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[–] 9 points 1 year ago* (last edited 1 year ago) (3 children)

Business consultations always look like such huge grifts. Here is the reason why they are so expensive though: many times startups and companies that take consultation fail and declare bankruptcy and don't pay the consultancy fees they were supposed to pay. So they charge others extra to (over) compensate. I wonder how they justify their existence, probably by coming up with some made up statistics about how they make many companies more successful. I am pretty sure they are also behind AI enshittification by suggesting companies to jump on the band wagon.

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  • [–] 15 points 1 year ago (2 children)

    They’re expensive because they’re cover for the executives to make a move. The executives can shield liability and justify any change by saying they did it in consultation with a big firm. It’s virtually impossible to pierce that with a lawsuit.

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  • [–] 7 points 1 year ago

    Results are good:

    • Business CEO takes credit, shareholders are happy with CEO
    • Consultancy got paid, shareholders are happy

    Results are bad:

    • Business CEO blames consultancy, shareholders don't blame CEO
    • Consultancy got paid, shareholders are happy

    absolutewin.jpg

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  • [–] 7 points 1 year ago

    Worked at a company that would give money to McKinsey frequently for decisions. When the decisions went well, they would pay themselves on the back for their insight and leadership. When they went wrong, well they just got bad into from the consultancy.. not their fault

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