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Management Consulting and the Consulting Industry 101

It appears like everybody nowadays is in administration counseling – system advisors, business specialists, innovation experts, IT experts, showcasing specialists, and the rundown continues endlessly.

It’s a catch-all title for somebody who gets paid to give their recommendation on specific subjects to organizations.

In this post, we’ll endeavor to answer 3 unavoidable issues:

– Who are administration experts? – McKinsey, Accenture, Monitor… what’s the contrast between various administration counseling firms? – What do administration experts really do?

Who are consultants?

Management consultants as people are generally:

1) Knowledgeable about the topic at hand

2) Well-connected within the industry

3) Have a reputation and/or brand (based on experience, publications, etc)

4) Effective communicators

Companies often face questions that they are incapable of answering or too busy to properly address. This is where management consultants come in, armed with the above 4 traits, to help address precisely those questions.

McKinsey, Accenture, Monitor…what’s the difference between different management consulting firms?

The consulting industry can be segmented accordingly:

1) Management consulting firms (eg McKinsey, Bain, BCG – MBB)

2) One-stop-shop and technology-focused consulting firms (eg Accenture, Deloitte)

3) Niche/boutique consulting firms (eg Mercer HR, Kurt Salmon)

4) Independent consultants (self explanatory)

Our categorization isn’t perfect – for instance, boutique consulting shops provide management advice; one-stop-shops often focus on IT/technology and less on strategy.

In addition – many corporations these days have in-house consulting groups (often populated by ex-McKinsey-Bain-BCG-types).

And much of what the venture capital industry does when working with portfolio companies is similar to what Monitor would do for their Fortune 500 clients.

Finally, what do consultants do?

The answer is: it depends. If you’re an analyst/associate, your job is to do the grunt work necessary to answer client questions.

You will work with the following pieces of software:

1) Microsoft Powerpoint 2) Microsoft Excel 3) Email…lots and lots of email

You will be provided the following pieces of hardware:

1) Smartphone 2) Durable laptop, usually a PC

Your day will typically include the following (with a more detailed post on this later):

1) Client meetings 2) Team (internal) meetings 3) Data gathering and analysis 4) PowerPoint slide creation 5) Conference calls

With all the over, your employment is to concoct the most exhaustive, information driven bits of knowledge and answers that your customers don’t definitely know. These will shape the reason for suggestions that your group will give, and from which your customers will (in a perfect world) roll out improvements to their business to bring about at least one of the accompanying:

1) Increased income

2) Reduced costs

3) Clear vital heading (acquisitions/divestitures/associations)

4) Org plan and the approach for procuring and terminating of representatives 5) And so forward

If you want to become an management consultant, you have to prepare for the recruitment with many rounds including Screen round, Case interview test, Gmath test, Problem Solving test. It will take time and effort to win the dream job.

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