The following article was provided to Consulting magazine by guest contributors Daniel Albright and Niraj Singhal of NTT Data Services.
"Are you really a consultant? Given the dilution of the term 'consult', professional services must provide more value than just domain expertise. The value of consultants must evolve to more outcome-based models. Successful firms are focusing on collaboration, innovation and outcome-orientation for long term value maximization." -Daniel Albright & Niraj Singhal
Across industries and across continents, digital transformation is sweeping through nearly every aspect of society, and organizations of all kinds are eager to adapt. In many cases, companies enlist help from outside consultants to help them assess their technology needs and plan for a swift and successful transition. But just as digital innovation has disrupted businesses in recent years, the role of the consultants they depend on is changing as well. Under pressure to deliver convincing returns on investments, clients are demanding that consultants provide more than impressive resumés and elaborate presentations – they want actual, measurable results. And – as the pandemic lingers and business results hang in the balance – they want them fast!
This heightened demand for outcome-based consulting models stems from several related factors, not the least of which is the dilution of the word "consult" in all its forms. These days it seems every business has "consultants" on staff or claims to offer "consultative solutions," which puts the onus on bonafide professional consultants to differentiate themselves and prove their worth. At the same time, the traditional consulting "bubble" seems to have burst, as ever-contracting budgets, outsourcing, and mediocre performance have led many businesses to question the hefty premiums charged by big-name consulting houses. Moreover, the divide between strategy and execution is shrinking, and clients are demanding that consultants follow up their research and strategies with real action and concrete value.
As technology continues to play an ever-more integral role in every aspect of business strategy and operations, traditional IT service providers have an opportunity to move upstream and serve as value-added business consultants. What follows is a closer look at how these two worlds are coming together, what client companies should look for in a consultant, and how consultants themselves can be more successful in this digital age.
What clients want
Traditionally, the consulting world has been ruled by a handful of major players, whose portfolios of blue-chip clients were built on reputation, scale and expertise. The mega-firms developed horizontal and vertical specializations (with each area boasting of hundreds of consultants), making it easy for clients to engage them in any field of need.
But in this time of constant digital disruption, economic uncertainty and cultural unrest, the old models of success no longer apply. We think the winners of tomorrow will have several specific qualities in common:
- Adaptability: In today's fast-paced, technology-driven marketplace, size and specialized expertise become less important. What matters more is flexibility and agility. The ability to learn from the past and adapt to the future with an ever-evolving mix of skills will be key to success.
- An execution mindset: Bringing years of experience and strategic insights to bear on long-term plans will always have value. But to hit a rapidly moving target, you have to be able to pull the trigger quickly. That's why today's most successful consultants are leveraging frameworks, accelerators, playbooks and quick-start kits to reduce the time and effort it takes to execute and produce tangible returns.
- A network of resources: In-house expertise is important, but meaningful technology advancements don't occur in a vacuum. It's essential for consultants to build an ecosystem of partnerships with technology startups, product companies, and complementary providers that can bring a holistic set of solutions to bear for the client's myriad challenges.
Ultimately, forward-thinking professional services firms are adopting non-linear models for growth and profitability. Leveraging new technologies and processes rather than over-reliance on just people is more likely to result in long-term success.
What consultants must do
To rise above the noise and deliver actual value to clients, consultants must re-invent themselves and aspire to deliver something beyond mere expertise in a domain. Here are three ways we believe new age consultants can help clients make the most of their engagement:
- Advise and Innovate: The very word "consulting" is associated with providing advice, yet so many consultants seem to present more problems without offering any clear solutions. They may use their research to verify what the client already knows, rather than searching for a new way to overcome obstacles. To be of value in the time of digital transformation, consultants can't fall back on prior expertise; they must adopt an attitude of innovation and become as nimble as the technology itself.
- Focus on future-proofing: One monumental challenge facing businesses is the urgency to remain relevant and not be continually overtaken by more technologically advanced competitors. Hence, consultants can add tremendous value by encouraging and accelerating the client's adoption of emerging technologies such as automation, artificial intelligence, augmented/virtual reality, and blockchain – even if they don't ask for it specifically. This forward-looking mindset will be key to remaining flexible and responsive to rapidly changing market conditions and consumer demands.
- Demonstrate a commitment to success: The complex challenges of digital transformation are rarely solved with one-off, short-term projects. Clients need consultants to avoid sugarcoating hard truths, deliver honest advice in the client's best interests, and stick around long enough to see the plan through to execution. That's how trust and mutually rewarding relationships are built.
So, while the word "consultant" may be grossly overused, the contributions of qualified professional advisors are no less valuable. In fact, as technology continues to reshape our lives and jobs in ways we never imagined, businesses need the guidance of strong consultants now more than ever. To help clients navigate these uncharted waters, consultants must grow beyond their own expertise to become strategic counselors, deft collaborators, and most of all, suppliers of irrefutable business improvements and results.
About the authors
Daniel Albright is Senior Vice President & Global Head of Consulting, NTT Data Services, overseeing NTT Data Services' global consulting business.
Niraj Singhal is Senior Vice President, International Consulting, NTT Data Services.
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