What is management consulting & how to become a management consultant?

Management consultancy can be an extremely rewarding career, in terms of both job satisfaction and remuneration. According to figures from Indeed.com, the average consultancy salary in the US is US$83,408 per year. However, salaries can be considerably higher, with MBA graduates from Wharton’s MBA class of 2018 reporting a median salary of US$150,000 for consulting jobs.

However, whilst high salaries are a draw for aspiring consultants, they are only a minor element for choosing this career path. Consultancy suits people who thrive off variety, as days can be exciting and unpredictable – for example, you might be needed at client sites at the last minute, there’s a lot of travel, and you will meet a huge range of interesting people.

Whilst the tight deadlines and highly pressurized environment can be off-putting for some, it may enhance the experience for those with a consultant’s mindset. The steep learning curve of life as a junior consultant means you’ll be working with senior clients and given a high level of responsibility early on in your career.

Training and learning are part of the culture, with frequent opportunities for development. If you work at a non-specialized firm, you will also learn a lot about industries you may not have encountered before. The skills you develop in consulting, such as strategy, research, and communication are transferable should you decide to change career in the future.

As it is such a competitive industry to get into, you’ll likely have top-quality colleagues with a similar level of intelligence and way of thinking. Whilst the hours can be infamously long and anti-social, the flipside is you’ll develop close bonds with colleagues, and most consulting firms offer great perks such as company cars, free meals, sabbatical opportunities and gym memberships.

The growth of the consulting industry is closely linked with developments in the global economy, according to consultancy.uk. When the economy is booming, organizations have higher budgets and will spend more on consultants, however, the opposite is true in troubled economic times.

Although the industry faced a downturn in the wake of the 2007-2008 global financial crisis, it has been steadily rising since 2011, valued at US$251 billion globally in 2016. Whilst North America and EMEA (Europe, Middle East and Africa) hold the bulk of the market (40 and 41 percent respectively), Asia-Pacific is the region with the highest growth momentum.

Most consultants enter the field at graduate level, with a strong academic background. Top firms recruit hundreds of the best and brightest graduates onto their graduate schemes every year. Graduates will be referred to as ‘analysts’ and support senior consultants. Many schemes operate a rotation system, so you get to experience a range of practices and areas of consulting.

MBA graduates will enter at a higher level, like those entering another field with previous work experience. This is commonly referred to as ‘experience hire’ entry level roles. Having an MBA or management master’s degree will boost your chances of being hired as a consultant, but it’s still a very competitive job market.

Consultancy firms are known to be some of the most active recruiters at universities and are a good first stop on your consulting journey. Many big firms offer summer internships and ‘taster’ placements which can help get your foot in the door.

As with most competitive careers, a vital part of getting a job as a management consultant is networking. This is even more applicable in consulting where networking is an integral part of the role.

Most big consulting firms will have several events where interested students can network. These include office hours and corporate presentations, as well as general networking events. Office hours offer one on one time with recruiters, so it’s easier to differentiate yourself.

Information calls with members of the recruiting team are another way to showcase your skills and occur around the end of October/start of November. They’re an opportunity to highlight your skills as well as find out more about the firm.

Once you have networked your way to the interview stages at a big firm, there are some helpful pointers to remember to help you land a role. Even if you have no prior experience with consulting, it’s important to highlight skills that are relevant to the role, such as analytical skills and communication.

You are likely to be asked less about your experience and more about your ‘fit’ for the field, such as willingness to travel and take on long hours. It’s vital to show some of your personality in your interviews, as recruiters will want to know how well you will get on with others at the firm. Be yourself, and it should come naturally!

What is management consulting?

Management consulting is a professional service provided by specialised individuals or firms to help organisations improve their performance and solve specific business problems. These consultants, often referred to as management consultants or business consultants, work with clients to analyse their current business practices, identify areas for improvement, and recommend solutions to enhance efficiency, effectiveness, and overall performance.

What does a management consultant do?

Key aspects of management consulting include:

1. Problem-solving: Consultants are hired to address specific challenges or issues that a company may be facing. This could range from operational inefficiencies and strategic planning to organisational restructuring and technology implementation.

2. Expertise: Management consultants typically bring a high level of expertise in various business domains, such as strategy, finance, human resources, operations, and technology. They leverage their knowledge and experience to provide insights and recommendations.

3. Objective perspective: External consultants often bring an unbiased and fresh perspective to a company's problems. Their independence allows them to objectively assess situations and propose solutions without being influenced by internal politics or pre-existing beliefs.

4. Data analysis: Consultants use data-driven approaches to analyze business processes, market trends, and financial information. This helps them make informed recommendations and decisions based on empirical evidence.

5. Implementation support: Consultants not only provide recommendations but may also assist in implementing changes within an organisation. This could involve working closely with the client's staff, providing training, and ensuring the successful execution of proposed solutions.

6. Project management: Many consulting projects involve complex tasks and require effective project management. Consultants often play a key role in planning, executing, and monitoring projects to ensure they meet their objectives within specified timelines and budgets.

7. Continuous improvement: Management consultants often work towards fostering a culture of continuous improvement within organisations. They help companies adapt to changes in the business environment and stay competitive in their respective industries.

How do I become a management consultant?

Becoming a management consultant typically involves a combination of education, relevant work experience, and networking. Study a relevant undergraduate (and potentially also postgraduate degree), use internships to gain industry experience and focus on developing some of the key skills outlined below. 

Use networking events and online tools such as LinkedIn to develop a professional network and establish yourself within the industry.

What skills do I need to become a management consultant?

• Analytical Skills: Management consultants need strong analytical skills to analyze data, identify trends, and develop effective solutions for clients.

• Communication Skills: Effective communication is crucial in consulting. Develop your ability to articulate ideas clearly, both verbally and in writing, and tailor your communication to different audiences.

• Problem-solving Skills: Consultants are hired to solve complex business problems. Showcase your ability to approach challenges systematically and develop innovative solutions.

• Project Management Skills: As a consultant, you may be involved in managing projects. Familiarize yourself with project management methodologies and tools.

How much do management consultants make?

Compensation for management consultants can vary based on factors such as experience, education, location, the consulting firm's size and reputation, and the specific industry or sector they focus on. Salaries are often structured with a base salary, bonuses, and additional benefits. Entry-level consultants can expect to earn a base salary of US$60,000-90,000, with an annual bonus often ranging from 10-30 percent of base salary.

As you progress in your career, you can expect to earn up to US$120,000-180,000 as a senior manager or even US$150,000-250,000 as a partner.

In addition to base salaries and bonuses, management consultants may receive other benefits such as health insurance, retirement contributions, and performance-based incentives. 

Also, keep in mind that salary structures and compensation levels can change, so it's advisable to consult with industry professionals for the most up-to-date information on management consultant salaries.

What are some top management consulting firms?

Top-tier firms include McKinsey, Bain, and BCG. Consultants at these firms may potentially receive higher compensation than those at smaller or more boutique consulting firms.