In an attempt to discover how and why top-level executives hire management consultants, Goodman Lantern conducted a survey of 200 executives in Fortune 1000 companies. The results showed that the two main reasons behind the hiring of management consultants were as follows: 1. To give a much-needed shift in strategy 2. To bring a fresh perspective While the above-mentioned two reasons for hiring management consultants were the clear forerunners, various other significant needs were addressed as well – staffing, training, and fundraising, to mention a few. In terms of specialised expertise, financial and strategical advice were highly sought after with technology and human resources following closely behind. The Hiring Process On the subject of head-hunting management consultants, a large percentage of the interviewees alluded to using popular search engines such as Google and Bing. Generally speaking, more traditional recruitment methods such as phone calls, referrals, and company reputations were significantly less popular. Astoundingly, 63% of Fortune 1000 executives stated that their number one reason for not re-hiring a management consultant was arrogance. On the other hand, only 17% of the panel seemed concerned about the quality of work supplied by the consultant. From this, we concluded that a consultant’s attitude and general demeanour are the foundations for a successful partnership between executives and consultants. Management Consulting Trends According to our research, nearly 42% of Fortune 1000 companies are steadily moving towards hiring in-house management consultants rather than leaning on large consulting firms. Those who preferred to outsource stated that they were more likely to do so from a developing economy. Additionally, most of our interviewees preferred to stretch payment of consulting fees over the period of a year. Despite the expectation that the Management Consulting market will grow to over $350 billion within the next year, efforts to cut back on costs are still hugely significant. Primary and secondary research relating to markets, costs, industry trends, etc. often falls on an external research firm working in collaboration with the marketing consultant. Naturally, this would incur additional fees. When asked who should shoulder this financial burden, more than 50% of our interviewees were willing to contribute to the additional costs incurred.

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HIRING A
MANAGEMENT
CONSULTANT
September 2016

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In a comprehensive research we
interviewed 200 management
executives of Fortune 1000
companies, who have previously
hired Management Consultants

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WE ASKED EXECUTIVES:
Next Page

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1: Why did you hire a management consultant*?
* Respondents were allowed to provide upto
2 answers, hence the cummiltive % is higher
than 100
21
40.2 40.1
10.8
39.7
10.
20.
0
13
25
38
50
Short to medium-term
staffing needs
For major strategic shift Best practices across
industries and functions
Get Analytical Input Fresh perspective Training and skillset
augmentation
Fund raising Other
Answer Resp.
A1: Short to medium-term staffing
needs
21.0%
A2: For major strategic shift 40.2%
A3: Best practices across
industries and functions
40.1%
A4: Get Analytical Input 10.8%
A5: Fresh perspective 39.7%
A6: Training and skillset
augmentation
10.0%
A7: Fund raising 20.0%

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2: What specialised expertise did you hire consultants for*
* Respondents were allowed to provide upto
2 answers, hence the cummiltive % is higher
than 100
29
14.5
40.
24.6 23.7
0
10
20
30
40
50
Strategy Operations Financial Advisory Human Resources Technology
Answer Resp.
A1: Strategy 29.1%
A2: Operations 14.5%
A3: Financial Advisory 40.1%
A4: Human Resources 24.6%
A5: Technology 23.7%

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3: How did you choose your Management Consultant*?
* Respondents were allowed to provide upto
2 answers, hence the cummiltive % is higher
than 100
22
60.1
22.4 23.
17.2
0
18
35
53
70
Direct referrals Using a search engine. Eg: Google
and Bing
Based on content we discovered.
Eg: Blogs, articles or white papers
Choose a large consulting firm
based on their reputation.
Emails, letters or phone calls
received
Other
Answer Resp.
A1: Direct referrals 22.3%
A2: Using a search engine. Eg:
Google and Bing
60.1%
A3: Based on content we
discovered. Eg: Blogs, articles or
white papers
22.4%
A4: Choose a large consulting firm
based on their reputation.
23.0%
A5: Emails, letters or phone calls
received
17.2%

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4: While making a decision, what is the most important marketing material
25.3
19.3 18
20.7
16.7
0
5
10
15
20
25
30
Website White Paper Articles and Blogs Business cards Social Media. Eg:
Linkedin and Twitter
First
Second
Third
Fourth
Fifth
0 10 20 30 40 50
First
Second
Third
Fourth
Fifth
1: Website
First
Second
Third
Fourth
Fifth
First
Second
Third
Fourth
Fifth
0 20 40 60
2: White Paper
First
Second
Third
Fourth
Fifth
First
Second
Third
Fourth
Fifth
0 20 40 60
3: Articles and Blogs
First
Secon
d
Third
Fourth
Fifth
First
Second
Third
Fourth
Fifth
0 20 40
4: Business cards
First
Secon
d
Third
Fourth
Fifth
First
Second
Third
Fourth
Fifth
0 20 40 60
5: Social Media. Eg:
Linkedin and Twitter

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5: For your business, which Management Consultants would you prefer?
10.75
60.5
9.25
19.5
MBB i.e. McKinsey, BCG or
Bain
Mega-Firms (including the Big
4). Eg: Deloitte, EY, PWC,
KPMG etc
Boutique Firms Independent or Freelancers
0
10
20
30
40
50
60
70 Answer Resp.
A1: MBB i.e. McKinsey, BCG or Bain 10.75%
A2: Mega-Firms (including the Big
4). Eg: Deloitte, EY, PWC, KPMG
etc
60.5%
A3: Boutique Firms 9.25%
A4: Independent or Freelancers 19.5%

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6: If you were to work with Boutique, Independent or Freelancers. What would be your
preference?
71.5
9.5
19
Working with them 'Directly' Working via 'Consultant Networks'. Eg: A
Connect, Holker Watkin, Barton
Partnership
Find them online via sites. Eg:
MBA&Company, Hourlynerd.com and
others
0
10
20
30
40
50
60
70
80 Answer Resp.
A1: Working with them 'Directly' 71.5%
A2: Working via 'Consultant
Networks'. Eg: A Connect, Holker
Watkin, Barton Partnership
9.5%
A3: Find them online via sites. Eg:
MBA&Company, Hourlynerd.com
and others
19.0%

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7: How do you learn about the latest trends and stay up to date with your industry*?
* Respondents were allowed to provide upto
2 answers, hence the cummiltive % is higher
than 100
39.9 40.3
18.8
30.2
0
10
20
30
40
50
Subscribe to online
newsletters
Attending Seminars and
Networking Events
Follows blogs and articles
online
Follow prominent people on
social media
Attend seminars (offline)
Answer Resp.
A1: Subscribe to online newsletters 19.6%
A2: Attending Seminars and
Networking Events
39.9%
A3: Follows blogs and articles
online
40.3%
A4: Follow prominent people on
social media
18.8%
A5: Attend seminars (offline) 30.2%

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8: What is the one reason you would not 're-hire' a management consultant?
"Extremely high
levels of arrogance"
63%
"Create huge,
incomprehensible
presentations and
reports as outputs"
17%
"Thinking that they
know everything"
20%
Answer Resp.
A1: "Extremely high levels of
arrogance"
63.0%
A2: "Create huge, incomprehensible
presentations and reports as
outputs"
17.0%
A3: "Thinking that they know
everything"
20.0%

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9: What Management Consulting Trends will be followed by your business in the next 5
years*
28.5
41.5
29
31
10
Switch away from one
consultancy, and get multiple
firms to collaborate on one
project
Hiring management
consultants in-house within
project teams, avoid hiring
consulting firms
Choose consulting firm that
shift the payment out over a
period of year
Majority of the work is off-
sourced to a developing
economy
Ability to pick and choose
which consultants works
together to deliver a project
0
5
10
15
20
25
30
35
40
45 Answer Resp.
A1: Switch away from one
consultancy, and get multiple firms to
collaborate on one project
28.5%
A2: Hiring management
consultants in-house within
project teams, avoid hiring
consulting firms
41.5%
A3: Choose consulting firm that shift
the payment out over a period of
year
29.0%
A4: Majority of the work is off-
sourced to a developing economy
31.0%
A5: Ability to pick and choose which
consultants works together to deliver
a project
10.0%
* Respondents were allowed to provide upto
2 answers, hence the cummiltive % is higher
than 100

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10: When working on projects would you expect the management consultant to bear the
cost of 'external research'?
Yes, complete cost
No, we will
contribute to the
purchase
No, we will bear the
complete cost
Answer Resp.
A1: Yes, complete cost 24.5%
A2: No, we will contribute to the
purchase
55.5%
A3: No, we will bear the complete
cost
20.0%

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Overview:
Goodman Lantern is a fresh approach to Market Research and Develops
Engaging Content including white papers, market research, eBooks and more.
Using innovative technology and distributed teams, our services reduce costs by
66% and increase speed of project delivery by 5x.
Our team is comprised of industry professionals including ex-McKinsey, KPMG
and Deloitte consultants; and subject matter experts who bring a wealth of
insight and experience to the table.
We work with
Strategy Consultants: Consultants who work on permanent or interim assignments and help
businesses with developing new/realigning existing strategies
Business Advisors: Our mentors are senior consultants who work closely with businesses, and have
multiple clients at any point of time
Transactions/Deal Makers: Consultants working in Private Equity or M&A and other deals, who
require data for conducting commercial due diligence
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