the future of HR consulting

The future of HR consulting

HR consultant. When someone I have just met asks what I do for a living, I still stall. The honest answer takes five minutes and the polite version bores us both. So over the years I have claimed to be an IMAX screen cleaner, a fortune cookie writer and a ski resort map illustrator, which at least ends the conversation faster.

The awkwardness is a symptom worth taking seriously. The label describes a delivery method rather than a result, and delivery methods age badly. Anyone arguing about the future of HR consulting is really arguing about what a client is still paying for once the obvious parts of the work can be produced by anyone with a browser and ten minutes.

My answer runs against the industry’s own story. This trade was built on knowing things the client did not know, and that foundation has eroded in plain sight. Every firm currently promising to become a strategic partner is describing the same escape route from the same collapsing position.

What survives is stranger and more valuable. Organisations rarely hire an outsider for information any more. They hire one for permission.

The commodity The scarcity The measure
Expertise stops being the assetMost of what this trade sold can now be drafted, benchmarked or summarised by anyone with a browser. The future of HR consulting therefore stops depending on holding information the client lacks. Permission is the scarce goodOrganisations already know their own problems in detail. What they lack is a setting where the thing everyone can see gets said out loud without career cost, and an outsider is one of the few ways to create one. The undiscussable perimeterAn engagement deserves to be judged by how many subjects can be named openly once the consultant has gone. That measure moves the unit of analysis off the consultant’s activity and onto the client’s capacity.

The knowledge advantage this trade was built on has gone

HR consulting was built on a knowledge gap. The consultant knew the framework, the benchmark and the legislation; the client did not, and paid for access. That gap has narrowed to the point where it no longer supports a business model, which is the real event behind every conversation about where the profession is heading.

What the trade actually sold

For four decades the product was structured information. A competency framework, an engagement survey benchmark, a redundancy process, an award interpretation, a change plan with a communication schedule attached. The client could have built each of these alone, given time and appetite, and bought them instead because neither was available.

I know the shape of that product because I collect it. For years I have gathered my competitors’ proposals, not to copy them but to work out where the herd is standing so I can stand elsewhere. Read forty of them and the sameness becomes physical.

The uncomfortable part is that sameness was never a flaw in those documents. It was the point. A methodology sells because it is repeatable, and repeatable is exactly the quality that a machine reproduces best.

What Australian adoption figures do and do not prove

The obvious conclusion is that artificial intelligence has already swallowed this work. Australian data complicates that story usefully. Business level adoption remains modest, which means the collapse of the knowledge advantage is happening somewhere other than in official technology strategies.

The Australian Bureau of Statistics, the national statistical agency, found that around 12 per cent of Australian businesses reported using AI in 2024-25, against roughly 1 per cent three years earlier. Twelve per cent is not an industry being swept away.

Read it from the other end and it sharpens. Organisational adoption sits at twelve per cent while individual access sits near total, because every HR manager in the country carries a device that will draft a policy in ninety seconds. The asymmetry did not collapse at the top of the org chart. It collapsed at the desk of the person who used to phone me.

Why the future of HR consulting turns on pricing rather than skills

Most commentary treats this as a capability problem and prescribes upskilling. The economics tell a blunter story. A day rate pays for presence, so it rewards the consultant who stays longest and penalises the one who finishes early, and no amount of new capability fixes an incentive pointing the wrong way.

I priced myself out of that trap by accident rather than by strategy. My work runs in short repeated interventions of a few hours instead of residencies of several weeks, because initiating something takes less time than performing it.

The trade-off is real and I will not dress it up. Short engagements are harder to sell, harder to forecast and easier for a client to abandon halfway. They also stop me from becoming furniture, which is the failure mode I watch happen to good consultants who wanted nothing more than steady work. Rethinking how the work is sold belongs to the same discipline as reinventing a business model under pressure.

The product nobody puts on the invoice

Once information stops being scarce, the question becomes what remains scarce. In my experience it is permission: the right to name, in a room, the thing that everyone present already knows and nobody employed there can afford to say. That is what an outsider is actually retained to supply.

Chris Argyris and the undiscussable

Chris Argyris, the Harvard organisational theorist who spent his career studying why intelligent organisations fail to learn, gave this phenomenon its name. In Overcoming Organizational Defenses, published in 1990, he described defensive routines: unwritten standard practices that protect people from embarrassment while preventing the organisation from correcting its own errors.

His sharpest observation came one turn further in. Organisations do not merely make certain subjects undiscussable. They make the undiscussability itself undiscussable, so the silence leaves no trace and nobody can be held to account for it.

Argyris also turned the lens on my own trade. He documented how organisation development practitioners resist public inquiry into the reasoning behind their own assumptions, methods and results. Consultants build defensive routines around their practice as readily as their clients do around theirs, which is worth remembering before anyone in this profession gets comfortable.

Why an outsider gets to say it

An outsider carries no promotion at stake, no performance review signed by the person in the room and no history with the general manager’s last restructure. That absence of exposure is the whole asset. It buys the ability to put a sentence in the air that costs an insider something to say.

I want to own the obvious objection, because it is the strongest one against my own position. If candour is the product, the market starts rewarding whoever is loudest rather than whoever is right, and consulting has never suffered from a shortage of confident voices.

The objection has a second edge. Permission is not owned by the consultant at all. It is lent by the sponsor who signed the engagement, and it evaporates the day that sponsor moves on. Any consultant who mistakes borrowed licence for personal authority discovers this within one restructure.

Robodebt and the cost of a silence

Australia has an unusually well documented case of what an undiscussable costs when it holds. The Royal Commission into the Robodebt Scheme, the public inquiry into the Commonwealth’s automated debt recovery program, produced a record of an organisation that held the information it needed and could not act on it.

The Commission’s final report traces how legal advice warning that income averaging did not accord with legislation existed inside government while the scheme proceeded regardless. The knowledge was present. The route from knowing to saying was blocked.

The public service has been measuring itself on exactly this axis since. The Australian Public Service Commission’s annual employee census, which drew 151,771 responses in its most recent published round, reports that 81 per cent of staff agree their agency’s culture supports people to act with integrity. Turn the figure over and roughly one public servant in five does not.

Measuring an engagement by the undiscussable perimeter

A claim about permission stays decorative until something measures it. The measure I use is the undiscussable perimeter: the set of subjects that everyone in an organisation knows about and nobody will raise with a manager in the room. Its size before and after an engagement is the result worth invoicing.

Moving the unit of analysis onto the client

Every conventional consulting metric describes the consultant. Days delivered, workshops run, satisfaction scores collected on the way out of the room, reports handed over. Each one measures activity by the supplier and tells the buyer almost nothing about what changed in the building.

Shifting the unit of analysis onto the client kills a bad incentive immediately. A consultant who is merely loud scores zero on this measure, because they said the thing, the perimeter closed behind them and nothing moved. Only a widening that survives their departure counts.

Australian work health and safety duties have already pushed organisations part of the way towards this thinking. Under the model laws, employers carry a positive duty to manage psychosocial hazards at work, and a subject nobody will raise is a hazard that cannot be controlled.

Four questions to run before and after

The instrument is deliberately crude, because a crude measure people actually run beats an elegant one nobody completes. Ask the same four questions of the same group before the work starts and again three months after it finishes, anonymously, and compare.

  1. Name one thing about how this team works that you would not raise in a meeting with your manager present.
  2. Who else here do you believe already knows it?
  3. What do you expect would happen to you if you raised it anyway?
  4. When did someone last raise something uncomfortable here and come out of it well?

The second question is the one that does the damage. Most people discover that the thing they are protecting is already known by everyone they are protecting it from, which is the moment the silence starts looking absurd rather than prudent.

The fourth question predicts the other three. An organisation that can name a recent example of uncomfortable truth-telling ending well has a narrow perimeter. One that cannot has a wide one, whatever its values poster says.

Field note

The recycling workshop where the real question arrived late

I ran a workshop with Suez on reinventing a recycling business model. The strategy was already written, signed off and perfectly clear to everyone in the room. My brief was to help translate that ambition into managerial decisions that would hold up in an ordinary working week.

The session did not fill with strategy questions. It filled with the ones sitting underneath: which trip to cancel, which deadline to trade against a lower impact option, and what to say to a team member who challenges the point of a project. None of those questions was new to anybody present. They had been carried around for months without a room to put them in.

What I supplied that day was a forum rather than information. Every manager there already knew the conflict between the commitment on the slide and the target on the dashboard. My job was to make that conflict sayable, then hand back a way of running the trade-off without me in the room. That is the work, and it is the hardest part to itemise on an invoice.

How to choose an HR consulting approach against your own criteria

Buyers rarely compare consulting offers on the thing that determines the outcome, which is what happens after the supplier leaves. Three engagement models dominate the Australian market, they solve genuinely different problems, and choosing between them is a question about your own organisation rather than about the suppliers.

Three engagement models compared

Set the three side by side and the trade-offs stop being a matter of taste. Each model buys something specific, each has a signal that tells you it is the right one, and each carries a failure mode that shows up months later rather than during the pitch.

Engagement modelWhat you are actually buyingThe signal that you need itThe main risk
Day rate advisoryAccess to a second opinion on demand, priced by presenceDecisions are stalling for want of someone experienced to test them againstDependency, because the pricing rewards the supplier for staying
Fixed scope projectA defined artefact delivered to a specification, such as a framework or a reviewThe gap is a missing piece of work rather than a missing conversationA finished document that changes no behaviour once it is filed
Capability transferThe ability to run the work yourselves, with the supplier designing their own exitThe same problem keeps returning after each round of external helpSlower to show results, and it needs an internal owner with real authority

Which signals point to which model

The diagnostic question is not what you lack. It is what happened the last three times you brought help in. Recurrence is the single clearest signal, because a problem that keeps coming back after competent external work is a problem the organisation cannot discuss rather than one it cannot solve.

Watch the brief itself as evidence. A brief written entirely in deliverables, with a document at the end of every line, usually describes an organisation buying an artefact so it can avoid a conversation.

Then apply the perimeter test to your own shortlist. Ask each candidate what they would measure three months after leaving, and listen for whether the answer describes their activity or your capacity. The answers separate very quickly.

Want the version with nothing held back?

Curious about what a consultant writes when no client is paying for the sentence? Read why I started publishing the things people prefer left unsaid and see the editorial rule I hold myself to.

Naked consulting, or what is left when the answers are free

Naked consulting is the frame I set out in the anti-consultant chapter of my book on this trade. It describes a practice stripped of the two things consultants usually hide behind, the proprietary method and the extended residency, leaving the consultant with nothing to sell except the change they can trigger and then walk away from.

The anti-consultant position

The conventional consultant is paid to do. The anti-consultant is paid to start something and to teach the doing, which produces a much shorter invoice and a much longer effect. I take the position openly because it costs me revenue and I would rather own that than pretend otherwise.

It also changes how I speak to a client. I do not open with the words best practice. I open with the mistakes I made running my own organisations, which is a conversation between two people who have both signed things they regretted.

Part of the job is hunting for what is coming rather than reporting what has arrived, which is why I have spent years working as a trend hunter for small and medium businesses. Selecting the trends that carry no meaning for a given client matters as much as spotting them. I described how this whole position took shape in the opening piece of my series on the consultant’s trade.

Enableship and the leadership of innovation

Enableship is my term for the leadership of innovation: the practice of creating the conditions in which other people can produce something new, rather than producing it for them. It applies to consulting exactly as it applies to management, because both roles are judged on what happens when the holder is absent.

An enabler measures success by subtraction. The question is never how much value was added while I was there, it is how much capacity remains once I have gone, which is the same logic as the undiscussable perimeter applied to skills rather than to speech.

This is where the distinction between innovation and invention earns its keep. Inventing a method is a supplier activity. Enabling an organisation to invent its own is a transfer, and only the second one still has value once the answers are free.

How I can help you put this to work

Everything above is testable inside your own organisation, and most of it works better with an outsider in the room for the first round. My work runs through keynotes, workshops, diagnostics and leadership programs, all built around widening what your people can say to each other rather than around handing you another framework.

Keynotes that name the thing in the room

A keynote is the cheapest permission an organisation can buy. One person from outside says the sentence in front of four hundred people, and afterwards the sentence belongs to the room rather than to whoever was brave enough to raise it first. I prepare these with the sponsor, deliberately and in advance.

The preparation matters more than the delivery. I ask leaders what they would rather I did not mention, then we negotiate which of those subjects the organisation is ready to hear named out loud.

Workshops, diagnostics and leadership programs

Workshops are where the perimeter actually moves, because a room of twenty can test whether the new sentence survives contact with the person it concerns. I run these in short repeated sessions rather than in a single long residency, so the organisation practises without me between them.

The perimeter measure runs as a standalone diagnostic when a leadership team wants a baseline before committing to anything larger. It also sits well alongside longer programs on managerial transformation and business model work, as in the recycling business model engagement I describe in the case studies.

If you want to test whether any of this fits your situation, the fastest route is a conversation rather than a proposal. You can tell me what your organisation cannot currently discuss and we will work out from there whether I am useful.

Conclusion: what this profession is really selling

The trade that raised me sold knowledge, and knowledge has become the cheapest thing in the building. Every attempt to defend the old position by adding another specialism is a way of avoiding that sentence.

What is left is smaller, harder and considerably more useful. An organisation cannot generate its own permission, because the people best placed to name the problem are the people with the most to lose by naming it. Somebody has to arrive from outside, say it once and then leave a way of saying it again without them.

So measure us on the perimeter. Count what your people could not say before we arrived, count it again three months after we have gone and pay accordingly. The future of HR consulting belongs to whoever is willing to be judged on that number.

Frequently asked questions about the future of HR consulting

Is HR consulting a dying profession in Australia?

The information part of it is disappearing rather than the profession itself. Compliance drafting, benchmarking and policy writing are becoming self-service, while the work of surfacing what an organisation cannot discuss is growing. The future of HR consulting sits in the second category.

What can an HR consultant do that AI cannot?

A model can produce the answer but cannot carry the social risk of saying it in a room. Permission depends on someone being present, exposed and unafraid of the consequences. That is the part of HR consulting that no tool has come close to replacing.

How do you measure the return on an HR consulting engagement?

Measure the client rather than the consultant. Ask a team, anonymously, what they would not raise with their manager present, then ask again three months after the engagement ends. A shorter list is the result. Days delivered and satisfaction scores measure nothing useful.

Should a small business use an independent HR consultant or an outsourcing firm?

Outsourcing suits recurring administrative load such as contracts, awards and payroll compliance. An independent consultant suits a problem that keeps returning despite competent process, because recurrence usually signals something the organisation avoids discussing rather than something it cannot administer.

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