{"id":46989,"date":"2025-12-15T09:24:01","date_gmt":"2025-12-15T08:24:01","guid":{"rendered":"https:\/\/cinode.com\/?p=46989"},"modified":"2025-12-15T09:31:43","modified_gmt":"2025-12-15T08:31:43","slug":"building-a-high-performing-consulting-firm","status":"publish","type":"post","link":"https:\/\/cinode.com\/en\/blog\/consulting\/building-a-high-performing-consulting-firm\/","title":{"rendered":"Building a High-Performing Consulting Firm"},"content":{"rendered":"\n

Hire consultants, sell their expertise to client assignments, deliver real value, invoice, have fun, make a modest profit, feel satisfied \u2014 repeat. So simple. And yet incredibly difficult and complex.<\/strong><\/p>\n\n\n\n

Margins are razor-thin. Just a handful of consultants spending more time on billable work than planned over the course of a year can dramatically impact profitability. And just as easily, it can swing the other way.<\/strong><\/p>\n\n\n\n

Having just left HiQ after nine years \u2014 the last four as CEO of HiQ Stockholm \u2014 these are my reflections and insights on how to build and lead a profitable, efficient consulting business.
And one that\u2019s genuinely enjoyable.<\/strong><\/p>\n\n\n\n

First, it\u2019s worth clarifying what type of consulting business we\u2019re actually talking about. There are countless models \u2014 arguably as many as there are interpretations of what\u00a0IT<\/em>\u00a0and\u00a0tech<\/em>\u00a0really mean.
My primary experience has been building long-term partnerships around specialists in software development, across both R&D and IT. The business has typically been a mix of time & materials, staff augmentation, specialist roles, teams, projects, and full delivery commitments \u2014 spanning everything from requirements to complete systems. In other words, a fairly classic consulting business.<\/p>\n\n\n\n

How to Build a Winning Culture<\/h2>\n\n\n\n

I should also mention that a lot is happening in the consulting industry right now. There\u2019s extensive discussion about AI, business models, value versus hours, and, of course, the whole service offering question.<\/p>\n\n\n\n

But that\u2019s not what this is about. This is solely about how to build a strong, winning culture<\/strong> \u2014 regardless of offerings, business models, AI, or anything else.<\/p>\n\n\n\n

So, how do you succeed? There are countless experiences and examples of consulting firms that have done it. I\u2019m always impressed when I hear someone share how they achieved success.<\/p>\n\n\n\n

Here, I\u2019m sharing my own experiences, lessons learned, mistakes, thoughts, and ideas<\/strong> \u2014 not necessarily the official stance of HiQ.<\/p>\n\n\n\n

With that said, a consulting business is simple:<\/strong><\/p>\n\n\n\n

    \n
  1. Establish a sales-driven culture.<\/strong><\/li>\n\n\n\n
  2. Build a strong, cohesive team.<\/strong><\/li>\n\n\n\n
  3. Keep a close eye on costs and key metrics.<\/strong><\/li>\n\n\n\n
  4. Have fun.<\/strong><\/li>\n<\/ol>\n\n\n\n

    1. The Sales Culture<\/h2>\n\n\n\n

    One of the most important lessons I\u2019ve learned in consulting is that you can never afford to relax. And there\u2019s only one way to manage this: build a strong sales and business culture.<\/p>\n\n\n\n

    To make a consulting business work, you need solid sales capabilities. Above all, it comes down to one thing: meeting the client. Meet the client, and you sell assignments.<\/p>\n\n\n\n

    But a sales culture is about much more than just maintaining a healthy pipeline. It\u2019s about understanding the market: what clients need, how they are performing, which technologies they are investing in, and the overall state of the industry.<\/p>\n\n\n\n

    This insight is crucial \u2014 it allows you to persuade consultants to take on assignments, gives them confidence that opportunities exist, and gives you the courage to recruit. In my experience, the best salespeople are often also the best consulting managers.<\/p>\n\n\n\n

    As I said, a strong sales culture is the foundation of a successful consulting firm. It must permeate everything: talent acquisition, sales teams, consulting managers, leadership, consultants, the consulting mindset, and the company vibe. Everything.<\/p>\n\n\n\n

    And you create it by constantly talking about, focusing on, nurturing, reminding, and driving the sales dialogue. If you don\u2019t, you\u2019re in trouble.<\/p>\n\n\n\n

    2. Building a Strong Team<\/h2>\n\n\n\n

    When you run a consulting business that\u2019s inherently vulnerable \u2014 teetering on a fine line between success and failure \u2014 you need a team that is fully committed to building the business and the company. A team that wants to be part of the journey \u2014 and not just any journey, but the specific journey you and your company are on.<\/p>\n\n\n\n

    Finding the right people with the right drive, understanding of the business, attention to detail, and grasp of the underlying mechanisms has been where I\u2019ve invested most of my time. It\u2019s also been, by far, the hardest part.<\/p>\n\n\n\n

    I\u2019ve always aimed to trust and invest in individuals, but equally, I\u2019ve had to summon the courage to say \u201cno\u201d when it became clear that something wasn\u2019t working. And that, I believe, has been the toughest part of my role.<\/p>\n\n\n\n

    Have I succeeded so far? Absolutely. Granted, I\u2019m biased, but the team at HiQ Stockholm is, without question, one of the most talented and high-performing in the consulting industry.<\/p>\n\n\n\n

    3. Keep Costs Under Control and Monitor Key Metrics<\/h2>\n\n\n\n

    Much of what has driven HiQ\u2019s \u2014 and many other consulting firms\u2019 \u2014 historical success is a strong business-driven culture combined with keeping costs under control. Monitoring expenses and using resources efficiently provides a solid foundation for success.<\/p>\n\n\n\n

    However, it\u2019s crucial to strike the right balance between being economical and having the courage to invest in growth, nurture the business, and have fun. You need to invest in the right things and do what you can to make everything else work. My guiding principle has always been to prioritize spending on consultants\u2019 salary development, social activities, and sales\/business development. Everything else is managed as efficiently as possible.<\/p>\n\n\n\n

    There are a few, but incredibly important, key metrics in a consulting business. The most important is the sacred utilization rate. Whether you work with projects, commitments, or resource consultants, utilization is the measure of efficiency. And the holy grail everyone strives for is 90 percent.<\/p>\n\n\n\n

    Beyond utilization, you also need to track average billing rate, average salary, and the number of consultants in service (FTEs). While you can break these down into finer components, at its core, these are the four metrics you need to ensure are progressing according to plan. Simple, right?<\/p>\n\n\n\n

    4. Have Fun<\/h2>\n\n\n\n

    For many years, I\u2019ve tried to live by the motto: \u201ccreating good work by having fun.\u201d And without a doubt, I\u2019ve had fun along the way. But I also believe that a consulting firm needs to ensure it\u2019s enjoyable to belong to the company.<\/p>\n\n\n\n

    Working as a consultant is somewhat unique. You\u2019re employed by a consulting firm, but you spend nearly all your time on client assignments, sometimes for several years. On these assignments, you\u2019re often fully integrated with the client team \u2014 and clients are usually very good at including consultants so they feel like a colleague. At the same time, you still have your consulting firm as your employer.<\/p>\n\n\n\n

    To create a strong connection to the firm, it\u2019s essential to have a range of social and developmental initiatives. This is where the essence of a consulting firm\u2019s \u2018culture\u2019 shines: enjoying work and growing together.<\/p>\n\n\n\n

    It doesn\u2019t get any more complicated than that<\/h2>\n\n\n\n

    It doesn\u2019t need to be any more complicated than that. Establish a sales culture, build a strong team, keep costs and key metrics under control, and have fun. In my view, these are the overarching areas you need to focus on to succeed as a consulting firm. Of course, an enormous amount of work lies behind each of these areas, and I\u2019ve only touched the surface. Within them lie many of the secrets to winning in a competitive market.<\/p>\n\n\n\n

    But the consulting industry \u2014 with its impatience, unforgiving business model, the incredible people it attracts, the opportunities to excel, and all the fun along the way \u2014 makes it the most amazing industry there is. I am proud and grateful to have had the honor of leading one of the consulting industry\u2019s finest firms.<\/p>\n\n\n\n

    Now, new adventures await. I hope these reflections have inspired someone along the way. Thank you!<\/p>\n","protected":false},"excerpt":{"rendered":"

    Hire consultants, sell their expertise to client assignments, deliver real value, invoice, have fun, make a modest profit, feel satisfied \u2014 repeat. So simple. And yet incredibly difficult and complex. Margins are razor-thin. Just a handful of consultants spending more time on billable work than planned over the course of a year can dramatically impact […]<\/p>\n","protected":false},"author":258,"featured_media":46720,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[73],"tags":[],"class_list":["post-46989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consulting"],"acf":[],"yoast_head":"\nBuilding a High-Performing Consulting Firm - Cinode<\/title>\n<meta name=\"description\" content=\"Discover key insights on Building a High-Performing Consulting Firm from the leading consultancy blog.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cinode.com\/en\/blog\/consulting\/building-a-high-performing-consulting-firm\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Building a High-Performing Consulting Firm\" \/>\n<meta property=\"og:description\" content=\"Discover key insights on Building a High-Performing Consulting Firm from the leading consultancy blog.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cinode.com\/en\/blog\/consulting\/building-a-high-performing-consulting-firm\/\" \/>\n<meta property=\"og:site_name\" content=\"Cinode\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Cinode\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-15T08:24:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-15T08:31:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cinode.com\/wp-content\/uploads\/2025\/12\/Erik_Ridman_guestblogger.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"G\u00e4stbloggare: Erik Ridman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"G\u00e4stbloggare: Erik Ridman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/blog\\\/consulting\\\/building-a-high-performing-consulting-firm\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/blog\\\/consulting\\\/building-a-high-performing-consulting-firm\\\/\"},\"author\":{\"name\":\"G\u00e4stbloggare: Erik Ridman\",\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/#\\\/schema\\\/person\\\/0cf6cf820a7550e044730c784ca864ff\"},\"headline\":\"Building a High-Performing Consulting Firm\",\"datePublished\":\"2025-12-15T08:24:01+00:00\",\"dateModified\":\"2025-12-15T08:31:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/blog\\\/consulting\\\/building-a-high-performing-consulting-firm\\\/\"},\"wordCount\":1275,\"publisher\":{\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/blog\\\/consulting\\\/building-a-high-performing-consulting-firm\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cinode.com\\\/wp-content\\\/uploads\\\/2025\\\/12\\\/Erik_Ridman_guestblogger.png\",\"articleSection\":[\"Consulting\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2025\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/cinode.com\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/cinode.com\\\/en\\\/blog\\\/consulting\\\/building-a-high-performing-consulting-firm\\\/\",\"url\":\"https:\\\/\\\/cinode.com\\\/en\\\/blog\\\/consulting\\\/building-a-high-performing-consulting-firm\\\/\",\"name\":\"Building a High-Performing Consulting Firm - 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