Francis WadeFramework Consulting · Consultant who solves tough strategy and productivity problems for corporations | Author | Web-Speaker | Jump Leap Long-Term Strategy Podcast

Why a company retreat is needed after McKinsey Leaves snippet 1

Name: Why a company retreat is needed after McKinsey Leaves snippet 1
Uploaded: 2021-03-23T17:52:13+00:00
Duration: 45 s
Channel: Francis Wade
Description: In this brief commentary, the speaker argues that external consultants cannot fully grasp a company's business within a short engagement, and therefore…

23 Mar 2021 · 1 min

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In this brief commentary, the speaker argues that external consultants cannot fully grasp a company's business within a short engagement, and therefore should not replace the executive team—particularly the CEO—as the chief strategist. While consultants can provide valuable technical analysis, their recommendations must be selectively integrated by senior managers because consultants often miss critical factors such as cultural nuances, human‑resource considerations, and change‑management dynamics. Consequently, the likelihood that a consultant’s report is entirely correct is low, especially in those weak areas.

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Ultimately, the fact is that consultants can't understand the entirety of your business in just a few months. This means they shouldn't become your organization's chief strategist. That job remains in the executive team led by the CEO. Whether their recommendations confirm, deny, or augment prior wisdom, your senior managers should consciously incorporate them into their thinking. But there's a caveat. Not every recommendation they made is worth pursuing. Why? They simply cannot take into account all the factors necessary to lead your business into the future. As such, the chances of their report being completely correct are low, especially in the areas in which they tend to be weak: cultural differences, human resources, and change management. While their technical analysis might be on point, it won't be perfect.