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Business Briefing: A Consultant's Comeuppance

Picture of Jim Krider By   ·  2 minute read

Keywords: Consulting, Client Relationships, Value Proposition, Change Management, Leadership Transition, ROI
Source: Harvard Business Review
Link: Read the full article on HBR.org
Author: Robert Buday
Published: February 2003
Est. Read Time (Original): ~25 minutes

A Note on Access: To read the document, a Harvard Business Review subscription is required. We believe an HBR subscription is an invaluable asset. We particularly recommend utilizing the downloadable PDF version of their articles, they are a fantastic, high-value resource for sharing and discussion within your team.

The Core Idea

This case study presents a classic business dilemma: a long-standing and highly profitable consulting relationship is put at risk by the arrival of a new, cost-conscious CEO. Jeff Patterson, a partner at Flynn Fuller Consulting, has enjoyed an $80 million, decade-long relationship with his client, GloBank. But when a new CEO, Frank Maloney, is brought in to turn the struggling bank around, he issues an edict: every consulting firm must "justify their existence" in a one-hour meeting or be fired. Jeff and his team must now pivot from a comfortable, relationship-based partnership to a high-stakes pitch for survival to a skeptical new leader.

Why It Matters for Business Today

This case is a timeless lesson for any long-term service provider, vendor, or even internal support function on the fragility of client relationships during leadership transitions.

  • Past Performance is Not a Guarantee: The central lesson is that a new leader resets the board. The years of trust and goodwill built with the previous regime are not transferable. The consultant must re-sell their value from scratch, as if it were a brand-new account.

  • You Must Speak the New Leader's Language: The comfortable, relationship-driven style that worked with the old client is now a liability. The new CEO is focused on cost-cutting and a rapid turnaround, meaning the conversation must immediately shift to ROI, future financial impact, and a clear, forward-looking vision.

  • The Danger of Complacency: The case highlights the risk of becoming an entrenched, "kept" consultant. By becoming deeply integrated into the client's operations, the firm has made itself look like an expensive and potentially unnecessary fixed cost to a new leader looking to make his mark. The challenge is to prove you are a strategic investment, not just an operational expense.

The Strategic Question for Leaders

When a new executive takes over your most important client account and challenges you to "justify your existence," how do you pivot your strategy from relying on the strength of your past relationship to proactively proving your indispensable future value in the language that matters most to the new leader?

Share your perspective in the comments below.

Remember, by sharing your insights, you contribute to a unique "Enriched Briefing." {Jim Krider} will follow up to provide you with a powerful "Business Cold Start" document, combining our analysis with expert perspectives to equip your internal AI models with a more nuanced understanding of this topic.