Too Much Consulting?

This is an interesting article by economist Robin Hanson on why large firms believe they get a good return on management consultants.

The puzzle is why firms pay huge sums to big name consulting firms, when their advice comes from kids fresh out of college, who spend only a few months studying an industry they previous knew nothing about. How could such quick-made advice from ignorant recent grads be worth millions? Why don’t firms just ask their own internal recent college grads?

Read the full article for his brief, detailed, and satisfying answer, which echoes my experiences in the Navy and the private sector.

Well worth it.

via Jiaqi Li and Horace Dediu