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Showing most liked content since 03/01/2017 in all areas

  1. 2 likes
    I think maybe its a good thing for the consultants who are asked to resign. First, the job they do currently maybe is not a good fit with his skills. Let's suppose that someone works in a famous consulting firm now, when he is asked to resign, other small consulting firms may need him. And investment banks (and many other companies) who are looking for people with consulting skills may need him. Second, the experience in working in a big consulting firm is good for his CV, and will open up more opportunities than a graduate. Also, I think consulting is a high risk industry because it has a high turnover rate. A critical reason is the "up or out" policy, but it may be risky for other reasons as well.
  2. 2 likes
    Hi Abby, Thanks for your question! There are a few key differences between the Big 4 (KPMG, EY, Deloitte, PwC) and MBB. Nature of the work - The Big 4 are traditionally accounting firms, which now provide a wide range of professional services including audit, financial advisory, tax, legal and consulting. The Big 4 and MBB may work on similar types of consulting projects, but it will depend a lot on which office you work for, and which practice area you end up in. Historically, the Big 4 have had a bigger focus on operations and implementation, whereas MBB have focused more on pure strategy questions. Hours worked - As a junior in a large professional services firm (i.e. Big 4 or MBB) you can expect to work 60+ hours per week. In other words, Big 4 and MBB will both be long work hours. This may vary depending on what projects you are working on. Prestige - MBB is much more highly regarded in the consulting industry. Why? Well, they spent many years and millions of dollars to make sure this is the case. MBB tends to attract higher calibre employees who studied at more prestigious schools, and as a result MBB consultants tend to progress in their careers much faster (whether it be promotions within MBB, heading off to B-school, or taking a job elsewhere). Don't underestimate the value of a powerful brand name. The People - Most people who land jobs in consulting at the Big 4 and MBB will be smart, hard working and generally impressive individuals. That said, MBB has more pulling power, and will consistently attract the best of the best. Historically, MBB would only recruit from the very best universities, however it seems they now consider a broader range of applicants. Exit Options - Big 4 and MBB will both offer you strong exit opportunities (e.g. B-school, industry, PE). In my experience, business schools and recruiters place a premium on MBB compared to Big 4. MBB are the Oxbridge of the consulting world. Does that help?
  3. 1 like
    In a consulting project, a typical consulting firm will start by coming up with a hypothesis about the problem facing the client. It will then gather information from various sources including market research and data provided by the client. The firm will analyse this information using statistics, consulting methodologies, and industry experience. The firm will then provide recommendations to the client supported by its analysis. A consulting firm's analysis will often be reliable. But it has its limitations, such as the consulting firm may have limited data on which to base its conclusions, or the consulting firm may hide the limitations of its analysis in order to justify the high fees it charges to the client. However, even if the analysis undertaken and recommendations made are sound, this does not guarantee that they will lead to positive financial results for the client. For example: A client may fail to implement the advice which it has received. Market conditions may change which invalidate previous advice. For example, the CEO resigns, a major competitor enters the market, or a new technology is invented. The economy may enter a recession. The earth might get hit by an asteroid. Etc.
  4. 1 like
    These are good questions. In an attempt to avoid reinventing the wheel, read Ellen Vrana's answer on Quora.
  5. 1 like
    Hi Monro, Very good question! There are at least four (4) reasons that a company might choose external consultants (even when they have good internal consultants available): Expert knowledge: External consultants may have experience solving similar problems and an understanding of industry best practice that internal consultants do not have. Independent advice: External consultants can assist management by providing independent third party recommendations. Internal consultants may have a vested interest in the outcome of their advice. For example, they are unlikely to recommend cost savings that include job layoffs in their own department. Catalyst for change: Senior management may need to support for organisational change, and so hiring a top consulting firm can provide political cover for them to push through difficult changes, "nobody ever got fired for hiring McKinsey". Cost effective solution: For some types of projects (e.g. software development) consultants may represent a cost-effective solution. A firm may lack the capabilities needed to complete the project in a timely or cost effective manner and it may not be feasible to hire and train full time staff.
  6. 1 like
    External consultants set foot in many industries, so they may have more knowledge than internal consultants and have the ability to control the overall situation. But the internal consultants just need to face the situation in one company (one industry), so they won't have as much knowledge. In my opinion, hiring an external consultant is necessary because they can deal with many problems that internal consultants can't deal with. Some problems involve several industries, external consultants will give their customers a proposal timely and accurately to solve the problems.
  7. 1 like
    From my perspective, asking help form consulting firms is not necessary. It depends on the specific situation. In most cases, hiring an external consulting firm help, but you need to contrast the differences between the cost and the benefit of hiring consultants.
  8. 1 like
    Consulting firms can provide a service focusing on saving companies out of bankruptcy and reducing the loss. Additionally, if the clients are worth helping the consulting firms can make an investment on them directly to earn dividend when the clients are on the right track.
  9. 1 like
    The consulting team will usually communicate with the client throughout the project at various intervals:daily,weekly,monthly.They may keep their client informed about the evolving hypothesis and make sure the consulting team is on track to meet client exceptions.
  10. 1 like
    Monro, This is a very good question! Thanks for asking it! It is true that during economic downturns prospective clients will typically have less money, or more uncertain cash flows, and so they will be less likely to spend money on consulting services. As a result, consulting firms may earn less revenue during economic downturns, and some consultants may become unemployed. Consultants and consulting firms can go some way towards reducing the effect of economic downturns by offering a range of services including some which are "countercyclical". That is, services for which demand demand increases during downturns, such as supply chain management, restructuring and turnaround support services.
  11. 1 like
    In consulting firms, the "up or out" policy is a requirement that consultants be selected for promotion within a certain period of time, or they will be "counselling out" of the firm. Is this a bad thing? Well, on the one hand, if you are a super star consultant, then the "up or out" policy is a good thing since it can give you the chance to progress your career at an accelerated pace, gaining valuable work experience within a relatively short period of time. However, on the other hand, consulting firms typically have a pyramid structure (with a few partners at the top, and lots of juniors at the bottom), which means that every year some consultants will inevitably be encouraged to pursue other opportunities. But since top consulting firms only hire the best of the best, leaving after two years should not be viewed as a failure. It is very common for this to happen. A few years of management consulting experience can open up various attractive exit opportunities including: Pursuing an MBA at a brand name business school (Harvard, Stanford, Oxford, INSEAD) Going to work at another consulting firm (just because you leave one firm, doesn't mean you have to leave the industry) Going to work for a client (you already know their business, and so if they like your work they may try to poach you) Build a startup. Consultants gain experience in understanding various industry sectors, and this knowledge could be used to identify opportunities for a new start-up company. The connections and networks built during your years in consulting may also come in useful when trying to raising start-up funding. Some of the commentary I read elsewhere suggests that junior consultants need to be guarded, and avoid making friends so that they can remain as competitive as possible in an "up or out" environment. While consulting firms are no doubt very competitive environments, I would suggest instead that junior consultants focus their attention on maximising their contribution (both in a professional and social setting). This will naturally attract positive attention (but be careful not to let others steal your credit). Consulting is probably not a good career path for people looking for affirmation from colleagues and clients. As New York based consultant Alan Weiss puts it, "if you want to be liked, get a dog". Is a consulting career high risk? In my view, students looking to start their career in the management consulting industry should view it as a continuation of their education. You may not remain a consultant for your whole career, but you may get to work on interesting projects and learn a lot for a few years before you reassess what you want to do with your life.
  12. 1 like
    Big 4 focus on the tactical and operational level while MBB focus on strategic level. Big 4 are adept at tasks relating to financial management because of its solid financial foundation, but MBB are still the best consulting firms anyway.
  13. 1 like