Enterprises in the management consulting industry must take heed, for what lies beyond 2017 will be dire.
Seriously, though, consulting services need to be aware of what’s in store in the near future. Especially now that rapid technological and management-related changes are becoming more evident, the least that these enterprises can do is to be left in the dark.
It is interesting to point out that the industry itself has experienced considerable growth in recent years (particularly in the good old UK), but it is also important to highlight the possible challenges that major players in the consulting industry will have to address.
To be sure, an article by Consultancy.uk has outlined these challenges against an optimistic backdrop.
Referencing a study published by Source Global Research, the article points out that the consultancy industry has grown “almost four times faster than the economy in 2015, up 8.2% from £6.02 billion to £6.79 billion.” It also mentions positive figures for counterparts in the US, which saw “good growth in 2015, growing at a healthy 7.7% to reach almost $55 billion (£45 billion).”
The trend has also been noted elsewhere in the world. So, why should firms worry? It’s not as if the market is about the crunch?
That possibility might seem a little farfetched, but much of the challenges that consulting firms involve mainly adapting to the demands of fast-paced innovations within the larger business culture.
To sum it up, Consultancy.uk has outlined key challenges that are worth noting: Adopting digital strategies, accessing competent talent pools, and securing sustainable business models that ensure not only profitability but also survivability.
First of all, there is a need for consulting companies to make full use of digital channels. This has to be thinking along the lines of brand building and marketing and should also focus on addressing the ever-changing dynamics of the consultancy market. Such demands for higher adaptability have eventually brought about relative increases in marketing expenses. The trend has been observed across all B2B-related sectors, with a large bulk of marketing budgets going mostly towards multi-channel marketing efforts.
This would only confirm one important observation: that consultancy services need to outline greater and more sustained client engagements. Without a doubt, this would require enterprises to invest in efficient digital marketing infrastructure and a strategy for acquiring qualified consulting leads.
Aside from rapid changes in technological tools, consultancy firms need to underscore new operational paradigms to better engage these innovations.
From a pragmatic standpoint, this would entail looking at current trends. What can firms do to maintain a firm footing?
At present, most firms are engaged mainly in forming crucial partnerships with companies outside the consultancy industry. We will be seeing more intermarket connectedness in the coming years as consultancy firms need to position themselves outside the market itself.
Related: Consulting Firms, Listen Up: Do You Have these Staples in your Marketing Strategy?
Appropriately, industry events have become the right avenues for extending a company’s influence. Trade shows and conferences do not only offer opportunities for knowledge sharing. In fact, they also function to offer brands to rub elbows and forge potentially extensive partnerships.
Related: How to get Tangible ROI in Joining Events
An even more crucial issue is the fact that companies have changed the way they hire talents for their pools of experts. The trend right now has shifted more from looking at the academic as well as professional backgrounds, to actually identifying skill sets as they are applied. Most consultancy firms right now would bet their bottom dollar on professionals who really have the guns – and by that, actual competence. The influence of one’s academic background has diminished and is no longer a gauge for actual competency. What matters the most is whether such an individual is already equipped with the right mindset to provide consultancy firms the expertise they need to deliver. Of course, this remains to be a challenge as there is a dearth of talents that do have such real-world competencies.
Apparently, these are issues that shouldn’t be ignored. Consultancy services need to develop better strategies to address the need for better digital integration and to iron out the creases in management.
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