8 common project management problems in consulting firms and how to solve them

Managing projects within consulting firms presents unique challenges that can impact efficiency, client satisfaction, and profitability. Drawing from industry insights and best practices, this article explores common project management problems faced by consulting firms and offers practical solutions to address them

If you’re stepping into the role of a consultant project manager, you’re likely to encounter unique challenges that differ from those faced by in-house project managers. Drawing insights from industry experiences, here are eight significant hurdles you might face:​

8 common challenges in consulting project management

Project management in consulting firms brings a mix of excitement and complexity. Consultants are often hired to solve high-stakes problems, lead cross-functional teams, and deliver outcomes on tight deadlines. But even the most seasoned project managers face recurring challenges that can delay progress, reduce profitability, or damage client relationships.

In this article, we outline some of the most common issues–and how to navigate them effectively with real-world examples and practical solutions.

1. Scope Creep and Shifting Client Expectations

Scope creep is one of the most common pitfalls in consulting. It happens when clients add new tasks or deliverables mid-project without adjusting timelines or budgets. Often, this stems from loosely defined goals or unclear boundaries during kickoff.

To avoid this, align early. Document every deliverable and success metric. If new requests arise, put a formal change process in place to renegotiate scope, time, or cost.

💡 Example: A consulting firm tasked with auditing two departments was later asked to include a third. The Project Manager updated the scope, revised the budget, and got formal sign-off–keeping the project profitable and under control.

2. Poor Visibility into Project Progress

Juggling multiple clients and teams can make it hard to spot issues before they escalate. Without centralized data, PMs often make decisions based on outdated info–leading to missed deadlines and unhappy clients.

The fix? A real-time project dashboard that brings together timelines, budgets, and risks in one place. With the right setup, your team can catch issues early and adjust proactively.

💡 Example: A delayed client approval threatened a software rollout, but the dashboard flagged it in time. The PM reallocated resources and kept the project on track.

3. Lack of Real-Time Client Communication

Consulting is built on relationships. If clients don‘t feel in the loop, trust breaks down. Yet many firms still rely on fragmented email updates and irregular meetings.

A shared client portal changes that. When stakeholders can check status updates, deliverables, and billing info on their own, they‘re more confident and less reliant on your inbox.

💡 Example: A mid-size IT consulting firm introduced a free client portal where clients could view real-time updates. Email volume dropped, and satisfaction scores improved significantly.

4. Inefficient Resource Management

It‘s common for consultants to be overbooked on some projects and underused on others. Without clear visibility, this imbalance leads to burnout or underutilized talent–both of which hurt margins.

Smart resourcing starts with visibility. Track capacity, skill sets, and utilization regularly so you can balance workloads before it becomes a crisis.

💡 Example: An engineering consultancy used a resourcing tool to spot that one analyst was overbooked while another had hours available. A quick shift leveled out the workload and boosted productivity.

5. Cash Flow Delays

Even when you deliver excellent work, delays in billing and payment can choke your cash flow–especially for smaller firms that depend on timely income.

Automating invoicing and linking it to time tracking helps prevent delays. PSA software can generate invoices automatically when a milestone is complete, reducing friction and improving financial stability.

💡 Example: A firm connected its PSA system to its billing tool. Once tasks were marked complete, invoices were triggered automatically, accelerating cash flow and eliminating missed billing.

6. Executive Expectations and Wish-List Requests

Clients often get excited once a project is underway–and they may start suggesting new features or changes that weren‘t part of the original plan. While these ideas are usually well-intentioned, they can slow down progress and throw off timelines.

As a consultant, your job is to deliver what was agreed on. It‘s important to listen and show interest, but always bring the conversation back to the approved scope. If the idea has value, suggest exploring it after the current phase is complete.

💡 Example: During a digital transformation project, a client wanted to add AI-powered analytics. The project manager thanked them for the idea, saved it as a future opportunity, and kept the current phase on track.

7. Overloaded Project Teams

Most consulting team members aren‘t working on just one project–they‘re juggling several. Before assigning tasks, take stock of how busy each person already is.

Assess workloads, and advocate for extra support if needed. Don‘t push beyond reasonable limits–it damages morale and hurts long-term delivery.

💡 Example: A consulting PM found developers supporting multiple projects. By reshuffling priorities and bringing in short-term help, the team stabilized delivery and avoided burnout.

8. Technology Gaps and Disconnected Tools

Many firms still use a patchwork of spreadsheets, task tools, and email–leading to silos and confusion. The solution is an integrated platform that ties together project tracking, time logging, invoicing, and communication.

💡 Example: A business consultancy replaced four tools with a unified PSA Software platform. The result? Faster onboarding, cleaner reporting, and less confusion across teams.

Consulting firms face a myriad of project management challenges that require proactive strategies and effective solutions. By addressing issues such as scope creep, resource allocation, communication, risk management, client relationships, technology integration, and budgeting, firms can enhance project outcomes and client satisfaction. Implementing best practices and leveraging appropriate tools are essential steps toward successful project delivery in the consulting industry.

Solving consulting project management challenges with Birdview PSA

Consulting projects demand speed, precision, and adaptability–but managing shifting client expectations, overloaded teams, and delayed billing can quickly spiral into chaos. PSA (Professional Services Automation) software like Birdview PSA brings order by centralizing operations across projects, resources, and finances.

Consulting firms face constant pressure to deliver high-quality results on time and within budget–all while managing shifting client expectations, tight resources, and complex workflows.

Birdview PSA is purpose-built to tackle these challenges head-on.

From scope creep and resource overload to billing delays and data silos, Birdview PSA gives you the visibility and control you need at every stage of your project.

Its centralized platform allows you to:

🔹 Manage scope creep and client requests

🔹 Track billable hours accurately

🔹 Improve project visibility across teams

🔹 Balance workloads with smart capacity planning

🔹 Streamline client communication

🔹 Automate reports and dashboards in real time

🔹 Simplify billing and improve cash flow

Whether you‘re juggling multiple clients or stepping into a troubled engagement, Birdview PSA empowers consulting project managers to stay organized, improve collaboration, and consistently deliver results.

In short, PSA software empowers consulting project managers to deliver smarter, faster, and more profitably–even when the pressure is on.

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