My recent comments challenging a scathing critique of the consulting industry have in turn generated a flood of feedback from our loyal readers. Many of you felt the original article was outrageously one-sided, whilst a few of you actually admitted that consultants’ clients can sometimes be taken for a ride.
The whole debate reminded me of a pertinent statement John Niland made at a recent Top-Consultant seminar. He said consultants should, at all costs, avoid situations where the client ends up receiving a bill based on a calculation involving day rates. His argument was essentially that the very concept of day rates puts the interests of clients and the short-term interests of the consultancy fundamentally in conflict. (As an aside, John will be speaking in London on 17th June – details here for those of you interested)
So if John’s theory is right, are purchasing departments shooting their organisations in the foot by forcing consultancies down a day-rates approach to pricing? Many consultancies would say they are…
Fixed Fee vs Day Rate billing
Given a fixed fee project a consultancy can deliver on the assignment as it sees fit and earn its profit by working smart and by creating a winning solution that turns the client into a lifetime customer. The consultancy is incentivised to achieve results quickly and cost-effectively, because it’s their margins that are eroded if they don’t.
What happens all too often in practice is that consultancies are engaged to provide a consulting team on a day-rate basis where there's additional profit to be made each day that the team remains on site. This creates an incentive for scope creep, where the boundaries of the agreed project are pushed further and further and cost overruns are passed onto the client.
In this kind of scenario, the essential challenge of completing an assignment on time and within budget is sidelined. The client 's interests are no longer aligned with those of the consultancy, pure and simple.
However where does this problem originate and are consultancies therefore really to blame? In my own experience, it is clients’ insistence on breaking proposals down into the component team members, their day rates and volume discounts that poisons the consultant-client relationship. Clients are scared of committing to a fixed budget - and therefore paying “excessively” for actual services delivered. The temptation to challenge the fee by breaking it down into its parts is just too much.
Oh for a world where consultants were paid an agreed amount for an agreed project deliverable and then left to run the project like the mini-business-venture that it is. Unfortunately the proliferation of purchasing departments and PSLs is driving the consulting industry further and further down the day-rates path – and away from this ideal. So the consultant-client relationship is increasingly poisoned and consultants take the rap, when actually we're on the receiving end of pushy purchasing departments. I kind of feel this is like the pot calling the kettle black!! Anyone out there agree with this sentiment or care to add additional thoughts?
Tony
Kamis, 08 Agustus 2013
Consulting vs Outsourcing
Have just been ploughing my way through the latest report from the Management Consultancies Association and it's a pretty remarkable read. Take a look at this chart:
No matter how much has been written about outsourcing in the last years, it's hard to take on board just how much this business line has transformed the face of consulting and the companies that make up the consulting world. These latest figures show that outsourcing has now outgrown all your traditional consulting business lines taken in combination! (as a former strategy consultant, I intentionally sideline IT consulting from this comparison, call it a force of habit)
The MCA have been kind enough to allow us to reproduce some of the key charts and data and you'll find the full write-up of the report findings if you click here. I think you'll find some of the patterns and trends quite eye-opening! Tony
No matter how much has been written about outsourcing in the last years, it's hard to take on board just how much this business line has transformed the face of consulting and the companies that make up the consulting world. These latest figures show that outsourcing has now outgrown all your traditional consulting business lines taken in combination! (as a former strategy consultant, I intentionally sideline IT consulting from this comparison, call it a force of habit)
The MCA have been kind enough to allow us to reproduce some of the key charts and data and you'll find the full write-up of the report findings if you click here. I think you'll find some of the patterns and trends quite eye-opening! Tony
The Guardian takes a dislike to consultants
A number of articles in the Guardian these last weeks leave me pretty convinced. The Guardian has taken a dislike to consultants.
First there were a series of articles in which deep concern was expressed at the increasing role of consultants in the thinking of Number 10 and - horror of horrors - the appointment of some ex-McKinsey advisers into key government roles. The appointees are likely to drive through radical changes in the management and measurement of government departments, to push for efficiency gains and the adoption of online approaches to streamline departments.
Most organisations I know would love to hire as employees a team of ex-McKinsey consultants. Bring all that expertise in house, have the ability to push through more initiatives internally without the need for calling in consultants - and be in a position of strength when negotiating with consultancies for those engagements that are still deemed necessary. Most FTSE firms are trying to hire lots of ex-consultants, yet because this is happening in the public sector it is labelled as scandalous. Ridiculous.
This was followed up in the last days by another article in which the Observer / Guardian Unlimited tore shreds out of consultants for their unethical practices and client scams. This was all based on the rantings to be found within David Craig's recent book about how consultants rip off their clients. I've already submitted a letter of complaint to the Editor, copied below. If you'd like to do the same simply email: politics.editor@guardianunlimited.co.uk
I write in response to Nick Cohen's article "Natural born billers" in which the majority of management consultants are made out to be charlatans and common thieves. I am concerned by the ease with which the author David Craig has been able to persuade mainstream media to tout his views of the consulting industry. We are, after all, talking about a chap who has a book to sell here.
I am a former management consultant myself and now work in the recruitment sector. Both sectors have a few rotten eggs - as does any sector where there's significant money to be made or lost - but the vast majority of professionals are going about their business in an honest and upright manner and delivering huge value to clients both in the public and private sectors.
If we look at the Enron scandal and how the reputations of Andersen employees were tarnished worldwide, we see how easily the media can fan the flames of isolated incidents and turn them into widely held beliefs and prejudices. In the case of Enron it was accountants worldwide that were dragged through the wringer and whose integrity was questioned; by promoting this book's premise you are taking consulting in the same direction on the basis of what can only be described as very limited testimony.As you are undoubtedly aware, repeat business in the consulting industry is absolutely key and I would put it to you that any professional that succeeds in doing business with FTSE clients year after year is clearly doing a great many things right. Most consulting firms generate the majority of their revenues from repeat clients - which must result either from the success of the engagements or be down to gross negligence on the part of most FTSE Directors. Are you seriously suggesting the majority of FTSE Directors simply have the wool pulled over their eyes and pay up year after year? I thought not.
Finding examples of bad practice is easy in any industry, but portraying these practices as industry norms is doing both your readers and the country a gross disservice. I trust you will strike a more balanced view in your future commentaries
Yours faithfully
Tony Restell
Company Director
___________________________________________www.Top-Consultant.com
Switchboard: +44 (0)207 667 6880
First there were a series of articles in which deep concern was expressed at the increasing role of consultants in the thinking of Number 10 and - horror of horrors - the appointment of some ex-McKinsey advisers into key government roles. The appointees are likely to drive through radical changes in the management and measurement of government departments, to push for efficiency gains and the adoption of online approaches to streamline departments.
Most organisations I know would love to hire as employees a team of ex-McKinsey consultants. Bring all that expertise in house, have the ability to push through more initiatives internally without the need for calling in consultants - and be in a position of strength when negotiating with consultancies for those engagements that are still deemed necessary. Most FTSE firms are trying to hire lots of ex-consultants, yet because this is happening in the public sector it is labelled as scandalous. Ridiculous.
This was followed up in the last days by another article in which the Observer / Guardian Unlimited tore shreds out of consultants for their unethical practices and client scams. This was all based on the rantings to be found within David Craig's recent book about how consultants rip off their clients. I've already submitted a letter of complaint to the Editor, copied below. If you'd like to do the same simply email: politics.editor@guardianunlimited.co.uk
I write in response to Nick Cohen's article "Natural born billers" in which the majority of management consultants are made out to be charlatans and common thieves. I am concerned by the ease with which the author David Craig has been able to persuade mainstream media to tout his views of the consulting industry. We are, after all, talking about a chap who has a book to sell here.
I am a former management consultant myself and now work in the recruitment sector. Both sectors have a few rotten eggs - as does any sector where there's significant money to be made or lost - but the vast majority of professionals are going about their business in an honest and upright manner and delivering huge value to clients both in the public and private sectors.
If we look at the Enron scandal and how the reputations of Andersen employees were tarnished worldwide, we see how easily the media can fan the flames of isolated incidents and turn them into widely held beliefs and prejudices. In the case of Enron it was accountants worldwide that were dragged through the wringer and whose integrity was questioned; by promoting this book's premise you are taking consulting in the same direction on the basis of what can only be described as very limited testimony.As you are undoubtedly aware, repeat business in the consulting industry is absolutely key and I would put it to you that any professional that succeeds in doing business with FTSE clients year after year is clearly doing a great many things right. Most consulting firms generate the majority of their revenues from repeat clients - which must result either from the success of the engagements or be down to gross negligence on the part of most FTSE Directors. Are you seriously suggesting the majority of FTSE Directors simply have the wool pulled over their eyes and pay up year after year? I thought not.
Finding examples of bad practice is easy in any industry, but portraying these practices as industry norms is doing both your readers and the country a gross disservice. I trust you will strike a more balanced view in your future commentaries
Yours faithfully
Tony Restell
Company Director
___________________________________________www.Top-Consultant.com
Switchboard: +44 (0)207 667 6880
Careers Fair preview... Management Consultancy Careers Fair coming to London
In just over 3 months I hope you'll be joining us for the largest Management Consultancy Careers Fair ever to be staged in the UK (and arguably the world!). We used to run smaller events for 200 candidates to meet with recruiters from half a dozen consulting firms. But this year the demand for new consulting hires has gone ballistic and so in partnership with the Management Consultancies Association we've organised a far more impressive event...
We're expecting some 350 company representatives and recruiters to be at Olympia, who combined will be looking to make several thousand new consulting hires this year. Already we've got many of the world's leading consultancies and niche players signed up to attend (Accenture, Capgemini, DiamondCluster, IBM, PA Consulting...). You'll be able to find out about opportunities both in the UK and across Europe.
Anyway, the reason for alerting you via my blog is because the reservation system went live today. As there are only enough places for 1% of our readers to attend, you'll want to get in quick if this sounds like the type of event you don't want to miss.
You can get full details of who'll be there and how to sign up by going to:http://www.top-consultant.com/UK/events/Article_display.asp?ID=48
Look forward to seeing you there, Tony
We're expecting some 350 company representatives and recruiters to be at Olympia, who combined will be looking to make several thousand new consulting hires this year. Already we've got many of the world's leading consultancies and niche players signed up to attend (Accenture, Capgemini, DiamondCluster, IBM, PA Consulting...). You'll be able to find out about opportunities both in the UK and across Europe.
Anyway, the reason for alerting you via my blog is because the reservation system went live today. As there are only enough places for 1% of our readers to attend, you'll want to get in quick if this sounds like the type of event you don't want to miss.
You can get full details of who'll be there and how to sign up by going to:http://www.top-consultant.com/UK/events/Article_display.asp?ID=48
Look forward to seeing you there, Tony
Tips for engaging consultants
Whilst much of the press seems intent on maligning the consulting industry this month, I was pleased to see a more measured article in today's FT counselling clients on how to get the best return from their investment in consultants. Rather than castigating investment in consultants as money down the drain, this piece gives some good insights into how and when to use consultants effectively. A good read for clients and consultants alike. See:http://news.ft.com/cms/s/f6f90514-e6a7-11d9-b6bc-00000e2511c8.html
Rgds, Tony
Rgds, Tony
Breathtaking sights await consulting candidates
BT's fast-growing consulting business have been very shrewd and decided to make use of the BT Tower in London as an enticing venue for its next experienced hires careers event taking place on 26th July.
I was also invited to the BT Tower in the last months and I have to tell you it is simply breathtaking!! From the top you're so high up you feel like you're in the clouds - then you look down and see the London Eye way below... it really is quite an experience.
So if you're free the evening of 26th July and would be interested in finding out more about consulting career opportunities at BT then take a look here and be sure to register in the next days. This is an opportunity not to be missed...
Tony
I was also invited to the BT Tower in the last months and I have to tell you it is simply breathtaking!! From the top you're so high up you feel like you're in the clouds - then you look down and see the London Eye way below... it really is quite an experience.
So if you're free the evening of 26th July and would be interested in finding out more about consulting career opportunities at BT then take a look here and be sure to register in the next days. This is an opportunity not to be missed...
Tony
London bomb blasts
July 7th was a distressing day for all those of us who work, live or know people in Central London. Our thoughts go out to everyone who was caught up or affected by last Thursday's events.
Following the bomb blasts, the Institute of Management Consultancy was compelled to postpone its much-anticipated annual conference - due to take place the very next day. The event has now been rescheduled to 9th September and our thanks go to the 160 attendees and speakers for their flexibility and understanding regarding this late change of date.
Full details of the rescheduled conference can be found by clicking here
In the meantime, our thoughts are with all those affected by events in London on July 7th - and particularly those poor individuals who still do not know the whereabouts or fate of their loved ones.
Tony Restell
Director, Top-Consultant.com
Following the bomb blasts, the Institute of Management Consultancy was compelled to postpone its much-anticipated annual conference - due to take place the very next day. The event has now been rescheduled to 9th September and our thanks go to the 160 attendees and speakers for their flexibility and understanding regarding this late change of date.
Full details of the rescheduled conference can be found by clicking here
In the meantime, our thoughts are with all those affected by events in London on July 7th - and particularly those poor individuals who still do not know the whereabouts or fate of their loved ones.
Tony Restell
Director, Top-Consultant.com
Financial Services + Public Sector consulting show best prospects for growth
There are some fascinating results emerging from our first Quarterly Barometer of the Consulting Industry (if you haven't taken part yet, click here to do so right away).
The respective health of the US and UK consulting markets are portrayed - as viewed by you our readers. We also look at the consulting sectors that hold the best promise for growth and the preliminary results show consultants are very bullish about prospects for the following sectors:
Rgds, Tony
The respective health of the US and UK consulting markets are portrayed - as viewed by you our readers. We also look at the consulting sectors that hold the best promise for growth and the preliminary results show consultants are very bullish about prospects for the following sectors:
- Public Sector
- Financial Services
- Healthcare & Pharma
- Telecoms, Media & Entertainment
Rgds, Tony
Concerned about a colleague's behaviour?
Are they binge drinking, gambling or taking recreational drugs to cope with life in the fast lane? Have you tried and failed to get through to them? Are you worried about the consequences for their career, health and home life?
betty tv is making a documentary series for Channel 4 which aims to help people in trouble turn their lives around and they have contacted Top-Consultant to see if we can help. They would like to speak to consultants who are worried about a colleague or friend.
Please call Kamala on 020 7290 0660, or e-mail kamala@bettytv.co.uk. All contact will be in strict confidence.
betty tv is making a documentary series for Channel 4 which aims to help people in trouble turn their lives around and they have contacted Top-Consultant to see if we can help. They would like to speak to consultants who are worried about a colleague or friend.
Please call Kamala on 020 7290 0660, or e-mail kamala@bettytv.co.uk. All contact will be in strict confidence.
Jobs bonanza for consultants!
Have just returned from summer vacation, so apologies there've not been postings to our consulting blog for the last weeks. But the exciting news as I got back to my desk is that there's been an absolute flood of bookings from consulting firms committing to attend this October's management consultancy careers fair at Olympia.
It seems that firms are expecting a real hiring spree when the holiday season is over and I've returned to find we now have 40+ exhibitors at the careers fair - including prestigious employers like Accenture, Atos Consulting, BearingPoint, Capgemini, Deloitte, Ernst & Young, IBM, Infosys, PA Consulting, Proudfoot and Serco Consulting (to name but a few).
Would be great if you could join us there - if of interest do click on the image below for full details...
Hope to see you there in just a few weeks' time. Tony
It seems that firms are expecting a real hiring spree when the holiday season is over and I've returned to find we now have 40+ exhibitors at the careers fair - including prestigious employers like Accenture, Atos Consulting, BearingPoint, Capgemini, Deloitte, Ernst & Young, IBM, Infosys, PA Consulting, Proudfoot and Serco Consulting (to name but a few).
Would be great if you could join us there - if of interest do click on the image below for full details...
Hope to see you there in just a few weeks' time. Tony
Rabu, 07 Agustus 2013
Staff shortages in consulting
Question: When is a jobs bonanza not a jobs bonanza?
Answer: When your skills don't match the skillsets consulting firms are actually looking to hire!
My last blog post attracted criticism from several candidates who felt there simply isn't a "jobs bonanza" in the management consulting market right now. The evidence they presented is that they've found it impossible to secure a new job in consulting this year. The caveat to my "Jobs bonanza" statement is, of course, that the demand profile for consulting services has shifted quite considerably over the last years - so those individuals that were in demand 5 years ago are not necessarily the same people firms would like to hire today. I do stand by my assertion that this is the best time in the last 5 years to be looking for a consulting job - but clearly only if you've got the skills that are in demand.
The results of our first Quarterly "Consulting Prospects" survey will be out in the next couple of weeks - and the survey findings highlight the areas within consulting that are growing most robustly (and thus the practice areas that are most likely to be hiring). Unsurprisingly practice areas like Manufacturing are on the demise, whilst the likes of Financial Services and TMT consulting are back in vogue. Watch this space for the full findings...
But back to the "Jobs bonanza" debate.
As sponsors of the MCA's riverboat cruise last week, I had the chance to meet with a couple of hundred consultants from the likes of Accenture, Capgemini, Atos Consulting, BT, Deloitte, etc. Having been challenged on the state of the recruitment market in consulting, I went to the event hoping to hear first hand from consultants just how busy they are and how aggressively they are now recruiting.
I wasn't disappointed.
In aggregate, I heard that the major consultancies are now bumping up against serious capacity constraints - they simply don't have the number of consultants necessary to meet accelerating client demand. Recruitment teams are under tremendous pressure and have been given some stratospheric hiring targets for the next year. To try and address the shortfall, consultancies are getting creative and I heard that firms are encouraging consultants to take extra pay in lieu of holidays; introducing initiatives to entice new mothers back into employment; bolstering employee referral schemes. In short, all the things you would expect organisations to do if they find they are turning away business owing to staffing shortages.
The key for those struggling to get hired, then, is to present oneself (in the form of one's CV / resume) as someone that has the skills that are currently in demand. If you can prove you have these skills you will get hired. Back in 2003 the state of the market was a valid impediment to even suitable candidates securing a consulting job; but in 2005 you need to look beyond this. A lack of interviews or offers is a reflection on the candidate rather than the market...
Tony
PS if you need help reworking your CV / resume, click here now
Answer: When your skills don't match the skillsets consulting firms are actually looking to hire!
My last blog post attracted criticism from several candidates who felt there simply isn't a "jobs bonanza" in the management consulting market right now. The evidence they presented is that they've found it impossible to secure a new job in consulting this year. The caveat to my "Jobs bonanza" statement is, of course, that the demand profile for consulting services has shifted quite considerably over the last years - so those individuals that were in demand 5 years ago are not necessarily the same people firms would like to hire today. I do stand by my assertion that this is the best time in the last 5 years to be looking for a consulting job - but clearly only if you've got the skills that are in demand.
The results of our first Quarterly "Consulting Prospects" survey will be out in the next couple of weeks - and the survey findings highlight the areas within consulting that are growing most robustly (and thus the practice areas that are most likely to be hiring). Unsurprisingly practice areas like Manufacturing are on the demise, whilst the likes of Financial Services and TMT consulting are back in vogue. Watch this space for the full findings...
But back to the "Jobs bonanza" debate.
As sponsors of the MCA's riverboat cruise last week, I had the chance to meet with a couple of hundred consultants from the likes of Accenture, Capgemini, Atos Consulting, BT, Deloitte, etc. Having been challenged on the state of the recruitment market in consulting, I went to the event hoping to hear first hand from consultants just how busy they are and how aggressively they are now recruiting.
I wasn't disappointed.
In aggregate, I heard that the major consultancies are now bumping up against serious capacity constraints - they simply don't have the number of consultants necessary to meet accelerating client demand. Recruitment teams are under tremendous pressure and have been given some stratospheric hiring targets for the next year. To try and address the shortfall, consultancies are getting creative and I heard that firms are encouraging consultants to take extra pay in lieu of holidays; introducing initiatives to entice new mothers back into employment; bolstering employee referral schemes. In short, all the things you would expect organisations to do if they find they are turning away business owing to staffing shortages.
The key for those struggling to get hired, then, is to present oneself (in the form of one's CV / resume) as someone that has the skills that are currently in demand. If you can prove you have these skills you will get hired. Back in 2003 the state of the market was a valid impediment to even suitable candidates securing a consulting job; but in 2005 you need to look beyond this. A lack of interviews or offers is a reflection on the candidate rather than the market...
Tony
PS if you need help reworking your CV / resume, click here now
Tirade against consultants shows no signs of letting up...
Oh dear, oh dear, oh dear.
A new set of figures about spend on external advisers is released by the UK government and in no time at all we've got national newspapers bemoaning the waste of taxpayers' money and the outrageous daily rates being paid to consulting gurus.
At this point I'd like to quote Mick James from a piece he wrote defending consultants earlier this year:
"I’m appalled by the inability of a national newspaper to even consider the possibility that some of this consultancy spend might represent value-for-money"
If you missed his sterling defence of the consulting profession, you can find it here:
How much longer do consultants have to keep justifying their very existence?
Reading the latest Scotsman article and Independent article it's hard not to be equally appalled. Where's the balance in these pieces, the journalistic integrity? In one there's a quote from an MP outraged at the government spending £1,000 an hour on consulting gurus. Sorry - £1,000 an hour?!?! Which planet?!
In the other the £2,000+ daily rates of some consultants are compared with the "daily earnings" of other professionals. A top lawyer, for example, can expect to be paid £1,200 a day. The implication being how can these consultants possibly be worth £2,000+ ? The only problem is the apples & pears nature of the comparison. The lawyer actually has take home pay of £1,200 a day, whereas the figure for consultants is their daily billing rate - only a fraction of which will be their take home pay! But of course, that wouldn't fit the thrust of the article - which is to show consultants in the worst possible light. My take? Success breeds envy...
Seen any other articles that are similarly biased against the profession? Or that rare breed - an article defending consultants? Do post them here if you would... Rgds, Tony
What a week!
Forgive the lack of posts to the Management Consultants' Blog in recent days, but two stratospheric changes have taken place here in the last days...
First, after many months of preparatory work and negotiation, Top-Consultant.com was this week acquired by DMGT and will henceforth become a subsidiary of the leading recruitment site Jobsite. All the team here will remain in place, so the main change you will see is an increase in investment and more rapid improvements in our services and technology.
:-)
For the full release click here.
Then, just a couple of days later, my wife Imogen gave birth to a beautiful baby boy James. Our first. I'll spare you the photos (!) but having come two weeks early you can imagine we were caught a little by surprise (so much for first babies always being late!).
Huge thanks to Simon over at The Shilston Partnership and Nick over at Madison Maclean for all their words of advice in preparing for fatherhood. Most appreciated guys. It's a wonderful feeling when clients are also your friends.
That's all for now. We'll be back to full speed here just as soon as I've got my head around the art of changing nappies! Tony
First, after many months of preparatory work and negotiation, Top-Consultant.com was this week acquired by DMGT and will henceforth become a subsidiary of the leading recruitment site Jobsite. All the team here will remain in place, so the main change you will see is an increase in investment and more rapid improvements in our services and technology.
:-)
For the full release click here.
Then, just a couple of days later, my wife Imogen gave birth to a beautiful baby boy James. Our first. I'll spare you the photos (!) but having come two weeks early you can imagine we were caught a little by surprise (so much for first babies always being late!).
Huge thanks to Simon over at The Shilston Partnership and Nick over at Madison Maclean for all their words of advice in preparing for fatherhood. Most appreciated guys. It's a wonderful feeling when clients are also your friends.
That's all for now. We'll be back to full speed here just as soon as I've got my head around the art of changing nappies! Tony
Indian firms in push to gain consulting share
Just seen a sterling in-depth analysis of how the Indian IT giants (Tata, Wipro, etc.) are making a big push to raise consulting revenues - and why, from a strategic point of view, this is critical for them to achieve in the next years. You can find the full article here. Will be fascinating to see this battle unfold... Anyone any thoughts on who the winners will be? Tony
Feedback please
Earlier this year we introduced a new Jobs-by-email service for Top-Consultant readers. You specify the types of jobs you are interested in and then once a week you'll get an alert of all the new jobs that have been posted that match these criteria. If you haven't registered for this yet, you can do so here for free.
Anyway, following our acquisition by DMGT / Jobsite we're just looking to upgrade various parts of the site and we'd appreciate feedback from readers who are subscribed to this jobs alert - what do you like about it & what would you change? Please do post your comments below, thanks Tony
Anyway, following our acquisition by DMGT / Jobsite we're just looking to upgrade various parts of the site and we'd appreciate feedback from readers who are subscribed to this jobs alert - what do you like about it & what would you change? Please do post your comments below, thanks Tony
Buoyancy confirmed - consulting market on a roll
I've just stepped out of the Management Consultancies Association's annual conference to pen a short blog update on the healthy state of the market - as reported by the keynote speakers.
Having attended (indeed sponsored) the Institute of Management Consultancy's annual conference a couple of weeks back, it's been interesting today to hear many of the same messages emerging:
* Consultancies are experiencing robust growth in client demand - and double-digit growth is again expected in the next year
* Attracting and retaining talent is now the number 1 challenge facing consulting Partners
* Having to get deals approved by Procurement departments as well as by client decision-makers is a more and more prevalent requirement. A successful deal agreed over lunch with the CEO is now only half the battle. Getting over the procurement hurdle is at least as difficult
* Experience rather than talent is what clients are demanding in today's market. They want consultants on the team that have detailed experience in their sector - and are less interested in the "bright young things" with an MBA but no sector-specific insights they can bring to the project
Overall the mood at both events has been buoyant, with consultants quietly confident about business prospects and expecting that 2006 will be a vintage year.
Glad we're back in a market where everyone's cheery again... :-) Tony
Having attended (indeed sponsored) the Institute of Management Consultancy's annual conference a couple of weeks back, it's been interesting today to hear many of the same messages emerging:
* Consultancies are experiencing robust growth in client demand - and double-digit growth is again expected in the next year
* Attracting and retaining talent is now the number 1 challenge facing consulting Partners
* Having to get deals approved by Procurement departments as well as by client decision-makers is a more and more prevalent requirement. A successful deal agreed over lunch with the CEO is now only half the battle. Getting over the procurement hurdle is at least as difficult
* Experience rather than talent is what clients are demanding in today's market. They want consultants on the team that have detailed experience in their sector - and are less interested in the "bright young things" with an MBA but no sector-specific insights they can bring to the project
Overall the mood at both events has been buoyant, with consultants quietly confident about business prospects and expecting that 2006 will be a vintage year.
Glad we're back in a market where everyone's cheery again... :-) Tony
Latest hiring trends revealed
Apologies for the lack of postings the last couple of weeks. We were furiously working to ensure the Management Consultancy Careers Fair was as successful as possible for both our readers and management consultancy clients. It was a resounding success and I know from the 40 firms that were exhibiting that tons of interviews are now taking place as a result.
For those of you that couldn't attend I wanted to share the latest hiring trends that I gleaned from talking to firm representatives on their stands. Click the play button below for a 5 minute overview of who firms are most interested in hiring right now...
Regards, Tony
For those of you that couldn't attend I wanted to share the latest hiring trends that I gleaned from talking to firm representatives on their stands. Click the play button below for a 5 minute overview of who firms are most interested in hiring right now...
Regards, Tony
Incommunicado because...
Hi all. Sorry for the long gap in posting to our Blog. This is a reflection of how incredibly busy the consulting market - and the consulting recruitment market - are right now.
Things picked up again a good while back, but now there's an added factor in the mix...
... consultancies (and banks) have been lavishing pay rises on their staff, countering job offers employees have received from competitors and talking up the year-end bonus prospects. This means people are less likely to move jobs now than they were 6 months ago - when a move was seen as the best way of securing a promotion / rise. Which means recruiters are having to work harder just to generate the same volumes of applicants as before.
So recruiters need to hit ever more aggressive recruitment targets to meet client demand; yet at the same time they're having to work harder - and spend more - just to generate the same volume of applicants as before. The pendulum has certainly swung now such that we are in a full-blown candidates' market.
Which in a round-about way explains why I've been so quiet on the blog. We've just been blown away with client demand these last weeks - which if you're a candidate looking for a consulting job right now is great news indeed.
PLEASE NOTE: that doesn't mean everyone reading this site can just walk into a consulting job. The entry hurdles for consulting are still incredibly high - in fact that's one contributor to the recruitment problem the industry is currently facing. If you are not an exact match for what a firm and their clients are looking for, it's still going to be tough to secure a role. But for strong candidates the opportunities out there and the range of organisations currently hiring has not been better anytime in the last 5 years.
Long may it continue! Tony
Things picked up again a good while back, but now there's an added factor in the mix...
... consultancies (and banks) have been lavishing pay rises on their staff, countering job offers employees have received from competitors and talking up the year-end bonus prospects. This means people are less likely to move jobs now than they were 6 months ago - when a move was seen as the best way of securing a promotion / rise. Which means recruiters are having to work harder just to generate the same volumes of applicants as before.
So recruiters need to hit ever more aggressive recruitment targets to meet client demand; yet at the same time they're having to work harder - and spend more - just to generate the same volume of applicants as before. The pendulum has certainly swung now such that we are in a full-blown candidates' market.
Which in a round-about way explains why I've been so quiet on the blog. We've just been blown away with client demand these last weeks - which if you're a candidate looking for a consulting job right now is great news indeed.
PLEASE NOTE: that doesn't mean everyone reading this site can just walk into a consulting job. The entry hurdles for consulting are still incredibly high - in fact that's one contributor to the recruitment problem the industry is currently facing. If you are not an exact match for what a firm and their clients are looking for, it's still going to be tough to secure a role. But for strong candidates the opportunities out there and the range of organisations currently hiring has not been better anytime in the last 5 years.
Long may it continue! Tony
Consultants - act now while the odds are stacked in your favour!
I was invited to join ~40 HR Directors and HR Managers from the world's top management consultancy firms last week, to review what's happening in the consultancy recruitment market. The conclusion reached was quite stark:
There's a shortage of good consulting candidates - relative to the huge recruitment targets that the firms are now trying to hit
The implications for candidates are clear - you are more in demand now than you have been at any time in the last 5 years and the competition for consulting jobs is lower because of a shortage of applicants. The conclusion - from the candidates' perspective - is that now is the time to start applying for consulting jobs while the odds are stacked in your favour. If you'd like to review the latest consulting jobs click here now.
Of course there are pockets of consulting that aren't doing so well, so there will be some candidates struggling to find work still. But for those whose skills are in demand (and particularly those wanting a role in the UK) there has not been a better time to be looking for work in a long long while. So strike now while the iron is hot!
Tony
There's a shortage of good consulting candidates - relative to the huge recruitment targets that the firms are now trying to hit
The implications for candidates are clear - you are more in demand now than you have been at any time in the last 5 years and the competition for consulting jobs is lower because of a shortage of applicants. The conclusion - from the candidates' perspective - is that now is the time to start applying for consulting jobs while the odds are stacked in your favour. If you'd like to review the latest consulting jobs click here now.
Of course there are pockets of consulting that aren't doing so well, so there will be some candidates struggling to find work still. But for those whose skills are in demand (and particularly those wanting a role in the UK) there has not been a better time to be looking for work in a long long while. So strike now while the iron is hot!
Tony
PA Consulting vs. McKinsey vs. Bain ??
There's an interesting read on Ovum.com this week, analysing the strengths and positioning of PA Consulting Group. Not sure I agree with the bit about PA Consulting being up against McKinsey and Bain, I'd have thought there are other consulting firms they come up against much more often. But a good read nonetheless for anyone interested in PA...
Article link
Latest job openings at PA Consulting
Tony
Article link
Latest job openings at PA Consulting
Tony
Sign of the times...
It's an interesting sign of the times to see the consultant survey we've just been asked to run...
With the market for candidates getting ever tighter, what this survey tells me is that consulting firms are increasingly anxious to keep their existing staff happy and to maximise the chances of readers like you staying with your existing firm rather than moving on. You see the survey is all about gauging how Management Consultants like you perceive their work/life balance, career development... and all those other soft factors that make you decide to either stay with a firm or quit.
The results of this one are going to be examined in quite some detail by the vast majority of the top consulting brands. So if you'd like to make your thoughts known and would like to see a copy of the end report then click here to take part in the survey now.
This sudden angst to keep consulting staff happy ties in to a recent meeting I had with HR Managers & HR Directors from the world's leading consultancies. All spoke of their desire to grow their consultant headcounts by double-digit figures in the next year; yet none were prepared to stretch their hiring criteria to accept a wider pool of candidates...
... well no prizes for guessing that if you all want to employ 10% more staff but the pool of potential hires hasn't grown at all - well that's a lot of firms that are going to be left shy of their recruitment targets in a year's time. Or more likely, many will have had to compromise on their entry criteria - just as they did in the dot-com boom.
This explains the heightened concern about retaining staff and the industry desire to have this survey undertaken. If you're worried about hitting the recruitment targets necessary to grow 10%, the last thing you want is a chunk of the workforce moving on that must then also be replaced (and where will these replacements come from if entry criteria aren't relaxed?). Ergo, firms are acutely aware of the need to keep employees happy - and want these survey findings to tell them what they need to change to achieve this.
It's not every day you get to tell your bosses what's wrong with your job (not unless you're giving them a resignation letter at the same time anyway). So if you'd like to take the opportunity and take part in the survey then here's where you need to go.
We are in a candidate-driven market make no mistake about it. Long may it continue!
Tony
With the market for candidates getting ever tighter, what this survey tells me is that consulting firms are increasingly anxious to keep their existing staff happy and to maximise the chances of readers like you staying with your existing firm rather than moving on. You see the survey is all about gauging how Management Consultants like you perceive their work/life balance, career development... and all those other soft factors that make you decide to either stay with a firm or quit.
The results of this one are going to be examined in quite some detail by the vast majority of the top consulting brands. So if you'd like to make your thoughts known and would like to see a copy of the end report then click here to take part in the survey now.
This sudden angst to keep consulting staff happy ties in to a recent meeting I had with HR Managers & HR Directors from the world's leading consultancies. All spoke of their desire to grow their consultant headcounts by double-digit figures in the next year; yet none were prepared to stretch their hiring criteria to accept a wider pool of candidates...
... well no prizes for guessing that if you all want to employ 10% more staff but the pool of potential hires hasn't grown at all - well that's a lot of firms that are going to be left shy of their recruitment targets in a year's time. Or more likely, many will have had to compromise on their entry criteria - just as they did in the dot-com boom.
This explains the heightened concern about retaining staff and the industry desire to have this survey undertaken. If you're worried about hitting the recruitment targets necessary to grow 10%, the last thing you want is a chunk of the workforce moving on that must then also be replaced (and where will these replacements come from if entry criteria aren't relaxed?). Ergo, firms are acutely aware of the need to keep employees happy - and want these survey findings to tell them what they need to change to achieve this.
It's not every day you get to tell your bosses what's wrong with your job (not unless you're giving them a resignation letter at the same time anyway). So if you'd like to take the opportunity and take part in the survey then here's where you need to go.
We are in a candidate-driven market make no mistake about it. Long may it continue!
Tony
Consultants - have your say!
It's that time of year again... it's the season to be merry...
... or equally it is the month each year when we give you the opportunity to have a right go at that recruitment consultant who's been totally unprofessional and hopeless in helping you get a new consulting job. Or to praise one that's worked miracles for you. And - on a more serious note - to identify the best strategies and recruitment partners for finding a consulting job in 2006.
So if you've done any job-hunting in the last year and want to have your say click here now. Our annual recruitment channel survey is published in February and this is your chance to both contribute to the findings and receive a free copy in due course. 1,000+ management consultants take part every year, if you've got 2 minutes to take part then head over to:http://www.top-consultant.com/rc_questionnaire.asp
Many thanks & wish you all a fantastic run-up to Christmas. Tony
... or equally it is the month each year when we give you the opportunity to have a right go at that recruitment consultant who's been totally unprofessional and hopeless in helping you get a new consulting job. Or to praise one that's worked miracles for you. And - on a more serious note - to identify the best strategies and recruitment partners for finding a consulting job in 2006.
So if you've done any job-hunting in the last year and want to have your say click here now. Our annual recruitment channel survey is published in February and this is your chance to both contribute to the findings and receive a free copy in due course. 1,000+ management consultants take part every year, if you've got 2 minutes to take part then head over to:http://www.top-consultant.com/rc_questionnaire.asp
Many thanks & wish you all a fantastic run-up to Christmas. Tony
Recharging for the New Year
A short post to wish all our readers a very Merry Christmas and enjoyable break from work.
Conversations with Consultants, FTSE clients, HR managers and recruitment agencies alike all seem to point to 2006 being a very hectic year for those of us working in the consulting industry. So do have a great break and come back in the New Year fully recharged and ready for a really busy year and sky-high utilisation rates!
Season's Greetings, Tony
Conversations with Consultants, FTSE clients, HR managers and recruitment agencies alike all seem to point to 2006 being a very hectic year for those of us working in the consulting industry. So do have a great break and come back in the New Year fully recharged and ready for a really busy year and sky-high utilisation rates!
Season's Greetings, Tony
Recruiters adamant: 2006 will be a bumper year for candidates!
Here's some cheery news to share with everyone interested in the health of the management consultancy sector. For our forthcoming recruiters' event we asked the 250 attendees (a mix of HR managers and recruitment consultants) to assess the likely buoyancy of the consultancy recruitment market in 2006 - always a good indicator of how healthy the consulting market as a whole is looking...
On the back of a buoyant 2005, an incredible 81% of recruiters believe recruitment levels will be higher still in 2006. The remainder almost all believe the market will be as buoyant as it was in 2005. What other sector can boast that only 1% of executives believe the market will be quieter in 2006 than it was in 2005??
Here's to a bumper year for us all!
Tony
PS Here are those results in full:
Q. Do you envisage your company will make more hires / placements in 2006 than in 2005?
Significantly more hires / placements than in 2005
(35.53%)
More hires / placements than in 2005
(46.49%)
A similar number of hires / placements to 2005
(16.67%)
Fewer hires / placements than in 2005
(0.44%)
Significantly fewer hires / placements than in 2005
(0.44%)
On the back of a buoyant 2005, an incredible 81% of recruiters believe recruitment levels will be higher still in 2006. The remainder almost all believe the market will be as buoyant as it was in 2005. What other sector can boast that only 1% of executives believe the market will be quieter in 2006 than it was in 2005??
Here's to a bumper year for us all!
Tony
PS Here are those results in full:
Q. Do you envisage your company will make more hires / placements in 2006 than in 2005?
Significantly more hires / placements than in 2005
(35.53%)
More hires / placements than in 2005
(46.49%)
A similar number of hires / placements to 2005
(16.67%)
Fewer hires / placements than in 2005
(0.44%)
Significantly fewer hires / placements than in 2005
(0.44%)
Networking skills
Whenever you see the most successful consulting Partners in action, they seem to be natural networkers. People that can work a room, talk to anyone and everyone - and leave an event having made precious business contacts... that over time accumulate into an enviable business network and stream of new client leads.
Mention "networking" to consultants - or indeed any professional - earlier in their career and it seems to be a notion that fills people with dread. I for one love to be in a room of people that want to talk to me - but put me in a room full of strangers where I must make the first move: that's a totally different proposition! Are you the same?!
Having admitted to this, I personally loathe identifying a professional weakness like this and doing nothing about it. And so through some introductions via Ecademy I came across an organisation that specialises in teaching people how to network. We asked them to lay on an event especially for Top-Consultant readers and here's what they have devised for us. I'll feed back some of the gems of advice from the event on this blog mid-March time. But would be great to see lots of you there in person, so if you can make it on 10th March then do sign up for the event here.
And for those of you who are already experts at working a room, do please share your tips and your success stories by posting a comment here... Cheers, Tony
Mention "networking" to consultants - or indeed any professional - earlier in their career and it seems to be a notion that fills people with dread. I for one love to be in a room of people that want to talk to me - but put me in a room full of strangers where I must make the first move: that's a totally different proposition! Are you the same?!
Having admitted to this, I personally loathe identifying a professional weakness like this and doing nothing about it. And so through some introductions via Ecademy I came across an organisation that specialises in teaching people how to network. We asked them to lay on an event especially for Top-Consultant readers and here's what they have devised for us. I'll feed back some of the gems of advice from the event on this blog mid-March time. But would be great to see lots of you there in person, so if you can make it on 10th March then do sign up for the event here.
And for those of you who are already experts at working a room, do please share your tips and your success stories by posting a comment here... Cheers, Tony
Salaries in Consulting
Big £$ salaries and Management Consulting used to go hand-in-hand, back in the good old dot-com days. With the consultancy market having rebounded of late, our suspicion has been that firms would be forced to pay more - come the 2005/06 pay review window...
... and now at last we can prove that this has indeed been the case. Our salary benchmarking report has just been published, based on data from over 1,000 participating management consultants. What's interesting is the wide range in salaries, pay rises / promotions and bonus payments of late. There have been some real winners in the recent consulting upturn - and others that have fared much less well.
Which category do you fall into?
Well now you can find out, because this report is available as a free download to all Top-Consultant readers. You can get your copy (in PDF format) from:http://www.top-consultant.com/salary_report_2006.pdf
Any feedback on this year's report much appreciated. Do post your comments below...
Tony
... and now at last we can prove that this has indeed been the case. Our salary benchmarking report has just been published, based on data from over 1,000 participating management consultants. What's interesting is the wide range in salaries, pay rises / promotions and bonus payments of late. There have been some real winners in the recent consulting upturn - and others that have fared much less well.
Which category do you fall into?
Well now you can find out, because this report is available as a free download to all Top-Consultant readers. You can get your copy (in PDF format) from:http://www.top-consultant.com/salary_report_2006.pdf
Any feedback on this year's report much appreciated. Do post your comments below...
Tony
Recruitment Consultants
We've just finished compiling the results of this year's candidate survey, detailing the recruitment agencies you've had the best experiences of using, the job boards and newspapers you read most often and so on. Tons of insights and useful data for both management consultancy candidates and management consultancy recruiters alike. The full report is now downloadable (details below), but in particular I wanted to give special recognition to 7 recruitment consultants who were highly rated by our readers. We're always being asked for recommendations of recruiters that candidates should speak with - so here's a definitive list as voted for by you the Top-Consultant readership!
The following 7 individuals consistently exceeded candidate expectations in providing a thoroughly professional interface between candidate and client. Congratulations to:
>> Chris Sale - Prism Executive Recruitment
>> Martin Hancock - Prism Executive Recruitment
>> Angela Heath - Beament Leslie Thomas
>> Andrew Bott - EM Consulting
>> Nick Coppin - Acumen Search (formerly @ Madison Maclean)
>> Karl Mann - The Cornell Partnership
>> Victoria Lack - Prism Executive Recruitment
Hats off to all 7 of you!
Tony
PS a full copy of the report can be downloaded from this page
The following 7 individuals consistently exceeded candidate expectations in providing a thoroughly professional interface between candidate and client. Congratulations to:
>> Chris Sale - Prism Executive Recruitment
>> Martin Hancock - Prism Executive Recruitment
>> Angela Heath - Beament Leslie Thomas
>> Andrew Bott - EM Consulting
>> Nick Coppin - Acumen Search (formerly @ Madison Maclean)
>> Karl Mann - The Cornell Partnership
>> Victoria Lack - Prism Executive Recruitment
Hats off to all 7 of you!
Tony
PS a full copy of the report can be downloaded from this page
Fast-growing start-up consultancies
Each year we run a reader poll to discover the fastest-growing new consultancies in the industry. These can be some of the most exciting places to work, but they don't always make it onto the public's radar until they've already achieved fame and fortune. By discovering them in their early stages we can both help them to become established - and also give readers some pointers of firms they might wish to target as employers...
If you work for a fast-growing new firm, you've got just a few weeks to submit your firm as a candidate for inclusion in the 2006 report. You can nominate a firm by visiting this URL.
Looking forward to sharing the results with you around Easter time. Tony
If you work for a fast-growing new firm, you've got just a few weeks to submit your firm as a candidate for inclusion in the 2006 report. You can nominate a firm by visiting this URL.
Looking forward to sharing the results with you around Easter time. Tony
Recruitment websites
Thanks to the 1,300+ management consultancy candidates that took part in this year's poll. It's critical for us as a means of keeping track on whether or not we're still the number 1 choice for candidates looking for a job in consulting.
Fortunately this year's results again show that we are top of the pile, with the majority of all respondents voting us their preferred site for finding a consulting job. THANK YOU for taking part and giving us this glowing endorsement.
Tony
Accenture's NHS woes
Richard Granger has been taking a tough stance with Accenture over delays on its multi-billion NHS "Connecting for Health" contracts, forcing the global consultancy to take a $450m pre-tax profit hit in anticipation of future losses on the contract.
Accenture is facing calls to change personnel on the project and there seems to be a determination that public sector coffers will not bear the brunt of setbacks on the contracts. Accenture, meanwhile, is thought to be looking for a renegotiation of the contracts. Expect a turbulent few months of press coverage on this one...
Here are just a few takes on the situation:
NHS contract delays hit Accenture (BBC)
Accenture Gets a Little Sick (Motley Fool)
British agency expects Accenture to deliver on contract (Reuters)
UK NHS Blasts Accenture Over Delays (Datamonitor Computerwire)
I don't envy the consultants working on those assignments, do you?! Tony
Accenture is facing calls to change personnel on the project and there seems to be a determination that public sector coffers will not bear the brunt of setbacks on the contracts. Accenture, meanwhile, is thought to be looking for a renegotiation of the contracts. Expect a turbulent few months of press coverage on this one...
Here are just a few takes on the situation:
NHS contract delays hit Accenture (BBC)
Accenture Gets a Little Sick (Motley Fool)
British agency expects Accenture to deliver on contract (Reuters)
UK NHS Blasts Accenture Over Delays (Datamonitor Computerwire)
I don't envy the consultants working on those assignments, do you?! Tony
Quarterly update
Once every quarter I like to record a short update aimed at candidates looking for a job in consulting. We're in contact with tons of management consultancy recruiters, so this is a good way for us to impart to you what the state of the market is really like - and what you need to do to secure a new job given current market conditions.
I've just recorded the latest soundbite. Just turn up your volume and hit the play button below to tune in:
Regards, Tony
I've just recorded the latest soundbite. Just turn up your volume and hit the play button below to tune in:
Regards, Tony
Consultants Reunited?
We've been toying with the idea of totally revamping Consultants Reunited to make it a more useable tool for staying in touch with former colleagues and associates - and I wondered if you'd like to provide any input re. the changes you'd like us to make?
When we set the service up we were very conscious of the fact that we didn't want random people to be able to contact you unless they did genuinely know you. Otherwise we felt you'd end up with random headhunters, contractors and the like all contacting you looking for work or wanting to sell their services...
However, we acknowledge we've gone too far in the other direction and although there are thousands and thousands of consulting alumni registered, activity is being restricted because it's hard to find others that you know...
So my question to you is - what changes could we make that would move the service in the right direction, without turning it into a LinkedIn type service where you end up being contacted by people that are not genuine contacts at all?
Anyone with any thoughts, please post them as a comment here. All contributions gratefully received. Rgds, Tony
When we set the service up we were very conscious of the fact that we didn't want random people to be able to contact you unless they did genuinely know you. Otherwise we felt you'd end up with random headhunters, contractors and the like all contacting you looking for work or wanting to sell their services...
However, we acknowledge we've gone too far in the other direction and although there are thousands and thousands of consulting alumni registered, activity is being restricted because it's hard to find others that you know...
So my question to you is - what changes could we make that would move the service in the right direction, without turning it into a LinkedIn type service where you end up being contacted by people that are not genuine contacts at all?
Anyone with any thoughts, please post them as a comment here. All contributions gratefully received. Rgds, Tony
Hiring friends of friends...
Just came across an interesting article for recruiters desperately struggling to reach their sky-high recruitment targets. You'll recall that back when we published our 2006 Recruitment Channel Report we highlighted the fact that candidates' preferred method for finding a new job was through a personal referral channel. That's to say a consultant's career path can be greatly influenced by the opinions of friends and alumni - and that they are particularly likely to apply to a firm where an existing contact has been able to get them a "foot in the door". Firms with really cutting edge referral schemes are able to gain a big advantage as a result.
"Using the buddy system" caught my attention because it expands both on why such schemes hit the mark when it comes to attracting candidates... and also quantifies the potential impact of such schemes. One example is given in which a firm is recruiting 30% of its new hires through friends of friends.
Since Top-Consultant will only ever be one component of a firm's recruitment strategy, I find these types of insights fascinating - and I hope you do too. Click the link above for the full article.
Rgds, Tony
"Using the buddy system" caught my attention because it expands both on why such schemes hit the mark when it comes to attracting candidates... and also quantifies the potential impact of such schemes. One example is given in which a firm is recruiting 30% of its new hires through friends of friends.
Since Top-Consultant will only ever be one component of a firm's recruitment strategy, I find these types of insights fascinating - and I hope you do too. Click the link above for the full article.
Rgds, Tony
McKinsey -- Opus Dei?
Saw an interesting article on Bloomberg this week in which McKinsey and Roland Berger Strategy Consultants are said to be "secretive societies" much like Opus Dei. Very topical - and as an ex-RB consultant myself, something that immediately caught the eye.
The article actually centres on the publication of a new "consulting exposé" book, which critiques the secretive worlds of firms such as McKinsey & Roland Berger. And whilst I've slammed the work of David Craig for being too one-sided, this new release appears at first glance to be more balanced...
"Consultancies have a strong ability to create priorities. What they can do is force companies and executives to set goals. And they can ask strategically important questions because they come from outside and have certain experience. They can also use knowledge from previous consulting contracts to help clients."
So we're not all bad then - not all out to plunder our clients with no tangible return for our fees. There's also a valid commentary on clients' increasing professionalism in managing the consulting projects they initiate - and taking some responsibility themselves for seeing that the project does not get waylaid.
My German's pretty shaky though, so I'll have to leave the detailed appraisal to others. If any readers want to add comments on this new work, feel free to do so here...
Tony
The article actually centres on the publication of a new "consulting exposé" book, which critiques the secretive worlds of firms such as McKinsey & Roland Berger. And whilst I've slammed the work of David Craig for being too one-sided, this new release appears at first glance to be more balanced...
"Consultancies have a strong ability to create priorities. What they can do is force companies and executives to set goals. And they can ask strategically important questions because they come from outside and have certain experience. They can also use knowledge from previous consulting contracts to help clients."
So we're not all bad then - not all out to plunder our clients with no tangible return for our fees. There's also a valid commentary on clients' increasing professionalism in managing the consulting projects they initiate - and taking some responsibility themselves for seeing that the project does not get waylaid.
My German's pretty shaky though, so I'll have to leave the detailed appraisal to others. If any readers want to add comments on this new work, feel free to do so here...
Tony
7 tips for candidates
Management Consultants typically change jobs every 3-4 years, seeking greater fulfilment, financial reward, recognition, appreciation.What is absolutely critical when you're moving is to ensure you:
i) move for the right reasons
ii) find a firm that can genuinely deliver on the changes you want to see happening in your career / life
iii) do what's necessary to maximise your chances of success in this move
With this in mind I've been "penning" a tips report for consulting candidates, possibly as a prelude to writing a book on the subject. If you'd like a free copy of the PDF tips report, just email me on tonyr@top-consultant.com referencing the blog as the place you heard about the report...
Tony
World Cup horror story
Watching the World Cup these last weeks has brought back vivid memories of one of the grimmest days of my consulting career. I wonder if any readers have similar tales of the woes they've faced as a result of working in the high-paced world of consulting? What events have you missed out on or traumas have you faced? Do post your comments / stories below...
Mine relates to the England - Argentina match in the 1998 knock-out phase of the World Cup. Working on a strategy assignment for an airline, I was fortunate enough to be bumped up to first class on the night of the match. An avid football fan, I was however mortified to be on an overnight flight at the time of England's game - but still relatively junior in the firm there wasn't much I could do about it...
Anyway, the stewardesses came round and asked if the 1st class passengers had any particular requests for the flight. My colleague and I asked if the pilot could radio the ground and keep us abreast of the score situation in the England vs Argentina match. Much to our surprise our request was duly passed on to the cockpit and sure enough a short while after the match began we learnt that England had gone 1-0 down to an early goal.
Some time later, with dinner served, the pilot piped up that England had fought back and the scoreline was now 1-1. We regained our appetite, the beef wellington tasted somehow better and we felt a new wave of belief in the team.
Then around what must have been full-time he came on again - Michael Owen had scored a wonder-goal and England were 2-1 to the good. Buoyed by the news and the fact that only minutes of the game remained, we got ourselves some champagne and toasted England's passage to the next round - while all those around us settled down for a night's sleep.
*****
My eyes squinted open to the sound of the pilot on the PA system again. Pulling my blanket off I heard him say "for those of you who were following the England match, the news isn't so good. It was back to 2-2 by half time and then Beckham got a red card. It went to penalties and England will be on a plane home later today..."
What a depressing way to start a week of consulting! It's one thing to have your beloved team lose at the World Cup - but to celebrate a historic victory only then to discover that you lost was truly horrible.
The pilot had, it seems, been receiving updates only sporadically and had had to stop the announcements once passengers started going to sleep. So much for the feel-good factor of flying first class!! And so much for the desirable jet-set lifestyle...
Got any such tales of your own from your time as a consultant? Do feel free to post them below.
Tony
Mine relates to the England - Argentina match in the 1998 knock-out phase of the World Cup. Working on a strategy assignment for an airline, I was fortunate enough to be bumped up to first class on the night of the match. An avid football fan, I was however mortified to be on an overnight flight at the time of England's game - but still relatively junior in the firm there wasn't much I could do about it...
Anyway, the stewardesses came round and asked if the 1st class passengers had any particular requests for the flight. My colleague and I asked if the pilot could radio the ground and keep us abreast of the score situation in the England vs Argentina match. Much to our surprise our request was duly passed on to the cockpit and sure enough a short while after the match began we learnt that England had gone 1-0 down to an early goal.
Some time later, with dinner served, the pilot piped up that England had fought back and the scoreline was now 1-1. We regained our appetite, the beef wellington tasted somehow better and we felt a new wave of belief in the team.
Then around what must have been full-time he came on again - Michael Owen had scored a wonder-goal and England were 2-1 to the good. Buoyed by the news and the fact that only minutes of the game remained, we got ourselves some champagne and toasted England's passage to the next round - while all those around us settled down for a night's sleep.
*****
My eyes squinted open to the sound of the pilot on the PA system again. Pulling my blanket off I heard him say "for those of you who were following the England match, the news isn't so good. It was back to 2-2 by half time and then Beckham got a red card. It went to penalties and England will be on a plane home later today..."
What a depressing way to start a week of consulting! It's one thing to have your beloved team lose at the World Cup - but to celebrate a historic victory only then to discover that you lost was truly horrible.
The pilot had, it seems, been receiving updates only sporadically and had had to stop the announcements once passengers started going to sleep. So much for the feel-good factor of flying first class!! And so much for the desirable jet-set lifestyle...
Got any such tales of your own from your time as a consultant? Do feel free to post them below.
Tony
Consulting lifestyle issues
Consulting lifestyle issues - has anything changed?
Just recently got back from vacation and one of the most pleasant aspects of my holiday was not worrying whether I'd get disturbed by urgent calls from the office. Partly this is an acknowledgement of the trust I have in our talented team (thanks all) - but it particularly stood out as it's a degree of relaxation totally at contrast with my experiences as a consulting employee. Back then (pre-2000) interruptions to weekends and holidays were a major source of discontent - and indeed even the possibility of being disturbed was enough to take some of the shine off of one's free time.
During the hols I met up with a friend who's now leaving consulting for these very reasons. Whilst on holiday, a call came in asking what time his plane was touching down on his return. The consulting firm in question wanted to figure out if there was a way of having the consultant get home from holiday, pack things and be back out on a transatlantic flight to start work with a new client that same day (a weekend, incidentally). This got me thinking, have consultancies really not moved on at all in this respect?!
So I thought it would be an interesting exercise to test the water with you all. Do you still:
o have a problem in your office that consultants are disturbed whilst on holiday or go away on holiday uneasy at the prospect that they might be called?
o leave the office for the weekend either knowing that you've got to come back in over the weekend or dreading the fact that you're likely to get a call asking you to?
o find a long-hours culture prevails?
I'd be interested in your feedback, because I'm convinced that simple company policies on these issues would make consulting employees sleep a lot easier and would have negligible impact on client delivery if the senior team members knew that they had to adhere to these rules.
So what have your recent experiences been - do you still suffer from these types of problems? Any others you'd like to flag up too? Post your comments below - I'm looking forward to reading them! Thanks, Tony
Just recently got back from vacation and one of the most pleasant aspects of my holiday was not worrying whether I'd get disturbed by urgent calls from the office. Partly this is an acknowledgement of the trust I have in our talented team (thanks all) - but it particularly stood out as it's a degree of relaxation totally at contrast with my experiences as a consulting employee. Back then (pre-2000) interruptions to weekends and holidays were a major source of discontent - and indeed even the possibility of being disturbed was enough to take some of the shine off of one's free time.
During the hols I met up with a friend who's now leaving consulting for these very reasons. Whilst on holiday, a call came in asking what time his plane was touching down on his return. The consulting firm in question wanted to figure out if there was a way of having the consultant get home from holiday, pack things and be back out on a transatlantic flight to start work with a new client that same day (a weekend, incidentally). This got me thinking, have consultancies really not moved on at all in this respect?!
So I thought it would be an interesting exercise to test the water with you all. Do you still:
o have a problem in your office that consultants are disturbed whilst on holiday or go away on holiday uneasy at the prospect that they might be called?
o leave the office for the weekend either knowing that you've got to come back in over the weekend or dreading the fact that you're likely to get a call asking you to?
o find a long-hours culture prevails?
I'd be interested in your feedback, because I'm convinced that simple company policies on these issues would make consulting employees sleep a lot easier and would have negligible impact on client delivery if the senior team members knew that they had to adhere to these rules.
So what have your recent experiences been - do you still suffer from these types of problems? Any others you'd like to flag up too? Post your comments below - I'm looking forward to reading them! Thanks, Tony
A lesson in consulting's murky past
I was made aware quite some time ago of a new publication being launched this year, by Chris McKenna of Said Business School. Entitled "The World's Newest Profession: Management Consulting in the 20th Century", the book was set to chart the rise of the management consultancy profession and how alumni of the top consulting firms have come to yield such power in today's corporate world.
The publishers have yet to send through my review copy, but a piece in the Observer this last week reviews some of the key messages to emerge from the book. One observation is how the consulting "profession" came to exist thanks to changes in legislation in the US that essentially created a need for consulting professionals. It's then suggested that changes in legislation ever since - most recently in the form of Sarbox - have stimulated further waves of demand for our services and helped to sustain the growth of the consulting sector.
Unfortunately much that is published on the subject of consulting these days seeks to portray management consultants as underhand and undeserving of their success. Similar vibes emerge from this review of the book, though it is unclear whether it is the Observer's take on McKenna's work or the actual content of the book itself that is to blame.
Looks like an interesting read nonetheless, if only to gain an understanding of the roots of the consulting industry.
Enjoy. Tony
The publishers have yet to send through my review copy, but a piece in the Observer this last week reviews some of the key messages to emerge from the book. One observation is how the consulting "profession" came to exist thanks to changes in legislation in the US that essentially created a need for consulting professionals. It's then suggested that changes in legislation ever since - most recently in the form of Sarbox - have stimulated further waves of demand for our services and helped to sustain the growth of the consulting sector.
Unfortunately much that is published on the subject of consulting these days seeks to portray management consultants as underhand and undeserving of their success. Similar vibes emerge from this review of the book, though it is unclear whether it is the Observer's take on McKenna's work or the actual content of the book itself that is to blame.
Looks like an interesting read nonetheless, if only to gain an understanding of the roots of the consulting industry.
Enjoy. Tony
NHS blow for consulting industry
A number of high-profile consulting firms have been reeling from the impact the NPfIT project has had on their finances, with cash either coming into the businesses far slower than anticipated - or provisions having to be made for expected future losses on the work. This is having a very real effect on the consulting workforce, with many firms financially strapped and unable to push through the salary rises that many in the industry have been expecting from the resurgent industry.
As if these financial woes were not bad enough, the consulting industry is now to be hit by a further NHS blow in the form of bad press. The Guardian and Accountancy Age are just two publications that are today covering the news that the National Audit Office's review of the NPfIT project is to be reopened - only weeks after it was given a clean bill of health in an NAO report. The decision tees up weeks of potential bad press for the consulting industry, as problems with the project are dragged up again - and consultancies are made the scapegoats for what is proving to be a political dream that's exceptionally hard to realise. Expect this one to drag and drag through until Christmas time at least...
As if these financial woes were not bad enough, the consulting industry is now to be hit by a further NHS blow in the form of bad press. The Guardian and Accountancy Age are just two publications that are today covering the news that the National Audit Office's review of the NPfIT project is to be reopened - only weeks after it was given a clean bill of health in an NAO report. The decision tees up weeks of potential bad press for the consulting industry, as problems with the project are dragged up again - and consultancies are made the scapegoats for what is proving to be a political dream that's exceptionally hard to realise. Expect this one to drag and drag through until Christmas time at least...
Talented young consultants - take the MCA challenge!
In recent years our industry has seen a new priority emerge at the Management Consultancies Association – and that is to foster the development and enthusiasm of young consultants who will be the lifeblood of the industry’s future. Top-Consultant.com became sponsors of the Young MCA a year ago as part of a fun drive to broaden the reach of the Top-Consultant brand. Events to date have included a riverboat cruise and talks from networking experts, sporting idols and entrepreneurs. But now the Young MCA have gone a step further and are appealing to consultants’ competitive nature.
Hot on the heels of programmes such as The Apprentice and Dragons’ Den, the MCA have announced the launch of “The 2006 Young MCA Consultants’ Challenge” which will see teams of consultants pitted against one another to complete a series of tasks and challenges. Whilst intended to be a fun event, knowing the consulting industry you can imagine the rivalry there will be between firms to secure their place as leaders of the pack! And for those of you looking to broaden your consulting network, entries are now being sought from teams of young consultants interested in taking part in this month’s event.
The format will see teams of consultants from compete in three activities designed to test the skills management consultants use during their daily work. Top-Consultant are pleased to be sponsoring this charitable event and hope to see as many readers there as possible. For further details and to register a team see:http://www.mca.org.uk/MCA/Events/EventDetails.aspx?EventID=164
Hope to see you there - Tony
Hot on the heels of programmes such as The Apprentice and Dragons’ Den, the MCA have announced the launch of “The 2006 Young MCA Consultants’ Challenge” which will see teams of consultants pitted against one another to complete a series of tasks and challenges. Whilst intended to be a fun event, knowing the consulting industry you can imagine the rivalry there will be between firms to secure their place as leaders of the pack! And for those of you looking to broaden your consulting network, entries are now being sought from teams of young consultants interested in taking part in this month’s event.
The format will see teams of consultants from compete in three activities designed to test the skills management consultants use during their daily work. Top-Consultant are pleased to be sponsoring this charitable event and hope to see as many readers there as possible. For further details and to register a team see:http://www.mca.org.uk/MCA/Events/EventDetails.aspx?EventID=164
Hope to see you there - Tony
Martin Hancock - charitable donations please!
Many of you will know Martin Hancock, who in 2006 was one of just 7 recruiters named Top Management Consultancy Recruiter in recognition of outstanding candidate feedback from Top-Consultant readers. Well Martin is embarking on what looks like a hellish endurance race together with colleague Tara Benton - and it's all in aid of the charity Sportability.
The Coast to Coast Race will be held over 2 days and will see the two cover a distance of 120 miles through a mix of fell and road running, on and off-road mountain-biking and kayaking.
Tara and Martin hope to raise as much money as possible for this worthwhile cause and you can contribute on a corporate or a personal basis via:http://www.justgiving.com/prism
Martin & Tara need your help to reach their target of £1,000 - so please help make their effort worthwhile. Rgds, Tony
The Coast to Coast Race will be held over 2 days and will see the two cover a distance of 120 miles through a mix of fell and road running, on and off-road mountain-biking and kayaking.
Tara and Martin hope to raise as much money as possible for this worthwhile cause and you can contribute on a corporate or a personal basis via:http://www.justgiving.com/prism
Martin & Tara need your help to reach their target of £1,000 - so please help make their effort worthwhile. Rgds, Tony
And the brightest consultants are...
Monday night saw the inaugural Young MCA Consultants' Challenge take place in central London, with a dozen teams entered from some of the biggest names in consulting. Comprising teams of ten, the various rounds challenged consultants to demonstrate the skills they use in their everyday lives - communication skills, risk assessment...
Top-Consultant.com were thrilled to be sponsors of the event, with £1,500 being raised on the night to support the DEPAUL TRUST.
Both Accenture and BT got off to slow starts, with the night looking like it might provide something of an upset. Could one of the smaller firms trounce the bigger names in our industry? Well as the leader board below confirms, Accenture emerged as eventual winners; a joint Tata Consultancy Services / Impact Plus team came second; BT came third.
And to give them their moment in the spotlight, here's the winning team from Accenture accepting the winner's trophy:
Thanks to Natalia, Joy, David and the rest of the team at the Management Consultancies Association for organising what was a fun night.
Tony
Top-Consultant.com were thrilled to be sponsors of the event, with £1,500 being raised on the night to support the DEPAUL TRUST.
Both Accenture and BT got off to slow starts, with the night looking like it might provide something of an upset. Could one of the smaller firms trounce the bigger names in our industry? Well as the leader board below confirms, Accenture emerged as eventual winners; a joint Tata Consultancy Services / Impact Plus team came second; BT came third.
And to give them their moment in the spotlight, here's the winning team from Accenture accepting the winner's trophy:
Thanks to Natalia, Joy, David and the rest of the team at the Management Consultancies Association for organising what was a fun night.
Tony
Management Consultancy recruitment update
Following hot on the heels of last week's Consultancy Careers Fair, I wanted to take a few minutes to record my thoughts on the direction the management consultancy sector is headed, particularly as regards recruitment.
To listen to this 5 minute snapshot, simply turn up the volume on your computer and press the play button below.
Related link: Revealed -- How to ace your case study interview
To listen to this 5 minute snapshot, simply turn up the volume on your computer and press the play button below.
Related link: Revealed -- How to ace your case study interview
Videos - Accenture, Atos Consulting, BearingPoint, BT....
A short post to confirm that the careers fair recordings are now live - full length videos of all the presentations given by:
o Accenture
o Atkins Management Consultants
o Atos Consulting
o BearingPoint
o BT Global Consulting
o Celerant Consulting
o EDS Consulting Services
o Ernst & Young
o Hedra Plc
o KPMG
o Management Consultancies Association
o PA Consulting Group
o TATA Consultancy Services
To view these simply go to:http://www.top-consultant.com/career_fair2006/contents.asp
Happy viewing! Tony
o Accenture
o Atkins Management Consultants
o Atos Consulting
o BearingPoint
o BT Global Consulting
o Celerant Consulting
o EDS Consulting Services
o Ernst & Young
o Hedra Plc
o KPMG
o Management Consultancies Association
o PA Consulting Group
o TATA Consultancy Services
To view these simply go to:http://www.top-consultant.com/career_fair2006/contents.asp
Happy viewing! Tony
Your view counts!
In recent weeks there've been many forum threads on Top-Consultant.com, discussing the relative merits of using a recruitment agency - or avoiding them altogether. There've also been some comments about the most - and least - professional agencies out there.
Our annual reader survey has just been launched and gives you the chance to find out how consulting candidates are currently looking for a job; which channels and providers they recommend other readers should use; what the general recruitment market conditions are likely to look like in the coming months - and much much more.
It takes just a couple of minutes to share your thoughts - and your views would be highly appreciated! Every contributor will receive a copy of the full PDF report, so to take part simply click here now.
For those anxious to progress their job search ASAP, it may be helpful to know that the two recruitment agencies our readers have voted for most highly in the past are BLT and Prism.
Happy job hunting and thank you for taking part in this year's survey.
Tony
Our annual reader survey has just been launched and gives you the chance to find out how consulting candidates are currently looking for a job; which channels and providers they recommend other readers should use; what the general recruitment market conditions are likely to look like in the coming months - and much much more.
It takes just a couple of minutes to share your thoughts - and your views would be highly appreciated! Every contributor will receive a copy of the full PDF report, so to take part simply click here now.
For those anxious to progress their job search ASAP, it may be helpful to know that the two recruitment agencies our readers have voted for most highly in the past are BLT and Prism.
Happy job hunting and thank you for taking part in this year's survey.
Tony
Careers Fair -- Videos
A great big THANK YOU to everyone - consulting firms and readers alike - who made this year's Consultancy Careers Fair such a huge success.
I've just seen the video recordings of the presentations given by many of the top consulting brands on the day - many provide fantastic insights into what it would be like to work at that particular firm. These will all be available to watch on Top-Consultant.com within the next week and I hope they will really help you to make the right decision about your next consulting employer.
In the meantime, my colleagues have loaded up a photo album that gives a great impression of the scale and reach of the Consultancy Careers Fair. If you missed this year's event do take a look here...
Will have those videos ready for you to watch ASAP.
Tony
I've just seen the video recordings of the presentations given by many of the top consulting brands on the day - many provide fantastic insights into what it would be like to work at that particular firm. These will all be available to watch on Top-Consultant.com within the next week and I hope they will really help you to make the right decision about your next consulting employer.
In the meantime, my colleagues have loaded up a photo album that gives a great impression of the scale and reach of the Consultancy Careers Fair. If you missed this year's event do take a look here...
Will have those videos ready for you to watch ASAP.
Tony
Social Networks and Recruitment
Many Top-Consultant readers will already know the name Don Leslie. One of the founder-directors of Management Consultancy recruitment specialists BLT, Don is one of our industry's best-known recruiters. This week's blog entry is the first in a series of guest contributions from Don - who also blogs about Management Consultancy and recruitment on the BLT Blog, http://www.bltog.co.uk/
What’s on MyFace?
As well as using social networking sites such as Friends Reunited, MySpace and FaceBook to engage and recruit staff (as Ernst & Young are doing), employers are increasingly using these sites to carry out background checks. Although I haven’t heard of any consulting firms doing so, I’m sure they are. According to the Times, a survey of 600 British companies revealed that one in five had logged on to Facebook and other networking websites to vet potential employees. As Steve Bailey from BackgroundChecking.com noted in a recent article:
It seems that - finally – members of these social networking sites are realising what damage they might be doing to their career prospects through ‘inappropriate’ postings. Much has been made of the case of the Oxford undergraduate Alex Hill who was disciplined after the university accessed incriminating pictures on Facebook. Hill complained that "I don't know how this happened, especially as my privacy settings were such that only my friends and students in my networks could view my photos." The trouble of course is that it's not just about what you post. It's what others post about you. Here are two close calls I’ve heard about recently…
A friend – let’s call him James – was photographed on a beach. With his trousers down. And a firework between his buttocks. The sequence showed… well, it ended with a burnt bum. You can imagine the rest.
Another, a friend of a friend – let’s call her Alison – was mentioned in connection with some teenage shoplifting adventures.
Both are professionals in their late 30s/early 40s. The incidents were from years back. And – here’s the problem – they were posted on other people’s profiles. Now what would the outcome be if an employer or potential employer were carrying out a bit of due diligence?
Professional networking sites such as Linkedin.com and Xing.com are all very well. But social networking sites… I’m not so sure. Be careful. There’s more to them than you might think - undertaking due diligence on your own name might be a good start..
All views expressed in this article are those of Don Leslie and do not necessarily reflect the views of Top-Consultant.com
What’s on MyFace?
As well as using social networking sites such as Friends Reunited, MySpace and FaceBook to engage and recruit staff (as Ernst & Young are doing), employers are increasingly using these sites to carry out background checks. Although I haven’t heard of any consulting firms doing so, I’m sure they are. According to the Times, a survey of 600 British companies revealed that one in five had logged on to Facebook and other networking websites to vet potential employees. As Steve Bailey from BackgroundChecking.com noted in a recent article:
"We are increasingly asked to undertake media searches and Internet searches as part of our employee screening services and this looks to become a standard element in the future. The findings of these searches can provide valuable insight into personality and current and past events involving a particular candidate who has consented to background checks."
It seems that - finally – members of these social networking sites are realising what damage they might be doing to their career prospects through ‘inappropriate’ postings. Much has been made of the case of the Oxford undergraduate Alex Hill who was disciplined after the university accessed incriminating pictures on Facebook. Hill complained that "I don't know how this happened, especially as my privacy settings were such that only my friends and students in my networks could view my photos." The trouble of course is that it's not just about what you post. It's what others post about you. Here are two close calls I’ve heard about recently…
A friend – let’s call him James – was photographed on a beach. With his trousers down. And a firework between his buttocks. The sequence showed… well, it ended with a burnt bum. You can imagine the rest.
Another, a friend of a friend – let’s call her Alison – was mentioned in connection with some teenage shoplifting adventures.
Both are professionals in their late 30s/early 40s. The incidents were from years back. And – here’s the problem – they were posted on other people’s profiles. Now what would the outcome be if an employer or potential employer were carrying out a bit of due diligence?
Professional networking sites such as Linkedin.com and Xing.com are all very well. But social networking sites… I’m not so sure. Be careful. There’s more to them than you might think - undertaking due diligence on your own name might be a good start..
All views expressed in this article are those of Don Leslie and do not necessarily reflect the views of Top-Consultant.com
Consulting industry bounces back after talk of recession
This week I was invited to write a piece for the Consulting Special that appeared in the Evening Standard on 19th February. It's my take on the yo-yo fortunes of the consulting industry over the last few months - and the more positive landscape that now lies ahead. Would be interested to hear your thoughts on my take, so do submit your comments below...
Consulting industry bounces back after talk of recession
After several months of uncertainty, consulting firms now expect 2008 to be another vintage growth year for the consulting industry.
The last months could best be described as “nailbiting” for those at the helms of the world’s major consulting firms. The fallout from the global credit crunch had the consulting industry trembling. Week after week of gloomy headlines had produced an environment in which major corporate clients were reluctant to commit to any new initiatives. Did major corporations need to prepare for a slowdown, or embark on new growth initiatives? With the economic climate on a knife edge, CEOs of the world’s biggest businesses were undecided – and to an extent still are.
We’ve witnessed a difficult few months for consulting firms precisely because there’s nothing worse for them than a period of paralysis. In a booming market there are growth strategies and M&A opportunities to advise on. When businesses are cutting back, consultancies will be right there to help clients decide where to wield the axe. In either market there is business to be won. It’s the grey area in the middle that consultancies fear. With uncertainty about the economic outlook comes a hesitation to sign off new engagements. So after several years of double-digit revenue growth, the leaders of the world’s major consulting brands were staring at a possible consulting recession - if the world’s stock markets didn’t settle and market sentiments show signs of improving.
The problem these consulting leaders face is that their sector is more susceptible than most to periods of economic uncertainty. Within a six month period, the industry can be turned on its head. Firms that were so busy they were turning away business can find work drying up as paralysis prevents new engagements from being signed off. With engagements lasting an average of six months, consultancies face a collapse in their revenues if there are just a few months of economic uncertainty As we entered 2008, this was exactly the situation that consultancies were facing. Lots of new assignments were being discussed with clients, but few deals were actually being closed. The industry was just months away from having to implement cutbacks and redundancies – and with staff costs accounting for 66% of a typical firm’s cost base, redundancy programs tend to be far-reaching once Partners decide they are necessary.
Fortunately a corner has now been turned and the consulting industry is bouncing back. Whilst a few firms are still struggling, most are now reporting that clients are signing off on new projects – and skills shortages rather than a lack of new business look like being Partners’ major headache for the remainder of the year. A combination of interest rate cuts and improved market sentiments have ensured that business leaders cannot sit on growth initiatives indefinitely. Projects are being kicked off again and another bumper year is now being anticipated by consulting Partners. Everyone associated with the sector can breathe a collective sigh of relief.
The impact of all this uncertainty on recruitment has been pronounced. Industry website Top-Consultant.com reports that 22% of consulting employers have delayed the start of their 2008 recruitment drives as a result of the global credit crunch and resulting market uncertainties. January, usually a bumper month for candidates wanting to find a new consulting job, has been somewhat subdued. “Interview cycles have been prolonged by employers and offer letters have taken longer to get out to candidates” confirms Bryan Hickson, a Director at Top-Consultant. “Everyone has been anxious to avoid a situation where new hires were being brought on board just as the market might have been turning. As a result recruitment campaigns were scaled back and those candidates already in the recruitment process found themselves being stalled as much as possible.”
Now all that is changing and the volume of recruitment advertising is finally catching up with the improved market sentiments. A staggering 75% of consulting employers report they are looking to hire staff this year at least as fast as they did in 2007 – and 2007 itself was considered to be an exceptionally buoyant recruitment year. Yet having had recruitment more or less on hold in January, many firms now have some very sizeable hiring targets to hit and only 10 months of the year left to hit them. “We can expect to see a lot of inter-firm poaching of staff and a willingness to bring in talent from outside the consulting industry as the year unfolds” predicts Hickson. Rosier times, it would seem, lie ahead. Unless that is a severe recession bites, in which case a totally different type of cost-cutting consultants can expect to be in demand.
Consulting industry bounces back after talk of recession
After several months of uncertainty, consulting firms now expect 2008 to be another vintage growth year for the consulting industry.
The last months could best be described as “nailbiting” for those at the helms of the world’s major consulting firms. The fallout from the global credit crunch had the consulting industry trembling. Week after week of gloomy headlines had produced an environment in which major corporate clients were reluctant to commit to any new initiatives. Did major corporations need to prepare for a slowdown, or embark on new growth initiatives? With the economic climate on a knife edge, CEOs of the world’s biggest businesses were undecided – and to an extent still are.
We’ve witnessed a difficult few months for consulting firms precisely because there’s nothing worse for them than a period of paralysis. In a booming market there are growth strategies and M&A opportunities to advise on. When businesses are cutting back, consultancies will be right there to help clients decide where to wield the axe. In either market there is business to be won. It’s the grey area in the middle that consultancies fear. With uncertainty about the economic outlook comes a hesitation to sign off new engagements. So after several years of double-digit revenue growth, the leaders of the world’s major consulting brands were staring at a possible consulting recession - if the world’s stock markets didn’t settle and market sentiments show signs of improving.
The problem these consulting leaders face is that their sector is more susceptible than most to periods of economic uncertainty. Within a six month period, the industry can be turned on its head. Firms that were so busy they were turning away business can find work drying up as paralysis prevents new engagements from being signed off. With engagements lasting an average of six months, consultancies face a collapse in their revenues if there are just a few months of economic uncertainty As we entered 2008, this was exactly the situation that consultancies were facing. Lots of new assignments were being discussed with clients, but few deals were actually being closed. The industry was just months away from having to implement cutbacks and redundancies – and with staff costs accounting for 66% of a typical firm’s cost base, redundancy programs tend to be far-reaching once Partners decide they are necessary.
Fortunately a corner has now been turned and the consulting industry is bouncing back. Whilst a few firms are still struggling, most are now reporting that clients are signing off on new projects – and skills shortages rather than a lack of new business look like being Partners’ major headache for the remainder of the year. A combination of interest rate cuts and improved market sentiments have ensured that business leaders cannot sit on growth initiatives indefinitely. Projects are being kicked off again and another bumper year is now being anticipated by consulting Partners. Everyone associated with the sector can breathe a collective sigh of relief.
The impact of all this uncertainty on recruitment has been pronounced. Industry website Top-Consultant.com reports that 22% of consulting employers have delayed the start of their 2008 recruitment drives as a result of the global credit crunch and resulting market uncertainties. January, usually a bumper month for candidates wanting to find a new consulting job, has been somewhat subdued. “Interview cycles have been prolonged by employers and offer letters have taken longer to get out to candidates” confirms Bryan Hickson, a Director at Top-Consultant. “Everyone has been anxious to avoid a situation where new hires were being brought on board just as the market might have been turning. As a result recruitment campaigns were scaled back and those candidates already in the recruitment process found themselves being stalled as much as possible.”
Now all that is changing and the volume of recruitment advertising is finally catching up with the improved market sentiments. A staggering 75% of consulting employers report they are looking to hire staff this year at least as fast as they did in 2007 – and 2007 itself was considered to be an exceptionally buoyant recruitment year. Yet having had recruitment more or less on hold in January, many firms now have some very sizeable hiring targets to hit and only 10 months of the year left to hit them. “We can expect to see a lot of inter-firm poaching of staff and a willingness to bring in talent from outside the consulting industry as the year unfolds” predicts Hickson. Rosier times, it would seem, lie ahead. Unless that is a severe recession bites, in which case a totally different type of cost-cutting consultants can expect to be in demand.
Consultants in the dock again
So the Public Accounts Committee has found that of the £2bn + of public money being invested in the services of the consulting industry, around £500 million a year is being needlessly spent. If this is really the case, it seems staggering to me that consulting firms feel the full force of the resulting outcry. Surely if government mandarins squander 1/4 of all tax revenues entrusted to them, it is they that should be in the dock. If they'd spent this money jetting public sector workers around the world to watch every Formula 1 race in the calendar, it would be government rather than Formula 1 bosses in the dock.
Yet this is the peculiar way in which the media report on anything to do with the consulting industry. Conveniently overlooking the fact that these public sector contracts are not hugely lucrative (witness the low profit margins of public sector practices) and can be very risky (think back to the NHS NPfIT programme for an example of consulting firms getting burnt on public sector assignments). Instead we are greeted with headlines like the following and the blame is effortlessly shifted away from those who are truly culpable:Anger as government pays £63 a second to consultants (The Scotsman)
Labour blows £2 billion-a-year on army of Whitehall advisers (Evening Standard)
Now of course there are examples of consulting projects that have failed to deliver - and a whole raft of reasons for such failures. But to suggest that the majority of this spend has yielded no return to the taxpayer is just farcical.
We are, it seems, doomed to a perception with the public that's just marginally above that of an estate agent or used car salesperson...
Tony Restell
Yet this is the peculiar way in which the media report on anything to do with the consulting industry. Conveniently overlooking the fact that these public sector contracts are not hugely lucrative (witness the low profit margins of public sector practices) and can be very risky (think back to the NHS NPfIT programme for an example of consulting firms getting burnt on public sector assignments). Instead we are greeted with headlines like the following and the blame is effortlessly shifted away from those who are truly culpable:Anger as government pays £63 a second to consultants (The Scotsman)
Labour blows £2 billion-a-year on army of Whitehall advisers (Evening Standard)
Now of course there are examples of consulting projects that have failed to deliver - and a whole raft of reasons for such failures. But to suggest that the majority of this spend has yielded no return to the taxpayer is just farcical.
We are, it seems, doomed to a perception with the public that's just marginally above that of an estate agent or used car salesperson...
Tony Restell
Market collapse? ... or business as usual?
There seem to be really mixed messages out there at present - lots of firms seem to be thriving and recruiting really aggressively. But then can consulting really be escaping any fall-out from the credit crunch and the barrage of doomsday headlines we've been seeing?
So I thought I'd turn to you our readers for the definitive view. Let me know your thoughts on the following 3 questions and the results of the poll will appear on screen when you hit submit. Hopefully we can get a couple of hundred responses this month and get a really good picture of what the UK consulting market is doing...Take part in 1 minute survey
P.S. feel free to post replies to this blog post to share anecdotal evidence as well - either than the market is collapsing or that it's very much business as usual at your firm...
Thanks for participating.
Tony Restell, Top-Consultant.com
So I thought I'd turn to you our readers for the definitive view. Let me know your thoughts on the following 3 questions and the results of the poll will appear on screen when you hit submit. Hopefully we can get a couple of hundred responses this month and get a really good picture of what the UK consulting market is doing...Take part in 1 minute survey
P.S. feel free to post replies to this blog post to share anecdotal evidence as well - either than the market is collapsing or that it's very much business as usual at your firm...
Thanks for participating.
Tony Restell, Top-Consultant.com
The price of dubious advice - £100bn a year
Just seen a piece that appeared in the Observer this weekend, "The price of dubious advice - £100bn a year".
I'm once again incensed by the reporting of our industry as one built on false promises and deception. Take a read of the article and do post your thoughts on the following forum thread which I've created to allow us to discuss and rubbish this. For what it's worth, here's the reply I've sent to Simon at the Observer - though not holding my breath to see them publish it...
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Simon
Congratulations on an interesting piece in the Observer this weekend. However consultant-bashing articles do tend to miss one key argument when pointing the finger of blame at consulting firms – and you have overlooked it too. The trade body (MCA) figures show that 66% of each consulting firm’s cost base is the cost of its staff. So allowing for some profit margin, it would still cost Britain plc at least 50% of the current spend on consulting services to just kill off the consulting industry and employ these people in the corporate and public sectors instead.
More often than not, cost over-runs and project failures result from senior management bringing in consultants on a flawed brief. The outcomes are not properly defined; key milestones not established (or constantly revised as the brief is allowed to evolve mid-way through a project); internal resources not dedicated to the project such that the consultants’ meters are ticking but the required access to client staff is being denied. All these management failings would be exacerbated considerably if the pain of a significant bill and ongoing public scrutiny were not ever-present to concentrate the mind.
The current NHS IT investments are a case in point. Richard Granger was able to negotiate with consulting firms a series of risk-reward contracts that saw the firms face severe financial penalties if key milestones and objectives were not met. These financial penalties have now been triggered and at least some of the spend on this ambitious project has now been recouped. Are we really to believe that thousands of extra employees hired by the NHS could have achieved a more favourable outcome than that achieved by the consulting firms? That if employed by the NHS these consultants would suddenly have developed project management skills and capabilities that they were lacking from years spent working in the private sector?
No – the project would have had none of the public scrutiny and been able to recoup not a penny of the costs incurred if the consultancy route had been avoided. The consultants just make a convenient scapegoat and the headline figures of monies spent are always portrayed as an expense that would otherwise not have been incurred.
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Interested to read your thoughts and hope this turns into an interesting forum thread
Tony Restell
Top-Consultant.com
I'm once again incensed by the reporting of our industry as one built on false promises and deception. Take a read of the article and do post your thoughts on the following forum thread which I've created to allow us to discuss and rubbish this. For what it's worth, here's the reply I've sent to Simon at the Observer - though not holding my breath to see them publish it...
-------------------------------------
Simon
Congratulations on an interesting piece in the Observer this weekend. However consultant-bashing articles do tend to miss one key argument when pointing the finger of blame at consulting firms – and you have overlooked it too. The trade body (MCA) figures show that 66% of each consulting firm’s cost base is the cost of its staff. So allowing for some profit margin, it would still cost Britain plc at least 50% of the current spend on consulting services to just kill off the consulting industry and employ these people in the corporate and public sectors instead.
More often than not, cost over-runs and project failures result from senior management bringing in consultants on a flawed brief. The outcomes are not properly defined; key milestones not established (or constantly revised as the brief is allowed to evolve mid-way through a project); internal resources not dedicated to the project such that the consultants’ meters are ticking but the required access to client staff is being denied. All these management failings would be exacerbated considerably if the pain of a significant bill and ongoing public scrutiny were not ever-present to concentrate the mind.
The current NHS IT investments are a case in point. Richard Granger was able to negotiate with consulting firms a series of risk-reward contracts that saw the firms face severe financial penalties if key milestones and objectives were not met. These financial penalties have now been triggered and at least some of the spend on this ambitious project has now been recouped. Are we really to believe that thousands of extra employees hired by the NHS could have achieved a more favourable outcome than that achieved by the consulting firms? That if employed by the NHS these consultants would suddenly have developed project management skills and capabilities that they were lacking from years spent working in the private sector?
No – the project would have had none of the public scrutiny and been able to recoup not a penny of the costs incurred if the consultancy route had been avoided. The consultants just make a convenient scapegoat and the headline figures of monies spent are always portrayed as an expense that would otherwise not have been incurred.
-------------------------------------
Interested to read your thoughts and hope this turns into an interesting forum thread
Tony Restell
Top-Consultant.com
Where did all the consulting jobs go?
"Where did all the consulting jobs go?" -- it's a headline I've had filed away to use whenever the current banking turmoil started to spill over into the consulting sector.
Yet after 2 days spent with 500-odd consulting recruiters, I have to conclude that the consulting sector hasn't yet been that badly impacted. With the exception of a few isolated hiring freezes and practice-specific redundancy programmes, there's been no bloodbath for the consulting industry thusfar. Indeed, within a couple of hours of the doors opening at our Consultancy Careeers Fair, word spread that one of the firms had already made an on-the-spot offer to a candidate visiting their stand. Towards the end of the event, a tour of the exhibitors confirmed each firm had earmarked dozens of candidates who were a perfect fit for roles they were currently looking to fill. So it's hardly all gloom and doom in the consulting market and readers would do well to remember that we've never experienced an absolute recession in consulting - only ever periods of below-average growth!
Clearly no sector is going to escape unscathed from the current economic turmoil - but it seems at least that the consulting industry has learnt its lesson from the dot-com crash and the over-expansion that necessitated mass-redundancies back then has not been allowed to occur this time round. And for now at least, new consulting jobs are still in relatively good supply...
Yet after 2 days spent with 500-odd consulting recruiters, I have to conclude that the consulting sector hasn't yet been that badly impacted. With the exception of a few isolated hiring freezes and practice-specific redundancy programmes, there's been no bloodbath for the consulting industry thusfar. Indeed, within a couple of hours of the doors opening at our Consultancy Careeers Fair, word spread that one of the firms had already made an on-the-spot offer to a candidate visiting their stand. Towards the end of the event, a tour of the exhibitors confirmed each firm had earmarked dozens of candidates who were a perfect fit for roles they were currently looking to fill. So it's hardly all gloom and doom in the consulting market and readers would do well to remember that we've never experienced an absolute recession in consulting - only ever periods of below-average growth!
Clearly no sector is going to escape unscathed from the current economic turmoil - but it seems at least that the consulting industry has learnt its lesson from the dot-com crash and the over-expansion that necessitated mass-redundancies back then has not been allowed to occur this time round. And for now at least, new consulting jobs are still in relatively good supply...
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