"2024 wasn’t a great year for consulting." That’s the bottom line from the latest Consulting Market Navigator report by Kennedy Intelligence and the IMF.
As Nathan Simon, partner at Kennedy Intelligence, points out, consulting growth outpaced nominal GDP in the early 2010s. That trend slowed in the late 2010s and briefly rebounded in 2021–2022, but has now faded. His take:
"Unfortunately, the double-digit growth rates of 2021–22 were a one-off… as talent-strapped clients grappled with supply and business model disruptions."
I haven’t run the numbers like Kennedy Intelligence, but from my own work with mid-sized boutiques and larger firms, I see the same trend: Winning and growing work is getting harder, and the rules of the sector are shifting.
Most critically, the old ways of building and growing a consulting firm are under pressure. It’s time to move beyond the capability-plus-capacity stance.
Many consultancies still sell primarily on capability:
"We know how to do [X]… Who here needs [X]?"
This worked when clients had more need for “advisory services” - and fewer substitute solutions. But today, that model is breaking down for two key reasons:
1️⃣ Clients are more cautious. Kennedy Intelligence’s research shows that executives are hesitant to make big bets. Discretionary spending is under scrutiny… meaning “advisory” is, too.
2️⃣ Alternative solutions are everywhere. AI and software providers now promise "consulting as software” at a fraction of the cost. Whether these claims are valid or not, when client executives see tech offering similar-sounding solutions, consulting firms must work harder to justify their fees.
But the real challenge isn’t just external, of course: It’s internal and, yes, self-inflicted.
If your pitch is "We have deep expertise in [X]" – without linking it to a pressing business issue and a clear, high-value outcome – you’re not giving clients a compelling reason to hire you.
Consulting buyers have never cared about your skills in isolation. They care about how quickly and reliably you can solve a business problem. And today, they’re scrutinizing that harder than ever.
Yet most consulting firms are still structured around capability selling. The result?
🚧 Too much focus on expertise and capacity. Firms describe what they do rather than the specific outcomes they drive.
🚧 Too few compelling value propositions. Most pitches lack the clarity and rigor of an investment banker's deal presentation.
🚧 Not enough well-defined client success journeys. Many firms operate without a structured methodology linking client issues to measurable impact.
In my view, this is why so many firms are feeling the pressure—there simply aren’t enough clear, compelling business cases for hiring them. Unless firms shift their approach, that pressure will only increase.
Recommended reading: The Biggest Mistakes Consulting Firms Made in 2024
If your firm’s growth is stalling, it’s time to rethink how you position your expertise. The shift?
📌 From selling capability to solving high-value business problems.
📌 From pitching expertise to crafting a clear, compelling business case for why hiring your firm is a strategic move.
📌 From reactive client-chasing to intentional, repeatable business development.
Here’s how to get started:
1️⃣ Define the specific, high-stakes business issue you solve. Clients don’t buy expertise - they buy solutions to expensive, urgent problems. Make sure yours is clearly articulated.
2️⃣ Formalize the client journey to success. Map out a structured, repeatable process that links client issues to tangible business outcomes. This will make your work easier to buy and command higher fees.
3️⃣ Build a thought leadership and business development engine. A compelling proposition is only valuable if the right people see it. Invest in systematic outreach rather than relying on word-of-mouth or sporadic networking.
By taking these steps, you create propositions that make it difficult for ideal clients to say no - and that protects your consulting firm from market pressures, order-taking, internal chaos, and complexity cost.
If you’re leading growth at a mid-sized boutique or working toward senior partner at a larger firm, you must take this shift seriously. That means investing the time, effort, and strategic capital to build a business case for your firm that stands out.
I’ve seen firsthand how high-performing firms make this transition. The results? More substantial differentiation, better clients, and a more resilient business model - one that isn’t at the mercy of market cycles.
The firms that thrive in the next 24 months will move beyond selling capability and start selling solutions with intention.
If your consulting firm is facing headwinds, ask yourself:
🧐 Are we selling expertise - or solving a high-value problem?
🧐 Do our clients see us as an investment - or an expense?
The answers will determine whether your firm grows - or stalls - in the years ahead.
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