Consulting Uncovered: What Is It About?
Curious about what consulting entails? 🤔 Most people think it’s simply giving advice—but it’s more than that. The context and experiences also influence how someone views the field. For instance, an independent consultant may have a different day-to-day experience than a professional working at a large consulting firm. Clients also often have their unique expectations and definitions of a consultant's role.
So, you'll need to have a clear view of the industry if you want to build a successful consulting career. In this article, we'll provide a comprehensive overview of the consulting industry. We’ll cover areas of consulting, what consultants do, the top firms, salary expectations, and how to start your consulting career. Read on to get the clarity and insight you need to succeed in this exciting and rewarding profession. 🔍
Table of Contents
What Is Consulting?
As we mentioned earlier, giving advice is just a piece of the cake. Consulting is a professional service industry where experts (consultants) offer specialized advice and solutions to businesses facing various challenges.
Think of consultants as business doctors. Just as a doctor diagnoses and treats illnesses, consultants identify an organization’s problems, prescribes solutions, and assist in implementing changes. So, the consulting services market is crucial in building stronger companies that achieve their goals.
While the consultant's work often happens behind the scenes, the value of the services is evident in the expansion and market size. The global management consulting industry is worth approximately 1.8 trillion U.S. dollars.
Which Consulting Areas Are There?
Management consulting is probably the most recognized sector. However, consulting services cover other areas to address the various needs of businesses and organizations.
Here are the primary consulting areas:
- Boutique/Specialist Consulting: Focuses on niche markets or specific industries to sort the unique client needs, for instance sustainability consulting or healthcare consulting.
- Compliance Consulting: Helps organizations adhere to regulatory requirements across various industries.
- Financial Consulting: Provides guidance on financial management, investment strategies, risk assessment, tax issues, and corporate finance.
- Human Resources (HR) Consulting: Provides services related to talent management, organizational change, compensation strategies, and HR technology.
- IT/Technology Consulting: Involves advising on implementation of new technologies or optimizing existing systems.
- Management Consulting: Focuses on various aspects of a business including strategy and operations.
- Marketing Consulting: Includes roles like SEO consulting, brand consulting, and social media strategy development.
- Operations Consulting: Aims to enhance productivity while reducing costs in various departments.
- Strategy Consulting: Involves advising on long-term strategic planning including high-level decisions like market entry, product profitability, and mergers and acquisitions.
What Does a Consultant Typically Do?
Consultants are hired because of their knowledge, skills, and experience. But they don't work alone. They collaborate with clients to identify issues, analyze data, and develop strategies or action plans. In some cases, consultants also help clients implement the recommended fixes and provide ongoing guidance. Therefore, the day-to-day work of a consultant can be diverse depending on the consulting firm they work for, clients, and project requirements.
But in general, consultants solve complex business problems using their expertise and knowledge. These challenges might include cutting costs, growing sales, or evaluating a new market the client is considering entering. This requires a mix of analytical, strategic, and interpersonal skills.
What Are the Top Consulting Firms?
Want to know which consulting companies would be best for your consulting career path? Well, these firms differ in career progression, future business outlook, work culture, size, philosophy, compensation, and other factors. All these matter, and can be used to categorize the companies. But here we'll look at the top consulting firms in terms of prestige.
For a comprehensive overview of the top consulting firms in your region, feel free to check out the following articles:
👉 Top Consulting Firms
👉 Top Consulting Firms in the US
👉 Top Consulting Firms in the UK
👉 Top Consulting Firms in Germany
👉 Top Consulting Firms in New York City
👉 Consulting Firms Middle East
👉 Management Consulting Firms in Singapore
MBB Firms
These are the most prestigious consulting firms, also known as the Big Three. They are:
Their core services are strategy consulting but they offer broad services as well. They’re known for attracting top graduates and solving complex business problems for top-tier clients.
We have some additional resources on PrepLounge about the MBB firms, check them out:
👉 The Ultimate Guide to MBB: McKinsey, BCG, and Bain
👉 No BS, Evidence-Based System to Get MBB Offers
👉 MBB Hiring Hacks
Big Four Consulting Firms
The "Big Four" consulting firms are the largest professional services networks in the world, offering various services including auditing, advisory, tax, and legal advice. While not quite at the same level as the MBB firms, the Big Four are highly respected and offer excellent career opportunities. The Big 4 consulting firms are:
Our extra content on the Big 4 might interest you:
👉 What Are the Differences Between the Big 4: KPMG, PwC, EY, Deloitte?
👉 What's the Difference Between MBB and the Big Four?
Tier 2 Consulting Firms
These consulting firms are recognized for their global reach and expertise. But they do not match the prestige of MBB or the Big Four. This makes them valuable alternatives for specialized expertise in the consulting field.
Tier 2 consulting firms include:
👉 A Comprehensive Overview of Well-Known Tier 2 Consulting Firms
What Salary Can You Expect in Consulting?
Consulting is one of the highest-paying professions, making the salary a major incentive for many to pursue a career in this field. But how much can you actually earn if you choose to build a career in consulting? Below, we’ll take a closer look at the salary of consultants, which can vary depending on several factors.
In the United States, the average total pay of a consultant is $121,645 per year. You can earn higher or lower than this amount due to factors like experience, firm type, location, and additional pay.
Find out more about salaries in consulting here:
👉 Consulting Salaries Worldwide
👉 Consulting Salaries in the United States
👉 Consulting Salaries in the United Kingdom
👉 Consulting Salaries in Canada
👉 Consulting Salaries in DACH
👉 Consulting Salaries in France
👉 Consulting Salaries in Australia
👉 Consulting Salaries in Singapore
👉 MBB Consulting Salary
How Can You Start Your Career in Consulting?
To start a career in consulting, you need to undergo a demanding recruitment process that includes case interviews and personal fit interviews. Case interviews help interviewers determine your analytical skills through problem-solving scenarios, while fit interviews show your career motivations and cultural alignment with the firm.
To ace the interview process, you must prepare thoroughly and develop a strong skill set and qualifications. Here's an overview of how to increase your chances of success in the recruitment processes of the top consulting firms.
Practice Consulting Math and Mental Math
Math is critical in the consulting services sector. So, build on your analytical skills by practicing basic calculations. Focus on improving your speed and accuracy with percentages, ratios, and basic arithmetic. Also try using mental math techniques to solve problems quickly without a calculator. You should also develop skills in estimation to make quick approximations that can guide decision-making during interviews.
👉 Try our Mental Math Tool and bring your math skills to the next level!
Build Chart-Reading Skills
Your chart reading skills will come in handy when making data presentations. Therefore, familiarize yourself with common chart types like bar charts, line graphs, and pie charts. You should also be able to analyze data effectively and summarize findings clearly.
👉 Train your logical reasoning with our Drills!
Prepare for Fit Interviews
Preparing for fit interviews in consulting involves developing compelling stories that highlight your consulting-fit qualities. Focus on three essential attributes: leadership, problem-solving, and achieving mentality. Each story should illustrate how you embody these traits in real situations.
👉 At this point, we recommend our article about the STAR-Method
Research the consulting firm's culture and values. Align your stories with their expectations, demonstrating how your experiences resonate with their ethos.
Practice Case Interviews with Peers
Case interviews are a crucial part of consulting interviews. They come in two main formats: interviewer-led and candidate-led cases.
In interviewer-led cases, the interviewer guides the discussion. They present specific questions and direct the flow of the case. This way, you can focus on answering questions rather than determining the case's direction.
On the other hand, candidate-led cases require candidates to take charge. You'll structure the problem and determine the investigative path. This format assesses your problem-solving skills and strategic thinking.
Practice enough cases in both formats with peers. These could be your classmates or people you're seeking the same career path with. You can find many potential case partners on our meeting board.
Work with a Case Interview Coach
If you want to impress your interviewers at top consulting firms, consider working with an expert. Practicing with peers is great, but a case interview coach will give you thorough sessions similar to the real interviews. They'll also provide more helpful and professional feedback that can help you work on your weaknesses early on.
👉 Check out our top coaches with consulting experience! With personalized plans and approaches, they will help you prepare for your case interview in consulting.
Key Takeaways
- Consulting involves providing expert advice and solutions to businesses facing various challenges.
- There are multiple consulting areas, including management, financial, HR, IT, and strategy consulting.
- Top consulting firms include the MBB (McKinsey, Bain, BCG), Big Four (Deloitte, EY, KPMG, PwC), and Tier 2 firms.
- The average total pay for a consultant in the US is around $121,645 per year, varying based on factors like experience and firm type.
- Starting a consulting career requires strong analytical skills, chart-reading abilities, and preparation for both case and fit interviews.
- Practicing case interviews, developing math skills, and working with a coach can improve chances of success in consulting interviews.
Continue to Learn
Top Firms to Start Your Career in Consulting
Learn more about the top consulting firms to work for in 2024!
Case Interview: The Ultimate Consulting Guide (2024)
Find out what a case interview is and how you can prepare best for your dream consulting job.
Case Interview Coaching: How to Make the Most out of Your Coaching
Why case interview coaching is important and how you can make the most out of your coaching sessions
