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You sound like a consultant who didn't like the relationship aspect of the business. 1) This is true; consultants are very expensive. But the $200/hr you're pa
by exelius 11y ago
You sound like a consultant who didn't like the relationship aspect of the business.
1) This is true; consultants are very expensive. But the $200/hr you're paying for the 23-year-old little shit also has to cover all the hours the partner with 30 years of relevant, awesome experience he can't bill against because he's too busy fixing the little shit's messes all day. It's a leveraged model; the guys at the top have the relationships and experience, while the guys at the bottom have energy and ambition that impress the client.
But on the flip side, I've also had enough clients burned by productized consulting services that they avoid them in general. Quality control is hard, even in the consulting world, which is why brand perception and relationships matter so damn much.
2) Relationships are everything. Management consultants are valuable exactly because they can help you solve #2 above: we make recommendations as to what you should do, then we sell you the follow-on work to actually do it for you (or at least train up a team inside your company on it). With "productized consulting as a service" you don't have the relationships, and you don't have a pipeline to win those relationships.
3) Maybe in strategy consulting (which is disappearing now anyway because it was always of dubious value); but in the management consulting world, 80% of what you have to do is understand what the client wants to accomplish. Once you have done that, you can go and take a deck that you already have, change a few things, and you're good to go, but getting there is the hard part. I can't tell you how many projects I've sold where what we eventually sold the client was something totally different than what they asked for initially.
But this last paragraph is why consulting will never go away (because it's what a consultant will tell a VP with budget after he's built up a rapport):
Ultimately, "productized consulting services" are simply shared services for small businesses. They come with all the ups and downs associated with shared services, and as such are not appropriate for every company. Might I suggest a short consulting engagement to identify areas where a shared services cost reduction plan might be effective?
- aaroncohn 11y agoAu contraire! I loved the relationship aspect of the business. Drinks with the client? Sure! Big fancy dinners? Yes pls. Talking to them about their kids? Too easy ;) That said, all that relationship was sorta BS stuff the client was paying for, but didn't really deliver value, ya know? To your point #1, fair, although partners are really just glorified sales guys selling a really expensive service. And the leveraged model you describe, while true, perfectly illustrates the massive inefficiencies in consulting. To #3, ehh, all the clients kind of want the same thing. More money! More customers! New products with big new markets! I don't agree that they're all a unique, delicate flowers that all want vastly different things. I think this illustrates what you're getting at though, so we may have to agree to disagree: https://blogs.perficient.com/spark/files/2011/07/treecomicbig.jpg https://blogs.perficient.com/spark/files/2011/07/treecomicbi...
- exelius 11y agoYeah; you make a great point about delivering value. I do think the partners brought a lot to the table though: they had usually done these types of projects before, so you at least had someone to point you in the right direction. And if not them, I used to reach out to other people internally for expertise on specific issues. I don't think that clients are delicate unique flowers, but they do often have a myopic view of the problem, so what they ask you for may not actually solve the problem they really have. Consultants at VERY large companies actually serve a huge communication function: because we get shuffled around from one part of the company to another, we're really good at connecting work that was done in one part of the company with another part of the company. Basically, because our clients don't know how to communicate with each other and form relationships, they hire us to do it for them. That's largely the niche that I see consulting settling into, and it's really not a bad division of labor.