| | By Mick James
The more consulting firms I talk to, the more variety I find in terms of business models and service offerings. When you look at the companies that have consultancy subsidiaries, the mix becomes even wilder: one firm might do your books, another will empty your bins.
When it comes to recruitment, there's not so much variety. Over and over again I hear the same demand: we want experienced consultants with deep content knowledge. And as the well runs dry, it's increasingly the content knowledge that is sought over and above the consultancy background.
Nowadays nearly everyone extols what they call the "diamond model" over the "traditional pyramid". The very use of the word "pyramid" conjures up the negative associations of pyramid-selling, of deeply hierarchical organisations consisting of a mass of drones with a few evil geniuses at the top. It also evokes one of the perennial images of consultant-bashing: the arrogant and ignorant twenty-something riding roughshod over the loyal and experienced workforce.
The diamond model offers, by contrast, a thick middle tier of | |
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Creative, innovative thought is something that the young have something of an advantage in. The great mathematicians and physicists, for example, often do most of their best work in their 20s. We talk a lot about ageism these days, but tend to forget it works both ways. Dismissal of the young as "wet behind the ears" is as offensive in its way as assuming the old are worn out and useless.
That’s not to say that the old pyramid model of the 1990s didn't have some pretty serious drawbacks. There was a lot of serious criticism about the way consultancies tended to deploy great armies of consultants on enormous day-rates, often doing quite low-level work. But nowadays clients are – or at least should be – better prepared. There should be no need to pay junior consultants to do basic information or preparatory work and clients should also be demanding the opportunity and knowledge transfer to carry out a lot of basic implementation themselves.
But the sword cuts both ways – if a consultancy doesn't have squads of eager youths doing the residual low-level work then who is? Clients have been | |
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| | pretty good at using procurement to keep fee rates down, even during the present consultancy boom. One answer to this is to deploy only consultants who can justify higher fee rates by virtue of their seniority. That doesn't mean that all the work they will be doing requires that experience or justifies that rate. This is bad for clients but arguably worse for the consultants concerned. It also plays to another client weakness. Once they find a consultant they know and trust, they want to use them for everything – they'll happily take a Sabatier knife to the sardine tin.
So it's time for the profession to open itself up to youth again. Encouragingly, there are signs that this is happening, and often it's the smaller consultancies who are leading the way, making their principals' time (and clients' money) go further while creating a valuable future asset for their firm. Experience is great, but for every one who's learned something the hard way, thousands can get it the easy way through knowledge transfer.
I'm not saying we should restart the great consultant factories we had in the past – that's probably impossible | |
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| | anyway. And I can understand the reluctance to train in such a skills-hungry recruitment market. But we need to think about what's happening to those extremely bright people – the real diamonds – who would normally have been brought into the profession by milk-rounds and the like. They're probably even now suffering the usual graduate-scheme come-down, grappling with the great issues of philosophy one day, counting pencils in the storeroom the next, wasting some of the most potentially creative periods of their lives. One of the great appeals of consultancy to a graduate is that it offers not just variety and continued learning opportunities but a chance to be involved in real, hands-on stuff at a very early stage. The consultancy industry is full of people who took that opportunity in the past and rode it to the very top of the profession. Let's make sure we don't miss out on the potential of the current generation.
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