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Wanted: A New Consulting

Business Model

John Sutherland needs your help. John is the founder and CEO of a midsized global
consulting fi rm that focuses on advising companies on strategy and organizational
issues. He is looking for a fresh, outside perspective on his company because he ACTIVITY
believes that his business needs to be re-envisioned.
John built his company over two decades and now employs 210 people worldwide. 169
John built his company over two decades and now employs 210 people worldwide.
169
The focus of his consultancy is helping executives develop effective strategies, improve
The focus of his consultancy is helping executives develop effective strategies, improve
John, 55 their strategic management, and realign their organizations. He competes directly
their strategic management, and realign their organizations. He competes directly
Founder & CEO with McKinsey, Bain, and Roland Berger. One problem he faces is being smaller than DESIGN
with McKinsey, Bain, and Roland Berger. One problem he faces is being smaller than
Strategy Consultancy his top-tier competitors, yet much larger than the typical niche-focused strategy con-
210 employees sultancy. But John is not preoccupied with this issue, since his company is still doing
sultancy. But John is not preoccupied with this issue, since his company is still doing
reasonably well. What really troubles him is the strategic consulting profession’s poor
reputation in the marketplace, and growing client perception that the prevalent hourly
and project-based billing model is outdated. Though his own fi rm’s reputation remains
and project-based billing model is outdated. Though his own fi rm’s reputation remains
good, he has heard from several clients that they think consultants overcharge, under-
good, he has heard from several clients that they think consultants overcharge, under-
deliver, and show little genuine commitment to client projects.
1 2 3
Such comments alarm John, because he
outline big issues generate possibilities prototype the business model believes his industry employs some of the brightest
› Think of a typical strategy- › Take another close look at the › Choose the three most diverse minds in business. After much thought, he has con-
consulting client. fi ve customer issues you selected. ideas of the fi ve generated.
cluded that this reputation results from an outdated
› Pick the Customer Segment › Generate as many consulting › Develop three conceptual business
and industry of your choice. business model ideas as you can. model prototypes by sketching the business model, and he now wants to transform his
elements of each idea on different own company’s approach. John aims to make hourly
› Describe fi ve of the biggest › Pick the fi ve ideas you think are
issues related to strategy best (not necessarily the most Business Model Canvases. and project billing a thing of the past, but isn’t quite
consulting. Refer to the realistic). Refer to the Ideation › Annotate the pros and cons of sure how to do so.
Empathy Map (see p. 131). Process (see p. 134). each prototype.
Help John by providing him with some fresh per-
spectives on innovative consulting business models.

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