Some companies have done this, but it's relatively rare. Siemens, Schlumberger, and Unipart are three examples.It tends to be more common in engineering consulting than management consulting - perhaps because it's more common to work with partners/competitors and the intellectual capital is more easily protect-able by patents. Commonly they're offering a limited range of services and only to organisations within their industry/supply chain - more a specialist service provider with access to specific proprietary data or "off the shelf" services than a true consultancy that tackles anything clients come up with. If clients think your "consulting" is biased by your company's main business, you might have a competitive conflict of interest, or that you might not be committed to them and they won't give you access to their interesting projects.In your specific instance, the company might run into legal problems if the department's using any McK-based materials or methods and then goes into competition using them. Cleansing the organisation and retraining everyone might make the idea a commercial dead duck. If it's only been around two years, the experience and reputation of the department may not be adequate to go to market/be allowed to go to market. Unless the company has a history and experience in launching new businesses, most big companies don't have the innovation culture or risk appetite to follow through on these things.