Management Consulting Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 90,000 management consulting firms in the US assist businesses and organizations with administrative, strategic, and management-related issues. Major revenue categories include strategic and financial management consulting and implementation services. Firms may also offer operations and supply chain, marketing, and human resources management consulting services. Customers include businesses, institutions, non-profit organizations, and government entities.
Competitive Bidding
Many clients use competitive bidding when soliciting management consulting services and preparing bids is a costly process for consulting firms and requires significant amounts of managerial time and effort.
Dependence On Highly-Skilled Labor
Management consulting firms solve complex business problems and rely on highly-skilled, educated, and experienced industry professionals to provide consulting services.
Industry size & Structure
The average management consulting services provider operates out of a single location, employs fewer than 5 workers, and generates about $3.4 million annually.
- The management consulting services industry consists of about 90,000 firms that employ about 845,000 workers and generate about $307 billion annually.
- The industry is fragmented; the top 50 companies account for 41% of industry revenue.
- Large companies include McKinsey and Company, Booz Allen Hamilton, Boston Consulting Group, Bain, and Accenture. Most large firms offer comprehensive services and operate nationally and internationally.
Industry Forecast
Management Consulting Services Industry Growth
Recent Developments
Sep 16, 2024 - Employees Report Transformation Fatigue
- About half of employees said they have considered leaving their jobs due to frequent and unsuccessful corporate transformations, according to a recent survey of executives and managers in the US and UK by UK-based digital business services firm Emergn. Almost 60% of respondents reported feeling burned out by the extra work created by repeated change programs, and 30% said they’d been through five or more transformations over the last five years. Survey results suggest only about half of transformations are successful. More than half of the respondents said they had worked on a transformation project with one of the three largest consulting firms, and 87% of those respondents felt the firms had a negative impact or provided no positive effect at all. The study suggests that workers understand the need for change but are unhappy with how changes are implemented.
- In September, PricewaterhouseCoopers (PwC) said it would lay off about 1,800 workers, the company’s first such move since 2009, according to The Wall Street Journal. PwC said it would also restructure its technology group amid a slow demand for some of its advisory services. The reductions will include associates and managing directors in the firm’s business services, and audit and tax segments, and about half the cuts will be for positions outside the US. PwC noted that, unlike its Big Four accounting firm peers, it has not laid off US-based workers over the past four years. The move by PwC comes as some professional services firms have seen demand for certain services soften amid high interest rates and a sluggish economy.
- Companies that fortify their ranks with positions related to climate often are outperforming their peers, according to The Wall Street Journal (WSJ). Companies are increasingly adding staff to meet their climate goals and help customers to do so, ensure compliance with environmental regulations, and shore up supply chains in the face of extreme weather events and energy shortages. Using a measurement of corporate effectiveness developed by the Drucker Institute at Claremont Graduate University and employment data provided by Revelio Labs, WSJ research found that firms with higher percentages of jobs related to climate tended to rank higher as effective organizations. Firms with the largest proportion of climate positions as a share of their overall workforces outperformed those with the smallest share. Companies with larger shares of climate jobs scored higher for customer satisfaction, innovation, social responsibility, employee engagement, and financial strength.
- By the end of 2025, at least 30% of enterprise projects related to generative AI will be abandoned following the proof-of-concept phase, according to a recent report by consulting firm Gartner. The key reasons generative AI projects will be canceled include poor data quality, rising costs, unclear business value, and inadequate risk controls. Executives may become wary of escalating costs in developing productivity-enhancing AI projects when they fail to yield direct financial benefits. Gartner experts suggest AI costs are difficult to project relative to other technologies but offered some benchmarking survey data that can help gauge effectiveness. A Gartner survey conducted in late 2023 found that, on average, early AI adopters reported revenue increases of 15.8%, 15.2% cost savings, and 22.6% gains in productivity.
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