This is the first of a series of articles on the topic of management consultancy, ranging from an introduction to what an interviewer looks for in a candidate to an in-depth strategic preparation plan. These articles are written from the perspective of entry-level roles at such firms.
Introduction to Management Consultancy
Management consultancy, also known as a business consultancy is a very popular choice amongst students from various academic and industry backgrounds. Be it students from a b-school, from an arts & commerce college or from an engineering background, management consultancy is a field open to all.
A management consultancy is a firm that consults its clients on specific problems they face or with any objectives that the clients have. The clients include other businesses, governments, NGOs, or any other institute. The nature of the problems and objectives of the client that a management consultancy caters to, varies across a wide spectrum. It could deal with business objectives such as increasing profits or revenues or market shares, or it could be to launch a new product. It could also be to strategize and help plan the recovery of a government from the impact of COVID-19. These are just a few examples of the kind of problems that a management consultancy solves.
The topmost companies in this field are titled the ‘MBB’, McKinsey & Company, Bain & Company, and Boston Consulting Group. Several other names that you might have heard of include EY-Parthenon, LEK Consulting, Kearney (formerly known as AT Kearney), and Dalberg, amongst many more. The ‘Big 4’ companies also have their own consulting wings.
Bear in mind, a few of these companies work only on the strategy side of consulting, while others (such as the MBB), work on both, coming up with a strategy for the client and helping the client to implement the strategy.
What will your role be at such a firm?
The question arises, what will you, as an entry-level employee, (after under-grad or post-grad) do at a management consultancy. You will be hired as an analyst or an associate (titles differ across firms). At one point in time, you will be servicing a single client. You will be handling one portion of the larger problem that the client has hired your firm to solve. After the current project is completed, you will shift to a different team serving another client, typically in a different industry. You can expect on average 12-13 hours of work a day, 5 days a week.
What skills and capabilities do I need to work at such a firm?
To take up an entry-level job at a management consultancy, you do not require any specific technical knowledge. A large number of management consultancy firms are open to applicants from almost any educational background. What they look for in a candidate is problem-solving skills, the ability to break down a problem into smaller units, and to approach it in a logical and efficient manner. They want to see your analytical capabilities, your business acumen, and to a certain extent, your comfort with numbers. At the same time, you need to have good soft skills, including communication, working with and leading teams, the ability to meet deadlines, and the capacity for long work hours.
Why is it such a lucrative opportunity?
I could write a couple of articles on this topic itself! Very briefly:-
Exposure to multiple industries: As you move from one client to another, each client is potentially from a different industry. This allows you to have direct contact and experience with multiple industries over a period of time
Exposure to multiple functions: Not just the industry, but the function of the clients will vary from one client to another. Your first project could be with a manufacturing client. Your second could be with a client handling sales and marketing. While the third could be with a client working in the transportation segment
A very steep learning curve: Along with the above factors, the firm too will personally attempt to prioritize a diverse learning curve for you while allotting you your next project, which results in you having a very steep learning curve
Helps you to identify where you want to work in the future: All the exposure you’re getting across industries and functions can help you identify where your interest and passion lies
Interface with CXO level people: You will from time to time interact with CEOs, CFO, and other CXO or CXO -1 level employees of huge firms and MNCs.
Traveling: Several consultancies have a client-centric model, wherein you work out of the client's office. This will require you to fly to the city where the client is based on a weekly basis
Exit options: Referring to what one can do after working at a consulting firm. Read more below.
What are the exit options?
Several options and avenues open up after working at a top tier management consultancy firm. This job is often titled as a ‘launchpad’ to many other careers:
You can always continue and rise to the higher ranks within the firm (at times without an MBA as well)
Pathway to top B-schools in India and abroad (including Harvard, Stanford, IIMs, ISB, etc.)
Pathway to Private Equity and Venture Capitalist firms
Pathway to managerial positions in the industry (after gaining adequate experience in an industry, you can take up a job within that industry itself)
These are the most typical exit options picked up by people leaving such a firm. Apart from these, you can always pick up anything else in life as well. The experience you gain while working at such a firm will stay with you as you enter a large number of fields.
Stay tuned for more articles on the selection process and the preparation required to get into a management consultancy firm.
Further Reading: How to build a professional CV
Further Reading: How to crack your interviews
Further Reading: How to land an internship
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