What is Consulting?
Many of us have heard the term consulting before, whether it comes up in a chat with friends about making money or just throwing around the term loosely when trying to come up with an entrepreneurial idea. What does consulting actually mean and is consulting right for you?
The term consulting is very broad and has no doubt been used in your vocabulary before. A consultant is simply a person who provides expert advice professionally. In the business world a consultant offers the service of helping their clients achieve their goals and solving their most crucial problems. The job of consulting can vary from company to company and from leadership to leadership; that’s also one of the most desirable aspects of the job because there is so much ambiguity this allows you to grow within your role. In your early years as a consultant you would likely hold a general consultant role, having your hands in multiple different industries, allowing you to gain even more exposure to different experiences. Consultants provide advice to their clients in regards to strategies moving forward, addressing challenges the company is currently facing, and finding ways to solve these issues. The competitive advantage of consultant firms is what attracts clients to seek them out for advice, in hopes that the information and expertise of the firms can help figure out a solution to their problem. An example of some issues consultants focus on would be mergers, acquisitions and managing company strategy. Consultants’ careers can range from marketing, operations, management and more, each with their own specialized role as you progress in your career.
Figure out what you have to offer and what to expect
What do you have to offer to these consulting firms? Consultant jobs generally require at least a bachelor’s degree to get through the door and a Master’s Degree or higher to get further ahead as well as some years of work experience to show that you understand the workforce. You should always be considering how you can use your knowledge to improve, change, and lead advancement in your client’s companies. Being a consultant requires you to be able to articulately share your ideas and thoughts, explain concepts to stakeholders, and present findings (usually in a PowerPoint presentation format). A consultant needs to be both a people’s person and an analytical person.
As mentioned before consulting is a great way to gain expertise in many different industries and hopefully find the one that you’ll be most interested in. This comes with the caveat that you always have to be flexible with your time and workstyle. The main downside voiced by many people is that consulting is very travel intensive. Consultants are almost always on the road, travelling to client locations to view the issue first-hand and exploring how your team can fix it; it’s not uncommon to hear a consultant traveling 4+ days a week with long days of 12+ hours. Being a consultant requires you to be able to handle the travel, dynamic environment, and a dynamic team that can constantly change from project to project. If you’re able to get a good grasp on these skills then you’ll be cruising on through.
In bigger firms, there is a policy that has been implemented to support the firm’s best interests called the “Up or Out” policy. In layman’s terms this policy means that if you are not promoted within a certain amount of time at the firm, you are fired. If you are perceived to be talented or skilled enough to one day make partner, then you would be retained and promoted, however if your results have been subpar then this would give the firm a reason to let you go and hire other talent. Don’t look at this point and immediately reconsider; as a consultant you need to keep in mind that the teams you work with are some of the brightest minds in the industry. Working with these people on a daily basis and bouncing ideas off one another is sure to make you grow not only in your career, but as an individual.
Management Consulting Firms
Management consulting firms address glaring issues and present solutions usually to senior level management and C-suite executives. In the industry, management consulting firms are categorized into different “tiers” with Tier 1 being the most sought after. The Tier 1 consulting field is dominated by the Big 3, also known as MBB, which stands for McKinsey & Company, Bain & Company, and Boston Consulting Group (BCG).
Aside from these 3 companies, other companies widely recognized for management consulting are: Accenture, Strategy&(PwC), EY(Ernst & Young), Deloitte, KPMG, among many others.
Please keep in mind these companies just skim the surface of the industry and there are many more companies out there that offer consulting services. If management consulting is something that you find an interest in, please take a look and follow along for more articles!
Henry (Heng) Xie is a current MBA Candidate at NYU Stern with a focus on Management, Strategy, and Business Analytics.
Image: Pixabay
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