Management consulting is
becoming more prevalent in non-business related fields as well. As the need for professional and specialized
advice grows, other industries such as government, quasi-government and not-for-profit agencies are turning
to the same managerial principles that have helped the private sector for years.
An industry structural trend
which arose in the early part of the 21st century was the spin-off or separation of the consulting and
accounting units of the large diversified professional advisory firms most notably Ernst & Young, PwC and
KPMG. For these firms, which began business as accounting and audit firms, management consulting was a new
extension to their business. But after a number of highly publicized scandals over accounting practices, such
as the Enron scandal, these firms began
divestiture of their management consulting units, to more easily comply with the tighter regulatory scrutiny
that followed. In some parts of the world this trend is now being reversed where the firms are rapidly
rebuilding their management consulting arms as their corporate websites clearly demonstrate.
Rise
of Internal Corporate Consulting Groups
Added to these approaches are
corporations that set up their own internal consulting groups, hiring internal management consultants
either from within the corporation or from external firms employees. Many corporations have internal groups
of as many as 25 to 30 full-time consultants.
Internal consulting groups are
often formed around a number of practice areas, commonly including: organizational development, process
management, information technology, design services, training, and development.
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