Management Consulting Insights

Far too many Consulting firms struggle to scale beyond the influence of their Founder. They fail to build recurring revenue channels that extend beyond the Founder’s personal network and reputation. Instead of intentional growth, they operate on ad hoc improvisation—saying yes to everything, reacting to the flow of the day, and never truly designing a scalable model. The result is scattered efforts, unpredictable revenue, and a ceiling that’s impossible to break. Many Founders hesitate to hire senior experts due to their high cost, despite these individuals being best positioned to drive business growth. Even when they do bring them on board, they are often reluctant to grant equity, many Founders believe that they should retain all rewards since they created the original value. This mindset overlooks a crucial reality: securing and retaining senior talent with client relationships for the long term is what truly enhances equity value. The priority should be building a team of senior specialists with strong market reputations from day one. Paying above market rates and offering long-term equity incentives isn’t just an expense—it’s a strategic investment in credibility, accelerated growth, and early wins with high-value clients. Another defining factor is positioning. Many early-stage Consulting firms spread themselves too thin, saying yes to whatever comes their way. Sustainable growth comes from solving a well-defined, high-value problem better than competitors and shaping this into a repeatable process. Firms that dilute their expertise struggle to establish authority. Specialisation builds authority and pricing power. Client acquisition is another common stumbling block. Instead of chasing leads through cold outreach, the most successful consulting firms focus on becoming the reference in their field. Sharing insights, educating the market, and consistently reinforcing expertise creates demand, reducing reliance on unpredictable deal flow. Long-term success comes from consistently evolving expertise, deepening client relationships, and building a market-defining reputation.. Firms that take this approach position themselves as dominant players, creating a business that doesn’t just grow—it thrives on its own momentum.

The End of Consulting as We Know It: A Wake-Up Call I just witnessed something extraordinary: six months of McKinsey-caliber research condensed into one hour using AI. The Brutal Truth About Consulting's Future Traditional management consulting is facing its "Kodak moment." Just as digital photography transformed image capture overnight, AI is revolutionizing knowledge work. Unlike previous disruptions, this one strikes at the heart of our most prestigious knowledge institutions. Consider this: Perplexity AI just analyzed the global energy landscape, identified key suppliers, and forecasted market trends—tasks typically handled by armies of consulting analysts. The kicker? No coffee breaks, no billable hours, no six-figure salaries. This reveals a deeper truth about our industry that few are willing to confront. The Real Crisis Isn't AI—It's Identity The consulting industry has long operated on three core premises: - Information asymmetry creates value - Experience translates to expertise - Time equals quality AI shatters all three assumptions. When a machine can process decades of market data in seconds and generate insights that rival experienced consultants, we must ask: What truly differentiates a $500/hour consultant from an AI that can work for pennies? The Uncomfortable Questions 1. If AI can match human analysis in record time, what justifies the traditional consulting fee structure? 2. When machines can identify patterns across thousands of cases instantly, does human "experience" hold the same value? 3. Most provocatively: Have consulting firms been selling labor-intensive research packaged as "strategy" all along? Beyond Disruption: The Renaissance of Consulting This disruption could elevate consulting to what it always aspired to be—a truly transformative force in business. The Future Belongs to "Augmented Consultants" Who: - Use AI to enhance rather than replace human insight - Focus on implementation and change management - Create novel solutions rather than recycling frameworks - Build genuine relationships that machines cannot replicate A Call to Action The consulting industry stands at a crossroads. We can either: 1. Defend the status quo and become irrelevant 2. Embrace AI and redefine our value 3. Transform into something entirely new The Question That Keeps Me Up at Night In five years, will clients still pay premium fees for human-generated insights when AI can deliver comparable analysis instantly and at scale? Your Turn - How is your organization preparing for this shift? - What aspects of consulting do you believe are truly AI-proof? - When should we start measuring consulting performance against AI benchmarks? This isn't just about consulting—it's about the future of knowledge work itself. Doctors, lawyers, analysts: take note. Let's have this difficult conversation now, before the market forces it upon us. #ConsultingFuture #AI #StrategyConsulting #McKinsey #BCG #Bain #FutureOfWork #Innovation

I have a unique perspective because I’ve worked in both management consulting and ‘hard’ data.  Sometimes the ‘hard’ scientists throw shade at the ‘softer’ consulting roles. But consulting companies are hugely successful for a reason. Data teams can learn a ton by asking what makes consultants effective. My top 4 observations: 1) Consultants are amazing communicators People can literally make an entire career about being a great communicator. They understand how to make ideas understandable, compelling, and repeatable. Data teams would benefit from prioritizing this skill. 2) Consultants are amazing at breaking down problems McKinsey does this thing where they say ‘ok you have a revenue problem - revenue is driven by (1) number of orders sold, and (2) AOV. AOV is driven by…’ And people LOVE it. These types of metrics trees are becoming more popular in data (s/o Abhi Sivasailam). You can also use Zenlytic’s explain functionality to do this automagically, in seconds. A good data team builds their data assets to be composable. Start at a high level and break things down step-by-step. TLDR: Whenever I'm stuck, the first thing I do I ask: “How can I break this problem down?” 3) Consultants are great at throwing away work When Frank Lloyd Wright (the architect) and his team finished a design one time, they were happy with the output with time left over. Frank took the plans off the table, tore them to pieces, and asked the team to do everything a second time. People don’t realize how much this happens behind the scenes in strategy consulting. They explore every idea and possibility. They flesh out some, throw them out when it's not perfect, and start again. The final output of a consultant is only 10% of everything that’s been generated. They set a high bar and only share the best. Data teams should set a high bar too. When something doesn’t feel right, toss it out. Maybe you don’t quite trust the data yourself. Maybe it’s not quite answering the right question. Maybe you can add additional data from somewhere else. Maybe you can benchmark this. Iterate quickly, and cut ruthlessly. 4) Consultants have great attention to detail Before something gets shipped in a Big 3 consultancy, it gets checked and rechecked by at least 4 people. The inputs and their notes are a mess (sound familiar, data engineers?). But they never let the output appear unpolished or rough. There’s a balance between speed and perfection here. But the cost of silly mistakes is high (your team looks unprofessional), and most issues get caught in the first couple passes. At Zenlytic, we make sure that everything we ship externally gets at least 2 pairs of eyes on it (and in some cases - depending on the mission criticality - up to 5). In summary: • Strong communication • Ability to break down problems • ‘Throwing away’ work • Attention to detail All traits data teams would do well to learn from consultants.

Consulting firms don’t need a new strategy. They need to rebuild from first principles. Incremental adjustments aren't enough. AI is reshaping the value proposition of consulting. Client engagements are transforming: → From static deliverables to continuous partnership → From "trust our analysis" to "let's co-create solutions" → From quarterly check-ins to real-time collaboration → From knowledge transfer to capability building Reinvention requires abstraction and clarity. We must first clearly define each foundational element driving how consulting firms create and deliver value: Core Strategic Foundations → Value Definition: How the firm identifies problems, frames solutions, delivers impact, and continuously validates outcomes aligned directly to clients’ strategic goals. → Insight Engine: Frameworks, methodologies, and capabilities that generate distinctive, actionable insights. → Competitive Moat: Unique proprietary data, benchmarks, industry-specific insights, or defensible intellectual property competitors cannot easily replicate. Economic & Commercial Model → Economic Model: Hourly billing, fixed-fee, subscription retainers, outcome-based fees, aligning incentives directly to client value created. → Commercial Engine: Lead generation processes, structured proposal methodologies, pitch execution, pipeline management, and growth-focused client expansion systems. Talent & Governance → Talent Architecture: Hiring, training, retention strategies, compensation banding, fractional expert networks, hybrid teams, and agile/remote workforce structures. → Governance Structure: Partner-led, equity-based, hierarchical or agile structures shaping decision-making, accountability, incentives. Client Relationships & Delivery → Relationship Infrastructure: Account management, executive touchpoints, trust-building activities, structured feedback loops, and relationship governance strategies. → Delivery System: Operational structure, processes, tools, and methodologies used to consistently produce and deliver client outcomes. Operational & Knowledge Systems → Operating System: Project management systems, standardized processes, financial reporting mechanisms, resource allocation models, and delivery quality frameworks. → Knowledge & Technology Core: Internal knowledge bases, AI-driven insights, digital twins, residual data (systems smarter after every client interaction), and proposal libraries. With these foundational elements clearly defined, we can now rethink each with an AI-first mindset. The consulting firm of the future won’t emerge by default. It will be built by design. Consulting leaders please share your insights: → Is there an essential element missing above? → Which elements are most critical to redesign? → Which components would benefit from deeper exploration?

On one of my toughest consulting projects, the breakthrough didn’t come from the most senior person in the room. It came from a junior analyst who spotted a risk no one else had noticed, one that could’ve cost the client dearly. We talk a lot about “high performance” in consulting. Early in my consulting career, I thought building a “high-performance team” meant filling it with the smartest people in the room. Over time I have realized that it’s about something else entirely: "A team that sees more than any single person can." If you remember, The Johari Window, it reminds us we all have blind spots. Leaders have two choices: → Pretend they don’t exist. → Build systems and teams to expose them early. Here’s what I’ve learned works: ↳ Mix cognitive styles and expertise – Pair domain veterans with fresh thinkers. The friction surfaces unseen assumptions. ↳ Make speaking up safe – Psychological safety isn’t “being nice.” It’s making dissent a contribution, not a career risk. ↳ Design for challenge, not comfort – Rotate roles, bring in outsiders, and celebrate the people who ask the awkward questions. Consulting teams move fast, solve tough problems, and deliver under pressure. But real high performance comes when everyone feels responsible for finding the blind spots. #Leadership #Mindset #ConsultingLife ------------------- I write regularly on People | Leadership | Transformation | Sustainability. Follow Surya Sharma.

Now That the Management Consulting Firms Have Raked In Millions And Applied Their Industrial Age Automation Playbook, What Will Their Clients Do Next? Who is going to clean up the mess? The same consultants who charged so much to create it? Over the past year, management consulting firms have rolled out a familiar playbook. They promised to “future-proof” businesses with Generative AI and automation. They analyzed operations into atomic “tasks,” optimized workflows through automation, and proposed staff reductions as a path to “efficiency.” They cited “productivity gains” in PowerPoint decks filled with industry jargon and untested assumptions. But none of it works According to a 2024 Gartner survey, 72% of organizations implemented “off-the-shelf” GenAI solutions without customizing them for business needs, leading to integration challenges and low ROI.¹ Pilot failures: Gartner projects that 80% of GenAI projects will fail to scale by 2025, primarily due to poor change management and unrealistic expectations.¹ Erosion of quality and trust: Forrester reports that 56% of customers notice a decline in service quality from companies aggressively pursuing GenAI cost-cutting measures.⁵ Hidden costs: IBM’s 2025 survey of CFOs found that over 50% of AI investments delivered lower-than-expected ROI due to retraining, error corrections, and compliance fines.⁶ Talent drain: PwC found that 42% of employees at companies with aggressive automation initiatives feel disengaged, with a 25% increase in talent attrition.⁷ In all honesty, I am not sure how any business can implement new technologies by working with consultants who have been using the same playbook Henry Ford would recognize? ******************************************************************************** The trick with technology is to avoid spreading darkness at the speed of light Disclosure: I’m the Founder & CEO of Curiouser.AI, a Generative AI platform and strategic advisory focused on elevating organizations and augmenting human intelligence through strategic coaching and values-based leadership. I also teach Marketing and AI Ethics at UC Berkeley. If you're a CEO or board member committed to building a stronger, values-driven organization in the age of AI, reach out, we’d welcome the conversation. Visit curiouser.ai, DM me, or connect on Hubble: https://lnkd.in/gphSPv_e Footnotes Gartner, “AI Transformation in Enterprises: Reality Check 2024–2025,” 2024. Boston Consulting Group, “The Risks of GenAI Implementation: Oversight and Governance,” 2025. McKinsey & Company, “Generative AI and the Future of Work: A Reality Check,” 2025. Deloitte Insights, “Digital Transformation or Workforce Reduction? Managing Culture in AI Transitions,” 2024. Forrester, “The Customer Cost of GenAI-Driven Efficiency Plays,” 2025. IBM Institute for Business Value, “AI ROI: Hidden Costs and Compliance Challenges,” 2025. PwC, “Employee Sentiment in the Era of AI and Automation,” 2025.

The shape of work to come, part 1: The pyramids crumble I think we're witnessing the collapse of a 100-year-old knowledge work model. My reflections come from a management consulting perspective, addressing the models and structures in our industry. My pivotal moment came in early 2022 when it dawned on me that generative AI and LLMs promised potent disruption of knowledge work. I believe we've only seen the early signs yet. The consulting pyramid we still use as the structural foundation in our operating models isn't just an org chart. It's a knowledge distillation machine that turns raw intelligence into business wisdom through structured suffering. Let's examine the pyramid. Layer 1: Information processing (juniors) - Converts chaos into structure - 80-hour weeks building models = pattern recognition - Death by PowerPoint = visual communication mastery - Excel modeling = systems thinking Layer 2: Synthesis (seniors/managers) - Converts patterns into insights - Client management = emotional intelligence - Team leadership = human dynamics - Project ownership = accountability Layer 3: Judgment (VPs/directors/partners) - Converts insights into decisions - Relationship capital = trust building - Industry expertise = contextual wisdom - Risk assessment = seasoned intuition This model served us well until suddenly it didn't. The AI disruption isn't about percentage efficiency gains here and there. This is an existential threat to consulting as we know it. This is the white-collar bloodbath. The three existential challenges, as I see them: 1. The experience paradox AI hands juniors polished answers they never had to wrestle for. They gain output but not the scar tissue that tempers judgment, leaving a generation of consultants armed with confidence unbacked by experience. 2. The legitimacy crisis If a $20 chatbot drafts a market-entry deck in seconds, the old "nobody gets fired for hiring McKinsey" premium evaporates. When expertise is commoditized, the firm's badge stops being career insurance. 3. The cultural extinction Kill the midnight slide-grind and you also kill the tribe: bullpen banter, mentorship moments, shared war stories. Without that crucible, a consultancy becomes just another talent platform with a logo. So what do we do when the walls start crumbling? More on that in Part 2: A new hope. Karl Thomas Reinertsen Ivar Aune Alex Marandon Siren Sundby Etienne Grass Moïse Tignon Karl Bjurstrom Volker Darius Bora Ger Caroline Segerstéen Runervik Théophile S. Nikola Poli Christopher Ebeling

After spending 8 years in consulting and growing from Associate Consultant to Senior Manager, I’ve seen many ups and downs. One thing that stayed constant was learning on the job. I’m starting a short series to share 32 simple but powerful lessons that helped me succeed in consulting. These are grouped by career stage: 1. Associate Consultant working with Manager 2. Consultant/Senior Consultant working with Senior Manager or Principal 3. Manager working with Partner 4. Senior Manager working with Senior Partner Stage 1: Associate Consultant working with Manager Lesson 1: Always be client-ready No matter how early you are in your career, your work should look good enough to be sent to the client. Even if it’s just a draft, check your logic, make sure the numbers are right, and the story makes sense. Why it matters: This simple habit builds trust with your manager. It shows that you take ownership, that you care about quality, and that you can be trusted with bigger tasks. In my case, this helped me get more responsibility and visibility early in my career. The long hours in the beginning will pay off—because your growth starts with how you show up every single day. More lessons coming soon! #Consulting #CareerTips #GrowthMindset #ConsultingLessons #Leadership #ChicagoBooth #Deloitte #Gartner #EY #McKinsey #Bain #BCG #IIM #ManagementConsulting

This is not a post about AI disrupting management consulting. This is not a post about AI at all. What a relief, right?! This is a post about the seismic talent shift that is taking place right now in management consulting AS A RESULT of the aforementioned AI topic (which we again will not discuss). The talent oceans at McKinsey, BCG, Accenture and others are undergoing staggering disruption. Just as the slowdown in the Gulf Stream current has altered weather across the Atlantic, so too has the "great automation of insight" altered management consulting. In particular, the predictable currents of young talent from Ivy programs and business schools into consulting houses has largely stalled out. The headlines are a near weekly occurrence..."McKinsey cuts 10% of workforce", "industry hiring flat in 2025". The impact is not limited to fresh talent, experienced leaders are stepping out of the big houses in droves. Where are they going? They're going to a growing crop of transformation advisory firms, organizations offering management consulting capability with a personal touch (and at lower bill rates). Part technologist, part organizational therapist, these boutique firms are flooding into a market grappling to define the future of consulting in general. And buyers are trying to make sense of it all... who do I hire? what can they do? what do I really need? My advice to firms in this space: -There's money in the "long tail". Find a niche and auger in. Without the breadth of traditional consulting, it is critical to narrow capabilities, and more importantly, prospects. Founders can't cover enough ground to do the personal selling required to build consulting trust across a broad service portfolio. -Refine, refine, refine. As a buyer, I should know what you do in a statement marginally longer than a highway billboard. Buyers inherently "bucket" vendors into use cases so they know who to call when a circumstance arises. Attempts to dispute/ignore this bucketization come at your own peril. -Cultivate your network. Tend to the garden daily. Management consulting "tip of the spear" projects don't come around every day. The trick is to be top of mind when the match is struck at a target firm. -Embrace the human side of the business. Identify the salient moments, the fulcrum spots where decisions are made and determine how your service succeeds where neither internal resources nor AI can. A good transformation advisor makes projects successful despite the conditions on the ground. And its worth a premium in moments of extraordinary change. I wish incredible success to all of my friends and colleagues who have embarked on this post-management consulting revolution. You are brave and capable of great things. Now chart a path that others cannot easily follow.

Many companies delay seeking help not because they don’t need it, but because they don’t see that they need it. The reality is that ego can be a huge barrier, especially in leadership. When executives or founders feel overly protective of their vision or believe they have all the answers, they may block the insights that could drive growth or resolve critical issues. Ownership often intensifies this problem, as leaders become too close to the work to spot the gaps or obstacles holding their teams back. Here are a few signs that it might be time to consider outside help: 1. Stagnant Growth: If revenue or customer acquisition has plateaued, it may be time to re-evaluate strategies with fresh insight. 2. High Employee Turnover: Persistent turnover can signal deeper issues in culture or management that need an objective look. 3. Low Innovation: If innovation has slowed, or your competitors are outpacing you, an external perspective may help reinvigorate your team's creativity. 4. Decision-Making Bottlenecks: If key decisions are repeatedly delayed or micromanaged, this may reflect a lack of trust or vision clarity. 5. Market Blind Spots: If your company fails to adapt to market trends, it’s often due to a lack of external perspective and fresh industry insights. Don’t let ego or ownership block your success. Seeking outside help is a sign of strength, not weakness! Embracing an external perspective can be transformative for your company's future. Integrated Experiences Consulting #leadership #consulting #bottleneck #business #ego #GreatTodayBetterTomorrow