Specialist firms

I’ve written a lot in this blog about specialisation, particularly clients’ relentless quest for expertise in a world that has become increasingly flat from a skills point of view. But a recent article in the Harvard Business Review had made me wonder how far it will all go, or – less positively – where it might all end.

What on earth does the consulting industry have in common with the golden age of Hollywood? Quite a lot, I think.

It is tempting for large consulting firms to think they are immune from competition from independent consultants. The idea that a firm such as McKinsey might be threatened by a freelancer seems as laughable as a cartoon elephant standing on a chair above a tiny mouse.

But the truth is that competition has a domino effect – two domino effects, actually, depending on whether demand for consulting is growing or falling.

Let’s divide consulting firms into four groups: