I wonder what the "difficult transformation" you describe is exactly? "Consultancies and agencies face a choice in delivering strategy work for clients: fight a losing battle against AI to continue providing economies of knowledge, or undergo the difficult transformation required to offer value clients need."
Great question. The transformation I'm describing is what would be required to deliver a fundamentally different type of value. For a traditional strategy consultancy, that means transforming talent (away from deep specialists), culture (away from conformity), organization (away from industry silos), and business model (away from hierarchical pyramid teams). Each of these elements was optimized for delivering economies of knowledge, not the value I believe clients need as described in the piece. The transformation for creative agencies would look different, but the challenge is the same: you can't deliver new value with infrastructure built for the old.
This is great. How do you think about “selling” this new type of experience/value proposition when the process isn’t as clear-cut as traditional consulting? If organizations are used to dealing with the classic consultant who creates the perception of value through their “proven, proprietary method”
Herein lies the challenge!! You’ve aptly pointed out a bit of a paradox—what clients need is difficult to package and sell as an engagement (both for consultants selling to clients, and for clients selling internally).
To date, I believe a lot of well-intentioned consultancies (including my own) deal with this by defaulting to pitching processes and deliverables, and proving the true value once already working within the organization. Not ideal.
But I do wonder (and hope) that the AI age will devalue processes and deliverables, allowing consultants and clients to advocate for the right things from the jump. I know I am working on new business models that enable this.
Agreed, I think storytelling and sensemaking will become more important - being able to show the kind of journey or transformation that would take place. And it takes a certain kind of leader to recognize the value there.
Couldn't agree more, your take on this is brilliant. Do you think innovation agencies are truely the only ones that can adapt, or will the old guard eventually figure out real agility?
Innovation agencies have challenges as well in adapting...those that haven't already been acquired and pushed to focus downstream. What seems most likely—and what is already happening—is defectors from both starting anew. Barriers to entry are pretty low...especially if a century of knowledge brokering is not the value you intend to offer!
I wonder what the "difficult transformation" you describe is exactly? "Consultancies and agencies face a choice in delivering strategy work for clients: fight a losing battle against AI to continue providing economies of knowledge, or undergo the difficult transformation required to offer value clients need."
Great question. The transformation I'm describing is what would be required to deliver a fundamentally different type of value. For a traditional strategy consultancy, that means transforming talent (away from deep specialists), culture (away from conformity), organization (away from industry silos), and business model (away from hierarchical pyramid teams). Each of these elements was optimized for delivering economies of knowledge, not the value I believe clients need as described in the piece. The transformation for creative agencies would look different, but the challenge is the same: you can't deliver new value with infrastructure built for the old.
This is great. How do you think about “selling” this new type of experience/value proposition when the process isn’t as clear-cut as traditional consulting? If organizations are used to dealing with the classic consultant who creates the perception of value through their “proven, proprietary method”
Herein lies the challenge!! You’ve aptly pointed out a bit of a paradox—what clients need is difficult to package and sell as an engagement (both for consultants selling to clients, and for clients selling internally).
To date, I believe a lot of well-intentioned consultancies (including my own) deal with this by defaulting to pitching processes and deliverables, and proving the true value once already working within the organization. Not ideal.
But I do wonder (and hope) that the AI age will devalue processes and deliverables, allowing consultants and clients to advocate for the right things from the jump. I know I am working on new business models that enable this.
Agreed, I think storytelling and sensemaking will become more important - being able to show the kind of journey or transformation that would take place. And it takes a certain kind of leader to recognize the value there.
Couldn't agree more, your take on this is brilliant. Do you think innovation agencies are truely the only ones that can adapt, or will the old guard eventually figure out real agility?
Innovation agencies have challenges as well in adapting...those that haven't already been acquired and pushed to focus downstream. What seems most likely—and what is already happening—is defectors from both starting anew. Barriers to entry are pretty low...especially if a century of knowledge brokering is not the value you intend to offer!