Consulting powerhouses & the businesses they save

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criticism about consulting.

criticism about consulting.

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  • 1. (*) Consulting Powerhouses and the Businesses They Save and Ruin Let me introduce the topic I want to talk about using the title of this book written by James O'Shea and Charles Madigan. It is a book that is critical of the functioning and importance of Management Consulting (Strategy Consulting) as an industry. (*) is a book written by James O'Shea and Charles Madigan
  • 2. Management Consulting matters
    • I’m critical of the functioning and importance of Management Consulting.
    • I won’t talk about the book, but I would like to give my opinion and show my criticism on this issue.
  • 3. Management Consulting matters
    • Management consulting (sometimes also called strategy consulting) refers to the practice of helping companies to improve performance through analysis of existing business problems and development of future plans.
  • 4. Management Consulting matters
    • Management consulting grew with the rise of management as a unique field of study. The first management consulting firm was Arthur D. Little, founded in 1886.
    • The first pure management and strategy consulting company was McKinsey & Company. McKinsey was founded in Chicago during 1926.
  • 5. Management Consulting matters
    • Management consulting grew first in the USA, because of deep cultural factors.
    • As it was accepted that, Management and Boards alike, might not be competent in all circumstances. So external competency was seen as normal to solve a business problem.
  • 6. Management Consulting matters
    • By contrast, in Europe, management is connected with emotional and cultural dimensions, where the manager is bound to be competent at all times.
    • Conversely it must also be said that in those days (and still today) the average level of education of the executives was significantly lower in the USA than in Europe, where managers were "Grandes Ecoles" graduates (France) or "Doktor" (Germany).
  • 7. Management Consulting matters
    • Management consultants are often criticized for overuse of buzzwords, reliance on management fads, and a failure to develop executable plans that can be followed through.
    • Management consultants are often charged with “stating the obvious” and lacking the experience in corporate business to warrant sound advice.
  • 8. Management Consulting matters
    • Clients think bad consultants are ones who deliver empty promises and charge expensive fees.
    • These consultants bring nothing innovative to the table and often regurgitate “prepackaged” strategies irrelevant to the client’s issue.
  • 9. Management Consulting matters
    • Further criticisms include: analysis reports only, junior consultants charging senior rates, reselling similar reports to multiple clients as "custom work", lack of innovation, overbilling for days not worked, . . .
  • 10. Management Consulting matters
    • However, there are good management consulting firms that internalize specific codes of ethics to fortify clientèle relationships by offering fair advice and accepting transactions only if they benefit their clients.
    • In other words, if the consultancy cannot provide effective services to their clients who are willing to pay the fees, it will pass on the opportunity.
  • 11. Management Consulting matters Dilbert portrays compare culture as a “Kafkaesque” world of “bureaucracy” for its own sake and office politics that stand in the way of productivity, where employees' skills and efforts are not rewarded, and “busy work” praised. Much of the humor emerges as the audience sees the characters making obviously ridiculous decisions that are natural reactions to “mismanagement”.
  • 12. Management Consulting matters
    • Thanks for your attention