We couldn't agree more with Mark Minevich - Every word of it.?The consulting industry (which I and Opening Bell Ventures are a part of), is facing a monumental disruption as billables x value equation lost all common-sense.?Only the small, nimble, smart execution-oriented firms will be able to drive actual tangible value for their clients as they personalize their problems as their own.?Ask us how we know ??
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For decades, Strategy consulting firms have advised governments and corporations, billing billions for reports that rarely lead to action. Now, Washington is pushing back. The General Services Administration (GSA) has ordered agencies to terminate contracts, signaling a major shift. It’s about ending reliance on consultants who charge massive fees but deliver little real value. Why Is Washington Cutting Consulting Contracts? 1. Massive Costs, Little Benefit McKinsey earned $720 million from U.S. government contracts in just eleven years. What did taxpayers receive? Often very little of substance. NYC's $4 million McKinsey contract for trash bin recommendations exemplifies the problem. City planners could have developed these solutions internally at a fraction of the cost. Saudi Arabia's Vision 2030 hemorrhaged millions to consulting firms, receiving what many describe as recycled strategies with minimal customization. 2. Strategy Without Execution The core issue: selling strategy without responsibility for implementation. "Consultants don't profit from results; they profit from reports," explains former contractor James Westin. South Africa paid BCG $30 million yet continues to face crippling power shortages. 3. Breaking the Dependency Cycle Agencies have become addicted to consultants, outsourcing not just tasks but critical thinking itself. This dependency has eroded institutional knowledge. When consultants leave, they take expertise with them 4. AI , Automation and AI analytics Are Replacing Consultants. Why pay McKinsey millions when AI can analyze markets, develop strategies, and simulate outcomes instantly? Companies already offer tools that perform much of what junior consultants do - with greater consistency. The Problems With Big Consulting 1. Overpriced Reports, Recycled Ideas ? McKinsey and BCG reuse the same frameworks, tweaking minor details. 2. Buzzwords Over Real Solutions ? Consultants justify fees with jargon like “synergy” and “digital transformation”. ? Anand Giridharadas calls consulting “intellectual theater”—impressive, but hollow. What Happens Next? 1. Governments Must Build Internal Expertise 2. For MBA graduates who saw consulting as their golden ticket, the landscape is shifting dramatically. 3. AI Will Dominate Strategy and AI agents will replace consultants The Future 1. Big Consulting Firms Must Adapt ? The era of billion-dollar consulting retainers is over. 2. Smaller, Results-Driven Firms Will Rise ? Companies will favor firms that actually deliver results. 3. AI Will Replace Traditional Consulting The consulting industry's crisis reveals a deeper truth: real transformation comes not from brilliant strategies alone, but from the harder work of execution. As one former executive noted: "Consultants are like seagulls. They fly in, make noise, leave droppings everywhere, and fly out." Washington seems to have finally reached the same conclusion.