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The Game plan

Why do Consultancy Reports Often End Up on the Shelf?

By Zekrie Negatu , August 2023

Authors

Author

Zekrie Negatu

Managing Director at HST

In the local consultancy industry, both public and private sector clients often seek external expertise to navigate their challenges and optimize their operations. However, an unsettling trend persists: many consultancy reports end up gathering dust on shelves rather than driving transformation.


Unlike academic research, consultancy reports are judged by their ability to solve practical, real-world problems. Yet, even within the consulting industry, obstacles often leave these expensive and voluminous reports unused, with no tangible results to show. This article explores some of the most common reasons behind this phenomenon, including the use of inappropriate imported models, missing elements in the macro-level ecosystem, low organizational maturity and absorption capacity of clients, and neglect of change management issues during the implementation of consultant recommendations.


Consultants often deploy tried-and-tested best practice models to tackle their clients’ challenges. However, a critical pitfall arises when these models, designed for different contexts or mature economic systems, prove unsuitable for the unique circumstances of Ethiopian companies. The assumption that a one-size-fits-all approach can lead to misguided recommendations that do not work for the local business landscape. The lack of a tailored solution that meets the specific needs and nuances of a local client’s environment can result in a report that fails to resonate and, consequently, ends up on the shelf.


Implementing a consultant’s recommendation requires more than a strategic roadmap; it demands a supportive macro ecosystem. In mature economic systems, a plug-and-play approach is feasible, with existing legal infrastructures and industry guides facilitating implementation. However, in emerging markets like Ethiopia, companies may find themselves facing the daunting task of having to shape the industry landscape (including lobbying for enabling legal frameworks) before they can effectively implement their proposed business plans and the consultant’s solutions. Without the necessary ecosystem in place, even the most well-crafted reports become impractical, leaving organizations perpetually unprepared.


Another crucial factor contributing to the shelving of consultancy reports is the absence of the minimum required organizational maturity and internal absorption capacity of the client organization. Even with the most innovative and well-aligned recommendations, a client’s internal capacity to absorb and implement change can be a significant barrier. Ethiopian organizations may lack the requisite infrastructure, capable human resources, or cultural readiness to execute the proposed solution. 


Consultants often recommend capacity building initiatives as part of their consultancy engagements when they notice such gaps within their client organizations. However, clients often cherry-pick the recommendations that suit their immediate purpose and ignore the rest. The result is a half-baked implementation process that eventually stalls or is entirely abandoned, leaving the consultancy report on the shelf. 


Lastly, consultant recommendations often involve changes in the client’s operations. However, change is inherently disruptive, and managing it is as critical as crafting strategic and innovative recommendations. Regrettably, many Ethiopian companies often underestimate or overlook the crucial role of change management in the implementation process. Failing to address the human side of change can lead to resistance, confusion, and ultimately the failure of the proposed solutions. The problem intensifies if there is a change of guard at the client organization and the champions of the engagement (board members and senior management) leave before the implementation of the consultant’s recommendations. A new board or CEO, which was not part of the design process, may hinder implementation unless a new opportunity for engagement and buy-in is created.


In conclusion, the local consulting industry can be a vital source of organizational innovation and problem-solving. However, for consultants to work effectively, they must be attuned to both global best practices and emerging trends, as well as the unique features of the local context. The search for fit-for-purpose solutions requires not only using state-of-the-art tools but also assessing what can work in Ethiopia’s and the client’s context.


Ultimately, finding solutions that work in the client’s environment should be the primary responsibility of the consultant. This is the most reliable way for consultants to increase the likelihood that their recommendations will be implemented. By taking responsibility instead of externalizing the problem, the consultancy industry can enhance its reputation, ensuring that consultancy reports become catalysts for meaningful change rather than relics of unrealized potential.


But clients also have a role to play. While consultants can provide direction and educate the client, they cannot force the implementation of their recommendations. Implementation requires the full commitment of the client’s leadership and should be holistic to bring about the desired impact.

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