The management consulting industry has continued to expand over the past five years and, according to Statista, is expected to increase from $145 billion in 2018 to $158 billion in 2020. The growth of management consulting firms can be attributed to strong corporate profits and increasing business expenditures, along with rapid changes in technology that are disrupting industries. A growing number of organizations are seeking advice on how to thrive in a radically shifting environment.
While it’s no secret that the industry is dominated by very big, established names, this continued growth has opened new opportunities for smaller, more agile management consulting firms. With so many choices, it can be daunting to decide which consultant is best for you and your business. Is it better to go with the well-known, old guard? Or, does it make sense to break new ground with a more boutique management consultant? There are benefits to working with both, but we’d like to focus on some of the reasons you might want to consider a boutique management consultant.
Management consulting, or strategic consulting as it is sometimes called, is the practice of helping organization improve their performance and make strategic plans by analyzing existing problems and developing solutions. Consulting firms provide external advice and special expertise in areas that a company may not have. Strategies may involve operations, finances, human resources, allocation of assets/capital, investment opportunities or divestitures.
Three Reasons to Hire a Boutique Management Consultant
1. You get none of the bureaucracy, but all the experience.
Large management consulting firms are built on many decades of established hierarchies, rules and policies that have helped to create who they are today. While there’s nothing inherently wrong with this, it can make a working relationship more tiresome and inflexible than it needs to be, as all corporate veterans know. Boutique management consultant firms, however, are often much smaller, which give them the agility and freedom to work with you in a way that makes the most sense for your business. If you’re looking for a more personalized experience, a boutique management consulting firm might be a better choice.
2. Narrower and more precise focus in your industry.
While big firms can boast that their consultants work in multiple industries, they often don’t specialize or hone their experience in focused areas. This could lead them to provide recommendations based on more generalized consulting experience and the research they perform to educate themselves on your industry. On the other hand, boutique management consulting firms are usually highly specialized in a much smaller pool of industries or areas. Therefore, they can offer you more specific recommendations based on personal experience, as well as research – they know your industry inside and out and have the strategic consulting experience to back up their advice.
3. You pay for the people, not the name.
When you work with a boutique management consulting firm, you probably won’t be hiring them for their brand or logo. Their smaller size and (likely) smaller presence in the field of consulting firms means you’ll be hiring them for other reasons, such as their reputation, personalities, and chemistry with your team, along with their proven experience in your industry. You’ll be working with fewer people as opposed to the fleets of consultants offered by bigger firms, which translates to less overhead for the boutique consulting firm and a smaller bill for you! Ultimately, you’ll be working directly with a handful of people who are experts in your field, want you to succeed, and aren’t driven by any kind of status quo.
The main takeaway is that working with a boutique management consultant is all about “fit” and quality; it’s a little like the difference between a pre-made suit and the work of an experienced tailor.
If you’re looking for a strategic consultant that provides your business with the individualized attention and expertise it deserves, then we strongly encourage you to consider working with a boutique management consulting firm.
You can start the process by calling Paul Eichenberg Strategic Consulting at 248-670-9108 or visiting us at pauleichenberg.com. We’re focused on helping your business gain and maintain a competitive advantage in a rapidly evolving marketplace.