Tom Rodford’s Post

Consulting firms are at a pivotal moment, navigating a changing landscape where articulating value to clients is key. Observing which companies will excel by delivering tangible value promises to be truly fascinating. #Consulting #ValueCreation #BusinessInsights #Innovation

As organizations cut back on consulting spending, it becomes increasingly important for consulting firms and consultants to demonstrate their value, differentiate their skills, and highlight their service offerings. https://lnkd.in/d5nZZqxh

Disruption in M&A Consulting??? 🚀 Interesting and provocative point of view published by the FT team this week... I agree that disruption is needed in our industry. I've been in M&A consulting for years, and the lack of innovation has always bothered me. This industry needs a shake-up, with evolving market dynamics and technological advancements, it's time we rethink traditional approaches. https://lnkd.in/ec4b-RXg #MandA #Consulting #Innovation

Is the heyday of the Big Four over? The consulting world has long been dominated by a handful of iconic firms that inhabit large offices adorned with their crests in the CBDs of major cities across the world. However, recent articles by The Australian Financial Review's professional services reporter, Maxim Shanahan, suggest a shift is occurring, and their grip on the market may be loosening. Follow the link below for the latest article. It appears that clients and consultants are moving away from the big firms and prefer to work with more boutique specialists. This trend holds true at ORBIZ, where a growing number of clients are engaging us to help them solve operational challenges that more prominent firms have been unable to crack. Shanahan points out the trend of people moving to boutique consultancies is driven by the desire for quicker, more insightful, and more intimate working relationships that smaller firms can offer. Another potential factor driving the shift away from the big firms is a growing lack of trust. Between whistle-blowers highlighting the unscrupulous tactics of some individuals within big firms and these misdemeanours being so well publicised, the reputation of the big firms has taken a hit. With the spotlight on the Big Four for all the wrong reasons recently, it appears many business leaders are seeking more than just a well-known brand; they want a genuine partnership with their consultants. At ORBIZ, we have discovered that clients want a more collaborative approach to solving their operational challenges. One key to our client's success is the operational experience of our consulting team. These talented individuals work alongside our clients and actively help them implement improvement strategies and manage change to increase productivity and commercial performance sustainably. Ernst & Young (EY) and Deloitte reported their Australian earnings in recent weeks. Both reported a consulting revenue downturn in the last financial year. The question is, will we continue to see a shift away from the big firms as leaders seek greater value for money, more transparency, niche expertise, agility and innovation, and most importantly, increased trust in their chosen consulting partner? #OperationalExcellence  #ContinuousImprovement #Productivity https://lnkd.in/gP4TTtCJ

Is “Increase Revenue and Reduce Expenses” good advice? I came across a meme on social media which read; "McKinsey would literally charge a company 4 million dollars to tell them to focus on improving profits by cutting spending and increasing revenues." The joke implies that McKinsey (and by extension, other high-end consulting firms) charge exorbitant fees for advice that is seemingly obvious or simplistic. The humor comes from the contrast between the high price tag ($4 million in this case) and the basic business advice of "improve profits by cutting spending and increasing revenues," which is a fundamental principle that many would consider common sense in business management. This type of criticism or satire often stems from several perceptions about management consulting: 1. Top consulting firms are known to charge significant amounts for their services. 2. While the actual work may be complex, the core recommendations can sometimes be boiled down to seemingly simple concepts. 3. Some critics question whether the advice provided by consultants is worth the high fees, especially if it appears to be stating the obvious. 4. Consultants are sometimes accused of using complex language to make simple concepts seem more sophisticated. However, this meme oversimplifies the work of consultants and consulting firms, in reality, our projects often involve in-depth analysis, industry expertise, and complex problem-solving that goes beyond simple "cutting spending and increasing revenues" recommendations. However, the persistence of such jokes reflects a degree of skepticism and criticism that exists towards the consulting industry. Sadly, this will linger for a while. Still dont forget to cutt spending and increase revenues today!

Send in the Consultants! but make sure they understand your business. This article in The Times suggests businesses are not always convinced of the delivered value of the big Consulting firms but are we sending generalists to do a specialists job? https://lnkd.in/eEMvfHhm

Are you seeking the right consulting partner for your next big challenge? Choosing the best consulting firm can be difficult, but rankings like the one recently published by Consultancy Middle East offer a great starting point. It allows you to explore firms by 38 areas of expertise and 43 industries—a tool I have found to be the most comprehensive for this region. Having worked with many of the top-tier firms myself —whether as an employee, partner, contractor, or client—I have seen firsthand the strengths and capabilities they bring: ♟️ MBB: McKinsey & Company, Boston Consulting Group (BCG) and Bain & Company ♟️ Big Four: PwC, Deloitte, EY (I have yet to work with KPMG) ♟️ Strategy firms: Oliver Wyman, Kearney, Strategy&, Roland Berger, Arthur D. Little, amongst others ♟️ Boutique firms: too many to name, but oftentimes invaluable in their niche areas of expertise and/or in their novel approach... Publishing a ranking is a bold move, yet always contentious. I found myself agreeing with large parts of the results. What about you? Which firms have made the biggest impact on your organization - or career? https://lnkd.in/d8ncwacw

❗ Challenging the Critique of Management Consulting Rana Foroohar’s recent opinion piece in the Financial Times, "The many-sided crisis in consulting," presents a critical, yet popular view of the consulting industry in its current form. While her skepticism is understandable, it's important to acknowledge the valuable role consultants play in today’s business landscape. 💡 Key Counterpoints: 🔹 Value of Measurable Metrics: The principle “if you can measure it, you can manage it” is fundamental in driving business improvements. Measurable metrics provide a concrete basis for decision-making and accountability. 🔹 Strategic Insight: Contrary to the notion of blame-shifting, consultants offer strategic insights and frameworks that internal teams might lack, enabling companies to navigate complex challenges more effectively. 🔹 Technological Integration: Rather than causing decline, AI and technology enhance the consulting industry by automating routine tasks, allowing consultants to focus on high-value, strategic work. 🔹 Adapting to Economic and Political Pressures: The consulting industry’s ability to adapt to changing economic climates and regulatory environments is a testament to its resilience and necessity in the business world. 📈 Industry Strengths: 🔸 Major firms like Bain, McKinsey, Deloitte, and EY are reducing headcount/restructuring, but this is not just due to the market slowdown, it is also to strategically better serve their clients in a rapidly evolving market, and to ensure employees are operating at max capacity. 🔸 Legislative scrutiny and academic critiques, such as those from Mariana Mazzucato, highlight areas for improvement but also demonstrate the industry’s influence and importance. 🔄 The Future of Consulting: 🔺 As technology advances, the role of consultants will evolve, focusing on delivering deeper, more specialised expertise that AI cannot replicate. 🔺 Economic cycles may present challenges, but the fundamental need for expert advice and strategic guidance will continue to drive demand for consulting services. 🕑 Embracing Change: ▪ Consulting firms are well-positioned to lead in innovation and ethical business practices. Their ability to adapt and provide value in complex scenarios underscores their ongoing relevance. ▪ The consulting industry is not in decline but in transformation, poised to deliver greater value through technology and strategic insight. The evolution of consulting is a testament to its enduring importance in helping businesses thrive in an ever-changing world. #ManagementConsulting #BusinessStrategy #AI #Innovation #ConsultingIndustry #FinancialTimes #BusinessGrowth

Consulting, particularly for small businesses, is a pivotal element in the evolution and growth of businesses across various industries. With their expertise and external perspectives, small business consultants have become integral in shaping the strategies and operations of companies worldwide. This profession encompasses multiple roles, from strategic planning and financial advice to operational improvements and technology implementations, tailored to meet small businesses' unique needs and challenges. The Historical Context The contemporary form of consulting originated in the late 19th and early 20th centuries. The inception of management consulting is often credited to the founding of Arthur D. Little in 1886 and McKinsey & Company in 1926. This marked the beginning of professional advisory services to improve business efficiency and profitability. Over the decades, the consulting industry has expanded significantly and diversified into numerous specialties, including IT, human resources, and marketing. The Role of Consultants Consultants for small businesses serve as external advisors who bring a fresh perspective to organizational challenges. Unlike in-house staff, consultants for small businesses are not entangled in the company's internal politics or biases, allowing them to offer objective advice tailored to the unique needs of small enterprises. Their responsibilities significantly differ based on the industry and clients' requirements, ranging from devising strategies for growth and competitiveness to optimizing operations for better efficiency, all with a keen focus on the specific dynamics and challenges small businesses face. Strategic Impact: At the strategic level, consultants analyze market trends, competitor behavior, and internal capabilities to formulate growth strategies, diversification plans, and competitive positioning. Their strategic input is crucial for businesses looking to navigate complex markets and rapidly evolving industries. Operational Excellence: Consultants also play a vital role in enhancing operational efficiencies. By analyzing workflows, supply chains, and production processes, they identify bottlenecks and inefficiencies and propose improvements that streamline operations and reduce costs. Technological Advancements: In technology, consultants help businesses stay ahead by implementing the latest technologies and digital strategies. From software selection to digital transformation projects, they ensure that companies leverage technology effectively to meet their business goals. https://lnkd.in/eUu_rzzh #SmallBusinessGrowth #ConsultingExpertise #StrategicPlanning #OperationalExcellence #TechnologyImplementation #BusinessTransformation