3 ms·

Why do people hire them though? Surely at that price they can hire an individual consultant.

by muzani 1y ago

al_borland 1y ago
To transfer accountability for risky decisions?
smt88 1y ago
I think it's a common misconception that management consultants are hired to provide advice or add value. If you look at who actually does the work (sleepy, recent college grads with zero work experience and no understanding of the target industry), how could consultants add value? Do you really think a CEO with 20 years of experience in an industry needs/wants a PowerPoint about strategy? The reason they're hired is that decision-makers at firms want to take risk, but they don't want to be fired if it blows up in their face. If I'm a CEO and I hire McKinsey to recommend to me the thing I already wanted to do, then I can take credit if it works, or I can cover my ass if it fails and say, "McKinsey's Harvard-trained consultants told me to do this." Other firms, like Accenture, actually do some implementation of projects, which means they're also a temporary staffing solution in some cases.
- muzani 1y ago
  Sounds about right. I used to consult. The briefing was that we were a bulletproof vest. We hired a ton of people. I didn't know what they did, but the boss told us that their jobs was mainly seat filling. I remember Saudi cutting funding for consultants though: https://dgagroup.com/insight/asg-analysis-saudi-arabia-issues-new-royal-order-barring-government-use-foreign-consultants/ https://dgagroup.com/insight/asg-analysis-saudi-arabia-issue... The king was supposedly pissed that the nation's leaders were not even taking responsibility for the economic plan. They'd say things like, "Here's a plan written by McKinsey." Which is a little odd because you'd think that they'd steal ideas and all that. It's easier to claim ownership. It's more cost-effective to fire the people who hire expensive consultants.

Why do people hire them though? Surely at that price they can hire an individual consultant.

by muzani 1y ago

Why do people hire them though? Surely at that price they can hire an individual consultant.

al_borland 1y ago

To transfer accountability for risky decisions?

smt88 1y ago

I think it's a common misconception that management consultants are hired to provide advice or add value. If you look at who actually does the work (sleepy, recent college grads with zero work experience and no understanding of the target industry), how could consultants add value? Do you really think a CEO with 20 years of experience in an industry needs/wants a PowerPoint about strategy? The reason they're hired is that decision-makers at firms want to take risk, but they don't want to be fired if it blows up in their face. If I'm a CEO and I hire McKinsey to recommend to me the thing I already wanted to do, then I can take credit if it works, or I can cover my ass if it fails and say, "McKinsey's Harvard-trained consultants told me to do this." Other firms, like Accenture, actually do some implementation of projects, which means they're also a temporary staffing solution in some cases.

muzani 1y ago
Sounds about right. I used to consult. The briefing was that we were a bulletproof vest. We hired a ton of people. I didn't know what they did, but the boss told us that their jobs was mainly seat filling. I remember Saudi cutting funding for consultants though: https://dgagroup.com/insight/asg-analysis-saudi-arabia-issues-new-royal-order-barring-government-use-foreign-consultants/ https://dgagroup.com/insight/asg-analysis-saudi-arabia-issue... The king was supposedly pissed that the nation's leaders were not even taking responsibility for the economic plan. They'd say things like, "Here's a plan written by McKinsey." Which is a little odd because you'd think that they'd steal ideas and all that. It's easier to claim ownership. It's more cost-effective to fire the people who hire expensive consultants.