Consulting 2024 Wrapped (Part 2: Tools & Processes for Efficiency)

The consulting industry faced a turbulent 2024, marked by global uncertainties, economic shifts, technological disruptions and evolving client needs. From adapting to post-COVID realities to navigating AI adoption and overcoming client indecision, consulting firms had to innovate and adjust strategies to stay competitive. Recently, we asked some of the top industry thought leaders to discuss the challenges they faced this year and the opportunities they see for 2025 and the future.

5 Tips to Improve Efficiency for Consulting Firms in 2025

Part two of our Consulting Wrapped series explores the tools and processes consulting leaders implemented in the past year to enhance efficiency, drive growth and adapt to changing client demands.

1. Refining Your Value Proposition

Many of our experts emphasized the importance of shifting from reactive, ad hoc strategies (dealing with immediate urgencies) to intentional, proactive design within their consultancies. In 2024, Luk Smeyers and Florian M. Heinrichs of The Visible Authority guided their clients to focus on a structured value proposition that became the foundation for sustained growth.

Their approach allowed firms to employ premium pricing models. By leveraging expertise, firms achieved high gross margins (50%) and robust profit margins (20%), allowing reinvestment into their business. In addition, this process included aiming for one-third of revenue from new clients and two-thirds from existing clients.

2. Leveraging Artificial Intelligence (AI)

AI tools have revolutionized the consulting industry, offering new ways to enhance efficiency and create value. Jason Mlicki of Rattleback highlighted how his firm operationalized AI to transform workflow, "We're using Chat GPT, and other specialty tools as thought partners, Claude and other specialty AI tools as content partners, and Perplexity as an AI-enabled search partner."

Similarly, Dave Hofferberth of Service Performance Insight noted that AI tools like CoPilot and ChatGPT enhanced performance in professional services, particularly in writing briefs and answering client queries. Performance has increased in these areas. But that is just the beginning.

While AI may be in its infancy, it holds immense potential for the consulting industry, from automating routine tasks to content creation to generating valuable data insights.

3. Simplified and Consolidated Systems

Streamlining tools and processes can significantly improve efficiency. Sean McDermott of Windward Consulting shared how his firm consolidated systems like HubSpot and Outreach.io into Salesforce, gaining more functionality—such as AI and analytics—without increasing costs. Andy Jordan of Roffensian Consulting S.A. echoed this sentiment, advocating smarter use of existing tools. His firm gained deeper analytics and improved client outreach by integrating new AI capabilities into familiar platforms.

Automation remains a cornerstone for improving efficiency. Tissa Richards, a leadership expert, focused on automating redundant tasks and partnering with specialists in adjacent fields to streamline operations. This approach freed up resources to focus on strategic growth areas while maintaining high standards of service delivery.

4. Building Relationships for Sustained Growth

In an age of rapid technological change, Jennifer J Fondrevay of Day1 Ready™ turned to an "old-school" approach: personal follow-ups and check-ins. By connecting with clients after project completion, she gained valuable feedback on what worked and what didn't, enabling her to refine processes while strengthening relationships.

As she noted, "Nothing beats human connection and someone simply asking you, 'How's it going?'" This practice maintained strong client relationships and underscored the importance of human connection in a tech-driven world.

According to Faheem Moosa of Consulting Leap, consulting thrives on trust and relationships. "By creating systems that actively drive referrals and establishing thought leadership, firms can demonstrate expertise and authority. These two pillars—referrals and thought leadership—form the foundation for sustainable growth, particularly in a competitive market."

5. Continuous Monitoring and ROI Tracking

60% of business leaders in a new Sloan MIT study stated they needed to improve their KPIs. However, many professional service organizations don't have the tools they need to gather accurate data to implement a clear KPI strategy. Some of the professional services firms we talked with throughout the year struggled with even basic KPIs like utilization and profitability. In fact, according to the 2025 Consulting KPI Guide, only 26% of consulting firms feel that they track client profitability well.

Some leaders we talked with undertook initiatives to better understand and monitor efficiency. Scott Montgomery of Worldgate, LLC implemented comprehensive sales tracking tools and ongoing monitoring systems. These processes ensured that his firm could measure efficiency and assess various initiatives' return on investment (ROI), enabling data-driven decision-making and resource optimization.

Conclusion: Preparing for 2025 and Beyond

The consulting industry is entering an era defined by rapid technological advancement and evolving client expectations. To stay ahead, firms must embrace tools and processes that enhance efficiency, foster growth and prioritize human connection. Key takeaways for consulting firms in 2025:

• Shift from reactive to proactive planning for long-term growth.
• Leverage AI to automate workflows and generate insights but remain critical of its ROI.
• Consolidate tools and integrate systems to improve functionality and reduce costs.
• Build and nurture strong client relationships, as trust remains the cornerstone of consulting success.
• Continuously monitor and measure the impact of tools and processes to ensure alignment with business goals.

By adopting these strategies, consulting firms can confidently navigate the challenges of 2025 and deliver exceptional value to their clients. And speaking of consulting challenges and opportunities, make sure to watch the webinar on-demand, as our exclusive panel of top consulting industry leaders (including many of those cited above) discussed the challenges they faced in 2024 and the opportunities they see for 2025 and the future. We reviewed tips to tackle uncertainty, discussed how consulting firms use AI and shared best practices to improve efficiency in the future.

Thank you to our consulting partners who helped with this effort:

• Andy Jordan, President of Roffensian Consulting S.A.
• Dave Hofferberth, Managing Director, Service Performance Insight (SPI)
• Faheem Moosa, Founder of Consulting Leap
• Florian Heinrichs, Partner at The Visible Authority
• Jason Mlicki, Principal of Rattleback
• Jennifer J Fondrevay, Founder & Chief Humanity Officer at Day1 Ready™
• Luk Smeyers, Founder of  The Visible Authority
• Sean McDermott, CEO of Windward Consulting
• Scott Montgomery, Chief Customer Officer at Worldgate, LLC
• Tissa Richards, CEO and Leadership Expert at www.tissarichards.com