The reason for this practice is lack of confidence in the value of management consulting services. “In the West, there is reticence in terms of success fees. It is felt that this system can conflict with the consultant’s ethics,” according to the President of Romania’s Management Consultants Association (AMCOR), Mihai Svasta.
Most companies used to believe that management consultants were “selling air,” so paying only for results became the current practice in Romania, Initial Advisory’s Managing Partner, Marian Stoian, said.
There are many means of making payments for such services, according to Svasta. These include daily fees, success fees, global tariffs, or two or three combined methods, AMCOR’s President said.
