The consulting industry is undergoing a quiet but profound shift, moving away from a legacy of rigid frameworks and generic tech-first approaches toward something more human.
Today, clients are demanding more than just technical expertise - they want advisors who can integrate seamlessly with their teams, communicate with empathy, and bring together digital tools and human insight to build solutions that make sense in their unique cultural and organisational contexts.
The consulting industry is moving away from a legacy of rigid frameworks and generic tech-first approaches toward something more human. iStock
This evolution is being driven by a growing recognition that people-first consulting isn’t just good ethics - it’s good business. A growing understanding of clients’ needs and workplace dynamics is reinforcing that trust isn’t a soft skill – it’s a strategic advantage.
A recent McKinsey report found that leaders who show empathy have a profound impact on employee wellbeing, engagement and performance, reinforcing that trust isn’t a soft skill - it’s a strategic advantage for business.
Legacy consulting approaches – often anchored in rigid frameworks and vendor-driven agendas –have unintentionally distanced themselves from the trust and empathy modern organisations now demand.
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“Traditional consulting partners have a reputation for lacking empathy by providing generic and technology only solutions that fail to address business challenges and the client ends up bearing the cost of this,” says Luke Stow, managing director at next generation consultancy, Alchemy Solutions.
Luke Stow, managing director of next-generation consulting firm Alchemy Solutions.
“As a result, empathy has become an indispensable skill in consulting because it is what allows a consultant to truly understand the client’s needs and the outcomes they’re looking for.”
This shortfall in understanding of client needs, context and desired outcomes can manifest in a number of costly ways. Many businesses are now wary of consultants who obscure their relationships with software vendors and third-party providers.
“One common issue businesses often face when engaging a consultancy is around disclosure of commercial agreements which can exist between the consultancy and software, hardware and other technology providers,” Stow says.
“Do you really want to partner with a party that doesn’t declare kickbacks in partnering fees, software licensing and third-party services?”
He says this lack of transparency can erode trust and compromise outcomes. It also underscores a broader challenge: the transactional nature of many consulting relationships.
That deeper trust comes from consistently making it a priority to deliver the best outcomes for the client. Something that is commonly overlooked by organisations when working with a consultancy, he says, is an over-reliance on external consultants at the expense of internal capability building.
“Another challenge we come across is when businesses rely too heavily on consultants without involving internal teams, which can hinder ongoing ownership, knowledge transfer and long-term impact.
“You want your consulting partner to not only provide capability but to also help you build the capability you need to sustain the benefits, so your business success is not dependent on them.
“Part of Alchemy’s human-centric approach includes helping clients build their own AI core - not just through technology deployment, but by embedding skills, frameworks and training that empower internal teams.
“The aim is to leave clients stronger, not more dependent. That means delivering not just outcomes, but enduring capability.”
Increasingly, organisations are rejecting a one-size-fits-all model in favour of consultancies that focus on human dynamics and cultural alignment.
“We have a huge focus on understanding our client’s business by actively listening,” Stow says. “This results in building stronger relationships, fostering trust, and developing solutions that are not only effective but also meaningful and tailored to maximise outcomes for our client’s business context.
“For example, with this approach we helped our client AusNet quickly deliver improvements to their first contact resolution metrics for their customers”
Alchemy Solutions co-designed a first call resolution (FCR) framework in close partnership with AusNet’s subject matter experts and frontline service teams. Rather than applying a standardised model, they shaped the framework around the energy provider’s operational constraints and regulatory environment.
“The result was clearer metrics, better data visibility, and actionable insights that empowered staff across the organisation,” says Stow.
This inclusive, agile delivery method not only improved service quality and reduced costs, but also helped AusNet enhance support for vulnerable customers and meet compliance requirements set by the Australian Energy Regulator (AER). It has since become a scalable foundation for continuous improvement – one that connects customer experience directly to operational levers.
Culture is another piece of the puzzle. While price can often drive decision-making, failing to consider cultural fit can lead to frustration and misalignment.
“We see businesses overlook deep cultural and organisational differences, sometimes taking the cheapest option available, resulting in friction and suboptimal outcomes,” says Stow. “We find ourselves being engaged in these types of situations to remediate and uplift delivery for our clients.”
Stow believes the future of consulting will rest on the ability to blend adaptability with authenticity.
“By taking the time to understand the client’s values, mission, and working environment we’re able to align our approaches and communication styles with their culture which results in our consultants being able to foster smoother collaboration,” he says.
It’s a method designed to amplify collaboration, not just at the leadership level but throughout the client organisation.
“A people-first approach creates a foundation for collaboration and innovation by prioritising the needs and wellbeing of employees, clients, and stakeholders,” Stow says.
“Trust is built when people feel valued and supported, resulting in more creative problem solving, stronger partnerships, increased productivity, and sustainable growth for business.”
This trust becomes even more critical as technologies like AI become more embedded in decision-making processes.
“As organisations navigate a landscape shaped by automation and analytics, they need partners who can not only provide technical capabilities but also build trust around those capabilities - showing clearly how they add value and align with business goals.”
Looking ahead, the expectation is that this approach will only become more central as clients grapple with complex change and increasing pressure to deliver outcomes that are both technologically advanced and human-centric.
“The future of consulting will be increasingly focused on human-centric methodologies, people are the ultimate change agents,” says Stow.
Technology, particularly AI, will remain part of the toolkit - but not at the expense of genuine connection.
“Consultants will need to adopt more iterative and adaptive practices, leveraging advanced technologies like AI to enhance efficiency without losing the personal touch,” he says.
“At Alchemy, AI isn’t just another tool – it’s embedded in how we work. From streamlining delivery to unlocking real-time insights that drive more personalised client outcomes, AI is helping consultants deliver higher-impact engagements faster and with more precision. These digital ways of working are redefining what next-generation consulting looks like in practice.”
That people-first, technology-enabled approach is gaining traction across the industry, with seasoned executives recognising the clear link between human connection and transformation outcomes.
Among them is Peter Sherar, a veteran CFO who has worked with Australia’s leading consulting, IT advisory and technology platform businesses, including SMS Management and Technology and, most recently, Automic Group.
Veteran CFO Peter Sherar.
Sherar says technology and data are fundamental to any modern transformation program, but they are only part of the picture.
“Technology and data is pervasive within any successful business today. While technology and data are typically central to any transformation or consulting project, it’s how humans interact and use technology and data,” says Sherar.
“This requires consultants to understand the human connections, working in a very integrated way with their clients in a more localised and collaborative manner.”
It’s here that the combination of AI and empathy creates a powerful advantage.
“By delivering real-time insights that are meaningful and actionable, consultants can demonstrate tangible value while also tailoring strategies to the unique needs of their clients. This dual focus on intelligence and intuition helps build the trust that makes change stick.”
He says that collaboration has become more than a cultural nice-to-have - it is now core to unlocking the true potential of a business’s information and tools.
“With so much data captured today, employees and customers expect a higher level of business understanding of their needs, their preferences and their habits,” Sherar says.
“Unlocking that understanding will drive change, culture, efficiency and growth. Consulting with a technology solution alone cannot achieve these outcomes, but consulting models that place equal importance on both humans and technology are driving more successful business outcomes.”
Sherar says that while this shift is happening across the board, the biggest gains are being made by leadership teams that already value integrated thinking.
“There are not necessarily any particular industries that are leading the shift, but businesses with high-calibre management teams are more aware that understanding the human connections alongside technology and data have a better return on investment and will give them a competitive edge,” he says.
According to Sherar, the true challenge of transformation is behavioural - and that makes trust non-negotiable.
“Transformation is about change and changing behaviours,” he says. “To achieve the desired change outcomes requires building trust and buy-in from those impacted by the transformation, so a people-first approach to the project significantly increases the likelihood of success.”
That trust, he says, is earned through clear, compelling and compassionate communication. “Empathy, persuasiveness, and crystal clear communication skills,” Sherar says, listing the core ingredients for modern consultants to succeed in high-stakes change environments.
In the end, what is emerging is a new vision for consulting - one where empathy, integration and adaptability are as important as strategy, systems and scale. Human connection is no longer a soft skill on the side.
It’s the connective tissue that brings technology, teams and transformation together - and it’s redefining what great consulting looks like.