MIT Sloan Management Review Article on How Professional Services Firms Dodged Disruption

Professional services firms have been threatened with disruption for a long time. In 2015, Richard and Daniel Susskind foresaw that technology would cause a “steady decline in the need for traditional flesh-and-blood professionals,” while more recently, CB Insights said that “a tectonic disruption is hitting management consulting.” Even earlier, Clayton Christensen and colleagues warned, “Although we cannot forecast the exact progress of disruption in the consulting industry, we can say with utter confidence that whatever its pace, some incumbents will be caught by surprise.”

But things have not played out as predicted. In consulting and law, the established firms are as influential and profitable as ever. Many potential disrupters have come along. Some have failed, some have gained strong niche positions, but none has challenged — let alone toppled — the existing order. Most established leaders have used a wide range of strategies and tactics to adapt quickly to the threats.

About the Author

Julian Birkinshaw is a professor of strategy at London Business School, where he also serves as vice dean. David Lancefield is a CEO catalyst, strategist, and coach and a former senior partner at PwC

Learn more about MIT SMR.