A profession in administration consulting is glamorous. Its perks embody a number of touring, beneficiant compensation packages, interactions with top-level administration, publicity to studying alternatives, and the pleasure of engaged on advanced enterprise issues.
However the consulting profession path additionally has its challenges. Mika Kim, a former guide at one of many Huge 4 consulting companies, stories working a mean of 12 hours per day. Different anecdotal proof suggests burnout induced by lengthy working hours could possibly be a core purpose consultants give up the roles they as soon as labored laborious to get.
The purpose? Consulting isn’t for everybody. On this article, we’ll offer you a complete overview of the consulting profession path. You’ll study what a consulting job entails and have the ability to resolve if a profession in consulting is best for you.
Desk of Contents
What’s consulting?
Consulting is the follow of enhancing a corporation’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 yr, in response to CaseInterview, a good administration consulting weblog. That’s a giant deal for recent graduates simply beginning within the subject.
This usually makes consulting fans surprise, “What are the distinctive insights/expertise that justify the excessive compensation of consultants?”
First, right here’s an vital clarification: Consultants aren’t precisely liable for fixing consumer issues. They’re the bridge between shoppers and material consultants with the technical experience to unravel their shoppers’ issues.
Seems like a easy job, nevertheless it’s laborious. Right here’s what a typical mission journey seems to be like:
- A guide (let’s name her Claire) interviews her consumer (often a top-level supervisor) to determine issues impeding the group’s progress. Claire’s objective? Determine alternatives for enhancing the underside line.
- Claire does an in depth evaluation of the issues.
- Subsequent, Claire takes the issues to her consultancy’s community of material consultants (known as assist networks) to find out finest practices for fixing the issue.
- Lastly, Claire pitches the optimum answer to her consumer, sometimes by way of a slide deck presentation.
Claire’s strategy exhibits {that a} guide’s core expertise embody analytical and problem-solving talents, analysis and knowledge gathering, communication and presentation expertise, and interpersonal expertise to narrate with shoppers.
Let’s go over some real-life consulting mission examples so that you perceive what consultants do to earn their paycheck.
What do consultants actually do? (Actual-Life Examples)
Three frequent sorts of initiatives in administration consulting are tech implementations, operations enchancment, and technique consulting.
1. Technique Consulting
“Technique initiatives are often about progress — how can we get our shoppers to broaden their companies, how can we get extra individuals utilizing their companies, and the way can we get into extra markets,” says Hisham Zhkan, a administration guide who makes a speciality of healthcare consulting.
“Often, the consumer will come to you with a extremely broad query or an issue, then you definately’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 wished to comprehend that potential.
They approached Hisham’s consulting agency to see how they may work higher collectively to serve the sufferers in that metropolis. The consulting agency crew analyzed the town’s sufferers, what they wanted, and the companies every of the hospitals provided.
“Then we used that to construct out suggestions for a way the hospitals might mix their companies and in addition spend money on extra companies that might 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 corporations have been denying them funds for the healthcare companies rendered to sufferers. Upon investigation, Hisham’s crew found the hospital’s billing system was disorganized.
Entrance-desk admin officers registered sufferers with the mistaken insurance coverage particulars. And folks on the billing aspect submitted inaccurate claims to billpayers.
“We outlined precisely what was mistaken for the consumer and informed them how they may stop the problems from taking place. 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 expertise methods to satisfy a consumer’s particular wants.
Instance
An enormous hospital system was inefficient at billing out companies to insurance coverage corporations. “We spent months attempting to determine what the consumer wanted… then labored with the IT crew 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, Huge 4, or Tier 2 companies. Which means you’d study transferable enterprise expertise 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 in the event you’re recent out of faculty or not sure what profession to pursue.
High Administration Consulting Corporations to Work For
Consulting companies are categorized into 4 tiers based mostly on the mission dimension they deal with (not based mostly on the dimensions of the businesses). These tiers are as follows.
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1. The Huge 3
McKinsey, Bain, and Boston Consulting Group (or so-called MBB) are essentially the most elite consulting companies on the planet. They deal with the largest initiatives and cost hundreds of thousands of {dollars} per mission. Additionally they pay the best compensation to consultants. This makes them the dream office for beginner consultants.
2. The Tier 2
This contains Accenture, Kearney, Oliver Wyman, and L.E.Okay. Consulting. Tier 2 companies are the second largest group by mission dimension, with every mission costing as much as $1 million. Additionally they pay wonderful compensation and are an awesome place to construct a consulting profession.
3. The Huge 4
The Huge 4 embody Deloitte, KPMG, PwC, and E&Y. When it comes to firm dimension, this group consists of the largest consultancies — greater than even the Huge 3 companies. Nevertheless, they sometimes deal with smaller initiatives.
4. Boutique Corporations
The Huge 3, Huge 4, and Tier 2 companies are common technique companies, which means they don’t specialise in any particular business. Nevertheless, boutique companies are smaller consultancies focusing on serving shoppers in a particular business.
From healthcare to tech, finance, schooling, 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 recent graduates beginning their profession in consulting or seasoned professionals seeking to make a transition. Under are the three fundamental pathways into the world of consulting.
1. Undergraduate Recruiting
High-tier consultancies sometimes recruit recent grads as entry-level consultants. Your first alternative to get in is by way of a junior summer time internship. This may be transformed right into a full-time place after commencement. In the event you missed the internship window, you’ll be able to nonetheless apply for a full-time position.
A generally requested query by undergraduates is about essentially the most related diploma applications 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, nevertheless it’s additionally not a prerequisite.
Elite companies actively recruit MBA graduates from high enterprise faculties. So incomes an MBA (particularly from goal faculties like Harvard, Stanford, Wharton, and Yale) considerably will increase your possibilities of touchdown a job.
Apart from MBAs, companies rent candidates with superior levels similar to a Ph.D, M.D., and J.D.
3. Skilled Rent Recruiting
Consulting companies often rent professionals with area of interest experience or huge expertise. Nevertheless, that is essentially the most troublesome solution to get in. In the event you search this entry path, you’ve got two choices.
The primary is to focus on smaller consulting companies that’d immensely worth your expertise. These companies want high expertise however battle to search out and maintain them as a result of the perfect candidates purpose for extra prestigious jobs.
Second, in the event you select to use to a outstanding consulting firm, making use of by way of the agency’s on-line portal isn’t the simplest technique. As an alternative, get a referral by networking with different consultants at your goal agency. You possibly can ship in your formal software when you’ve gotten a referral.
The Conventional Consulting Profession Path (Titles, Development, & Salaries)
Consulting provides a quicker profession progress trajectory than most industries.
Most consultancies maintain an “up or out” worker promotion coverage, which means you’re both promoted “up” to the following degree, otherwise you’re phased “out.” These promotions sometimes occur each 2-3 years. In the event you’re a high performer, there’ll all the time be alternatives to advance up the agency’s profession ladder.
Now, the precise title for every place differs from agency to agency. However, under, we describe what the standard profession development seems to be like.
1. Enterprise Analyst
Analysts deal with a lot 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 recent graduates. The common wage for analysts at top-tier companies is $83,500.
2. Affiliate/Advisor
Associates have comparable job features to analysts however handle bigger workstreams and have extra autonomy. Since they’re extra skilled, they’re usually liable 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 an alternative, they outline a consumer’s issues and lead a crew of analysts and consultants who determine the perfect options.
“They often have a last say about what to current to the consumer and what options are going to be provided,” says Hisham.
Managers/mission leaders at top-tier companies earn a mean of $175,000, excluding efficiency bonuses and profit-sharing alternatives.
4. Principal/Director
Administrators strengthen and develop new consumer relationships. They might overview evaluation and supply enter on high-level initiatives. Additionally they present nurturing and motivation to much less skilled crew 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 embody 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.
Suggestions for Getting Began in Consulting
There’s stiff competitors for roles on the high consulting companies. Tens of 1000’s 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.
High consultancies count on tutorial excellence from their candidates. Having a excessive GPA turns into extra vital in the event you’re finding out at a non-target faculty. A low GPA doesn’t kill your probabilities, however having a excessive GPA actually boosts it.
2. Collect related experiences and internships.
Ex-PwC guide, Mahdi Kafi, is an instance of somebody who obtained right into a prestigious consulting agency regardless of having tough grades and no expertise. In actual fact, he had no internships on his resume.
What Mahdi had was a listing of related expertise like customer support, autonomy, consumer administration, analytical and presentation expertise, and the power to work in groups.
He developed these expertise by intentionally doing jobs that required them. The end result? He obtained interviews with the Huge 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 displaying your ability and related consulting work experiences.
In the event you’ve labored at a high agency or attended an elite faculty, make it conspicuous in your resume — names are a giant 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 a great match for the agency in your cowl letter.
4. Begin networking.
You’re extra prone 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 by way of 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 sorts 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 concentrate on 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 companion. Most depart after two to 4 years. No matter whenever you depart, life after consulting provides many promising alternatives. Under are 4 of the commonest choices.
1. Begin-ups
Folks depart consulting to implement and personal their outcomes slightly 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 expertise and a community that gives a sound basis for achievement 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 usually grow 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 corporations the world over. It’s why McKinsey is dubbed the CEO manufacturing facility.
3. Nonprofits and NGOs
NGOs have to successfully deploy their sources like funding and volunteer hours. That is the place consultants’ problem-solving, operational administration, and strategic planning expertise grow to be helpful.
Nonprofits and NGOs are an awesome exit possibility for ex-consultants who need to depart an influence on the world.
4. Funding Funds
This contains 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 in the event you don’t need 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 sport 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 just don’t should work in consulting eternally. As a beginner guide, you’ll be able to purpose to climb the ladder or simply get transferable expertise and exit after a number of years.
You’ll study and develop from the expertise, whichever path you select.
