

Winner Takes All: Success-to-the-Successful at Apex Consulting Group
A consulting firm keeps rewarding its star practice until there's nothing left for anyone else. The system thinks it's winning. It's eating itself.
Duration
45 min
Difficulty
Intermediate
Stakeholders
5
Company Size
Medium (100-500)
Organizational Background
Apex Consulting Group is a 400-person management consulting firm organized into five practice areas. Its Digital Transformation practice is the star: it generates 55% of revenue, has the highest margins, and attracts the firm's top talent. The other four practices-Operations, People & Change, Strategy, and Risk-increasingly serve as feeders or support functions. The firm is caught in a 'success to the successful' reinforcing loop. Because Digital Transformation is successful, it receives more investment, better talent, more marketing, and preferential project staffing. This makes it more successful, which justifies more investment. Meanwhile, the other practices lose resources, which reduces their performance, which justifies further resource shifts to Digital. The loop is self-reinforcing and, left unchecked, will hollow out the firm's diversified capability. The system has balancing loops that should counteract this-leadership reviews, partner equity structures, strategic plans-but these loops are weak and delayed. The firm's open-system environment (client demand, talent market, competitor positioning) sends signals that reinforce the loop: clients want Digital, talent wants Digital, so the market itself feeds the imbalance. The Managing Partner has engaged a systems thinking consultant to help the partnership see the structure, understand its long-term risk (a single-practice firm is fragile), and design interventions that rebalance without killing the golden goose.
Key Stakeholders
Learning Objectives
- Diagram the success-to-the-successful reinforcing loop linking performance, resource allocation, and future performance
- Identify the balancing loops that should counteract resource concentration and analyze why they are weak or delayed
- Analyze how the open-system environment (client demand, talent market) reinforces internal imbalance
- Evaluate the long-term risks of reinforcing loops that concentrate capability in a single area
- Design interventions that rebalance resource allocation without destroying the successful loop's momentum
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