Reviving clients’ creaking business models is a big opportunity for firms

Clients say that their current business model is the number one barrier to success, with 27% of them flagging it as their top issue. Rapidly evolving technology, agile competitors, and unpredictable supply chains all mean that slow-to-respond businesses are falling further behind. They also tell us they need help from firms, but what will they be buying?  

With the global consulting market set to grow by around 5% in 2025, and 93% of clients expecting to use more support over the next two years, we know that business leaders will be reaching out for support tackling their biggest challenges. And obsolete business models are high on their hit list, with 27% of clients saying they need to urgently rethink theirs—a figure that rises to 30% for the most under pressure “frightened” clients. 

But as with all things professional services, positioning this work isn’t straightforward: Clients tell us they won’t necessarily be reaching out for support that is pitched as “operating model” or “business model” work. Rather, this is one of those areas where many organisations say they plan to do the work themselves. Why? They understand their value drivers better than anyone else and don’t want to outsource decision making that controls the very heartbeat of their business. 

Operating models are the top barrier to clients’ success

So, does this mean firms should step aside, and leave this work to clients? Not at all. There are big projects to be won that sit firmly within the business model space, and the complex, multidimensional nature of the challenge makes it likely that clients will need third party support. However, they’ll be framing their needs in different ways.  

What will clients be calling this work? 

If it’s not labelled as business or operating model work, what exactly will clients be buying? 

Technology work: Technology is central to almost all business models today. It is also flagged by clients as a top priority and one where they often lack the skills and resources they need. They are enthusiastic about using consultants for this work, with tech strategy second only to risk as an area where they plan to engage external experts. They’ll be looking for inspiration and real-life examples of how technology may change the direction of their business and transform the way they create value. And once this thinking work is done, they also want help delivering this new tech-enabled operating model, with technology implementation third on their list of areas where they plan to work with consultants. (For a full breakdown of clients’ current priorities, do get in touch).  

Productivity work: One of the big barriers to business model success is how effectively it is delivered, and productivity remains a top concern for clients today. When we asked buyers of consulting for the reasons why they were planning to keep investing heavily in technology, the most popular reason was to increase their productivity. This has long been an area where clients are happy to bring in consultants, with their industry benchmarks and cross-sector expertise, and firms that combine this offering with support around designing and implementing new digital business models will likely be in demand.  

Multidisciplinary projects: As we discussed in a Leadership Market Update earlier this year, firms that offer strong multidisciplinary services have a distinct advantage when it comes to retaining old clients and securing new ones. And the complex and all-encompassing nature of business model change means that such firms—ones that are able to offer expertise right across the value chain, covering both front and back-office operations—will be well positioned to deliver this type of work.  

The portfolio of expertise that clients will want to draw on as part of a complex business model project includes risk management, particularly at a time when the macroeconomic and political environment we operate in requires a flexible plan for growth. This is not only the top service where clients say they plan to use consultants in standalone work but is also frequently talked about as a crucial part of large, transformational projects, too.  

Meanwhile, people, HR, & change work will likely be another key ingredient in business model offerings. While this has been comparatively low on clients’ agendas for the past couple of years, a prolonged period of concerted focus on tech over humans, combined with widespread redundancies and pay freezes, means that businesses now need to work on integrating their people and tech to best effect and motivating the staff they still have. Our data saw people topics, including culture change, workforce adaption, and organisational change move up the agenda this quarter, as business leaders acknowledged the need to focus here. 

Business model work is an area where clients are often reluctant to reach out for help, feeling that they should have the answers themselves. But these can be such large and complex projects that there are real opportunities for consultants. To win this work, firms must speak about the big problems that individual clients face with their specific business models today, offer support in the areas where clients admit they lack resources and expertise, and talk up their multidisciplinary capabilities. Clients know they need to change, and they’ll need help delivering on that.  

What can firms do next? 

If you’d like regular updates, straight from the mouths of executives, about their priorities and consulting needs then contact us. Our Business Leaders’ Voice Programme uncovers the nuanced drivers behind shifting client sentiment by combining conversations, data, and analysis each quarter. It’s like having your own seat at the boardroom table.