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Efficiency in consulting takes many forms. Yes, there's getting the work done more efficiently, but there's also ensuring you've got a deep pipeline so you have

Efficiency in consulting takes many forms. Yes, there's getting the work done more efficiently, but there's also ensuring you've got a deep pipeline so you have fewer idle hours, billing meticulously for every single expense, having commission/kick-back deals for referrals (ideally you're transparent about this with your clients, but they generally don't mind), and squeezing your employees wages (often structured as paying them a cut of their billables, and a bonus if they go in to overtime)... and that's just the obvious stuff. Consulting businesses are generally seen as "sweatshops" because they are really more a like a logistics business, where your profit comes from the marginal efficiencies.

iancmceachern 3y ago
Totally agree. I've found they're great things when they're run like studios, with one or a handful of principles at the top that are there for the long haul and then folks that come in and out as needed and available working for them. This is what I've modeled my product design consultancy around. Then there are the other ones that are often owned by private equity folks, or run by manager types that can't do the work themselves. These in my experience are not built around passion for the craft like the first bucket. These usually end up being sweatshops. My advice- hire a firm that you know the owner(s), and they're people, not a board. It's the same for Vets, doctors offices, hardware stores, etc.
- cyanydeez 3y ago
  my boss got his small company bought out by private equity masquerading as typical consulting firm. it took me a beat to recognize what was happening but in short, they pushed admin/management down. it didn't matter what the apparent client hierarchy looked like, they're allergic to the actual work. Suffice to say, they constantly wanted to push me towards managing without offering any of the value.

iancmceachern 3y ago

Totally agree. I've found they're great things when they're run like studios, with one or a handful of principles at the top that are there for the long haul and then folks that come in and out as needed and available working for them. This is what I've modeled my product design consultancy around. Then there are the other ones that are often owned by private equity folks, or run by manager types that can't do the work themselves. These in my experience are not built around passion for the craft like the first bucket. These usually end up being sweatshops. My advice- hire a firm that you know the owner(s), and they're people, not a board. It's the same for Vets, doctors offices, hardware stores, etc.

cyanydeez 3y ago
my boss got his small company bought out by private equity masquerading as typical consulting firm. it took me a beat to recognize what was happening but in short, they pushed admin/management down. it didn't matter what the apparent client hierarchy looked like, they're allergic to the actual work. Suffice to say, they constantly wanted to push me towards managing without offering any of the value.