People and journalists believe that there are witches in black magic, scam artists in politics and business and then there are Management Consultants in the field of “just” giving an advice.
Management consulting was a domain initiated to help the organisations facing a problem or having stagnation in its operations to find an “out-of-the-box” solution. There were many advantages which came along with the said method used by organisations, like an external view to an internal problem, no emotional attachment to the things which are actually not jellying with the organisation, but then there is a question that is it so difficult a job to have such high fees?
Top management consulting usually pay by hour at the rate of $150 per hour of service and the employees or the “top consultant” are paid as close as $30000 per month. Is it all worth it?
If you are a MNC working to be the best in the world in your domain, then you might not even think about paying $1000 per hour to the consulting firms if you are getting something worthwhile as an advice which would help you to make profits and shape your organisation in such a way that the same “advice” could benefit the organisation for the next 100 years.
It all comes down to “Is it worth all the money?”
Management Consulting was a concept which was used mostly by the international MNCs and the concept has arrived in India in the past 5-10 years only. Internationally the firms like McKinsey and PWC have been leading the domain of management consulting with their services. The services offered are mostly the same like the secondary and primary research with analytics to find a domain or an idea which the organisation want to implement; or finding a solution to the problem faced by the organisation and the organisation is not being able to find the solution and want s external help to either save time and efforts and also to have an external view to the same problem and have unique solutions with the help of possible solving the similar type of problem in some other MNC. That is the plus point of consulting firms that they bring with them the experience in “problem solving”. Considering the fact of a new idea, it is not something which would be difficult for the top organisations to do on their own if they interact with their customers, maybe consumers or businesses they interact with; but still consulting is on the rise and also the fees charged by the consulting firms are on a high.
Indians have been known as experts in giving advice for free, as someone has rightly said that Indians are the best in self medication and often the wrong ones; and if they can charge for that advice, well and good.
The result of the growing trend of consulting internationally has caught the attention of the Indian counterparts. Many of the people have began to think that they can be consultant, and what is proving to be a plus point for them is that in India there are many Small and Medium Scale Enterprises and they are not in a position or not willing to hire the top notch consulting firms as the fees are out of scope for them to pay considering viability. So the Indians firms of consultants, mostly a firm consisting of 3-6 people having a total experience of 100+ years, are preferred as the best option as they can hire then for relatively lesser fees and get the same advantages of the external agency.
While the top consulting firms, in order to differentiate themselves are increasing their fees, it is giving the Indian counterparts to increase their fees in the same proportions. And the growing ease of making money with lesser efforts is garnering the attention of the top level executives into this sector as this is one of the means to keep earning even after retirement. Even the experienced professors are trying to enter the consulting domain with a view of implementing the theoretical knowledge in practice.
But then again the question of “Is it all worth it?”
Some people might think that the consultants are just looking to earn the money in the easy way, might be. But this is not for what the domain was brought into picture, but the realities have changed as the small players in a domain or sector could change the entire dynamics of the game.
The result has been that now the management courses too have recognised the increasing demand of consultants and introduced the aspects of management consulting and IT consulting. Many of the pass outs from this course would venture out with their own firm with absolutely no experience in the domain of consulting but only with the help of theoretical knowledge.
All the unfavourable factors are the reason why the consulting firms are garnering negativity and in order to sustain are committing frauds.
So “Is it worth all the money?” One might never know!