Are the wheels about to fall off the management consultancy gravy
train? McKinsey & Company’s decision to turn to Ogilvy & Mather for
strategic advice suggests there may be a limit to the barrel-loads of
money such companies have made in recent years.
If so, there will be few tears in adland. While agencies struggle to
sustain operating margins of 9 per cent, management consultants have
comfortably achieved more than four times that figure.
But the worm may be turning. With their infrastructures now sorted and
little to choose between rival products, advertising might increasingly
provide the competitive edge. It’s a comforting thought.