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Why is it that consultants can fix others' businesses but can't fix their own?

Haebom
The world’s largest consulting firms are in crisis. Consulting demand soared during the COVID-19 pandemic, but as things return to normal, clients are cutting costs. As consulting contracts plunge, leading firms like McKinsey, BCG, and Deloitte have begun restructuring too—including layoffs, delayed promotions, and reduced benefits.
Because competition for hiring has been so intense, retraining or letting people go hasn't been easy, which means many firms have kept employees even when there's no work to give them. Some employees are working long hours, while others, with nothing to do, are reportedly just watching Netflix. In some cases, stricter performance reviews are leading to quiet layoffs.
Client companies are cutting back on consultant budgets and turning to investments in technologies like artificial intelligence (AI). Naturally, consulting firms themselves are looking for new business opportunities by adopting AI. There’s also a shift in the industry, with solo freelance consultants being hired more frequently.
Some executives remain optimistic, insisting this downturn is only temporary, but client spending cuts are expected to continue for a while. That's because core business areas are shrinking—thanks to a slowdown in the M&A market and restructuring among banks.
Amid all this, the idea of a "job for life" is collapsing. Deloitte laid off 1,200 people, and EY dismissed over 100 partners in the US—which is highly unusual and sent shockwaves through the industry. McKinsey also cut 1,400 employees.
Campus recruiting continues, but new hires are having their start dates pushed back. According to a recent Wall Street Journal article, some new recruits have been waiting for months without any real work, supporting themselves through delivery gigs. For some, their high salaries make it tough to find alternative jobs.
With the consulting industry facing a serious crisis, everyone's watching to see whether it can steer its own transformation. Adapting to changing client demands and seeking out new business opportunities seems essential. Most of all, courage and a flexible mindset—unafraid of change—will be crucial.
We can analyze the reasons why consultants struggle to solve their own problems as follows:
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Lack of objectivity: Consultants are objective when addressing others’ issues, but become subjective about their own organization. This makes it hard to recognize the real nature of the problem.
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Entangled interests: Each member has their own stake, which makes it hard for anyone to take the lead in driving change. There's reluctance to give up vested interests.
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Stuck in inertia: Being absorbed by long-established practices and culture makes them indifferent to the need for innovation. They end up thinking it's someone else’s issue.
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Lack of execution: They excel at diagnosing issues for others, but hesitate to step up when it comes to solving their own organizational problems. Plans stay plans and rarely become action.
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Methodological limitations: The typical consulting methodologies may not be enough to tackle problems in their own organizations—especially when multiple stakeholders are involved.
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Overconfidence: The passion and energy consultants have when working for others don't carry over into their own work, because they believe they already know everything about themselves.
사실 스님들을 스스로 머리를 잘 깍으십니다.
So, for consulting firms to overcome this crisis, they need to look at themselves honestly—not others—and show leadership that communicates and persuades sincerely to get all members on board for change. Rather than sticking to old practices and methods, it’ll take flexible thinking to find a new way forward.
In a way, even the big three consulting firms and the big four accounting firms are trying to adapt by hiring more people in data and AI. Some say that job cuts or short-term financial setbacks signal the end of consulting, but I’m reminded of something someone who’s been a consultant for over a decade once shared with me. He said consulting is really about logically "persuading others" and "creating reasons why something must be done." Seen from that perspective, consulting struck me as a deeply human job.
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