Kennedy Information predicts that it will be 2003 before strategy consulting firms will see a rebound. Noting that Boston Consulting Group (BCG) has already laid off one in eight employees, and predicting that Bain and McKinsey will likely follow suit, Kennedy points out that the business models for these firms are shifting – dramatically. Strategy consulting has even become a loss-leader at some firms.
For me, the most interesting nugget in the article sheds some additional light on an item I wrote about back in January. At a conference I attended, PwC‘s Dan Dooley mentioned that PwC tries very hard to measure its partners in a number of areas. According to PwC’s global strategy practice leader Saul Berman, cross-selling is an increasing focus of the firm and represents a growing element of the measurement of the partners’ performance.
Today, a number of law firms are trying to focus on cross selling their services, without really thinking about what’s needed to make it succeed. Aligning compensation – and focusing on the elements that make the practice measurable – is critical to success. PwC figured that out. Will the law firms?