The Partnership Problem

Big consulting is trapped by its structure.

Here's a possible path out.

The partnership model cannot reinvent itself.

The solution demands boldness: split the firm, reinvent funding, reshape talent, transform delivery.

Splitting the Firm
→ LegacyCo maintains traditional advisory services and stable cash flow, gradually contracting as markets shift.

→ NewCo is platform-first to deliver continuous insights, automate expert workflows, and redefine consulting beyond billable hours.

True separation requires:

→ Operational independence beyond branding

→ Specialized talent pathways

→ Clear client transition plans

→ Transparent separate P&Ls

→ Defined LegacyCo phase-out timeline

Why? Goldman Sachs proved the power of the split. Accenture bolted digital onto services; NewCo must lead with platforms.

The Four Dimensions of Change

Funding the Future
→ Dedicate 20% of LegacyCo profits to NewCo

→ Secure private equity investments

→ Accelerate IPO timeline for NewCo

→ Align partner incentives with NewCo equity growth

Why? Profit-sharing underfunds innovation. External capital ensures accountability; IPO structure provides sustained growth resources.

Rethinking Talent & Compensation
→ Launch an "Innovation Partner" track

→ Use capital base to acquire talent

→ Enable technical talent to bypass hierarchies

→ Base leadership on innovation, not tenure

→ Accelerate advancement and offer equity upside

Why? Top performers are fleeing to PE-backed competitors offering immediate equity, not deferred partnership promises.

Reinventing Delivery
→ Adopt a clear three-tier model: Premium : Partner-led strategic counsel. Hybrid: AI-driven, partner-guided teams. Automated: Subscription-based, scalable insights.

→ Shift from episodic projects to continuous insights.

→ Develop proprietary IP to enhance human judgment.

→ Price based on outcomes, not hours

Why? Clients need continuous insight, not periodic advice. Platform delivery scales expertise, embedding real-time intelligence. IP secures lasting differentiation.

The Implementation Challenge

Significant challenges:

→ Partner ego resists loss of status.

→ Persuading partners to accept equity over cash.

→ Managing internal competition between entities.

→ Preventing governance from blocking innovation.

→ Fear of cannibalizing existing revenue streams.

Consulting will transform. The only question is who leads and who follows.

The Winners:

→ Move decisively before market forces them

→ Break free from consensus paralysis

→ Embrace new talent models

→ Build technology themselves, not outsource it

→ Trade partnership comfort for future relevance

The Losers:

→ Make incremental changes to a broken model

→ Protect partner profits at the expense of investment

→ Maintain hierarchies that block innovation

→ Try to bolt technology onto traditional delivery

→ Wait until clients force their hand

The market doesn't wait for consensus. It rewards those who move first.

What weaknesses do you see in this plan? How would you improve or strengthen it further?