Top-Consultant.com Guide to Consulting Firms
Top-Consultant.com 18b Charles Street | Mayfair | London | W1J 5DU | +44 (0) 207 667 6880 Top-Consultant.com 2 Guide to Consulting Firms Table of Contents
Things to consider when applying for consulting firms Insights from management consultants
Strategy, Boutique & Full-Service firms Three types of firms to consider
Additional Resources Annual reports about the consulting industry
Appendix A list of firms overlooked by the majority of applicants
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Registered in England and Wales with company number 3947933 VAT Number GB 243 5711 74 Things to consider when applying to consulting firms Insights from management consultants
There are numerous reasons you may be considering a career in consulting. The high-flying lifestyle, the money, the pres- tige, the learning experience…
… so this report starts off by identifying the things that actual management consultants are most looking for in their next consulting job.
These insights are based on a survey of ~1,500 consultants from the likes of Accenture, McKin- sey and Capgemini, as well as numerous smaller firms.
By assessing the things that real consultants are most concerned to secure in their next career move, you can begin to understand the research that you need to be undertaking about future employers and the types of questions you need to be asking your potential employer.
Top-Consultant.com 3 Guide to Consulting Firms It is clear that remuneration is the number one Retention factors ranked by consultants concern of actual consultants, especially in a 2007 2007 2005 booming market like today’s. Being able to influ- Rank Retention Factor Score Rank Change ence the projects you’re assigned to and feeling confident of having a good work/life balance 1 Firm has better remuneration / pay than the competition 5.42 2 +1 are also clearly important. If these issues are the 2 Firm involves consultants in the staffing process - allowing ones that most concern actual management consultants to influence which projects they are assigned to 5.17 1 -1 consultants then they should surely be the issues that concern you most as a prospective 3 Firm has a culture where evening and weekend work is discouraged 4.78 6 +3 management consultant? 4 Firm invests heavily in staff training 4.78 3 -1 Top-Consultant’s advice: make sure you drill down on each of these factors during the ap- 5 Firm offers flexible working hours 4.59 5 No change plication procedure, or you could well end up 6 Firm manages client expectations to ensure consultants a disaffected employee and back on the job are not expected to be away on client site 5 days a week 4.51 4 -2 market within a year or two… 7 Firm actively encourages consultants to work from home if desired 4.01 7 No change 8 Firm tries to foster great morale / team spirit by organising regular social events and team activities 3.81 8 No change 9 Firm will allow consultants to take sabbaticals / extended leaves of absence 3.78 9 No change 10 Firm sponsors MBA studies 3.44 10 No change 11 Firm shows willingness to accommodate consultants who wish to move to the countryside rather than living in the city 3.21 11 No change 12 Firm provides a creche / nursery facilities 1.98 12 No change
Source: Top-Consultant.com Retention Report 2007
Top-Consultant.com 4 Guide to Consulting Firms What are the best approaches to adopt Future trends in candidate application behaviour when job-hunting in consulting?
With the rise of the internet, the options for finding a job in consulting have multiplied. But which routes are the most effective – and where should you be focusing your efforts?
A survey of over 1,600 consultants provides some food for thought. When asked to score the channels used in their last career move, candidates favoured personal referrals over all other means of applying. So if you have contacts in consulting firms, don’t be afraid of calling in a few favours!! Internet job sites and recruitment agencies were the next best option.
Source: Top-Consultant.com Recruitment Channel Report 2007
Top-Consultant.com 5 Guide to Consulting Firms Strategy Introduction: Be sure to differentiate between Strategy, Boutique and Full-service Boutique consulting firms
When contemplating a career in consulting, Full-Service it is critical to differentiate between the types of firms in existence. The term “consulting” is now used to cover a wide array of activities, so the work you will undertake at various types of firms can be quite different. This can have major implications for both your job satisfaction and career prospects – both inside and outside of consulting.
Overleaf we show a graphical segmentation Strategy, Boutique & Full-service firms of the sector, breaking the industry down into strategy firms, boutique firms and full-service Three types of firms to consider firms. There are many differences between each type, which we shall outline later in this chapter.
Top-Consultant.com 6 Guide to Consulting Firms However, the graphical representation focuses Segmentation of the consulting industry on perhaps the two most telling figures: average revenue generation per consultant and total headcount. Revenue Boutique Firms Strategy Firms per Work of a strategic or highly specialised nature consultant McKinsey tends to involve smaller teams with high billing Monitor BCG Marakon rates per consultant – strategy and boutique LEK Roland firms fall into this category. Full-service firms, Berger Bain OC&C by contrast, are characterised by large project Parthenon BAH teams (often 30+) and much lower billing Mercer rates per consultant. The implications will be $300,000 discussed later in this chapter. Independents Full-service Firms
Firm size has ramifications in terms of career progression (how regimented is the firm?), culture and likely project responsibilities. Accenture Deloitte Boutique firms will typically be ~200 strong, IBM strategy firms 1,000 – 5,000 and full-service firms Capgemini EDS CSC anything up to 80,000+ consultants. $150,000 When applying, it is unlikely that more than two 0 1,000 Firm size (head count) types of firm will offer the type of role you are looking for.
Top-Consultant.com 7 Guide to Consulting Firms Strategy Firms OVERVIEW: Strategy consultancies focus on providing (such as McKinsey, BCG, Bain) company directors with strategic advice on the likely future direction of their industry - and subsequently the strategic actions that the company ought to undertake to exploit resulting opportunities. Strategy consultancies tend to operate globally through a network of international offices. The business model of a strategy consultancy revolves around a much higher billing rate than for full-service firms. Profitability is achieved through sizeable mark- ups on each consultant employed, rather than through a smaller mark-up on a larger volume of consultants (as with full-service firms). The cost of winning new clients is high, so the key ratio for such firms is the repeat business rate (what % of clients undertake a new assignment with the consultancy when a project is concluded). Utilisation is also monitored carefully, though targets are lower than for full- service firms since much more time is devoted to proposal-writing in an attempt to win new clients.
Top-Consultant.com 8 Guide to Consulting Firms TYPICAL FIRM PROFILE: PLUS POINTS: NEGATIVE POINTS: Firms will typically have offices covering the + Alumni tend to be treated exceptionally - Some firms operate an up-or-out policy major geographies, but rely much more on well because they are the future client which is much more rigid than in other international staffing to fulfil project briefs. stream of the firm. types of consultancies. They will have a greater number of Principals/ Partners for each junior consultant – partly + Project teams will also be much smaller, - The high workload associated with con- because of the greater sales effort required at five being typical, so there is no room for sulting is perhaps most extreme in strat- such firms, and partly because Partners have hangers-on but much greater scope for egy firms. to be more active on project assignments once impressing at an early age and achieving won. Most strategy firms are quite arrogant in fast-track career progression. - International travel is more often than not the sense that they are exceptionally selective an inextricable part of the job, so remain- about who they hire. Each tends to have its + Considerable scope for international travel ing with a firm and developing family own unique slant (must be academically and for early exposure to decision-makers commitments can prove very difficult. from the elite; must have had entrepreneurial in industry. experience; must have held outstanding - Strategy firms are the worst hit in a down- extra-curricular positions at University) which + Opens doors both to leading Business turn, so there are times in the economic permeates the firm’s culture. Each tends Schools (if contemplating an MBA) and to cycle when it will be almost impossible to to recruit in its own mould, even if this is strategic roles in industry. break into the sector. outwardly denied. + Early career is likely to be generalist in nature – giving exposure to many sectors and functions; early exposure to Partners/ Directors maximises the learning experi- ence.
Top-Consultant.com 9 Guide to Consulting Firms Boutique Firms OVERVIEW: Boutique consultancies focus on providing (such as LEK, Detica, Parthenon) company directors with either sector-specific advice (eg. telecoms or automotive) or functionally-specialised advice (eg. marketing, CRM). Boutique consultancies will typically have one office – or a handful at most – that can service global clients but usually only within a few target markets.The business model of a boutique consultancy is similar to a strategy firm in that a key ratio is the repeat business rate (the % of clients that undertake a new assignment with the consultancy when a project is concluded). The strength of boutique firms is their undoubted expertise in their particular field; their weakness is that they cannot meet all the consulting needs of a client, nor bring to the table experience learnt from similar but unconnected industries. It is not uncommon, therefore, for clients to have both boutique and strategy consultancies advising at the same time.
Top-Consultant.com 10 Guide to Consulting Firms TYPICAL FIRM PROFILE: PLUS POINTS: NEGATIVE POINTS: Boutique consultancies very often have an + There is the potential to focus from day - Career limitations when joining strategy or identifiable figure-head leading the firm. Their one on a particular functional or sectoral full-service firms. Unless you are looking character will often owe a lot to the character specialism in a way that is quite difficult to join as a specialist, preferably bringing of this figure-head. They are also very often within a strategy consulting firm. excellent client contacts, it will be difficult created as a spin-off from either a strategy or to transition to the other types of firms a full-service consulting firm. Understanding + Project teams are also small, giving re- later in your career. how the firm came to be created can give sponsibility at an early age and close con- considerable insight into what it is like to be an tact with the firm’s founders. - In some industries (eg. Aviation, telecoms), employee there (eg. a consultancy created by the only way to win enough client assign- ex-Accenture professionals is likely to have an + Likely to be the most enjoyable work ments is to win overseas assignments Accenture feel to it). atmosphere of all consulting firms, with – which in some firms will mean extended considerable camaraderie and a small-firm periods of overseas travel. In terms of project work, the boutique feel. consultancies tend to be similar to strategy - The success of the firm – and therefore consultancies. Small teams provide business- your remuneration – is very much tied to critical advice to the highest levels within a the performance of the sector/ function client organisation. Working hours are likely you have specialised in. You will be more to be more acceptable, though, as these firms exposed to a downturn in a specific sector. have more of a small-firm feel to them and are much less elitist than strategy firms
Top-Consultant.com 11 Guide to Consulting Firms Full-service Firms OVERVIEW: Full-service firms are global consulting (such as Accenture, Deloitte) organisations, who have typically built up a comprehensive client base through prior work as auditors or through their role as IT implementation experts. The business model of a full-service firm is based on maximising utilisation of consultants at a relatively low price-point. Selling a wide range of services to the client base is critical in ensuring a low cost of sales (maximising the value of each client relationship).
Top-Consultant.com 12 Guide to Consulting Firms TYPICAL FIRM PROFILE: Full-service firms tend to have a large number of junior consulting staff for each Partner-level professional. This fits perfectly with the type of work sold – typically large-scale projects PLUS POINTS: NEGATIVE POINTS: requiring sizeable teams, often of 30 or more + Very strong and co-ordinated training - Frustrating rules, procedures and consultants. A lot of work is implementation courses to ensure consistency of service regulations are an inevitable part of work- and outsourcing focused, where project offering is achieved throughout the firm. ing for such large corporations. duration is frequently 6+ months. + Large project teams ensure new-hires are - Large project teams mean you will have These firms will also have an array of partner broken in gently. insights into one specific aspect of a busi- / alliance arrangements with firms such as ness rather than an overview of how the SAP, Siebel and the like. At one of these firms, + Potential for internal transfers if you decide whole clients’ business operates. alliance-derived business accounts for 45% to change your desired specialism or relo- of consulting revenues. So one of the main cate internationally. - Promotion-track is highly rigid, so the very demand-generators for full-service firms is best will not enjoy the same accelerated clients’ desire to implement the latest technical + Blue-Chip client base provides great expo- career paths they might achieve at smaller solutions. Many now describe themselves as sure and learning experience – plus excel- firms. “solutions integrators” rather than consultants. lent contacts should you decide to move Outsourcing is another large component of out of consulting later in your career. - Given size of project teams, less likely to be their business, so you may well be providing working directly with Blue-Chip Directors consulting advice for a newly-outsourced + International travel less frequent as net- – liasing with middle-management more business process. work of overseas offices can staff interna- usual. Full-service firms will typically have units tional projects (though possibility remains serving all industry-verticals and all functional to work on overseas assignments if de- specialisms. They often have parts of the sired). business that compete (eg. HR and strategy) with boutique and strategy firms. More often than not, though, these arms provide add- on services to existing clients rather than competing head-on with the smaller firms.
Top-Consultant.com 13 Guide to Consulting Firms Additional resources Recruitment Channels Retention
Top-Consultant.com publishes a range of consulting reports each year. All are free to download and you may find those listed here provide considerable additional insights into our industry.
7 Tips for Candidates Salary Benchmarking
Top-Consultant.com 14 Guide to Consulting Firms Achiever Business Solutions http://www.achieverplus.com Appendix Acres Management Consulting http://www.acres.com A shortlist of firms who are Actica Consulting http://www.actica.co.uk being overlooked by the ma- Adventis http://www.adventis.com Allery Scotts http://www.alleryscotts.co.uk jority of applicants, and where Alsbridge http://www.alsbridge.com you stand the best chance of Altran http://www.altran.com Amdocs Consulting http://www.amdocs.com success AMTEC Consultingplc http://www.amtec.co.uk Analysys http://www.analysys.com Anpro http://www.anpro.co.uk Applied Expertise http://www.applied-expertise.com Identifying new-comers to approach Applied Value http://www.appliedvalue.com Ariba http://www.ariba.com Arup http://www.arup.com As should be clear from the preceding commentary, there are numerous consultancies Atkins Management Consultancy http://www.mantix.com who – because they are slightly less well known Atos Origin http://www.atosorigin.com amongst candidates – you should stand a better Baker Robbins & Company http://www.brco.com chance of being hired by. Having researched the Basis http://www.basis.co.uk industry, we provide listings of consultancies BDR Consulting http://www.bdr-consulting.com you may want to research and apply to direct: Berkshire Consultancy http://www.berkshire.co.uk Billetts Marketing Sciences http://www.billetts.com Bluerock Consulting http://www.bluerock-consulting.com Bourton Group http://www.bourton.co.uk BRAXXON http://www.braxxon.co.uk BT Global Services http://www.btglobalservices.com BTA Consulting http://www.btaconsulting.co.uk
Top-Consultant.com 15 Guide to Consulting Firms Burke http://www.burke.com eg solutions http://www.eguk.co.uk Bernard William Associates http://www.bwa.uk.net Eide Bailly http://www.eidebailly.com Callow & Associates MC http://www.callow.ca ER Consultants http://www.erconsultants.co.uk Cambridge Group http://www.cambridgegroup.com Eurobase Consultancy http://www.eurobase-international.com Capco http://www.capco.com Fair Isaac http://www.fairisaac.com Capita Advisory Services http://www.capitaadvisoryservices.co.uk FBM-Consulting http://www.fbm-consulting.com Catalyst Development http://www.catalyst.co.uk Frazer-Nash Consultancy http://www.fnc.co.uk Central Europe Trust Co. http://www.cet.co.uk Gartner Consulting http://www.gartner.com Charles River Associates http://www.crai.com Generator http://www.consultgenerator.com Commercial Advantage http://www.commercialadvantage.com Gibson Consulting Group http://www.gibsonconsultants.com Compass Management Consulting http://www.compassmc.com Glendinning Management Consultants http://www.glendinning.co.uk Cornwell Management Consultants http://www.cornwell.co.uk Goss Gilroy http://www.ggi.ca Credo Group http://www.credo-group.com Grant Thornton International http://www.gti.org Curzon & Company http://www.curzoncompany.com Greenwich Consulting http://www.greenwich-consulting.com Customer Relationship Management http://www.crmuk.co.uk Hartley McMaster http://www.hmcm.co.uk D.M. Management Consultants http://www.dmmc.co.uk Hatch Consulting http://www.hatch.ca Darwin Consulting http://www.darwinconsulting.co.uk HEDRA Limited http://www.hedra.co.uk Davies Consulting http://www.daviescon.com Heidrick & Struggles http://www.heidrick.com Delphi Marketing Associates http://www.delphimarketing.co.uk Hill Cannon http://www.hillcannon.com Diamond Management & http://www.diamondconsultants.com Hitachi Consulting http://www.hitachiconsulting.com Technology Consultants Hogg Robinson http://www.hoggrobinson.com DMR Consulting http://www.dmr.ca HOSCA Management Consultants http://www.hosca.co.uk Dunnett Shaw & Partners http://www.dunnettshaw.co.uk INTEC Management Ltd. http://www.intecm.co.uk EA Consulting Group http://www.e-a.co.uk Iris Financial Solutions www.irisfinancial.com Eastbridge Consulting http://www.eastbridge.ca IT/NET Consultants http://www.itnet.ca Edengene http://www.edengene.com Jacobs Consultancy http://www.jacobsconsultancy.com Efficio http://www.efficioconsulting.com Javelin Group http://www.javelingroup.com
Top-Consultant.com 16 Guide to Consulting Firms John Ormond MC http://www.jomc.co.uk New Management Network http://www.new-management-network.com Kaisen Consulting http://www.kaisen.co.uk Newburn Consulting http://www.newburn.co.uk Kaiser Associates http://www.kaiserassociates.com Oakland Consulting http://www.oaklandconsulting.com Keane http://www.keane.com Oakleigh Consulting http://www.oakleigh.co.uk KeyStar Consultancy http://www.keystar-consultancy.com Office for Business Architecture http://www.obaconsulting.com Knightsbridge http://www.knightsbridge.ca Opta http://www.opta.com Kurt Salmon Associates http://www.kurtsalmon.com PA Consulting Group http://www.paconsulting.com Lawrence Somerset http://www.l-s-l.com Pagoda http://www.pagodaconsulting.com LBI International http://www.lbigroup.com PennaChange Consulting http://www.e-penna.com L.E.K. Consulting http://www.lek.com PKF International http://www.pkf.com LogicaCMG http://www.logicacmg.com Plaut Strategy Consulting http://www.plautworld.com Logistics Consulting Parters http://www.lcp-ashlyns.com Princeton Consulting UK http://www.princecon.com Lumina Management Consultants http://www.lumina.ca Pristine Group http://www.pristinegroup.com Luther Pendragon http://www.luther.co.uk Probus BNW http://www.probusbnw.com Management Consulting Group plc http://www.mcgplc.com PRTM http://www.prtm.com Metapraxis http://www.metapraxis.com Qedis http://www.qedis.com Methods Consulting http://www.methods.co.uk QOD http://www.qod.co.uk Metra MartechLimited http://www.metra-martech.com QP Group http://www.qpgroup.com mi2g Software http://www.mi2g.com Realise http://www.realise.co.uk Molten http://www.molten-group.com REL Consultancy Group http://www.relconsult.com Monitor Group http://www.monitor.com Right Management Consultants http://www.right.com Moorhouse Consulting http://www.moorhouseconsulting.com Resources Management Consultants http://www.rmc-canada.com Morgan Chambers http://www.morganchambers.com/ Robert E. Nolan Company http://www.renolan.com Morgan Clarke Consulting http://www.morgan-clarke.co.uk RSM McGladrey http://www.rsmmcgladrey.com Morse http://www.morse.com SDG http://www.sdg.com Navigant Consulting http://www.navigantconsulting.com SECOR Consulting http://www.secorconsulting.com netdecisions http://www.netdecisions.com SGS http://www.sgs.com
Top-Consultant.com 17 Guide to Consulting Firms Softlab http://www.softlab.com Sphinx http://www.sphinx-group.com Steria http://www.steria.com Strategic Decisions Group http://www.sdg.com Top-Consultant.com SustainAbility http://www.sustainability.com The leading careers website for candidates seeking a Symbia http://www.symbia.com career within the management consultancy sector. Tata Consultancy Services http://www.tcs.com TCA Consulting http://www.tcagroup.com Tefen Europe http://www.tefen.com TopITconsultant.com The Consultancy Company http://www.the-consultancy.co.uk The leading careers website for candidates seeking a The Coverdale Organisation http://www.coverdale.com career within the IT consulting sector. The Maxima Group http://www.maxima-group.com The Technology Partnership http://www.techprt.co.uk ThoughtWorks http://www.thoughtworks.com Consultant-News.com Towers Perrin http://www.towersperrin.com A comprehensive news site covering all the latest Tribal http://www.tribalgroup.co.uk developments in the world of consulting. Turnkey Management Consulting http://www.tkmc.ca Viant/VIA International http://www.viaint.co.uk WCI Group http://www.wcigroup.com Consulting-Times.com Western Management Consultants http://www.wmc.ca A monthly publication bringing you the top stories Wipro Technologies http://www.wipro.com from the world of consulting - a synopsis of key devel- opments for those working in the consulting industry. Xayce http://www.xayce.com ZS Associates http://www.zsassociates.com
Top-Consultant.com 2 Guide to Consulting Firms