Why Not The Big Guys?

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If management consultants have a bad name, it's because we have worked hard to get it

A few years ago, a bunch of oil companies got together because they had all hired the same very large consulting firm to do strategic planning and organizational analysis.  They all brought their reports to the meeting with them?  Y'know what they discovered?

Yup, you guessed it.  It was the same report!  Same graphics, same titles, same slides, same meaningless, pompous platitudes . . . same everything.  Into this "template" were substituted a few spreadsheets, names of each company's execs, etc.  Otherwise, SOS for all.

Well what do expect for $100,000 per month?  Individual attention?


Here's what the big guys do.  First, they get you to commit to a whopping (often six figures per month) sum of money for a few months.  Then, the big guys send their big guys, for a two hour meeting.  Look at them hard - it's the last you'll see of them for awhile.  After that, four or five 25 year old recent MBA's with no experience and know-it-all attitudes - move in and start "educating" you.

A few months or so later, right about the time you're ready to pull their underwear over their ears, they go back to their HQ, plug a few spreadsheets into the template, take it to the big guy who reviews it, but doesn't sign it, and then the little guys return to present it to as high in your management as you'll allow.  They have been trained to disregard any reactions from mid level management, but to take note of every facial expression of senior management.

They take this information back to their office, remove and/or  revise anything controversial, and get their big guy to sign it.  Now that the whole report is pabulum, the big guy himself takes it back and re-presents it to your top management, who are in awe, because after all, this is the big guy.


These guys are shameless, really.  In the seventies, they went around to all the big firms saying, "What are you doing with all these retained earnings laying around?  You need to diversify!"  General Mills got into the outdoor apparel business.  ITT was selling insurance, managing hotels, and selling convenient deserts.  Hell, everyone was paying large consulting firms to tell them to do it, and everyone was paying large consulting firms to tell them how.

Somewhere in the early eighties, somebody at one of these consulting firms figured out that everyone had listened to them, that everyone was all screwed up, and that there were no customers of size left to convert.  Something had to be done, and a new buzz phrase was spoken into being - - - "core competencies".  The new message became, "What are you doing with all of this diversification?  You need to concentrate on core competencies."

It's a shell game.  Expect the business trend in the next few years to once again be diversification, albeit called by a new name - - -and led by large consulting firms.


I have no need nor motivation to engage in these shenanigans.  I need you to make a lot of money, love what I do, and recommend me to your colleagues.  I have every reason in the world to be smart, responsive, light on my feet, and deliver results. 

 

 


 
 

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Last modified: January 04, 2014