Whilst COVID has been a universal force of devastation, bringing both the greatest number deaths and economic declines seen in decades, it has also been a force of transformation. For all the destruction, there has been an equal and opposite force of construction as people have found ways to adapt to the ‘new normal’. This shift has principally seen interactions transition from physical to virtual space in order to overcome the barriers of self-isolation. However, the changes don’t stop there.
This article will examine some of the transitions that the pandemic has precipitated in the consulting industry, and prognosticate about what the future face of consulting will look like in a post pandemic world.
Shift 1: Strategic Partnerships
One of the primary lessons of the pandemic has been the importance of staying connected in an increasingly fractured world. Forging connections is relevant in the workplace where distinct separations are no longer viewed as professional best practice. For example, consultants today are often expected not merely to provide a written report containing a recommendation, but to assume the role of a strategic partner with the client.
Contrary to the more traditional consulting model, whereby the client hands over a brief and the consultant only makes subsequent contact to ask questions or to provide the finished product, consultants and clients increasingly work together to clarify the problem and identify possible solutions. This ensures not only a better relationship between consultant and client, but also maximises the knowledge available to resolve the problem by combining the client’s unique insights with the consultant’s expertise, thus leading to a better overall outcome.
Shift 2: Q&A Culture
It is hard to imagine a period in which society has had to ask so many questions. Will we go into lockdown? What are the restrictions? Do we need to wear masks in here?
The question culture precipitated by the pandemic has inevitably infiltrated the world of work, in which an expectation of receiving questions and sourcing answers with greater immediacy has arisen. While these expectations were already a product of our existing digital generation led by social media and instant messaging apps, the pandemic has heightened demands for having questions answered quickly. Such a quick-response culture constitutes a new business challenge for consultancies to which questions will be asked with increased frequency.
Shift 3: Internal Consulting
Tight finances and issues with supply chains has produced a trend whereby businesses that would usually outsource projects are increasingly looking for ways to perform the same functions in house. There are many benefits of such an approach, including developing in-house expertise, leveraging company specific knowledge, and reducing costs that would otherwise have been spent on external consultants. This means that consultancies are not only in competition with their usual competitors, but now also with their clients due to the expansion of their in-house consulting teams.
Shift 4: Sustainability Consulting
Sustainability has become an increasingly important issue, with environmental, social, and governance factors (ESG) now being viewed as top business priorities. Although these are non-financial factors, public companies often report on key ESG risks and opportunities, and asset managers are increasingly offering sustainable investment products to investors (e.g., Australian Ethical, Robeco, and Vanguard).
Environmental factors might include carbon emissions, energy used, and waste produced by the company. Social factors might include corporate reputation, diversity and inclusion, and labour practices. And governance might include internal controls and procedures, and methods for ensuring effective decision making.
The shifting focus towards sustainable investing means there is increasing demand for sustainability services from consultancies.
Shift 5: From Selling to Story Telling
No longer is consulting a ‘black-box’ system where clients are happy for consultants to be handed a brief, and then turn around the deliverable a number of weeks later with next to no visibility about how the team got there. Nowadays, clients expect to be more involved in the process, and aware of the journey that consultants have taken to reach the ultimate destination.
The bottom line
From an increasing importance of strategic partnerships and quick-response times to a changing industry structure with more internal and sustainability consulting, the face of the consulting industry in rapidly evolving as we enter a post-pandemic world.
Sukhi R. is a graduate from Warwick Law School currently studying an MSc in Business with Consulting at Warwick Business School. She has a keen interest in the business psychology of consulting and plans to enter the industry in the near future.
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