Coronavirus - A blow or opportunity for Consulting Industry?

The consulting industry has already been noticeably impacted by the global pandemic in a number of ways. Consultants are regular travelers, making them particularly susceptible to the virus’ spread. With this, the financial downturn the pandemic seems almost certain to provoke, will likely have a large impact on their revenues.

  “Many companies are wondering how to deal with the situation and the economic consequences. And that's why consultants are still in demand.”

 Overall, consultants do well in both up and down economies. Why? When times are good, companies have larger budgets and pursue growth opportunities. When times are bad, companies need help tightening their belts in a strategic and targeted way. Still, in the short term, the coronavirus will no doubt negatively impact consulting.

In this article, we’ll explore the magnitude of the coronavirus economic impact and what this means for the consulting industry.

The coronavirus pandemic has already had a huge impact on the economy in general – something which has, of course, had a knock-on impact on consulting. Just exactly how much of a dent on the industry’s growth COVID-19 has had is extremely difficult to tell, but in a new forecast, researchers have tried to put a number to the damage, and have found global consulting could lose some $30 billion of value in 2020.

What Does This Mean For Consulting?

You should not be surprised if a recession occurs in 2020 as a result of the Coronavirus. There will be some businesses with interesting market positions who may seek help navigating this unprecedented environment and could turn to consultants. A business that needs creative ideas to avoid going bankrupt, such as a business in the travel industry, may seek consulting help. Alternatively, a relatively well-positioned business, perhaps one that makes packaged foods it sells to grocery stores (which is a somewhat recession-proof and even Coronavirus-proof activity), may want help designing a merger and acquisition strategy while valuations of potential acquisition targets are low. The economic downturn could prove to provide some interesting consulting opportunities.

Upon asking whether this can be an opportunity or not, Ms. Saira Akbar – CEO of Global Management Consultants, responded:

Consulting firms will need a hard reset. They will now need to become relevant and focus on outcomes for their customers and not on academic models or their heavy paycheque. You will see many disappear or merged with each other. The big ones or only those who truly are focused on doing what's right for their customers will survive.

Corporate training Vs Consulting, which will have an edge?

Both are important, but most people separate them when they should be combined. The idea is to achieve a sustainable result, not to do a quick fix with training that will lose its effectiveness 2 weeks after they go back to the workplace. Hire a consultant who can integrate training into the mix. But first, they need to determine a benchmark to establish ROI of the initiative, we recommend the OCEAN tool at www.cultureevolution.com. Arthur Carmazzi - Founder & Chief Awesomeness Officer at Directive Communication International.

The coronavirus is a big deal for everyone, including current and aspiring consultants. The impact on the economy is likely to be large. However, it is important to recognize the severity of the situation and consider how best to prepare and develop backup plans for your clients. For any specific question reach out at [email protected].