Strategy Consultants

Abstract

This chapter examines strategy consultants as a major part of the Strategy profession. It examines their growth since the middle of the last century, and particularly the development of leading firms such as Bain & Co., the Boston Consulting Group, and McKinsey & Co. It demonstrates the structurally precarious and permeable predicament of strategy consulting firms, with many entries and exits. The challenging economics of strategy consulting are examined, with the problems of cyclical demand, low entry barriers, weak financial structures, and short pipeline highlighted. The chapter identifies three ways strategy consulting firms have managed their predicaments: cultivating professionalism, building relationships, and investing in knowledge. The chapter also examines the nature of strategy consulting work, particularly its combination of high demands and intellectual stimulus.