Consulting Industry vs. Consulting Profession
The consulting industry is a broad, inclusive term that refers to all companies and individuals that offer consulting services, or sellers of expertise. These can range from large multi-national firms to boutique firms that specialize in specific industries or functions and to individuals, all together make the industry. But we all know this and we know it is big business, estimated worldwide annual revenue (2023) in excess of USD 700 Billion.
The consulting profession, on the other hand, refers to the skills and expertise that consultants, e.g., humans, bring to their clients. This can include specific industry knowledge, functional expertise, and problem-solving skills. To better understand who is a consultant in this profession, allow me to use CMC-Global’s definition of a management consultant:
A management consultant shall be defined as (1) one who helps organizations to solve issues, create value, maximize growth, and improve performance (2) through the application of their knowledge, techniques, and assets (3) to provide objective advice, expertise, and specialist skills which the organization may be lacking. This definition shall include those consultants who work alone as a solopreneur, as a partner or employee of a practice or firm and those who work as internal consultants in an organization or government body whose primary purpose is not management consultancy. [Note: Numbers in parentheses added for emphasis. Ed.]
Note the inclusivity of this definition – one (1) who helps organizations, (2) through the application of their knowledge (3) to provide objective advice which the organization may be lacking.
One of the key differences between the consulting industry and the consulting profession, I believe, is the focus on delivering value to clients. While the industry is driven by profit and revenue growth, the profession is focused on delivering results through people who help clients meet their objectives, all the while behaving in an ethical, professional, competent manner. Not all consultants fit this definition of a professional.
Another difference between the two is the level of expertise required to be successful. While anyone can start a consulting firm and offer their services, the consulting profession requires a high level of education, training, and experience. Again, in my case, it additionally means living up to an international set of consulting competencies.
A professional colleague suggests that consulting professionals have these characteristics:
They understand that consulting is a profession, not a paycheck between jobs
They are a member of their country’s Institute
They have signed an enforceable Code of Ethics and a Code of Professional Conduct and are held to account by their peers
They can choose to become Certified (CMC®), the Gold Standard for professional, ethical consulting
They continuously improve through professional development
They have training in ISO 20700, an international standard detailing good practices in management consulting
Note: some of the larger consultancies do have their own internal codes of Conduct but, in contrast, those are monitored internal to the firm.
Whether you are looking for general business advice or specific expertise in a particular area, it is important to work with a consultant or a firm that has a deep understanding of your industry and the skills to help you achieve your strategic goals. A professional management consultant not only has certain skills that you may need but they also consult differently – they adhere to internationally known consulting competencies and Codes of Ethics and Conduct. The choice is yours.
