Given the increasing pace of change in technology, economic disruption, management practices, social and generational expectations, and globalization, would you say change in consulting is evolutionary or revolutionary?
Good question, but it deserves the typical consultant's answer: it depends. You are on point that there are many consulting markets undergoing, or about to undergo, dramatic changes. Anything related to public services, the largest vertical for management consulting, is about to change in a big way. Uncertainty over revenue sources, planned cuts in services and evolving concepts of the role of government mean traditional public sector services, and the consulting services that support them, are changing. High demand services will continue to be provided but in different ways and possibly by the nonprofit or private sectors. Consultant agility in serving this transformation should be high on your marketing research agenda.
One good example is the advent of social impact bonds (SIB) as a financing mechanism for government services delivery. Started in 2011 as a $100 million federal pilot program, this could grow quickly to provide tremendous opportunity (and disruption) for consultants in areas of service delivery, finance, evaluation and program/project management. Instead of a traditional government program paying for delivery of services, an SIB is issued to a group of investors to provide specific service outcomes (e.g., reduction of veteran unemployment rate of 2.5% over 4 years). If the outcomes are achieved, the government pays the bond holders; if the targets are not met, investors get nothing. Taxpayers only pay for performance, not effort. If you are a consultant in the public sector or can advise efficient providers of these services, then you may either be losing a market or gaining a whole new service line.Tip:
Some consulting services will be slow and steady in serving clients much as they have for decades. However, disruptions in business generate corresponding disruptions in consulting. If you'd like to know more about social impact bonds, look at a short paper from the Center for American Progress
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