Analysis of Contemporary Issues in Management of Professional Services

This report provides an analysis of contemporary management issues within the professional service industry, focusing on technology enablers, innovations, and industry trends. It begins by introducing the concept of contemporary issues in management, highlighting challenges such as changing client behavior, profitability, competition, and cybersecurity. The report then examines the role of technology in driving innovation, including the adoption of new consulting models and asset-based consultancy. An industry analysis is presented, discussing the growth, challenges, and future trends in the professional service sector, with a specific focus on McKinsey. The report concludes with a reflection on the impact of these changes on career prospects and potential contributions within the industry.

CONTEMPORARY
ISSUES IN
MANAGEMENT

Table of Contents
SECTION 1- INTRODUCTION.....................................................................................................1
SECTION 2- TECHNOLOGY ENABLERS AND INNOVATIONS............................................1
SECTION 3: INDUSTRY ANALYSIS..........................................................................................4
SECTION – 4...................................................................................................................................8
How the changes in the consultancy sector will affect my career..............................................8
The contribution I can make in the company..............................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

SECTION 1- INTRODUCTION
Contemporary issues are referred as problems faced by the firm or even the whole
industry in order to achieve success within the market place. In context of management, the
contemporary issues are related to uncertainty about the future, well-being of employees,
shaping company culture, rules, regulations and compliance, etc. In order to illustrate the
concept regarding contemporary management issues, Professional service industry will be
chosen. This particular industry developed in late 19th century during which various consulting
firms were founded. Initially they are highly focused towards finance and engineering services
but later onwards in early 1960s the industry started to expand in international market as well
(Eke, 2018). For instance, McKinsey & Company had decentralized one quarter of the hundred
largest companies in the UK.
In order to identify the expansion of the industry, it has been evaluated that the market
size of the management consulting industry is constantly expanding in the market space of UK
and most importantly expected to increase around 5% each year (Desbordes, Aymar and
Hautbois, 2019). However, in spite of the growth there are various challenges that has been face
by the industry such as continuous change in client behaviour and preferences, profitability
aspect, new or advanced competitors, project complexity, cyber security issues, etc. In addition
to this, the professional service industry faces huge amount of challenges in context of approach
of new entrants which makes difficult for existing companies to survive within the market. The
companies like McKinsey and EY have a fear from the young blood rise in start up consulting
businesses as they are the ones who provide alternative services at lower price range and highly
capable to affect the existing companies. This report will elaborate the aspects that are being
related to the professional service industry in context of enablers and innovations along with the
discussion over the whole industry through different perspectives such as future of consumption,
enterprise as well as future of work. Furthermore, the report will also discuss about the personal
reviews and feelings of the researcher while competing this whole study which greatly provide
benefits to the firms who comes under this whole industry.
SECTION 2- TECHNOLOGY ENABLERS AND INNOVATIONS
Over the past few decades, the management professional service company has growing
importantly to become one of the most dynamic service industries all across the world. This
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automatically enhances the economic growth and expansion of the overall sector and brings
strong changes into information technology. With the enhancement in this, the globalization also
gets increased that consistently prompt their clients to adopt certain strategies, procedures,
technology and structures. Nowadays companies are getting away from the traditional approach
of management consulting and being accelerated with the help of advanced technology that has
automated much of the research and analysis process which has been traditionally provided by
the professional service providing industry. Due to these types of changes, companies need to
adopt new ways and models through which the whole engagement exists and utilize the
technology in order to complement traditional ways of consultation. Irrespective of having
strong drivers for growth, the consulting industry seen very less amount of innovations in the
previous few decades. But now the trend has completely changed. The traditional management
model of consulting has been accelerated with the help of the latest technology due to which
various research methods are being automated in most efficient manner (Chuang and Graham,
2020). It involves the usage of consulting business models that are facilitated with the help of
technology which involves online network in which flexible accessibility to top talent is
gathered with the help of just few clicks. This provides various benefits to the clients as well in
terms of providing them appropriate valuable services, flexibility and high level of control in
order to select consultants with whom they wish to work.
One more model that is being added into the engagement system that is highly adopted
into the consulting sector such as value added process model which acts as a traditional model
from traditional way of consulting which assist in providing client friendly technology as well as
big data based solutions. In context of McKinsey, it has been evaluated that with the help of
new consulting model, the company is offering tool which is highly based upon technology and
software for data analytics and taking data based decisions that are extremely structured in
nature. Above mentioned both the models were developed by gathering the technology and
understand the ways through which the data can be derived from traditional consulting ways.
One more innovation has been occurred because of the asset based consultancy. In such type of
consulting service, technology utilized in order to add on value and get complete competitive
advantages for consumers by shorten down project lead time along with giving them
functionality at lower costs. Generally consulting companies are adopting dynamic software
resolutions along with get data based reusable assets in conjunction with static usages as well as
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varied business models. In innovation context, it has been identified that consulting forms are
generally considered to be part of knowledge intensive business services. They are the kind of
service provider which is highly project based and information intensive. For many decades,
professional service industry practising towards fostering a culture of excellence and serve their
customers both commercial as well as government users.
From most of the studies, it has been identified that the professional service industry
specifically the consulting service companies are in their mature stage of life cycle. The industry
is highly characterized by expansion in line with the complete economy as they have enhanced
number of players along with technological changes which are highly based upon the
improvements in their efficiency rather than developing entire new services. Moreover, it has
also been evaluated and predicts that within next few more years, the delivery models and of
consulting required to become re-designed and requires further innovation into their services. It
enhances the rise of information technology along with associated qualifications and the fight
for talented people (Singh and Irugu, 2020). With the help of providing deep research
capabilities, professional service providers are able to create thoughts that are related to
leadership. As per the overview of the top thoughts that has been provided by varied consulting
firms it has been analysed that the creation of dozens of pieces regarding leadership. They are
ranging from detailed research reports with an aim to inform their business leaders as well as
stakeholders by delivering them an insight regarding the enhancement of value towards them
and through the procedure; they help to consult firms in order to differentiate themselves from
their competitive establishments.
As per the thoughts of the McKinsey leader over leadership and innovation concept, it
has been evaluated that innovation is the primal and most significant way for companies to
accelerate the pace of change in the today’s global business environment. The strategic thinkers
within the establishment are moving beyond the focusing towards the traditional services and
products in order to satisfy their users. As per the leader of the company, it has been stated that
there are no actual and particular way to cultivate innovation within the practices of innovation
(Rehani and Brady, 2021). The procedures and innovative structure are highly significant that
has been utilized by leaders in order to encourage the significance but not solely sufficient.
According to them, innovation is not only related to implementation of disruptive change
program but also originating the conditions that allows dynamic innovation network in order to
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emerge and flourish the entire thing completely. Furthermore, in context of Deloitte it has been
identified that the company maintains an international ways of offering innovative consulting
things. This is their main and major innovative offering in terms of their advanced capabilities.
The company adopts centralized approach for innovation with the help of internationally
dedicated design along with inventive practices. They assist their clients in order to understand
the point at which they need to focus their efforts by developing innovative strategies to evaluate
and prioritize opportunity spaces. The users of the company also states that the company is
greatly proficient enough to invest into the design and deliver appropriate capabilities along with
their strategy and human capital practices.
SECTION 3: INDUSTRY ANALYSIS
According to the current scenario, it has been identified that professional service
business activities outperformed towards the wider economy. Under this specific industry,
United Kingdom grew around 2.2% in 2015 and it has grown up to 9% (Airlie and et.al., 2021).
It happens all because of the rise in actions which provides appropriate support for the growth
and development of the consultancy related services with the help of appropriate strategies.
Moreover, right now it has also been identified that the resources are diminishing and the
expectations of the citizens are keep on increasing, thus the public sector services requires more
for less. Hence, they require appropriate consultants in order to provide appropriate support to
the ambitious transformational change programmes. In order to achieve better situation, the
appropriate strategies needs to be considered and acknowledged by the professional service
provider company. The industry itself is full of various specialists into diversified fields.
Specially consulting consistently involves acquire new capabilities in order to match changes
and innovations within the economy. However, the industry face many challenges as more and
more start-ups are entering into the market area on day to day basis and the firms are getting in
house services now and also acquiring smaller consultancy firms that highly suitable for their
business requirements which enables the to overcome from technological and management
issues. Furthermore, the great amount of competition also occurs within the market place within
this specific industry.
The IBM leaders states that the slowdown in the overall market greatly impacted the
growth and expansion of the professional services industry. Basically, these challenges force the
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whole service industry to learn from the mistakes and forge collaboration with diversified
players in order to bring wide concept towards consulting sector (Mittal and et.al., 2018). Due to
such types of conditions, innovation within the technology specifically in the consulting industry
also requires certain level of changes. Appropriate and talented employees are the basic asset of
any industry or organization along with requires appropriate strategies in order to retain them to
get benefits during long duration of time frame. This is the basic thing which supports the firm
in order to achieve success.
The innovation into various ways has open up various opportunities for consulting
companies such as for McKinsey. Although, they are also facing issues in order to transform
their clients business while moving through the phase of self transformation. The focus to the
company is totally towards the adaptation of things as they are the ones who focuses towards the
new disruptive technologies that can be introduced within the market space. The company
adopts varied strategies and techniques such as artificial intelligence, automation, data analytics,
digitization, etc. All the above mentioned practices made the whole industry to alter their
traditional modes and methods and thus enhance their knowledge base.
In context of identifying the future of the McKinsey, it has been analysed that it is a
client driven industry and requires constant updation into their functioning in order to survive
within the market space. After facing various challenges by the professional service industry, the
future if the consulting firm being starts to reshape by several major trends such as:
 Creation of tailor made solutions: Working with various and diversified talented
personnel acts as one of the greatest strengths of the consulting firms and the McKinsey
also take advantages from them by adopting best practices or approach into
implementation after identification of clients requirements.
 Link the strategy with the transformation: In previous timings, the strategies are
created on the basis of long term plans but now after looking at all the factors, the plans
needs to be prepared over the current basis (Agostini and Filippini, 2019). With the help
of this, the firm can able to coming towards most beneficial decisions. Now the company
requires agile mode of strategies that can easily being modified at any point of time or
even during the project as well. It is all because of the continuous requirement of changes
from the side of the users and ultimately they are the ones who are responsible for the
success of the establishment. Hence, the strategies that are going to be used should be
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highly flexible enough to meet expanding market requirements and dynamics in short
term basis.
 Becoming a sparring partner: In previous timings, consultants are the part-time or
temporary advisors but now the management of the McKinsey states that with the
involvement and bringing of expertise, development of certain solutions and
implementing them in the best possible manner make them efficient enough to prepare
their image among the other users available at the market space. McKinsey being a
trusted company advisor also have to fulfil some responsibilities at the time even when
they are not fully involved because this provides in-depth insights required for
transformation.
 Enable the data possession: For future perspective, it has been analysed that McKinsey
is appropriately able to using the data and this can improve their customer experiences
along with enhancement in internal operations of the company. With the involvement of
various fact based strategies, skills and services such as artificial intelligence to set the
ways for real automation of decision-making. Although they can still face issues in
accessing and mastering data which is crucial for growth factor. For this, the company
keeps on introducing various and diversified services into action after considering the
activities that has been adopted by other competitive companies that works within the
similar industry.
 Cyber security: Consulting companies generally handle huge amount of confidential
data related to the client information. It includes strategic information as well as
commercial along with personal data (Lozano and et.al., 2019). Such type of high value
of information is highly valuable for the firm if it falls into wrong hands. This is the
reason that companies are unable to win work in the future terms. Huge amount of
consultancies are already suffered from such issues and failing in order to face serious
consequences of this kind of activity.
 New competition: With the introduction of advanced technologies, advanced companies
are able to do more with just less amount of efforts highly effects the old companies.
Thus, addressing increasing competition in this specific sector is a major business
priority. The enhancement in the independent consultancies is increased by freelancer
portal.
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Thus, all such fears are highly identified at the time of researching about the McKinsey
according to which it has been evaluated that like all other companies, McKinsey also faces
similar type of challenges in order to sustain their brand image within the market place.
In terms of future of work it has been evaluated that large number of IT projects required
huge number of consultants working with much smaller team from client’s side in order to fulfil
the requirements of the project requirements along with its implementation. It is considered as
the technological factor which affects the ways in which the people work within the professional
industry. It includes implementation of new technologies like advanced software that has to be
tailored in order to meet specified business needs. Another factor is globalization which
illustrates the continuous procedure by which societies and cultures have become integrated with
the help of huge network related to communication and execution. Hence, the global trade
companies are facing risk, aggressive competition that also influence researchers and scholars in
order to conduct academic approach. Moreover the kind of forces faced by the company is
financial forces, economic, social, political, labour, competitive forces, etc. Last is the
innovation factor according to which it has been identified that the companies have to deal with
fast and rapid changing environment as this fact pushing all the companies and individuals in
order to do constant changes along with their continuous adoption, etc.
Thus it requires serious amount of efforts from the side of employees who are working within
such consultancy firms. The employees of McKinsey are basically praised with the strong and
challenging environment and having projects having great impacts over getting competitive
financial advantages. Hence, the employees are working within the firm in a manner which
highly encourage activities and duties, client engagement, create balance among the private
work as well as life, get appropriate benefits and salaries, enhance their personal development
through encouraging building of specified skills, along with able to provide them future career
opportunities which enhances functional knowledge such as structured thinking, knowledge into
diverse field, etc. as well as personal skills such as management skills, cultural awareness,
dealing with pressure and uncertainty, etc. (Kadir, Broberg and da Conceicao, 2019) Thus, the
changes in the trends and patterns of working includes continuous digitization, which help the
firms in order to more quickly adapt client needs with the help of adopting changes in their
functioning, terms and structure. Now the industry shifts towards human research and analysis
towards the automation of work with the help of software advances. Now the employees are
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highly focused towards market as it provides low cost commodities along with high valued
specialized consulting sector. The digital strategy also gets integrated along with provides multi
sourcing mode within the management consulting industry.
SECTION – 4
How the changes in the consultancy sector will affect my career
The changes occurring within the consultancy sector will affects my career growth in a
major way, the use of new technology in the sector will make me understand the latest trends
occurring in the sector make me deal with it in a positive way, it will make me more efficient
towards what I am doing, the use of latest information technology in the consultancy sector, the
latest technology will help me in knowing what my customer wants for me, the latest changes in
the consultancy sector is increasing day by day which is making it a good course to pursue
providing a lot of jobs, the choice of myself of pursuing the consultancy career will help me in
getting the job I want which will appreciate my skills as well, the digitalization of consultancy
sector firms will help me in getting the remote job which will be very favourable for me as well.
In the sector of consultancy the growth speed is very fast which is leading them to recruit new
talent in their specific field, which they seek from the top universities and it is very easy to enter
the consultancy service sector because the company wants only the bachelor graduates as an
entry requirement, the consultancy companies looks for the graduates not for the skills, they
recruit the students through their presentation and poster work which will make it easier for me
to join the company, as of the ease of job and high stipend given by the companies in this sector
I will surely say yes to join the consultancy companies.
The contribution I can make in the company
Being an effective student of my college after joining the Accenture consultancy, I will
surely be a productive employee of the firm who will complete all of the targets of the firm on
time and will work for the company like it’s my owned company so that the company could
achieve the higher growth in the consultancy sector. I will put all of my efforts in the company, I
will help the company by engaging with more and more customer’s everyday, I will solve their
problems so that they can know the efforts and the respect of the company towards, mainly
people work for 8 hours in a job but I will be the kind of person who will be ready to work
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anytime for the firm, I will come in front of the top level management by providing them my
best creativity ideas that they can execute in the firm to increase the productivity, I will be the
type of employee in the firm to which the company can rely on, by delivering them on time what
I have promised. I will give a better impact on bottom line by engaging everyone in the firm
together and promoting the coordination activity so that none other department fault can give the
problem to whole firm or affect the productivity of the whole firm
CONCLUSION
From the above report, it has been concluded that the professional service industry such as
consulting firms are highly evolved with the time period due to innovation in the technology
specially within the consulting industry. It is highly changed as per the requirement of the time.
It includes automation, artificial intelligence, data analytics as well as digitalization all things
into the combined format have changed the old methods within the industry and promote
enhancement into the knowledge based functioning. Thus, nowadays consultants utilizes their
skills in order to increases the business and resolve related issues with the help of appropriate
assessment as well as making effectual recommendations along with certain solutions. In this
sector, the joint efforts are highly appreciated and also develop the skills set to make sure about
achieving maximum amount of potential.
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REFERENCES
Books and Journals
Agostini, L. and Filippini, R., 2019. Organizational and managerial challenges in the path
toward Industry 4.0. European Journal of Innovation Management.
Airlie, M. and et.al., 2021. Contemporary issues in forensic science—Worldwide survey
results. Forensic Science International, 320, p.110704.
Chuang, S. and Graham, C.M., 2020. Contemporary Issues and Performance Improvement of
Mature Workers in Industry 4.0. Performance Improvement, 59(6), pp.21-30.
Desbordes, M., Aymar, P. and Hautbois, C. eds., 2019. The global sport economy:
Contemporary issues. Routledge.
Eke, G.J., 2018. Contemporary Issues in Employee Motivation and Performance in
Organizations. Social Sciences, 5(1).
Kadir, B.A., Broberg, O. and da Conceicao, C.S., 2019. Current research and future perspectives
on human factors and ergonomics in Industry 4.0. Computers & Industrial
Engineering, 137, p.106004.
Lozano, A.M. and et.al., 2019. Deep brain stimulation: current challenges and future
directions. Nature Reviews Neurology, 15(3), pp.148-160.
Mittal, S. and et.al., 2018. A critical review of smart manufacturing & Industry 4.0 maturity
models: Implications for small and medium-sized enterprises (SMEs). Journal of
manufacturing systems, 49, pp.194-214.
Rehani, M.M. and Brady, Z., 2021. Contemporary issues in radiation protection in medical
imaging: introductory editorial. The British Journal of Radiology, 94, pp.bjr-20219004.
Singh, A. and Irugu, D.V.K., 2020. Sudden sensorineural hearing loss–A contemporary review
of management issues. Journal of Otology, 15(2), pp.67-73.
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