We all know that the big, branded firms boasting global reach are the most expensive.  But what are you actually getting for your money?  Users of consulting are increasingly trying to answer that question because the difference in fees can run into millions of dollars.  It’s not that they don’t want to pay these rates: they clearly do – at Source, we estimate that around 60 percent of a large organisation’s expenditure on consultants goes on these first tier firms.  Rather, it’s that they want to understand what they’re getting for their money.

The value of first tier firms falls into three areas:

• Risk and reputation:  First tier firms withstand the “nobody got fired for hiring…” test and have their highly public reputations on the line.
• Reach: because they’re global and provide a seemingly unlimited range of services across all sectors, they’ve an immense array of experience, skills and contacts to draw on.
• Quality:  Specialist, niche firms would quite rightly argue that the quality of their work, clients and staff is as good as that of first tier firms.  Where they find it harder to compete, however, is in attracting high quality junior staff and providing the extensive training that turns good recruits into good consultants.  This is partly through choice: niche firms usually rely on teams of senior, highly experienced consultants.  However, a new graduate is more likely to be attracted to a consulting firm with a well-known brand.  Because they charge higher fees, first tier firms are also better able to invest in training.

Are these things worth paying for?  That’s up to you to decide: for some projects the answer will unquestionably be yes; for others, you might decide these qualities fall squarely in the nice-to-have camp.  The crucial point is that, if you do think they’re worth the price tag, you need to make sure you get and make good use of these three qualities.