Ego Insurance

Companies keep hiring the same big consulting firms.

The reason is almost always the same:

It's ego insurance.

The consulting world's dirtiest secret isn't about incumbent firms overcharging.

It's about why clients keep coming back.

Phrases I hear when speaking with their customers:

"We need the global scale and bench strength."

→ Translation: "I need a prestigious logo as my reputational shield."

"It's too risky to try someone new."

→ Translation: The career hit for a failed initiative far outweighs any reward for saving millions.

"They know our business."

→ Translation: Onboarding a new vendor takes effort I won't be rewarded for.

Drill deeper and you'll find the core drivers:

→ Status Signaling: MBB/B4 presence isn't about outcomes, it's about elevating the sponsor's social capital.

→ Illusion of Control: 200 page decks and daily reports feed the need to feel in charge while results delay.

→ Loss Aversion: Admitting they overpaid hurts; it is far easier to keep paying the same firm.

→ Identity Preservation: Prestigious partners and firms validate self‑image; a challenger firm threatens it.

This isn't just individual psychology.

Organizational processes perpetuate the cycle:

→ Procurement tracks rates & FTEs, not outcomes

→ Bonuses tied to budget deployment, not savings

→ Renewals validate past decisions, driving inertia

→ Internal capability erodes, increasing dependency

All while the business model of the incumbent firms is openly visible for everyone:

Junior staff × billable hours × utilization = Partner profits

What clients rarely see: They're paying premium rates for psychological comfort, not superior results.

The system isn't broken, it's working exactly as designed.

Breaking this cycle requires more than better alternatives. It demands a complete reimagining of how executives measure their own success, valuing outcomes over affiliations, results over reassurance.

After months of conversations with individuals on both sides of the table it is becoming clear the incumbents aren't being disrupted by technology.

They are being protected by psychology.