Why Most Corporations Homogenize Remarkable People, Part 4: The Danger of Management Consultants

I realize this might be a bit controversial, but I feel compelled to make an observation about companies who spend millions upon millions of dollars to bring in outside management consulting “experts.” The problem is, left untended, these expensive experts can easily homogenize just about everything and quickly sap the creative lifeblood right out of a company.

Homogenization in the workplace often happens in the name of efficiency (danger, danger!) when a company-wide mandate, usually to address a lowest common denominator problem, takes priority over individual greatness, experimentation and diversity of approach. It’s a killer to creativity and a company’s ability to make remarkable breakthroughs.

True, there are some situations that warrant the hiring of an external management consultant. For example, a company may identify a problem and determine that it doesn’t have the specific knowledge and skills in-house to solve it. To permanently hire the right people would be prohibitively expensive, so hiring consultants with proven expertise for the short-term can be a huge benefit.

The typical profile of a Bain, Accenture or McKinsey management consultant is someone who excels academically and graduates from one of the top ten business schools. While this is a pretty good guarantee of intelligence, it is not a guarantee of insight or vision. There’s a big difference. What these consultants do best is apply basic business sense from an outsider’s perspective.

The problem is that their goal is often widespread efficiency—and this left unchecked can easily turn into homogenization. For example a Fortune 100 company now struggling with innovation, paid millions of dollars to a management consulting firm for advice that led them to implement an inflexible “Span of Control” policy. Following the consulting firm’s recommendation, the company implemented a policy across the board requiring managers at a certain level to each have a minimum of eight direct reports.

This does help flatten the organization and reduce levels of hierarchy. However, time after time I would see brilliant individuals hit a wall because getting promoted and making more money meant taking on significant management responsibilities. But what if their skills were “spiky”? What if their gift was mastery of a specific subject and they functioned best as an individual contributor? Is it worth trading someone’s unique and valuable brilliance in order to fit into the “system”? (See earlier posts I’ve written about the unfortunate problem of homogenization in the workplace, “spiky” skills, and empowerment or lack thereof!).

The danger with the taking these recommendations as Gospel, and implementing them across the board, is that they often lead to a “broad brush” approach that kills creativity, stifles people’s gifts and shuts down the career path for spiky contributors.

So before you jump on the ever-popular management consultant bandwagon, remember that these nicely paid experts tend to do well with broad-brush recommendations, but can quickly stifle the ability to do anything truly unique. If you want your company to be inventive and shake up the world, save your money, look within and never, ever homogenize!

January 26, 2010