Consulting    Career Overview
    Requirements
    Job Outlook
    Career Tracks
    Compensation


Career OverviewInthe world of business, management consultants are jacks-of-all-trades.Working through consulting firms or as independent contractors, theyadvise corporations and other organizations regarding an infinite arrayof issues related to business strategy—from reengineering toe-commerce, change management to systems integration. Frombillion-dollar mergers and acquisitions to corporate reorganizations inwhich thousands of jobs are at stake, they are the directors behind thescenes of nearly every major event in the marketplace.

A careerin consulting can encompass a wide variety of industries. One word ofclarification: “Consulting” is a big, one-size-fits-all term thatincludes virtually any form of advice-giving. Pretty much anyone with aspecialty in a field can offer consulting service; to keep this profilespecific, we’ve focused on management consulting, a broad category inits own right. Often called strategy consulting, this segment of the industry includes firms that specialize in providing advice about strategic and core operational issues.

Mostmanagement consultants hold salaried positions at firms that cater to aclientele of mostly large corporations. They are assigned on a projectbasis to their firm's clients, who are billed by the hour for theirservices. Depending on the client's needs and the firm's functionalspecialty (or core competency, as it's often called), consultantsconduct objective research and analysis on behalf of their client, andmake recommendations based on their findings. Ultimately, managementconsultants take on the responsibility of improving their clients’businesses by effecting change through their recommendations.

Althoughsome of the highest-profile firms populate this segment, they’re notthe only ones doing consulting. Thousands of other organizations andindividuals call themselves consultants, make money by selling theiradvisory services, and offer plenty of opportunities for employment. Ifyou like the idea of giving advice to other businesses, and you have aparticular interest in computers, human resources, corporatecommunications, mobile communications, health care, financial services,real estate, e-commerce, or some other specialized field, there’s agood chance you can find a position with an organization doingprecisely that.

What You'll Do
Research and analysisare the main tools of the trade for management consultants. Theyanalyze a business problem from various angles by conducting researchand forming and testing hypotheses. Research may consist of collectingraw data from internal sources—such as the client’s computers oremployees—and external sources, such as trade associations orgovernment agencies. Consultants get some of their most valuable datafrom surveys and market studies that they devise and implementthemselves. The data must then be analyzed in relation to the client’sorganization, operations, customers, and competitors to locatepotential areas for improvement and form solutions. These solutions arethen recommended to the client and—hopefully—implemented. (Sometimesconvincing a client to accept a consultant’s recommendations can be themost difficult aspect of the job, and there is always a chance that theclient will choose not to accept the consultant’s recommendation atall.)

Consultants often must travel to where their clients arelocated, sometimes spending days—even weeks—conducting research orimplementing solutions. Long hours are common. But the pay is great,not to mention the bonuses.

Who Does Well
For thosewho enjoy problem solving and thinking about business strategy,consulting can be a very fulfilling career as well as an excellentjumping-off point for a management career or a future as anentrepreneur. On the flip side, frequent travel and long hours can makea consultant's schedule very demanding.

While consulting isgreat for people who like variety in their work, it is not for thoseallergic to structure and hierarchy. The large and elite firms tend tohave a culture that mirrors that of their corporate clients, completewith a steep career ladder: Only a select few make it to partner-level,and that's with an MBA and 6 to 8 years at the firm.


RequirementsAlthoughthe competition at top firms is intense, the qualities that recruiterslook for are similar across the board. Besides outstanding academicrecords, firms want people who are problem solvers, creative thinkers,good communicators, and who have a keen understanding of and interestin business.

Top candidates will also have previous experiencein the business world (consulting internships are impressive but notrequired) as well as a record of extracurricular achievement. Firmsspecializing in IT consulting or e-business may require technicalskills and experience.

Candidates with experience in industryare much sought after, particularly by firms that have industrypractices that correspond to candidates' backgrounds. Several firmshold specialized information sessions for experienced candidates aswell as PhDs and JDs. Consult firms' websites directly or contactfirms' human resources departments or local graduate schools forschedules and eligibility.

In the interview, most recruiterspay close attention to a candidate’s experience and background.According to insiders, most consulting interviewers are looking for thefollowing:

• High energy and enthusiasm
• Team orientation
• Integrity
• Excitement about consulting
• Knowledge about what makes the interviewing firm different
• Success on the airplane test—do you want to sit next to this person on a long overseas flight?
• Interpersonal skills
• Industry experience

Finally, all management consulting hopefuls must clear the dreaded case-interview hurdle to land a consulting position.


Job OutlookAfterseveral down years, firms began recruiting again in 2004. The economicrecovery kicked in around August to September 2003, and is expected todrive single-digit growth for the consulting industry through 2006. “Ithink [2004] is a year of renewed growth for the consulting industry,which means a period of renewed growth for recruiting as well,” oneinsider says. Firms are reporting more contract wins and utilizationrates well above the norm. “The outlook is positive,” another insidersays. “We see a movement upward in the number of hiring. We’re seeing alot more deals, and our capacity is at the highest mark that it’s beenin a couple of years. The management team absolutely thinks the workwill continue.”

The growth that appears to have begun won’tmirror that of the go-go 1990s. “I don’t think we’ll see the spikinggrowth that we saw in the late ’90s,” says an insider. “We movedthrough the early 2000s on cost reduction. Now the focus is on growthof the bottom line. The focus isn’t so much on how fast I can grow mytop line or how I can cut my costs, but how can I improve myproductivity. I think those initiatives are going to drive theopportunities for growth in the consulting industry.”

As aconsequence, firms are looking for more experience in those they hire.“For the pre-MBA experience, it would be advantageous to make surethey’re getting some serious, substantial experience—industryexperience for the type of client engagements they want to work inpost-MBA,” an insider says. “Some MBAs will look at the summerassociate program as an opportunity to try something completelydifferent. But if they’re trying something for variety, and they wantto work in a post-MBA position in a field different than their summerposition, they’re putting themselves at a disadvantage.”


Career TracksUndergraduates
Undergraduatesgenerally join a consulting firm as analysts, although their titlesvary. The work itself—as well as the hours—can be quite demanding. Itoften includes field research, data analysis, customer and competitorinterviews, and client meetings. In IT, analysts might do heavy-dutyprogramming. Traditionally, the analyst program lasts 2 or 3 years,after which you’re encouraged to go to business school. However, thissystem has been changing over the past several years. Firms haveincreasingly begun to promote analysts into positions they hire MBAsinto or else into an interim role between the undergraduate and MBAposition. If you choose to go to business school, many firms will payyour tuition, provided you return to the firm when you’re done.

MBAs
Consultingfirms hire MBAs and other postgraduates right out of school or fromindustry. Most new MBA hires will come into a firm as associates; after2 or 3 years they’ll move to the next level, where they’ll manage caseteams. After managing projects for a couple of years, consultants maybe promoted to principal, whereupon the focus shifts to more intensiveclient work and the selling of services. Finally, after 6 to 8 yearswith a firm, a consultant might be promoted to partner. The benefits ofpartnership are big increases in salary and responsibility. The keyfunction of partners at most firms is to cultivate clients and sellthem new business.