Here we go again...

The consulting and advisory services market is undergoing a period of significant reshaping. Economic fluctuations, evolving client expectations, and technological advancements are redefining the playing field, presenting both challenges and exciting opportunities for those willing to adapt.

This is particularly pertinent to me as I'm in the process of growing a new venture in this space. Those of you who know me will already know I've done this twice before, with quite a bit of success.The FT article yesterday that PWC apparently "don't have enough work for their graduates" prompted quite a bit of debate in some of the meetings I took part in yesterday.

Let's take a quick snapshot across the usual newsrooms and get a sense of what the other big players in this space are up to:

So, why am I doing it again at the ripe old age of 59 and at a time when some of the established players are experiencing challenges? In one of my meetings this week, a colleague was absolutely adamant that I was mad.

"There isn't enough demand in the market due to economic uncertainties. If the big firms are struggling, then you have no chance as a small boutique."

I disagreed with his view. Here's why. Firstly, let's dissect the underlying issues one bit at a time.

Market Commentary:

It's important to consider these singular news items (eg the PWC one this week and the earlier EY partner layoffs) within a wider context of the consulting industry and current economic trends. Let's break it down, then take another look through my lens as to why now is precisely the right time for me to accelerate my latest venture.

Reasons for Challenges:

• Economic Slowdown: Rising interest rates, inflation, and potential recession fears are impacting business investment and consulting demand. (Source: McKinsey Global Institute, 2023)
• Shifting Client Needs: Clients are demanding more specialised, outcome-oriented solutions, challenging traditional consulting models. (Source: Harvard Business Review, 2023)
• Talent Acquisition and Retention: The industry faces intense competition for top talent, leading to higher costs and potential workforce instability. (Source: Accenture Talent & Human Capital Institute, 2022)
• Internal Restructuring: Larger firms are consolidating practices and streamlining operations, looking to reduce overhead and infrastructure costs, leading to some job cuts. (Source: Financial Times, 2023)

Implications:

• Job Market: Recent reports suggest potential hiring freezes or even layoffs in some firms. (Source: Bloomberg, 2023)
• Client Relationships: Building strong, collaborative partnerships with clients becomes even more important. (Source: McKinsey Quarterly, 2023)
• Industry Evolution: The consulting landscape is likely to shift, with new players emerging and established firms needing to adapt to survive. (Source: World Economic Forum, 2023)

Predictions and Forecasts:

• Differentiation Key: Consulting firms that adapt to changing client needs and offer specialised, tech-enabled solutions are likely to fare better. (Source: Gartner, 2023)
• M&A Activity: Consolidation within the industry might accelerate, with smaller, niche firms potentially becoming targets. (Source: Forbes, 2023)
• Focus on Innovation: Investment in digital solutions and new service offerings will be crucial for long-term growth. (Source: Deloitte Insights, 2023)

My analysis and interpretation:

The consulting industry is facing a period of significant change and uncertainty. The current economic climate, combined with evolving client expectations and technological advancements, is forcing firms to adapt their strategies and operations. This is leading to challenges like talent shortages, restructuring, and potential job cuts.

However, the future of the industry is not bleak. Firms that can successfully navigate these challenges by focusing on key areas like specialisation, innovation, and client collaboration are likely to emerge stronger. We can expect to see:

• Increased specialisation: Firms offering niche expertise and tailored solutions will be in high demand.
• Technology adoption: Digital solutions and data analytics will play an increasingly important role and integrated role.
• Agile and flexible models: Consulting firms will need to be more adaptable and responsive to client needs.
• Collaborative partnerships: Firms will work more closely with clients to achieve desired outcomes.
• Emergence of new players: Innovative startups and technology companies might disrupt the traditional landscape.

Overall, the global consultancy services market is undergoing a dynamic transformation. While challenges exist, there are also significant opportunities for those who can adapt and innovate.

The Power of Partnership

One thing I've been very clear on from the start of this venture is that we will get where we want to be by partnering with like-minded businesses. The first time I started a consultancy and advisory services business, I did it solo, bootstrapping my way towards some very strong growth and an eventual exit. While the trajectory of that business was good overall, I made far more mistakes than I made correct decisions.

Learning from past mistakes is the best education you can ever have in life, so, this time around, those mistakes, in effect, map our route forward.

We're partnering with larger, established players all the way. Yes, that means another set of heads around the board table and a larger stakeholder group to engage and manage, as well as ultimately sharing a large slice of the outcome with them when we hit our five-year milestones.

But it's the right call.

Why?

Let's consider that point as part of our overall plan.

We will mutually capitalise on our partnership:

• Leverage each other's expertise: Utilise their network, talent pool, and global reach to access clients and resources we might not be able to acquire independently, whilst in turn delivering new revenue streams and opportunities that they would not typically be able to serve.
• Combine your offerings: Tailor our consultancy services to complement our partner's resourcing strengths, offering clients a much more comprehensive, sustainable solution.

We will focus on specialisation and differentiation:

• We have identified our niche market: We won't try to be everything to everyone. In collaboration with our partners, we know where we're going and how we will "Solve, not sell".
• Clear value proposition: In collaboration with our partners, we can communicate how our combined services address specific client pain points and deliver tangible results.

We embrace innovation and agility:

• Incorporate technology: One of our partners is a technology firm. Working seamlessly, we can utilise data analytics, automation, and other digital tools to enhance our service delivery and efficiency.
• Adopt flexible engagement models: We don't have the huge, complex structures and overheads of the larger players, so we can offer clients a variety of pricing and engagement options, such as project-based, outcome-based, or retainer models.
• Stay up-to-date: Working with our channel partners, we are able to continuously monitor industry trends, client needs, and emerging technologies to adapt your offerings and remain competitive- and we can respond quickly.

Start with the End in Mind

This is a particularly important aspect, not just for me and the team as we embark on our rapid growth journey, but for any business. There is a saying that "Someone without a goal usually hits it".

We have a clear vision and ambition. This is a five-year plan to deliver exceptional, client-based outcomes through collaboration, partnership and innovation. If we acheive even a fraction of the success we anticipate, we'll be sitting pretty in 5 years.