Tag Archives: consulting

German management consulting market

I recently did an analysis on the German consulting market. I understand that tech start-ups are somewhat of a hype right now. But consulting is not the glamorous alternative anymore.

After years of high growth the market for management consulting, traditionally an early indicator for economic shifts, grows slower and margins of the top consultancies are deteriorating leaving the entire market vulnerable to price shifts across the board.

New in-house consulting units quickly learn from archetypes and replace external consultants gradually:

-Margins decrease since high value projects are not contracted out

-Higher competition for remaining tenders with mid-sized customers

-Moderate growth in demand is captured by in-house consultants

Management consultancies need to reconsider their generalist positioning as clients request more experts. Demand for implementation in addition to pure concepts puts new requirements on structures and costs of consultancies. Career models of consulting as a stepping stone starts to be outdated as market conditions limit potential for fast track careers.

 

Some of the players in the market start to react and activly work on their business model. Some seem still to hope, that pre-crisis conditions will eventually return.

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first step

I will try to focus on the topics around consulting, entrepreneurial spirit, live long learning. probable it will be somewhere between those topics. Are there established companies which employees still act and think entrepreneurial? Haw can start-up companies partner with them. What happens to traditional or family ownder companies when they are left without a leaderhip? What do I see in my daily work and what am I learning? We will see where this blog will be going. Most of the blogs I know and read regularily are by successful VCs or start-up entrepreneurs. But I think there are many people who are just about to get on the road. I also believe that established corporations do a poor job in fostering internal entrepreneurs.

this is just a first step.