University is a difficult journey for anyone, regardless of major. Oftentimes, it takes a lot of navigating to truly understand what you want from your experience and where you want to end up. For me, I was fortunate to study at a Canadian business school and interacted with numerous small and large companies from a variety of industries. Since graduation, I have had the pleasure of working for both a boutique and a large strategy consulting firm and wanted to share my insights on the differences in:
- Undergraduate recruiting
- Projects and client types
- Workplace culture
- Exit opportunities
1. Undergraduate recruiting
Typically, large consulting firms are diversified across industry groups and functional areas. Oftentimes interviewers ask case questions based on their previous projects and industry experience. A quick LinkedIn search will give you a better idea of what you can expect. Always be prepared to solve business problems in familiar industries as well as obscure ones (e.g. the nappies industry in India).
Boutique consulting firms are no exception – one misconception is that they expect candidates to have previous industry or function exposure given that these firms are more specialized. Although those experiences might look appealing to a recruiter on a resume or cover letter, an interviewer is more interested in exploring a candidate’s ability to problem-solve. I used to work for a boutique consulting firm specialized in the financial services industry. During the recruiting process, I was surprised that I had to answer interview questions on the retail and transportation industries! With that said, you should still emphasize your relevant prior work experiences that align with a consulting firm’s offerings if you possess those experiences.
Be prepared to go through two rounds of interviews for most consulting firms and gain at least some basic knowledge on different industries to impress the interviewers.
2. Project and client types
From my observations, both types of consulting firms offer different variations on a “generalist model”. At a boutique consulting firm, expect to gain a deep understanding of a specific industry but have the opportunity to rotate across functional areas. At my previous organization, I was aligned to pricing strategy but was assigned to the firm’s marketing and distribution practice. In contrast, you can rotate across both industries and functions at a large consulting firm. My first project at my current firm was around growth strategy for a healthcare client; I expect my next project to be a commercial due diligence in another industry.
Boutique and large consulting firms can serve both similar and different client types. Typically, boutique consulting firms target small and mid-market clients whereas large consulting firms focus on large corporations – this market segmentation exists because of differences in service offering scope, expertise, fees, and client relationships. However, there are many exceptions to the rule. For example, I worked with Fortune 100 banks in both Canada and the United States during my time at a boutique consulting firm.
If you already have a good idea of your career goals, a boutique consulting firm can help accelerate the journey to achieve those goals. At a large consulting firm, you will have the flexibility to test out different areas and ultimately specialize as you gain tenure. This path is more suited for individuals who are unsure of their end goals and are more open to learn about new industries and gain experience in different functions.
3. Workplace culture
At a boutique firm, expect to quickly build strong relationships with colleagues. I found that it was easier to build rapport with my team given that I was located close to them and interacted with them regularly. By the end of the first month on my first project, I would even go on coffee runs with senior members of the team. Also, junior consultants will receive responsibilities and ownership very early on. This can accelerate your development if you are performing strongly and creates a positive brand for you during staffing and promotion conversations. However, boutique firms lack formal training programs – the culture is more of a sink or swim model. As a result, promotion is almost 100% determined by job performance – consultants are not evaluated on leadership and volunteering initiatives. Lastly, there are fewer firm-wide events. That means you will get extremely close with colleagues at your home office but might feel more distant when working with an international / cross-office team.
At a large consulting firm, there are structured development opportunities and formal mentorship programs available to all employees. Training and coaching sessions are critical to promotion and are regularly accessed to ensure you are taking the initiative to develop yourself. There are also more firm activities such as volunteering events, committees, internal inclusion networks, and secondment opportunities, all of which promote leadership and community service. At a large consulting firm, you will have more opportunities to expand your network and learn from others. Be careful not to get lost in the crowd. It is more challenging to stand out because your peers are as motivated and as driven as you are. It also means that you need to rely more heavily on yourself to voice your preferences and be cognizant of bureaucracy.
4. Exit opportunities
A boutique consulting firm is a great place to work if you know what industry you want to end up in. My previous firm specialized in financial services – financial services was the bread and butter for many of my colleagues, many of whom ended up with positions a few rungs higher on the corporate ladder (i.e. they received manager or director-level positions within the industry). Likewise, many also transitioned into leadership roles at well-known start-ups as well as other consulting firms. The downside? Once you become more senior at a boutique consulting firm, your knowledge of an industry will increase but your scope of opportunities outside of that niche will narrow. Again, this is advantageous if you are genuinely interested in your specialized industry.
Typically, I noticed that there is a broader range of exit choices at large consulting firms. As you work across industries and functions, you can choose the areas in which you want to gain expertise and build your network. Likewise, you can have the opportunity to do secondments or externships at other companies or non-profit organizations – one of my colleagues left his consulting career to join a financial institution after participating in an externship.
Final Note
These differences between boutique and large consulting firms are based on my observations and are provided to help guide your thinking about a career in the consulting industry. I strongly believe that these considerations will be more relatable as you conduct your own research, go through the recruiting process, and move up in your career. For me, I was fortunate to have experience working for both a boutique and a large consulting firm. With that said, why not give both a try?
Jeff Zhang is an Associate at PwC working with the Deals Strategy / Strategy Consulting team. Previously, he was a Management Consultant at Novantas with a focus on the financial services sector. He has experience advising clients on pricing, marketing, distribution, big data analysis, and growth strategy projects.
Image: Pexels
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