Regulating the wild west? Management consulting reform in Canadian government

Abstract

Globally, the increased reliance on consultants and contract employees has raised many concerns vis-à-vis more traditional “in-house” provision. One such concern is the manner in which consultants have been displacing traditional advisors in important aspects of government business while others raise issues with the quality of services rendered and the (undue) influence of the advice tendered. This trend has fuelled research in political science, management, public administration, and public policy chronicling the possible rise of a “consultocracy” and leading to calls in many countries for better regulation of consultants, who currently exist almost everywhere in an unregulated “wild west.” We examine the Canadian situation, the current lack of regulation of policy and management consultants, and prospects for reform, drawing on contract data, interviews with consultants and government employers as well as comparisons with the situation in other countries like the UK. We argue that establishing a more professional licensing and credentialing system for the consulting industry through a regulatory intermediary would improve the efficiency of its services and allay many of the concerns raised.