MBB strategy consultancies panned as ‘no help at all’ by project managers

The world’s three largest strategy consulting firms are little to no help when engaged for corporate transformations, according to a new industry survey. Commissioned by mid-market rival Emergn, the study found that just over one-in-ten respondents believed the trio were worth hiring.

For years, the so-called MBB – consisting of advisory giants McKinsey & Company, Boston Consulting Group (BCG) and Bain & Company – has dominated the strategy consulting market. Routinely lauded as the best and brightest in the industry, the trio hoovers up contracts with top corporate and government entities, while also attracting hordes of graduate talent thanks to the MBB’s reputation for being a ‘CEO factory’.

But a recent report has suggested that the three largest strategy firms simply do not live up to those expectations, at least in terms of corporate transformation projects. Among its headline findings is the standout statistic that only 13% of respondents felt that bringing in an MBB consultant to aid change efforts had actually done more good than harm.

The study, commissioned by Emergn – a consultancy focused on digital change – took in the opinions of 700 executive staff and project managers in the UK and the US, who were all involved in operational change at companies with at least 1,000 employees, and a minimum of $500 million for their average global turnover.

The fact the poll was commissioned by a firm looking to compete with the MBB for business means it might be worth taking the findings with a pinch of salt – however, the selected pool of respondents might mean the likes of McKinsey, BCG and Bain would want to look into it further, as those heavyweight clients are their bread and butter.

Briefcase consulting

According to The Times, which broke the story, all three firms were approached for comment. However, at time of writing, none appear to have issued a rebuttal of the study. Predictably more forthcoming with a statement was Emergn’s founder and Chief Executive Officer Alex Adamopoulos, who used the opportunity to lay into “big consultancy armies with briefcases.

Commenting on why satisfaction with the MBB might be so low, Adamopoulos, added, “They walk into organisations and confidently try to get them to fit into a predesigned transformation strategy mould. But what organisations need is a solution that works in their context.”

And in terms of just how low that satisfaction might be, the data gathered for Emergn by market researcher Censuswide showed that while 3% said MBB consultants had on-balance had a negative effect, a damning 84% went further to say that they had been “no help at all”. Speaking to chief executive, chief technical and chief operating officers, as well as project managers or departmental managers, the researchers also showed that this might be having an impact on the willingness of leaders to embark on change programmes in the future.

Transformation fatigue

Amid an economy in constant flux, where multiple headwinds mean firms have to constantly adapt to protect their bottom-lines, 70% of respondents recognised that effective transformation projects were important for competitiveness. But half of the executives polled said that in the current state of play – where projects regularly fail, and alleged expert consultants provide “no help” – they had considered quitting their jobs due to “transformation fatigue”.

The release comes after a growing wave of bad press for the MBB. McKinsey has seen its reputation bruised by a number of scandals, including its role in the US opioid crisis, its dealings with Saudi Arabia, to its alleged influence in a state capture scandal in South Africa. Bain was temporarily banned from government contracts in the UK for its own alleged role in that same gate. Meanwhile, BCG has suffered from similar allegations, and also faced a storm over ‘nepotism’ in its UK wing.

With the wider consulting industry feeling a collective slowdown over the past 18 months, the damage caused by these cases has not helped the MBB. Over the last year, the trio has also announced a number of job cuts, while delaying some promotions to partnership, and deferring some partner compensation to smooth cash flows last year.