Big Consulting's High-Stakes Game of Chicken

The Collective Paralysis

Everyone in big consulting knows what's coming.

No one wants to move first.

The consulting business thrived on a simple formula:

→ Hire junior analysts cheaply

→ Bill clients at premium rates

→ Target 75%+ utilization

→ Expand headcount to fuel growth

→ Leverage brand prestige for margins

→ Justify fees through complexity

The Breaking Business Model

Today, that formula is breaking down:

→ AI matches junior output at a fraction of the cost

→ Top talent achieves more with smaller teams

→ Utilization targets lose relevance

→ Clients challenge the premium on human leverage

→ Margins driven by headcount expansion quickly erode

Privately, leaders across the Big 4 and global SIs admit:

Significant layoffs and deep restructuring are inevitable.

The Strategic Hesitation

Yet, they pause, trapped by uncertainty:

→ Deep cuts risk immediate reputational harm

→ Governance structures prevent decisive action

→ Thousands of careers and families hang in the balance

This hesitation feels safe but quietly builds strategic debt.

Salary freezes, stealth layoffs, and hiring slowdowns treat symptoms, not causes.

Each day without decisive action:

→ Competitors steadily capture market share

→ Restructuring becomes more costly and complex

→ Clients quietly shift to innovative challengers

The Leadership Inflection Point

This isn't about timing. It's about courage.

Weak leaders wait for clarity. Strong leaders act through uncertainty.

Great leaders disrupt themselves while winning.

Question for the audience, if you were in charge of one of the Big 4 or global SIs today, what would your plan be to navigate this inflection point?