Management Consultants
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Management consulting in Britain is mostly about who decides what. Organisation design, reporting lines, spans of control, committee structures and delegated authority are the raw material. The output is rarely a new idea; it is a clearer answer to the question of which person or forum owns each type of decision, and what happens when they disagree.
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Firms usually call a management consultant at a specific moment: after an acquisition has left two of everything, when a founder is trying to stop being the bottleneck, when a layer of middle management has quietly accumulated, or when the board cannot get a straight answer about performance because nobody owns the number.
The legal edges are real. Directors keep their statutory duties under the Companies Act 2006 whatever a consultant recommends, so a board cannot outsource a decision. And if a restructure means redundancies, collective consultation rules bite at a defined threshold with defined minimum periods. A consultant who designs a structure without mapping those obligations has handed you half a project.
Organisation design, decision rights and performance management
- Organisation design: how many layers, what each layer is for, and which roles genuinely need to exist.
- Decision rights: writing down who can approve spend, hiring, pricing and product changes, and at what level.
- Governance: what the board decides, what an executive committee decides, and what never reaches either.
- Performance management: the small number of measures each role is actually judged on.
- Post-merger integration, where two management systems have to become one without stopping the business.
- Management capability work: coaching a first layer of managers who were promoted for technical skill.
How an organisation design review usually runs
It starts with the current state written down honestly: an accurate headcount by role, the real reporting lines rather than the chart, and a list of the decisions the business makes repeatedly. That list is the useful artefact, and most firms have never produced one.
The middle of the work tests each decision against three questions: who has the information, who bears the consequence, and who currently has to sign. Where those three point at different people, you have found a genuine design fault rather than a personality clash.
The design then follows the decisions, not the other way round. Options are usually presented as two or three whole structures with their trade-offs, because a structure assembled from the best bits of several options tends not to work.
Who is accountable for a recommendation the board adopts
Two of the general duties the Companies Act 2006 places on directors bear directly on consulting work: the duty to exercise independent judgement, and the duty to exercise reasonable care, skill and diligence. Neither is discharged by pointing at a report somebody else wrote.
So the useful question for a board receiving a restructure proposal is not whether the adviser is credible. It is what the board itself tested, and what it would have needed to see to decide differently. Record the challenge and the rejected alternatives alongside the conclusion. A structure adopted with no such record is harder to explain to the executives who then have to run it, and harder to defend if it is questioned later.
This is also the practical argument for insisting on two or three whole options rather than one answer. A single recommendation leaves a board nothing to exercise judgement on, which is the one thing the statute asks it to do.
When a restructure triggers collective consultation
GOV.UK sets out that collective consultation rules apply when an employer proposes to make 20 or more employees redundant within any 90-day period at a single establishment. Below that threshold, individual consultation obligations still apply.
Where 20 to 99 redundancies are proposed, consultation must begin at least 30 days before the first dismissal takes effect, and the Redundancy Payments Service must be notified 30 days before the first redundancy. For 100 or more, both periods are 45 days. GOV.UK warns that failing to notify the service can lead to an unlimited fine.
Consultation does not have to end in agreement, but GOV.UK is explicit that it must be carried out with a view to reaching it, including ways of avoiding or reducing the redundancies. Build that time into the project plan before you announce anything.
Management consultant, HR consultant or interim director
- A management consultant designs the structure and the decision rights; they do not normally run the employment process that implements it.
- An HR consultant handles the consultation mechanics, letters, scripts and appeal process, and usually knows the Acas Code in detail.
- An interim director sits inside the structure and makes decisions, which changes their employment status question entirely.
- A recruiter fills the roles the new structure creates, and has no view on whether the structure is right.
- On a restructure of any size you will usually need at least two of these, so agree early who owns which part.
Why organisation redesigns fail in British companies
- The chart changes but the approval thresholds do not, so the same people still sign everything.
- A layer is removed without removing the work it did, and the work lands on the layer below.
- Consultation is treated as an announcement, which makes the process vulnerable and the staff hostile.
- New roles are written as job titles rather than as accountabilities, so nobody can tell when they are being done badly.
- Nobody agrees the measures before the change, so there is no honest way to judge whether it worked.
- The founder keeps an informal veto that is not on the chart, and the new structure routes around them.
How management consulting work is usually priced
Design phases are commonly fixed fee, because the scope is knowable: a defined set of interviews, a decision inventory and two or three structural options. Implementation support is more often a retainer or a day rate, since the pace depends on your own managers.
Ask what happens to the fee if the board chooses none of the options. A proposal that cannot answer that has assumed an outcome.
Keep the cost of the change itself separate from the consulting fee in your own planning. Redundancy payments, notice, recruitment for new roles and the productivity dip during consultation are usually the larger numbers.
Management Consultants: frequently asked questions
Can the board rely on a consultant's recommendation to justify a decision?
Not on its own. Directors have a statutory duty under the Companies Act 2006 to exercise independent judgement and to exercise reasonable care, skill and diligence. Advice informs the decision; it does not replace it. Boards usually record the questions they asked and the alternatives they rejected, not just the conclusion they reached.
At what point does a restructure trigger collective redundancy consultation?
GOV.UK states the collective consultation rules apply where 20 or more employees are proposed for redundancy within any 90-day period at a single establishment. For 20 to 99 the minimum period is 30 days before the first dismissal; for 100 or more it is 45 days. The Redundancy Payments Service must also be notified in advance.
How long does an organisation design project take?
The design itself is often a matter of weeks. The implementation is governed by the consultation timetable, notice periods and the time it takes to recruit into new roles, so it is normally the longer part by a wide margin. Plan the two separately and do not announce a structure you cannot lawfully implement yet.
What is a decision rights matrix and is it worth doing?
It is a written list of recurring decisions with, for each one, who proposes, who approves and who must be consulted. It is worth doing because it is testable: you can take last quarter's decisions and check whether the matrix would have produced them faster. A structure chart cannot be tested that way.
Should the consultant interview staff directly?
Usually yes, but be clear with staff about what is confidential and what will be reported back, and stick to it. If the interviews are happening while redundancies are being considered, take advice first, because what is said and recorded can matter later in a consultation or a tribunal claim.
Sources
Written by the LokalMatch editorial team. Last reviewed 22 September 2026. How we write and check our guides
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What affects the fees management consultants charge
Fees depend on the work involved and how the professional bills. We only publish fee ranges when they’re backed by real LokalMatch data or reliable sources. Until then, here’s what usually changes the fee:
- Scope and complexity of the work
- How the firm bills: hourly, per project or on a monthly retainer
- Experience of the team
- Timeline and how urgent the work is
- Ongoing support after the work is delivered
How to compare management consultants before you hire
- Ask for examples of similar work for clients like you.
- Read reviews and ask for references you can contact.
- Make sure the scope, deliverables and timeline are written down before work starts.
- Ask who will do the work: an in-house team, freelancers or subcontractors.
- Compare two or three proposals before you decide.
Questions to ask management consultants before you hire
- Have you done work like this before, and can I see examples?
- Who will work on this, and who is my main contact?
- How do you charge: hourly, per project or monthly?
- What is included, and what costs extra?
- How long is the contract, and how can either side end it?
- How will you report on progress?
- Who owns the work, files and accounts you set up for me?
Licences and registration
This kind of work is often limited to licensed or registered professionals, and the rules depend on where you are. Ask which body they’re registered with, and check their status on that body’s public register before you hire.
Guides about management consulting
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Strategy Consultants guide
Strategy consulting is about choices you cannot easily reverse: which markets to enter or leave, which products to fund and which to starve, whether to build, buy or partner, and where the business will make money in…
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Operations Consultants guide
Operations consulting is the measurable end of the trade. The subject is how work actually flows through a business: where it queues, where it gets redone, how long a unit takes from order to delivery, and what a day of…
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