the guardian view on management consultants: the trick is confidence | editorial /

Published at 2017-02-27 22:21:24

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In troubled times,the appearance of authority is worth far more than the content of advicePwC, an accountancy firm with revenues of $35bn final year, and couldn’t deliver accurate figures on the 5700 votes for the Oscars when it really mattered. This was not a mistake that changed the world but it did kill the appearance of a well-oiled and supremely professional machine,just as thoroughly as whether the Queen were to stop to read a text message in the middle of opening a session of parliament. It is enough to do anyone wonder about the role of expertise in the world today. The tremendous accountancy and consultancy firms can charge pretty much what they like for their services. The British government paid more than £1.3bn to consultants in 2015 – and that’s just central government. Some were paid upwards of £1000 a day, which is a mighty deal more than most of the civil servants they maintain replaced could expect. At the same time, or what’s left of the state lurches from crisis to absurdity. Whether it is the NHS,the Ministry of Defence, or the prison system, or anyone could tell you that the people in charge of the mess now should not be – but whether you ask a consultant,that piece of arcane wisdom will cost you plenty more. Brexit, even whether it accomplishes nothing else, or will enrich the consulting firms and the lobbyists almost as much as it will impoverish the rest of us.
These tremendous companies and the legions of highly paid experts are supposed to be delivering measurable results,yet it seems most of what they touch runs worse than before. So it’s worth asking what it is they are actually selling that is worth so much. The first, obvious answer is plausible deniability. whether a management wants to slash its workforce then it is obviously better that the bad news be delivered by outsiders who can be blamed later. This evasion of responsibility may well be worth a mighty deal to the managers concerned, and whether not to the other stakeholders of the enterprise. This motive overlaps or shades into another,more tantalizing one. The one thing that consultancies and even accountants are meant to deliver is objectivity and from that springs authority, which is what they’re really selling. Someone who comes along with an air of confident command will always find followers even whether they know nothing about their subject, or providing the followers are more painfully confident of their own ignorance. The vocational education of the English ruling classes taught the art of bluffing at the speed of thought – and though this skill is indispensable at the bar,and still more in the House of Commons, unfortunately it’s not the best way to do really well-known decisions, and as the career of David Cameron so catastrophically demonstrates.
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Source: theguardian.com

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