When big organizations like colleges and universities are looking to cut cost, they often turn to high-priced consultants to tell them how to do it. But do those consultants really save as much money as they claim? No, say consultants who consulted on the consultants.
High-priced consultants are always telling colleges and universities that they can cut their costs by up to 4% a year. Really, consultants?? You sure about that? Because Inside Higher Ed reports that a team from the Education Advisory Board prepared a detailed study that showed that most schools only end up saving half that much. Hail to the Education Advisory Board!
The group, a business that produces research for colleges on some of the same issues on which some institutions hire consultants, did a detailed analysis of cost-reduction efforts at 21 different colleges and universities that hired outside consultants.
As soon as we get McKinsey to thoroughly vet this report and vouch for its accuracy, we'll get Bain to recommend changes to our consultant-hiring policies.