Being a management consultant isn’t all about sizing the market and increasing profitability for a mattress, meatpacking, or home care company. It’s about structured problem-solving to ensure that all types of clients can operate effectively.
In this article, we will define social impact consulting, how it differs from traditional aspects of management consulting, how you can specialize in social impact, and some of the post-consulting exit opportunities in the space.
What is social impact consulting?
Management consultants often do work for organizations that are focused on social impact initiatives, such as poverty reduction, global health, education reform, economic development, environmental sustainability, and sustainable investing. Clients may include non-profits, governments, foundations, investment funds, and even for-profit corporations.
Social impact consulting may involve advising on high level business strategy, but rather than focusing solely on maximising profit, the aim is to help clients achieve a higher social purpose.
While clients no doubt care about profitability, success is measured by real-world impact. For example, a non-profit working to reduce homelessness might evaluate the success of its housing program by analyzing the number of people who successfully transition from temporary to permanent housing.
Social impact projects tend to be longer than private equity or corporate strategy projects because clients are focused on longer-term change that may lack clear measurable outcomes, making these projects more ambiguous than other consulting projects with singular financial priorities.
Social impact consultants are brought in to navigate this level of ambiguity and create solutions that benefit a range of stakeholders, including the broader community. Whether it’s improving education in underserved regions or reducing carbon emissions, social impact consultants help to define the client’s goals, track and analyse quantitative and qualitative data to evaluate how well specific social outcomes are being achieved, and provide actionable recommendations for improvement.
Social impact projects require continued collaboration with a broad range of stakeholders, including local communities, donors, policymakers, NGOs, and businesses. Consultants must navigate conflicting interests to ensure that all voices are heard, and all perspectives are taken into consideration as the project moves forward.
Consultants with great client relationship skills are often prioritized on these projects since they need to be strategic about getting in touch with the right people, securing necessary resources, and developing trust over time. They also need to be able to finesse communication in a way that is culturally sensitive and resonates with different stakeholders. This differs greatly from a private equity project where the focus is often on a smaller, more defined group of stakeholders such as the C-Suite executives.
How to become a social impact specialist at your firm
Consulting firms are increasingly investing efforts in the social impact space, and so you should consider becoming a specialist in this area.
While many firms encourage entry-level hires to remain generalists, some firms allow you to specialize, especially if you build a reputation for excellence by showing initiative and producing high-quality deliverables early on.
If you’re planning to become an expert in social impact, join a firm that has a strong focus on social impact projects. For instance, Bain recently made a 10-year commitment to invest more than $1 billion in pro bono consulting services. Much of this will be focused on social impact consulting via its dedicated practice, Bain Social Impact, which focuses on education, economic development, environment, and social equity. By working at a firm like Bain, this can provide you with exposure to that type of work, and an opportunity to form a strong track record right from the outset.
Forming relationships with partners, principals, and senior consultants at your firm who have experience in social impact projects is essential for gaining mentorship and getting staffed on key projects.
Managers don’t just want to work with competent colleagues, but more so those they know, like, and trust. It’s important to show interest in the work they’re doing, and actively seek their advice.
Gaining early experience on social impact projects can help you to build a competitive advantage that leads to further work. Consultants are often staffed on projects that align with their background. If you have done marketing for a social impact organization, taught programs aimed at engaging disadvantaged communities, or advised top corporations on corporate social responsibility, you are more likely to become the social impact expert within your firm. Similarly, if your mentor gives you a shot by staffing you on a social impact project, then this experience can lead to further work in this space.
Post-consulting exit opportunities in social impact
Not only can you become a social impact expert in the world of consulting, but you can leave as one, too.
After a few years in the field, many consultants transition to roles working with a client, applying their expertise more directly to drive positive social impact. For instance, they may transition into a senior leadership role at a nonprofit, such as Director of Strategy, where they directly influence the organization’s mission and operations. Many also move into public sector roles, advising governments or international organizations on how to implement social programs on a larger scale.
Some consultants choose to found or lead social enterprises, using their consulting expertise to create businesses that balance profit with positive societal impact.
For those passionate about research and thought leadership, academia or think tanks focused on social issues provide other opportunities to contribute to the field through publications, conferences, and policy development.
The bottom line
Management consulting offers young professionals a unique opportunity to drive positive social impact. Social impact consulting originated in the early 2000’s, and has been growing rapidly ever since. In that space, consultants are able to solve real-world problems by applying structured problem-solving in a way that improves the quality of life for individuals and communities. Whether working with nonprofits, governments, or for-profit corporations, consultants have a critical role to play in shaping long-term solutions.
With the right focus, expertise, and professional relationships, you have the potential to carve out a rewarding career in the social impact space by specializing at a consulting firm or transitioning into a post-consulting role in the social sector.
Elle Cheney holds a BA in Communications and Research with a Minor in Business from Brigham Young University. With professional experience in management consulting, marketing, and communications, Elle is curious about creative problem solving, thrives in environments that are highly collaborative, and values opportunities for mentorship. She aspires to create memorable experiences for customers as part of her long-term career.
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