The Role of Management Consulting | 6 AM Pacific
The above is an intelligent piece of analysis. There are 2 very important pieces.
It is widely known that MC (Management Consulting) firms works closely with the companies and clients. This way they bring a lot of information from industry to the companies, but at the same time, they take out a lot of information (read secrets). Its for the companies to analyse whether there are on the winning end of this balance.
http://www.ft.com/cms/s/0/144e6728-4a87-11e0-82ab-00144feab49a.html#axzz1GFw13xEE
Secondly, MC provide core strategies to the businesses. This marks a big question on those businesses themselves and more so on their leaders. If some company hires an MC, it has surrendered to its useless leadership and accepted external help. The big question is what kind of future, the company holds with such leadership. No wonder why so many company failed to implement or achieve what MC has professed in their glossy PPT's. Even there is a growing outcry against MC's by companies such as Coco-Cola, GE, Arcelor Mittal etc.
But I want to add something here. Actually, MC's are really good but only if they are used as a tool. Having myself worked in MC, I can tell you MC can be helpful, but only if there is a strong leadership at the company to monitor an Consulting Engagement.
My German friend told me that 2 biggest reasons for success of Germany vis-a-vis other western world is
1. Board seat for Employee representatives (which no MC will advise for)
2. Never hire MC's (though they hire lot of Process Consulting firms and Technology Consulting firms)
