The Golden Age of Consulting is Over

For decades, consulting was a glamorous, globe-trotting career with lavish compensation. But those days appear to be waning as technology, penny-pinching clients, and economic uncertainty have conspired to complicate the consulting model.

In the halcyon days, consultants flew cross-country weekly to solve thorny problems at Fortune 500 companies. Firms like McKinsey, Bain, and Boston Consulting Group became training grounds for future executives, with their alumni reaching the upper echelons of corporate America. Consulting retained a patina of prestige and exclusivity.

Yet cracks in this gilded veneer are now evident. As clients scrutinize budgets in the post-pandemic era, travel has been curtailed. The era of readily expensing first-class flights and steak dinners is fading.

Technology has also taken some luster off consulting. Videoconferencing and workflow tools enable virtual collaboration, reducing the need for on-site engagements. Moreover, consultancies are promoting their own tech solutions, like AI systems to automate processes.

For new consultants, the lifestyle shock can be jarring. With utilization rates down, consultants spend more idle time on the bench between projects.

Compensation has also taken a hit. Bonuses are down across the industry as firms adjust to the new normal. Work-life balance may have improved, but so has uncertainty. “I keep waiting for things to return to normal,” said one consultant. “I’m not sure that will ever happen.”

While consulting won’t vanish, the sweeping changes are the end of an era. As travel restrictions and technology transform business norms, the lucrative consulting model of the past has been disrupted. For those who expected globetrotting and outsized rewards, the new reality is a rude awakening. The golden age of consulting is definitively over.