Your Competitors Aren’t Chasing Rates—That’s Why They’re Getting Better Consulting Outcomes
Niklas Scipio
xBCG ? Independent Strategy & Transformation Professional for Business Leaders and Private Equity Investors ? Expert for Digital & Tech Value Acceleration ? Activist Project & Program Management
Author: Niklas Scipio - Scipio & Partners
As a freelance strategy consultant, I’ve had countless discussions with clients who express frustration over the perceived lack of value they get from the consultants they hired.
They just come and drink coffee
They don't know about our business - they basically work the same hours as our full time employees - i don't know what the value is
The partner of the consulting firm we work with just comes once per month and doesn't really know what is going on with the engagement
The promised us two senior managers - we only got two senior managers both working part time
They promised us XYZ in the proposal but we didn't get it - we constantly need to keep track of the deliverables
They seem to be really arrogant and think they know things better
They charge more hours then they actually worked
I don't see the return on the investment
After diving deeper into their procurement processes, a common pattern emerges: there’s often an overwhelming focus on cost from the start. This approach can backfire, especially in management consulting, where the real value isn’t always directly tied to the number on the invoice.
It’s tempting to ask a freelancer or consulting firm for their hourly or day rate right out of the gate, and on the surface, it makes sense. Clients often come into these conversations with a dedicated budget in mind, and naturally, they want to know if the freelancer’s rate fits that budget. However, this upfront focus on cost can lead to mismatches that put both parties in an awkward position. More often than not, when professionals share their rate early in the conversation, clients respond by saying they can’t afford it. This dynamic not only wastes time but also misses the bigger picture.
From my experience, and there’s no right or wrong here, it’s better to approach the conversation differently. Instead of asking for a set rate upfront, consider offering a range based on the scope of the work. If it’s a longer-term assignment, which often spans multiple days or even months, negotiating a project fee based on deliverables and value can be far more effective. The goal should be to align expectations around the value created, not just the cost per hour or day.
I’ve also noticed that clients who focus too much on cost early on often miss out on the expertise and cultural fit of the advisor that could deliver the highest return on their consulting investment. When procurement becomes all about getting the lowest rate, the consultant’s ability to bring strategic insights and drive real business outcomes tends to get overlooked. It’s crucial to understand that in management consulting, especially for longer engagements, the value delivered goes far beyond an hourly rate.
I’ve had clients tell me they were disappointed with past consulting engagements because they felt the results didn’t justify the fee. But when we go back and look at how the procurement was handled, the problem often traces back to the initial conversations. Cost and CV beauty contests were prioritized, and the broader strategic goals were sidelined.
CV beauty contest = How close a professional can match the actual job description on paper (which doesn't indicate a good consultant-project fit at all in most cases - exception: highly technical consulting assignments ... but still here are factors that are value drivers that you can't assess via the CV)
Ultimately, I think the question of whether or not to ask freelancers for their rate upfront comes down to how you want to approach the relationship. If the focus is solely on finding the lowest bidder, the conversation will be transactional, and the results will likely reflect that. But if the goal is to maximize the value of the engagement and focus on long-term impact, shifting the conversation to value from the start leads to better outcomes.
This isn’t to say that cost doesn’t matter—it absolutely does. But viewing consulting as an investment in outcomes, rather than a simple cost to manage, changes the dynamic and ultimately delivers more value.
Should I hire a freelancer or a consulting firm for my project?
When it comes to procuring management consulting services, it's important to distinguish between hiring freelance consultants versus bringing in a team from a larger consulting firm. Both approaches offer unique advantages, but they also come with specific challenges that need to be considered to maximize value and avoid common pitfalls.
For freelancers, one of the biggest benefits is flexibility. Freelancers can provide deep expertise in a niche area and tend to have lower overhead costs than consulting firms, which often makes them more cost-effective for focused, specialized work. However, procurement teams often get caught up in trying to pin down hourly or day rates, which, as I mentioned earlier, can overshadow the actual value the consultant will bring. Freelancers can be agile, but this agility often comes with the expectation of a flexible approach to pricing and deliverables.
In team-based engagements, particularly from top-tier consulting firms, you're usually paying for more than just expertise—you’re also paying for the structured methodologies, extensive resources, back office services (usage of expert networks, visual services, research & knowledge services) and cross-functional teams that larger firms can deploy. The procurement process here should focus not just on cost but on understanding how the consultant team will integrate into your organization and which value-added back offices services might accelerate insights and transformation outcomes the best. Success in these projects often comes from the alignment of both parties early on, especially when defining roles, deliverables, and how knowledge transfer will happen within your organization.
A best practice I’ve observed is ensuring you strike the right balance between procurement focusing on cost control and fostering the collaborative environment necessary for successful consulting engagements. This means not falling into the trap of over-negotiating rates to the point where you lose out on potential value. When procuring teams from larger firms, the emphasis should be on the team’s ability to address your organization's challenges holistically, not on how much you can drive down their day rates.
Finally, whether you're hiring a freelancer or a consulting team, the real measure of success is value delivered, not the initial cost. Aligning your procurement strategy to focus on outcomes and collaborative engagement, rather than just pricing, will give you a much better return on your consulting investment.
Should I hire a top-tier strategy consulting firm or a mid-level consulting firm?
When deciding whether to hire a top-tier strategy consulting firm, a mid-level management consulting firm, or a freelancer, it's essential to understand what you're truly paying for in each scenario. The day rate is more than just a figure; it's a reflection of the experience, expertise, and resources that come with the service.
Elite Strategy Consulting Firms
When engaging a global elite consulting firm the day rate often reflects not just the time spent on your project but also the wealth of intellectual property, refined methodologies, and access to global insights they bring. These firms have a proven track record of advising CEOs and senior leadership teams on complex, high-stakes business challenges. Their teams are well-versed in industry-leading frameworks, top-down strategic analysis, and can easily switch between granular operational details and high-level strategic vision—what I often call the "elevator talk" skillset. You’re paying for their ability to structure and drive significant transformation efforts, often involving multiple layers of the organization, and their ability to provide solutions that align with broader business outcomes. The investment is high, but the value comes in their ability to navigate complex, cross-functional environments with a high level of senior stakeholder interaction.
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Mid-Level Management Consulting Firms
In contrast, mid-tier management consulting firms, while still highly capable, usually provide more specialized services, focusing on specific industries or functional expertise. The day rates here are lower, but the scope of their work tends to be narrower. While they may have solid frameworks and methodologies, these firms might not possess the same broad C-level experience that elite firms do. They often excel in domain-specific projects—such as operational improvements, IT implementation, or sector-specific optimization. Their strength lies in delivering focused results efficiently, but they may lack the broader strategic capabilities required for larger, more complex transformations that require buy-in at the highest levels of the organization.
Freelancers
When hiring freelancers, the day rate can vary dramatically depending on their background. Freelancers who are alumni of top-tier strategy consulting firms bring a unique value proposition: they carry with them the frameworks, methodologies, and problem-solving approaches honed at elite firms. Essentially, they provide much of the same strategic insight as their former employers but at a more flexible and often more cost-effective rate. They’re typically able to engage with C-level executives comfortably and can bridge the gap between strategy and execution, making them ideal for projects that need both high-level guidance and operational oversight without the overhead of a large firm.
On the other hand, freelancers with strong domain expertise—for instance, someone who has spent their career in a niche consulting firm—often provide depth in a particular field but might lack the broader strategic vision that’s essential for engaging with senior executives. Their strength lies in their ability to dive deeply into specific problems and deliver highly technical or specialized solutions, but they might not have the same level of “elevator talk” proficiency to engage on a broad strategic level with the C-suite. For mid-level projects or those requiring focused expertise, they can deliver strong results without the added cost of broader strategic advisory.
Whom to Hire for Which Role
In the end, the key is matching the complexity and scope of your project with the right level of expertise, ensuring that your investment aligns with the value you expect to receive.
Example for Procurment Strategies in context of System Transformation
Top-Tier Consulting Firm Project Manager (Mission-Critical System Transformations)
Imagine your company is about to undergo a large-scale system transformation, such as integrating a new enterprise resource planning (ERP) system or overhauling core business platforms that impact multiple divisions globally. A project manager from a top-tier consulting firm brings a wealth of experience, not just in project execution, but in strategic alignment and managing mission-critical projects that have a lasting impact on the business.
For example, they are trained to look beyond the technical scope and ensure that the project ties into your company’s long-term objectives, such as improving scalability, enhancing customer experiences, or positioning your company for market expansion. These project managers are adept at working with senior leadership and can communicate complex technical changes in ways that make sense to executives. They also bring methodologies and business support services—like dedicated risk management teams, communication frameworks, and change management experts—that ensure the project is de-risked at every stage and any potential disruptions are identified early.
These project managers are ideal for:
Mid-Tier Consulting Firm Project Manager (Focused on Operational Delivery)
Now, consider a project manager from a mid-tier consulting firm. Their strengths lie in operational execution and ensuring that the project is delivered on time and within budget. If you are implementing a system that will impact just one or two functions—such as HR or finance—this project manager will focus heavily on keeping the project on track, coordinating teams, and resolving day-to-day issues.
While they are excellent at managing technical complexities, their involvement typically stops at ensuring the technical rollout is successful. They might not have the same ability to engage with senior leadership on strategic decisions, or tie the project back to broader organizational goals in the way a top-tier firm’s project manager would. Additionally, their access to specialized business support services, like dedicated risk teams or communication frameworks, is often more limited.
Mid-tier project managers are ideal for:
Independent Freelancer (Alumni of Top-Tier Firms)
Now, let’s consider a freelancer who previously worked for a top-tier consulting firm. These individuals often bring the same strategic mindset as a project manager from a top-tier firm, but with the added benefit of flexibility and cost-effectiveness. They typically carry with them a wealth of knowledge and methodologies from their previous experience, meaning they can deliver the same high-quality strategic oversight without the overhead of a large team.
For example, a freelancer with this background would be perfect for mid-sized system transformation projects where you still need someone who can engage with executives, manage multiple stakeholders, and ensure alignment with business goals, but without the need for an entire consulting firm. They offer a hybrid of strategic insight and hands-on execution, making them highly effective in driving business outcomes while remaining flexible enough to adapt to the evolving needs of the project.
Freelancers are ideal for
The choice depends on the complexity and strategic importance of the project. If it’s a mission-critical system transformation that impacts your entire organization, a top-tier project manager is the best fit.
For operational system rollouts, a mid-tier firm provides cost-effective, reliable delivery.
And if you need strategic expertise with the agility of a freelancer, hiring an independent consultant with a top-tier background offers the best of both worlds.
Are you procuring consulting services valued at over 600k USD per year?
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