The Big Con

[Dukasaur]

Pretty much confirms what I've always thought. So it's good. (confirmation bias is a wonderful thing. )

https://marianamazzucato.com/books/the-big-con

There is an entrenched relationship between the consulting industry and the way business and government are managed today which must change. Mariana Mazzucato and Rosie Collington show that our economies’ reliance on companies such as McKinsey, Boston Consulting Group, Bain & Company, PwC, Deloitte, KPMG and EY stunts innovation, obfuscates corporate and political accountability and impedes our collective mission of halting climate breakdown.

The ‘Big Con’ describes the confidence trick the consulting industry performs in contracts with hollowed-out and risk-averse governments and shareholder value-maximizing firms. It grew from the 1980s and 1990s in the wake of reforms by both the neoliberal right and Third Way progressives, and it thrives on the ills of modern capitalism, from financialization and privatization to the climate crisis. It is possible because of the unique power that big consultancies wield through extensive contracts and networks – as advisors, legitimators and outsourcers – and the illusion that they are objective sources of expertise and capacity. To make matters worse, our best and brightest graduates are often redirected away from public service into consulting.

In all these ways, the Big Con weakens our businesses, infantilizes our governments and warps our economies. Mazzucato and Collington expertly debunk the myth that consultancies always add value to the economy. With a wealth of original research, they argue brilliantly for investment and collective intelligence within all organizations and communities, and for a new system in which public and private sectors work innovatively for the common good. We must recalibrate the role of consultants and rebuild economies and governments that are fit for purpose.

[bigtoughralf]

Step 1: government cuts jobs to save money
Step 2: government hires consultants to do those jobs
Step 3: consultants do a worse job because they have less knowledge in the field but cost the same if not more than the staff they're replacing
Step 4: senior government figures who contracted consultancies get highly paid jobs at those same consultancies

It's a pretty well-worn path in the UK and has been covered fairly regularly by Private Eye.

That was the saddest thing about Theresa May's tenure. She was the only PM I can remember who felt like she was actually in office to serve the country rather than to line up a private sector payday, and she had to waste her premiership arguing about the Brexit deal.

[jimboston]

Step 1: government cuts jobs to save money
Step 2: government hires consultants to do those jobs
Step 3: consultants do a worse job because they have less knowledge in the field but cost the same if not more than the staff they're replacing
Step 4: senior government figures who contracted consultancies get highly paid jobs at those same consultancies

It's a pretty well-worn path in the UK and has been covered fairly regularly by Private Eye.

That was the saddest thing about Theresa May's tenure. She was the only PM I can remember who felt like she was actually in office to serve the country rather than to line up a private sector payday, and she had to waste her premiership arguing about the Brexit deal.

This is super-simplistic and though likely true in some cases not universally so.

The idea that private sector / outsourcing always does a “worse job” than public sector is ridiculous.

I have personal direct knowledge working with the public sector (primarily at the State and Local level, but some Federal).
I can state with absolute certainty that private sector employees are in general less motivated to excel, work hard, and innovate.
The structure of the public sector workforce rewards people to do rote work that’s just “good enough”.
It rewards and advances people based primarily on seniority and connections NOT on ability.

Furthermore the public sector pays less and therefore attracts weaker candidates to begin with.

Certainly there are exceptions to my general option…. but I believe my generalizations hold.

I exclude the military from this assessment as I don’t think people join the military to “get rich”. Some might do so to get started. in life or get a boost, but there’s also the patriotic factor.

No one gets a job at the DMV because they have patriotic feelings.

[bigtoughralf]

I can state with absolute certainty that private sector employees are in general less motivated to excel, work hard, and innovate.

Then I'm not surprised you accept all the main points of a comprehensive piece of investigative journalism which laid out how common it is for UK public officials to secure high-paid jobs in consultancies working for the UK Government.

[jimboston]

I can state with absolute certainty that private sector employees are in general less motivated to excel, work hard, and innovate.

Then I'm not surprised you accept all the main points of a comprehensive piece of investigative journalism which laid out how common it is for UK public officials to secure high-paid jobs in consultancies working for the UK Government.

High ranking public officials sure… IDk about UK…

In US I see that happening with elected officials and high ranked people… but not the other 98% of public sector employees.