Klynetic Innovation ᵇʸ ᴳᵃʳᵉᵗʰ ᴰᵃᵛⁱᵉˢ’s Post

Today, Stephen Foley and Simon Foy of the Financial Times reported that hyped up and heavily branded consulting firms step up efforts to push out their low performers (https://lnkd.in/ecBxWkXv).   Consulting is a diverse industry. When times are good, they are very good for consulting firms. But when they are bad, they are horrible. Whilst these consulting firms keep telling the business world and #CEOs that they hire the most talented consultants, the reality is completely different – these firms are primarily made up of below average graduates. Many partners of these consulting firms will struggle to get similar jobs in Meta, Google, Salesforce, Oracle or Amazon.   When demand from clients looked limitless, they recruited staff as if there were no tomorrow. The pace of #hiring during the #pandemic meant that these firms recruited too many young people to be able to train them properly and had too few senior people to provide guidance and continuity. It also meant that, when #growth eventually slowed down, it had no option but to start shedding staff. Clients grappling with high #inflation, #interest rates and economic #uncertainty have cut back on fancy consulting projects. A dearth of mergers and acquisitions has led to a slump in demand for support with due diligence and company integrations. As job opportunities at #startups and #PE firms have withered, fewer consultants have left the firms of their own accord, reversing the spike in attrition rates during the pandemic.   Strategy consulting, the most vaunted variety, is the most controversial. In short, today consulting is looking less like a licence to print money and more like providing pool of temporary labour. For example, it was announced recently that BT Group’s CEO, Allison Kirkby, has hired Thomas Meakin on an interim basis from McKinsey to help shape its strategy.   Consultants with insights will still do well. In a more competitive market, those who think they can dazzle a client with flashy PowerPoints and bill him/her by the second forever will starve. 

Interesting insights from the Financial Times on the evolving dynamics within consulting firms, particularly McKinsey & Company's recent efforts to manage its workforce. The article sheds light on McKinsey's mid-year performance reviews aimed at identifying underperformers and encouraging their departure, a strategy reflecting broader industry trends towards increased attrition. Since 2022, we have seen the average attrition rate from MBB firms in Europe go from 15% to 2%, a staggering decline and obvious concern for the top consulting firms in the region. With the Professional Services sector grappling with shifts in job markets, a decline of M&A/PE activity (until recently), and post-pandemic realities, firms are recalibrating their approaches to talent management. As the industry navigates these changes, it'll be intriguing to observe how hiring, promotions, and organisational dynamics evolve in the coming years... #ProfessionalServices #MBB #Attrition Read more here: https://lnkd.in/ekqK6SRh

Has McKinsey "Jumped the Shark"? I find it interesting that a company who claims to be the expert in corporate performance improvement, is having major issues managing their own corporate performance. It looks like the McKinsey method of screening, hiring, onboarding, managing and mentoring is a complete failure. McKinsey has more recently warned about 3,000 consultants that their performance was unsatisfactory and would need to improve, Bloomberg News reported in February. The firm gave these employees a so-called “concerns” rating as part of their performance reviews in recent months. Those employees are typically given about three months to show improved performance before they are advised to exit.  https://lnkd.in/eSFvRVtS

Are you navigating organizational transitions? Learn from McKinsey's bold move: offering 9 months' pay and career-coaching services to departing staff. Discover key insights for businesses: Transition Support: Access to career coaching and resources for a smooth exit. Remote Work Dynamics: Flexibility to job search while on payroll highlights evolving remote work trends. Performance Management: Insights into McKinsey's previous actions shed light on effective performance management strategies. Organizational Culture: Explore McKinsey's commitment to employee growth and leadership development. Industry Trends: Understand broader consulting industry trends to inform strategic decisions. #BusinessTransitions

Studies show that firms with effective talent acquisition strategies are 21% more likely to achieve higher profitability than those without. In fact, a Deloitte study found that companies excelling at recruiting experience 3.5 times more revenue growth than their peers. At W Talent Group, we identify top talent for accounting firms, Fortune 500 companies, and entertainment business management. We ensure our placements align with your firm’s culture and goals, driving your success. 💼 Ready to grow with top-tier talent? Reach out to Matthew E. Wallack at mattw@wtalentgroup.com or visit wtalentgroup.com! #TalentAcquisition #AccountingProfessionals #FutureOfWork #WTalentGroup #CPAFirms #EntertainmentBusiness #StrategicHiring #GrowthOpportunities

𝐂𝐨𝐧𝐬𝐮𝐥𝐭𝐢𝐧𝐠 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐅𝐚𝐜𝐞𝐬 𝐒𝐡𝐚𝐤𝐞𝐮𝐩 𝐚𝐬 𝐅𝐢𝐫𝐦𝐬 𝐋𝐨𝐨𝐤 𝐭𝐨 𝐌𝐚𝐧𝐚𝐠𝐞 𝐒𝐭𝐚𝐟𝐟 𝐋𝐞𝐯𝐞𝐥𝐬 The consulting industry is experiencing a shift as historically low voluntary departures challenge the traditional "up or out" model. Firms like McKinsey are implementing rigorous mid-year reviews to address underperformance, while others like Deloitte and KPMG are resorting to similar measures to manage staffing levels. 𝐊𝐞𝐲 𝐟𝐚𝐜𝐭𝐨𝐫𝐬 𝐚𝐭 𝐩𝐥𝐚𝐲: 𝐑𝐞𝐝𝐮𝐜𝐞𝐝 𝐯𝐨𝐥𝐮𝐧𝐭𝐚𝐫𝐲 𝐝𝐞𝐩𝐚𝐫𝐭𝐮𝐫𝐞𝐬: Shifts in the job market have led to consultants staying put, impacting traditional promotion patterns. "𝐔𝐩 𝐨𝐫 𝐨𝐮𝐭" 𝐦𝐨𝐝𝐞𝐥 𝐮𝐧𝐝𝐞𝐫 𝐩𝐫𝐞𝐬𝐬𝐮𝐫𝐞: With fewer departures, opportunities for advancement are squeezed. 𝐌𝐚𝐧𝐚𝐠𝐢𝐧𝐠 𝐬𝐭𝐚𝐟𝐟 𝐥𝐞𝐯𝐞𝐥𝐬: Consulting firms are adapting to a new normal, implementing performance reviews and exploring options to manage headcount. ̲𝐈̲𝐟̲ ̲𝐲̲𝐨̲𝐮̲'̲𝐫̲𝐞̲ ̲𝐢̲𝐦̲𝐩̲𝐚̲𝐜̲𝐭̲𝐞̲𝐝̲ ̲𝐛̲𝐲̲ ̲𝐥̲𝐚̲𝐲̲𝐨̲𝐟̲𝐟̲𝐬̲,̲ ̲𝐰̲𝐞̲ ̲𝐜̲𝐚̲𝐧̲ ̲𝐡̲𝐞̲𝐥̲𝐩̲:̲ 𝐅𝐫𝐞𝐞 𝐜𝐨𝐧𝐬𝐮𝐥𝐭𝐚𝐭𝐢𝐨𝐧: Get expert advice on your next steps with a confidential consultation. 𝐓𝐚𝐥𝐞𝐧𝐭 𝐕𝐢𝐬𝐚 𝐬𝐮𝐩𝐩𝐨𝐫𝐭: We can assist you with navigating the Talent Visa process if needed. 𝐓𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐜𝐨𝐧𝐬𝐮𝐥𝐭𝐢𝐧𝐠: While projections point to improved growth, achieving pre-pandemic staffing patterns may take time. This presents an opportunity for both firms and consultants to adapt and thrive in the evolving landscape. #consulting #careers #layoffs #talentmanagement #ukvisa

How beneficial would it be if universities offered transitional stipend options while PhDs battle their way through this tough job market? A colleague mentioned this service to me some time ago. I was impressed that McKinsey actually wants to push their employees to leave and find the best opportunities (and pay them to do it too!). I was not, however, aware that this same service was also being used as part of the layoff process. What is interesting is Liz's comment "...may have trouble getting hired by non-consulting firms because they are highly paid and their accomplishments may not translate easily into a role on the client side." This reminds me of how difficult it is for Ph.D. holders (who are making as little as $20k in certain instances) to transition to industry. It is a case of having to go an extra 10 miles, just to get an interview. I will share more insights on this in the future, but my advice to PhDs who are pre-defense and want to go industry, PLEASE start looking for a job and networking eight months before you graduate. You will be competing with laid off consultants from amazing companies as such here.

The emperor has no clothes, and the courtiers are beginning to talk. Getting paid handsomely to confirm your organization's biases, regurgitation at great expense whatever is the current fashion in management studies, and exaltation of the brand & it's imprimatur above all else are just a few of McKinsey's sins.

It's concerning to see the trend of increased efforts to push out low performers in professional services firms, as highlighted in the article. The shift from voluntary to involuntary attrition is a significant change in the industry, and professionals need to stay informed about these developments. It's clear that the post-pandemic landscape is impacting staffing and promotions in consulting and accounting firms, and professionals must adapt to these changes. This article serves as a reminder for individuals in the industry to stay proactive and continuously strive for excellence in their work. It's a challenging time, but staying informed and adaptable is key. #ProfessionalServices #IndustryTrends #Adaptability