Lions, Tigers, Consultants, Oh My!
Lions, tigers, consultants, Oh my. The negative press continues about consulting and I, for one, am embarrassed. I can only surmise that some of the founders of what are now large consulting firms would also be embarrassed and maybe even angry:
Bill Bain, of Bain & Co.
Marvin Bower and James McKinsey, McKinsey & Co.
Bruce Henderson, Boston Consulting Group
And so on…
These, and other firms, were formed in a different time when professionalism meant something powerful. Marvin Bower was recognized as a Fellow in the Institute of Management Consultants, USA, in 1988 (the year I became a CMC®), but more on IMC USA later.
I wrote earlier this year (See: Reputational Damage) about some earlier examples of negative press including a nearly $600 million dollar settlement over consulting work with Opioid companies, with corruption in Angola, a criminal probe in French campaigns. In the interim others negative press was released. The New Republic has an article alleging a major consulting firm’s activities in the hospital not-for-profit world has had “systemic elimination of humane healthcare for the poor” and a general lowering of the quality of healthcare available as healthcare becomes more of a commodity. In her book, The Big Con: How the consulting industry weakens our businesses, infantilizes our governments and warps our economies, Rosie Collington, says that government (UK) spent millions on consulting services during the pandemic. Collington argues that the added lack of transparency around consulting firm’s work also leave the potential for huge conflicts of interest. “Historically, these firms have offered a very narrow view of what good economics and good government looks like. We can’t argue they’re neutral in their advice.” Finally, Insider wrote about McKinsey cutting 2,000 jobs. Bloomberg reported that they seek to eliminate support roles to help save money for consultant roles, noting that in the past five years the firm added 17,000 employees.
Oh my, indeed.
It has been personally relayed to me by a colleague that in the mid-80’s as IMC USA was adopting a Code of Ethics for its members, a member of a large firm reported said, “We cannot accept a Code of Ethics, we have to do what is necessary.” Ponder the effect (repeat). Prophetic words, even if that is not a direct quote and only a sentiment.
Would many of these examples have been prevented if the management consultants and/or their firm had subscribed to an enforceable Code of Ethics? From what I hear about the beliefs and founding values of Marvin Bower, things might just be different today. *
This all suggests that it is high time for consultants to adopt and subscribe to both an enforceable Code of Ethics and a Code of Conduct. Those who do so, separate and differentiate themselves and their consulting practice from those who don’t. I have done so since 1988. It’s not too late for you. Be different. Be professional. Be proud of How you practice.
So, do your career and yourself a favor, spend a couple minutes at www.imcusa.org, check out what members stand for, our Code of Ethics, and even the CMC®. It will only take a few minutes; what is your reputation worth?
* The business with high ethical standards has three primary advantages over competitors whose standards are lower:
A business of high principle generates greater drive and effectiveness because people know they can do the right thing decisively and with confidence. ...
A business of high principle attracts high-caliber people more easily, thereby gaining a basic competitive and profit edge. ...
A business of high principle develops better and more profitable relations with customers, competitors, and the general public, because it can be counted on to do the right thing at all times. By the consistently ethical character of its actions, it builds a favorable image.
