Who Are The Consultants Blog


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Short presentation on how to think about the different consulting firms that recruit from leading business schools

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Who Are The Consultants Blog

  1. 1. Page 0<br />Who Are The Consultants?J-P Martins, Consulting Careers TeamSeptember 2009<br />Page 0<br />Page 0<br />
  2. 2. 1<br />Today’s agenda: Two main questions<br />Who are the consultants?<br />Which suit you best?<br />1<br />
  3. 3. 2<br />The consulting industry is big, and hard to navigate and research<br />$170-200 bn worldwide<br />BLT (consulting specialist executive search firm) list 370 firms in the UK alone<br />And this list misses some firms that I know and that hired this year<br />A handful of brand names dominate most people’s thoughts on the industry, and your aspirations…<br />
  4. 4. 3<br />The most useful way to segment firms is by fees and size<br />High<br />Global Elite<br />(‘Top Tier’)<br />Strategy Boutiques<br />Global Elite<br />(‘Top Tier’)<br />Strategy Boutiques<br />BCG<br />McKinsey<br />Mars & Co<br />Bain<br />Booz<br />PRTM<br />ATK<br />Diamond<br />Revenue per Consultant<br />ZS Associates<br />IBM<br />Atkins<br />Deloitte<br />Accenture<br />CapGemini<br />Diamond<br />Global ‘Full Service’<br />Specialists<br />Specialists<br />Low<br />10<br />100,000<br />Size of Firm (# consultants)<br />Source: ADD Resources<br />
  5. 5. 4<br />The most useful way to segment firms is by fees and size<br />High<br />Global Elite<br />(‘Top Tier’)<br />Strategy Boutiques<br />BCG<br />McKinsey<br />Mars & Co<br />Bain<br />Booz<br />PRTM<br />ATK<br />Diamond<br />Revenue per Consultant<br />ZS Associates<br />IBM<br />Atkins<br />Deloitte<br />Accenture<br />CapGemini<br />Diamond<br />Global ‘Full Service’<br />Specialists<br />Low<br />10<br />100,000<br />Size of Firm (# consultants)<br />Source: ADD Resources<br />
  6. 6. 5<br />‘Top Tier’ & <br />Big Boutiques<br />McKinsey, BCG, Bain, Booz & Co, Roland Berger, A T Kearney, Monitor, Marakon, LEK, OC&C, Parthenon Group<br />Generalists:<br /><ul><li>Across sectors
  7. 7. Strategy, M&A, PE, Operations, Processes, Organisation</li></ul>Global, Full Service<br />Accenture, Deloitte, IBM, PA Consulting<br />Part of much larger firms, leverage accounting, auditing, corporate finance, systems relationships<br />Functional & Sector<br />Specialists<br />Finance: Oliver Wyman, McKinsey Corporate Finance<br />IT: McKinsey BTO, Axon, <br />Sales and Marketing: ZS Associates, Wolff Olins<br />HR: Watson Wyatt, Hay, Towers Perrin<br />Specialise in a sector (eg FS, FMCG, transport, construction…) or function (eg finance, HR…)<br />‘Small’ Boutiques<br />e.g., Greenwich Associates, Mars & Co, <br />Very many firms, some quite small<br />Internal Consultants<br />e.g., Diageo, Reuters, Shell, Deutsche Post, Vodafone, Oracle <br />Often do the same work as consultants<br />Many different titles<br />All these segments are interested in recruiting from London Business School <br />
  8. 8. 6<br />Today’s agenda<br />Who are the consultants?<br />Which suit you best?<br />6<br />
  9. 9. 7<br />Who do you want to work for?(1 of 2)<br />Consultants: pre MBA vs. Aspirations<br />25% want to be consultants<br />24% of you already are<br />Note: data for MBA 2011 class only<br />
  10. 10. 8<br />Who do you want to work for?(2 of 2)<br />Which consulting firms – your preferred recruiters<br />Note: data for MBA2010 class<br />
  11. 11. 9<br />The old term ‘strategy consultants’ doesn’t describe what ‘Top Tier’ firms do<br />Corporate strategy<br />Corporate development<br />Business unit strategy<br />Functional strategy eg<br /><ul><li>Marketing
  12. 12. Product innovation/R&D
  13. 13. Maintenance</li></ul>Process/operational improvement<br />Organisation design<br />Post merger integration<br />Private equity<br /><ul><li>Pitches
  14. 14. Due diligence
  15. 15. Portfolio improvement</li></ul>But many other firms do this kind of work too<br /><ul><li>Boutiques
  16. 16. Sector specialists
  17. 17. Functional specialists
  18. 18. Global ‘full service’</li></li></ul><li>10<br />The ‘Top Tier’ firms have similar business models and products<br />Why They Look The Same<br />Similar people<br />Recruit highly selectively from top business schools<br />Partnerships<br />Rigid up or out, rapid progression to partner for a few<br />Blue chip clients<br /><ul><li>Eg FTSE 100
  19. 19. Leaders in their field</li></ul>Issue/hypothesis based workplanning<br />Data driven analytical approach<br />Slide driven communication<br />Moved from short term projects to long term relationships, many years ago now<br />Work on all aspects of management <br /><ul><li>Whatever matters most to the Chief executive and board</li></ul>Equally comfortable in implementation as ‘strategy’<br />‘Top Tier’ Firms<br />McKinsey<br />BCG<br />Bain<br />+/- Booz<br />+/- AT Kearney<br />
  20. 20. 11<br />Observed cultural differences between McKinsey, BCG and Bain<br />Influence<br />Generalist, Private equity focus<br />More specialised, including specialist hiring<br />McKinsey<br />Value<br />Bain<br />BCG<br />Generalist<br />Ideas<br />
  21. 21. 12<br />You can’t all get jobs in the ‘top tier’<br />Illustrative Top Tier Recruiter 2008-9 – London Business School hiring only<br />Applications<br />1st Round Interviews<br />2nd Round Interviews<br />Hires<br />350<br />92 (26%)<br />33 (9%)<br />10 (3%)<br />160<br />190<br />52<br />17<br />4<br />16<br />6<br />40<br />Blue = Spring (‘summer internship’) recruiting Red = Autumn (‘full time’) recruiting<br />
  22. 22. 13<br />Medium Firms (incl. ‘Top Tier’)<br />More focused on consulting than ‘Full Service’<br />Many famous brand names<br />Career building step<br />Prestige<br />Large Firms (‘Full Service’)<br />Systematic training<br />Many offices<br />Recruiting not as competitive<br />More specialised entry points<br />Scope for career change<br />Generalist ‘Strategy’ Firms<br />Higher price points demand innovation<br />Greater focus on bespoke approaches<br />Comparing types of consulting employer<br />Small Firms<br />Bigger fish in a smaller pool<br />Talent more visible<br />Greater breadth of work?<br />Recruitment less competitive<br />By size…<br />‘Specialists’ and ‘Full Service’ Firms<br />Lower prices mean they’re selling experience<br />More ‘formulaic’ approaches<br />By price point…<br />
  23. 23. 14<br />What matters to you?<br />Aspiring Consultants<br />Consultants<br />Quality of work and clients<br />Environment/culture<br />Clear, predictable career track<br />Personal development<br />Quality of workmates<br />Financial reward<br />Brand name, security<br />Partner prospects<br />Turning experience into consulting<br />Intellectual challenge<br />Source: ADD Resources<br />
  24. 24. 15<br />What matters to you?<br />‘Top Tier’<br />Boutiques<br />‘Full Service’<br />Quality of colleagues<br />Brand name impact<br />Earnings progression<br />International work<br />Type/level of work<br />Speed of promotion<br />Work/life balance<br />Job security<br />Ease of getting hired<br />Source: ADD Resources<br />
  25. 25. 16<br />Promotion track may also differ between firms<br />1 Bain, 2 McKinsey, 3 BCG, 4 Booz<br />Note: Timings approximate<br />16<br />
  26. 26. 17<br />Promotion track may also differ between firms<br />Slower in ‘Full Service’<br />Faster in Boutiques<br />6-9 years<br />1 Bain, 2 McKinsey, 3 BCG, 4 Booz<br />Note: Timings approximate<br />17<br />
  27. 27. 18<br />A few words on experience<br />Irrelevant<br />Valued<br />Balance Sought<br />Relevant<br />Specialist roles, generalist firms<br />Generalist roles, generalist firms<br />Non-Consulting<br />Experience<br />Generalist roles, generalist firms<br />Specialist roles, generalist firms<br />Specialist firms<br />Specialist firms<br />Entry level roles<br />Areas of weakness/ question marks in some areas<br />Higher level roles<br />(especially around sales ability outside ‘top tier’)<br />Entry level roles<br />Good quantitative/ problem solving experience<br />Good performer across other dimensions<br />Consulting Experience<br />
  28. 28. 19<br />Recap<br />I hope this has given you some ways to think about which firms to apply to<br />Don’t apply only to McKinsey, BCG and Bain<br />If you do apply to the top tier firms, have a backup strategy<br />Choose firms based on what drives you, your strengths, and research on the firms concerned<br />
  29. 29. 20<br />The London Business School Consulting Careers Team<br />Page 20<br />20<br />Who are we?<br />