I just finished watching Season 7 of Drive to Survive, along with millions of other viewers. For the uninitiated it's Neflix's hit Formula 1 racing reality show that changed the game for F1 in the US market.

I bring this up not for the genius marketing success that it was for F1, but for a particular thought it brought to mind as it relates to a particular hiring mistake I see boutique consulting firm founders make fairly often - hiring based on pedigree.

The 2024 F1 season likely spelled the end for the career of Daniel Riccardo - the once superstar driver for RedBull Racing. He was at the top of his game at RedBull but was recruited to then drive for Renault and McLaren, and failed to perform in both cases. And when he was later picked up to RedBull's second feeder team, he also didn't perform.

I bring this story up because it has amazing parallels to how many boutique firms hire - they try to bring in people who succeeded at a high level in much bigger organizations - which often fails. You see this with boutique firms trying to hire consultants from the big firms, or sales leaders with a rolodex of connections, or top level executives from industry. I am not saying that doing any of these things is guaranteed to fail. But I am saying that there is inherent risk involved that many fail to acknowledge and address.

Lie: Hiring from the Big Firms will Elevate Our Standing

The belief is that hiring consultants who did well at the Big 4 or MBB will bring instant credibility, innovative processes, and sophisticated strategy. The thought is that the presence of these people alone - the ability to say "our consultants come from the big firms" - will elevate the boutique firm's stature and help land bigger and better clients.

Reality just doesn't work that way.

Imagine bringing in a Michelin Star chef to run a food truck. The chef is used to having a high-end appliances, the best ingredients, a full team to execute each dish to perfection, and a prestigious name that helps to attract well-paying customers who come come for the experience and the status. That chef would likely struggle running a food truck where they are mostly on their own, where speed is of the essence, where supplies are limited, and where they have to do their own dishes.

There is a lot of expectation and pressure, but at the end they end up struggling to adapt to operating under a brand without massive trust and credibility built in, to operating without massive resources and proven systems, to operating operating in an environment where they have to wear multiple hats (e.g. strategy AND execution).

The reality is that the perceived reputation that they have, isn't actually their own. It doesn't mean that they didn't do amazing work at the big firm - they likely did, or you wouldn't be looking to hire them - but their reputation is based on the reputation of the big firm. And this same logic applies to their client relationships. Once you get past all the non-compete agreements and non-solicitation clauses, the relationships that you could access, often are built through the big firm, and once the individual leaves that environment that relationship often weakens.

The simple fact of the matter is that they culture in Big 4 and MBB is drastically different than in the majority of boutiques. Adaptability, and the ability to deal with ambiguity is at a premium inside boutique firms. And those aren't necessarily traits that are present or needed inside big firms.

Don't get me wrong. I'm not saying that you should never hire anyone from the big firms. But you should consider the traits you need to see from those candidates to have confidence that they can be successful in your boutique environment.

Lie: Hiring a Sales Leader with a "Rolodex" Will Help You Shift from Founder-Led Sales

The belief is that hiring a senior sales leaderfrom the Big 4 or MBB will allow you to access their extensive network to close deals and bring in a flood of new business quickly.

Reality just doesn't work that way.

Let's look at another sports example - NFL quarterback Russel Wilson. He was a Super Bowl winner with the Seattle Seahawks and a consistent Pro Bowl selection. The Denver Broncos paid a boatload of money to acquire him in 2022, and ended up benching him in 2023. The problem was that he came from a system that was tailor built for him, and put into a system that wasn't. You see this a lot in sports, where a superstar player is brought in to a struggling franchise with the expectation of immediately turning the team around.

These players thrived in a previous environment, surrounded by othe great players, with a top coach, and a strong organization. But now they have to carry the entire team on their shoulders. Even Michael Jordan didn't win any titles until a better organization was built around him.

Just because a sales leader had amazing success at a large firm, does not in any way mean they will be able to replicate that same success in a boutique firm, where they will no longer have access to an established and trusted brand. A rolodex doesn't equal revenue. For many of the people in that rolodex, that sales leader was the "McKinsey guy/gal". But now, they are with what firm? Never heard of them.

Also because of that big brand, these people are often used to have the business come to them - they often aren't used to prospecting. That just won't fly in a boutique firm.

Don't get me wrong. I'm not saying that you should never hire a senior sales leader from a big firm. But you should try to get a feel for how they would adapt to an environment where they can't rely on the big brand.

Lie: Hiring Industry Veterans Will Build Credibility and Elevate Execution

The belief is that hiring a former industry executive, especially if they are former F500 leader, will attract clients, add credibility, and bring deep epertise that will elevate the performance of their team.

While there can be some truth to this, think about how many Hall of Fame athletes you know that turned into top coaches in any major sport. Just because someone was an exceptional player doesn’t mean they can teach, analyze, and adapt strategies for others. They excelled an playing the game, often with one particular organization. They have amazing instincts, but they often struggle to translate that into guidance for other players.

The same is true for transitioning from industry to consulting. Industry experience doesn't necessarily mean consulting expertise. Successful industry leaders are great at doing the work, but consulting requires the ability to diagnose, advise and drive meaningful change across many organizations. It means spending the time to learn the nuances of each business, ask great questions, evaluate the possibilities, provide realistic recommendations, and help them see those recommendations through. Simply going based on instinct won't fly.

Then there is the business development component which they are likely not accustomed or suited to. Being an executive in industry, they likely aren't used to convincing clients to trust them. And even with their large network, they may not be able to generate significant revenue because many of those relationships are transactional and tied to their previous industry role.

Conclusion: You Have to Hire Based on Fit and Adaptability, Not Just Pedigree

I've fallen into all of these traps before when I ran a marketing agency. I hired someone from industry who had amazingly deep expertise, but ended up not working out because they didn't have the ability to effectively manage multiple client workloads nor the client relationships. I also hired someone because of their experience in a larger well-known agency, but the culture fit was just wrong. I hired a sales coach who was a superstar sales guy (consistent presidents club across several companies) but his ability to teach just wasn't there.

Chasing high profile resumes may look like a short cut on paper, but in reality it often turns into frustration and wasted resources. In a boutique firm environment, especially if it's a smaller boutique, you need to look for people who thrive entrepreneurial settings, who understand how to build trust and credibility on their own, who can wear multiple hats (strategize, do the work, teach others how to do the work). Culture fit, is the most important.

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