History Of Management Consulting Can Successfully Predict Its Future

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Rapidly accelerating at a rate 10 to 15 per cent per year, a figure significantly steeper than most industries or the GDP growth rate, the last decade of the twentieth century witnessed spectacular growth within the management consulting industry (Armbruster and Kipping 2003). While in 1980 fewer than five consultancy firms with more than a thousand consultants existed, in 1997 there were more than 30. This denotes that 80 per cent of all consulting experience was generated in the years between 1980 and 1997 (Sahlin-Andersson and Engwall 2002). The aim of the following essay is to evaluate whether the history of management consulting can successfully predict its future. The analysis will be supported with relevant case studies, which will…show more content…
Despite these explanations holding true, this generalization cannot accurately predict the relative growth of management consulting over other administrative roles. These statements suggest that the growth in management consulting must be sensitive to exogenous changes, however this remarkable run cannot solely be explained through economic convolutions (McKenna 2006).

Supporting sociologist Andrew Abbotts statement of ‘professions develop when jurisdictions become vacant’, the most probable stimulus behind the fuelled growth of management consultants, draws back to the 1930s, where the Glass-Steagall Banking Act 1933 and the Securities Act 1933, was passed to correct the evident structural problems and industry errors, which contemporaries considered caused the stock market crash in October 1929 and the bank failures of the early 1930s (McKenna 1995). These legislations prohibited the competing professional groups, such as lawyers, engineers and accountants, from continuing to act as consultants (Edersheim 2004), which had an unintended effect of fostering the immediate need for management consultants as a distinct profession (Stacey 2010). Responding to this remarkable opportunity, young consultants such as James McKinsey, George Armstrong, and Edwin Booz successfully institutionalized the field of management consulting within only a few years. In
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