It is impolite to think of management consultants as comparable to call centre bots. But remuneration changes at the top of McKinsey & Co, that most blue-blooded of consultancies, show that, when it comes to billing, the two are becoming more aligned.
McKinsey is under pressure from clients to tie its fees to outcomes achieved — such as lower costs, higher profits or increased market share — rather than to the hours its consultants spend concocting advice designed to achieve those ends. Charging for results delivered rather than work done makes revenue less reliable, which helps explain why the firm will shunt a bigger share of partners’ pay into equity and husband more cash.
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