Beware Management Consultants

(iceland.co.uk)

239 points | by KolmogorovComp 1 hour ago

18 comments

  • notahacker 1 hour ago
    Not gonna lie, the website of a remarkably ordinary frozen food supermarket found on most UK high streets is not where I'd expect to find this kind of content :)
    • codeulike 3 minutes ago
      Malcolm Walker, the founder and his son Richard Walker the current chairman are (for such an ordinary seeming supermarket) surprisingly progressive and have often spearheaded sustainability and corporate responsibility campaigns. Malcolm Walker was an active member of Greenpeace and Iceland worked with Greenpeace on several campaigns over the years.
    • RobotToaster 26 minutes ago
      Never thought I'd see them posted on here, but I honestly have a lot more respect for them after seeing this.
    • outofpaper 48 minutes ago
      I wish I new of more gems like this. Company sites that go into detail where they went wrong and how they turned things around make for both amazing reading and great educational material.
      • Taikhoom10 11 minutes ago
        I try to dig into this exact material, not to self-promote, but this is generally interesting. You should look into RJR nabisco.

        https://s-1.vercel.app/

    • zaphod12 1 hour ago
      and here I thought it was from the Nation of Iceland and was very impressed by the volume of their anti-management consultant stance.
  • hadrien01 1 hour ago
    The entire section of the website about 'The Dark Ages' is priceless. They don't pull any punches: https://about.iceland.co.uk/our-story/the-dark-ages/
    • afavour 53 minutes ago
      The operating profit chart too, oof:

      https://about.iceland.co.uk/our-performance/

      • Taikhoom10 9 minutes ago
        Yeah, except profits are down from the peak. I do not know enough about the market, but my suspicion is that they basically benefited by focusing on a specific market, "Focus," and will basically see this erode over time as more companies in the high end move into their market.
      • chiph 23 minutes ago
        That's pretty shocking.
  • arjie 1 hour ago
    Private firms are entertainingly idiosyncratic in ways only founder-powered public firms barely approach. The other big one I find entertaining is Dr Bronner’s soap which has a massive label full of dense text that is totally stream of consciousness sentences. Amazing.

    Perhaps it’s a characteristic of closed groups. SQLite has its moral code that is the Ten Commandments++. Good stuff.

    • rwmj 4 minutes ago
      Weird story ... Dr Bronner also appeared in the greatest unreleased movie ever made. With Bill Murray and Dan Ackyroyd and Liz Taylor's ex husband. And it was the only movie Dr Bronner appeared in according to imdb: https://www.imdb.com/name/nm0111462/
  • schnevets 34 minutes ago
    I smirk and laugh this little slideshow and then remember that my own work involves internal tools to promote governance and productivity while formalizing requirements to two outsourced developers.

    I don't think I'm one of the red team's 7 captains, but I don't exactly have my hands on the paddle every single day. After all, I can find the time to lollygag on HN between 9-5.

  • gadiyar 39 minutes ago
    Isn’t this the same company that had the trademark dispute with Iceland the country?

    https://en.wikipedia.org/wiki/Iceland_v_Iceland_Foods_Ltd

    • justeoghan 18 minutes ago
      This is a great read thank you.
  • haunter 14 minutes ago
    Funny because the tier list sub on reddit had a vote just a week ago about the UK supermarkets and Iceland only got a D https://www.reddit.com/media?url=https%3A%2F%2Fi.redd.it%2Fh... (not that it matters considering Tesco got an A)
  • Taikhoom10 38 minutes ago
    I think generalizations are usually bad. I genuinely am weirded out by management's fascination with consultants. It really is about incentives, and consultants usually do not have the right ones, at least the big ones. Also, there are management which feel like companies always need change, but really you have to examine the competitve position within the broader industry not just a vacumm. Things honestly stay the same for a long time. IBM had more revenue then Microsoft all the way up to the early 2010s. Switching costs are powerful - https://s-1.vercel.app/posts/why-dropbox-is-a-obvious-pe-tar...

    I think a key takeaway is the human nature to constantly act, and not just sit and do nothing. Lot's of value in sitting around, especially in investing.

  • bigmattystyles 40 minutes ago
    "What would you say you do here?" - The Bobs
  • ang_cire 49 minutes ago
    Am I misreading something, or was it not in fact the corporate leaders who torpedoed the reorg suggestions they knew were coming, who were at fault?

    This is a classic hierarchy-brain/ bureaucracy problem, where "leaders" think the top is more important to the org than the bottom.

    • ivanbakel 37 minutes ago
      My interpretation of the parable is really just that management consultants are paid to tell you what you already know and give you the conclusions you want to hear - hence why their "solution" is non-specific and the retrospective analysis vindicates what upper management already wanted.

      It's also a criticism of management-heavy offices who have lost touch with reality, but consultants are a byword for such things, so I guess the title is succinct at the cost of accuracy.

  • sillywabbit 1 hour ago
    The antique illustrations on this are fantastic.
    • cjs_ac 54 minutes ago
      They’re a set of clip art provided with Microsoft PowerPoint called ‘Screen Beans’.
  • unfunco 1 hour ago
    That's why mums go to Iceland.
  • jldugger 1 hour ago
    I think I'm missing a _lot_ of context here. Obviously management consultants are sycophantic but why post this now?
    • kristianc 52 minutes ago
      Score-settling by the ousted (and then returning) CEO Malcolm Walker. After Iceland merged with Booker in 2000, Walker was pushed out and a new management team led by Bill Grimsey took over. Sales declined, head office staff ballooned and they hired a lot of McKinsey types. Walker's point is that they'd overcomplicated what was basically quite a simple business.
      • mikepurvis 40 minutes ago
        Interestingly the "dark ages" subpage is not linked from the parent page: https://about.iceland.co.uk/our-story/
        • kristianc 12 minutes ago
          Reading between the lines, you kind of get the picture...

          2006 A spectacular turnaround sees a 10% sales decline turned into growth of 20% year-on-year by March 2006, making Iceland the UK’s fastest-growing food retailer.

          2005 The Big Food Group is taken private and Iceland returned to the management of Malcolm Walker and other senior executives who had been ejected in 2001.

          2004 The Big Food Group is nearing bankruptcy as provisions made in 2001 come close to exhaustion.

          2002 Iceland-Booker is renamed The Big Food Group and launches a grandiose recovery plan (Click here to read the saga of ‘The one, two, three, four, five year recovery plan’) but customer numbers and sales remain in steady decline while costs escalate.

          2001 New Iceland chief executive Bill Grimsey issues a massive profit warning, and Malcolm Walker and other senior managers are forced to leave the company

    • john_strinlai 33 minutes ago
      someone saw this comment: https://news.ycombinator.com/item?id=49350677

      and thought it was interesting enough to submit on its own

    • ferngodfather 1 hour ago
      They saw it commented on another thread.
  • paulorlando 32 minutes ago
    That last line: "...to demonstrate fiscal and HR dexterity for stockholders..."
    • Havoc 23 minutes ago
      >HR dexterity

      Well that's cursed

  • sscaryterry 1 hour ago
    This is nice big fat fuck you to the mercenaries that come and destroy companies. Well done Iceland.
  • danesparza 29 minutes ago
    I mean, the movie "Office space" could have taught you that lesson almost 30 years ago.
  • bmiekre 50 minutes ago
    Class
  • mkoubaa 1 hour ago
    PE turning a beloved brand into a soulless skin suit exhibit no. 63631
  • dvaplima 1 hour ago
    Thats a good point of view of the traditional Managment consultants, now for the "AI era", this type of interventions will not exist Maybe now the Big coorp will finally get closer to real life solutions to the problems companies face
    • KaiserPro 41 minutes ago
      I wish.

      My company is "AI native" in the sense that even though we are not a tech company we are using it heavily to build a bunch of tech that makes us more efficient.

      Think building better SaaS products around our actual process rather than whatever bespoke niche SaaS product provides. this has yielded real savings in both software costs and efficiency. Compared to our peers, we are light years ahead. Even the supposed "leading AI readiness consultants" hired by the group board agreed.

      our board have still hired kpmg[1] or some other vague merchant to come and help us deliver "efficiencies"

      [1] its not them, but I want to keep some level of mystique about where I work

      • amarcheschi 26 minutes ago
        I'm curious to know what they have been providing in suggestions up to now, can you tell us?
      • hahahaa 31 minutes ago
        Maybe GMPK should do a protection racket of sorts. Pay us 1% of revenue and we wont send the consultants j/k
    • sublinear 32 minutes ago
      Nope. Everyone has their strengths and should avoid some types of work. AI doesn't change this.

      Many consultants and entrepreneurs are too shameless to do that. AI only amplifies their dysfunction.

      What most businesses are doing instead is squeezing their middle management to do more with less. No consultants. AI is cheaper. This squeeze happens every time the economy stagnates, and adding AI as "help" is irrelevant.