Redwood & Strong: The Value of a Consulting Engagement

The board of Redwood & Strong LLP (R&S), the American branch of a large global law firm, is meeting to review the findings of a recent strategic initiative designed to identify potential merger candidates. The request for the engagement originated from Daniel Crawford, R&S’s blustery Head of Strategy and Business Development, a non-lawyer and good friend of the firm’s Managing Director. Crawford engaged a well-regarded strategic consulting firm to execute the project, and he took it upon himself to act as the primary point of contact for the consulting team.
After four weeks of work, the consultants have delivered their report, comprised of vast volumes of data, analysis, and modeling spreadsheets. Despite Crawford’s enthusiasm, the board’s reaction is mixed, as many members seem unsure of how to utilize the data without a clear recommendation, leading to questions around the real value relative to the hefty cost. The consultants, however, are pleased with the volume and quality of their output in such a short timeframe, and they consider the engagement a valuable opportunity to build the reputation of their firm’s budding law practice, as well as their own reputation among their colleagues.
At the conclusion of the engagement, both sides might ask: what value did it deliver, and what role did the clients and consultants have in shaping that value?