Building a High-Performing Consulting Firm

Hire consultants, sell their expertise to client assignments, deliver real value, invoice, have fun, make a modest profit, feel satisfied — 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 profitability. And just as easily, it can swing the other way.

Having just left HiQ after nine years — the last four as CEO of HiQ Stockholm — these are my reflections and insights on how to build and lead a profitable, efficient consulting business.
And one that’s genuinely enjoyable.

First, it’s worth clarifying what type of consulting business we’re actually talking about. There are countless models — arguably as many as there are interpretations of what IT and tech really 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 — spanning everything from requirements to complete systems. In other words, a fairly classic consulting business.

How to Build a Winning Culture

I should also mention that a lot is happening in the consulting industry right now. There’s extensive discussion about AI, business models, value versus hours, and, of course, the whole service offering question.

But that’s not what this is about. This is solely about how to build a strong, winning culture — regardless of offerings, business models, AI, or anything else.

So, how do you succeed? There are countless experiences and examples of consulting firms that have done it. I’m always impressed when I hear someone share how they achieved success.

Here, I’m sharing my own experiences, lessons learned, mistakes, thoughts, and ideas — not necessarily the official stance of HiQ.

With that said, a consulting business is simple:

1. Establish a sales-driven culture.
2. Build a strong, cohesive team.
3. Keep a close eye on costs and key metrics.
4. Have fun.

1. The Sales Culture

One of the most important lessons I’ve learned in consulting is that you can never afford to relax. And there’s only one way to manage this: build a strong sales and business culture.

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.

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

This insight is crucial — 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.

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.

And you create it by constantly talking about, focusing on, nurturing, reminding, and driving the sales dialogue. If you don’t, you’re in trouble.

2. Building a Strong Team

When you run a consulting business that’s inherently vulnerable — teetering on a fine line between success and failure — 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 — and not just any journey, but the specific journey you and your company are on.

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’ve invested most of my time. It’s also been, by far, the hardest part.

I’ve always aimed to trust and invest in individuals, but equally, I’ve had to summon the courage to say “no” when it became clear that something wasn’t working. And that, I believe, has been the toughest part of my role.

Have I succeeded so far? Absolutely. Granted, I’m biased, but the team at HiQ Stockholm is, without question, one of the most talented and high-performing in the consulting industry.

3. Keep Costs Under Control and Monitor Key Metrics

Much of what has driven HiQ’s — and many other consulting firms’ — 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.

However, it’s 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’ salary development, social activities, and sales/business development. Everything else is managed as efficiently as possible.

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.

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?

4. Have Fun

For many years, I’ve tried to live by the motto: “creating good work by having fun.” And without a doubt, I’ve had fun along the way. But I also believe that a consulting firm needs to ensure it’s enjoyable to belong to the company.

Working as a consultant is somewhat unique. You’re employed by a consulting firm, but you spend nearly all your time on client assignments, sometimes for several years. On these assignments, you’re often fully integrated with the client team — 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.

To create a strong connection to the firm, it’s essential to have a range of social and developmental initiatives. This is where the essence of a consulting firm’s ‘culture’ shines: enjoying work and growing together.

It doesn’t get any more complicated than that

It doesn’t 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’ve only touched the surface. Within them lie many of the secrets to winning in a competitive market.

But the consulting industry — with its impatience, unforgiving business model, the incredible people it attracts, the opportunities to excel, and all the fun along the way — 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’s finest firms.

Now, new adventures await. I hope these reflections have inspired someone along the way. Thank you!