Freidank business reporting and consulting

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Freidank business reporting and consulting

Management consulting is next. And it's about to be disrupted. Whether the focus is strategyoperationstax, finance, HRor IT, business consultants are a staple of corporate life. Today, overconsulting firms provide services across virtually all aspects of business globally. From defining strategic direction to simply serving as an additional pair of hands for outsourced work, consultants have become inextricably linked to the success of most large organizations.

Festering underneath myriad consulting offerings, methodologies, tools, and firms lie some vulnerabilities that will eventually unravel the consulting business model -- the same kind of dramatic disruption that other industries like photography, publishing, health care, and many others have experienced.

An industry becomes susceptible to disruption when it becomes entrenched in its longstanding solutions and financial structure.

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Disruptive innovations provide simpler or more elegant solutions to existing problems, enabled by new technology and often at a lower cost. Think portable calculators versus computers, Amazon versus bookstores, Netflix versus Blockbuster, or digital cameras versus film. Management consulting is not immune to the dynamics of disruption.

The industry is characterized by growth in line with the overall economy, an increasing number of industry players, and technological change based on improving efficiency rather than developing entirely new services. Five fatal flaws of the consulting industry Here are five inherent qualities of the management consulting industry that make it susceptible to technology-driven disruption: Most consulting services rely on humans as the fundamental source of research, analysis, recommendations, process definition, process management, and facilitation.

Billable time-based business model. The fee structure underlying most consulting services is tied to billable hours or days, which encourages lengthy, overstaffed engagements to maximize revenue.

freidank business reporting and consulting

The billable rates of junior consultants in most large firms far exceed what they are paid by the firms in which they work. Value pricing models also dramatically increase the profitability of many projects and firms. With the increasing pace of change, the moment a research report, competitive analysis, or strategic plan is delivered to a client, its currency and relevance rapidly diminishes as new trends, issues, and unforeseen disrupters arise.

The models, templates, and tools of the consulting trade have historically been kept "secret" by consultants and locked away as intellectual capital. The "democratization" of just about everything, including management information and knowledge, will continue so that anyone can access and apply "best practices" on their own.

Paradoxically, even with these fundamental flaws -- all of which are contrary to the best interests of clients -- the industry continues to grow. Last year, for example, the management consulting industry saw a 4.

So why be concerned?20/10 Consulting Llc 21st Mortgage Corporation / Madison Equities Corp. Hayden Partnership Advance Business Systems Advance Pcs Advanced Cardiovascular Systems, Inc.

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