Some advice to the corporate world’s know-it-alls

livemint.com:

Dear CHIEF STRATEGY ARCHITECT—As the corporate philosopher behind one of the world’s most illustrious consultancies, you well know how tough business has been lately. Only two years ago you were reaching for the stars. Clients jolted by the covid-19 pandemic sought you out as a supply-chain savant and a doyen of digital businesses.

The craze over environmental, social and governance (ESG) considerations turbocharged your bottom line. Unfortunately, you went on a hiring binge. Now the good times are over.

Growth has slowed as clients have cut back on splashy projects. Workforce optimisation has been widespread—though at least you gave something back by hiring extra security staff to see the ex-partners off the premises! This month an anonymous memo, purportedly written by McKinsey ex-partners, scolded the Firm’s “unchecked and unmanaged growth" and “lack of strategic focus". Those are harsh words for a business built on telling companies how to manage their affairs.

You might go so far as to say the consultants need some wise counsel. That is where my firm—the premier consultant to the world’s consultancies—comes in. I append a 367-slide presentation that goes into the detail, but my diagnosis is simple: you are all too big.

The combined revenue of the eight leading firms in your industry is now double what it was a decade ago. Partly that reflects growing demand. But it is also middle-age spread: you are bloated, my friend.