How the Kaisen Acquisition Differentiates Deloitte

Deloitte recently announced it has acquired Kaisen Consulting as part of a plan to launch a global, full-service leadership development consulting practice. It's a smart move at the right time and gives Deloitte an edge in a fragmented market, primarily over the strategy houses.

Deloitte’s recent announcement that it is launching a leadership consulting practice sheds light on an HR consulting segment that is a study in contradictions. Leadership development is a mature, yet fragmented consulting sector characterized by low barriers to entry, where differentiation has historically been driven by charismatic thought leaders or trademarked approaches to training. And while there is a wealth of research that speaks to the failure of leadership development programs to drive business results, client demand continues to grow at a very fast rate. KCRA’s most recent estimate of client spending hovers at a CAGR in the high single-digits over the five-year period ending in 2016, making it one of the fastest growing areas of HR consulting.

Against this backdrop, Deloitte has invested considerable financial and intellectual resources in a leadership consulting capability that is highly competitive. The firm was, in fact, named to The Kennedy Vanguard of Leadership Development Consulting Providers in our 2013 study of the same name.* However, with the recently announced acquisition of alliance partner Kaisen Consulting, a boutique consultancy of about 40 occupational psychologists, Deloitte has strengthened its global market position.

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