Consulting interrupted: Three big shifts

Remote And Virtual Consulting 

The pandemic quickly changed things. Today, almost every consulting firm has some form of hybird model in place, with remote work becoming a norm for many. This has opened opportunities to work with people and companies across the globe while simultaneously cutting costs, but there’s a downside.

Building strong, personal relationships, one of the core tenets of consulting, doesn’t come as naturally when you’re only connecting through a screen. Keeping those bonds strong with much less face time is challenging.

Talent And Workforce Evolution

As consulting evolves, so do the necessary skill sets, with today’s shift being driven largely by AI. We may bring in specialized experts as freelancers to help with specific projects, which provides immediate flexibility but raises concerns about the future. How does this outsourcing impact our internal culture and the capability growth of our team?

It’s imperative to balance taking advantage of specialized talent in the near term while simultaneously investing in capabilities within our firm in the long run.

New Business Models

Increasingly, clients want impactful results that they can both see and measure, leading to more performance-based and subscription-style contracts. From one perspective, this makes sense because it aligns our goals with those of the clients. But here’s the catch: Focusing too much on immediate results often sacrifices long-term thinking. We must work with our clients to determine the best approach to realizing short-term goals without losing sight of the bigger picture.

2. TECHNOLOGY IS DRIVING MAJOR CHANGE

Of all the things driving consulting to change, technology might be the most impactful.

Consider AI, which has opened a whole new world in consulting. For instance, we can now analyze enormous amounts of data in a fraction of the time by leveraging AI tools. According to reports, the AI market is set to continue rapid growth, with predictions of a 37% yearly growth rate until 2030.

However, we must approach this with caution. AI can’t fully replace the intuition and judgment that come from human experience, especially when we’re dealing with complex problems. Our aim should not be to utilize AI in a way that makes us obsolete, but rather as a tool that supports and aids in our work.

It’s not just AI. Other technologies, such as Web3, quantum computing, and robotics are reshaping how we deliver value to our clients. While these disruptions pose real challenges, with responsible management and a focus on ethical practices, we can set ourselves up to navigate them.

3. GLOBAL SHIFTS

Changes in the global landscape, including climate change, regulation, and deglobalization, are the third major force reshaping consulting.

Climate Change And Energy Transition

The consulting industry has a critical role to play in the global shift toward sustainability. Spending on ESG and sustainability consulting is set to more than double to $16 billion USD by 2027. As governments push for lower carbon footprints and renewable energy, we’re helping clients navigate the complexities of carbon regulations and sustainable investments.

However, the challenge lies in balancing sustainability with profitability. Clients want both cost reductions and compliance, and it’s up to us to show that these goals are not mutually exclusive.

Regulatory Changes

With the rise of data protection laws and cybersecurity concerns, staying compliant with evolving regulations has become increasingly complex. This presents a double-edged sword: On one hand, it creates a market for specialized consulting services; on the other, it heightens the risk of falling behind and facing regulatory penalties.

As consultants, it’s our responsibility to remain ahead of the curve by providing timely and relevant advice to clients who depend on us to navigate these regulatory minefields.

Deglobalization

Trade wars, nationalism, and supply chain disruptions are forcing companies to rethink their global strategies. For firms like mine that have long focused on international expansion, this presents both a challenge and an opportunity. Deglobalization may limit global growth, but it also opens doors for those who specialize in local market strategies.

As I reflect on the forces reshaping our industry, I’m reminded that consulting is no longer just about driving change for others. We, too, must embrace transformation if we are to continue leading our clients into the future. Those who integrate technology, maintain a deep understanding of global trends, and preserve the critical human elements of the industry will be the ones shaping our future.

As leaders, this environment demands that we think expansively and act decisively. The next phase of consulting is here, and it’s up to us to define it.