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Management Consulting
Overview What is management consultancy? The Management Consultancies Association (MCA) defines management consulting as: The creation of value for organisations through improved performance, achieved by providing objective advice and implementing business solutions. In essence then, management consultants are hired advisers. They focus on assisting their clients by analysing problems and identifying possible solutions. Although the precise nature of the work differs from firm to firm, consultants tend to work on issues that will have a major impact on their clients businesses. Examples include clarifying an organisations strategic direction, streamlining manufacturing processes to save money, identifying ways to reduce staff turnover, integrating staff and work processes after an acquisition, researching new markets and identifying where to set up manufacturing facilities abroad. Employers in this industry The consulting industry spans a wide array of firms, each with their own focus, culture and approach. Some of these firms only undertake management consulting work. Others are part of larger firms that also undertake audit activities, IT systems development, outsourcing and, increasingly, other activities. The table below differentiates between five categories of employer. Although distinct, these categories overlap: firms in one category can, and do, compete with firms in another; in addition, consolidation and growth as a result of changes in the marketplace can and do change the landscape.

Types of consulting firms

Elite Management Consulting Firms These firms primarily provide strategic or operational advice to top executives in FTSE 100 / Fortune 500 companies. Although some elite firms specialise in particular industries or functions, most consultants who work for these firms are generalists who work on a variety of projects in a number of industries. Example firms: Accenture, A. T. Kearney, Bain & Co, Booz Allen Hamilton, Boston Consulting Group (BCG) , Marakon Associates, Mercer, McKinsey & Co, Monitor Group Big Four-Affiliated Consulting The big four professional services firms have significant consultancy operations, operating across a range of specialisms. Firms: Deloitte, Ernst & Young, KPMG, PriceWaterhouseCoppers (PwC) Boutique Strategy Firms Boutique strategy firms specialise in a particular industry, process or type of consulting (such as litigation support, high-tech operations or the pharmaceutical industry). In general these firms are smaller than the big-name strategy firms and they work with a more narrowly focused group of clients. Example firms: Parthenon (Private equity, Health care, Cornerstone Research (litigation support), Gartner (high-tech research), Pittiglio Rabin, Todd & McGrath (high-tech operations), Putnam Associates (pharmaceuticals, biotechnology and medical devices) Technology and Systems Consulting Firms These firms typically take on large projects to design, implement and manage their clients information and computer systems. The nature of this work means that consultants often spend much of their time working on-site at their clients offices. In general project assignments involve large teams of people who actually do the computer work. As a result there are usually more opportunities for people from undergraduate or technical backgrounds rather than from MBA backgrounds. These firms have also moved aggressively to take on business process outsourcing, to manage elements of a clients business (such as a call centre). Example firms: Accenture, BearingPoint, Capgemini, Computer Sciences Corp (CSC), Electronic Data Systems (EDS), HP Technology Solutions Group, Novell, Oracle, SAP, Synopsis, Unisys Human Resources Consulting Human Resources consulting can include everything from designing an employee evaluation & compensation system to conducting organisational effectiveness training to helping a firm through a significant change event (such as a merger). These firms hire undergraduates and those with MBAs. They also have an interest in those from other Masters programmes, especially those with training in HR management and organisational design & effectiveness. Example firms: Accenture, BearingPoint, Capgemini, Computer Sciences Corp (CSC), Electronic Data Systems (EDS), HP Technology Solutions Group, Novell, Oracle, SAP, Synopsis, Unisys.

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Updated June 2012 LSE Careers www.lse.ac.uk/careers

Typical job titles and career paths Many consultancy firms run graduate programmes for those new to the industry. These can last between six months and two years. During this time, graduates are called analysts or business analysts and work on variety of projects. After that time, its quite common for analysts to leave the organisation and work elsewhere to add to their portfolio and then possibly come back to the firm as an associate consultant. From that point, its possible to progress within the firm to consultant level, but most executive consultants have completed an MBA. The career path for those embarking on a career in consultancy can be very varied: some stay as career consultants, some start their own businesses, others work as senior managers within FTSE100 organisations. Continuous development of specialisms and expertise is a key element of career success in consultancy, with many of the top consulting firms operating up or out performance management also known as grow or go. Is Management Consultancy the right career for you?

Consultancy is a well paid career. Remuneration packages can vary enormously according to the size of the firm. Large firms can pay junior consultants a basic salary of 33-37,000. More experienced consultants earn up to 50,000 within a few years and senior consultants earn a great deal more through profit share and performance bonus schemes. The work is varied, as consultants work on an array of different projects Theres plenty of scope for personal development, leading a well developed skillset and enhancing longer term career prospects. Most consultancies offer good training opportunities, along with the skills acquired on the job. As client work becomes more international, firms are beginning to operate and organise on a European and even global basis, creating opportunities for travel and work abroad. Consultants are often expected to work long hours intensive work on large bids can often mean working all night. Consultants spend a considerable time away from home. Most of the larger employers have their head offices in London with a few regional establishments, but as work for clients is primarily on site anyway, location is rapidly becoming less important. The industry is characterised by working to tough targets many consultants are expected to be utilised i.e. working with clients for the vast majority of their time targets are set and need to be met to ensure fees are paid.

Market trends Research focusing on Europe, the Middle East, India and Africa by Sourceforconsulting.com published in June 2011, found that the market for consulting hit almost 25bn Euros in 2010. Germany is predicted to be the fastest growing market during the next 12 months, with demand for consulting remaining buoyant . A sourceforconsulting.com report noted a dramatic decrease in UK public sector consulting during the past year, however the other four main spenders on public sector consulting in Europe Germany, France, Benelux and Scandinavia are anecdotally reporting that this market has remained stable, or in Frances case, grown. Financial Services consultancy remains a key sector of the market. According to the Financial Times, (20/04/2011) the biggest growth in the UK during the past year has focused on supporting clients with cost reduction and integration, The new Basel III and Insolvancy II regulatory regimes have put a premium on consultants experienced with risk and regulatory compliance. Work experience To get a graduate position in consultancy, although not essential, it certainly helps if you have already completed an internship. Many consultancy firms run programmes in the summer holiday and the deadlines for these usually fall in February and March. Dont leave it to the last minute to apply. Recruiters tend to look at applications as they receive them rather than looking at all of them once the deadline has passed. For internships, application is usually by CV and covering letter. The recruitment process and job hunting The typical selection process for the larger consultancy firms includes an online application form and possibly an online test. If successful at this stage you will be invited to up to three further rounds of interviewing. Part of the interviewing process may include working on a case study in a group or alone and then talking about that case study to one of the interviewers. Dont neglect the smaller or niche consultancies; they may provide good opportunities for both work experience and graduate positions. In fact, in smaller organisa-

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Useful Websites:

www.top-consultant.com www.blueboomerang.com www.mca.org.uk www.the-imc.co.uk www.insidecareers.co.uk www.managementconsultancy.co.uk www.lse.ac.uk/careers > Employment sectors > Management Consultancy

This information is available in alternative formats. Please ask at the Enquiry Desk.
Updated June 2012 LSE Careers www.lse.ac.uk/careers