MANAGEMENT CONSULTANCY

Rise of Management Consultancy over the Past Two Decades



Introduction1

Discussion1

Management Consultancy1

Overview of Management Consultancy Industry of the United Kingdom2

Trends & Tendencies4

Success of Management Consultancy5

Development of Management Consultancy over the Period6

Conclusion11

References13

Rise of Management Consultancy over the Past Two Decades

Introduction

Over the last two decades, especially 20th Century, management consultancy industry has witnessed rapid and explosive growth. Until the economic slowdown in 2000, the global market for management consultancy increased by 10 to 15 percent annually, substantially more than international gross domestic product. In 2003, top ten consulting companies reported total revenue of approximately $ 51 billion. Rise in this market is associated with the creation of some mega-companies with many 10 thousands of consultants (Kipping & Kirkpatrick, 2005, p.1; UN, 2004, p.110). Traditionally, and still, this sector is dominated by small and medium sized firms. It is also due to the increasing numbers of employed in the industry. In addition, the range of services offered also boosted up the sector. However, the most important of all the factors and dynamics is the unprecedented level of influence and visibility now enjoyed by management consultants, particularly in large international consulting companies (IBISWorld, 2013, n.d; Kipping & Kirkpatrick, 2005, p.1). This paper provides an in-depth, comprehensive analysis of rise of management consultancy in the United Kingdom over the past two decades.

Discussion

Management Consultancy

Management consultants offer guidance, advice, and operational assistance to businesses and other firms on management issues. Key areas of consultancy include organizational and strategic planning, human resources, marketing, and operational and transactional management. However, the management consultancy industry excludes the provision of guidance on engineering, legal, and educational matters (IBISWorld, 2013, n.d; UN, 2008, p.225). Thus, management consultants help businesses to enhance their performance, mainly through the study of existing organizational issues and the creation of plans for improvement.

The Management Consultancies Association (MCA) defines management consultancy as “The development of value for businesses through improved performance, attained by offering objective advice and implementing business solutions”. Therefore, companies seek the services of management consultants for a variety of reasons (Consultant-News, 2011, n.d; WetFeet, 2008, p.70):

To get proficiency not available in-house (too many people needed, too costly to hire a permanent worker, too new or leading edge, too expert)

To carry out detested rules and regulations

To get innovative, fresh, and objective idea

To get help for making management decision

Management consultants maintain relationships with numerous organizations, and thereby have more experience and exposure. They are well aware of the industry trend and best practices. The United States is the largest market around the globe followed by Europe. Within Europe, the United Kingdom is the second largest market, having been displaced by Germany (Consultant-News, 2011, n.d; Charles, 2008, p.10).

Overview of Management Consultancy Industry of the United Kingdom

United Kingdom's management consultancy industry covers a wide range of consulting, including organizational and strategic planning, business process management, compliance, as well as human resource management. The industry has been performing comparatively well against the economic challenges of the last 5 years because of the markets served and ...