Getting rid of strategizing hindrances - Identifying and confirming management consultant liabilities

Abstract

In 2009, the management consulting industry reported a 9% decline in their financial performance. The applied empirical research, which informed this article, was undertaken in an effort to provide an alternative explanation (over and above the 2.2% decline in the global market economy reported for 2009 by the World Bank) for the observed slump in the financial performance of management consulting firms. The results of the study showed that liabilities (hindrances) that limit the ability of management consultants to strategies successfully are one of the major contributors to the decline in the financial performance of consulting firms. The qualitative research, on which this paper is based, was undertaken from a strategy-as-practice perspective and was conducted in two separate but interrelated phases. First, an extensive literature review aimed at identifying the liabilities discussed in academic works was done. Second, the practical relevance of the identified liabilities was determined by conducting semi-structured interviews. The paper concludes by combing the findings of the study into a conceptual framework, which assists consultants to identify, understand and mitigate the liabilities they are most likely to encounter while assisting organizations in strategizing.