Tuesday, September 23, 2014

Why Every Management Consultant Will Adopt CCTT

In short, every management consulting company (general and specialized, multinational and boutique) will adopt CCTT to radically increase their revenues, profits, cash flow and shareholders’ value. Opportunities too good (and too dangerous) to pass. Because those management consultants that do not adopt CCTT, will sooner or later go out of business losing to those who will adopt. And more likely sooner than later.

More specifically:

1.        In the previous section we proved beyond the reasonable doubt that every organization – commercial, government, NGO, etc. – will adopt CCTT as these tools and technologies make it possible to make a quantum leap in aggregate corporate performance. And for business entities – in their revenues, profits, cash flow and shareholders’ value.

2.        If an organization does not deploy CCTT and make a quantum leap in aggregate corporate performance, its will be either acquired by its rival that will or simply go out of business – due to an inevitable enormous productivity gap. As usual, businesses will be followed by government entities - at federal, state/provincial and local levels, NGO/NCO, academic institutions and other categories of organizations.

3.        Which automatically creates an enormous and global demand for CCTT and CCTT-based services – CPA, SCR and deployment of comprehensive corporate cockpit solutions. Organizations themselves possess neither the human resources nor the competencies required for CCTT adoption and making the quantum leap in aggregate corporate performance. Hence, they will need the services of management consulting companies – both strategic and specialized.

4.        Due to enormous switching costs, organizations will form strategic partnerships with strategic management consulting companies (one-stop-shops) capable of providing comprehensive ‘quantum leap’ corporate cockpit solutions. Creating lifetime ‘cash cows’ for their strategic partners – these solutions have to be periodically fine-tuned and adapted to inevitable changes in the external environment.

5.        Full-service management consultants will subcontract parts of comprehensive corporate performance maximization projects to specialized (‘niche’ consulting companies). Naturally, to stay in business, these niche players will have to use corporate cockpit tools & technologies in performing their services.

6.        This will create enormous global opportunities for management consulting companies to radically increase their revenues, profits, cash flow and shareholders’ value. Opportunities too good and too dangerous to pass.

7.        In other words, opportunities for exponential wildfire-like growth – both domestically and internationally. By (a) acquiring new clients and forming lifetime strategic partnerships with them and (b) acquiring rivals who do not adopt CCTT fast enough. In other words, those management consultants that do not adopt CCTT, will sooner or later go out of business losing to those who will adopt. And more likely sooner than later.

8.        Radical restructuring of an industry caused by introduction of fundamentally new products and technologies inevitable results in a significant consolidation of the industry in question. Therefore, we will inevitably see a lot of M&A in the management consulting industry – both domestic and cross-border. Both vertical – with strategic management consulting (SMC) powerhouses acquiring specialized (‘niche’) consulting companies and horizontal – with larger and stronger SMC acquiring smaller and weaker ones.

As successful quantum leap (CBA/SCR) consulting projects require deployment corporate cockpit software solutions, management consulting companies will have to merge with systems integrators offering Sophie-based software/information technology solutions. Or develop Sophie-deployment capabilities themselves. For all practical purposes, it will mean that ‘pure’ management consulting industry will cease to exist. Instead, it will be merged with a part of systems integration industry.

No comments:

Post a Comment