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June 8, 2013 » 10:08 pm

Disrupting Organizational Consulting

My secret goal with Changemaker Bootcamp is to disrupt management and organizational development (OD) consulting.

My rough and totally unscientific estimate is that the budgets for 90 percent of all management and organizational development consulting projects would be better spent on capacity development for staff.

Good consultants already orient their work toward developing this capacity, but it comes at a premium cost. When compared to other consultants who are charging similar or higher costs but are providing far less value, these costs are more than justified. However, I think there’s a huge market opportunity for something that provides greater, broader value at a fraction of the cost.

Physical fitness offers an apt analogy. If you want premium service, you can hire a personal trainer. At the opposite end of the market, you can buy a book or search the web for tips on how to stay fit. There are many services in-between as well: DVDs, bootcamps, gym memberships, and so forth.

Fitness Market

With organizational work, there are two extremes with very little in the middle, and it’s skewed heavily (and needlessly) toward the high-end.

Organizational Effectiveness Market: What Is

There’s consulting on the high-end, and there are books and articles on the low-end. Most existing training programs fall on the low-end of the spectrum as well, because they are oriented primarily around delivering information rather than on shifting behaviors.

There’s no reason why the market for organizational effectiveness should not look more like the market for physical fitness.

OE Market: What Should Be

I think organizations in general — and, by extension, society as a whole — would be much better off if it did. I think services like Changemaker Bootcamp have the potential to shift the market in this way.

An Example: Strategic Planning

Consider strategic planning. Organizations bring in consultants to help guide the process or to provide content expertise. The vast majority of strategic planning processes focus on helping the leadership team develop the “right” strategy.

Some organizations really benefit from these processes, because they understand what strategy is, and, more importantly, they understand how to act strategically. I’ve worked with several organizations like this, where my primary role was to create the space for them to have the strategic conversation. Once they had that space, they were able to align quickly and execute effectively.

The vast majority of organizations — and people, it seems — don’t fall into this category. In these cases, hiring a consultant is a waste of money. These organizations don’t have the capacity to evaluate the end result, and they’re not likely to act on it regardless.

Unfortunately, these organizations often hire consultants anyway, and the results are predictably ugly — “strategies” consisting of long lists of goals that are too general and abstract to mean anything. Not that it matters, since no one in these organizations generally knows what those goals are anyway.

The worst part about all this is that developing a good strategy is relatively easy. Acting strategically is what’s truly hard.

Acting strategically takes practice. Good consultants can help organizations practice in the same way that personal trainers help their clients. However, most consultants do not take this approach. Even if they did, there ought to be more and better ways to support practice than consulting.

Changemaker Bootcamp’s approach is to offer a set of exercises for practicing asking generative questions. These exercises don’t require any specialized skill to do, but they can help develop specialized skills if repeated often enough with constructive feedback from others.

My hypothesis is that most organizations would benefit far more from having their staff go through exercises like these than they would from hiring expensive consultants lead them through traditional planning processes.

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3 Responses to “Disrupting Organizational Consulting”

  1. In your post about yourself , you ask for ideas … I have an idea I need help to take forward
    In different ways I have been working for social change. Disruptive ideas which seem possible t even probable to become a norm in the future.
    In the process, I come across various individuals and organisations engaged at the same task , but following different threads.

    I would like to weave a quilt out of these threads. That will usher in a new world. Any ideas?

  2. […] year, I wrote that I wanted to disrupt organizational consulting. My basic premise is that spending money on organizational consultants is a poor investment the […]

  3. […] “Disrupting Organizational Consulting,” I talk about commoditizing the low-end of the market. For most people, hiring OD (or management, […]

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