A profession in administration consulting is glamorous. Its perks embrace plenty of touring, beneficiant compensation packages, interactions with top-level administration, publicity to studying alternatives, and the pleasure of engaged on complicated enterprise issues.
However the consulting profession path additionally has its challenges. Mika Kim, a former marketing consultant at one of many Large 4 consulting companies, stories working a median of 12 hours per day. Different anecdotal proof suggests burnout induced by lengthy working hours could possibly be a core cause consultants give up the roles they as soon as labored onerous to get.
The purpose? Consulting isn’t for everybody. On this article, we’ll provide you with a complete overview of the consulting profession path. You’ll be taught what a consulting job entails and be capable of determine if a profession in consulting is best for you.
Desk of Contents
What’s consulting?
Consulting is the follow of bettering a company’s efficiency by offering skilled, research-based administration recommendation. Administration recommendation covers operations, technique, finance, advertising, and governance.
The bottom wage for entry-level consultants at top-tier consulting companies is $83,500 a 12 months, in keeping with CaseInterview, a good administration consulting weblog. That’s an enormous deal for contemporary graduates simply beginning within the subject.
This typically makes consulting lovers surprise, “What are the distinctive insights/abilities that justify the excessive compensation of consultants?”
First, right here’s an necessary clarification: Consultants aren’t precisely accountable for fixing consumer issues. They’re the bridge between shoppers and subject material consultants with the technical experience to resolve their shoppers’ issues.
Seems like a easy job, but it surely’s onerous. Right here’s what a typical venture journey seems to be like:
- A marketing consultant (let’s name her Claire) interviews her consumer (normally a top-level supervisor) to establish issues impeding the group’s development. Claire’s purpose? Determine alternatives for bettering the underside line.
- Claire does an in depth evaluation of the issues.
- Subsequent, Claire takes the issues to her consultancy’s community of subject material consultants (referred to as help networks) to find out greatest practices for fixing the issue.
- Lastly, Claire pitches the optimum answer to her consumer, sometimes through a slide deck presentation.
Claire’s strategy reveals {that a} marketing consultant’s core abilities embrace analytical and problem-solving talents, analysis and knowledge gathering, communication and presentation abilities, and interpersonal abilities to narrate with shoppers.
Let’s go over some real-life consulting venture examples so that you perceive what consultants do to earn their paycheck.
What do consultants actually do? (Actual-Life Examples)
Three widespread varieties of initiatives in administration consulting are tech implementations, operations enchancment, and technique consulting.
1. Technique Consulting
“Technique initiatives are normally about development — how can we get our shoppers to develop their providers, how can we get extra individuals utilizing their providers, and the way can we get into extra markets,” says Hisham Zhkan, a administration marketing consultant who focuses on healthcare consulting.
“Often, the consumer will come to you with a extremely broad query or an issue, then you definitely’ll should construct a method that is sensible,” he provides.
Instance
A big healthcare system and a big medical middle are each operated in the identical metropolis. These organizations acknowledge that their mixed presence within the metropolis ought to trigger improved healthcare supply for the town’s individuals, and so they needed to comprehend that potential.
They approached Hisham’s consulting agency to see how they might work higher collectively to serve the sufferers in that metropolis. The consulting agency staff analyzed the town’s sufferers, what they wanted, and the providers every of the hospitals supplied.
“Then we used that to construct out suggestions for a way the hospitals may mix their providers and in addition spend money on extra providers that may be higher match for the inhabitants of that metropolis,” says Hisham.
2. Operations Enchancment
This includes uncovering insights and making suggestions to enhance operational effectivity and improve profitability.
Instance
One hospital Hisham labored with was shedding cash as a result of insurance coverage firms had been denying them funds for the healthcare providers rendered to sufferers. Upon investigation, Hisham’s staff found the hospital’s billing system was disorganized.
Entrance-desk admin officers registered sufferers with the improper insurance coverage particulars. And other people on the billing facet submitted inaccurate claims to billpayers.
“We outlined precisely what was improper for the consumer and informed them how they might stop the problems from occurring. That meant we needed to create a bunch of how-to guides and coaching manuals to assist the consumer practice their workers to be extra environment friendly,” says Hisham.
3. Expertise Consulting and Implementations
This includes growing and implementing new know-how techniques to fulfill a consumer’s particular wants.
Instance
An enormous hospital system was inefficient at billing out providers to insurance coverage firms. “We spent months attempting to determine what the consumer wanted… then labored with the IT staff to customise the software program to the consumer’s wants,” says Hisham.
“After set up, we created coaching plans for employees members to make sure the group transitioned easily into the brand new system,” Hisham provides.
Whereas these examples are all from the identical business, most consultants work throughout numerous industries, particularly these working within the MBB, Large 4, or Tier 2 companies. Meaning you’d be taught transferable enterprise abilities in a brief interval and achieve profession expertise you need to use to land higher-paying jobs elsewhere.
Backside line: Consulting is a good skilled stepping stone, particularly when you’re contemporary out of faculty or not sure what profession to pursue.
Prime Administration Consulting Corporations to Work For
Consulting companies are categorized into 4 tiers primarily based on the venture dimension they deal with (not primarily based on the scale of the businesses). These tiers are as follows.
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1. The Large 3
McKinsey, Bain, and Boston Consulting Group (or so-called MBB) are essentially the most elite consulting companies on the earth. They deal with the largest initiatives and cost hundreds of thousands of {dollars} per venture. In addition they pay the best compensation to consultants. This makes them the dream office for amateur consultants.
2. The Tier 2
This consists of Accenture, Kearney, Oliver Wyman, and L.E.Okay. Consulting. Tier 2 companies are the second greatest group by venture dimension, with every venture costing as much as $1 million. In addition they pay wonderful compensation and are an incredible place to construct a consulting profession.
3. The Large 4
The Large 4 embrace Deloitte, KPMG, PwC, and E&Y. By way of firm dimension, this group consists of the largest consultancies — greater than even the Large 3 companies. Nevertheless, they sometimes deal with smaller initiatives.
4. Boutique Corporations
The Large 3, Large 4, and Tier 2 companies are normal technique companies, which means they don’t focus on any particular business. Nevertheless, boutique companies are smaller consultancies focusing on serving shoppers in a particular business.
From healthcare to tech, finance, training, and retail, there’s a boutique consulting agency for any business you’ll be able to consider.
Entry Factors Into the Consulting Profession Path
Breaking into consulting is difficult. However there’s an entry path for each contemporary graduates beginning their profession in consulting or seasoned professionals seeking to make a transition. Under are the three primary pathways into the world of consulting.
1. Undergraduate Recruiting
Prime-tier consultancies sometimes recruit contemporary grads as entry-level consultants. Your first alternative to get in is through a junior summer time internship. This may be transformed right into a full-time place after commencement. If you happen to missed the internship window, you’ll be able to nonetheless apply for a full-time function.
A generally requested query by undergraduates is about essentially the most related diploma packages for changing into consultants.
Victor Cheng, a former case interviewer at McKinsey, says, “Most administration consultants start their skilled lives by acquiring a bachelor’s diploma in a business-related or consulting-related self-discipline.”
Nevertheless, high consultancies (together with MBB companies) rent candidates with out enterprise backgrounds. What issues is having a profile that meets the general necessities.
2. MBA or Superior Diploma Recruiting
An MBA makes it simpler to get into consulting, but it surely’s additionally not a prerequisite.
Elite companies actively recruit MBA graduates from high enterprise colleges. So incomes an MBA (particularly from goal colleges like Harvard, Stanford, Wharton, and Yale) considerably will increase your possibilities of touchdown a job.
Moreover MBAs, companies rent candidates with superior levels similar to a Ph.D, M.D., and J.D.
3. Skilled Rent Recruiting
Consulting companies steadily rent professionals with area of interest experience or huge expertise. Nevertheless, that is essentially the most tough strategy to get in. If you happen to search this entry path, you have got two choices.
The primary is to focus on smaller consulting companies that’d immensely worth your abilities. These companies want high expertise however wrestle to seek out and hold them as a result of the perfect candidates goal for extra prestigious jobs.
Second, when you select to use to a distinguished consulting firm, making use of through the agency’s on-line portal isn’t the simplest technique. As a substitute, get a referral by networking with different consultants at your goal agency. You may ship in your formal software when you’ve gotten a referral.
The Conventional Consulting Profession Path (Titles, Development, & Salaries)
Consulting provides a sooner profession development trajectory than most industries.
Most consultancies maintain an “up or out” worker promotion coverage, which means you’re both promoted “up” to the subsequent degree, otherwise you’re phased “out.” These promotions sometimes occur each 2-3 years. If you happen to’re a high performer, there’ll at all times be alternatives to advance up the agency’s profession ladder.
Now, the precise title for every place differs from agency to agency. However, beneath, we describe what the everyday profession development seems to be like.
1. Enterprise Analyst
Analysts deal with many of the heavy lifting on initiatives. Venture leaders assign them a number of work streams. Their work includes researching, interviewing consultants, gathering and analyzing knowledge on spreadsheets, and constructing PowerPoint shows.
That is the entry-level for contemporary graduates. The common wage for analysts at top-tier companies is $83,500.
2. Affiliate/Advisor
Associates have comparable job capabilities to analysts however handle bigger workstreams and have extra autonomy. Since they’re extra skilled, they’re typically accountable for guiding and directing much less skilled analysts.
MBA hires be part of companies on the affiliate degree. The common wage for MBA hires and skilled consultants at top-tier companies is $149,000.
3. Supervisor/Venture Chief
The supervisor’s key job is to supervise initiatives. Though they’re well-informed on the related knowledge factors, they spend no time analyzing knowledge. As a substitute, they outline a consumer’s issues and lead a staff of analysts and consultants who determine the perfect options.
“They normally have a remaining say about what to current to the consumer and what options are going to be supplied,” says Hisham.
Managers/venture leaders at top-tier companies earn a median of $175,000, excluding efficiency bonuses and profit-sharing alternatives.
4. Principal/Director
Administrators strengthen and develop new consumer relationships. They might evaluate evaluation and supply enter on high-level initiatives. In addition they present nurturing and motivation to much less skilled staff members. Administrators and principals earn upwards of $250,000.
5. Accomplice/Shareholder
Companions are people who’ve invested in a agency for a few years. They make sure the long-term well being of the corporate. Their key roles embrace figuring out new enterprise alternatives, successful initiatives, managing consumer relationships, and offering management.
Base salaries for companions or shareholders vary from $570,000–$1,000,000, excluding bonuses.
Ideas for Getting Began in Consulting
There’s stiff competitors for roles on the high consulting companies. Tens of hundreds of candidates apply to the MBB companies yearly, however lower than 5% of candidates get in. The next ideas will assist improve your possibilities of touchdown a job.
1. Preserve a excessive GPA.
Prime consultancies anticipate educational excellence from their candidates. Having a excessive GPA turns into extra necessary when you’re learning at a non-target college. A low GPA doesn’t kill your possibilities, however having a excessive GPA actually boosts it.
2. Collect related experiences and internships.
Ex-PwC marketing consultant, Mahdi Kafi, is an instance of somebody who bought right into a prestigious consulting agency regardless of having tough grades and no expertise. Actually, he had no internships on his resume.
What Mahdi had was a listing of related abilities like customer support, autonomy, consumer administration, analytical and presentation abilities, and the power to work in groups.
He developed these abilities by intentionally doing jobs that required them. The consequence? He bought interviews with the Large 4 and different world companies.
3. Write a stand-out resume and canopy letter.
Many candidates get screened out due to poor resumes. When creating your resume, guarantee it impresses recruiters by exhibiting your talent and related consulting work experiences.
If you happen to’ve labored at a high agency or attended an elite college, make it conspicuous in your resume — names are an enormous deal in consulting. Proudly show a excessive GPA and any standardized take a look at scores.
Lastly, attempt to match all of it on one web page. You should definitely share who you’re and why you’d be an excellent match for the agency in your cowl letter.
4. Begin networking.
You’re extra more likely to land an interview if a agency member refers you. So faucet into your skilled and college alumni networks and join with consultants in your goal agency.
Don’t have any such connections? Begin constructing them through LinkedIn or ship chilly networking emails so you’ll be able to apply early to open roles.
5. Put together to crush your interviews.
Consulting companies conduct two varieties of interviews: behavioral-fit and case interviews. Match interviews gauge whether or not your character matchs the job and the agency’s tradition.
Case interviews simulate your life on the job; they’re used to judge how you consider an issue. Acing each interviews is essential to touchdown the job.
What occurs after you permit consulting?
Solely a handful of consultants keep within the business lengthy sufficient to make it to associate. Most go away after two to 4 years. No matter while you go away, life after consulting provides many promising alternatives. Under are 4 of the most typical choices.
1. Begin-ups
Individuals go away consulting to implement and personal their outcomes fairly than simply advise. On this case, beginning a enterprise or becoming a member of a fast-growing startup is a good possibility.
Consultants have enterprise abilities and a community that gives a sound basis for fulfillment as startup founders. For instance, Udemy Co-founder, Gagan Biyani, started his profession working for Accenture. He was additionally a former and early worker at Lyft.
2. Company Administration
Ex-consultants typically turn out to be high-profile company managers at established organizations.
McKinsey alums are particular on this realm. In 2020, 359 McKinsey alums ran $1 billion plus firms the world over. It’s why McKinsey is dubbed the CEO manufacturing facility.
3. Nonprofits and NGOs
NGOs have to successfully deploy their assets like funding and volunteer hours. That is the place consultants’ problem-solving, operational administration, and strategic planning abilities turn out to be useful.
Nonprofits and NGOs are an incredible exit possibility for ex-consultants who wish to go away an influence on the world.
4. Funding Funds
This consists of alternatives in enterprise capital, non-public fairness, and hedge funds. Potential roles may contain deal sourcing — figuring out funding alternatives, due diligence — evaluating funding alternatives, and portfolio administration.
Funding funds could be essentially the most financially rewarding exit possibility since you’ll be able to have fairness within the enterprise. And when you don’t wish to make investments your cash, you’ll be able to be part of as a strategist.
Launch Your Consulting Profession
Consulting is a extremely rewarding however demanding profession. It requires you to be on high of your recreation each time. Just a few individuals can maintain such excessive work depth whereas constructing relationships and having satisfying and significant lives.
The excellent news is that you simply don’t should work in consulting perpetually. As a beginner marketing consultant, you’ll be able to goal to climb the ladder or simply get transferable abilities and exit after a number of years.
You’ll be taught and develop from the expertise, whichever path you select.
