consultants who are just going to provide a set of slides as an output and nothing actionable to show for themselves? Are you better off spending a tenth of the same budget and getting a slightly less detailed study from a research or advisory firm?
In the mantra of a true MBA... it all depends!
Yes, research is a good alternative when all you're looking for is some intelligence on the market place. There is nothing wrong in understanding what your competitors are doing and then figuring out for yourself what the best course of action might be to ensure success. But in a world that changes so rapidly, hardly anyone has any time to distance themselves from the day-to-day and take a look at the bigger picture.
Every year board of directors of the Fortune 500, convene a strategy meeting where the decision is taken how the company is going to be run for the next 3-4 quarters. There is no question on the availability of brain power in each of these firms but why then do they still feel the need for external help?
The decision between research and consulting is not about the value add it brings but rather do you have the time to do this for yourself. With everyone so highly focused on execution, it just sometimes makes sense to let someone else take care of the planning part of things. But what is the extent of planning you need and where can you get the same?
When is research a better option than consulting?
PwC completes its acquisition of Booz & Company - Apr 3, 2014
With 2 of the biggest strategy consulting firms getting acquired in just over an year's time, the value proposition of the core consulting model is increasingly being questioned. With heavy reliance on execution, does it still make sense to spend millions on a group of consultants who are just going to provide a set of slides as an output and nothing actionable to show for themselves? Are you better off spending a tenth of the same budget and getting a slightly less detailed study from a research or advisory firm?
In the mantra of a true MBA... it all depends!
Yes, research is a good alternative when all you're looking for is some intelligence on the market place. There is nothing wrong in understanding what your competitors are doing and then figuring out for yourself what the best course of action might be to ensure success. But in a world that changes so rapidly, hardly anyone has any time to distance themselves from the day-to-day and take a look at the bigger picture.
Every year board of directors of the Fortune 500, convene a strategy meeting where the decision is taken how the company is going to be run for the next 3-4 quarters. There is no question on the availability of brain power in each of these firms but why then do they still feel the need for external help?
The decision between research and consulting is not about the value add it brings but rather do you have the time to do this for yourself. With everyone so highly focused on execution, it just sometimes makes sense to let someone else take care of the planning part of things. But what is the extent of planning you need and where can you get the same?
When is research a better option than consulting?
- When you have the luxury of time to consume the research data internally and draw meaningful strategy out of it
- When you know what needs to be done already but need some facts to back it up
- When the times are good and the only decision left to make is where should you invest rather than if you should invest at all
On the other hand, consultants can come in handy if:
- If there are multiple strategies to take up each with its own pros and cons
- If the management ranks cant decide the best course of action between themselves and are in desperate need of a second opinion
- If the business is suffering and you can't for the life of you pinpoint the rotten arm
- Or if you need someone to come in and do the dirty work for you
Most of all, one needs to remember that in the end, you live with these decisions. Doesn't matter if you spend a million dollars on a consultant or a couple of thous at a researcher, the successful companies are run by the gut not by the numbers.
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