THE SEVENTH ESTATE: A HISTORY OF MANAGEMENT CONSULTANTS AND STRATEGY CONSULTING

As members of The 7th Estate, it bears reminding that the history of management consulting as a distinct profession is relatively recent, beginning in the late 19th and early 20th centuries. Here’s a brief overview of its evolution:

Late 1800s to Early 1900s: The birth of management consulting is often attributed to Frederick Winslow Taylor, who introduced the principles of “scientific management” in the late 19th century. His ideas focused on improving industrial efficiency through systematic observation, measurement, and analysis. The first consulting firm, Arthur D. Little, was founded in 1886 and offered technical research services. The work of early consultants was focused primarily on improving operational efficiency and processes.

1920s to 1940s: During this period, consulting firms started providing advice on management practices. The strategy consulting firm McKinsey & Company was founded in 1926 by James O. McKinsey. The company pioneered the idea of CEO-level consulting and introduced new frameworks for business strategy. The Boston Consulting Group (BCG) and Bain & Company were also established in this period.

1950s to 1970s: The post-WWII era saw significant growth in management consulting as businesses sought help to restructure and scale their operations. The advent of computers also created demand for IT consulting. In the late 1950s and early 1960s, firms like IBM and Accenture began offering IT consulting services.

1980s to 2000s: The era of globalization and the rapid growth of technology led to a boom in the consulting industry. The focus of consulting started shifting towards business strategy, organizational transformation, and information technology. The rise of the internet in the late 1990s further expanded the scope of consulting services.

2000s to Present: The 21st century has seen significant disruption and innovation in the consulting industry. New consulting models have emerged, including freelance consulting, virtual consulting, and crowdsourcing platforms. Consulting firms today offer a wide range of services, including strategy, operations, IT, HR, and more specialized fields like sustainability and digital transformation.

It’s important to note that while management consulting has evolved significantly over the years, its core principle remains the same: To help organizations improve their performance and achieve their goals.