Management Consulting
Free Downloadable Consulting Recruiting Prep Materials
Consulting…my current chosen profession and without a doubt where a lot of my jokes and perspective come from. Since starting Sitreps2Steercos I have observed a remarkable increase in queries from transitioning veterans about consulting. I attribute this partly to me talking about my own line of work and the lifestyle that comes with it. When I was first getting out of the military I had no idea what Consulting was. I knew that Deloitte existed and that was about it. From my own personal experience I believe that is a deep rooted misunderstanding about the type of work that Consultants do along with a lot of confusion on how you would even get into such a job. Lately, with the rise of Mayor Pete Buttigieg as a more prominent national political figure, more attention was paid to his previous role as a consultant with the legendary firm McKinsey. Even in the media “Consulting” has become a code word for some sort of svengali Rasputin figure that whispers evil things (like layoffs or baggage fees) into the ears of CEO’s. (Editors note - The below article is generalized so most laypeople can understand it. Please understand that this is not an inclusive article that captures the breadth and depth of what consulting firms do and how they are organized and who they employ. I withdrew a lot of detail that is unnecessary and confusing.)
What Is Consulting
At it’s core, Consulting falls into a category of white collar work known as “professional services”. Essentially, individuals who work in professional services deliver some sort of knowledge or expertise as opposed to delivering a hard widget or product. Think buying professional advice and perspective rather than buying a car. A non-inclusive list of common careers in professional services includes Consulting, Law, Audit, Tax, Lobbying and Wealth Management.
The youtube video below is a great example of what consulting does in a very general sense.
You will hear this from almost every consultant so I might as well repeat it. Management Consultants bring specialized expertise to tough and/or complex business problems. Often these business problems are strategic in nature and high profile. These sort of problems can include business mergers, market sizing, pricing strategies, IPO’s, supply chain improvement, loyalty program design, ERP implementations, IT improvement, fixed cost cutting. You name it and Consultants do it.
For example, businesses often run very lean in terms of both headcount and what sort of work that headcount does. Employee’s usually do not have much slack in their day to be focused on other large important projects outside of their job. When a large strategic opportunity like a merger comes up, paralysis can set into an organization on even where or when to begin. Consultants are brought in to essentially help the company get through this tough change.
This work can take many different kinds of forms. The one critical thing to note is that the work ranges from being simple (taking notes, building slides to describe processes) or so complex it will would your head spin (market sizing, pricing models, SKU rationalization, complex ERP implementations, financial modeling)
General Organization of a Consulting Firm
Consulting firms are much different from other traditional corporate organizations. For starters, some of them are private limited liability partnerships (LLP’s) and some are large public entities. The private firms can be more akin to law firms with partners protecting and nurturing their own P&L’s. While larger more public firms will still have partners advancing their P&L but the ultimate driver of strategic decisions is the stock price.
Generally you can break firms into three different types
Full Service Firms - This are usually the very biggest Consulting firms in the world with the widest and most tightly integrated menu of services for clients. Their broad services would include audit, tax, management consulting and strategic consulting. Think Deloitte, PwC, KPMG, EY (also known as the Big 4). What is unique about these firms is that they are the sole auditors for some of the biggest companies in the world. This gives me deep client relationships that they routinely leverage to sell more work. This also means that they are perpetually having conflicts of interest. This can restrict their ability to deliver services to clients and even procure products if it violates the “independence” of the firm. These firms are MACHINES when it comes to overall administration, rules, expensing, travel, promotions, rankings etc. In many ways it can feel like the Army with the bureaucracy. Make no mistake though, these are tough firms to get into. But still not as tough as….
Strategy Firms - When you see the acronym MBB they are referring to McKinsey, Bain and BCG. These are the most elite consulting firms in the world bar none. MBA’s routinely throw themselves at the wall over and over trying to make an inroad into one of these firms. These firms are smaller than the Big4 firms referred to above. They generally advise executives on key strategic moves and command very high fees. The work is very demanding at the junior level and the turnover is high. Because these firms are often smaller they can skip a lot of the independence concerns that bigger firms have since they do not audit anyone.
Boutique/Specialized/Government Consulting firms - These are the more specialized firms out there. This includes business restructuring firms like Alix Partners. Tech firms like CapGemini, Internal Consulting at Companies and even federal consulting from Booz Allen, Deloitte, Accenture etc. All very good work that is high paying and prestigious. These firms can be hard to get into unless you have a specific skill set or are more experienced.
Rank and Compensation Structure of a Consulting Firm
Partner - One of many owners of the firm (if private) or has a huge stock comp (if public). Typical tenure is 10-15 years. Maintains relationships with clients and sells work. Final quality control/perspective on slide decks, diligence reports, offers strategic guidance, fees, margin, pricing and staffing mix. Will usually have many projects going on at once. Often has the final say in hiring decisions and strategic investments. Manages their own P&L and can fucking ruin your life.
Director/Senior Manager - “Partners in waiting” or whatever bullshit your firm says to keep Directors grinding. This is actually a really important position as these people are the eyes and ears of Partners on the ground. They are directly responsible for project/engagement success and often have enough experience to guide clients to the correct solution with minimal Partner oversight. They help ensure project admin/economics/quality control/staffing are within the firms guidelines. They also do informational interviews, in person interviews and make hiring recommendations to HR. Typical tenure is about 5-8 years.
Manager/Case Team Leader/Engagement Manager - This is the first formal leadership role you would assume in Consulting. Managers are responsible for workstream assignment, day to day project leadership, running meetings, nitty gritty staffing, admin and project economic tasks, along with quality control of projects. They are usually responsible for one or more senior associates/analysts. Typical tenure is about 3-5 years.
Senior Associate/Senior Consultant/Consultant - The entry point for a typical MBA graduate or military officer. These are actually leadership roles depending on the firm and group. Typically, they involve owning a workstream, building slides, performing analysis, running meetings, driving change and working directly with the client and his/her minions. MBA graduates are expected to be mature capable leaders who can operate on their own and be mentally agile. It is a tough role and the turnover is high as the people in these roles become very attractive to corporate employers. Typical tenure is 2-3 years.
Analyst/Associate/Junior Consultant - The most junior (minus an intern) of all the operational roles in Consulting. Typical tenure is 0-3 years with exits to corporate roles, MBA’s or promotion to Senior Associate. These employees come straight from undergrad. Often they have to perform one or more internships to land a job. The age range for this group of employees is young, often 22-25. They can become quite valuable and well skilled towards the end of their analyst time.
Management Consultant Compensation
BASE SALARIES
Analyst/Associate Consultant (Undergraduate entry-level, 1st Year): $55K-75K
Associate/Consultant (MBA and other advanced degrees or direct promote, 1st Year): $110K-140K
Manager/Engagement Manager: $150K-210K
Principal/Senior Manager: $200K-250K
Vice President/Partner: $250K-400K
Senior Partner/Director: $300K-600K
It is also worth noting that across the board, salaries increase marginally within titles, and post-MBA, salaries increase marginally across titles. For example, a 2nd-year analyst base salary is approximately 5-15% more than a 1st-year analyst at most firms. Likewise, the high end of the Associate salary is close to the low end of the Manager/Engagement Manager salary.
Note: Base salary data excludes health insurance, 401K contributions, sign-on bonuses and relocation packages (all of which impact the result).
FULL-YEAR BONUS
A full-year bonus at most firms depends on the consultant’s individual performance and the overall performance of the firm. The higher a Consultant’s position, the more the Consultant’s bonus is aligned to the overall firm performance. Bonuses therefore vary widely from year to year. Partners who sell large projects to clients can often receive large, multi-million dollar bonuses.
Analyst/Associate Consultant (Undergraduate entry level, 1st Year): $10K-20K
Associate/Consultant (MBA and other advanced degrees or direct promote, 1st Year): $15K-60K
Manager/Engagement Manager: $40K-120K
Principal/Senior Manager: $75K-150K
Vice President/Partner: $250K-$1M
Senior Partner/Director: $500K-$2M+
Note that these figures also include signing bonuses—for some firms, part of the bonus is paid up-front upon the signing of the offer. Also, this figure includes expected compensation available at firms like Bain & Co. for Pay for Performance (PFP) and Measurable Business Results (MBRs) schemes, in which Consultants derive some of their income from partial/full equity (or quasi-equity) payment, or from tangible value added to clients during the year (for example, cost savings associated with a post-merger integration project). The trend for some of the compensation to be derived from these types of performance and equity-based measures began in the late 1990s with the dot-com boom, as Consulting companies were struggling to retain their best employees in the face of increased competition from start-up Internet companies. These compensation schemes continue today in many firms.
For profit-sharing programs, a certain percentage of a Consultant’s base compensation is applied to shares in the profit sharing pool. These shares take time to become fully vested (typically 2 or 3 years), after which time the Consultant will receive this additional profit-sharing income.
All-in, first-year Analysts can expect compensation in the $75K-100K range, and first-year Associates can expect about $150K-200K in most cases.
Is Consulting Evil?
Of course consulting is not evil. All too often in the media and movies (Office Space, Up in the Air, House of Lies) consulting is portrayed as a soul-less bloodsucking job where big city Ivy League elites fuck over working class people minding their own business. In reality consultants are absolutely critical to helping executives make decisions. Companies are running hard every day fighting for market share and dealing with all sorts of issues. When a critically strategic problem arises that needs to be solved it can be tough for an executive to overtask his already overtasked team. Not to mention the pace of the work might be too much for the employees. So you bring in Consultants to do the work and get the project up to speed or get ideas that can be presented for consideration by leadership. In many ways, company leadership frequently has already made up its mind or has a hunch on what a strategic move might be. Sometimes, executives will be arguing with each other, and they will bring in consultants to validate or disprove a business idea or theory of a rival executive. It happens.
The Consulting Lifestyle
If you have ever watched House of Lies you might think Consulting is all a giant party expensed on the clients dime. Which...is partly true but comes at a great physical and emotional cost to yourself. In truth Consulting is a lifestyle that demands a lot of sacrifice and personal stress/toll on your body. This is one of the reasons that turnover is so high in the junior ranks. Sure Monday through Thursday travel and luxury hotels sounds good, until you do it every single week for a year.
So what does the lifestyle look like? Here is a typical week for a management consultant.
Monday - Packed 6AM flight to client from major airport. Get to client before noon, work till 7 or 8pm getting decks ready, performing analysis on client data and/or meeting with clients. Check into the JW Marriott or whatever luxury hotel you are staying at. Late Team dinner, collapse into bed around 10pm.
Tuesday - Wake up at 6, work out, eat at lounge, uber to client with the homies around 730 or 8. Work through lunch (uber eats food) till about 8pm and head back to the hotel. Maybe eat alone, maybe not. Probably have work to do.
Wednesday - Wake up at 6, work out, eat at lounge, uber to client with the homies around 730 or 8. Work through lunch (uber eats food) till about 8pm and head back to the hotel. Probably have work to do. If not this is a great night for going out in a new city with your team mates.
Thursday - FLY DAY. Time to get the fuck home. Usually peace out of client around 12 if your team is awesome (if not ooooof expect getting home really late). Usually these are light days or will have some sort of readout with the client. One of the more interesting things about Consulting is that clients will often need to have a break from you. Consultants require a lot of entertaining (meetings, data requests, phone calls, emails etc) and clients need to be able to focus on running their company. Get home hopefully not super late. Unpack and zone out.
Friday - Usually the most chill day of the week. Sometimes go into the office, most of the time do not. When I do go in its for some sort of happy hour or all hands. Free booze!
Weekends - Generally little to no work. HOWEVER, this can vary greatly by group and also need. I have literally worked on a laptop in Disney World while my friends rode the rides because I was grinding on a deck.
The Social Aspect
If you go to business school and recruit for consulting you will notice that a lot of the recruiting events involve drinking and mindless chatter. This is intentional. You are going to spend a lot of time with these people in cramped conference rooms analyzing stressful situations. They will become your friends and not just your coworkers. So you need to come off as likable and have intersecting interests. You can form deep bonds with people over several projects. In many ways it can become like the military where your work friends are your core friend group. So the social part of the job is paramount.
Outside of your normal day to day work you will need to be able to do the following
Know how to dress, both formal and informal, as well as the super broad business casual category that most consultants wear day to day
Be comfortable talking about business, politics and sports
Have an opinion about food and spirits
Be able to identify or at least partially understand current cultural trends
Be able to identify brands and understand the money level tied to that
Be exceptional at emotional intelligence and reading strangers
Be comfortable communicating to senior level leadership under stressful situations
Be mentally agile and willing to attack complex tasks that no one else knows how to do
Be willing to go the distance to help your team regardless of family commitments, your personal health and also your sleep
Be knowledgeable about travel, hotels, airlines, loyalty programs (critical as its almost part of your compensation)
Should I Recruit for Consulting?
Post-Undergraduate vs. Post-Graduate School
There are many reasons why you might be considering working in Management Consulting: the variety of projects, the fast-paced learning environment, the experience of working with so many intelligent, capable individuals… and of course, the frequent flier miles and hotel points! But it is important to understand what exactly you are getting into. Below we describe the roles and responsibilities of junior Management Consultant from two possible entry points:
Directly after being an undergraduate student
After being a graduate student (typically MBA)
Knowing these details can help you make an informed decision about whether to pursue Management Consulting as a career—and note that your entry point (pre-Grad vs. post-Grad School) makes a real difference in your prospective role at the firm:
POST-UNDERGRADUATE ROLE
Firms have many different names for this position – at McKinsey, it’s called the Business Analyst (BA) position; at Bain, it’s Associate Consultant (AC), and so on. What this junior Consultant really is, however, is a data-crunching, slide-making workhorse extraordinaire!
When Consulting firms say that “they use data to drive to the answer…” that means the junior Consultant’s hard work. The junior Consultant is at the heart and soul of every project. During a typical project, there are often large data sets to analyze. For example:
On a customer segmentation project, the client might want to understand the average spending by customer segment and the mix of products purchased. To do this, the junior Consultant must work with a client representative to pull thousands (or millions!) of records of customer purchase history data, and then analyze it with software to calculate the answers to these questions.
On a Private Equity due diligence project, the junior Consultant might be responsible for locating industry data on market growth trends and building a model forecasting the target company’s revenue.
And of course, in both scenarios, the junior Consultant will be responsible for presenting this data in client-ready format. In other words, once all the difficult number-crunching is done, the junior Consultant must oversee the creation of presentation slides to present the information to the client. As a result, analysts at Consulting firms become experts at both Microsoft Excel and Microsoft PowerPoint, plus any other software packages used on the projects (such as SAS, SPSS, JMP, R, Microsoft Access, Microsoft SQL Server, etc.)
Most firms consider the analyst role to be a 2-3 year program only. After this time, many junior Consultants move on to business school, or other jobs: Private Equity, Venture Capital, Industry, etc. (We discuss exit options from Consulting later in this chapter.) At some firms, top-performing Consultants can stay longer—some firms offer direct promotion to the Post-Graduate level (see below) after a few years, or some may offer programs to sponsor returning Consultants to complete an MBA or other graduate degree.
Overall, the Consulting Post-Undergraduate Analyst role in Consulting is considered an excellent launching pad for a business career, as it allows the Analyst to gain exposure to multiple industries and business problems in a short period of time. Even if Consulting is not your long-term objective, the skills and contacts gained through a Consulting Analyst program will serve as a great stepping stone to whatever career you may want to pursue afterwards.
POST-GRADUATE SCHOOL ROLE
Joining Consulting after graduate school (usually MBA, but occasionally other degrees, such as Law and Doctorate programs) is very different from joining straight out of college. If the newly-graduated job candidate doesn’t have much experience in a business setting, it certainly can provide a strong breadth of business exposure and learning in a short amount of time—just as it would for a Post-Undergraduate Analyst.
If the graduate candidate does have business experience, however, he or she should know what his or her objective in taking on the Post-Graduate Associate Consulting role is: to become a Manager or Partner at the firm; to gain experience in Industry X; to put a strong brand on his or her resume in preparation for the next opportunity, etc. Because this candidate is older and more experienced, and has likely worked at a multiple companies by this point in his or her career, selecting Consulting as the next step is an important long-term career move.
In terms of the role, the candidate’s transition is from serving as a “workhorse” Analyst to serving as more of an adviser, manager, and project-seller. That does not mean the Associate totally leaves analysis behind–far from it. There are certainly instances in which the Associate Consultant will build a model or analyze data. However, the Associate’s role is more about communicating the outcome of those analyses to clients, working more directly with clients to help them accomplish their business goals, and managing Analysts to carry the workload.
On a Consulting project, Associates are likely to be assigned to a peer at the client. The Associate will communicate with this peer on a regular basis to develop and manage a work plan that the Consulting team will execute, all the while updating the client on the team’s findings. For example, on a post-merger integration project, the Associate will likely be at the client site daily, working with the client to manage the detailed process of integration (for example, supply-chain integration could be one component of this overall project). On a growth-strategy project, the Associate might meet with client representatives once per week to provide them with updates on the latest analysis and implications. The Associate is therefore the key contact for the client, and a true partner in this situation; the Associate is most directly responsible for helping the client team succeed.
As already mentioned, the other major difference between a Post-Undergraduate Analyst and a Post-Graduate Associate is that the Associate will usually be managing part of the Consulting team. This can be an incredibly challenging aspect of the Associate workload, as for many Associates, it will be their first experience directly managing people. However, it can also be an extremely rewarding part of the job. After all, the analysts at the firm are incredibly bright, talented individuals. An Associate who can demonstrate his or her ability to bring out the best in the Analysts that work for him will be a valuable asset to the client and to the Consulting firm alike.
The Associate is also responsible for ensuring that Analysts have clear guidance on what they should be working on (prioritization and direction), and ensuring that their output is error free (double-checking their work).
The path to the next senior role (e.g. Engagement Manager at McKinsey, Manager at Deloitte, etc.) usually takes about 2-3 years, depending on the performance of the Associate and firm-specific factors. This period can certainly feel intense at times, but Associates can expect to learn an incredible amount about management and client relationship-building; Associates will also further hone their analytical and communication skills during this time period.
On-Campus Recruiting vs. Direct Application
You have read a lot on this site and in other places about what Management Consultants do, and perhaps spoken to some Consultants and/or been to some Management Consulting presentations. So what is the “standard” recruiting and interview process for Consulting positions?
For one thing, it depends a lot on which school you might be attending. Larger Consulting firms generally visit “target” schools every year for on-campus recruiting. As part of that process, they will typically host informational sessions at these schools during the year. In addition, you will be able to apply for Consulting jobs directly through your school’s recruiting center as part of this process. Typically, they will have a certain number of core (target) schools at which they interview on-campus each year; often they allocate a certain number of job slots from each school for their incoming Analyst and Associate Consultant classes.
For another thing, it very much depends on firm size. Larger firms tend to recruit at a broad set of schools, visiting as many as 20 to 30 campuses every year. Smaller firms may target a handful of highly favored schools. Regardless, the process will be easier for you if you attend one of the schools that a given firm recruits at. (The flip side of this it that it will also be easier for all of your classmates to apply to those firms, so the process will be competitive.)
If you have the opportunity to apply for a position with a firm at your school, there will be a designated process and timing for submitting your resume. Be sure you have the resume and cover letter completed ahead of time, and submit them on time with your school (or, alternatively, you might submit your resume and cover letter through the firm’s website or HR department).
If the firm does not recruit at your school, you will need to apply to the firm directly. The honest truth is, it won’t be easy. In some cases, the Consulting firm may not consider you at all—some firms are very rigid about which colleges/graduate programs they recruit from (especially top-tier firms). Others, however, are more flexible, but you will have to get yourself noticed.
Recruiting season runs on a specific schedule: recruiting for full-time hires occurs during the fall semester, so if you are looking for a job after graduation, you really will need to begin searching at the beginning of your final year. Internship hiring, meanwhile, occurs during the early spring. Each firm has its own recruiting schedule, and information on deadlines and the process to follow will be available on the firm’s website.
VERY IMPORTANT: While applications can be submitted year-round on many Consulting firm websites, your odds for an interview are highest during the aforementioned periods when firms are looking to fill seats for next year’s starting class. If you fail to follow these timing guidelines, your odds of success are very low.
Recruiting Tips
Here are a few things you should do to maximize your odds of getting an interview with the firms you are interested in:
Join the Management Consulting club at your school to ensure you receive any news of recruiting events and job opportunities at your school.
Network, Network, Network: Even before the firms present at your school, identify any school alumni currently working at the firms (ideally people you know or friends of friends) and reach out to them to express interest. The reason for this is that the Consultants’ firms may hold small information sessions at your school that are not targeted at you (for example, they may be recruiting for graduate students while you are an undergraduate, or for full-time hiring while you are applying for summer internships). You should attend the sessions if you are allowed, but you might have an opportunity to connect with a few Consultants at your preferred firms before those sessions. If all goes well, you might even be invited to attend those sessions. Anything that gets your name registered in their minds (in a positive way!) early on can only improve your odds.
Attend Company Information Sessions and Social Events (a.k.a. “Mixers”): The dominant purpose of these recruiting events is not to inform you about the firms. It is to give students an opportunity to network with Consultants at the firm and to show their interest (in fact, some firms mark down who attended, and if you are not on the list, you are less likely to get an interview!). To be certain, the sessions also provide the opportunity to learn more about the firm—but you should do your homework ahead of time. Importantly, you should avoid asking silly questions at these sessions. The Consultants are likely to remember you and asking an inappropriate question is a good way to set off the recruiting process with that firm on a terrible start.
Follow up with all Consultants you meet: See whether you are able to meet for an “informational” session, which basically means going to their office and meeting with him/her (or to grab a drink with them when they attend your campus for recruiting). You can ask questions about the job and the firm and the consultant typically tells you about their experiences and why Firm X is such a great place to work . This is an opportunity to gather insights into the actual firm and if you build rapport, it can be valuable both in getting an interview and later in the interview process. Note: ask politely, but don’t be pushy. Remember, the goal is for the Consultants at the firm to get to know you and to like you.
Recruiting Process
Now that you’ve laid the groundwork to the best of your ability, it’s time to look at the action steps in participating in the Consulting recruiting process:
Apply: For firms that target your school, there will be a standard protocol for applying for a position. Typically, students will submit application through the school’s recruiting center, online, or through a designated Human Resources contact at the firm. The typical application involves a cover letter and resume (often, there will also be a few additional questions to answer online and a request for a copy of school transcripts). Note: A difficult decision to make is whether to apply to just a handful firms or a broad set of firms. We have no definitive answer on this issue, but we believe that in most cases, you are better off applying to more firms rather than less firms to improve your odds of finding a job in the industry. Consulting jobs are highly competitive, and the firms are highly selective. Unless you are certain that there are only a select number of firms you’d want to work for, you will improve your odds by applying broadly. You will also benefit from more interview practice, and other than some basic research and drafting separate cover letters, the incremental time to submit applications to more firms is very small.
For firms that do not target your school, you will need to apply to the firm directly. Once again, this is a bit of a long-shot in Management Consulting, but the best way to maximize your chances of getting an interview is to get noticed. Try to contact alumni from your school that work at the firm, or friends of friends and family, that might be able to help get your resume noticed.
Consultant resume review: Once applications have been submitted, Consultants at the firm (typically representative alumni from the school under consideration) take the submitted resumes and select a given number of applicants for first-round interviews. This explains why that extra bit of networking makes all the difference— if you are a marginal candidate, it can definitely help you get over the first-interview hurdle if you have an internal advocate at the firm.
First-Round Interview: Getting an interview is already a small achievement, so well done! The majority of first-round interviews will be conducted in person, although occasionally first-round interviews can be by phone (especially if you are applying for a foreign office). The first-round interview differs by firm but typically consists of two interviews: one primarily behavioral/experience interview (with a guesstimate case) and one full case study interview.
Second/Third Round Interviews: Second-round interviews nearly always consist of two full Case Study interviews with engagement manager-level consultants. Occasionally one of these interviews involves a presentation or written component. Third-round interviews are common at some firms, but not at all of them. They are often used when a final decision cannot be made among a few applicants. These third-round interviews are usually run by partners at the firm. Note that at most firms, if you have made it to the second round of interviews, you are more likely than not to get an offer. Therefore focus hard on preparation for any second-round (or later) interviews, because the odds are high that your hard work will pay off!
Receiving an offer: This is the ideal outcome and it is the point at which you realize all the preparation, planning, studying and networking was worth the effort. If you receive offers from top firms, Congratulations! You are one of a small percentage of applicants that received an offer, and you have been chosen from a very talented group. But importantly: do not say “Yes” the moment that you receive word of your offer. Also, do not ask silly questions, such as details about your future bonus! The best thing to do is to politely say “Thank you” to the partner who is calling to let you know of the offer; you should make it plain that you are thrilled to receive the news. HR will soon reach out to you with all of the details of your offer. It will then be up to you to think about whether to accept the offer.
Reflect on the offer(s): If you’ve done well in the recruiting process, ideally, you will be in the enviable position of being able to select among offers from a few different firms. At this time, send updates on your recruiting process to any alumni or other Consulting contacts you have at these firms, especially those you have networked with during the process. Let them know that you received an offer—they will likely take you out for dinner and discuss the benefits of selecting their firm versus another.
Enjoy life: You’ve earned it. You now simply have to decide which offer to accept, and begin preparing for your new career.
THE CASE STUDY
Quite Simply, a case study is one of the most important parts of a consulting interview. Think of it like the GMAT for MBA admissions, its required to do well on it but not absolutely not it out of the park. I am going to expand on this section later because of its importance, but suffice to say this is the most dreaded part of the interview because it forces you to unpack a business problem in front of a client.
Harvard Business School Management Consulting Case Prep Guide
Kellogg Consulting Club Case Prep Guide
Other Recruiting Considerations
“STAR” QUALITY
As we’ve discussed, Consulting recruiting will be much easier, and your odds of success higher, if you attend a school that the firm recruits at. If not, you will need to get noticed to have a reasonable chance of landing a job offer at that firm.
Therefore it is essential, if you have a “star” quality—something that makes you stand out tremendously, such as being the top student in your class (even if not at a top school), participating in a major sporting event (such as the Olympics), won a celebrated international competition (whether it be poetry or math, etc.)—that you make this information obvious to the firm you’re interested in. You certainly have a strong chance of being interviewed if you can get that message across, even if you did not go to a top school. So don’t simply write it down on your resume and cover letter and hope for the best. Contact the firm—speak to someone. Make sure it gets known.
GENERAL TIPS AND TRICKS
Outside of that, there are a few tips and tricks that will increase your chances, and they all revolve around one word: networking.
Network with your peer group. This can be a very effective way to get your resume at least looked at. Many consulting firms pride themselves on their culture and are looking to hire like-minded individuals that will “fit in.” Recruiting departments therefore look to analysts and associates within the firm for input on potential candidates. If you are able to hit it off with someone in your peer group at your target firm and they recommend you, your odds of an interview will significantly increase. Firms often also run “hire-a-friend” programs off-cycle if they need to quickly add employees, and provide financial incentives to those doing the recommending. It goes without saying that if you have a family friend who has a contact at one of the firms, do not be shy and request an introduction.
Networking with firm leadership. The same principles apply here, but your networking efforts are much more effective. While recruiting departments will definitely factor in the input that a peer at the firm provides, they will likely act on a favorable recommendation that comes from firm leadership (e.g. partners, principals, managers). If you have any connection to leaders of your target firm–college alumni network, friends of friends, etc.–it’s worth acting on, even at the risk of feeling embarrassed or worrying about imposing. After all, the worst thing they can say is “No.” If you’re successful, you’ll walk away learning more about the firm (and whether or not you are interested in joining it) and if it goes well, you’ll have significantly increased your chances of an interview. Furthermore, your interviewer will know that a senior person in the firm recommended you during your interview, which can have an influence the interviewer’s thinking.
Attend Informational Interviews. Some firms have what are known as “informational interviews.” Informationals are informal meetings where you generally spend 15-20 minutes meeting with a Consultant to learn about the firm. Informational interviews are more common in investment banking, but if you make the effort and ask firms whether you could come in for an information interview, this is often a way to get a foot in the door to network in addition to learning more about the industry and that firm. While the purpose is for you to learn the basics and to get to know the Consultant(s) running the Informational, be prepared for the possibility of behavioral and/or experience interview questions coming up. We address these topics in this guide in a later chapter.
LOCATION FOR NON-TARGET RECRUITS
In our experience, successful candidates that were not recruited from a top school tend more often to secure a position at a location near their school. We think the reason for this is that offices of firms, especially in smaller cities, have an appreciation of candidates who have knowledge of and experience with that region. Therefore, if you are not recruiting from a top school, be sure to scout to local contacts to network with, and be prepared for the possibility that the job you receive will have you based out of a nearby city.
SUMMER INTERNSHIPS VS. FULL-TIME RECRUITING
If you recruit for a summer internship at a Consulting firm and do not receive an offer (or even an interview), you might be very disappointed. However, the fact of the matter is, it’s very hard to get an internship in Consulting relative to getting a full-time offer. There are far fewer spots (for example, there may be only 5-10 summer internships at a firm that recruits 30 full-time hires annually), but yet roughly the same amount of applicants (in some cases, there are even more—sophomores and juniors might apply). Furthermore, it is not uncommon for candidates to be denied a summer internship, only for them to re-apply during their senior year, and get a full-time offer upon graduation.
Here are a few things you can do to increase your chances of getting a full-time interview/offer if you do not secure a summer internship at the firm:
Maintain your relationship with the firm. If you have formed any good relationships during the summer internship recruiting process, maintain them leading into the full-time recruiting season. This can be as simple as sending an email at the end of the summer succinctly describing what you’ve been up to over the summer and reiterating your interest in the firm as the full-time recruiting season begins. Consulting firms really do want to hire candidates that show interest in the field and the firm, so make sure you display your passion.
Find a summer internship that is resume-enhancing. Even if your summer internship ended up not being Consulting, it still can help you greatly in your quest to obtain a full-time position. During full-time resume reviews, firms will look to see that you had a meaningful summer position – whether at a brand-name financial institution (i.e., investment banking, private equity, sales and trading, equity research, etc.) or in a role that provided consulting-like experience (such as project management, product marketing, or quantitative analysis or research).
Take any feedback from the interviews seriously. If you received any feedback from your summer internship interview about areas to address in your career development (for example, add more structure to your case interview responses, or take more challenging math courses), make sure you work on it. Many firms keep the feedback from prior interviews and pass it along to subsequent interviewers so they can know what to be on the lookout for. A definite way to impress potential recruiters from the firm would be to clearly demonstrate that you’ve worked on the areas for improvement that they’ve identified.
Find other ways to reiterate your interest in consulting. If you don’t have an internship in Consulting, there are still plenty of ways to boost your skill set and show your interest in the field. Many schools, for example, have clubs that allow you to consult pro-bono for small businesses, or entrepreneurial ventures in developing countries. Take advantage of those kinds of opportunities and get involved to highlight your interest and learn the skills required to excel as a Consultant. Be sure to mention these experiences on your resume and with whomever you’ve made contact with at the Consulting firms during summer internship recruiting.
Re-apply during the full-time season. Remember, full-time recruiting is a different game than summer internship recruiting in Management Consulting. It is much easier to get a full-time position because there are a lot more slots available. Make sure you reapply full-time, even if you were turned down for a summer internship after several interviews (or even if you never got an interview in the first place!).
Management Consulting vs. Other Fields
Job candidates who are interested in pursuing Management Consulting as a career step frequently find themselves potentially interested in a couple of other career paths as well: Investment Banking and Law come up as potential alternatives time and time again. This section is devoted to helping a potential Management Consultant decide whether that field is best for him, or perhaps Investment Banking or Law is better instead.
VS. INVESTMENT BANKING
What are the merits of Investment Banking versus Consulting? This is a very common question that you’ll encounter many undergraduate and MBA students talking about and debating. There is no easy answer and it depends on your interests, the type of career you are seeking after your banking/consulting position, and the importance you place on lifestyle and your personal life. Below we offer our comparison across a number of key categories.
Compensation: Higher in investment banking—especially as you progress in your career. While Consultants are certainly paid well, investment bankers can earn significantly higher bonuses. Note however that the income-generating climate for bankers is more variable, as it is dependent on active deal flow. Regardless, even in poor M&A and other investment banking activity markets, as it once was, bankers typically make more money. If compensation is your primary goal, banking is probably the more attractive option.
Culture/Lifestyle: This category tends to be considerably better in Management Consulting, especially at the junior and middle levels. Consultants work far fewer hours than their banker friends (a reasonable estimate is 50-70 vs. 90-100 or more per week for junior bankers!), and there tends to be a much more collegial atmosphere at the office. There are far fewer “horror stories” in Consulting than there are in investment banking. Specifically, Consultants do sometimes work late hours during the week, but on weekends, they have a much higher chance of being off than their banking counterparts do.
One potential drawback for Consulting is that it does typically involve much more travel than investment banking—often, Consultants must be on-site at the client’s office in another city. That said, for some people more work travel is a plus.
Learning/Training/Professional Development: It is not automatic whether Management Consulting or investment banking is better in these areas—much depends on an individual’s experience, as well as that individual’s desired career path afterwards. Bankers tend to develop stronger finance and overall financial modeling experience, while consultants tend to gain better overall business management and strategy-related skills and experience. It really does depend on the group the Consultant works for and the projects the Consultant works on.
That said, Consulting firms have many more formal training programs, which can be of benefit, though it is debatable whether such training is more valuable than the learning that occurs naturally on the job in either field.
Consulting positions at the junior levels offer more global learning experience opportunities than are typical in banking—for example, the ability to spend a period of time working in another global office, being staffed on an international project, or doing an externship with a global client.
Career Opportunities: If a financial career (e.g., private equity or hedge funds) is your goal, then banking is the better option as this greatly increases your chances of transitioning into those fields. However, Consulting offers a broader range of career opportunities outside of Finance, provided that you work at a top Consulting firm. Consulting firms also lend to much more time and effort helping to place its Consultants in great positions at clients and other firms relative to investment banks, where there is much more of a “you’re on your own now” vibe. Finally, there are some Private Equity and Hedge Fund firms that specifically seek to hire a portion of their incoming Analysts and Associates from Consulting firms rather than hiring investment bankers only.
Overall, both are excellent, lucrative careers and both rank among the best launching pads for future careers in other fields, across a broad range of business, not-for-profit and government organizations.
VS. LAW
In addition to weighing Management Consulting vs. investment banking, many students also deliberate whether to pursue law school or a career in law rather than pursuing Management Consulting. It has also become increasingly common for junior lawyers at major firms to consider Management Consulting as an alternative career. More recently, some Management Consulting firms have even been formally recruiting students directly from leading law schools.
We will say upfront that it is challenging to make the move from a law firm or law school to a consulting firm, but it is certainly possible. A person’s experience in both fields depends on the firm, the projects, and the team; we spoke with three lawyers who have made the move (one from law school and two from a law firm) to gain insights into the key differences between law and consulting, and into making the switch to a consulting firm. It should be noted up front that the differences between these two fields are striking; while in both cases we are talking about potentially rewarding, lucrative careers for talented individuals, Law and Management Consulting could hardly be much more different than they actually are.
KEY DIFFERENCES
The structure of the workweek is very different. Consulting tends to be as intense, or moreso, during the workweek. However being free on weekends tends to be much more valued at Consulting firms. As an associate at a major law firm, you are very much on-call, as if you were an ER doctor.
Mastery of facts and details is important in both law and Consulting, but in law, decisions are based primarily on factual details whereas in Consulting, decisions are much more impacted by trends and analysis based on assumptions and estimates.
Consulting is much more team-based whereas in law, outputs tend to be driven much moreso by individuals.
Interpersonal relationships among colleagues in Consulting tend to be less hierarchical.
In both Consulting and law, clients can be grateful and easy to work with, or they can be resistant to answers from outsiders— it really depends on individual relationships and internal client politics. Thus in either case, having one “bad” client can have a serious negative impact on an individual’s experience at a firm in either industry.
KEY COMPARISONS
Compensation: 1st-year Associates at top tier law firms earn ~20% more than Associates at top tier Management Consulting firms. However, after 2-3 years, compensation is very similar at top tier firms in both industries.
Lifestyle: Consultants tend to have a better lifestyle, especially in the more junior years. Very importantly: Lawyers account for time in 6 minute increments v. no time increments in consulting. We cannot emphasize this enough. It is life changing. A few free days at a consulting firm is a great thing; at a law firm, your utilization can go down and severely affect your bonus and positioning. Additionally, lawyers at top firms must be extremely cautious to monitor exactly how they spend their time, while Management Consultants are usually dedicated to only 1 or 2 clients at a time.
Learning/training/professional development: Consultants at top firms develop a broader range of business skills, but lawyers can gain certain focused expertise that can help them maintain or develop their career in that specific area. In that sense, lawyers can become leading experts in specific areas after only a handful of important, related cases.
Career opportunities: Consultants have much broader career opportunities in the field of business. Though lawyers in a specific area have certain advantages (e.g. bankruptcy lawyers account for ~40% of distressed debt investors), their overall skill set is more suited to staying in law.
In a nutshell, our recommendation is this: we would recommend law over Consulting only if you are fairly certain you want to be a lawyer. It is difficult to transition from one to the other, and for those who are uncertain, our viewpoint is that Consulting is likely to work out better, since it opens the door to career opportunities in so many different areas.
SWITCHING FROM LAW TO CONSULTING FIRM
For those who are already in the law area (either as attorneys or law students), here are a few tips for making the transition to Management Consulting if you feel it appropriate for you:
If you are at a top tier law school or law firm and are serious about shifting to Consulting, reach out to HR at any firm you might be interested in during the recruiting season and you will likely be considered.
Other than needing to clearly demonstrate why you are serious about Consulting rather than law, the recruiting process will not be different for you than it is for anyone else. In that regard, it might be helpful for you to brush up on some of the basics of the Management Consulting industry.
We have heard that both in the interviews and once you start at a consulting firm, lawyers are more carefully scrutinized to prove their quantitative skills again and again. Therefore be sure to heavily prepare for the quantitative aspect of the interview. In particular, read up on and practice some of the analytics that Management Consulting firms tend to perform in client Engagements.
Consulting Off-Ramp’s
Like going to a top school or working in Investment Banking, working at a top tier Management Consulting firm is a step that will help create many career opportunities. However there truly is no typical career path— some Consultants have a long career in Consulting while others shift into a variety of other careers. The learning curve as a Management Consultant is steep—the job is extremely challenging to anyone who newly enters the field. This pays handsome dividends at exit time, because Consultants with experience find they have developed highly valuable skills and knowledge in the marketplace. In addition, firm alumni from a Consultant’s firm can play a major role in opening up exit opportunities for Consultants looking to explore career options in many different fields.
Here are just a few paths an exiting Consultant might take:
PRIVATE EQUITY AND VENTURE CAPITAL
After the two-year analyst program, many junior Consultants are recruited by private equity firms such as Carlyle, KKR and Bain Capital. It is an extremely selective process. Approximately 1/4 of private equity analysts come from Consulting firms (with most of the remainder coming from investment banks). If you are interested in making this transition, please see our Private Equity Training course for background information on the Private Equity industry and how to secure a position at a Private Equity firm.
HEDGE FUNDS/MONEY MANAGEMENT
Hedge funds tend to be less structured than Private Equity firms in terms of their recruiting cycle; also, most Hedge Funds hire primarily from investment banks (although there are a number of hedge funds that so hire consultants). Consultants that show a clear interest and knowledge of investing are certainly capable of securing Hedge Fund jobs. There is a presumption that if an applicant really wanted to work at a hedge fund he/she would have done banking and not consulting, so you may have to fight that opinion. More commonly, ex-consultants join Hedge Funds and other investment firms after attending business school. If you are interested in making this transition, please see our Hedge Fund Training course for background information on the Hedge Fund industry and how to secure a position at a Hedge Fund.
THE CORPORATE WORLD
Consultants are in significant demand by many corporations due to the analytical capabilities, strategic thinking, and managerial experience a former Consultant can bring to a company. While many corporations hire Consultants to effectively be in-house Consultants in their strategy department, there are many other attractive positions such as Business Development, operating positions, and executive management that are suitable for Consultants. Ex-Consultants can often start at surprisingly senior positions—especially relative to what they might have achieved if they had joined that company straight out of college. Many managerial-type job advertisements at leading corporations specifically mention Management Consulting experience as a requirement or a strong plus.
START-UP COMPANIES
A very high number of former Consultants join start-up companies and/or start their own ventures. This is more common now than many years ago. Working at a leading Consulting firm not only provides you with sound business and analytical skills but also with credibility and a strong network to maximize the chances of success for a new or early-stage company. It is not uncommon for partners of a Consulting firm to invest in start-ups led by firm alumni and to use their networks to help such ventures.
NOT-FOR-PROFIT ORGANIZATIONS
Some Consultants select to apply their developed skills to the not-for-profit field. Increasingly, there are well-funded not-for-profit organizations that can greatly benefit from the Consultant skill-set. There are also not-for-profit Consulting firms, such as the Bain spin-off The Bridgespan Group, that can provide an excellent launching pad for individuals interested in working in the not-for-profit sector.
MBA AND OTHER ADVANCED DEGREES
A large number of Consultants go on to graduate school, most commonly to business school, directly after their time in Consulting. The acceptance rate of Consultants from top consulting firms applying to the top business schools is extraordinary. With so many alumni from top business schools in these firms and the schools’ knowledge that these students will have significant career opportunities, often including returning to the firm, this success rate is not very surprising. Estimates suggest, for example, that about 20% of HBS and Stanford GSB’s incoming class every year had previously worked at a leading Consulting firm.
Some Consultants also go on to law school and other Masters or PhD programs. As with the MBA, having a prestigious Consulting firm on an applicant’s resume generally increases the chances of securing a spot in a top program at a leading school.
GRADUATE SCHOOL SPONSORSHIP
As we have seen, working at a Management Consulting firm certainly offers many perks and opportunities. One question we are commonly asked is, “Do Management Consulting firms sponsor Graduate School for its employees?” At some firms, yes, you can have your graduate school paid for. That’s right—all $100K+ of it. So how does this work and what is the catch?
The first question is: Is it common for firms to offer sponsorship? The majority of the top-tier firms including McKinsey, BCG, Deloitte and Bain have sponsorship programs. For top-performing analysts who they would like to see return after graduate school, they provide an offer to return to the firm at the post-graduate school position (e.g. Associate, Consultant) and to cover tuition (in addition to a returning bonus). Smaller firms may offer such programs as well, though their programs tend to be less formalized. Why do firms spend so much money on paying for Consultants’ graduate school? In essence, they’ve realized that it’s a great way to retain experienced and talented Consultants and to provide an opportunity for those Consultants to expand their skill sets. It is a lot less risky and arguably cheaper for them to sponsor graduate school for a top performer than to take a chance on a new, unproven candidate that does not always work out.
The leading firms say that they will sponsor all strong candidates. Our surveys show that approximately 50% of analysts who request sponsorship actually receive such sponsorship; this percentage also differs quite a bit by firm (for example, a higher percentage of McKinsey Consultants are granted sponsorship relative to Deloitte Consultants). The majority of this sponsorship is for an MBA at a top-tier business school.
The second question is: What is the catch? In exchange for covering a Consultant’s tuition expenses and providing him or her with job security during the program, sponsored candidates are bound to work for the firm for a minimum number of years (usually two) after school. Over that time post-schooling time, the tuition payment owed back to the firm is amortized down to zero. Should the Consultant leave prior to fulfilling his or her commitment, he or she is responsible for paying the remaining portion of it back. So, for example, if the firm has paid $100K towards a Consultant’s tuition, and that Consultant has a two-year commitment post-schooling, that Consultant will have to pay back ~$50K if he or she decides instead to leave the firm after one year.
Certain firms also require that Consultants pay back all or part of their signing bonuses and/or other such financial awards, depending on how soon you leave. Leaving early and breaking your commitment can also be seen as “burning a bridge” with the firm, though the relationship can be maintained if managed tactfully and respectfully.
Overall this opportunity sounds attractive, which leads to the third question: Who would turn such an offer down? The reality is that if you’ve worked at a leading Management Consulting firm, you will have many career opportunities upon graduation from an MBA program; part of the value of attending business school (or another type of graduate school) is to explore such opportunities. If you decide to accept sponsorship and thereby return to Consulting immediately after graduate school, you might miss out on another opportunity–one that may be harder to shift into once you have repaid the firm. Therefore, we would recommend accepting the offer only if you are quite certain that you would like to return to Consulting upon graduation.
One additional points is that some firms will offer additional bonuses for sponsorship the earlier a Consultant accepts such an opportunity. We strongly recommend accepting as late as possible (even if you miss out on some of the retention bonus), as it is worth exploring other opportunities before committing many years ahead.
Note that a large portion of the pro-forma material in this article that is well known within the MBA community like recruiting timelines, salaries, questions etc were pulled from the street of walls consulting website.