Catalant Technologies reposted this
Bestselling Author & Speaker, Strategy & Innovation Consulting, Inc. Magazine, Praxie.com, Center for Effective Organizations at USC
Consulting firms, agencies, and independent consultants face industry disruption. Risks exist, but so do opportunities. Here's my latest article in Inc. Magazine that outlines key trends, challenges, and opportunities facing consulting in the future. Consulting is ripe for disruption due to five factors inherent with today's old models: 1. Labor-intensive 2. Time-based business model 3. High margins 4. Time-bound value 5. Knowledge commoditization Converging trends are driving this disruption, but the flip side of disruption are opportunities to leverage these for innovation: 1. The rise of AI and automation 2. Digital transformation as a service 3. The gig economy and freelance consultants 4. Client expectations and value delivery In the article I also reference platforms that can be leveraged to scale new models including Upwork, Talmix, and Umbrex and Catalant Technologies. #consulting #managementconsulting #businessconsulting #consultants https://lnkd.in/gxh-pTSM
Erica White
1mo
I just came across this article online earlier today! As a consultant, I loved it, and I totally agree, Soren Kaplan. I loved your point about the necessity of collaborating with clients. I think there has historically been a lot of pressure (or just an expectation?) for consultants to create and deliver one big, shiny final report to customers filled with lots of consultant-speak. In my experience, customers prefer to collaborate with you on that report along the way (even if it feels vulnerable to us to show clients unfinished versions of something!), and it should definitely contain accessible insights and clear, actionable recommendations.
Glenn Landmesser
1mo
Great article Soren Kaplan For many years in consulting, I've been surprised by the hesitance to offer value-based pricing to clients. It can be more challenging to measure, for sure, but it seems like it would be a good way for consultancies to curb the downward trend.
Yes, Soren, great insights! That combination of factors drove the creation of the model that we call Consulting 2.0, a more flexible and fit-to-purpose approach to consulting.
MNC Executive-turned Consultant | Founder at Exponasia Growth Partners | Helping ambitious companies achieve success in Southeast Asia
1moI have read your article and believe that the rise of AI and the expansion of the gig economy and freelancers are, and will continue to be, the two most disruptive forces in the industry. With regard to the non-scalability of what is a labor-intensive industry, I foresee many firms transitioning to packaging and then selling or licensing "products" such as frameworks, proprietary models, and other offerings, similar to trends observed in the recruitment and the professional training industries, among others. With regard to hourly-based compensation, this model is akin to those used in other professional service sectors, such as law and audit firms. While it is surprising that this compensation model still prevails, it remains a fact. There are opinions suggesting that outcome-based compensation approaches may lead to biased advice, posing risks to professional and ethical compliance. While I am not sufficiently informed to comment in depth, I believe this is a common counter-argument being made.