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www.goodmanlantern.com
HIRING A
MANAGEMENT
CONSULTANT
September 2016
www.goodmanlantern.com
In a comprehensive research we
interviewed 200 management
executives of Fortune 1000
companies, who...
www.goodmanlantern.com
WE ASKED EXECUTIVES:
Next Page
www.goodmanlantern.com
1: Why did you hire a management consultant*?
* Respondents were allowed to provide upto
2 answers,...
www.goodmanlantern.com
2: What specialised expertise did you hire consultants for*
* Respondents were allowed to provide u...
www.goodmanlantern.com
3: How did you choose your Management Consultant*?
* Respondents were allowed to provide upto
2 ans...
www.goodmanlantern.com
4: While making a decision, what is the most important marketing material
25.3
19.3 18
20.7
16.7
0
...
www.goodmanlantern.com
5: For your business, which Management Consultants would you prefer?
10.75
60.5
9.25
19.5
MBB i.e. ...
www.goodmanlantern.com
6: If you were to work with Boutique, Independent or Freelancers. What would be your
preference?
71...
www.goodmanlantern.com
7: How do you learn about the latest trends and stay up to date with your industry*?
* Respondents ...
www.goodmanlantern.com
8: What is the one reason you would not 're-hire' a management consultant?
"Extremely high
levels o...
www.goodmanlantern.com
9: What Management Consulting Trends will be followed by your business in the next 5
years*
28.5
41...
www.goodmanlantern.com
10: When working on projects would you expect the management consultant to bear the
cost of 'extern...
www.goodmanlantern.com
Overview:
Goodman Lantern is a fresh approach to Market Research and Develops
Engaging Content incl...
www.goodmanlantern.com
THANK YOU
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Survey on how and why top-level executives hire management consultants

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In an attempt to discover how and why top-level executives hire management consultants, Goodman Lantern conducted a survey of 200 executives in Fortune 1000 companies. The results showed that the two main reasons behind the hiring of management consultants were as follows:
1. To give a much-needed shift in strategy
2. To bring a fresh perspective

While the above-mentioned two reasons for hiring management consultants were the clear forerunners, various other significant needs were addressed as well – staffing, training, and fundraising, to mention a few. In terms of specialised expertise, financial and strategical advice were highly sought after with technology and human resources following closely behind.

The Hiring Process

On the subject of head-hunting management consultants, a large percentage of the interviewees alluded to using popular search engines such as Google and Bing. Generally speaking, more traditional recruitment methods such as phone calls, referrals, and company reputations were significantly less popular.

Astoundingly, 63% of Fortune 1000 executives stated that their number one reason for not re-hiring a management consultant was arrogance. On the other hand, only 17% of the panel seemed concerned about the quality of work supplied by the consultant. From this, we concluded that a consultant’s attitude and general demeanour are the foundations for a successful partnership between executives and consultants.

Management Consulting Trends

According to our research, nearly 42% of Fortune 1000 companies are steadily moving towards hiring in-house management consultants rather than leaning on large consulting firms. Those who preferred to outsource stated that they were more likely to do so from a developing economy. Additionally, most of our interviewees preferred to stretch payment of consulting fees over the period of a year. Despite the expectation that the Management Consulting market will grow to over $350 billion within the next year, efforts to cut back on costs are still hugely significant.

Primary and secondary research relating to markets, costs, industry trends, etc. often falls on an external research firm working in collaboration with the marketing consultant. Naturally, this would incur additional fees. When asked who should shoulder this financial burden, more than 50% of our interviewees were willing to contribute to the additional costs incurred.

Published in: Leadership & Management
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Survey on how and why top-level executives hire management consultants

  1. 1. www.goodmanlantern.com HIRING A MANAGEMENT CONSULTANT September 2016
  2. 2. www.goodmanlantern.com In a comprehensive research we interviewed 200 management executives of Fortune 1000 companies, who have previously hired Management Consultants
  3. 3. www.goodmanlantern.com WE ASKED EXECUTIVES: Next Page
  4. 4. www.goodmanlantern.com 1: Why did you hire a management consultant*? * Respondents were allowed to provide upto 2 answers, hence the cummiltive % is higher than 100 21 40.2 40.1 10.8 39.7 10. 20. 0 13 25 38 50 Short to medium-term staffing needs For major strategic shift Best practices across industries and functions Get Analytical Input Fresh perspective Training and skillset augmentation Fund raising Other Answer Resp. A1: Short to medium-term staffing needs 21.0% A2: For major strategic shift 40.2% A3: Best practices across industries and functions 40.1% A4: Get Analytical Input 10.8% A5: Fresh perspective 39.7% A6: Training and skillset augmentation 10.0% A7: Fund raising 20.0%
  5. 5. www.goodmanlantern.com 2: What specialised expertise did you hire consultants for* * Respondents were allowed to provide upto 2 answers, hence the cummiltive % is higher than 100 29 14.5 40. 24.6 23.7 0 10 20 30 40 50 Strategy Operations Financial Advisory Human Resources Technology Answer Resp. A1: Strategy 29.1% A2: Operations 14.5% A3: Financial Advisory 40.1% A4: Human Resources 24.6% A5: Technology 23.7%
  6. 6. www.goodmanlantern.com 3: How did you choose your Management Consultant*? * Respondents were allowed to provide upto 2 answers, hence the cummiltive % is higher than 100 22 60.1 22.4 23. 17.2 0 18 35 53 70 Direct referrals Using a search engine. Eg: Google and Bing Based on content we discovered. Eg: Blogs, articles or white papers Choose a large consulting firm based on their reputation. Emails, letters or phone calls received Other Answer Resp. A1: Direct referrals 22.3% A2: Using a search engine. Eg: Google and Bing 60.1% A3: Based on content we discovered. Eg: Blogs, articles or white papers 22.4% A4: Choose a large consulting firm based on their reputation. 23.0% A5: Emails, letters or phone calls received 17.2%
  7. 7. www.goodmanlantern.com 4: While making a decision, what is the most important marketing material 25.3 19.3 18 20.7 16.7 0 5 10 15 20 25 30 Website White Paper Articles and Blogs Business cards Social Media. Eg: Linkedin and Twitter First Second Third Fourth Fifth 0 10 20 30 40 50 First Second Third Fourth Fifth 1: Website First Second Third Fourth Fifth First Second Third Fourth Fifth 0 20 40 60 2: White Paper First Second Third Fourth Fifth First Second Third Fourth Fifth 0 20 40 60 3: Articles and Blogs First Secon d Third Fourth Fifth First Second Third Fourth Fifth 0 20 40 4: Business cards First Secon d Third Fourth Fifth First Second Third Fourth Fifth 0 20 40 60 5: Social Media. Eg: Linkedin and Twitter
  8. 8. www.goodmanlantern.com 5: For your business, which Management Consultants would you prefer? 10.75 60.5 9.25 19.5 MBB i.e. McKinsey, BCG or Bain Mega-Firms (including the Big 4). Eg: Deloitte, EY, PWC, KPMG etc Boutique Firms Independent or Freelancers 0 10 20 30 40 50 60 70 Answer Resp. A1: MBB i.e. McKinsey, BCG or Bain 10.75% A2: Mega-Firms (including the Big 4). Eg: Deloitte, EY, PWC, KPMG etc 60.5% A3: Boutique Firms 9.25% A4: Independent or Freelancers 19.5%
  9. 9. www.goodmanlantern.com 6: If you were to work with Boutique, Independent or Freelancers. What would be your preference? 71.5 9.5 19 Working with them 'Directly' Working via 'Consultant Networks'. Eg: A Connect, Holker Watkin, Barton Partnership Find them online via sites. Eg: MBA&Company, Hourlynerd.com and others 0 10 20 30 40 50 60 70 80 Answer Resp. A1: Working with them 'Directly' 71.5% A2: Working via 'Consultant Networks'. Eg: A Connect, Holker Watkin, Barton Partnership 9.5% A3: Find them online via sites. Eg: MBA&Company, Hourlynerd.com and others 19.0%
  10. 10. www.goodmanlantern.com 7: How do you learn about the latest trends and stay up to date with your industry*? * Respondents were allowed to provide upto 2 answers, hence the cummiltive % is higher than 100 39.9 40.3 18.8 30.2 0 10 20 30 40 50 Subscribe to online newsletters Attending Seminars and Networking Events Follows blogs and articles online Follow prominent people on social media Attend seminars (offline) Answer Resp. A1: Subscribe to online newsletters 19.6% A2: Attending Seminars and Networking Events 39.9% A3: Follows blogs and articles online 40.3% A4: Follow prominent people on social media 18.8% A5: Attend seminars (offline) 30.2%
  11. 11. www.goodmanlantern.com 8: What is the one reason you would not 're-hire' a management consultant? "Extremely high levels of arrogance" 63% "Create huge, incomprehensible presentations and reports as outputs" 17% "Thinking that they know everything" 20% Answer Resp. A1: "Extremely high levels of arrogance" 63.0% A2: "Create huge, incomprehensible presentations and reports as outputs" 17.0% A3: "Thinking that they know everything" 20.0%
  12. 12. www.goodmanlantern.com 9: What Management Consulting Trends will be followed by your business in the next 5 years* 28.5 41.5 29 31 10 Switch away from one consultancy, and get multiple firms to collaborate on one project Hiring management consultants in-house within project teams, avoid hiring consulting firms Choose consulting firm that shift the payment out over a period of year Majority of the work is off- sourced to a developing economy Ability to pick and choose which consultants works together to deliver a project 0 5 10 15 20 25 30 35 40 45 Answer Resp. A1: Switch away from one consultancy, and get multiple firms to collaborate on one project 28.5% A2: Hiring management consultants in-house within project teams, avoid hiring consulting firms 41.5% A3: Choose consulting firm that shift the payment out over a period of year 29.0% A4: Majority of the work is off- sourced to a developing economy 31.0% A5: Ability to pick and choose which consultants works together to deliver a project 10.0% * Respondents were allowed to provide upto 2 answers, hence the cummiltive % is higher than 100
  13. 13. www.goodmanlantern.com 10: When working on projects would you expect the management consultant to bear the cost of 'external research'? Yes, complete cost No, we will contribute to the purchase No, we will bear the complete cost Answer Resp. A1: Yes, complete cost 24.5% A2: No, we will contribute to the purchase 55.5% A3: No, we will bear the complete cost 20.0%
  14. 14. www.goodmanlantern.com Overview: Goodman Lantern is a fresh approach to Market Research and Develops Engaging Content including white papers, market research, eBooks and more. Using innovative technology and distributed teams, our services reduce costs by 66% and increase speed of project delivery by 5x. Our team is comprised of industry professionals including ex-McKinsey, KPMG and Deloitte consultants; and subject matter experts who bring a wealth of insight and experience to the table. We work with Strategy Consultants: Consultants who work on permanent or interim assignments and help businesses with developing new/realigning existing strategies Business Advisors: Our mentors are senior consultants who work closely with businesses, and have multiple clients at any point of time Transactions/Deal Makers: Consultants working in Private Equity or M&A and other deals, who require data for conducting commercial due diligence Connect with US hello@goodmanlantern.com (UK) +44 3300270912 | (CH) +41 435507040 | (US) +1 (929) 299-3999 | (SG) +65 31591935 | (AU) +61 2 8880 0155 /company/1065895 /goodmanlantern Our Team
  15. 15. www.goodmanlantern.com THANK YOU

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