The Echo Chamber Effect: How Traditional Consulting Fails Modern Enterprises

Isn't it baffling that some organizations, flush with cash and expert guidance, just can't seem to escape the clutches of mediocrity? Why is it that stifling stakeholder expectations, perpetual problems, and unmet ESG obligations linger quarter over quarter?

If your board room feels more like an echo chamber than a think tank, I’m talking to you.

In the fast-paced landscape of digital transformation, companies are often enticed by the idea of partnering with major agencies. While there are a lot of reasons this may seem like a fail-safe strategy, there are a lot of non-obvious nuances beneath the surface that can thwart even the most well-intentioned corporate consultant.?

I’ll go out on a limb here to suggest that enterprise-sized consulting agencies are actually poorly-suited to counsel enterprise-sized clients.

You can’t challenge the status quo by doubling down on the same kind of thinking.?That's why startups and agile consulting agencies are often better partners for corporations than…other corporations. But before we dive into that, let's explore why these “major label” consultancies often fall short, starting with the pitfalls of tunnel vision.

Why Tunnel Vision is a One-Way Ticket to Mediocrity

Perhaps the most obvious risk in partnering with large agencies is their tunnel vision when diagnosing problems and suggesting solutions. We’re talking about the approach (I’ll get into delivery, later).

Relying on established formulas for assessing organizational needs offers a brilliantly scalable model. However, while formulas may have yielded success in the past, they can lack adaptability. But I get it. In Silicon Valley, the integrity of your operating practices with your recommendations is called "eating your own dog food." It’s important to “eat your own dog food” so of course a corporate consulting firm would want to create scalability in their operations.

But just mentioning Silicon Valley these days brings to mind the cautionary tale of Silicon Valley Bank. Here's the kicker: this epic failure shows how a one-size-fits-all approach can totally miss the boat on your unique challenges, leading you down the path of strategic blunders.

SVB received consulting for years and a clean bill of health from a major corporate consulting firm (you know who they are) just before facing significant financial challenges and going bottom’s up.

The excuse offered by the firm was that SVB had hired them to analyze a specific element, not to do a "comprehensive assessment." Despite The US Federal Reserve calling their recommendations "weak" the consultant's accountability ended there.

The bottom line?

Albeit nuanced, there are completely different value systems at play between being focused and putting up blinders. Being focused involves intentional concentration on a specific goal with an openness to adapt, while putting up blinders results in a narrow view that excludes potentially valuable perspectives and opportunities.?

Trusting the process is important, yes.

But, what's more important is stewardship in assessing the holistic health of your organization's value chain. Values are important, and I’m not just talking about a statement on the company website. I mean, the values reflected in daily operations.?

The Illusion of Expertise: Unpacking Prescriptive Rigidity

Moving on from the approach, is their delivery. It’s not uncommon for a consultant to start solution-finding based on what they can offer, instead of beginning and prioritizing specific business objectives.?

This? isn't problem-solving; it's problem-creating. And it’s an adage that dates back to early philosophy.

“When you’re a hammer everything looks like a nail.”

I call this “hammer” method “prescriptive rigidity.” Despite all of the syllables, it’s a pretty straightforward pitfall. In short, it works to the advantage of major agencies to push cookie-cutter, one-size-fits-all solutions onto their clients. When you’re working with hundreds (or thousands) of clients, off-the-shelf strategies are essential for scalability but they often leave competitors duking it out on the same, tired battlefield.

Why?

Because they're recycling the same tools instead of offering an actual innovation strategy.

Prescriptive rigidity manifests in various ways, from biases to leverage corporate partners to outright solutionism—where a problem is forced into a predetermined solution. This only works to level the playing field, getting you back to where you started, instead of positioning anyone to lead the charge.

Think of it like this.

Consider the multi-use marvel that is Dr. Bronner's Soap. Sure, castile soap is eco-friendly and can seemingly do it all—wash your dog, wash your fruit, and even brush your teeth.

But, let's be real: just because you can brush your teeth with it, doesn't mean you should (...or that you actually want to). This is what I mean by “one-size-fits-all” approach.

Similarly, when you’re working with a major consulting corporation they have a particular prescribed advisory toolbox and set of skills that they can use to resolve business constraints.

They’re like castile soap – a true jack-of-all-trades but master of none.

Thus, more often than not, what you end up with is a diluted strategy that fails to give you any true competitive edge. (It doesn’t matter how much you use, you’re never really going to get a nice foamy lather.)

Look instead for a team that offers the agility to investigate solutions based on your priorities, instead of the other way around.

Why Familiarity is Not Your Friend in Business Strategy

While this isn't a platform for a debate on diversity, we have to go there, so stay with me.

Comfort often masquerades as risk mitigation. That’s why there's a systemic tendency to partner with, hire, and promote individuals who echo our own perspectives and backgrounds.?This is a well-documented sociological phenomenon.?

Working within the realm of familiarity feels instinctual. It feels comfortable. It feels safer. And what’s more, it feels like an easy sell when you really need internal buy-in.

Unfortunately, seeking the comfort in familiarity may feel less risky but it's a dangerous red herring. Working with people who look, walk, talk, and act like you can actually hinder your company's growth and adaptability.

It restricts the range of ideas and solutions available.

Data clearly shows that diversity of perspective tends to produce more innovative solutions and better business outcomes. That’s why it (literally) pays to consider consulting partners that offer a fresh approach. Maybe even ones that make you a little uncomfortable; after all, that’s where the growth happens.

Rethinking the Rulebook

Inviting an insider into the room is a big risk but it can open the door to transformative opportunities that redefine your competitive edge.

I won’t ever argue with that.

Furthermore, change is hard. It's even harder when you're navigating a complex, rapidly evolving marketplace.?But here's the deal: standing still is not an option.

Whether it’s everyday AI (artificial intelligence) or just changes in your customers’ expectations, the world is charging forward, whether you like it or not.?

The good news?

You don't have to go it alone. Imagine walking this transformative journey with someone who's been down this road before—someone who brings not just spreadsheets and pie charts, but a fresh perspective and a tailored strategy designed just for you.

Here's where I pitch my company to you...but I just can't.

Clearly, I'm a little jaded about the cockamamie advice handed out in the name of digital transformation. That's why I started a company and partnered up with some like minded folks who I respect.

But, you and me?

We're still strangers. Reminds me of a quote from one of my favorite Tarantino films, "Everyone starts out as strangers (Ted). It's where we end up that counts."

So, if you're itching for a fresh take or perhaps just a sprinkle of panache to shake up your workweek, DM me and let's chat.

No strings, no pitch, and no kid gloves — just some good old fashioned sharing of war stories, and/or a little friendly lamentation about the current state of things. Whaddaya say?