Consulting

Career
Primer.
20142015

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What do the data say about

consulting recruiting?
$25,000

Average base salary

Average bonus

$18,700

$16,000
$135,000

$116,200
$80,000

Pre-MBA Analyst/Associate

Average MBA Graduate

Consulting

Note: All compensation figures are based on placement reports from the classes of 2013 and 2014 at the top 15 MBA programs;
some variations exist within these reports, so attempts were made to harmonize data.

Percentage of graduates entering jobs with a consulting function at the top 15 MBA programs in 2013

Plain and simple, MBAs love consulting.

This is no doubt in part because the average median salary and signing bonus at the leading 15 MBA
programs are higher for consulting positions than for roles with other functions.

The Org Chart

Partner
Total compensation of $500K-$1M+

Principal
Total compensation up to $350K$500K
depending on seniority

Manager
Total compensation up to $250K
with base around $150K$175K

Consultant (Post-MBA)
$125K$135K plus $25K signing bonus
with performance bonus up to 30%

Business Analyst (Pre-MBA)

$75K$80K plus $5K signing bonus with
performance bonus up to 20%
Source: Multiple interviews with those in the field.
Note: Compensation figures for business analyst and consultant reflect a first-year salary and bonus.

Business Analyst/
Associate (Pre-MBA):

Business analysts are the most junior members of a case team.

Although their responsibilities vary by firm, in general, they are tasked
with grunt work that encompasses collecting and analyzing data.
On one day, a business analyst might interview a clients employees;
on another, he/she might model the impact of a regulation change
on a clients profit and loss statement. Business analysts spend a
lot of time using Excel and PowerPoint, and they are accustomed to
working late nights. As they advance to more senior analyst roles,
they tend to be given ownership of a work stream within a project,
case, or study. (Firms use different terms to describe client projects
and titles, and you would be wise to learn the unique vocabulary your
target firms use.) At the end of two years, business analysts can go to
business school, transition to another firm, take a role within a client
organization, or progress further within the firm.

Consultant
(Post-MBA):

After working for three years as a business analyst at a firm or

completing their MBA degree, consultants own a work stream in a
project. They are responsible for structuring data analysis and for
collecting and evaluating dataall with the guidance and feedback
of their project leader or manager. Although they tend to handle tasks
similar to those of analysts, they are given more responsibility and
often have greater opportunities to interface directly with clients. In
addition, they can be tasked with supervising junior team members.
Consultants are generalists, serving multiple industries and functions
rather than specializing in one, and they usually invest two to three
years in the role before they become project leaders or seek outside
opportunities. Because consulting firms have a pyramid-shaped
structure (i.e., a lot of consultants, fewer project leaders, and even
fewer managers), they tend to embrace an up or out culture in which
strong and continually improving performance is required to remain at
the firm. Consequently, a number of consultants leave the industry at
this stage.

Manager (Project
Leader/Engagement
Manager):

Project leaders possess significant consulting experience and are

responsible for the day-to-day management and final delivery of
projects. This position is sometimes regarded as the most difficult role
in this industry due to the simultaneous downstream and upstream
management required. For example, on the one hand, project leaders
are responsible for solving problems that arise with the project,
structuring the work stream, ensuring delivery of the final project by
the case team, and managing and developing junior team members.
They also interact with clients, which means they must take part in
potentially lengthy meetings to develop relationships. On the other
hand, project leaders must report to the partners who sold the case.
Project leaders must ensure that the case work is done according
to the firms quality standards and in a timely fashion. At this career
stage, specialization occurs. Project leaders tend to start focusing on
one or more practice areas, which are categorized by industry (e.g.,
consumer goods, technology, financial services) and by function (e.g.,
supply chain).

Principal/Associate
Principal:

Principals are the bridge between project leaders and partners;

one can think of them as partners in training. The big change
that happens at the principal level is a shift of focus from project
management to client management. Similar to project leaders,
principals oversee projects, which means they are responsible for
the final delivery of case work. However, they tend to work on more
complex and high-profile cases that require extensive interaction
with executives. In addition, principals often take the lead in writing
and coordinating proposals and participating in sales meetings. They
are in active contact with their set of key clients to generate new
leads. They have built significant market knowledge in one or more
areas, demonstrate thought leadership, and build the firms offerings.
Principals also take office leadership roles such as head of university
recruiting or head of the social committee. Although promotion
horizons vary by firm, the duration of the principal role is typically two
to five years.

Partner/Director:

Partners are owners of the firm and are usually elected to their position
by the rest of the partnership. Their primary responsibility is to sell
case work, maintain client relationships, and deliver project work to
the client. They have the ultimate authority to approve work, and they
manage relationships with clients at the senior most level (e.g., they
frequently lunch with CEOs). They are typically aligned with one or
more practice areas and take leadership of them. In addition, partners
have significant responsibility for thought leadership (e.g., publishing
articles in Harvard Business Review, bcg.perspectives, or McKinsey
Quarterly) and additional activities within the firm such as training,
recruiting, and staffing (i.e., placing consultants on cases). The partner
role can encompass different levels. For example, some firms have a
senior partner role that requires several years of employment within
the partnership before advancement, and promotion depends on
performance, sales, and service to the firm. In addition, the up or
out culture persists even at this level; partners are still required to
continuously improve and advance to maintain their position within the
firm.

What is the job?

Management consulting firms provide outsourced brains to assist clients with
tricky or sensitive problems. Consultants advise clients on strategic changes
and develop analytical answers to client questions. As a consultant, you might
help formulate a new corporate strategy for a B2B manufacturing company,
conduct strategic due diligence for an acquisition in the medical device industry,
strategize on a new product launch in a remote geographic region for a bank,
troubleshoot brand underperformance for a consumer goods company, or help
retool the supply chain for a food and beverage distributor. You also might help
a company with downsizing or with operationalizing a new strategy. Depending
on the firm and the types of projects to which you are assigned, you may
find yourself tackling a new challenge in a new location every three weeks or
camped out in Kalamazoo for an entire year.

No, really, what is the job?

All this may sound pretty sexy, but what does formulate a new corporate strategy for a B2B manufacturing
company or troubleshoot brand underperformance for a consumer goods company really mean? Here
are some project experiences of actual first- and second-year consultants at McKinsey & Company, Bain &
Company, and BCG (the Boston Consulting Group):

We had to help decide which storefronts

My job was to interview constructing

of a car parts company should be closed or

contractors to help decide if a major home

expanded and where the company should

improvement center should enter the lumber

build more. As a first-year consultant, I

market. I had to help them understand

looked at sales data, population data, and

whether they could expect to get enough

local competition.

business from medium- to large-scale

contractors to justify the costs associated

We advised a packaged foods company on

with entering the new market and reaching a

improving its in-store placement. For two

different customer base.

weeks, I actually drove around to various

grocery stores and watched what customers

A hospital chain wanted to respond to the

did when they approached the hot dog

threat of surgery centers taking away its

aisle. I conducted surveys. A few times, the

most profitable procedurescertain elective

storekeepers kicked me out. I turned the

ones that help subsidize the less sexy

pictures I took, survey data, and testimonials

but necessary units like trauma and burn

into my part of our final PowerPoint

centers. As a consultant, I had to determine

presentation to the client.

the profitability of every kind of insurance

transaction and see if we could partner with

A technology products company had a new

these centers to maintain profits.

technology, and they needed to decide what

to do with it. I helped assess the market

A new CEO was making changes to

potential of this technology to replace

the organizational structure in a large

activities people were currently doing on

conglomerate consumer goods company. I

paper. I had to guesstimateusing real data

had to work with the top managers in HR

and modelingthe potential applications and

and finance to make difficult decisions about

model out which one had the biggest payoff.

which roles to keep, which to restructure,

and which to eliminate. Then I had to help
them manage the communication to staff
about these changes in a way that disrupted
headquarters function as little as possible."

What is good about

the job?
The siren song of consulting is variety. At most firms, at least in your first couple
of years, you will be forced to cross-trainjoining project teams working across
functions, industries, and geographies. The broad exposure you thereby gain
to a wide diversity of business problems prepares you to face any number of
challenges throughout the rest of your career and trains you to think about them
strategically, holistically, and creatively.

But a job in consulting offers other perks as well:

The opportunity to travel

Generous compensation and benefits
Exposure to C-level executives and issues early in your career
A well-defined career path: Business Analyst
Principal

Consultant

Manager

Partner

A high-powered network of colleagues and clients

Outplacement support when you are ready to transition to your next job

10

But surely the job has

pain points, right?
A consulting role does involve some potential drawbacks:

The necessity of travel

An unpredictable schedule and long hours
A steep learning curve and an up or out culture
The possibility of a new boss on every project
A continual focus on areas for development

A job in consulting presents one of the best opportunities for growth and learning at an
early stage in your career. The downside is that you almost never have a chance to sit
still. So as soon as you have established yourself as an Excel whiz, for example, you
will then be encouraged to tackle client relationships and human dynamics on your
next project. Relying on the same skills that make you a great entry-level consultant
will make you a poor project manager; at each level, new skills are required. The job
constantly challenges and stretches you, and some consultants complain that the
unceasing focus on weaknesses can get tiring after a while. Add to that the necessity
to impress each new boss or project manager you encounter, and a consulting job
could definitely take a few years off your life, especially if you do not approach it with
the right mind-set and maintain a sense of humility and humor.

11

What is the secret to

success?
The one thing you must understand to hit the ground running in consulting is how the culture works.
Consulting culture is both entrepreneurial and hierarchical, as paradoxical as that may seemthese two
concepts truly can and do coexist. You can certainly create your own destiny, chart a course for yourself in
the direction you want, and choose the kinds of work you do. At the same time, however, you must respect,
understand, and navigate the hierarchy: you will need to cultivate relationships with people senior to you,
identify mentors and champions who will lobby to work with you come staffing and promotion time, and
establish a good reputation so that you can steadily advance your position. No one will spoon-feed you,
and if you are not looking out for your career development, no one will. You will spend a big part of your first
year learning to communicate in the style of your firm and to follow its processes, hierarchies, and norms.
Dedicate yourself to mastering the network, politics, and expectations of the job, and you will lay a foundation
for medium- and long-term success.

The burden is on you to work the

political environment, get staffed,
build a network, and create a
long-term place for yourself
in the firm.

12

Who are the big fish?

When most people say, management consulting, they are referring to MBB: McKinsey & Company, Bain &
Company, and BCG (the Boston Consulting Group), also known as the Big Three. These three firms typically
claim the majority of post-MBA consulting hires. While they have much in commonthey all seek to hire
the best and brightest, tackle strategic C-Suite problems, and offer broad exposure to diverse industries,
functions, and geographies (read: require some degree of travel)culturally, they vary tremendously. If you
read between the lines, you will see that the firms key messaging about themselves on LinkedIn reveals these
differences (make special note of the parts we have bolded in the following descriptions):

Our scale, scope, and

We work with top

Our customized approach

knowledge allow us to

executives to help them

combines deep insight into

address problems that no

make better decisions,

the dynamics of companies

one else can. We have deep

convert those decisions

and markets with close

functional and industry

to actions, and deliver the

collaboration at all levels of

expertise as well as breadth

sustainable success they

the client organization.

of geographical reach.

desire.
Applying a clean slate

The oldest, largest, and

The youngest and smallest of

approach to each client

best known of the Big Three,

the Big Three, Bain & Company

problem, BCG leverages

McKinsey & Company

has the strongest firm culture

its consultants intellectual

leverages its deep experience

stressing camaraderie and

horsepower to create

to provide relevant solutions to

teamworkand places greater

innovative solutions in

client problems.

emphasis on clients market

collaboration with clients.

performance as a measure of
Buzzwords:

Buzzwords:

success.

Experience

Academic

Structure

Buzzwords:

Innovative

Organization

Camaraderie

Collaborative

Teamwork
Results

13

Who are other notable

players in this space?
Major changes in the landscape of professional service firms over the past few decades have made the rest
of the management consulting field a little confusing to follow, but here are some other significant players:

Deloitte, another huge recruiter of MBA talent, is

Formerly the business and technology division of

the management consulting division of Deloitte

defunct Big Five accounting firm Arthur Anderson,

Touche Tohmatsu Limited, one of the Big Four

Accenture offers technology and outsourcing

accounting firms. It acquired BearingPoint,

services in addition to management consulting,

KPMGs management consulting division, in 2009

making it the most technology-focused firm on this

and Monitor Group, the firm founded by Michael E.

list.

Porter of five forces fame, in 2012.

Booz Allen Hamilton provides provides

management consulting, technology, engineering,
Strategy& merges the management consulting arm

and security services to civilian government

of assurance giant PwC (PricewaterhouseCoopers)

entities, including defense and intelligence

with the recently acquired (April 2014) Booz &

agencies. The commercial strategy division of

Company. If the MBB set had a fourth member that

Booz was spun off in 2008 to become Booz &

practices fairly pure strategy consulting to top firm

Company, which was later acquired by PwC (see

management, it would be Strategy&.

the Strategy& description).

A.T. Kearney is a global team of forward-thinking,

The current Oliver Wyman is the product of a

collaborative partners that delivers immediate,

merger between Mercer Oliver Wyman, Mercer

meaningful results and long-term transformative

Management Consulting, and Mercer Delta in

advantage to clients. Similar to the firms we have

2007. Originally founded in 1984 by two former

already discussed, A.T. Kearney consults on the

Booz Allen Hamilton partners, Oliver Wyman is the

CEO agendaoften with a more operational focus

subsidiary of public company, Marsh & McLennan

than its purely strategic peers.

Companies.

14

How do I get the job?

Each firm has its own nuanced approach to recruiting, but the broad strokes are the same. You will need to
demonstrate the following:

1.

Strong intellectual horsepower and a track record of success in a

challenging field

2.

An ability to structure and analyze ambiguous problems in an

improvisational manner, to work adeptly with numbers and calculations,
and to clearly explain your thought processes

3.

Persuasive and analytical communication skills that engender confidence

and trust in you

In addition to having strong undergraduate grades and a good GMAT score (typically 710 or higher, especially
at schools with grade nondisclosure, where the only recent data point firms can use to assess your intellect is
your GMAT score), you will need to perform well in case and behavioral interviews. Some MBA students say
that prepping for case interviews is like taking an entire extra class during recruiting season. However, most
also note that the process is worthwhile in its own right because it teaches them to think in a structured way
and communicate their ideas clearly.

You will also want to network with your target companies. This includes attending company-sponsored
events, befriending classmates who have worked at the firms, and capitalizing on every opportunity to meet
firm representatives through informal and club offerings. Taking these steps to connect with the companies
for which you want to work is a necessity no matter which industry you target. Doing so helps you and the
firm(s) assess mutual fit and paves the way for your success in interviews.

If consulting is your chosen industry for a summer internship or post-MBA position, get started now building
your network, conducting informational interviews with classmates and friends at target firms, creating a
consulting-targeted resume, and preparing for case interviews. To learn more about how an MBA Career
Coach can assist you in securing your desired position through elite training, targeted skill development,
and expert guidance as you navigate the recruitment process, schedule a free consultation with us at www.
mbacareercoaches.com/consult/.

15

Do you know that your career wont just advance on its own?
If you want to get ahead, you need

Active Career
Management.
No matter where you are in your career, you need to:

Explore Your Values

Look closely at your
experiences and what truly
matters to you to chart

Build Relationships
Network effectively to create
new opportunities and earn
important invitations.

your course at each

career step.

Assess
Performance
and Chart
Growth
Leverage what you already do well
and grow where you need to improve.

Talk About
Yourself
Promote accomplishments
and discuss failures with power,
inspiration, and humility.

Wherever you are in your career, an MBA Career

Coach can help you achieve your ambitions through
tailored structure, training, and thought partnership
as you actively manage your career.

www.mbacareercoaches.com

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