At the firm's annual partner meeting in San Francisco, Deloitte Consulting CEO Doug McCracken announced a decision to move forward with plans to become the "consulting firm of the future." The operating model will be that of a privately-held company.

Mr. McCracken explained that the firm's vision is to create a stand-out consulting firm, built entirely around the needs of clients. "While others appear to be backing away from the term 'consultant,'" he said, "we are embracing consultancy as our business and accepting the challenge of creating a more relevant professional consulting model. We intend to redefine the consulting industry."

The steps being taken now to achieve Mr. McCracken's vision include:

• Changes in internal measurement and reward systems designed to better align career advancement with the firm's ability to deliver value to clients.
• New client-facing roles for senior principals who previously led practices or served in senior management roles.
• R&D embedded in clients' organizations rather than the firm itself.
• Exploration of new types of relationships with clients, such as joint ventures and profit sharing, that only become possible with independence.
• A new name and brand to be introduced later this year and to be focused entirely on providing consulting services to clients.

The plans are still in the formative stage. When details of the separation structure are completed and accepted by the leadership of both firms, the separation proposal will be subject to approval by the partners and principals of Deloitte Consulting and the affected member firms of Deloitte Touche Tohmatsu. The proposed separation structure will also be subject to regulatory approval. The separation is expected to be complete by the end of this year.

Other options evaluated and rejected include a merger, a sale to another firm, an initial public offering, and an arms-length relationship with Deloitte Touche Tohmatsu.

-Rosemary Schlank