As Iām reading, Iām thinking āoh yes - youāre right!ā This is exactly what we expect if consultants now! Itās not just about articulating the problem and identifying recommendations, itās also about implementing the fix! Iāve worked with two different consultants in the last year and both of them have produced presentation slides, reports etc. it feels less like an inspectoral relationship and more like a fixed term employee contractā¦..
IMHO, one angle of disruption (happening already) is thru networks and consortia of independents or small bit players, buddying up around common client problems etc.
These individuals and micro-consultancies can be at a time in their career or family that suits working independently.
The other thing to keep asking: is what do people need. As Gen-X approaches retirement, could there be generational shifts in what consulting buyers might look like and need?
I agree, and something that I think will converge with the roboconsulting trend I expect to explode in the next decade.
I don't think the "big elephants" will dissolve, but perhaps opportunity for the micro-consultancies you mention to build something valuable (and then get acquired).
Your article resonated so much with me that I was compelled to download the substack app and create an account just to comment.
Iāve been consulting for ~15 years. Starting as a software developer, I began consulting on my own and now have a small team. Traditional consulting always bothered me because it appeared to never include āthe fixā. Instead, it seemed designed to ākeep rhetoric patient sickā and keep the billing rolling.
Iāve been biased towards āget in, solve the problem, and get outā.
My mindset is shifting now. Iāve come to understand that Iāve never been able to write software _without_ coming to understand the business, the ELT desires for the future, and the day to day pain of front line workers. Only then can I recommend and build right size solutions for the company.
Iāve always done the above āfor freeā as an accidental offshoot of building software because it was natural to me.
But something else you wrote makes sense as well: companies can only build so many capabilities internally. Further, software is massively misunderstood to be āan assetā wherein reality, code is a liability. Software systems need constant care and feeding even if you donāt want any new capabilities.
Combining the ability to understand the business, apply well fitting solutions, and making running the software ādone for youā is the direction Iām heading.
Does that make sense given where you see the industry going?
And yes, you are right: that's the direction. One thing I'd recommend is to purposely avoid to create client dependency on your team. You are there to do a job, but not "their" job.
You should solve a problem for them as much as you should educate them so that they are able to run independently.
If this sounds like you're leaving money on the table, don't worry.
They'll never be able to pull that off, but you left them with all the ammunitions.
I've spent a lot of time thinking about this in my consultancy work. Should we do more on the implementation side as well? Am I neglecting a potentially huge market by focusing only on the consultancy side of things - and if we do go down that road what is the best way to do it?
I suspect at some point we might need to head in that direction if we want to grow beyond where we're at today.
In answering your 2 questions - and with my bias front-and-centre - Solopreneurship - Business of One - Consultancies are a great pathway.
Very little overhead, full control, ability to say 'no thanks' or Fire clients. I choose who I work with now - very carefully. Only so much time on the planet, why squander it working for shitty clients and firms.
Plus, a commitment to building businesses around desired lifestyle (not the opposite) - and, thus, the more recent writing about Soul-preneurship.
Great article as usual. Iāve been pondering the same thing.
One thought is that consultancies are used to design āgreat plans and strategies, as long as theyāre implementedā because their current staff/partner structure requires extremely high prices per hour. Conservatively, implementation lasts 3-5x longer than design. So a full project might cost 4-6x under this structure, which would be prohibitive except in very specific situations (Iāve been in some).
Creating alternative structures for design and implementation is no help, as the Big 4 know and McKinsey is discovering. Different people, even if in the same company, no skin in the game either.
So far, one idea I had is to focus on the immediate impacts of good plans and strategies rather than the long-term ripple effects.
For example, good strategies aim to create long-term sustainable competitive advantage. But they also need to immediately inspire focused and aligned decisions. If this doesnāt happen, the long-term will never happen either.
Just an idea. Lots more where this came from! š
Agree on the analysis, I've had pretty much the same experience.
When you say "good strategies aim to create long-term sustainable competitive advantage. But they also need to immediately inspire focused and aligned decisions. If this doesnāt happen, the long-term will never happen either" are you referring to some sort of benefits realization metric in the short term?
How to evaluate value realized?
I've seen a few frameworks over the years, but I feel they end up in the same bucket... More numbers and PowerPoints, but what is the client left with ultimately?
As Iām reading, Iām thinking āoh yes - youāre right!ā This is exactly what we expect if consultants now! Itās not just about articulating the problem and identifying recommendations, itās also about implementing the fix! Iāve worked with two different consultants in the last year and both of them have produced presentation slides, reports etc. it feels less like an inspectoral relationship and more like a fixed term employee contractā¦..
Next time, I'd suggest you try to vet for strategy+execution and make it clear that you expect outcomes, not documents.
Maybe thay could work? I agree this trend has to reverse.
I should have made clear - the documents were the outcomes I wanted!
A good read.
IMHO, one angle of disruption (happening already) is thru networks and consortia of independents or small bit players, buddying up around common client problems etc.
These individuals and micro-consultancies can be at a time in their career or family that suits working independently.
The other thing to keep asking: is what do people need. As Gen-X approaches retirement, could there be generational shifts in what consulting buyers might look like and need?
Much to ponder.
Iāve done an informal version of this. I have 3 friends that own software consulting companies and we regularly share leads, tips, etc.
Brilliant observation.
I agree, and something that I think will converge with the roboconsulting trend I expect to explode in the next decade.
I don't think the "big elephants" will dissolve, but perhaps opportunity for the micro-consultancies you mention to build something valuable (and then get acquired).
Rather like the Big Companies they consult to...when they acquire start-ups. It can work. But takes each to respect and learn from the other. ;)
Your article resonated so much with me that I was compelled to download the substack app and create an account just to comment.
Iāve been consulting for ~15 years. Starting as a software developer, I began consulting on my own and now have a small team. Traditional consulting always bothered me because it appeared to never include āthe fixā. Instead, it seemed designed to ākeep rhetoric patient sickā and keep the billing rolling.
Iāve been biased towards āget in, solve the problem, and get outā.
My mindset is shifting now. Iāve come to understand that Iāve never been able to write software _without_ coming to understand the business, the ELT desires for the future, and the day to day pain of front line workers. Only then can I recommend and build right size solutions for the company.
Iāve always done the above āfor freeā as an accidental offshoot of building software because it was natural to me.
But something else you wrote makes sense as well: companies can only build so many capabilities internally. Further, software is massively misunderstood to be āan assetā wherein reality, code is a liability. Software systems need constant care and feeding even if you donāt want any new capabilities.
Combining the ability to understand the business, apply well fitting solutions, and making running the software ādone for youā is the direction Iām heading.
Does that make sense given where you see the industry going?
Thanks for the nice words, first of all!
And yes, you are right: that's the direction. One thing I'd recommend is to purposely avoid to create client dependency on your team. You are there to do a job, but not "their" job.
You should solve a problem for them as much as you should educate them so that they are able to run independently.
If this sounds like you're leaving money on the table, don't worry.
They'll never be able to pull that off, but you left them with all the ammunitions.
This means they'll call you back.
I've spent a lot of time thinking about this in my consultancy work. Should we do more on the implementation side as well? Am I neglecting a potentially huge market by focusing only on the consultancy side of things - and if we do go down that road what is the best way to do it?
I suspect at some point we might need to head in that direction if we want to grow beyond where we're at today.
The implementation side is certainly harder, but that's where the money and expansion opportunities lie imho.
I'd be happy to brainstorm with you if you ever wanted to, as I have significant experience in that space.
Sure thing - happy to jam - want to drop me a line with any times that work for you?
Nice one. š
In answering your 2 questions - and with my bias front-and-centre - Solopreneurship - Business of One - Consultancies are a great pathway.
Very little overhead, full control, ability to say 'no thanks' or Fire clients. I choose who I work with now - very carefully. Only so much time on the planet, why squander it working for shitty clients and firms.
Plus, a commitment to building businesses around desired lifestyle (not the opposite) - and, thus, the more recent writing about Soul-preneurship.
Soul-preneurship makes much more sense to me than solopreneurship I have to be honest.
Soul-preneurship is about values. And that's what matters.
Great article as usual. Iāve been pondering the same thing.
One thought is that consultancies are used to design āgreat plans and strategies, as long as theyāre implementedā because their current staff/partner structure requires extremely high prices per hour. Conservatively, implementation lasts 3-5x longer than design. So a full project might cost 4-6x under this structure, which would be prohibitive except in very specific situations (Iāve been in some).
Creating alternative structures for design and implementation is no help, as the Big 4 know and McKinsey is discovering. Different people, even if in the same company, no skin in the game either.
So far, one idea I had is to focus on the immediate impacts of good plans and strategies rather than the long-term ripple effects.
For example, good strategies aim to create long-term sustainable competitive advantage. But they also need to immediately inspire focused and aligned decisions. If this doesnāt happen, the long-term will never happen either.
Just an idea. Lots more where this came from! š
Agree on the analysis, I've had pretty much the same experience.
When you say "good strategies aim to create long-term sustainable competitive advantage. But they also need to immediately inspire focused and aligned decisions. If this doesnāt happen, the long-term will never happen either" are you referring to some sort of benefits realization metric in the short term?
How to evaluate value realized?
I've seen a few frameworks over the years, but I feel they end up in the same bucket... More numbers and PowerPoints, but what is the client left with ultimately?
My reply kept growing, and growing, and growing... So I decided to make an article out of it:
https://makestrategy.substack.com/p/the-future-of-strategy-consulting
Cheers!
I enjoyed this post!! Thanks for your thoughts!