In consulting circles everyone knows the big players but no one knows the medium size and independents who make up the major part if not the larger earners in the consultancy market.
Most of the big players started out as either smaller management consultancies or as accountancy or law practices before turning to management consultancy work. This pedigree can be seen in the various operating practices of the big players in the market.
However, is bigger better?
The major consultancies bring years of experience in their particular fields; mainly through the accouncy discipline of cost and fiscal practice adapted into templates for organisational change and organisational structure. These templates are usually derived form academic theorem or the consultancies own experiences over many years of work with the larger multi-nationals or corporations where downsizing and restructuring is practices with alarming regularity to re-align the organisation to the latest trend or boardroom edict.
However, very few of the larger consultancies spend any time actually studying or analysing the organisational ethos, structure or working practices of the organisations it provides its services to.
The reasons I believe; are as follows
- Time - Most consultancy projects are derived from requests to quote for projects or rapid start up assignments where the clients require a quick ramp-up to solve a problem. Most clients do not plan way in advance to hire a consultancy, but belatedly recognise that a fix to a specific problem is required. Therefore the pressure is applied to respond rapidly; hence short term notification and the need for a quick fix.
- Experience - The major consultancies do not specialise in specific areas; they offer a general portfolio of services, of which some of the services will include the relevant experience needed by the client. Most consultancies will not turn down a potential consultancy project (nor will anyone else), just because they do not possess experience in that particular field.
- Skills - Larger consultancies recruit their consultants and analists straight from universities or business schools. These bright and enthusiastic individuals and high charged with enthusiasm but not experience. All academia can provide, even with work-based practical assignments is a basic understanding of life, work and business practices. These junior consultants can bring a new and fresh outlook to your business, but you wouldn't let a seven year old drive your car, but you are willing to place the future of your business in the hands of a twenty five year old graduate with no business experience.
- Template Solutions - The use of standard business and organisational models and template solutions to change and organisational restructing provides a consistency of approach by the bigger consultancies. This is not for your benefit as one model or size does not fit all. It suits some bigger consultancies as it is easier to train their junior consultants and provides for a method of providing a rapid response for quotation.
- Sector Experience - Many consultancies do not possess the relevant sector experience necessary to accuratly address sector operational and market segment issues. Without an understanding or accurate analysis of the modus-operandi of the business the result will be poor implementation and disappointing or no long term benefit.
What do Medium size and independent consultancies bring to the party?
I believe that the three main attributes are skill, experience and accountability.
- Skill - Most medium size consultancies operate with approximately twenty to ninety consultants and analysts with many independents operating with between one and twenty consultants. Most meduim size and independent consultancies focus on specific services, sectors, market segments and disciplines or industries. A large percentage of consultants working for medium and independent consultancies are mature individuals with a wide range of skills and in-depth knowledge of the issues associated with these areas.
- Experience - In my experience, the mature consultant possesses the knowledge of both the sector, organisational structure issues and practical workplace practices and nuances that impact the day to day operation of an organisation. This brings real value to the project and ensures that the outcomes are tailored to the actual long-term benefit of the organisation.
- Accountability - The reputation of medium and independent consultancies is wholly dependent upon the generation of business with clients who are more sceptical about the impact of a consultancy study or project within their organisation. Bigger, major league consultancies are allied to larger longer-term strategic and frame agreements with corporate bodies or multi-nationals with multiple consultancies project ongoing at any one time. Medium and independent consultancies live on their reputations as a business and as individuals.
You're only as good as your last assignment is the adage we live by, and client satisfaction is all.
posted by Veros Consultants @ 7:40 AM
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