3 new consulting business models: collaborative, continuous, and instant

3 new consulting business models: collaborative, continuous, and instant

Like most industries, management consulting businesses have seen their fair share of disruption. But nowhere is this more evident than in the way consulting firms operate. For the most part, consulting firms typically work with clients in a pyramid model. 

Senior partners at the top manage the relationship, with little to no involvement once the engagement has been won. Then junior consultants take the next step to both strategize and execute the initiative on behalf of the client. 

But as client expectations and behavior change. Many consulting firms are realizing that this typical business model simply doesn’t align with today's reality.  

Based on research by Sioo, a Dutch inter-university center for agile change management and organizational processes, the traditional management consulting model of relying on junior consultants, conducting lengthy research projects, and focusing on strategic advice is not a good fit for today’s client requirements. 

In fact, 59% of Sioo's consulting survey respondents agreed that their business models would have to change to remain competitive. And it makes sense. 

Consulting clients today want faster results, more sophisticated solutions, and services that leverage information technology to inform and improve the entire process. In turn, consultants are also being asked to do far more than provide strategic advice.

For example, many consultants are also involved with their clients in non-advisory roles and projects, including execution, implementation, and interim leadership.

As a result, these trends are driving significant changes in consulting business models, where strategy consultants are focused more and more on 

  • Specialized consulting services
  • Specific market segments
  • Faster client impact 
  • Collaborating with other consultancies.

 In doing so, it enables consulting firms to gain a competitive advantage. 

So how exactly is the way business consulting firms operate being changed? Sioo’s research revealed three new consulting business models that appear to be emerging. Let’s take a closer look at what they are. 

3 Types of New Consulting Business Models That Are Emerging 

1. Collaborative Consulting

Collaborative consulting involves multiple consultancies working together to meet client needs. Often this includes a network of firms that repeatedly collaborates on projects by combining expertise, information technology, digital tools, and shared knowledge to deliver value to clients.

Different network partners may team up for specific projects, and they may enter or leave the project as needed. Ultimately, by connecting and working together, firms can access a broader knowledge set, create greater flexibility to meet changing client demands, and generate faster value and results.

On-demand talent acquisition platforms like Graphite have also played a role in this emerging business model. Our network of independent consultants allows firms to extend their networking and collaboration beyond working with other consultancies. They can find and hire global experts in particular markets or subjects, enabling them to provide specialized insights and services as well as hands-on execution and leadership for their clients. 

Check out this blog to learn more about why consulting firms are increasingly using the independent workforce to drive growth.

2. Continuous Consulting

Another emerging consulting business model is continuous consulting, which centers on data analytics and subscriptions. McKinsey is pioneering some of the innovation in this area with its McKinsey Solutions service offering.

McKinsey Solutions combines the firm’s industry and functional expertise with data analytics, advanced technology, and proprietary data to deliver ongoing solutions that clients can use every day. These include solutions for benchmarking, diagnostics and analytics in pricing, organizational structure, lean operations, corporate performance, and much more.

The idea behind continuous consulting is to create ongoing value for clients and generate ongoing income through subscription-based services and recurring revenues. By combining the firm’s expertise and strategic insights with big data, new tools, and processes, consultancies can get out of the realm of one-time income and one-off projects and into a new evergreen model that produces positive results for the firm and its clients.

3. Instant Consulting

The final new business model is instant consulting, where it’s all about delivering value to clients from day one or in the shortest time possible. Often this involves strategic advising, execution, and implementation. Under this business model, consultants jump into a project and provide insights and hands-on services without requiring extensive research in advance.

Instant consulting delivers on client needs for faster value and results and often goes hand-in-hand with specialized industry or subject matter expertise. 

For example, a consulting firm might have a client who needs to turn a strategic vision into an action plan and needs a resource with industry-specific experience who can develop and execute it. Or, a client might be looking for an experienced financial expert who can help the company establish better accounting practices, processes, and reporting.

Use cases such as these are often an excellent fit for instant consulting, where consultants can get to work immediately and apply their expertise, skills, and experience without the usual wait for a long-term research project and subsequent recommendations.

What These New Business Models Mean for the Future of Consulting

These new business models are certainly on the rise, and we’ve seen several variations of them on Graphite. As disruption continues to impact how and where we work, we predict that the use of these business models will increase as consulting firms see the strategic value in them. 

That means we will likely see a greater impact by these new models in the years ahead, or we can at least expect to see further significant changes in the industry generally. Either way, we’re already in a world where consulting business-as-usual is not what clients are seeking.

Interested in learning how you can optimize your workforce to better align with your business model? Download our Ultimate Workforce Optimization Guide to learn more. 

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