Episode F.008 The New World of Consulting

The old business model for management consulting was straightforward, the model simple: loaning an industry or subject matter expert to solve problems a client cannot solve, or chooses not to tackle themselves. 

The new consulting model moves from billable hours to business results. The benefit for clients is clear if they will take on the additional work. No longer can they offload the responsibility for implementation to the consultant or the consulting organization. 

The reason that most consulting firms are reluctant to make the shift is exposing their proprietary “black box”. The old model allowed consulting firms to use the perception of voodoo or special sauce to justify high fees and long duration projects. Now their methods are transparent and subject to scrutiny and imitation.
The reason for the slow acceptance by clients is consulting projects are beyond their ability to staff it competently. They don’t have the brains (experts) or hands (resources) to do it,  plus there will be nobody to blame when it fails or doesn’t produce the promised results. 

This new approach means consultants and consulting companies will differentiate themselves with intellectual property and package (productize) it into technology. It requires less customization and human intervention than the traditional model meaning lower expenses. It is also customer-centric; not only are the customers able to enjoy lower prices but storing their data in the right platform makes it easier to maintain when the consultants leave. New technology and big data analytics will deliver value faster and cheaper than any consulting company ever could. 

All of this provides the opportunity to finally bring large corporate expertise to small businesses, including startups. Are you ready for the challenge?

Questions to Ask Yourself:

• Which of the 6 Consulting Practices and the associates domains do you have the knowledge, experience, and certifications to build a company?
• Have you mapped the consulting process for each selected domain to determine the knowledge transferred to the client?
• Have you converted what you know to a tangible asset?
• Have you patented, trademarked, or protected your IP?
• Have you created both standalone and bundled IP solutions?
• Have you created a sales ladder for each of the IP solutions?