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In consulting firms, the "up or out" policy is a requirement that consultants be selected for promotion within a certain period of time, or they will be "counselling out" of the firm. Is this a bad thing? Well, on the one hand, if you are a super star consultant, then the "up or out" policy is a good thing since it can give you the chance to progress your career at an accelerated pace, gaining valuable work experience within a relatively short period of time. However, on the other hand, consulting firms typically have a pyramid structure (with a few partners at the top, and lots of juniors at the bottom), which means that every year some consultants will inevitably be encouraged to pursue other opportunities. But since top consulting firms only hire the best of the best, leaving after two years should not be viewed as a failure. It is very common for this to happen. A few years of management consulting experience can open up various attractive exit opportunities including: Pursuing an MBA at a brand name business school (Harvard, Stanford, Oxford, INSEAD) Going to work at another consulting firm (just because you leave one firm, doesn't mean you have to leave the industry) Going to work for a client (you already know their business, and so if they like your work they may try to poach you) Build a startup. Consultants gain experience in understanding various industry sectors, and this knowledge could be used to identify opportunities for a new start-up company. The connections and networks built during your years in consulting may also come in useful when trying to raising start-up funding. Some of the commentary I read elsewhere suggests that junior consultants need to be guarded, and avoid making friends so that they can remain as competitive as possible in an "up or out" environment. While consulting firms are no doubt very competitive environments, I would suggest instead that junior consultants focus their attention on maximising their contribution (both in a professional and social setting). This will naturally attract positive attention (but be careful not to let others steal your credit). Consulting is probably not a good career path for people looking for affirmation from colleagues and clients. As New York based consultant Alan Weiss puts it, "if you want to be liked, get a dog". Is a consulting career high risk? In my view, students looking to start their career in the management consulting industry should view it as a continuation of their education. You may not remain a consultant for your whole career, but you may get to work on interesting projects and learn a lot for a few years before you reassess what you want to do with your life.

I think maybe its a good thing for the consultants who are asked to resign. First, the job they do currently maybe is not a good fit with his skills. Let's suppose that someone works in a famous consulting firm now, when he is asked to resign, other small consulting firms may need him. And investment banks (and many other companies) who are looking for people with consulting skills may need him. Second, the experience in working in a big consulting firm is good for his CV, and will open up more opportunities than a graduate. Also, I think consulting is a high risk industry because it has a high turnover rate. A critical reason is the "up or out" policy, but it may be risky for other reasons as well.

Hi Abby, Thanks for your question! There are a few key differences between the Big 4 (KPMG, EY, Deloitte, PwC) and MBB. Nature of the work - The Big 4 are traditionally accounting firms, which now provide a wide range of professional services including audit, financial advisory, tax, legal and consulting. The Big 4 and MBB may work on similar types of consulting projects, but it will depend a lot on which office you work for, and which practice area you end up in. Historically, the Big 4 have had a bigger focus on operations and implementation, whereas MBB have focused more on pure strategy questions. Hours worked - As a junior in a large professional services firm (i.e. Big 4 or MBB) you can expect to work 60+ hours per week. In other words, Big 4 and MBB will both be long work hours. This may vary depending on what projects you are working on. Prestige - MBB is much more highly regarded in the consulting industry. Why? Well, they spent many years and millions of dollars to make sure this is the case. MBB tends to attract higher calibre employees who studied at more prestigious schools, and as a result MBB consultants tend to progress in their careers much faster (whether it be promotions within MBB, heading off to B-school, or taking a job elsewhere). Don't underestimate the value of a powerful brand name. The People - Most people who land jobs in consulting at the Big 4 and MBB will be smart, hard working and generally impressive individuals. That said, MBB has more pulling power, and will consistently attract the best of the best. Historically, MBB would only recruit from the very best universities, however it seems they now consider a broader range of applicants. Exit Options - Big 4 and MBB will both offer you strong exit opportunities (e.g. B-school, industry, PE). In my experience, business schools and recruiters place a premium on MBB compared to Big 4. MBB are the Oxbridge of the consulting world. Does that help?