Recent events have drastically changed trends in the management consulting industry. According to field expert Michael Canzian, the industry is currently shrinking due to economic conditions. This has led to many changes as professionals try to reshape their businesses and stay afloat during challenging times. Here are the largest trends that have recently developed.
Michael Canzian and other experts believe that the economic conditions have not changed the fact that businesses still rely on management consultants. However, many businesses looking for a private consultant are making value-based decisions. These firms are expecting to see quantifiable results from their consultants that justify the expense. This is pushing consultants to use cost-effective solutions rather than expensive alternatives. Additionally, they need to make sure their results are measurable as far as their clients can see and align with the company’s goals.
Many businesses are continuing to pay for consulting services to handle different tasks. However, these clients are now looking to enter into partnerships rather than hiring consultants. This trend has forced consulting firms to alter their business models, so they now offer various levels of subscription services rather than billing hours. However, consulting firms are embracing this change and looking for more strategic partnerships. This allows them to create more flexible or customized subscriptions for their clients and still profit.
Remote consulting is nothing new for this industry. However, now that their partners and clients are remote, the industry will need to implement various digital platforms for optimized communication. Many of these firms are tailoring their platforms so that their clients can still get the same experience as hiring an in-person consultant. Additionally, this is encouraging more consulting firms to recruit new employees through virtual means.
Traditionally, firms hired general consultants and had these individuals work on a variety of projects. Today, clients require highly specialized professionals to tailor their work and create a customized solution. Therefore, many consultants start to take on a specialty earlier on in their career or even before they finish their education. These firms are even emphasizing hiring candidates with experience or designated specialties. In other words, they are hiring employees with diverse experiences rather than someone with general training.
This allows them to market their individuals as sector experts. Some industries where hiring a specialized management consultant has become the norm include manufacturing, technology, and retail. Additionally, the digital and data analytics sector tends to be the most profitable for consulting firms, so these areas will likely see a growth in specialized experts.
The last major change in the industry, incorporating new technology, has been slowly happening over the years. As a result, more and more consulting firms are investing in digital advancements to grow their profits. These firms start by performing a self-evaluation of how they could improve digitally and incorporate the technology they think can enhance their operation.
Management consultants are now focused solely on survival. This has led to many changes that are disrupting the industry. The result is that these consultants are providing quantifiable improvements with new business strategies.