Is Management Consulting Fading Away?

The world's biggest consulting firms are helping companies prepare for the future, but they are facing unprecedented disruption. Learn more about how management consulting is changing with expert SEO analysis.

Is Management Consulting Fading Away?

The world's biggest consulting firms are helping companies prepare for the future, but they are facing unprecedented disruption. According to a CB Insights report, traditional consulting firms have only grown by 2% in the past five years. The industry is still growing, but not at the same rate as before. This is due to organizations understanding that paying a lot of money for a presentation that will just sit on a shelf is not worth it, unless the problem is very complex.

It's important to note that even production workers became the lowest-level managers due to lifelong employment and on-the-job training. To think that this can be done without any consequences is to be unaware of the damage that technocratic elites from McKinsey and other management consulting firms have done to the United States. Management consultants provide advice to managers on how to run businesses; McKinsey alone serves the management of 90 of the 100 largest corporations in the world. The widespread use of management functions throughout the workforce was a major factor in creating the middle class of the mid-century.

Management's job is to keep employees focused on the company's best interests and let them do their jobs. During the 1970s, and accelerating into the eighties and nineties, improved management consultants fulfilled this duty by targeting middle managers who had dominated mid-century companies and whose salaries affected bottom line. As the industry moves forward, more companies are likely to follow this path and become niche consulting firms. The management consultancy, Kiechel noted, acquired its power and authority not from the “experience of the silver hair industry”, but rather from the brilliance of its ideas and the people who explained them, even if they were only 28 years old.

It's crazy to think that many of these people on boards of directors and CEOs were also consultants, so in a way, the industry is killing itself. Nowadays, Management Consulting is one of the most popular jobs for Harvard, Princeton and Yale graduates. McKinsey developed its “overhead value analysis” strategy in response to mid-century corporations' over-reliance on middle management.This is where recent US administration history intersects with Pete Buttigieg's life story. Fortune 500 organizations, which have long been large consulting firms' main clients, are facing strategic challenges.

This doesn't help either.