# Beware Management Consultants

How wrong decisions and restructuring processes can lead to failure?

- **Source:** [Hacker News (news.ycombinator.com)](https://brifing.si/source/13c923cd-6d99-442b-9b8b-1181f4d8cd91)
- **Published:** 2026-08-18
- **Topic:** [Leadership](https://brifing.si/c/leadership)
- **Original article:** <https://about.iceland.co.uk/our-story/the-dark-ages/beware-management-consultants/>
- **On Brifing:** https://brifing.si/s/25d16794-21bc-4f98-949c-3915081991fe

## The Start of the Race

Both Red and Green teams worked hard to prepare for the race. Despite their defeat, the Red team was determined to win next year. They established an auditor panel to observe the situation and identify differences between the teams. After detailed intelligence gathering, the auditors found only one difference: the Green team had 7 rowers and 1 captain, while the Red team had 7 captains and 1 rower.

## The Consulting Company Steps In

Upper management showed unexpected wisdom and hired a consulting company to analyze the data and propose a solution for the Red team to win next year. After several months of analysis, the consultants concluded that the captain-to-rower ratio was the problem and suggested restructuring the Red team.

## The Restructuring Process

Upper management quickly initiated the restructuring process and reorganized the Red team into 4 captains, 2 managers, and 1 senior director. They also proposed a non-monetary reward and recognition program to improve the rower's performance. However, the Green team won by 2 miles the next year, and the Red team fired the rower for poor performance.

## Captains and Managers Rewarded

Upper management awarded bonuses to the captains, managers, and directors for their strong leadership and motivation during the preparation phase. These rewards were also an incentive for them to find a better rower for the next race. The consulting company prepared an analysis of the restructuring activities, confirming that the strategy was good and the restructuring was executed correctly.

## New Boat and Outsourcing

Red team management decided to design a new boat and outsourced the rowing to India to demonstrate fiscal and HR dexterity to shareholders. This move aimed to reduce costs and increase efficiency, but its long-term success remains uncertain.

## The Consulting Company's Final Analysis

The consulting company prepared an analysis of the restructuring activities, confirming that the strategy was good, motivation was high, and the restructuring was executed correctly. However, they identified that the tool used was sub-standard and needed improvement. This analysis serves as an important lesson for future strategies.

## Future Steps

Red team management decided to design a new boat and outsourced the rowing to India to reduce costs and increase efficiency. However, the long-term success of this strategy remains uncertain. Management must carefully plan future steps.

## Conclusion and Lessons

The Red team's experience shows how wrong decisions and restructuring processes can lead to failure. The consulting company's analysis and recommendations emphasize the importance of correctly implementing strategic decisions. This story reminds us to be cautious in leadership and decision-making processes.

## Sources covering this story

- https://about.iceland.co.uk/our-story/the-dark-ages/beware-management-consultants/ — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._
