Why companies afford management consultancies precisely because of the threat of economic losses
The signs are that recession is beginning, the consulting market remains stable and is growing, especially in the areas of digitization and organization. The annual Lünendonk Study 2019 „Management Consulting in Germany“ deals with the current situation of national and international management consultancies in Germany and the motives of their clients. We as ADCONIA GmbH also took part in the survey. The Lünendonk Study 2019 presents, among other things, the drivers for consulting projects from the customer’s point of view. The following is a summary of the most important reasons for projects aimed at ensuring competitiveness.
Digitisation as a value driver
Triggered by the increasing digitalization of all areas of work and life as well as the good overall economic situation, the transformation needs of companies represent a large part of the consulting services sold. Big data analytics, industry 4.0, digital platforms and artificial intelligence represent only a fraction of the challenges facing companies.
We can also find this trend in the areas of purchasing and supply chain management and have been accompanying our clients in digital transformation for many years. Among other things, our Digital Value Navigator successfully supports our customers in selecting and implementing the right and suitable system solution for handling the electronic procurement process.
Companies in the project chaos
In recent years, most companies have initiated a large number of digitization projects whose management exceeds their internal capacities, so that consultants have to bundle and coordinate the numerous individual initiatives of the business units and departments. Idea, project and action management is of course one of our core competencies, and this is the only way we can ensure the successful completion of our own projects and those of our customers.
Given the current economic situation, it is also to be expected that the need for restructuring and efficiency enhancement projects will continue to increase. According to the current Lünendonk study, companies such as „AlixPartners, Alvarez & Marsal or Andersch have already recorded strong growth in recent years. A.T. Kearney also set up its own restructuring unit in 2018, as the consultants anticipate an increasing demand in this field.“
The first choice should first be to increase efficiency and thus the value contribution of the individual divisions to the company’s success on a digital and analogue level. Creating transparency, utilizing bundling effects, increasing resource efficiency, optimizing processes and workflows, and utilizing hidden knowledge are just a few of the relevant topics that are part of our portfolio.
The coming economic downturn will result in budget cuts and shifts, as well as the questioning of investments. It is to be expected, however, that the need for transformation will be so great that companies cannot afford to cut costs at this point, otherwise they will jeopardize their continued existence.