A few months back, HC demystified investment banking, but now we’re taking on the equally coveted and mysterious industry of consulting.
Highly popular among new grads, entry-level positions at consulting firms are extremely competitive and come with sizable payoffs. Big name firms like McKinsey & Company, Bain & Company, The Boston Consulting Group, Monitor Co., Deloitte Consulting, Booz & Company and Accenture recruit up-and-coming talent from universities across the country each year.
And yet, consulting remains an enigmatic and poorly understood industry. What does ‘consulting’ entail? Who hires a consulting firm? What is it like to work at one of these firms?
Let’s break it down.
Gettin’ hip to the lingo
Though consulting covers an incredibly broad range of topics, businesses, clients and fields, there are some terms every wannabe consultant (or curious collegiette™) needs to know.
Case Interview – Rather than simply ask you to name your strengths and weaknesses, interviews for consulting positions typically involve a practical portion. Interviewers will present interviewees with a hypothetical problem, which the interviewee must solve under time pressure. Most questions test your ability to think logically, creatively, and quantitatively. Others are just weird. These types of interviews are notoriously stressful, though running through some practice cases at your school’s career services office can help.
Perceived expertise – This quality is essential for any consultant. Essentially, it means that you seem to know enough about a given field (like the environment, management strategies, cost efficiency, etc.) to come up with good solutions, give good advice and gain your client’s trust. This perceived expertise is built up over a career.
Deliverables – Stuff you show to your clients. Anything you present, show, implement or do to get from point A to point B on a project you’re working on.
Due diligence – Compiling a complete and comprehensive picture of a client, business, firm, model or strategy in order to give the best advice for future expectations. If you plan on going into any field that’s research-based, get used to this one.
Elevator test or taxi test – The concept that good ideas are concise, clear, and easy-to-understand. If you can explain your plan in the span of an elevator or taxi ride, you’re in good shape.
For some more helpful consulting phrases, check out this site: http://managementconsulted.com/core-content/dictionary/
So what do consultants do?
Rahul, a junior at Cornell University who interned last summer for a consulting firm explained it this way: “Being consultant is exactly the same as being paid to think.”
Put another way by Lindsey, a senior who interned with a leading consulting firm last summer and will be working as a consultant full-time after graduation, “Consulting is like being a doctor for companies. Whether they are ill, need a checkup or want to compete in a marathon, we are there to help them strategically succeed.”
Essentially, consultants are hired in order to fix problems, make operations more efficient, cut costs or really do anything a client needs. A firm’s clientele can be highly diverse including, as Rahul put it, “every type of organization that exists.” For the larger firms, like the one Lindsey worked for, clients included Fortune-500 companies as well as some work with non-profit organizations. An organization (a corporation, hospital, non-profit, firm, government, etc.) will choose a consulting firm that caters to its specific needs. For example, if a big oil company wanted to cut down on its environmental impact, it might hire a firm that specializes in environmental consulting, like Roux Associates.
When you’re just starting out, expect tons of research (in order to build up your perceived expertise). At more senior levels, further emphasis is put on building client relationships. LeAnn, a recent grad who has worked at a global, top tier consulting firm for several years, offered this description: “Our day-to-day work is likely to have both a problem-solving and analytical component (e.g., market research, data analysis, prioritization exercises), and a relational component (working closely with clients to find answers that will work in their context).” Essentially, expect to do tons of research (learn to love LexisNexis), give presentations, organize proposals, meet with clients and crunch a lot of numbers.
“Often the day-to-day duties of a consultant are oriented around two core fronts,” Rahul said. “First, the consultant needs to make progress on whatever deliverables are expected on the engagement timeline. Second, the consultant needs to keep tabs on the client to make sure that the expectations are set in a reasonable manner as well as adapting deliverables to the client’s needs.”
Andrew, a junior at Cornell University who interned with an environmental consulting firm, stressed the need for consultants “to make sure that existing clients are happy with the work that is being done. He or she also needs to pitch the firm’s work to potential clients. Within the firm, different consultants will have different primary focuses. For example, project managers will do more site visitations and salesmen will do more pitches to potential clients.”
In other words, a consultant needs to be goal-oriented, work with tight deadlines, be realistic and be able to juggle several needy clients.
Sound like you? Keep reading.
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Who are they looking for?
Consulting firms place a lot of value on ‘human capital,’ or the talents, abilities and skills of their employees. Consequently, they’re picky and tend to only consider candidates who have three main traits:
- An analytical brain– A consultant needs to be able to think on many different levels at the same time to assess the consequences and costs in the short and long run of implementing new strategies. There is no universal answer from organization to organization, so a consultant has to have the ability to come up with solutions tailor-made for each client.
- A mathematical brain– Being able to perform quantitative tasks is crucial for a consultant. Clients require numerical proof that a new strategy will make a positive impact on their organization.
- A Technological brain– According to Rahul, in order to work at a consulting firm like Deloitte, which specializes in management consulting, “at minimum, you need to be able to understand the basics of computer science, economics, finance, accounting, marketing and strategy.” Tech savvy and the ability to understand new programs quickly are essential for any firm.
According to LeAnn, no two consultants bring the same exact skill set to the table, but the most successful ones typically have IQ (intelligence quotient) and RQ (rational quotient). The first, said LeAnn, is the “ability to structure analyses and find data to support thoughtful recommendations.” RQ measures a person’s “ability to build trust, communicate effectively, and work well with people.” EQ (emotion quotient) is often added to that list since it measures how well someone reacts to stressful environments, testy clients, and difficult co-workers.
A specific knowledge of a particular field (like the environment, education, etc.) is helpful, but not necessary when you’re just starting out. As you do research around the clock on a subject, you’ll acquire the necessary perceived expertise.
Perks, you say?
If you consider a sizable starting salary (estimated to be between $55,000 and $80,000 per year with a BA according to www.careers-in-business.com), the ability to meet with top-level execs and clients, and travel perks, then yes.
Making a career out of consulting often involves living large portions of the year away from your home address. “Most full-time consultants will be on the road four days a week, and as such, you’ll be racking up an enormous number of airline and hotel points,” Rahul explained. “Every time you go to a hotel you will be upgraded to a suite, every time you fly you will be upgraded to first class. The firm also pays for all your meals (and drinks often enough) during your trips, so your costs will be very low.”
What are you going to do with all of your airline and hotel points? Why not go to Hawaii? “The firm will let you cash in your ticket back home and spend that money on a flight to somewhere else,” Rahul said. “I had friends who were working in Los Angeles (out of the New York office) and they took ‘alt weekends’ to Hawaii and Japan. You can probably book a room on points, and in effect, you might just have to spend on drinks and food. Literally your perks are whatever you can get through the rewards programs. If you’re smart, you’ll never spend a dime.”
How do I get a consulting job on internship?
Most of the deadlines for internships and entry-level analyst positions at the big consulting firms have already passed (most are due in early January with interviews spread over late January and early February), but it’s never too early to start planning for next year!
LeAnn described the process she went through when she first applied for an entry-level position: “Most of the top consulting firms have multiple rounds of interviews. The interviews focus not only on your personal experience, but also aim to replicate ‘real-life’ business case problems, where you work through a case during the interview. This makes the experience quite different, with many people prepping for these ‘business case’ problems in advance. I found this process invigorating and interesting, as you have the opportunity to get a real ‘taste’ of what life as a consultant is like!”
Here are some helpful tips for landing a consulting job or internship:
- Start small– Even though the big consulting firms come with the biggest perks, they also come with the steepest competition. You may want to consider lending your talents to a smaller, “boutique” firm. These firms may offer more flexible hours, the ability to work closely with executives and senior analysts, and the possibility for a more personal recommendation letter. They can also be a stepping stone if your ultimate goal is one of the top firms.
- Take an interest– Though expertise in a specific subject is not always necessary, it can only help. If your passion is cutting down on toxic waste and you’re applying for an environmental consulting firm, make sure your interviewers know it.
- Network– The old saying “it’s not what you know, it’s who you know” is at least half true. Make as many contacts as possible with the firms you want to work with, follow up with them, ask them for information and do your best to make a lasting, good impression.
- Pick a project– Do some digging on projects the firms you’re aiming for have worked on and take interest in them. When it comes time to express your interest in working at a particular firm, your knowledge of what it has done in the past is the ultimate compliment.
- Brush up– Take a class or two in math or computer science so that you know the basics.
- Join a group– Check to see if your school operates a student-run consulting firm. If not, start one!
- Every school and every firm has their own way of organizing the application process. Some only require you to apply through the school OR the firm, and others require both. For guidance, consult a consulting pro in your school’s career services center or, if you can, get the contact info for the firm’s recruiter for your school. For even more info about the application process, the firm, and what opportunities are available, check out the recruiting or careers section of firm websites (like this incredibly helpful one from McKinsey).
And now you know what consulting is all about!
Sources
College students around the country
http://managementconsulted.com/core-content/dictionary/
www.careers-in-business.com