Consulting firms, by this line of thinking, are one of the drivers of the current state of runaway economic inequality. ADBroadly speaking, management consulting firms advise other organizations how to do their jobs better. They are hired, as CNBC’s Abigail Hess notes, “to assess and address problems, such as downsizing, acquisition or restructuring.”ADThe key to management consulting firms’ function is in the word management. Wendell Potter, a former vice president at the health insurer Cigna, says “it was clear that when [a management consulting firm] was brought in there would be layoffs. ADIn 2003, Ajay Prakash and Andrew A. Samwick of Dartmouth published a working paper that analyzed the performance of companies that hired management consulting firms from 1991 to 2001.

Source: Washington Post December 13, 2019 13:30 UTC