The Aboard Podcast The Billable Hour is Dead
Sep 16, 2025
The discussion kicks off with a humorous critique of consultants and the declining billable hour model. The hosts examine how AI is transforming management consulting, questioning if firms can sustain their rates with increasing efficiency. They dive into the nuances of client-consultant relationships and explore the challenges of adapting to new technologies for improved workplace productivity. Negotiation tactics in consulting also take the spotlight, encouraging modern approaches that enhance efficiency while maintaining service quality.
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Why Big Firms Are Hired
- Consulting firms often act as outside validators when companies face problems or ambition, supplying expertise and compliance services.
- These firms charge for reassuring boards and implementing compliance, which can be worth millions for public companies.
Two Consulting Business Models
- There are two core consulting models: those who recommend strategy and those who execute it for you.
- Management consultants tell you what to do, while execution firms build, fire, and implement the plan.
Negotiate Value, Not Hours
- Price consulting engagements by the value delivered, not by billable hours, and insist they work for you.
- Use AI prototypes to force accountability and shift timelines, then renegotiate cost or scope accordingly.