Killing Strategy: The disruption of management consulting
Since former BCG consultant Clayton Christensen first used the term "disruptive innovation" in 1995, nimble startups have challenged incumbents in every field from music to manufacturing. Now, a tectonic disruption is hitting management consulting just as it has hit many other industries.
The industries that have proven the most vulnerable to disruption have been those with:
All or something: A different approach to M&A in the consulting industry
We’ve written elsewhere on this blog about the extent to which clients are disaggregating traditional consulting services (strategy, operational improvement, etc.) and paying more attention to the more basic building block—the capabilities a firm has. But could this approach provide a different way of thinking about investment and inorganic growth in the consulting industry.
Is the coronavirus pandemic and corresponding economic downturn a time to halt acquisitions or pursue them? There are high profile examples of each. Boeing, for example, has abandoned a $4 billion deal to acquire 80% of Embraer’s commercial jet business and a 49% stake in a joint venture producing a new military cargo jet. At the same time, companies such as Google Cloud, Nestle SA, BlackRock, the British clothing company Boohoo, and others have all publicly stated that they are open to acquisitions despite the uncertainty created by coronavirus.
Most companies are still in the early days of assessing the impact from the Covid-19 crisis on their business. But as they begin planning for the future, there may be opportunities to make one or more long-sought acquisitions.
It’s difficult to imagine a world with Coca-Cola but no Pepsi. Or with Roger Federer but no Rafa Nadal. Would Mercedes make the cars it does if there was no such thing as a BMW? Would Barça fans care as much about their team if Real Madrid didn’t exist? In life and in business, we often define ourselves by our competitors—and consulting is no different.
Consulting firms working on new Attack-class submarines
More than 130 companies have been selected to work on Australia’s Attack Class Submarine Programme, including over 25 leading consulting firms. The programme is a joint venture between Australia’s Department of Defence and French Defence Contractor Naval Group.
Worldwide Digital Strategy Consulting Services 2019 Vendor Assessment
Satisfaction with Digital Strategy Consulting Vendors Is Generally High Overall, digital strategy consulting services buyers are satisfied with what they are buying. IDC asked digital strategy consulting services buyers to rate their vendors on a scale of 1–5 across a range of capabilities and strategies (for more details, see the Strategies and Capabilities Criteria section).
Nearly a decade ago, we set out to answer a critical management question: What type of M&A strategy creates the most value for large corporations? We crunched the numbers, and the answer was clear: pursue many small deals that accrue to a meaningful amount of market capitalization over multiple years instead of relying on episodic, “big-bang” transactions.
Australia's M&A Outlook shows reasons for optimism, says Deloitte
Merger & acquisition (M&A) activity in Australia is not only on the rise in tandem with the global economy, but also appears to be undergoing significant changes in composition and priorities. This is according to a new M&A report from global professional services firm Deloitte.
Big Four forced to split UK consulting, auditing arms
The UK competition regulator has recommended the audit and consulting arms of the big four consulting firms Deloitte, EY, KPMG and PwC be split into separate operating units to reduce the influence of the consulting practices upon the smaller auditing divisions.
SAAS and Cloud enabled operational ERP applications report
IDC provides a different perspective on ICT markets, informed by its global research assets and its culture of methodological rigor. As the industry's leading ICT forecast and market share provider, IDC is uniquely positioned to provide a robust and unbiased vendor assessment.
October 2018 - Innovation Consulting Services Provider
The eight providers that matter most and how they stack up
The Forrester Wave
It's imperative for business to innovate and reinvent themselves over the long term. Business and technology leaders are increasingly looking for support to strengthen their own innovation capabilities.
Consulting is more than giving advice - Arthur N. Turner
Each year management consultants in the United States receive more than $2 billion for their services.1 Much of this money pays for impractical data and poorly implemented recommendations.2 To reduce this waste, clients need a better understanding of what consulting assignments can accomplish. They need to ask more from such advisers, who in turn must learn to satisfy expanded expectations.
A look at the trends that are becoming noticeable as business models are restructured, and the principles that could be relevant to decision-making.
The Covid-19 pandemic has challenged businesses in every sector across the globe, forcing many companies to rethink their strategies to survive and/or to emerge stronger. The scale of the crisis has impacted the merger and acquisition (M&A) landscape. Certain categories of M&A transactions have become more relevant, while other categories of transactions no longer make much sense .
Why managing uncertainty is a key to leadership skills: The ability to cope with ambiguity is at a particular premium.
As it brutally disrupts life and business as we know it, COVID-19 has brought into sharp relief a crucial business skill: the ability to navigate uncertainty. That means knowing what you can control and what you cannot, aligning your company and employees with a shared purpose, holding to a clear vision of where you want the company to be, and trusting your team to help your company get there.
Recovery from Covid-19 will require resilience as companies advance, retreat, adapt - and repeat as necessary.
The post–Covid-19 world will accelerate some existing trends and create new ones, and all business models will have to evolve in order to grow and thrive. But there’s no way to accurately predict the coming year, and it’s a dangerous mistake to rely too heavily on forecasts, which have to be complemented with highly adaptive and resilient business models.
Coronavirus: 15 emerging themes for boards and executive teams
As Winston Churchill said, “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.” We are seeing some faint signs of progress in the struggle to contain the pandemic. But the risk of resurgence is real, and if the virus does prove to be seasonal, the effect will probably be muted. It is likely never more important than now for boards of directors and executive management teams to tackle the right questions and jointly guide their organizations toward the next normal.
The state of M&A as Australia emerges from Coronacrisis
The global and Australia’s sharp turn in economic outlook is transforming the backdrop for mergers & acquisitions this year, according to a new study by Deloitte. While it is slowing down deal appetite, unique times also create unique opportunities.
Four major trends impacting professional services firms
The professional services industry is growing, with revenues and headcounts rising across the board. But the industry is increasingly being issued with a stark warning that cracks in its traditional model are starting to show. Four major trends that are driving change in the world of professional services.
Top 100 Accounting and Consulting firms in Australia - according to the AFR
Advisory the path to growth for Accounting Firms
Accounting firms that have expanded beyond traditional auditing and taxation work into higher-margin consulting are the big winners in a year in which the 100 largest outfits grew revenue by a healthy 9 per cent to $12 billion.
How Consulting firms in Australia can help to future-proof their business
It may have enjoyed a long period of growth, but the Australian economy has hit some big bumps in the road recently, and the jury is out as to whether things are set to change for the better. In the meantime, it’s clear that the business community is feeling shaken by the sheer range and potential severity of the negative indicators facing it, and a nervous client base is rarely good news for consultants.
Australia's management consulting industry books record growth
The Australian consulting industry grew by its fastest rate in seven years, with the value of the local advisory market up more than 8% to $5.4 billion (AU$7.7 billion) in 2018, growth at level almost three times that of the national growth rate of 2.8% because organisations and governments are turning to consultants to navigate the era of digital disruption.
A recent survey of directors, CEOs, and senior executives found that digital transformation (DT) risk is their #1 concern in 2019. Yet 70% of all DT initiatives do not reach their goals. Of the $1.3 trillion that was spent on DT last year, it was estimated that $900 billion went to waste. Why do some DT efforts succeed and others fail?
Not all revolutions involve blowing up imperial palaces or slicing the heads off a generation of aristocrats: Some are hidden in plain sight. And I’m starting to wonder if a silent revolution may be taking place in the consulting industry at the moment.
The percentage of revenue that the big four accounting and consulting firms received from their core service of auditing financial statements has fallen to an all time low with Deloitte, EY, KPMG and PwC now all firmly focused on high-growthconsulting services.
Fueled by a combination of mushrooming LegalTech startups, an increasing interest from corporate legal departments, law firms looking into LegalTech strategies and most importantly, the legal media, LegalTech has come in the legal industry's mainstream consciousness.