The future of consultancies: How to navigate market pressures and technological shifts?
The answer is disarmingly simple: respect proven principles in communications consulting.
We are witnessing a familiar pattern: heightened concern, a fair amount of hype, and – at times – collective hyperventilation. I am talking about the future of public relations, public affairs, and advocacy consultancies.
Two forces are driving this debate. First, a genuine technological shift: artificial intelligence. Second, sustained pressure on the business model: publicly listed holding companies seeking to optimise portfolios – merging entities, divesting “non-core” units, and reallocating capital into new services and platforms.
Let’s be clear upfront. Businesses that rely predominantly on people – their judgement, creativity, and strategic thinking – are uneasy tenants on stock exchanges. The expectations of financial markets – predictable growth, stable margins, fixed staff cost ratios – sit uncomfortably alongside the inherently variable, demand-driven nature of people businesses in a market increasingly defined by project-based mandates and tighter budgets.
It is therefore no coincidence that – with a few notable exceptions – leading international management consulting and accounting firms remain privately held partnerships. Different ownership models, same underlying logic: flexibility, long-term thinking, and the ability to prioritise client value over quarterly reporting cycles.
Private equity’s growing interest in communications firms reinforces this point. Rolling forecasts and steady value creation over multi-year horizons tend to outperform the relentless cadence of quarterly expectations. In simple terms: chasing better ideas usually beats chasing the next earnings call.
Now, before this starts to sound overly dramatic – yes, the current changes are significant. But they are not unprecedented.
As a seasoned communications consultant, I am tempted to say: we have seen this before. Perhaps that sounds suspiciously like a complacent baby boomer perspective. So be it. Mergers? Consolidation waves? We have been here. I was part of the Shandwick International and Weber Group merger in 2000, and the subsequent Weber Shandwick and BSMG integration in 2001, following the acquisition of BSMG parent company True North by the Interpublic Group of Companies (IPG).
The level of attention and scepticism was remarkably similar to today’s headlines and online conversations – whether around Omnicom’s takeover of IPG, the merger of Burson Cohn & Wolf (BCG) with Hill & Knowlton to create Burson, or the subsequent announcement to put Burson up for sale. Sounds confusing? Yes, it is, just as it was back in 2000 and 2001.
Market and technology cycles, investor pressure, structural shifts – none of this is new. What is new is our recurring ability to be surprised by it.
So, will artificial intelligence and financial market dynamics kill the agency or consultancy model? No. We have navigated fundamental transitions and major technological leaps before. Consulting models adapted. Each time, value creation found a new equilibrium.
AI will be no different. It will be integrated – selectively, broadly, but always pragmatically, and, where done well, profitably. It will improve speed, quality, and cost efficiency. And it will force sharper thinking about where human judgement truly adds value.
AI will be no different. It will be integrated – selectively, broadly, but always pragmatically, and, where done well, profitably.
The real question is not whether the consultancy model survives. It is whether we remember the fundamentals while adapting the tools. Consultancies should – in my view – stick to principles that create resilience and dynamics required to succeed in the current communications advisory market:
1. The power of teams
A strong team approach across geographies and – critically for a client-centric, outcome-focused consultancy model – across P&Ls, drives behaviour. The key question for delivering top-level advisory services must be: who in our firm is best equipped to help the client, and what is the optimal team configuration? Leadership navigation is never a one-person show. The team is the star. This is where many consultancies fall short, due to internal P&L competition between offices, practices, or individuals.
2. Excellence-driven delivery and integrity
Quality grounded in excellence and integrity is best measured in outcomes, not badges. Beyond certificates and memberships, the strongest indicators are the longevity of client relationships and low turnover among key staff. Firms that grow with their clients – and where consultants grow with the firm – create durable value that translates into profitable growth.
3. The courage to challenge and put the best ideas first
Top-tier advisory firms are recognised by their perspective, not by compliance with a briefing. They do more than execute – they challenge assumptions and elevate ambition. This is not always comfortable, and clients may even resist. Yet the added value of an external team lies in asking the questions insiders cannot. Doing so constructively it unlocks better answers and stronger outcomes. This is the foundation of high-impact consulting with reasonable fees.
4. Relentless curiosity and the confidence to pursue new paths
Optimism is more than a mindset; it is a value, paired with curiosity at the core of advisory work. A sustained belief that better solutions exist drives teams to explore, test, and refine. Applied consistently – for clients, teams, and the firm itself – it becomes a virtuous engine of progress. And it is contagious.
In an environment shaped by accelerating AI capabilities and mounting investor pressure, those firms that remain anchored in these fundamentals will not only adapt – they will define the next phase of the industry, already emerging on the horizon.
This is, in fact, good news for strategically minded consultancies and their clients.
About Leidar
Leidar is a global communication consultancy that helps clients set their course, navigate and communicate effectively. This is Leadership Navigation.
Lutz Meyer
Senior Advisor, Advocacy and Public Affairs based in Brussels
Lutz leads Leidar’s focus on international advocacy across the influencing axes of Geneva, Brussels and London. He develops communications and advocacy strategies for international organisations and also advises on organisational in-house structures related to sustainable strategy implementation.