The Future of Management Consulting |
Posted: December 11, 2021 |
One of the exciting lines of business across the world is 'management consulting.' Many CEOs see it as a necessity, while some despise it due to its lack of perceived impact. Understanding the subtlety of this $200 billion-plus global consulting industry USA is essential. So let's see where it is headed over the next decade.
It is necessary to understand the history of management consulting over the last few decades to touch upon the industry's future path. And challenges it is facing to foresee where it is heading in its long-term prospects. The Recent Past Management consulting has broadly reflected the overall state of economies the world over. With the advent of globalization, many MNCs wondered which emerging sectors to enter. A lot of consulting work during the 1990s was therefore focused around the market entry assessment. However, during the 2000s, most corporates knew which sectors to enter. Nevertheless, they were unsure how to scale up their presence. A lot of consulting work eventually shifted towards implementation. Digital Transformation Concurrently, the buzz has been around digital transformation. Consulting work in due course revolved around omnichannel eCommerce, service transformation and business process re-engineering. Economies now are broadly destined to reflect an accelerated digital transformation, increased M&A and a rapid scale-up in the B2C consumption space. The nature of management consulting is currently likely to change over time. Time Ahead Consistently growing at a CAGR of 15 per cent over the past many years, the management consulting industry saw double-digit growth even during the pandemic. Over the next few years, economies worldwide are likely to enter a phase of rapid growth. The consulting industry is expected to grow at an accelerated pace. It will be expected to provide design thinking, cyber security, digital transformation, user-interface design and M&A deal-making. Consulting companies would be expected by clients to own a bit of the transformation and become private equity-oriented partners. Geopolitical complexities will compel supply chain re-alignment for risk hedging as a critical piece of work. Work Challenges It would be normal to spend 4/5 days a week at the client site. Clients love to see the faces of consultants as consulting companies are notorious for poor work-life balance. Interchange towards work-life balance, holistic wellness, and pursuing purpose at work will be a big challenge for consulting establishments. With the rise in product management, technology and entrepreneurial roles, consulting agencies will have to develop a value proposition representing the changing times. Decision-makers in consulting firms are older generations and may find it challenging to devise value propositions that appeal to millennials. Consulting firms' soft and hard compliance with regulations will be another big challenge. More robust internal governance mechanisms will be required across the board. Compliance will be a tall order since consulting firms worldwide are designed to chase profits. Prospects Overall Prospects of the management consulting industry look incredibly bright in the coming times. Along with the nature of work, their client proposition will change significantly. Provided they carefully consider the impact of their work and carefully manage their talent pool. Aliveadvisor has been actively involved in global consulting services for some years. Author Jony Marcel has been serving American clients with highly functional and flexible consult. Jony Marcel loves to pen down business advisory services USA experiences and thoughts related to the industry in his spare time.
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