PROFESSIONAL SERVICES FIRMS HAVE been threatened with disruption for a long time. In 2015, Richard and Daniel Susskind foresaw that technology would cause a "steady decline in the need for traditional flesh-and blood professionals," while more recently, CB Insights said that "a tectonic disruption is hitting management consulting."¹ Even earlier, Clayton Christensen and colleagues warned, "Although we cannot forecast the exact progress of disruption in the consulting industry, we can say with utter confidence that whatever its pace, some incumbents will be caught by surprise."
But things have not played out as predicted. In consulting and law, the established firms are as influential and profitable as ever.³ Many potential disrupters have come along. Some have failed, some have gained strong niche positions, but none has challenged - let alone toppled - the existing order. Most established leaders have used a wide range of strategies and tactics to adapt quickly to the threats.
As is the case in many well-established industries, professional services markets are dominated by a small, clearly identifiable group at the top and large numbers of lower-tier firms operating in their shadow. Consulting's giants include McKinsey, Boston Consulting Group, and Bain; technology-based firms Accenture and Capgemini; and the Big Four accounting firms Ernst & Young, Deloitte, KPMG, and PwC. In law, the top tier includes the five London-based firms informally known as the Magic Circle Linklaters, Clifford Chance, Freshfields, Allen & Overy, and Slaughter and May - along with Kirkland & Ellis, Latham & Watkins, and DLA Piper.
Bu hikaye MIT Sloan Management Review dergisinin Summer 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye MIT Sloan Management Review dergisinin Summer 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Avoiding Harm in Technology Innovation
To capitalize on emerging technologies while mitigating unanticipated consequences, innovation managers need to establish a systematic review process.
Make a Stronger Business Case for Sustainability
When greener products and processes add costs, managers can shift other levers to maintain profitability.
How to Turn Professional Services Into Products
Product-based business models can help services firms achieve greater scale and profitability. But the transformation can be challenging.
Do You Really Need a Chief AI Officer?
The right answer depends on the strategic importance and maturity of AI in your company.
Where To Next? Opportunity on the Edge
Doing business in regions considered less stable or developed can pay off for companies. But they must invest in working with local communities.
Make Smarter Investments in Resilient Supply Chains
Many companies invest in resilience only after a disruption. Applying the concept of real options can help decision makers fortify supply chain capabilities no matter the crisis.
The Three Traps That Stymie Reinvention
Organizational identity, architecture, and collaboration can be either assets or liabilities to pursuing growth in new sectors.
What Makes Companies Do the Right Thing?
Vaccine makers varied widely in their engagement with global public health efforts to broaden access to COVID-19 immunizations. Ethically motivated leadership was a dominant factor.
Build the Right C-Suite Team for Your Strategy
CEOs can foster a more effective leadership team by understanding when to tap senior executives' competitive instincts and when to encourage collaboration.
A Better Way to Unlock Innovation and Drive Change
A strengths-based approach to building teams can win employee commitment to change and foster an inclusive, agile culture.
