Introduction: When consultants become the accused
During the COVID-19 pandemic, consulting firms played a crucial role in assisting governments. However, this support often came under scrutiny. Leading the accusations was McKinsey, one of the largest global firms, criticized for exorbitant fees, political proximity, and opaque fiscal practices. These critiques highlight broader questions: are consultants strategic partners or opportunists exploiting crises?
I – Growing reliance on consultants
Governments and companies increasingly rely on consulting firms to navigate complex periods. However, this dependency raises concerns about the efficiency and ethics of these partnerships.
Case Study: McKinsey in Canada and France
In Canada, McKinsey reportedly charged $35,000 per day to assist Quebec in managing the health crisis. In France, the firm earned over €2 million per month to steer the vaccination campaign. These astronomical figures fueled widespread distrust and questions about the real impact of these interventions.
II – Criticism of large consulting firms
Large firms like McKinsey, Deloitte, and Ernst & Young dominate most public contracts, often sidelining smaller players. These practices strengthen their monopolistic positions and overshadow local actors better suited to specific needs.
Anecdote: A Small Consulting Firm in India
Vikas Solutions, a Delhi-based consultancy, recently lost a tender to a large international firm despite offering more tailored solutions. This case illustrates the challenges SMEs face in competing with giants benefiting from global recognition.
III – The need for structural reform
For consulting firms to deliver real value, reforms are necessary:
- Regulate contracts: Cap fees and partnership durations.
- Promote local actors: Include SMEs in public tenders.
- Enhance transparency: Require detailed reports on delivered outcomes.
Study: Consulting Models in South Africa
The South African government introduced quotas favoring local firms in major public projects. This initiative diversified approaches and stimulated the local economy.
IV – Consultants: Scapegoats or essential actors?
While criticisms are valid, they should not overshadow the critical role consultants play in solving complex problems. The key lies in the judicious and controlled use of their services.
Example: A Brazilian Agribusiness
AgriNova, a Brazilian SME, collaborated with a local firm to reorganize its supply chain during the pandemic. The result: a 15% reduction in costs and significant improvement in delivery times.
Conclusion: Balancing efficiency and ethics
Consulting firms, whether large or small, must operate with greater transparency and equity. For companies and governments alike, it is crucial to ensure that these partnerships are genuinely beneficial and aligned with their strategic objectives.
