Documente Academic
Documente Profesional
Documente Cultură
2013 EDITION
d e r i nfo on:
Ins i s Sponsored by:
s and out
• The in
lting
of Consu d career
e jo b a n
th
• Life on
paths
te r v iew tips and
• Case in
advice
AN INSIDE LOOK AT
2013 EDITION
fo o n:
Insider in Sponsored by:
T h e in s and outs
•
lting
of Consu
ife o n t h e job and
• L
ths
career pa d
in te r v iew tips an
• Cas e
advice
2
CONTENTS
CONTENTS
Introduction............................................................................................................................. 06
About Inside Buzz.................................................................................................................... 07
For information about permission to reproduce sections from this book, contact:
Inside Buzz Ltd, Glossary
14 Bateman Street, London, W1D 3AG A Guide to Consulting Buzzwords............................................................................................. 64
+44 (0)20 7434 3600
Info@insidebuzz.co.uk Acknowledgements................................................................................................................... 69
www.insidebuzz.co.uk
Printed in the UK
4 5
INTRODUCTION ABOUT INSIDE BUZZ
The Inside Buzz editorial team Inside Buzz also publishes print and digital career guides. These guides are updated every year before
being distributed for free to eager university students across the UK.
Based in Soho, Central London’s vibrant media district, Inside Buzz has been a privately owned and
independently run company since it was founded in January 2010.
6 7
Part 1:
WHAT IS CONSULTING?
consulting explained
www.insidebuzz.co.uk What is consulting?
• 1,000s of authentic 100s of in-depth company
If you were to stop Joe Bloggs in the street and ask him
profiles and salary info on:
employee reviews what a consultant is, you’re unlikely to receive a clear,
accurate and comprehensive answer. In fact, relatively
Accenture, Apple, Bain & Co, Banco few people outside the consulting industry could
• Company specific Santander, BBC, BCG, BNP Paribas,
convey what a consultant is, let alone what they do.
interview advice Booz & Co, Citi, Clifford Chance, “Anyone who’s ever given their two
cents worth on any issue has, in fact,
• Free 2013 career Credit Suisse, Deloitte, Ernst & Young,
acted as a consultant.”
guides for Freshfields, FSA, Goldman Sachs, Management consultants provide advice for a fee.
In layman’s terms: consultants are problem solvers
Google, HSBC, John Lewis Partnership, Most of the uncertainty can be attributed to the for hire. Companies are often too busy (or unable) to
investment banking, J.P. Morgan, L’Oreal, KPMG, McKinsey
ambiguity of the term consultant. To take this issue to
dizzyingly pedantic heights, anyone who’s ever been
solve their business problems on their own. In these
cases they may seek the expertise and impartiality of
8 9
TYPES OF CONSULTING FIRMS
executive whose team is too focussed on day-to-day If consulting sounds like the career for you, then great!
running of the business to consider any long-term
strategic problems that the company may be facing.
In these cases, consultants can offer a solution from
But don’t start filling out your online applications just
yet. Like most things, consulting is easier said than
done. Identifying the problem is often the easy part
TYPES OF CONSULTING FIRMS
a perspective free from bias and unclouded by the – the companies themselves will most likely know
company’s internal politics. where their shortfalls lie. The tricky bit is finding
solutions to these problems as well as a cost effective
Consultancies vary in focus: they can be structured by way of implementing them, practically and with as
topic, type of problem or industry, with specialisations little disruption to the client as possible. The term ‘consulting’ is an umbrella that spans a
ranging from the relatively broad to the extremely wide array of different operations and activities. IS STRATEGY CONSULTING FOR YOU?
niche. Some consulting firms specialise in giving advice Still interested? Well you’re not alone. Management As such, firms operating under this umbrella can
on management and strategy, while others, such as consulting is one of the most popular career choices be broadly categorised into one of a handful of Pros:
Accenture, are known as technology specialists. Some for graduates and this is hardly surprising considering firm-types. Each classification has its own distinct • Relatively small project teams allow
firms concentrate on a specific industry area, such as the industry’s reputation for high salaries, jet-setting characteristics and offers differing work and you to make your mark and provide the
financial services or retail, while others, such as BCG, and five-star hotels. career prospects. Some firms are a little harder to opportunity to shine early in your career.
are more like gigantic one-stop shops with divisions classify than others, but broadly speaking, every • Excellent opportunities for international
that dispense advice on everything from top-level However the reality of consulting is actually somewhat consultancy will fall into one of the following travel.
strategy to saving money on staples and paper clips. different and, for those who subscribe to the categories: • Broad exposure to different sectors,
aforementioned ‘Hollywood’ version of consulting, industries and functions.
the truth of the matter, that the life of a consultant Strategy Consulting • Early contact with partners and
“Identifying problems is often the is a little less glamorous, may come as a bit of a Working with a client’s senior management, directors.
easy part. The tricky bit is finding the disappointment. strategy consultants help create and develop a
company’s strategy and long-term plans. More Cons:
solutions, and a cost effective way of But don’t be discouraged! Consulting still offers than just pointing fingers and identifying strategic • Many firms operate a stringent up-or-
numerous benefits to graduates such as interesting, problems, strategy consulting firms aim to provide out policy.
implementing them.” varied and challenging work, the opportunity to work practical and cost effective solutions that can • Heavy workload – even for consulting!
with highly creative and intelligent people and some generate bottom-line results and improve a client’s • International travel is an intrinsic part
Many strategy consulting firms are considered of the highest salaries around. competitiveness. In addition, once a problem is of the job. While novel at first, this can
generalist as they offer services in a range of different identified, strategy consultancies don’t just take the quickly become an onerous chore that
disciplines, such as human resources, information And remember, for those who put in the work, money and run, they assist in the implementation takes you away from your loved ones.
technology (IT) and outsourcing. They offer advice champagne, exciting assignments and five-star hotels of their suggestions.
to companies on specific projects, using experts in are always a possibility further down the line.
the field to deliver benefits. In the UK, these include Depending on the industry and the client’s the inner workings of its clients, operation
companies such as BCG, McKinsey and Bain & shortcomings, strategy consultants can find consultancies will fine tune operations to enhance
Company. There are also smaller boutique or niche themselves working on a range of different the overall efficiency of a company.
firms that specialise in one or a few very particular projects. These could be anything from analysing
areas of consulting. why an online retailer is losing market share Beginning by examining the workflow structure
to helping a fizzy drinks manufacturer rebrand of a business, operation consultants will then go
However, putting size and type of firm aside, all and price its products for a new market. Leading on to look at areas such as production processes,
consultancies have one thing in common: they run on strategy consultancies, such as Boston Consulting distribution, order fulfilment and customer service.
the power of their people and are always looking for Group, McKinsey & Company, Bain & Company At a more granular level, the investigation could
analytical problem solvers to add to their ranks. and Roland Berger may evaluate a company’s value cover anything from a client’s resource allocation
for potential acquirers or assist a brand in staying to its customer service response times.
abreast of changes in consumer spending.
Due to the intrinsic link between strategy and
Operations Consulting operations consulting, the majority of the major
If a strategy consultant’s remit is to set a firm’s long- firms now offer their clients both services. Firms
term goals, an operations consultant is charged sitting at the top of the operations tree include
with making sure those targets are met. Evaluating Accenture, Capgemini and Deloitte.
10 11
TYPES OF CONSULTING FIRMS
which is increasingly in demand due to the advent a boutique consulting firm has to do with the L.E.K. Consulting, revered amongst its peers for
of subversive hacker groups over the last few size of the firm. In actual fact, whether or not a its M&A practice, and OC&C, a leader in European
Is Operations Consulting for you? years. Common tasks an IT consultancy may be firm is a boutique consultancy is determined by private equity, are two of the biggest players from
asked to perform also include troubleshooting a if it has a specific area (or areas) of focus or not. this esoteric bunch.
Pros: company’s software installation or even overseeing For instance, regardless of its size, a consultancy
• New-hires are eased in gently as part of a company’s upgrade to the latest version of would be considered to be boutique if it focused The work undertaken by boutique firms might
a large team. Microsoft Office. The industry’s most prominent on mergers and acquisitions and business strategy. include establishing value metrics for a retailer,
• Lots of potential to build up contacts players include Accenture, Capgemini, Computer A firm’s designation as boutique isn’t a reflection structuring the privatisation of utilities, assisting
in Blue-Chip companies which is useful Sciences Corporation (CSC) and Electronic Data of its size or prestige. However, it should be noted in establishing a new supplier or restructuring an
should you decide to change career in Systems (EDS). that a lot of boutiques are at the lower end of organisation to avoid insolvency.
the future. the personnel scale; firms range from around 200
• No need to be tied to one specialty for Human Resources Consulting employees right down to a single consultant. Internal Consulting teams
your whole career. ‘A company is only as good as its people.’ It’s the Hiring a consulting firm doesn’t come cheap.
• Less international travel – can spend belief in this adage that has led to the emergence Recognising that a consultant’s billing rates far
more time with family and friends. of human resources consulting. By investing in its exceed internal salaries, some organisations have
people, an organisation aims to maximise the value Is Boutique Consulting for you? set up what are essentially subsidiary offshoots to
Cons: of its employees and place the right people with supply a third party perspective. Although providing
• Bureaucracy, rules and regulations can the right skills in the right roles. Human resource Pros: the same outsider view as an external consultant
get in the way of productive work. consultants can help its clients to do just this. • Opportunity to specialise in a particular would, the consultant is paid on a comparatively
• The route to promotion is nailed down sector or function from the start. lower corporate pay scale.
and doesn’t change even for the best Also known as organisational development or • Relatively small project teams allow for
employees. change management, human resource consulting greater responsibility early on. Reporting to a central consulting division, internal
• Larger teams means that you’re less is concerned with many parts of a company’s • Small firm collegiality and camaraderie. consultants assist on areas such as corporate
likely to be working with executives day to day running, such as their human capital strategy, business development and project
and directors, liaising with middle- issues – including remuneration, recruitment and Cons: management. An internal consultant will perform
management is more usual. management – or their health and benefits systems. • Specialist experience gained at a similar tasks to an external consultant, with the
Human resources consultants may also be called in boutique may limit opportunities with difference being that they’re permanently working
to give advice on a merger or a large acquisition, strategy or full-service firms. for the same client.
Information Technology Consulting e.g. examining how two companies could work • Depending on the industry, you may
Information technology consulting has more together, whether there’ll be a clash of cultures be required to spend a significant This has the benefit of reducing travelling and face
than its fair share of alternative names. It can be and so on. Other issues such as communication time abroad to win enough client time pressures, however it also has its drawbacks
known as IT advisory, computer consulting, tech with employees, retirement and outsourcing also assignments. as internal consultants are not usually as well paid
consulting, business technology services, or the fall under the remit of HR consultants. • Wages may be linked to the firm’s as their external counterparts, nor will they get
much simpler IT consulting. But no matter the success, so downturns in the boutique’s the exposure to different industries and decision
designation, IT consultants advise their clients how Human resource consultancies also offer the industry may leave you out of pocket. makers that those at a typical consulting firm will
best to leverage information technology to the services of their actuaries. An actuary is a number get.
advantage of their company. cruncher who applies their skills in maths and
statistics to create theoretical models to increase Aside from the obvious advantage of their area or For new graduates, though, these positions
So it’s computers basically? Well, not quite… an organisation’s efficiency. In addition to industry-specific expertise, boutique firms are an are also few and far between. Instead, internal
In addition to providing advice to clients on how economical and mathematical awareness, actuarial attractive choice for prospective clients because of consultancies tend to either hire high achievers
best to use IT at their firm, IT consultancies design consultants have to pass a number of certification their rates. Since they are generally, relatively small, from within their own ranks or bring in more
customer software, provide network solutions and exams every so often to remain eligible to ply boutique firms have lower overheads and can experienced professionals from other firms. Many
test current systems for efficiency. In summary, IT their trade. Some of HR’s most eminent consulting afford to charge less than their larger competitors. firms both in the UK and US have taken their
consultancies offer the full package; they advise, firms include Towers Perrin and Mercer Human consulting in-house, including: American Express,
estimate, design, manage, implement, deploy and Resources Consulting. Another common feature of boutiques is that they Disney, Shell and the Vodafone Group.
administer IT systems on a client’s behalf. will often have an identifiable figurehead steering
Boutique Consulting Firms the ship whose personality will percolate through
IT consultants may be called in to test an There are a number of fallacies floating around its operations and colour the firm’s character.
organisation’s vulnerability to hackers; a service about boutique consulting. The first is that being
12 13
CHOOSING THE RIGHT FIRM
Choosing the right firm
14 15
IS CONSULTING RIGHT FOT YOU?
still unsure, or perhaps want to first develop a That’s not to say there aren’t benefits to working
breadth of experience, you may want to plumb for
a consultancy involved in a range of functions and
industries.
at smaller firms. You may be given greater
responsibility at a smaller consultancy, or the
culture may be favourably informal. However,
IS CONSULTING RIGHT FOR YOU?
don’t put your entire stock on a firm’s size, as
these factors aren’t necessarily size dependent.
Each individual firm will have its pros and its cons.
“If you’re unsure whether a particular And what you consider to be a pro may well be
consultancy represents the best fit for another person’s con. In short, every consultancy Consulting isn’t strictly a discipline in the way
is different and picking the right one is a very accounting, marketing or business management
you, attend the employer’s presentation personal decision. are, and as a result you can’t study it at school
or an open day.” or university. But this isn’t because consulting
If you’re still unsure whether a particular is considered a lesser industry or a second class
consultancy represents the best fit for you, attend career option; it is because consulting doesn’t
Thinking ahead, you need to consider the the employer’s presentation or an open day to gain comprise one clearly defined skill-set.
opportunities a consultancy will provide moving an insight into what it’s really like to work there.
forward. Although you may not care too much Listen to what the firm has to say, speak to its Instead, a consultant’s skill-set straddles various
about the firm’s size or reputation at the moment, employees. You should be able to glean a lot about disciplines, and as such their speciality is their
these factors will have a direct effect on your the company culture, work/life balance and day to generalist knowledge. This allows them to shift
career further down the track. Larger firms may day duties, amongst other things. But while these between different sectors and apply their skill-
well provide more substantial training which will presentations can be very useful, it’s vital you carry sets to industries as disparate as high-end fashion
affect your professional development. They’re out your own independent research too – after all, and waste management. Consultants hail from all
also more likely to boast stronger international the decisions you make now will affect your career sorts of backgrounds and while their education Team Work and Leadership Skills
networks, which may yield more secondments or well into the future. and professional experience will vary, there are Consultants don’t work alone; they work in teams
greater global opportunities. In addition to these a number of traits that a large proportion of at every stage of a project, from brainstorming
advantages, larger firms often provide greater job consultants will have in common, regardless of solutions to the implementation of new initiatives,
security. which branch of consulting they find themselves so the ability to work well with others is essential
in. Below we have assembled ten of the most for all would-be consultants.
common qualities found in consultants, how many
do you share? Just forming a team and being able to work
together is not enough, however. A team needs
someone to give it direction and focus; it needs
“Consultants hail from all sorts of a leader. Whilst it is unlikely that a candidate will
be brought in as a leader from the off, recruiters
backgrounds but there are a number of do still look for leadership qualities during the
hiring process. When recruiting, consulting firms
traits that a large proportion of them look for candidates who will be a good long-term
will have in common.” investment; those who show that they have the
potential to lead at some point in the future will be
very attractive to them.
Broad Interests and a Thirst for Knowledge
Even if they work for a specialised boutique firm,
over the course of their career, consultants will Analytical Skills
find themselves working on a range of different Analytical skills are absolutely essential to breaking
subjects, in various industries and different into and making it in consulting – after all, analysis
markets. It is therefore vital that a consultant has is the role’s core competency. Consultants use
a broad range of interests, as well as the desire to their honed analytical skills to dissect data, spot
learn more about areas which might not be their trends and salient points, and derive a conclusion.
niche. Although the work you’ll find yourself doing will
16 17
IS CONSULTING RIGHT FOR YOU?
be more similar to the logical analysis of facts and times a week. Throw a client or two, a team to sleep before having to make your way to a client Total Commitment to the Job
figures in maths and science to the analysis of manage and multiple assignments into the mix, meeting. However, you can’t sleepwalk your way Careers in consulting are known for offering very
prose, metaphor and allusions in English literature, and you’ve got yourself quite the juggling act. through a presentation with sharp, attentive impressive salaries right from the get go and, as
consultants must have a range of analytical skills As a result, it is essential for consultants to be clients… oh no. Regardless of how much they’ve you may expect, consulting firms expect value for
which they can draw on. organised, disciplined and logical in their approach worked or travelled that week, when they’re with their money. There are no easy rides in consulting –
to everything they do. A good sense of prioritisation a client a consultant must be wide-eyed, energetic if you’re not prepared to do the hard work to earn
is incredibly valuable for those who want to make a and positive. If you’re the sort of person who still your salary then there simply isn’t a place for you
“One minute you may be in the office, good impression with their bosses but still maintain wakes up tired after a full night’s sleep then maybe in the industry.
enough time to have a personal life. consulting isn’t really the career for you.
the next you’ll be shipped off to the Pressure to fulfil client expectations will often
other side of the continent.” “There are no easy rides in consulting result in late nights, early mornings and work on
Flexibility and an Interest in Travel the occasional weekend throughout your career,
With so much of the work done on site with a - if you’re not prepared to do the hard especially if you’re hoping to make partner.
Presentation and Communication Skills client, consultants have to be prepared and willing Although not always the case, consultants are likely
Once problems have been picked out and the to go where they are needed. One minute they’ll work to earn your salary then there to find themselves working anywhere from a 60 to
solutions suggested, consultants need to be able to be in the office, the next they’ll be shipped off to simply isn’t a place for you.” 80 hour week on a regular basis. Truly, the level of
effectively communicate their recommendations the other side of the continent. Travel is part and work and travel involved in consulting means that
to the case team and the client. Consulting firms parcel of a consultant’s life, so remaining flexible those who go into the industry have to approach
look for candidates who can present articulately is key. Maturity everything from dating to holidaying from a totally
and remain composed under questioning. As part of their work, consultants will often be different perspective to most other people.
working with, and offering counsel to, clients who
As well as being a strong presenter, consultants “You dont have to be a maths professor are perhaps decades older than themselves. As
need to be able to express themselves well in a result, fidgeting, LOLing and loudly recounting
written form. Moreover, they need to be diplomatic to work at a consulting firm but it goes anecdotes from last night’s TOWIE have to go out
and get on well with different people of various the window. This doesn’t mean you can’t chat
ages and backgrounds. If you’re the sort of person
without saying that there’s a fair amount or be ‘human’; just make sure you behave in a
who can compile a compelling argument on any of number crunching.” professional, friendly manner that would allay
given subject and can succinctly explain your point any client’s potential fears about your age or
of view without alienating others, you’re likely to experience.
impress consulting recruiters. Although there won’t necessarily be time for sight-
seeing and exploring every new location you’re
sent to, having a sense of adventure and an interest
Attention to Detail in travel will help you to put a positive spin on the
Although you don’t need to be a maths professor inevitable reality that flying around from place
to work at a consulting firm, it goes without saying to place really just equates to less time to spend
that there’s a fair amount of number crunching with family and friends and more time spent in
and spreadsheets to scrutinise. As such you’ll airports and unfamiliar locations. Consultants also
need a hawk-like eye for detail. Consultants need need to be at ease with international exposure
to be aware of every aspect of an issue before and foreign clients. The ability to speak a foreign
they make a decision as even the smallest factor language would certainly make a candidate seem
can drastically change the end result of a project. more attractive, and any international experience
To forge a successful career in consulting, you need gleaned through work or travel would boost an
to be a detail person who’s painstaking in their applicant’s chances.
approach to analysis.
Energy
You’ve just touched down in your third city of
Organisational Skills the week. You’ve got to make it through customs
Consultants lead busy, sometimes frenetic, lives and check-in to your hotel before you can get to
and will frequently find themselves flying several bed, by which point you’ll have around five hours
18 19
Part 2: getting hired
20 21
a regional football team to league success? Then stand out from the crowd, (in a good way), should
tell them! be included. Highlight any technical skills you may
have, any foreign languages you speak, awards/
Accomplishments prizes received, publications printed, etc. Make
As discussed earlier, consultants don’t just spot the most of anything at your disposal that could be
problems, they identify solutions. Furthermore, used to make your case stronger.
clients want these solutions implemented quickly,
efficiently and without hassle. Therefore, any Industry Experience
accomplishments you can put on your CV to show Relevant functional or industry experience will
the firm you’re a doer and a winner will boost your add another dimension to your CV. Academics are
chances of making the grade. naturally of paramount importance, but if you’ve
also been out there and done it in the real world,
Distinctions be sure to let the firm know. Where possible,
Consulting is a difficult industry to break into, quantify your results; this will bring credibility to
no more so when the market is at a low ebb. your achievements and make them more tangible.
Therefore anything you can do to make your CV
WWW.INSIDEBUZZ.CO.UK
22 23
Consulting applications and
24 25
A CLOSER LOOK AT CASE INTERVIEWS
26 27
Case interviews: What’s the point?
28 29
AN INSIDE LOOK AT
didn’t get it but in reality, a thoughtful question will How old can you act?
show them that you are considering the scenario As a consultant, especially when you’re just starting
very carefully, eager for more information, and out, you’re going to be working with execs that are
have the guts to ask. older than you – several decades older than you in
some cases. In your interview they will be looking
for someone mature who conducts themselves
“Consultants can’t let any little piece of appropriately.
WWW.INSIDEBUZZ.CO.UK
30 31
TIPS FOR THE CASE INTERVIEW
or five minutes and you will certainly be testing Furthermore, if you can squeeze in any advanced
TIPS FOR THE CASE INTERVIEW your interviewer’s patience – after all, the case
interview’s only meant to be 15 or 20 minutes long!
business concepts – such as Porter’s Five Forces
(see the Case Frameworks article for more
information) – into your answer, do it – this will no
doubt leave a lasting impression.
Structure Your Responses
When responding to any question, it is essential Quickly Summarise Your Conclusions
that you explain your approach. Tell your The entire case interview may be as short as 15
Take notes interviewer, ‘First I’m going to discuss X; second, minutes. As a result, your conclusion will have
Before you step out the door, make sure you have I’m going to ask about Y; then using this information to be both brief and articulate. If you’re not well
a notepad and pen with you. Furthermore, check I’ll present my conclusion.’ This will demonstrate practised at summarising with such ruthless
that the latter works and isn’t going to run out of to your interviewer that you can think clearly and precision, practice this at home. Your aim should
ink five minutes into your interview. Turning up logically. Don’t feel embarrassed about mapping be to deliver a conclusion in 60 seconds or less. So
without either one of these essential items will your response out aloud, and if you’re not used get a stopwatch and get practising!
first, send a message that you’re not prepared, to it, practice on your family or friends before the
and second, prevent you from answering your interview. This should help iron out as many of the
interviewer’s questions to the best of your ability. ‘ums’ and ‘ahs’ as possible.
Unless you have an incredible memory, you won’t
be able to remember all the facts and figures your When it comes to your actual answer, you should
interviewer presents you without noting them apply the same logical structure:
down. So pack pen and paper, make sure you take • Pinpoint the objectives
notes, and don’t be afraid to ask your interviewer the responses you receive and incorporate them • Identify the key players
to repeat information if you need to. into your analysis. • Provide your recommendation
CASE FRAMEWORKS
How does this affect pricing? What is the on a single growth share matrix as a product
company’s competitive advantage? Is this a portfolio. Each product can be plotted on its
viable competitive advantage in the long term?” own growth and share coordinates. The size
of the product can be indicated by a circle in
Product: “Who buys it? Why? Is it unique to the proportional scale.
company? Can competitors move in easily with a
similar product? What’s the product’s lifecycle?” SWOT Analysis
When tackling a case interview, it is important you frameworks, is the key to cracking the case. “ S t re n gt h - We a k n e s s / O p p o r t u n i t y- T h re a t
make use of one or several frameworks in order So when you plan out your answer, take a Porter’s Five Forces Analysis”, is another broad framework that’s
to efficiently process the information, structure moment and think: what is the most logical way This framework is very useful to understand the widely used to evaluate a company or new
your thoughts and formulate a well-thought-out of breaking this question down? And what are attractiveness of an industry or a market and to business venture. Here are the questions to ask
answer for your interviewer. Frameworks are questions that I really need to answer to solve offer an insight into the competitive intensity yourself:
helpful building blocks and allow you to quickly this business problem? (both internal and external) of the company. The
have an idea of how to approach a case problem. Five Forces are 1) threat of new competition, Strengths: What are the characteristics of the
3 C’s and a P also called “Business 2) threat of substitute products or services company that give it an advantage over others?
But here’s a note of caution: don’t blindly Situation” framework 3) bargaining power of customers (buyers) 4)
memorise all the frameworks and simply This is a multi-purpose and widely applied bargaining power of suppliers and 5) intensity of Weaknesses: What are the characteristics
regurgitate your memorisation of the Four P’s or framework that can be applied to tackle a wide competitive rivalry. or limitations that place the company at a
Three C’s during the interview. This myopic, cookie range of business problems. It is best used for disadvantage relative to others?
cutter approach will have you forget the bigger issues like entering an existing or new market, BCG GROWTH-SHARE MATRIX
picture. Also, you should not communicate that launching a new business or product, growing This is a helpful framework to use when Opportunities: What are the external factors
you are using a framework during the interview. a business, reaching profitability, adjusting addressing market share and industry growth that can improve the company’s performance
Don’t say something like “I will use Porter’s Five strategy and other open-ended types of cases. questions. (e.g. increase profits) in the environment/market
Forces to analyse this market…” That’s the last This framework stipulates that four factors must it operates in?
thing a jet lagged veteran interviewer who’s sat be taken into consideration: The “growth share matrix”—stars, dogs, cash
with hundreds of candidates wants to hear. They cows, and question marks—is a diagram of Threats: What are the external factors in the
may very well penalise you for a lack of creativity. The Customer: During the case, ask yourself the normal relationship between cash use and environment the company operates in that could
“who is the customer? What is the size of the cash generation, (see below for an illustration). cause trouble (e.g. hamper growth)?
Also, be aware that you will often not be able market? Is it a growing or shrinking market?” The use of cash is proportional to the rate of
to find a framework that fits the case problem Whenever possible, slice and dice the data growth of any product. The generation of cash The 4 P’s
exactly, so always try to use your common sense that’s presented to you even further and identify is a function of market share because of the This adaptable and flexible framework is best
in combination with one or more frameworks. Try market sub-groups, relative market share, experience curve effect. used when building a marketing plan or talking
and master 3 or 4 key frameworks that apply to growth rate, customer needs, purchasing trends, marketing issues like a new product strategy,
the vast majority of consulting cases; then during price sensitivity, etc... All of the products of a company can be shown development of new markets or initiatives to
the interview engage your interviewer with increase market share. The 4 P’s are:
interesting discussions points and innovative The Company: Ask yourself “What does the
approaches to the problem all the while referring company do? What makes the company unique? Price: In the case that is presented to you, you’ll
to the frameworks to strengthen your argument. What is the company’s value proposition? What want to analyse how the pricing of a product
products and services do the company offer? or service is being used. Companies use their
This will allow you to master the large majority What are its distribution channels? What is the price as a competitive advantage. Poundland, for
of case situations. And if you do fall on a case company cost structure (fixed vs. variable)?” And example, undercuts it competitors by offering the
that’s a little odd and unusual – then it probably other questions the likes of: “How sound is the lowest possible price on its products, whereas
requires you to create and present a framework company financially? How much weight does the Chanel will set its prices very high (to maximise
on the fly. After all consultants are expected to company’s brand carry? What’s the company’s profits and portray a “premium” image).
think outside the box and deliver new solutions. organisational structure like?”
Product: Based on the case given to you, try and
But most importantly, make sure you deliver The Competition: Key questions to ask here determine the value of the product or service
your analysis in a structured and coherent way. are: “How crowded is the market the company the company offers. Ask yourself: “Is the product
We can’t emphasise enough that structure, not operates in? How many competitors are there?
34 35
ANALYSING FINANCIAL STATEMENTS
or service unique? Does it offer the company a STP (Segmenting, Targeting, Positioning)
strategic advantage? Does it have mass appeal?
Does it have a long life cycle?”
This framework is helpful in determining the right
market for a product or service. “Segmenting”
means identifying the different types of
ANALYsING FINANCIAL STATEMENTS
Place: Think of the channels through which customers, “targeting” helps pinpoint the target
the product (or service) is sold and how it is group, and “positioning” calls for implementing
positioned in the marketplace compared to the a strategy that appeals to this target group.
competition. Placement can provide a company Understanding financial statements (or accounts) company’s resources.
with an advantage relative to its competitors. Profitability Framework and how they interplay is fundamental to your Equity reveals the net worth of a company: this
People may for example use more of a product To analyse a profitability scenario you’ll need success in cracking the consulting case interviews. equals the assets that the company owns less the
if it is convenient to find, purchase and consume. to analyse revenues (quantity x price) and debts they owe to creditors. Equity can also be
costs (fixed vs. variable costs). Profit will be the Most likely, you won’t be asked to perform a defined as the claims that investors have on the
Promotion: Marketing is key – and in today’s company’s revenues less the costs; and to fully detailed accounting analysis of a company but company’s resources.
marketplace companies need to have a buzz understand profitability make sure to comment many consulting firms, especially those with
around any product for it to be successful. So ask on the income statement if available (see our strong financial divisions, will expect you to be In a nutshell, the Balance Sheet represents the
yourself how do you make a product stand out? chapter on financial statements). able to review, interpret and comment on financial economic resources of a company, including the
You’ll want to suggest a promotional strategy for statements. claims that creditors and equity holders have on
the product in the context of the case you are Other frameworks to take a look at include: those resources.
presented. • Ansoff Matrix The trick to succeeding is first to understand the
There are plenty of other frameworks to inspire • Fixed Cost/Variable Cost data you’re being asked to analyse and secondly to When looking at a balance sheet it’s also important
yourself from when cracking the case. Make sure • Profit Tree be able to link it back to the case interview that was to understand that companies can obtain resources,
you’re familiar with the following. • PEST Analysis given to you by the interviewer. (e.g. cash), from both creditors and investors, and
• Value Chain Analysis why the two are different. Debts from creditors
Value Chain Analysis Financial statements, put simply, represent all are classified as a Liability, whereas equity from
This framework looks into a company’s activities the relevant financial information of a company, investors are classified as Equity.
and links them to the company’s competitive presented in a structured manner and in a form
position. This is a great framework to flush out easy to understand. There are four basic financial Companies incur debts from creditors to, for
the different elements of a cost structure. statements that provide the information needed to example, purchase resources necessary to run their
evaluate a company. They include: businesses and promise to pay that debt back over a
specified period of time, regardless of the operating
• The Balance Sheet performance of the company. Companies also
• The Income Statement look to investors to acquire economic resources.
• The Statements of Retained Earnings However, companies don’t promise to pay investors
• The Statements of Cash Flows back a specified amount over a specified period
of time. Instead, companies promise investors a
Here’s a closer look at each: return on their investment often contingent on the
operating performance of the company. Since an
1) The Balance Sheet equity holder’s investment is not guaranteed, it is
The Balance Sheet presents the financial position of more risky that a loan made by a creditor. Debts
a company at a given point in time. owed to creditors are more “senior” than the
It includes three sections: Assets, Liabilities and investments of equity holders and are classified as
Equity. Liabilities, while equity investments are accounted
for in the Equity section of the Balance Sheet.
Assets are the economic resources that the company
uses to run its business. They include Cash, Inventory
and Equipment. 2) The Income Statement
In addition to incurring debt and seeking new
Liabilities presents the debts of the company. investors, a company can also obtain the resources
Liabilities represent what the company owes, in necessary to operate its business through its own
other words, the claims that creditors have on the operations. The Income Statement presents the
36 37
AN INSIDE LOOK AT
results of operations of a business over a specified 3) The Statement of Retained Earnings
period of time, (e.g. one month, one quarter, one This statement explains the changes in a company’s
year), and includes 3 elements: Revenues, Expenses retained earnings over a specific reporting period.
and Net Income. Retained earnings represent the portion of net
income which is retained by the company rather than
Revenue is the amount of money that a company distributed to its owners (as dividends). Conversely,
receives during a specific period. It is the “top if the company takes a loss, then that loss is retained
line” or “gross income” figure from which costs and called variously retained losses.
are subtracted to determine net income. Revenue
is generally calculated by multiplying the price at The Statement of Retained Earnings doesn’t provide
which goods or services are sold by the number of any new information not already reflected in other
units or amount sold within a time period. financial statements. But it does provide information
38 39
WHAT DO CONSULTANTS DO?
Part 3: on the job
wHAT DO CONSULTANTS DO?
So we’ve established how to get a job with a Core Work
consulting firm, now it’s probably a good idea to
address the question of what consultants actually Research
do: what does the job entail and what are the day- • Research on the client and its industry –
to-day responsibilities? using investment banking reports and other
resources, such as Bloomberg and Companies
The answer to this question isn’t a straightforward House filings.
one; it depends on seniority, experience, phase • Interviewing the client’s customers to gain
of the project cycle and the company. But broadly an additional perspective on the company’s
speaking, as a consultant you’ll split your time service.
between two distinct types of work: core work and • Scouring the firm’s records for previous
non-core work. information on the client or relevant industry.
• Liaising with project leads for advice and
In core work you’ll be working on projects of varying insights on the firm.
lengths, at various sites for various clients. These • Assisting in weekly client discussions on any
projects generally encompass research, analysis,
report writing and implementation. The other type of
work, non-core, includes pitching for new business,
preliminary research, recruitment and knowledge A Consultant’s Inside View:
building. This work is the work a consultant does
when they are not staffed on a project, (also known “I worked for a medical devices company that
as being “on the bench”). was considering whether or not to continue
investing in an early stage technology it
Core work, and specifically the variety of work that was developing. The research stage was
projects provide, is one of the main reasons that very important as I needed to gain a holistic
so many graduates and experienced professionals perspective on the client data. By reading
are drawn to consulting. However non-core work all relevant internal documentation on the
is also very important and can be just as rewarding. prior phases of this project I was able to have
Entry-level and mid-level (MBA grads) consultants intelligent and accurate conversations with the
ordinarily handle the following duties: executives who had already fought and “lived”
these battles. Documents including project
management documents, scientific trial results
and past internal company presentations were
extremely useful for this.”
40 41
WHAT DO CONSULTANTS DO?
business issues. Report Writing – aka “Building the Deck” Non-Core Work
• Assembling and scouring client data that is • Preparing the final presentation. A Consultant’s Inside View:
relevant to the topic at hand. • Assisting in presenting the firm’s findings and Pitching
• Interviewing industry experts around the recommendations to the client. • Helping evangelise the firm to prospective “A second example of pitching is from when
industry or function of the client’s problem. • Developing a high level, conceptual “storyline” clients – this includes researching the potential a semiconductor player was considering a
• Distilling your findings (from secondary or around your section of the client presentation. client and preparing supporting documents. market entry into the solar panel business. My
primary sources) and sharing the key themes • Storyboarding what you believe are the main • Assisting in compiling the prospective client’s responsibility was to study a company that had
and trends in the research with your client and visual pieces of the presentation and confirming proposal. made a similar move into an adjacent market,
the team. or receiving feedback from your project • Delivering a sales pitch to the prospective client analyse its success over time, and demonstrate
manager on your overall approach. – ordinarily using Microsoft PowerPoint. that in a short pitch deck.
Analysis • Developing high impact visualisation methods
• Designing a conceptual framework that to show important data and findings. I found client pitch work to be very ad-hoc
integrates multiple data sources and • OR Writing your slides on paper and faxing by nature; you are an available pair of hands
uncertainties into a quantitative model. them to an in-house graphics centre to produce helping out associates and partners who are
• Importing raw data sources from the client, the PowerPoint slides, so that you can remain A Consultant’s Inside View aggressively trying to win business.”
industry research, or internal firm databases. focused on developing content and insights.
• Cleaning up data to match the model structure • Cleaning up and editing slides as new data and “I helped on a number of pitch decks during
and format. findings emerge. my time as a consultant. One was for a large
• Developing and testing a robust and agile • Writing data-driven insights and “key takeaways” consumer goods company that wanted to
model that “works” and allows team members on each slide so that each slide leads to, ideally, develop its social media strategy. In this case, Knowledge Building
to engage/debate on the key variables and an actionable recommendation. I researched several best practices approaches • Synthesising lessons learned from consulting
sensitivities that drive the model outputs. • Implementation and Project Management to social media engagement, both from online engagements.
• Creating a discounted cash flow (DCF) Support resources as well as from internal practice • Developing a “fact pack” around a common
on Microsoft Excel and developing other • Organising the client team responsible for documents. My responsibility was to create problem faced by clients in a particular industry,
quantitative financial models. driving execution. several one page “case studies” of companies or some sort of industry trend, that can be of
• Facilitating debate around the appropriateness • Assigning responsibilities to key team members who engaged in successful social media use to consultants who are staffed on similar
of certain variable values with senior consulting to “own” pieces of the implementation. engagement with tangible business results. engagements in the future.
team members and client team members. • Acting as a problem-solving partner with client The idea was to bring the best of the firm’s • Working with senior consulting team members
• Running a “sensitivity analysis” around key team members on pieces of the project that are thinking on a particular topic to impress a to ensure that the insights are noteworthy,
model inputs and the related outputs. lagging or hitting roadblocks. client about our knowledge and capability.” accurate, and actionable by future teams.
• Translating model outputs from Excel to • Ensuring consistent execution by the client • Publishing work in an internal firm knowledge
PowerPoint into client presentation materials team. database or externally in an outward-facing
that can be used to inform the client or drive • Supporting the client team in creating executive client publication.
discussion. communication materials. Recruiting
• Cleaning up the model for use by the client. • Coaching client team members in presenting • Delivering recruiting presentations in your
• Developing documentation to use and updates to senior executives; allowing clients region or at the university you attended.
understand the model. the space to succeed and look good. • Holding informal coffee chats at your university.
• Training an assigned client team member on • Following the completion of the project, • Interviewing and evaluating candidates in early
the use of the model. documenting and analysing the strategy’s decision rounds.
• Analysing the accumulated data. outcomes. • Assisting in “cultivation” efforts to persuade
• Developing proposals and recommendations. candidates who have an offer at your firm
to accept, and not accept an offer from a
competing firm.
42 43
CONSULTING JOB DESCRIPTIONS
A consultant will also work closely with mid-level The next rung on the ladder is the Principal position.
44 45
TYPES OF CONSULTING PROJECTS
TYPES OF CONSULTING PROJECTS
Over the course of their careers, consultants such as the introduction of new technologies. The Reorganisation Projects
ordinarily work across various industries and on consulting team will then present their findings As a company expands – merging with and A Consultant’s Inside View: Reorganisation
all sorts of projects. Despite this span and variety and make strategic recommendations to the acquiring other businesses – it can sometimes grow Projects
of assignments, consulting projects can loosely be client. If the project goes well, the client may hire into an unwieldy behemoth, comprising various
categorised as one of the following: the consultancy to implement these suggestions. structures that don’t necessary slot together. “I once worked on a post-merger integration
Furthermore, if the subsequent strategic execution A structural reshuffle can help mitigate these between a large US Healthcare company
runs smoothly and yields results, the client may problems associated with large businesses, and the and a fairly large acquisition. During this
Strategy Projects well seek the firm’s counsel on an on-going basis. third party expertise of a consultancy is often called project, many tough decisions were made
A strategy project is exactly what it sounds – a upon to optimise their operations. around how the departments were going
review and evaluation of a company’s current to reduce their headcounts, etc. in order to
overall strategy. Consultancies are often hired to Cost Cutting/Re-engineering Projects Any recommendations a consultancy makes, will realise the synergies promised by the original
undertake strategy projects following a change Following on the heels of strategy projects, these invariably affect the client’s employees. Job titles transaction.
in a client’s leadership, or in the aftermath of data-intensive assignments normally require and descriptions may change. Entire departments
disappointing financial results – usually under prolonged periods at the client site. Consultants can be created, disbanded or shifted and employees This type of project is emotionally trying for
pressure from their board of directors. are tasked with finding ways to save the client may find themselves moved into different jobs, everyone involved, so it is no surprise that
money and demonstrating the impact of their relocated or even made redundant. Those that companies bring in external consultants to
Consultants will typically examine whether their recommendations. This analysis could involve the retain their job in some guise may well be expected provide focus on the technical details of what
client could be more competitive and investigate review of anything from the cost of raw materials to learn new methods and technologies, and must be done.
their vulnerability to fundamental market changes, to advertising spend. assimilate the processes and policies implemented
by their company. With the sensitive nature of “During the project my firm oversaw a
these changes, consultants must be compassionate number of different activities, including:
A Consultant’s Inside View: Strategy Projects could completely bypass the existing cable and – after all, one day these individuals may become • Setting up teams of employees to lead
telephony infrastructure to offer a competitive clients! and own the integration effort, coaching
“One of my first projects at the firm was a product to cable. them through tough decisions, and
classic strategy project. Our team was hired by making sure these decisions were made.
a regional cable TV operator in North America to This project involved developing responses to Project Management/Implementation • Facilitating the “grading” of employees
evaluate whether they should put major capital a number of highly uncertain questions – how In large-scale projects, companies often find the as “A”, “B” or “C” players in order to
investment dollars into a 4G LTE broadband would mobile broadband pricing evolve over third-party impartiality of a consultancy helpful in retain the best and release those to be
network. time?; how would mobile broadband data coordinating a number of different departments. deemed underperforming. This was not
consumption evolve over time?; would the This means plenty of facilitating, mediating and easy work but, obviously, it had to be
The cable TV business was undergoing significant specific technology under consideration be a implementing – i.e. anything that helps drive the done.
technological change, with “Millennials” and technology with “staying power” or at least project to a successful completion. • Reshuffling of positions. Unfortunately
other consumers who were “cutting the cord” of enough staying power to obtain a return on Some consultants complain that project this led to some high performing
cable because they could obtain entertainment investment?; assuming that data usage was management isn’t the most interesting or executives leaving because they felt that
via the internet through multiple other devices set to explode, how could we model explosive stimulating of work, but not only will these projects the growth opportunities were lacking as
and platforms, e.g. Hulu, Netflix and iTunes. growth in a conservative way?; how quickly help hone organisational and interpersonal skills, another layer of management just got
would users cut the cord?; which devices would they also provide a recurring revenue stream that placed above them.
A second factor was the imminent availability be here to stay – was everything moving towards often makes up the bulk of a consultancy’s bottom • Combining the products and services of
of 4G LTE networks. These networks promise an all purpose phone that would provide all the line. the two companies where appropriate
broadband speed completely over the air rather internet needs for a household, or would people and re-segmenting customers.
than via the cord which means that future still desire things like data cards?” • Redefining product and service bundles.
players offering mobile broadband products
46 47
Q&A with an associate at bcg - sam
48 49
q&A with an associate
50 51
manage your own schedule carefully, and to raise Any advice for the interview process?
your hand if there is too much on your plate to Relax! So much of the challenge of the interview is
manage feasibly. coming across as comfortable and easygoing. BCG
interviewers are looking for people whom they
would enjoy working with; the likeable aspects of
What challenges have you come across and your personality will have a harder time showing
how have you overcome these? through if you’re a ball of stress.
Consulting is a client-oriented business, and many
of our clients are large, complex organisations Of course, this is easier said than done. The best
with their own cultures, politics, and personalities. way to ensure you come to the interview relaxed
Navigating these organisations and working is to be confident. The best way to be confident
effectively with our client counterparts can is to prepare. BCG is very transparent about the
sometimes be challenging. format and content of the interviews. Familiarise
yourself with all of the materials available, attend
In such situations, I have found that it helps to be our campus talks and events, and get in touch
constructive and proactive. Emphasising someone’s with current BCGers who can talk you through the
strengths, for example, encourages them to bring process. Also be sure to do a mock case or two with
those strengths to the table when you are working a friend. You can find several on the BCG website.
with him or her, and can greatly improve the
productivity of your relationship.
WWW.INSIDEBUZZ.CO.UK
52 53
A DAY IN THE LIFE OF AN ASSOCIATE AT
54 55
LIFE AT BCG - ANDREW, ASSOCIATE LIFE AT BCG - georgia, ASSOCIATE
LIFE AT BCG
(Sponsored Information) (Sponsored Information)
56 57
LIFE AT BCG - Hortense, associate LIFE AT BCG - nicola, junior consultant
LIFE AT BCG
(Sponsored Information) (Sponsored Information)
A Personal Story
Since joining BCG full-time in March 2012, my A personal story
experience has exceeded my expectations in any I joined BCG to learn fast, to get exposure to a broad
possible dimensions. The level of learning, the range of sectors and work, and most importantly
numerous opportunities and the stimulation are because everyone I met during the application and
constantly on the rise – this makes the job not interview process was not only of exceptionally
only extremely interesting but also tremendously high quality but they were also very interesting and
motivating and rewarding. During my first few friendly people who I thought I would really enjoy
months at BCG, I have mostly worked in media working with.
and consumer goods and I found that all projects
have provided me with a very unique experience in I had high expectations of learning and
their respective ways. As an analytical and creative development at BCG, but the experience even
individual, BCG is undoubtedly a preeminent exceeded them! The BCG apprenticeship model is
environment for merging these capabilities. highly valuable in a way I couldn’t fully appreciate
before arriving – even after having worked for a
Further, if diversity appeals to you, you will greatly range of organisations. The regular opportunities
enjoy the interactions that come with being part to discuss ideas and insights as well as gain detailed
of such a culture. What strikes me continuously and constructive feedback with different partners
is the diversity of the people working here; this and principals have probably accelerated my
is indisputably one of BCG’s true strengths. At learning by many years.
BCG, you will meet and work with some of the
most passionate, diverse and inspiring individuals. Since joining just under two years ago I have
Everyone here has something truly exceptional “At BCG, you will meet and work with worked on media, energy and mining projects in
“The high quality of people you find
about themselves - which makes the work not only economic research, organisation and strategy. I’m
remarkably stimulating but it is also what makes it some of the most passionate, diverse now working on an international development at BCG are an essential ingredient for
fun! and inspiring individuals.” project – an area I had previously worked in. This
a highly accelerated and enjoyable
comparison enabled me to see even more clearly
Hortense what the elements are that make BCG so effective learning experience.”
Background Associate, London in helping our clients.
Hortense joined BCG in March 2012 after Nicola
completing a BSc. in Management at Royal And I was right about the people – I have truly Junior consultant, London
Holloway and doing an internship at BCG London loved working with all my teams. We operate in a
in 2011. After finishing university, Hortense spent very collegial environment where I feel that I can
some time travelling in South America and around approach anyone with any question and everyone Prior to joining BCG she worked as a senior
Europe. is willing to help me reach my potential. My advice economist for the Government of Papua New
is talk to as many people as you can while deciding Guinea, a consultant for the Asian Development
on whether BCG would be good for you. Bank and as a consultant for TechnoServe based in
Uganda.
58 59
LIFE AT BCG - lucia, junior consultant
LIFE AT BCG
More recently, BCG has enabled me to pursue seem endless – all you have to do is take advantage
a 9-month secondment to the Strategy Team at of them!
the world’s largest independent cancer research
(Sponsored Information) charity, which has continued to stretch me and to Background
broaden my horizons, and I feel very lucky to have Lucia holds a degree in Geography from Oxford
had a chance to work for this important cause. University. She joined BCG full-time in 2009 after
BCG is an organisation where the opportunities completing a summer internship in 2007.
A personal story
Whilst looking at possible career options, and
feeling that nothing truly appealed, I stumbled
across BCG at a careers fair and it immediately
grabbed my attention. Here was an organisation
where the day-to-day would never be repetitive,
where the content of the work would be interesting,
challenging and right on the agenda of top business
leaders, where I would have a chance to travel and
to work with people from all backgrounds, and
where – above all – everybody I met appeared to
be dynamic, inspiring, intelligent and yet incredibly
down to earth alongside. My inquisitive mind was
hooked.
62 63
glossary
A guide to Consulting buzzwords may let out: “Let’s not boil the ocean!”
Deck
The process of reviewing a client’s business A powerpoint presentation used for
processes, eliminating unneeded or “nonvalue- communicating analysis and messages both to
I heard you’re “on the bench”... Anyway, if you Balanced scorecard added” tasks, and then implementing the leaner, clients and internally.
have the “bandwidth”, “ping me” so we can Is a performance measurement system that allows more efficient process.
conduct a “due diligence” on the “DCF”; No need organisations to manage and measure the delivery Deep dive
for a “deep dive” and let’s not “boil the ocean” but of their strategy. It considers not only financial Bottom-up A thorough, in-depth analysis of a particular topic.
at least look at a few “paradigms”. Include a “bird’s measures, but also customer, business process, When analysing a business, bottom-up involves
eye view” and “benchmark” for finding our “deck”. and learning measures. analyzing the company’s financial statements Drilldown
and health, its management and competitive Asking questions to gather more details. E.g.
Want to work as a consultant? Here is a quick Big 3 advantages, and its competitors and markets. It “Let’s look at the bird’s eye view and then drill
rundown of the consulting jargon and buzzwords The top three consulting firms in the industry: also means to look at the smallest units possible down.”
you’ll need to master in order to keep your head McKinsey, Bain, BCG. to initiate analysis.
above water when you’re on the job: Due diligence
BCG (growth-share) matrix Buy-in Extensive investigation of a business or person,
80/20 rule A portfolio assessment tool developed by The Agreement, support. typically prior to signing a contract.
Also known as the Pareto principle, states that, Boston Consulting Group in the early 1970’s. It
for many events, roughly 80% of the effects come is based on the observation that a company’s Case team Elevator test
from 20% of the causes. It’s become a rule of business units can be classified into four A team working on a consulting project for a A test of one’s ability to explain concepts in a
thumb in business; e.g., “80% of sales come from categories based on combinations of market client; usually composed of one partner (or short-period of time.
20% of clients”. growth and market share relative to the largest director), one consultant and two or more
competitor, hence the name “growth-share”. analysts. Engagement
B2B A consulting assignment received by a
Business-to-business. Describes commerce Benchmarking Change management consultancy.
transactions between businesses. Measuring a value, business practice, performance A service where the consultancy helps a company
or other quantity (such as price or costs) against cope with a period of significant change (such as a Enterprise resource planning (ERP)
B2C those of other companies in the industry. merger, acquisition, restructuring, downsizing). Processes or software that manage/coordinate
Business-to-consumer. Business or transactions all the resources, information, and functions of a
conducted directly between a company and Bird’s eye view Circle back business.
consumers. A high level view. To follow up at a later point in time, usually to
review progress on the current topic of discussion. Experience curve
Bandwidth Blank slide The principle that a company’s cost declines as its
A person’s work capacity, free time, ability to Slides (usually PowerPoint) showing what kind Core competencies production increases.
shoulder additional work. For example: “I don’t of analysis is required and what kind of message The areas in which a person or company excels.
have enough bandwidth to take on any new should be conveyed, but doesn’t contain the
clients.” actual information – yet!
64 65
A GUIDE TO CONSULTING BUZZWORDS
GMC Opportunity cost Synthesize Work plan
Global Management Consultancy, sometimes A basic economic principle, it’s the cost of any Blend several learnings together into an A schedule for completing a consulting
referring to just the Big 3, sometimes referring activity measured in terms of the value of the next actionable piece of advice or theme. Project engagement on time.
to the Big 3 consulting plus the Big 4 accounting best alternative that is not chosen. managers may often be heard screaming, “What is
firms. the synthesis?!” White paper
Outsourcing An authoritative report or guide that helps readers
Granularity The process of contracting out a business process, Up or out understand an issue, solve a problem, or make a
Refers to the smallest, basic elements that make which an organization may have previously Also known as “sink or swim”, this is a promotion decision.
up a much larger business problem. performed internally, often at a lower cost and policy that requires consultants/employees to
with better results. leave a firm if not promoted within a certain Workstream
Guesstimate timeframe. A piece of the compiled document owned by an
A type of consulting interview question that Paradigm Value-based management associate or analyst.
requires candidates to make an educated estimate Overused lingo for “model” or “framework”. A consulting strategy, the end goal of which is to
(for example: number of pasties sold in the UK boost shareholder value for the client company. Writing a deck
each year). Pigeonholing Preparing slides for client presentations.
When a consultant becomes overspecialized. Value-added
Implementation defines a product or services adds value to a pre-
A term for when a consultancy’s advice to a client Ping me existing product or way of doing things.
is carried out. A phrase that means to get in touch with another
consultant. Based on the internet tool in which
Learning curve you send a single packet of data.
The rate at which a consultant gathers company
and industry information needed for a case. The Pipeline
steeper the curve the better. Refers to the current and upcoming, ongoing list
of client engagements.
Let’s think out of the box
Really means, “Can anyone please come up with Rockstar
something creative?” A fantastic bright employee... a high achiever.
WWW.INSIDEBUZZ.CO.UK
66 67
ACKNOWLEDGEMENTS
ACKNOWLEDGEMENTS
www.insidebuzz.co.uk
THE INSIDE BUZZ TEAM sending out CVs. When not buzzing, tweeting or
Thomas Nutt is the founder of Inside Buzz and posting, Dani also likes to read Game of Thrones
previously worked for Vault.com in both New York but roots for Joffrey.
and London (where he launched Vault Europe and
served as European MD). His years of recruitment Tom McDermott is the newest addition to the
publication expertise keep the rest of the Inside Inside Buzz team and has a dual role as part of
Buzz team running smoothly and working hard. both the editorial and sales teams. As a fan of
When he’s not at Inside Buzz HQ or out and Newcastle United, Tom spends most of his time
• 1,000s of authentic
about with clients, you can find Thomas on the hoping for a return to the glory days of the 1950s.
100s of in-depth company basketball court or travelling around the world.
Gavin Woods has a keen interest in corporate
profiles and salary info on:
employee reviews Hannah Maltby is in charge of editorial at Inside
Buzz, which means she is the one who makes sure
journalism and currently juggles a Masters in
English with writing and editing for Inside Buzz.
Accenture, Apple, Bain & Co, Banco the company profiles and employee quotes are
• Company specific Santander, BBC, BCG, BNP Paribas,
collected, formatted, and posted on the website.
When not in the office you can find Hannah
Arthur Guy is Inside Buzz’s infinitely capable
and highly patient web developer. Known as
• Free 2013 career Credit Suisse, Deloitte, Ernst & Young, Danielle May works hard to get the Inside Buzz
word out to students and young professionals.
Zoe Coles oversees our design and production.
She makes our guide and website look good.
guides for Freshfields, FSA, Goldman Sachs, She loves chatting about career choices and the
importance of doing a bit of research before
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What you’ll find inside
What is consulting? What do consultants do? Is consulting the right
career for me? What do I need to know to ace the case interview?
This guide has the answers to all these questions and more.
www.insidebuzz.co.uk
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