Guru: Temperatures Rising

CM: Do you believe that the attitude clients have toward their consultants has changed?
Treacy: The complaint about this industry that we've heard for a long time is that it has a lousy value proposition. And I don't see consulting as good value. The heart and soul of the problem is the cost problem. You've got an industry that is basically charging between three and seven times direct pay for the people that you hire to consult. That is a very, very rich price to pay for the flexibility. And then there is a dubious claim that these people represent distinct expertise. There is no question that the most senior guys who sell work are quite distinctive and often experts, but when you go look at the work that is actually done, what is it, exactly? I mean, how many companies can't run a segmentation analysis or a comparative cost analysis? Ninety-five percent of the stuff is found inside the craftsman's toolbox of strategy. If there isn't a fundamental shift in client attitudes, I'll be disappointed. I really do think that the industry needs a big shake-up.