Why the Consulting model needs a shift toward Regeneration

Across industries, the message is the same: the market is tight. Deals are harder to close, and companies are hesitant to commit. This widespread uncertainty reflects both the challenging political climate in France and the complexity of the international landscape. Among those affected, many are consultants, and their struggles reveal underlying weaknesses in traditional business models.

At the root of the issue lies the widespread reliance on the?Daily Rate?model. This approach is not only outdated; it’s fundamentally misaligned with the true purpose of consulting.

The problem with the?Daily Rate?model

The?Daily Rate?model reduces consulting to a transactional exchange: businesses hire experts to solve specific problems, paying a set fee based on their perceived value, much like purchasing a commodity. This mechanistic view assumes that organizations function like machines, where external expertise "fixes" broken parts.

This approach is deeply utilitarian. It prioritizes time over transformation, and solutions over the development of internal capacities. As long as this mindset prevails, meaningful change will remain out of reach.

Rethinking the role of consultants

Consultants should not be paid simply to provide answers that businesses cannot find on their own. The true essence of consulting lies in enabling organizations to uncover and implement their own solutions. Real value comes not from delivering answers but from fostering growth, self-reliance, and resilience.

This is where regenerative practices offer a transformative alternative. Regeneration focuses on creating the conditions for continuous evolution. It’s about forming a connection, an “essence-to-essence” relationship, between the supporting and receiving organizations. Both parties co-evolve, growing together:?“I grow, you grow, we grow.”

The?Daily Rate?model, which commodifies time, cannot sustain this kind of transformation. The focus must shift from buying time to building capacity and co-evolving for mutual benefit.

The dangers of short-term thinking

A friend of mine, a business developer on a fixed-term contract, once asked his manager about transitioning to a permanent position. The response was blunt:?“How much do you cost, and how much do you bring in?”?If his numbers didn’t add up, his future at the company was in question.

This transactional mindset is common in companies under financial pressure. Employees’ futures are reduced to a cold equation: costs versus revenue. While this approach may seem efficient in the short term, it ultimately undermines the organization’s vitality and long-term viability.

Sustainability cannot be built on spreadsheets alone. It relies on the quality of relationships among stakeholders, employees, suppliers, and customers, and on the level of awareness with which the business operates. These factors determine whether an organization can truly fulfill its role in the world.

Lessons from my personal experience

I’ve witnessed the devastating effects of short-term thinking firsthand. In one of my previous companies, new ownership prioritized quarterly financial results above all else. They stopped paying suppliers and, for those they did pay, demanded steep discounts, even on completed projects.

The consequences were heartbreaking. I sat across from suppliers in tears, knowing their businesses were about to collapse because of these decisions. Millions of euros were at stake, but the human and relational costs were immeasurable. This experience was one of the reasons I chose to leave the company.

As long as businesses are valued solely by their profit and loss statements, short-term gains will continue to overshadow long-term sustainability. While there are emerging efforts to assign financial value to indirect impacts, these remain marginal in today’s systems.

Regeneration: A long-term perspective

Regenerative approaches stand in stark contrast to short-termism. By nature, they require patience, collaboration, and long-term investment. They emphasize building capacity over time, enabling organizations to grow sustainably alongside their partners.

However, the regenerative mindset faces a key challenge: the “horizon dilemma.” Financial systems are typically structured around quarterly cycles, making it difficult to recognize the value of long-term investments. True change will require financial systems to evolve, rewarding efforts that generate lasting value instead of immediate returns.

A call for change

The way forward is clear. We need to move beyond the outdated?Daily Rate?model and short-term profitability metrics. Regeneration offers a new paradigm, one that prioritizes relationships, growth, and long-term co-evolution.

This shift is not just about transforming consulting. It’s about redefining how we value businesses, how we measure success, and how we approach growth. Only then can we create organizations that are not just profitable, but vital, sustainable, and capable of fulfilling their unique role in the world.