Consulting, also refered to as management consulting, is a service provided by consulting firms to their clients, to help management at these companies solve complex issues that affect their business.
On a typical contract, a number of solutions will be proposed in a large report, which will include forecasts of KPIs over a future period for each scenario.
Management consultancy is considered to be amongst the most interesting, intellectually stimulating and potentially financially rewarding work available in the professional services market, and as a consequence is highly sought after by job seekers, many of whom come from an accounting background.
Competition for positions at consulting firms is fierce. You will have to show your passion for a career in the field, academic intelligence and knowledge of the industry (best acquired through work experience or an internship) to realistically be in with a chance of attracting an offer from the firms you choose to apply for.
Management consultancy firms vary in their specialities and are largely dependant on the quality and knowledge of the consultants who work there.
Consulting advice encompasses a wide variety of management issues that can be divided into the following categories:
All management consultancies have their own specialisms. Firms such as McKinsey & Company, Bain & Company and the Boston Consulting Group have traditionally based their strengths on strategy consulting and continue to be seen by many as the leaders in their field. Professional service firms including PricewaterhouseCoopers, Deloitte and KPMG have a larger breadth of consulting services, often covering all areas mentioned above. There are firms who specialise in technology consulting such as CapGemini and Accenture, firms that specialise in outsourcing consulting (also Cap Gemini) and firms who specialise in human resources consulting, such as Towers Perrin and Mercer Human Resources Consulting.
The difference between a consultancy firm and a professional services firm is becoming increasingly blurred. Nowadays it is common for large firms to provide several, or even all, consultancy specialisms. The UK's largest professional services firms with consulting arms include PricewaterhouseCoopers, Deloitte, KPMG and Ernst & Young.
Advisory contracts require a consulting or professional services firm to give advice but not to perform any material work for the company. For example, a company may have a financing problem, and will source the advice of a professional services firm (such as the Big 4) to provide a detailed list of possible solutions, forecasts and outcomes. A one-off fee will be charged for this advice, and the receiving company may choose to follow or discard the advice at its own risk.
Consultancy extends the role of advisory to actually performing the work on behalf of the client.
A common example in the financial services sector might be the following: if a company is performing an acquisition, a professional services firm may advise on the acquisition. If the decision to acquire goes ahead, the professional services firm may then be required to come in and perform the mechanics of the acquisition, which may include due diligence and legal services (these fall under the category of 'Transaction Services').
Generally speaking, there are restrictions to professional services firms on who can be advisory/consultancy clients, and usually a client cannot be both an audit client and a consultancy client as this violates in the independence of the auditor.
As graduates, Analysts / Associates are expected to go through a steep learning curve from the start after basic training. The role and responsibilities of Analysts / Associates will vary hugely depending on area speciality and company, but typically graduates will do interesting things such as conducting complex analysis, modelling and preparing client presentation materials. Graduates should also be prepared to do the 'less interesting' work such as documentation.
As the work is project driven, a consultant's working week could be spent in an exotic international client location or conversely, a dour business park, or simply in the consultancy's head office. A consultant must be flexible and willing to travel, although the extent to which this is necessary will also vary from firm to firm and speciality to speciality.
Starting salaries vary depending on which area of consulting you work in (e.g. Strategy / Operations / Technology) but are higher than most other non-investment bank graduate positions. Generaly, starting salaries in London are in the £30,000+ bracket, rising to £45,000 - £50,000 with 3 years experience, but this is also dependant on your performance. Consulting work is project driven with relatively challenging timelines - there might be times when you are expected to work long hours to meet deadlines.
Unlike Audit & Assurance or Tax, often no formal training (such as the ICAEW ACA) is provided as part of an employment contract offered by a consulting firm. You will however, almost certainly take part in numerous in house training courses to build skills relevant to your job, ranging from basic writing and presentation skills to area specific skills such as financial modelling or complex programming.
There are professional qualifications available to management consultants and prospective consultants, although the value of these qualifications is thought by some to be lower than that of qualifications available for Accountants and employees working in other professions. However this is largely a historical view and professional qualifications awarded by the IBC in addition to specialist skills are now sought after.
There are several qualifications available that can lead to becoming a management consultant; these include:
Management consulting is an extremely desirable career so many who start in this role choose to remain within it for the duration of their career, sometimes swapping larger firms for smaller consulting firms. A very common transition is also into higher strategic management of companies or joining a company board. Frequently, consultants can also go freelance and offer their business consultancy services for a substantial hourly fee.
Below is a list of consultancy firms. They are a mix of management consulting and technical consultancy, presented in approximate order of consulting work carried out.
If you would like to suggest other firms that you think should be included in this list, please add to the comments section, at the bottom of this page.
HR Consulting
For further information, see this article on Management Consulting.
Graduate applicants must achieve a 2.1 or above in any numerate discipline. They must also demonstrate an ability to achieve in extracurricular activities.
Suitable applicants will be contacted for a telephone interview to discuss their career aspirations with a Director from the company. The best applicants will then be invited for interview at either firm's Cambridge or London office.Most graduates without an MBA applying for Bain & Company will be applying for the Associate Consultant role. MBAs are hired at the Consultant level.
The application process for Bain graduate jobs is as follows:
Just wanted to update everyone - London [courtesy - IBD_Haunter]
Bain's graduate recruitment process is based almost entirely around case study questions. You will be given a number of different scenarios and then ask what you would do in that situation.
Bain provides some examples of case study questions for you to practice on their website. To reiterate their own words:The Boston Consulting Group is an international strategy and general management consulting firm with offices in 38 countries worldwide.
The company's areas of expertise include: branding, corporate development, deconstruction, globalisation, organisation, pricing, strategy, and technology and communications.
The primary industries that Boston Consulting Group serves are: consumer goods; energy and utilities; financial services; health care and private equity.
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Graduate level candidates should have excellent academic grades (including at least a 2:1 at degree level) to consider applying to BCG. Candidates will find a history of past internships at relevant firms and international study or work experience will be useful when making their application.
The application process for graduate jobs at Boston Consulting Group is as follows:
If you pass the initial online application, you should expect two rounds of interview comprised of case study questions and two to three interviews per round.
For the first stage interview your interviewers are most interested in finding out about you and who you are. Be prepared for competency based interview style questions asking you to give examples from your past.
Boston Consulting Group are keen to hire candidates who are enthusiastic to work for them specifically. Make sure you ask questions about the firm, and show high levels of interest in working for them.
Case study questions may address issues such as market sizing, or business issues involving creative strategy or sound business judgment.
The Boston Consulting Group website provides sample scenarios which may be helpful in your interview preparation.CRA International is a leading global consulting firm that offers economic, financial, and business management expertise to major law firms, industries, accounting firms, and governments around the world.
With proven skills in complex cases and exceptional strength in analytics, CRA consultants have provided astute guidance to clients in thousands of successful engagements. We offer litigation and regulatory support, business strategy and planning, market and demand forecasting, policy analysis, and risk management consulting.
Our success stems from the outstanding capabilities of our consultants, many of whom are recognized as experts in their respective fields; our close relationships with a select group of respected academic and industry experts; and from a corporate philosophy that stresses interdisciplinary collaboration and responsive service.
Founded in 1965, CRA has headquarters in Boston and 26 offices across North America, Europe, Asia Pacific, and the Middle East. www.crai.com
Hitachi Consulting is an international management and technology consulting firm with headquarters in Dallas, Texas. It was founded in 2000 as subsidiary of the Japanese Hitachi Group and currently employs approximately 2,000 people in the U.S., Japan, the UK, Spain, Portugal and Germany.
Hitachi Consulting stands in direct competition with consulting firms such as Accenture, BearingPoint, Deloitte or IBM Global Services and focuses on a wide variety of subjects and industries. The company offers solutions in corporate management, customer and channel, strategic technology and supply chain.
L.E.K Consulting is a consulting firm who focus on: Strategy, Finance, Marketing & Sales, Operations, Organisation and Transaction Services. The firm has 17 offices globally.
Half of LEK's consultants are promoted to Manager level and half of all Managers are promoted to Partner.The assessment process at LEK Consulting is:
The first round of interview is two 45-minute interviews with separate interviewers. Both interviews include case study questions. Other questions are a mix of analytical brain teaser questions and company/culture fit questions. The analytical questions will vary from basic mental arithmetic, to more complex case studies with maths.
Previous candidates have been asked:
You may also be asked brain teaser questions/analytical such as:
Previous candidates have also been asked the following case study questions:
For all case study questions your interviewer will be looking for you to describe the structure of the costs and revenues involved. They are looking to see how you work things out and if you go about things in a sensible manner. The accuracy of your figures is less important, although it is possible that after the initial cast study discussion your interviewer may give you specific numbers and expect you to do some basic, but more accurate calculations.
Company Fit
At least one interview will be with a third year associate, who will be interviewing you to check if you are someone they could work with.
Company fit is important at LEK. If your interviewers do not think you will fit in to the company for some reason, they will not take your application any further, no matter how good you are on paper.
Cases generally last between four and 16 weeks, although some can last longer. Associates work on two cases at any one time from their second year of employment onwards.
Your first year at LEK involves a lot of basic work and administrative tasks. However, intelligent and well-performing graduates are quickly given more interesting work to do.
LEK run a personal development programme for all graduate trainees. Trainees are taught about modelling and valuation amongst other things.
Trainees seem to advance at pretty much the same speed, unless you are outstandingly good or bad. Generally graduates leave after two to three years. Many move to LEK's clients and work for them.
The hours are long at LEK. As a graduate you will be contracted to 50 hours a week, but most tend to hit somewhere around 60. There can be extended periods of over 70 a week, though working at the weekends is quite rare in the first few years.
LEK's London office is based in Victoria. The firm moved here quite recently and the office is well-designed. Based in Victoria, the office is well connected in terms of transport, although it is not the most thriving area in terms of cafes and bars.
LEK do look after their staff and spend a lot of money on social activities, although these do not happen too frequently. The office is not fantastically social; people are here to work and they work hard.
LEK do not send many employees to work with clients. For this reason, there is a lot less travelling involved working at LEK than with other consultancy firms.
Employees salaries are reconsidered twice a year. Pay rises are usually 10 - 15% depending on an individual's performance.
There is also a company profit share in January each year. The profit share varies year by year depending on the performance of the company and is not guaranteed.
Now known as 'Marakon'
Marakon is a top-tier strategy consultancy and is a Charles River Associates company.
Marakon hires graduates each year to join the firms management consulting trainee scheme.
Candidates should have a high level 2.1 or first class degree in any discipline, from a top tier university. Evidence of high level grades at all levels of education is essential, as is evidence of experience and motivation for the industry.
Marakon run a professional development program. The firm offers two kinds of training: core training to build understanding of the principles and frameworks required to tackle complex business problems, and "skills-focused" training in the tools and techniques required to be an effective advisor.
Integration Week
Consultants are introduced to basic finance and accounting principles as well as selected skills required as a new consultant.
Consultant Development Program 1
This is a week-long global program designed to give an overview of Marakon's practice and an introduction to the major principles, tools and frameworks the firm uses to analyse business problems. During the week, consultants take part in a competitive case exercise with other employees from around the world.
Business Unit Strategy Development
Graduates study topics including understanding market economics and competitive position, strategy evaluation and strategy execution.
Financial Foundations
Within the first six months of joining Marakon, consultants will attend a financial foundations program, which provides a much deeper review of the financial principles underpinning the work you will be involved in at the firm. Topics include capital structure, corporate finance and valuation, and corporate goals and targets.
Consultant Development Program 2 (CDP2)
Your second major training session is delivered after a year at the firm. This program aims to draw all the elements of previous training together as new consultants make the transition from apprentices to skilled practitioners. The main topic of this is corporate strategy.The assessment process for graduate jobs at Marakon is:
The Marakon first round interview consists of two interviews. Each interview will be 30 minutes long.
Your HR interview will be a competency based interview where you will also be asked about your CV.
The fit interview involves various scenario based questions. You will be asked how you think you would react to certain situations, as well as how you have reacted to certain situations in the past.
The other interview will be competency based and involved a case study question. This will involve graphical analysis and basic mathematics. You will be asked to give a strategy for a firm.
Previous candidates have been asked the following questions:
The second round interview for Marakon is a four stage process:
This interview is with an associate consultant and will last about 30 minutes. You will be allowed to ask most of the questions and the interview will basically be a chance for the associate to figure out your personality and if you would make a good team fit.
This interview will be tailoured to you. It will last 30 - 45 minutes. All the questions will be developed and the style of the interview will be more converstional than anything else.
Questions previous candidates have been asked include:You will be given three case study questions. For each you will have 20 minutes to prepare and then 20 minutes to discuss your ideas and arguements. A different consultant will assess each case study, and your final case study will be assessed by two interviewers.
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One of the key skills Marakon are looking for is the ability to structure, in particular structuring your arguments. Be certain to structure your responses in both interviews and all the case studies. It is important to show you can think laterally and make links to different things you have been talking about, as well as being confident and coherent. |
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Marakon is committed to a work-life balance. Hours and projects are actively managed to ensure a sustainable work-life balance for consultants.
McKinsey term their graduate trainees "Business Associates". On a team Business Analysts take responsibility for a discrete part of the problem solving for each client engagement. They play a key role in data gathering, contribute to the team's final recommendations, and present their work to senior executives. They also have a voice in determining the team's style and pace of work.
After the training program, business analysts find many different ways to continue their personal and professional development. They often pursue advanced degrees or launch new careers in industry or with nonprofits. Many business analysts with MBAs and other advanced degrees return to McKinsey as associates.
McKinsey are interested in candidates with a minimum of a 2.1 degree from any discipline. The firm are looking for candidates who have a high degree of logical reasoning and the ability to structure a complex problem. You must have basic numerical competence, as well as a tolerance for ambiguity. Candidates should have an interest in making a difference to those around them through personal assertiveness and the ability to empathise and to communicate openly. Candidates should also demonstrate: team working skills, the ability and willingness to inspire others and confidence (without arrogance).
McKinsey require both local language and English language fluency for all positions in countries where English is not the native language.
Almost all graduates applying to McKinsey will be applying for a Business Analyst position. Those with PhDs apply for a Junior Associate position.
McKinsey refer to their graduate trainees as Business Analysts, and provide set training to all. Business Analysts join the firm for an initial two years and work on a variety of different studies involving many different industries/functions.
There is continuous training both formal and informal.
The problem solving test is an hour long and has 26 multiple choice questions.
It is a test of problem solving ability, data interpretation and basic maths. Candidates will be provided with some information in the form of charts/tables/graphs and asked questions based upon this data.
You will be tested on:The first round typically involve 2 interviews at around an hour each. They are one on one with a consultant and involve a mixture of personal experience questions and a case study.
Typical questions you can reasonably expect at the first interview include:You can expect the interviewer to interrupt you every few sentences and ask how you settled on the various decisions and conclusions that you reached.
If you have already passed the first numerical test and reached this stage you should not have any problems here.
If you have passed the first round assessment, you will be invited back for the second round of interviews
This consists of:The second round interviews are similar to the first round interviews but you will meet with more senior consultants such as partners.
You will be given a scenario relating to a hypothetical client (played by your interviewer/assessor) and asked to assume the role of a business adviser. You will be assessed on the quality of your proposed actions and discussion with 'the client', who may be obstinate or difficult to reason with. The role play tests how candidates might approach difficult situations that frequently occur in consulting.
Specifically you may be asked to assume the role of a business adviser on a team at a tyre factory currently conducting a customer loyalty/retention study. You may need to manage the expectations of the client and discuss how they might better organise their survey.
Mercer's application process is clear and thorough. Our aim is to ensure that you get a real idea of what working at Mercer is like and that you get exposure to different members of our business. So not only are we ensuring that you are right for us, but you get the opportunity to decide if an open and encouraging workplace like Mercer is right for you. Please see below for a summary of the different stages of our process that you will complete:
An online application form - you will also need to attach your CV -which will be screened by a member of the graduate recruitment team.
A telephone interview - with a member of the graduate recruitment team.
The telephone interview can last for up to half an hour. The areas that will be covered are:
-Your academic history and CV
-Knowledge of Mercer, the role and the industry
-A few general competency based questions.
An assessment centre - usually held in the location you have applied to work in and you will meet both graduate recruitment and members of the business line that you have applied to. The day is designed to simulate a real day in the office and consists of:
-1 or 2 interviews
-Group task
-Presentation (topic given on the day)
-Verbal reasoning test
-Written tasks
To become an Actuary you need to complete a total of 15 exams. Core topics include statistical modelling, economics, financial and actuarial mathematics, together with the established areas of actuarial work in investment, finance and asset management, life assurance, general insurance, pensions and employee benefits. Exemptions from some examinations are possible depending on your degree course. It usually takes approximately 4.5 years to complete.
To become a charterholder of the CFA you’ll need to complete 3 exams covering topic areas including; economics, financial reporting, equity Investments and more. It takes approximately 3 years to become a CFA charterholder.All Asset Transitions Coordinators complete the Investment Management Certificate and then elect to study towards becoming either an Actuary or a Chartered Financial Analyst [CFA] charterholder.
To become an Actuary you need to complete a total of 15 exams. Core topics include statistical modelling, economics, financial and actuarial mathematics, together with the established areas of actuarial work in investment, finance and asset management, life assurance, general insurance, pensions and employee benefits. Exemptions from some examinations are possible depending on your degree course. On average it takes approximately 4.5 years to qualify.Following the online application (see Mercer application process) the graduate interview process for Mercer is as follows:
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The Mercer graduate telephone interview will be competency based. You will also be asked about your education, the industry that Mercer operates in and about your service line and what you think you will be doing in your first year in that role. You will be asked about your knowledge of the professional examinations, your future plans and planned career.
The telephone interview lasts approximately 25 minutes. The interview is highly structured and it is likely your interviewer will be asking questions from a pre-written selection and writing your answers as you give them. Be prepared to accommodate for your interviewer if they need to take some time to note down your responses.
-Explain your A level choices.
-Talk about a particular area within your degree you like and why.
-Talk about a particular area within your degree you don't like or have difficulty with.
-Talk about other firms that you have applied for and progress with them.
-Talk about what Mercer does and why you applied there.
-Talk about key issues in the industry.
-Explain your understanding of the role.
-Qualification question (so for investment consulting actuary or CFA?, how long does it take to complete?)
-Talk about a time when you have had to explain a difficult concept to someone.
-Talk about a time when you analysed data to make recommendations.
-Time to ask questions.
Expect no guidance through the questions- they ask the question and then they just listen. Think hard about how you structure your question and what they mean by/ want from the question.
Spectrum Value Partners is a management consultancy that provides strategy consulting services to media and telecoms firms worldwide. The company was founded in 1994 as Spectrum Strategy Consultants.
In February 2007 Spectrum Strategy Consultants merged with the Value Partners management consulting group, the management and IT consulting group, whose headquarters are in Milan.
Since then, the firm has been known as Spectrum Value Partners, and is officially part of the Value Partners group.
Spectrum Value Partners has offices in: London, Hong Kong, Singapore and Sydney.
London-based consultants work across all Spectrum Value Partner’s sectors and with the firm's clients. Major UK media clients include broadcasters such as the BBC and ITV, publishers such as the Guardian Media Group and sports organisations such as the FA Premier League.
Spectrum Value Partners work with UK telecoms players including mobile operators such as Vodafone and fixed operators like BT. The London office also works with regulators such as Ofcom and public sectors organisations such as the Department for Culture, Media and Sport.
To join Spectrum Value Partners (SVP) you will need to have a high quality degree or equivalent and/or up to two years work experience. The firm look for candidates with good analytical/qualitative skills who are also creative, adaptable and flexible.
The firm also put an emphasis on strong interpersonal and communication skills, team working, business acumen, an international outlook and an enthusiasm for SVP's specialist work sectors.
Fluent English is also essential and other foreign languages are seen as an advantage over other candidates.Candidates applying to Spectrum Value Partners undergo a two stage recruitment process, detailed below.
Written Exercise
Examples of topics for the written exercise:Presentation
Candidates must present one topic chosen from a list. You are given 30 minutes to prepare, follwed by 45 minutes in which to present and answer questions about the case study.
Examples of topics:|
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Tefen UK Ltd is a wholly owned subsidiary of Tefen. Tefen UK works in a variety of industries including life sciences, aviation & transportation, energy & utilities, general manufacturing and financial services.
Tefen UK has permanent offices in London.During this exercise it is critical that you show you can work as part of a team (see teamwork) and offer intelligent input throughout the debate. You should also try to lead the debate (see leadership) and be prepared to argue in favour of your ideas, or defend yourself, if criticsed by another candidate.
In the 2009/10 recruitment cycle, it was a ranking exercise.
Written Test
Report writing based on given information.
Competency Based Interview
The competency interview is similar to the first round competency interview, only longer.
Problem Solving Interview
The most difficult sections of the assessment day are thewritten exercise and problem solving interview. For both it is critical for candidates to structure their responses, to show a clear thought process and analytical mind.