[DoingIsLearning]

There is definitely a level of networking effects and downright cronyism.

However one thing that is less talked about is that external consultants are extremely useful to implement unpopular decisions or to 'settle' disputed decisions.

If investors appoint a new CEO and he needs to implement something unpopular like fire people, it is much easier to get the whole board behind the decision if an external consultancy "analizes" the issue and proposes measures (usually aligned with the CEO's direction).

The same thing happens with 'factions' of the board if some people are behind a proposal but are being blocked be another 'faction', an external consultancy can act as a arbiter (usually in the direction of those who hired them).

A useful consequence is that in terms of accountability you can always take cover behind the recommendation of the subject matter expert consultants.

All that said there are definitely a lot of bright people with insightful knowledge in that field. My point is that consultancy as a business also ends up serving a less glamorous purpose.