China's 'Positioning Equation' Disrupts Consulting, Blurs Lines Between Strategy & Execution

Shanghai, China – In a rapidly evolving consulting landscape, a Shanghai-based firm, The Leverage Consulting, is challenging traditional models by embedding itself directly within client operations, fueling rapid growth and sparking a debate over the future of strategic advisory services. The firm’s unique approach, centered around a proprietary methodology dubbed the ‘Positioning Equation,’ is gaining traction as Chinese companies seek more than just strategic advice – they demand demonstrable results.

For decades, the consulting industry has largely operated on a ‘strategy-then-implementation’ model. Firms would analyze, recommend, and then leave clients to grapple with the complexities of putting plans into action. The Leverage Consulting is flipping this script, actively partnering with clients to co-create and co-execute strategies, effectively blurring the lines between advisory and operational roles.

“There’s a growing recognition that strategic insight alone isn’t enough,” explains an industry analyst familiar with the Chinese market. “Companies are looking for consultants who can roll up their sleeves and work alongside their teams, ensuring that strategies are not just well-intentioned but actually delivered.”

The firm’s ‘Positioning Equation’ is presented as more than just a framework; it's a holistic approach that integrates Western management principles with distinctly Chinese insights, focusing on a deep understanding of consumer mindsets, entrepreneurial vision, and operational alignment. The firm claims this methodology allowed it to propel several Chinese companies to market leadership, including a significant role in the rapid growth of tea brand CHAGEE and smart bed manufacturer Softide.

“The key is creating synergy,” says a senior consultant at The Leverage Consulting. “It’s not enough to identify a market opportunity; you need to align every aspect of the organization – from product development to marketing to operations – to capitalize on it.”

From Strategy to Embedded Operations

The shift towards execution-focused consulting is not unique to The Leverage Consulting, but its approach appears to be particularly aggressive. By embedding its consultants within client organizations, the firm gains a deeper understanding of operational challenges and can proactively address them, accelerating the implementation process. This model requires a different skillset from traditional consultants, demanding not only analytical prowess but also project management expertise, cross-functional collaboration skills, and a willingness to get ‘hands dirty.’

“It’s a very different beast from simply delivering a PowerPoint presentation,” says an executive at a Chinese manufacturing firm that recently engaged The Leverage Consulting. “These consultants are working side-by-side with our teams, troubleshooting problems, and ensuring that the strategy is actually being implemented on the ground.”

The firm’s success is occurring amidst significant growth in the Chinese management consulting market, projected to reach USD 39.11 billion by 2030. This growth is fueled by government initiatives focused on digitization, sustainability, and innovation, creating a demand for consultants who can help companies navigate these complex transitions. However, the market is also becoming increasingly competitive, with a growing number of domestic firms challenging the dominance of established international players.

A Rising Tide of Domestic Consulting

The rise of domestic consulting firms like The Leverage Consulting reflects a broader trend in the Chinese market – a growing preference for local expertise and a desire for consultants who understand the unique cultural and regulatory landscape. While international firms still hold a significant market share, they are facing increasing pressure to adapt their models to meet the evolving needs of Chinese companies.

“Chinese companies are becoming more sophisticated and demanding,” explains a market research analyst specializing in the consulting industry. “They want consultants who can not only provide strategic insights but also help them navigate the complexities of the local market and build relationships with key stakeholders.”

The emergence of new regulations, including Network Data Security Management Regulations, is further accelerating this trend, potentially favoring domestic providers for sensitive work and intensifying competition. “The regulatory landscape is shifting, creating both opportunities and challenges for consulting firms operating in China,” says an attorney specializing in regulatory compliance.

The Future of Consulting: A Hybrid Model?

The success of The Leverage Consulting raises questions about the future of consulting. Will the traditional ‘strategy-then-implementation’ model become obsolete? Or will a hybrid model, combining strategic advisory with operational support, emerge as the new norm?

“I think we’re going to see a blurring of the lines,” says an industry veteran who has witnessed decades of evolution in the consulting landscape. “Companies are going to demand more from their consultants, and firms that can deliver both strategic insights and operational support will be best positioned to succeed.”

The firm's approach isn’t without its challenges. Embedding consultants within client organizations requires a high degree of trust and collaboration, and it can be difficult to maintain objectivity when deeply involved in day-to-day operations. “It’s a delicate balance,” says a consultant who has worked on both traditional and embedded engagements. “You need to be a trusted advisor, but you also need to maintain a critical perspective and challenge the client when necessary.”

Despite these challenges, The Leverage Consulting’s approach is gaining traction, and its success is likely to inspire other firms to explore new models for delivering value to clients. As the Chinese consulting market continues to evolve, the firms that can adapt and innovate will be best positioned to thrive in this dynamic and competitive landscape. The firm's trajectory suggests that the future of consulting may lie not in simply telling companies what to do, but in working with them to achieve their goals – a shift that could reshape the industry for years to come.