I have been spending a lot of time at the interface between digitalisation and consultancy for some time now. But when I reflect on the current state of our industry, I can not help but ask myself: what does the future look like ?
The world is changing rapidly, and so are the needs and expectations of our clients. New technologies, changing demographics and global economic shifts are just some of the factors reshaping the way businesses operate. As a result, the consulting industry is also in a state of upheaval.
In this first blog post, I would like to explore some of the possible futures of consulting. I will share my thoughts on how our industry might evolve in the coming years, and what we as consultants can do to stay relevant and effective in the face of these changes.
The key takeaway from this first post (will there be another?) is the need for advisory teams to stay with their clients longer.
The future of consulting is not just about giving expert advice, but also about providing holistic, end-to-end solutions that address the client's specific needs and that they can trust. This means that advisors must be prepared to work in multiple areas, from technology to operations to communications and finance. Advisors are not only expected to write a strategy, but also to ensure that the client can actually implement the strategy.
Another signal is the shift towards more collaborative and iterative advisory processes. Collaborative because consultants are increasingly working with clients and clients’ ecosystems to develop and refine ideas over time, rather than delivering a final report or solution. Note ecosystems - after open innovation could come open delivery, as opposed to the earlier monolithic delivery. The value will be in consultants not just delivering, but enabling ecosystem delivery by acting as connectors and coordinators (will there be REST-API consultants?). And iterative, as is common with agile methods. This approach requires a high degree of flexibility and adaptability, and a willingness to experiment and iterate until a good solution is found.
To ensure this, clients can require their consultants to be hands-on and deliver value for money. Rather than simply giving advice and then moving on, clients will want advisors to invest in the success of their projects and are willing to share in the risks and rewards. For example, consultants could be paid partly on the basis of the results they achieve for the client, rather than just for the time they spend on the project. They could also be asked to invest their own capital or resources in the project to better align their interests with those of the client. By sharing in the risks and rewards of a project, consultants are incentivised to work harder and smarter to achieve the best possible outcome. This can lead to more innovative and effective solutions and closer relationships between advisors and their clients, but it also requires a higher level of commitment and accountability on the part of advisors. They must be prepared to assume some of the financial and reputational risks of a project and take responsibility for its success or failure. This requires a higher level of transparency and trust between advisors and clients, and a willingness to work together towards common goals.
As we see in times of recession, clients have less budget, are more flexible and put more emphasis on optimising their costs. At the same time, we see a consolidation of players under big banners, even if the teams appear under a different name. There will be permeability between big shops and boutique teams and even individuals from the gig economy.
I am not talking about AI and the changes in the knowledge industry yet. ChatGPT and its infinite pool of interns is disrupting the market, but that's not the only technology we are facing. Let us save that for another post!