Companies use management consulting services to receive guidance on a range of organisational and strategic concerns. Consultants assist these businesses in resolving challenging business issues by drawing on their knowledge and experience.
The prestigious area of management consulting combines both strategy and implementation. Want to know more? Below, we look at what the work actually involves, the main types of consulting, why companies keep hiring consultants, and what it takes to break into the field yourself.
What Is Management Consulting?
In order to improve corporate strategy, operational procedures, and organisational performance, this sort of consultancy offers businesses implementation and advisory services.
The three primary service categories that make up management consulting—which makes up the majority of the consulting industry—are strategy consulting, operations consulting, and HR consulting. There are several options for consulting within these, including:
- Corporate strategy
- Economic planning
- Mergers and acquisitions
- Digital marketing
- Marketing and sales
- Supply chain
- Purchasing and sourcing
- Research and development
- Human resources
- Talent management
- Compensation and benefits
- Learning and development
Why Do Companies Use Management Consulting?
The market for management consulting services is predicted to reach about $974 billion globally in 2022 (and more than $1,320 billion by 2026), with an anticipated market size of almost $330 billion in the United States alone.
There is no doubt that this industry is expanding, but what advantages does management consulting provide businesses that use it?
Alastair McKee, worldwide business strategy and operations manager at Google and a collaborator in the development of Forage content, argues that businesses use management consultants for a variety of reasons, including strategy, project management, cost reduction, etc.
He explains that "at a high level, the main reasons a company hires management consultants are either they don't have the ability and/or capacity to get a specific task done, or they want to benefit from a consulting firm's experience to tackle a difficult challenge or make the most of an exciting business opportunity."
Due to the possibility to depend on a consulting firm's competence in a range of fields and industries, management consulting is a highly sought-after service. Whatever the problem, there's a strong chance the organisation has already dealt with it and is ready to provide tried-and-true case studies and solutions. (If you want to see what those problems look like from the consultant's side of the table, our prep cases are a good place to start.)
Additionally, it might be quite beneficial to hire a problem-solving expert with solid analytical abilities who is committed to resolving a company's business challenges. We've written separately about how management consulting helps companies if you'd like more detail on that side of things.
How to Start a Management Consulting Career
A focused education is frequently your best shot for breaking into management consulting because many companies employ straight out of bachelor or graduate business school programmes. Although there aren't any particular educational qualifications for the industry, the best companies might be very picky.
McKee says, "Unfortunately, consulting companies place a lot of emphasis on a straightforward definition of status. Going to a target school where the major firms recruit is preferable if you want to gain a job at an MBB company (McKinsey, Bain, BCG). Both hiring MBAs and undergrads fall under this category." The corporations may start to widen their reach, but history shows that attending a target school is essential.
According to McKee, boutique consulting businesses might not care as much about the specific institution you attend. However, all businesses—whether MBB, boutique, or something in between—seek the most intelligent problem solvers they can find, making sure that they would feel at ease in front of clients.
How to Stand Out as a Candidate
Finding strategies to stand out in such a crowded sector is essential even with the correct knowledge. You may gain practical experience and demonstrate to companies that you have what it takes to succeed by looking for internships and other work experience opportunities in consulting.
The other thing that separates candidates is interview preparation. Most people know the case interview exists; far fewer have actually practised one under time pressure. Working through case drills and a few guesstimates every week does more for your confidence than reading another framework book.
Related Reading
If this article was useful, these are the natural next reads:
- Career path for a strategic consultant – what the ladder looks like from analyst to partner
- 10 reasons why top strategy firms are highly sought after
- The importance of communication skills in management consulting
- Management Consulting Placement Plan – our structured route into MBB and boutique firms
