An Introduction: A Career in Consulting for MBA Graduates in 2020

An Introduction: A Career in Consulting for MBA Graduates in 2020

What is Consulting?

Business dictionary defines consulting as providing expert knowledge to a third party for a fee. In other words, consulting means giving advice on a particular subject. But what does consulting actually have to do with management of a company? Firms do not always have the information, resources, and capabilities to call critical decisions, bring about a necessary change, and resolve complex problems. That is where the role of consulting comes in. Consulting is about helping a firm attain its target by providing advice related to matters that are beyond its expertise. This means that a consultant is a professional who has some level of expertise that a firm finds valuable and is willing to pay the consultant to access their expertise.

What does a consultant do?

You now know that a consultant helps a firm. However, a firm may need help in different areas depending on the scope and nature of the business. An engineering firm may need help with financial matters. An electronic gadget manufacturer may need assistance in design of a new product. A startup struggling financially may require guidance about its strategy. Therefore, the answer to the question that what does a consultant do, depend on the space where a firm is seeking advice. Also, a single individual and/or firm cannot be expert in all business areas so based on the area of expertise, management consulting can be categorized into multiple types. Below we share some of the consulting roles that a consultant may specialize in:

What is the Consulting Process?

Till this point we have focused on what is management consulting and what does a consultant do but now let’s look at how consultants help a company. All consultants follow a specific step by step approach or process to advice the client. It begins with meeting the client and understanding the problem or needs of the client. Second step is collecting information about the client, the problem(s), business environment and anything that may be relevant to the needs of the client. This information is then studied and analyzed from a diagnostic point of view to identify important factors for decision making, or to identify the causes for the problem. Based on this analysis, a solution or an action plan is designed for the firm. Consultants then present their recommendations to the executives of the company and assist in implementation of those recommendations. A firm may employ the consultant for one or multiple steps in the consultancy process.

How is the Career in Consulting After MBA?

Different firms hire fresh MBA graduates at different levels which again vary firm to firm. Typically, fresh MBA graduates with some prior work experience are hired as Associates, a level above Analysts which is an entry levelposition in the consulting firms. The basic difference between an Associate and an Analyst is the compensation level, however the role or the job performed by the individual is usually the same. It involves collecting data, working on analysis and supporting consultants and partners. Working in a consulting firm as a fresh MBA graduate means you would be doing cold calling, conducting market surveys, interviewing customers and employees of client, generating cost and revenue scenarios, maintaining databases, creating presentation and coordinating meetings with the clients. Basically, at this level in the consultancy career a fresh MBA graduate learns the consulting toolkit to be able to lead projects in future.

There is no typical day in life of a consultant. Every day is different full of adventures and new learning. The client projects do not always match the expertise, so consulting job brings a variety of professional challenges. Consultants spend most of the time at client’s office. The length of workday depends on the project type, timeline, management and above all culture of a firm. The routine maybe stressful and may require some compromises with personal life. But on the good side, work takes consultants around the world and provide the opportunity to experience various cultures.

How much do consultants earn after MBA?

How much do consultants earn is a very difficult question. While obviously, salary depends on the career level of the consultant, it also differs across different industries, firms and locations. Consulting is a very diverse field therefore an average really doesn’t give true idea of how much you can make as a consultant. However, for the purpose of comparison with other jobs we can consider the average. Looking at the estimates by Indeed, Glassdoor and Payscale, we find the average management consulting salary to be around $92,867. On the other hand, average white-collar job salary is $63,076. Looking at these numbers it is safe to say that consultants earn quite higher than any other white collar professional. The insights above still does not answer the question that how much would you earn if you pursue career in consulting after MBA? Let’s get specific and look at the salary ranges of famous consulting firm for MBA graduates:

• Deloitte - $145,000 with a performance bonus of around $31,900
• Accenture - $147,500 with a performance bonus of around $44,400
• McKinsey - $152,500 with a performance bonus of around $35,000
• FTI Consulting - $120,000 with a performance bonus of around $30,000
• BCG - $147,000 with a performance bonus of around $44,100
• PwC - $135,000 with a performance bonus of around $27,000
• Bain Consulting - $148,000 with a performance bonus of around $37,000
• IBM Consulting - $147,500 with a performance bonus of around $14,750

Why become a consultant?

We have covered the role, responsibilities and work life aspects of an entry-level consultant, but you may be still thinking if consulting is right for me? You may be having a difficult time deciding whether you should choose to be a consultant? Here are a few reason why we think you should pursue a career in consulting after MBA.

• You will have the opportunity of working with CEOs and other senior executives right from the entry stage, which would equip you with valuable skills required to become an executive yourself.
• Consultants work on the toughest problems faced by a company which means that your will be able to create positive impact on the client’s business and the society.
• You will never get bored in a consulting role. There will be project changes every 3-6 months and each of which will present you with a unique challenge in a different industry.
• If you enjoy networking and making new friends, then you would love a consulting job. Working with multiple clients will provide you the opportunity to develop strong ties and close connections across the industry.
• Even after completing your MBA, if you are not sure what you should do, then consulting might be exactly what you should pursue. It is a safe way to figure out which role, industry and location resonates with you the most..
• Once you decide to leave the consulting arena, you will have countless exit opportunities with your vast experience across multiple industries.
• Consulting job comes with more flexibility in work. So, if you are looking for independence and control then you should choose to be a consultant after MBA.

If you have decided to pursue career in consulting after MBA, then ConsultingAfterMBA is the right place for you. In upcoming posts, we will cover the skills and competencies required to become a consultant. We will guide you on how to develop a consulting resume, look for a consulting job and give you tips on how to ace your consulting interview.