[HN Gopher] Mariana Mazzucato: "The McKinseys and the Deloittes ...
       ___________________________________________________________________
        
       Mariana Mazzucato: "The McKinseys and the Deloittes have no
       expertise "
        
       Author : taubek
       Score  : 117 points
       Date   : 2023-02-13 19:30 UTC (3 hours ago)
        
 (HTM) web link (www.ft.com)
 (TXT) w3m dump (www.ft.com)
        
       | lesdeuxmagots wrote:
       | Of course MBBs and others have expertise. It's just that most of
       | that expertise is not in the industry domain.
       | 
       | They have expertise in crafting and creating compelling
       | arguments, in selling ideas. They have expertise in maintaining
       | an industry-wide view and synthesizing general trends across the
       | industry (or across industries). They have expertise in
       | parachuting in as third-party and the politics that are
       | associated with that.
       | 
       | These are VALUABLE skills. Imagine if everyone in your
       | organization was an expert in crafting narratives, in putting
       | forth concise arguments, in maintaining the larger context beyond
       | their own area of practice.
       | 
       | The problem with strategy consultants is that they are not hired
       | to be objectively valuable to an organization, an industry,
       | society, etc. They are mercenaries who apply their skills to be
       | valuable to specific people. And because they know how to be more
       | compelling, even if they are not actually correct, it becomes
       | deeply problematic over time, or at scale.
        
       | cainxinth wrote:
       | Charlie Munger: "I've never seen a management consultant's report
       | in my long life that didn't end with 'What this situation really
       | needs is more management consulting.'"
        
         | robocat wrote:
         | Charlie used a quote from George Bernard Shaw's play "In the
         | last analysis, every profession is a conspiracy against the
         | laity."
         | 
         | I personally wonder how many therapists say "you're fixed, I
         | don't need any more of your money".
         | 
         | The quote on management consultants was just one example of how
         | many professionals act this way towards businesses, and how it
         | wasn't only about money but also a subconscious, psychological
         | tendency.
         | 
         | "The guy tells you what is good for him, and he doesn't
         | recognize that he's doing anything wrong any more than that
         | doctor did when he was pulling out all those normal
         | gallbladders."
         | 
         | https://m.youtube.com/watch?v=Jv7sLrON7QY
         | 
         | Transcript: https://jamesclear.com/great-speeches/psychology-
         | of-human-mi...
        
       | TrackerFF wrote:
       | We're currently working with a McKinsey consultant, seems like a
       | great guy - really polished fella, but I'm not sure why he was
       | brought in. We're working on a organization-wide project, so
       | there's lots of moving parts - and he's mostly just joining in on
       | our meetings, taking notes. One boss said he's there to develop
       | strategy for a part of the organization, another said he's there
       | to help with developing project management, so I don't know -
       | someone above them brought McKinsey in. Looked him up on
       | LinkedIn, and it seems he graduated last year. Probably costs a
       | pretty penny.
        
         | PragmaticPulp wrote:
         | You'll get a lot of cynical takes on the internet because a lot
         | of people have had bad experiences with consultants. Or more
         | accurately, bad experiences with management who hire
         | consultants for some goal.
         | 
         | The underlying goal in a lot of consultant engagements like you
         | describe is to get something done outside of the inertia of
         | your org structure. As companies grow, people get set in their
         | roles and become resistant to change. Trying to make change
         | things, start new initiatives, or shake things up will often
         | fail if it doesn't fall neatly into the inertia of the company.
         | 
         | Hiring a consultant is like inserting someone out-of-band who
         | can generate some outside analysis without feeling obligated to
         | respect all of the hidden politics, histories, and strong
         | personalities that can come to shape a company.
         | 
         | Now whether or not that goal is inline with your own goals at
         | this company is a different question. It could be that the
         | outcome involves a new initiative that makes your work better
         | by removing some of the painful organizational cruft that has
         | built up over the years. Or it could become an effort to
         | reshape the parts of the organization that you personally
         | liked. Or maybe the consultant is taking notes for some
         | entirely unrelated initiative that you'll never see.
         | 
         | You don't know, but I would suggest making a good faith effort
         | to work with this person while they're in your company.
        
           | raverbashing wrote:
           | Well, in theory yeah
           | 
           | In practice, he'll most likely go for the most basic solution
           | (which a lot of people probably noticed already) and try to
           | package this in a "report that cost a lot of money"
           | 
           | Institutional inertia is bad, but feel-good/turnkey
           | "solutions" to undefined problems (think stuff like 6 sigma,
           | "agile consultants" etc) don't help neither
        
             | namaria wrote:
             | People put out a lot of words about management as a
             | science. In reality companies are ruled by politics and
             | accounting.
        
         | toomuchtodo wrote:
         | They're getting paid to drive a narrative for whomever's budget
         | is being charged against.
         | 
         | sharemywin provides more depth:
         | https://news.ycombinator.com/item?id=34779586
        
         | skottk wrote:
         | They're often extremely impressive people. Sometimes you don't
         | find out what they're really working on for a long time,
         | sometimes you never do.
         | 
         | Sometimes you find out after it's too late.
        
       | Havoc wrote:
       | Always amusing to see people view consulting like that.
       | 
       | It does nominally bring expertise yes but the primary benefit is
       | ass covering and sounding board. If you're an exec that needs to
       | implement something new & complicated you can either wing it and
       | then the blame is on you if it goes wrong. Or you can bring in
       | consultants and lean on their advice. That gives you someone to
       | blame. And the consultants happily absorb said blame cause
       | they're getting paid either way.
       | 
       | And finally - cross pollination. If you ask them how to do XYZ
       | there is a good chance that the answer is at least in part
       | inspired what they saw at other places/competitors.
        
         | guhidalg wrote:
         | The consultants not only provide the "cover your ass" service,
         | they also provide the "sunk cost fallacy" service. If anyone
         | critiques the answers, they have to argue against X millions of
         | dollars of "expertise". Choose X large enough that no one dares
         | to dissent.
        
         | belter wrote:
         | Classical Weinberg:
         | https://learnbusinessfaster.com/2018/09/15/secrets-of-consul...
         | 
         | Common reason to hire consultants:
         | 
         | - Already made decision and want to blame it on outside agent
         | 
         | - Already made decision but want to say considered alternative
        
           | cmh89 wrote:
           | I work for the government and a lot of the consultants I've
           | come across have been hired by incompetent leadership to try
           | and fix broken processes that said leaders truly can't solve.
           | The government regularly hires consultants to try and fill
           | deficits caused by poor/weak leadership.
           | 
           | We have a consultant right now doing 'process improvement' on
           | one of the easiest processes I can think of, simply because
           | no one wants to handle a difficult conversation with some
           | powerful people who are gumming up the works with their inane
           | power maneuvering.
           | 
           | Of course, no consultant is ever going to point out that the
           | problem is leadership to the people who hired them.
        
       | NoImmatureAdHom wrote:
       | https://archive.ph/0fi0K
        
         | taubek wrote:
         | Thank you for the link!
        
       | runnerup wrote:
       | McKinsey is currently hiring a lot more for experience than they
       | used to. My ex-wife works there as a manufacturing expert based
       | on her decade of on-the-ground experience inside chemical plants.
       | Internal teams really fight to get her on their projects so that
       | its not just "a bunch of ivy league/top uni graduates who are
       | very intelligent but lack any real world experience who
       | ultimately only deliver a slide deck".
       | 
       | The culture may be changing, at least at McKinsey.
        
       | legitster wrote:
       | "A consultant is someone who borrows your watch to tell you the
       | time." During my time as a consultant I can affirm that this is
       | 100% true. But it cuts both ways - you are only there because
       | someone doesn't know how to look at their wrist.
       | 
       | Most of my time as a consultant was asking low-level employees
       | very obvious questions: What are you wasting your time on? What's
       | the bottleneck on X? What could you be doing that made the
       | company more money? Then we would compile a bunch of squishy
       | numbers into some fancy looking charts in a slide deck for the
       | executives.
       | 
       | In my mind this is more of a symptom of a crisis of leadership in
       | business. Absolutely none of the value we provided couldn't have
       | been replaced if executives actually learned to trust their own
       | teams. But MBAs are trained to be drawn to the shiny allure of
       | "data" over quality insight. Or they are so myopic that they need
       | outside help to find solutions they are not bothering to look
       | for.
        
         | kube-system wrote:
         | > you are only there because someone doesn't know how to look
         | at their wrist.
         | 
         | Or there was a political battle over who would wear the watch,
         | and whose budget it would come out of. And the only person who
         | owned a watch lived in a different time zone and didn't want to
         | change it to a timezone they didn't live in.
        
           | legitster wrote:
           | Pretty much. Lol.
           | 
           | It's unbelievable how many expensive reports we generated
           | that said "fixing X would result in $Y revenue" and the
           | business response would be "well, that would piss off Ryan so
           | we can't do that".
        
             | efsavage wrote:
             | In Ryan's defense, the firm he hired wrote an even prettier
             | and more expensive report supporting his decision.
        
               | guhidalg wrote:
               | Consultants pay attention: this is how you're perceived.
        
               | bee_rider wrote:
               | Lucky bastards, I'd love to be perceived as "work product
               | is linearly related to compensation."
        
             | fragmede wrote:
             | Better yet, Jeff's been yelling that we should do X for
             | months and now that we have an expensive report says that
             | we should do X, we're gonna do X. But not at all because
             | Jeff thought it was a good idea. And then wonder why Jeff
             | up and leaves the business.
        
         | squokko wrote:
         | I was similarly a consultant and I agree - in those projects
         | (~25%) where I felt that we actually "created value" it was
         | simply by talking to a bunch of junior people (not ICs, but
         | ~managers of managers), kind of piecing together what was wrong
         | (not very hard), and presenting that to the CEO. The CEO never
         | heard this shit by themselves because everything was polished
         | before being reported up the management chain.
         | 
         | I literally had one guy saying that a big problem was that the
         | device's battery life was very low, and we should include a
         | second battery. This kind of budget ask would have never gotten
         | off the ground without us, we took it to the CEO and said it
         | would cost $m and he said "sure" and that was that.
        
         | dirtybirdnj wrote:
         | > Or they are so myopic that they need outside help to find
         | solutions they are not bothering to look for.
         | 
         | Anybody in charge for long enough loses the muscle of being
         | able to accept questions or criticism. You buried the lede.
         | 
         | In a way it's sad when they've hired consultants because they
         | at some level acknowledge they need help, but when it comes to
         | looking at their own actions or behaviors nothing is wrong or
         | needs fixing.
         | 
         | Which one is it, do you need help or not? If you don't need
         | help and know it all why are the consultants here?
        
           | legitster wrote:
           | To give a bit of defense to consultants, there are a lot of
           | parallels between hiring a consultant for a business and a
           | therapist for yourself. Both are expensive in their own ways.
           | And both focus on helping you help yourself with your own
           | resources. I wouldn't think of you as an idiot for admitting
           | you needed help to look at your own actions or choices.
           | 
           | But I think the difference is that you can't just fix
           | yourself by swapping out pieces of your brain, but a business
           | can! Why would you keep around executives or teams that need
           | constant, regular intervention?
        
         | HillRat wrote:
         | One of my mantras to my associates and consultants was that our
         | job was to be one part therapist, one part sociologist, and one
         | part accountant. As you say, if the client could fix their own
         | problem, they wouldn't have called in a consultant, and, if the
         | problem could be fixed by throwing developers and designers at
         | it, they would have called someone cheaper. The implication of
         | getting that phone call is that there's a gap between what the
         | client's _asking for_ and what the client _needs_ , which has
         | led them to bring in an outsider. Generally the answer to what
         | the client assumed was a technical or design issue actually lay
         | somewhere in the organizational structure, interpersonal
         | relations, or the cash flow and balance sheets.
         | 
         | It's true that consultants generally (certain kinds of
         | expertise-led consulting aside) don't do anything an
         | organization can't do for themselves, but it's also true that a
         | therapist doesn't do anything an individual or couple can't do
         | themselves. Bringing somebody in to ask both the stupid
         | questions and the hard questions, without being beholden to
         | internal power and communication structures, can often be very
         | helpful, as long as -- big "if" here -- you can trust the
         | consultant isn't going to featherbed for the sake of the SoW.
         | 
         | Having said all that, I've seen some terrible, terrible work
         | from consultancies, including some big screwups from my old
         | firm (which, to their credit, the cost of which we ate rather
         | than our clients). More than once I've seen large clients
         | outsource strategy, innovation, or the entirety of execution to
         | a Big Three/Big Four firm, and waste tens of millions on work
         | that delivered a couple dozen binders but not any tangible
         | value. The common thread is usually that the company abdicates
         | responsibility for overseeing and critiquing the work, rather
         | than taking a firm hand. That never turns out well.
        
           | Arubis wrote:
           | Every problem is a people problem. Especially when you're
           | told by your client that it's not a people problem.
        
           | legitster wrote:
           | I look back on my time as a consultant, and I think we
           | largely did good work. I just personally found it frustrating
           | how much time we spent spinning our wheels vs making
           | progress. I spent 6 months _on a slide deck_ that no one
           | ended up looking at.
           | 
           | If I had one takeaway, it's that our clients were entirely
           | too risk averse. Rather than just start executing on
           | something and learn along the way, they would rather front-
           | load every business decision with 500 hours of coordination
           | and planning meetings. And as consultants, we were
           | incentivized to enable this type of behavior.
           | 
           | I think it's pretty telling that, while I believe consultants
           | can provide value and do good work, I have to admit that I
           | never would have hired myself on any of the projects that I
           | worked on.
        
         | eunos wrote:
         | > you are only there because someone doesn't know how to look
         | at their wrist
         | 
         | Some more cynical view. You are only there because your boss
         | doubt that you know how to look at your wrist.
        
           | pempem wrote:
           | You're only there because there's been no visible effect of
           | whether you look at your wrist or not.
        
             | gffrd wrote:
             | You're only there because instead of quantifying work, boss
             | worries about whether or not employees are looking at
             | watches.
        
         | bee_rider wrote:
         | It seems like abysmally bad management and also pretty common,
         | to have to bring in an outsider to ask the workers "what
         | obvious stupid things do you see going on here."
        
           | legitster wrote:
           | They are a bit hokey, but I think this is something shows
           | like Kitchen Nightmares or Undercover Boss or The Profit get
           | absolutely right - just a few honest conversations is often
           | all you need to uncover a bunch of improvement opportunities
           | _if you know how to ask questions_.
           | 
           | This is why Toyota consistently crushes it with quality and
           | manufacturing efficiency - their entire idea of continuous
           | improvement depends on trusting low-level workers to have the
           | expertise to suggest improvements.
        
             | guhidalg wrote:
             | Except Toyota's process isn't secret. Any company that
             | cared to execute well could simply buy everyone a copy of
             | one of several books on Toyota's system and start cargo-
             | culting themselves into success. The only explanation I've
             | found with predictive power is that most
             | managers/executives don't really want to do things right,
             | they just want to BE right. It's rare to encounter a
             | "leader" (at any level!) willing to admit they could
             | improve.
        
               | legitster wrote:
               | I think this is one of those reasons where leadership
               | quality and company culture are still important. Toyota
               | knows they can't be copied which is why they share it so
               | openly.
               | 
               | You can even read up on the failure of NUMMI where Toyota
               | literally tried to teach GM executives their production
               | methods and GM just couldn't do it.
        
         | newsclues wrote:
         | Sounds like a lack of leadership is driving this.
        
           | Chris_Newton wrote:
           | That doesn't necessarily seem true. Many professions rely on
           | peer review and mentoring even at the highest levels so
           | everyone can make fewer mistakes and continually improve. We
           | don't assume a generalist doctor is incompetent because they
           | refer a patient to an appropriate specialist. We don't assume
           | a pilot is incompetent because they have a copilot with them
           | and they run down a checklist before taking off. We don't
           | assume a software developer is incompetent because their work
           | goes through code reviews. Why should business leaders be
           | expected to know everything and make the right judgement
           | every time without the same kind of peer support?
        
       | TheMagicHorsey wrote:
       | Consultants do seem kind of useless. But then why are CEOs
       | constantly hiring them? There must be some political/internal
       | dynamic reason for this if you can't find an external/efficiency
       | reason.
       | 
       | I'd be interested in seeing a list of consultants' greatest wins.
       | I mean the projects proposed by consultants that enhanced company
       | values by the most. There's plenty of stories of consultant-
       | driven disasters ... but I wonder how many of those are just the
       | rank and file grousing about over-paid outsiders.
       | 
       | But if there's anything worse than consultancies, its
       | bureaucracies. I have a lot of experience dealing with
       | bureaucracies in health care and aviation. And my god,
       | bureaucrats can be some of the worst of human capital. Nowhere
       | else can you get such a marriage of apathy, laziness, and
       | unchecked power as you see in bureaucracies. At least in the
       | private sector one has to be an avaricious asshole and possess a
       | type of animal cunning at the very least to climb to the very top
       | of the power hierarchy. In bureaucracies you might find a guy
       | with absolute power over regulatory decisions and he has the
       | motivation and intellectual capacity of a well-fed water buffalo.
       | How did he get there? He just stuck around longer than everyone
       | else.
        
         | mach1ne wrote:
         | Some companies (mainly those which actually produce physical
         | stuff) may lack the knowledge for fairly elementary process
         | optimization. That's the stuff they teach the upcoming
         | consultants at school. And that's the stuff that actually saves
         | everybody's money.
        
           | eecc wrote:
           | If that's all, we can simply add a couple Operations Research
           | classes to ant engineering curriculum and we'd be done.
        
         | Freedom2 wrote:
         | In my experience, consultants are a good, easy CYA policy, as
         | well as being able to look good for promotions and whatnot if
         | you get the big names.
        
         | looping__lui wrote:
         | Maybe if company politics outweigh objective facts!? Or you
         | need someone to give you an independent perspective? For
         | companies it can be like a bit of therapy...
        
         | sharemywin wrote:
         | That's how you sell the Board on a project. You know Jon from
         | IT thinks this will save us a bunch of money.
         | 
         | versus
         | 
         | We engaged Deloitte and if we allocate $XXM on this project to
         | using XYZ solution which is part of the "gartner magic
         | quadrant" we can see a ROI of XX.
         | 
         | the point of a consultant is to get you money from who ever
         | holds the purse stirngs.
        
           | pablobaz wrote:
           | It's often more to provide backup and justification for a
           | decision. Even if it then goes wrong you can say "Deloitte
           | told me to do it".
           | 
           | While this may be true, it still doesn't take away two
           | strengths consultants can bring: - never underestimate the
           | value an independent view can bring, especially to a big
           | company suffering from group think - secondly, a common
           | consulting practice is to re-sell successful projects to
           | other clients. Obviously not the exact IP, but the experience
           | and general approach. This can be invaluable.
        
             | bob1029 wrote:
             | > secondly, a common consulting practice is to re-sell
             | successful projects to other clients. Obviously not the
             | exact IP, but the experience and general approach. This can
             | be invaluable.
             | 
             | This is basically our business model, combined with a B2B
             | product that supports it. We have developed a very good
             | recipe for a few clients and are now applying it
             | everywhere.
             | 
             | Today, about 80% of our business is a consulting package.
             | The 20% technology setup piece comes after we figure out
             | how to conform the customer to our capabilities.
        
               | kube-system wrote:
               | Yep, do a successful project, write a case study, and
               | resell it to everyone.
               | 
               | "We here at [consulting inc] have previously implemented
               | [solution] for [fortune 500] in [the same industry] and
               | they experienced [big number]% increase in [metric] as a
               | result."
        
             | juve1996 wrote:
             | I don't buy this argument at all. At the end of the day,
             | consultant backed or not, you're responsible for the
             | implementation. If it fails it's not on the consultants.
             | They're long gone. And someone needs to carry the blame.
        
       | napolux wrote:
       | I guess that's part of their business: make who hire them believe
       | that they are experts
        
       | zwieback wrote:
       | The problem isn't public vs. private or in-house vs. consultants,
       | the problem is bad or missing metrics. In most situations where
       | work gets distributed to other entities there's also a lack of
       | understanding the problem space and an inability to measure
       | progress. The article mentions that for the vaccine rollout -
       | who's to say that it would have worked out better done in a
       | different way?
        
       | paulsutter wrote:
       | They have extensive expertise at selling very large consulting
       | engagements. If they needed other expertise they'd develop it,
       | but they don't need it
        
       | api wrote:
       | They're experts at getting money out of large corporations.
        
       | Manjuuu wrote:
       | She could have listed the others too.
        
       | sbaiddn wrote:
       | The role of these companies is to be corporate sin eaters for the
       | board.
       | 
       | Through consultants they can blame all the
       | bad/immoral/incompetent decisions on the consultant. This is why
       | every corruption story in the West features a McKinsey or a
       | Deloitte grad.
        
       | smfjaw wrote:
       | I worked previously at one of these places. It's quite
       | interesting, they create solutions that are really only 'happy
       | path' solutions that work in a perfect world and it's honestly
       | kind of expected.
       | 
       | You pay $100k a week for a bunch of ivy league/top uni graduates
       | who are very intelligent but lack any real world experience who
       | ultimately only deliver a slide deck and some recommendations so
       | they don't have any real liability, a 21 year old grad can't
       | navigate a lay off round properly and can only provide these
       | 'happy path' recommendations, similar to how a lottery winner
       | won't make good business owner, they have all the money but not
       | the knowledge, the Mckinsey junior has all the knowledge but no
       | experience. Execs hire them because they don't want to be the
       | decision maker only the proxy decision maker and can say
       | 'McKinsey advised this was the only solution to do
       | layoffs/restructure/unpopular thing and they're the ones that
       | know' when in reality all the exec needed was a short stop to
       | back them up.
       | 
       | Obviously this only relates to their management
       | consulting/advisory arms
        
         | kneebonian wrote:
         | My understanding was they were brought in to validate the
         | opinion of the hirer. As I once said before
         | 
         | "This was one of those big eye opening moments for me.
         | Consultants are hired mercenaries in coporate warfare, they
         | don't care about you, they don't care about your company or the
         | rivalries or the squabbaling. You pay them a bunch of money to
         | come run roughshod over your enemies by producing reams of
         | analysis and Powerpoints, to fling the arrows of jargon, and
         | lay siege to your enemies employees by endlessly trapping them
         | in meetings and then they depart. Consultants are brought in to
         | secure your flank, to provide air cover and to act as
         | disposable pawns in interoffice combat.
         | 
         | They are not brought in to solve problems, to find solutions,
         | or because of their incredibly acumen. It's because they have
         | no loyalty or love but money."
        
           | doctor_eval wrote:
           | I think I saw this the first time you wrote it. It's genius,
           | and I think perfectly accurate.
           | 
           | (Although, speaking as a consultant, we are not all like
           | that. It is of course the big consulting companies being
           | hired into the big-end-of-town companies. Some of us little
           | guys really do care about our customers.)
        
           | Galxeagle wrote:
           | Copying my favorite quote from a different thread about data
           | scientists: it's 'decision-based evidence-making'
        
           | yamtaddle wrote:
           | They're also an acceptable form of corporate espionage. Mid-
           | and higher-level consultants (there's usually one with
           | relevant experience at least _advising_ a team remotely, at
           | least providing some background documents for them) will
           | provide sets of  "best practices" for you to adopt... that
           | they learned from your competition. Anything you're doing
           | well, they'll note, and those will be "best practices" when
           | your competition engages them again.
        
         | bernawil wrote:
         | a 21 year old grad
         | 
         | I hope this is hyperbole or using the term "consultant" when
         | really meaning "pawn from a staff enhancement agency" (as is
         | often done). Because the accusation seems to be that
         | consultancies sell merely the appearance of expertise and
         | nobody would buy into the appearance of a 21 year old.
        
           | rippercushions wrote:
           | The consultants doing the selling and schmoozing with the
           | client's upper brass are rarely if ever the same as the
           | grunts on the ground doing the work, who _are_ often fresh
           | grads.
        
           | _JamesA_ wrote:
           | My experience working with teams from Anderson (now
           | Accenture) and Deloitte was that they heavily favored youth
           | and attractiveness over knowledge and experience.
        
           | squokko wrote:
           | When McKinsey/Bain/BCG goes to a client, the project is
           | usually sold to the CEO or senior exec by a 40-50 year old
           | Director or Senior Partner at the consulting firm. The
           | project kicks off with a "case team leader" who is the only
           | full time person on staff, they are usually like 30, running
           | a group of 22-28 year olds, who are doing the work with the
           | client executives who are usually 2-4 levels down from the
           | CEO. The partners from the consulting firm are not full time
           | on the project and their job is to keep the project on track,
           | present the conclusions to the client at the end, but most
           | importantly to keep the money flowing from the client.
        
       | olivermarks wrote:
       | Professor Mazzucato's argument is that the big three are
       | weakening government's ability to innovate because that function
       | is outsourced.
       | 
       | Although she is confident this can be remedied by bringing more
       | innovative projects in house the reality is the same as in large
       | companies: entrenched cultures, fiefdoms, silos, budgets make
       | change very hard due to entrenched interests.
       | 
       | It takes outsiders to be the Pinata in the room at some point,
       | they can say things FTE management can't. I'm a consultant, my
       | beef with the big three is the 'nobody gets fired for hiring
       | Mckinsey/Deloitte/x' syndrome.
       | 
       | You will get a lot of cut and paste boilerplate slide deck read
       | outs from the big players, smaller more specialized consultants
       | tend to provide a lot more value for much lower costs.
       | 
       | Ironically government departmental efforts at
       | innovation/change/evolution are typically expensive, big players
       | too...
        
       | lormayna wrote:
       | My previous executive come from one of those companies. She was
       | the worst leader that I ever had, she left after less than 2
       | years with a completed failure from organizational standpoint and
       | many people disgruntled.
        
         | dcl wrote:
         | She probably got an awesome new role though.
        
       | lq9AJ8yrfs wrote:
       | It's substantially true, at least in part. Source: I worked at
       | one of them for a few years.
       | 
       | In my preferred niche I was surrounded by a mixed bag of peers
       | senior and junior. In turn I wrote proposals, sold work, and was
       | staffed on projects outside my niche I wasn't experienced or
       | qualified in, but if you squinted hard enough you could say I had
       | transferable skills toward.
       | 
       | For the most part my projects were successful, in the sense of we
       | didn't get fired overall and the customer paid for the work. The
       | biggest ways to screw up were the easily caught stuff like
       | missing deadlines, exceeding the expenses policy or padding
       | hours, which was harder to catch but some folks were brazen
       | and/or cunning about it.
       | 
       | "Yes we're an expert in that" was a phrase that wasn't ever
       | taught but I heard often. Saying yes to anything buys you time to
       | find the solution either by skilling up or connecting to someone
       | with actual knowledge across the very large and well-connected
       | employee base, or fake it if you can't. Saying no ends the
       | opportunity.
       | 
       | Some of the work was mutually convenient, hey can you take care
       | of this one weird project for me, cheaper and easier to go with a
       | fudged service from an existing and recognizable supplier than to
       | wade into an unfamiliar niche, go through the trouble of
       | onboarding the supplier, and not know whether you're getting good
       | service or not. Go with the big 4 and you'll likely get a solid C
       | or if you're lucky a B grade service. Just the act of getting a
       | new consultant onboarded as a supplier can take months or years
       | at large companies. The big 4 are on the supplier lists
       | everywhere already.
       | 
       | Tbh a lot of this contract and relationships stuff is valuable,
       | you're much less likely to get a complete service delivery or
       | billing nightmare out of one of these large firms. You can call
       | them up in the middle of the night and they'll sell you anything.
       | It's a little like Alibaba or Amazon but for business services.
       | 
       | Probably the weirdest part was finding the land and expand
       | playbooks, in some of which they'd find and dine a "type b"
       | personality and prop up their career in exchange for a steady
       | stream of contracts. Basically quid pro quo, but none of it made
       | explicit or overtly conditional, more an open handed game theory
       | type of thing.
       | 
       | I took this mentality with me to a boutique shop. It works pretty
       | well.
        
         | neilv wrote:
         | > _Probably the weirdest part was finding the land and expand
         | playbooks, in some of which they 'd find and dine a "type b"
         | personality and prop up their career in exchange for a steady
         | stream of contracts._
         | 
         | Like geopolitical spycraft? How far did the playbooks go?
        
           | [deleted]
        
           | lq9AJ8yrfs wrote:
           | Probably a lot of the same emotional manipulation that goes
           | into spycraft? IDK all I know about spycraft comes from
           | novels.
           | 
           | Hey we see your true potential, we know your exec team and we
           | can help shape the company so you and the company succeed
           | together. And we can coach you so that you know how and when
           | and who to deliver your message to when the time is right.
           | 
           | It worked both ways. Revolving door with clients was
           | absolutely encouraged wherever it wasn't forbidden by law or
           | regulation. Implicitly as an employee in good standing it
           | felt like this was a standing offer should you decide to
           | switch to an industry role, and I saw it often.
        
         | [deleted]
        
       | bluedino wrote:
       | At F100_NAME we have piles of developers from Deloitte. They put
       | a couple of them on this medium-sized Python project that a now-
       | retired employee created. The first one re-wrote a lot of it and
       | screwed it up, the next one started fixing it (not sure why they
       | didn't just roll it back), the one after that didn't do anything
       | for 4 months (then they left), and I recently spent two
       | afternoons with the current one where they were trying to trick
       | me into doing their job. I'm from another contractor/consulting
       | firm.
       | 
       | Haven't heard from them in a while so I'm not sure what the
       | current status is.
        
         | rvba wrote:
         | In the past consultants were paid well since they were the
         | experienced people. They worked on the interesting projects,
         | they saw things, they really were good at something - so they
         | would bring best practice from one company to another.
         | 
         | Now the business model has changed. It is much easier to know
         | what is the best practice. So what they do is hire juniors and
         | sell them as mids or seniors.
         | 
         | Good programmers dont really go to consulting firms anymore. It
         | is not worth their time. Why work at BIG4 when you will get
         | paid better in FAANG?
         | 
         | If you say are a developer at crypto (ignoring that it is a
         | scam) all the good projects are at crypto companies. Best that
         | consultants can do is some slides or trick some company to
         | implement blockchain instead of a database. Consulting
         | companies lost their edge. They dont really play the game
         | anymore. They can take some bad project and then outsource it
         | to a cheap team. Or get a very bad project that is a total mess
         | - ans then fail to repair that mess.
         | 
         | If you want good software you go to a software house (that can
         | still deliver crap).
         | 
         | Apart from very specific skills, consultant programmers mostly
         | do the shit projects - that nobody wants to touch. Or they are
         | "staff augmentation" - headcount outside of salary budget.
         | 
         | Also the consulting lifestyle just sucks: constant overtime,
         | burnout, travel. Some people like it. Most dont.
         | 
         | Most people in consulting search for an exit opportunity after
         | few years. Programmers can exit faster, so the good programmers
         | will leave consulting firms fast (it is different for business
         | consultants - they have it much harder to leave, so they stay
         | longer).
         | 
         | But coming back: if you are in finance, or project management
         | then sure - consulting can help your career at big personal
         | cost. For skills like programming it is completely not worth
         | it. If you are a junior programmer just try to go to a FAANG to
         | earn 3x more. A "normal" company will pay you similar as big4.
         | So why bother with all the travel and stress?
         | 
         | If you are really experienced programmer, say 15 years - again
         | you dont want to go to consulting. You can land a senior job,
         | be paid well and not travel at all.
         | 
         | So all those companies take people who are still smart but
         | couldnt get better. Also consulting companies lie all the time:
         | juniors are sold as seniors (especially programmers, but normal
         | consultants too). And the development there is hard - due to
         | travel and overtime they have it jard to learn on their own (no
         | spare time). They also focus on closing a project, not on doing
         | it well.
         | 
         | What I try to write is that if you want to be a programmer
         | nowadays it is better to do it in a software company from day
         | one. Being a programmer at a consulting company is not worth
         | the stress. Also doesnt pay better. It is a bit different if
         | you are in finance or project managent, but even here it seems
         | that the ability to boost your career by doing few years of
         | consulting is becoming less worth it. The exit opportunities
         | seem to happen less. Consulting is much less elite as it used
         | to be. The consulting companies dont really have much edge
         | anymore.
        
       | college_physics wrote:
       | Quite seriously, they capitalize at both the corporate world and
       | the public sector being brain-dead, cost insensitive
       | organisations (somebody else pays: the clients of the business
       | entity, the taxpayer etc) and culturally unable to embrace
       | concepts such as open source and collaborative platforms.
       | 
       | Think about it, their main service is moving around and promoting
       | "best practices" by copy pasting and incrementally improving (at
       | high cost) what ultimately is solved via diffusion by the sector
       | / domain as a whole. Essentially an expensive, backdoor way to
       | engineer consensus.
        
       | slackfan wrote:
       | Consultants are paid to be the fall guys in the games of
       | corporate politics.
        
       | [deleted]
        
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