One of the reasons why
management consulting grew first in the USA is because of deep cultural factors: it was accepted there,
(contrary to say, Europe), that management and boards alike might not be competent in all circumstances;
therefore, buying external competency was seen as a normal way to solve a business problem. This is referred
to as a "contractual" relation to management. By contrast, in Europe, management is connected with
emotional and cultural dimensions, where the manager is bound to be competent at all times. This is referred
to as the "pater familias" pattern. Therefore seeking (and paying for) external advice was seen as
inappropriate. However, it is sometimes argued that in those days the average level of education
of the executives was significantly lower in the USA than in Europe, where managers were Grandes Ecoles graduates
(France) or "Doktor" (Germany), though this is very difficult to quantify given the vastly differing management
structures in American and European businesses. It was only after World War II, in the wake of the
development of the international trade led by the USA, that management consulting emerged in Europe. The current
trend in the market is a clear segmentation of management consulting firms.
Approaches
In general, various approaches
to consulting can be thought of as lying somewhere along a continuum, with an 'expert' or prescriptive
approach at one end, and a facilitative approach at the other. In the expert approach, the consultant takes
the role of expert, and provides expert advice or assistance to the client, with, compared to the
facilitative approach, less input from, and fewer collaborations with, the client(s). With a facilitative
approach, the consultant focuses less on specific or technical expert knowledge, and more on the
process of consultation itself. Because of this focus on process, a facilitative approach is also
often referred to as 'process consulting,' with Edgar Schein being considered
the most well-known practitioner. The consulting firms listed above are closer toward the expert approach of
this continuum.
Many consulting firms are
organized in a matrix structure, where one 'axis' describes a business function or type of consulting: for
example, strategy, operations, technology, executive leadership, process improvement,
talent management, sales, etc. The second axis is an industry focus: for example, oil and gas, retail,
automotive. Together, these form a matrix, with consultants occupying one or more 'cells' in the matrix. For
example, one consultant may specialize in operations for the retail industry, and another may focus on process
improvement in the downstream oil and gas industry.
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