Management Consulting Discussion - Page 2

In non-strategy consulting rates run from $75 per month but generally run $150 - $200 per month for "consultant" level (ie. non-partner) fees. Typically you have a project manager (at McK called an "Engagement Manager") who manages the team on a daily basis with direction given by a partner and sometimes a senior partner ("Director" in McKinsey speak).

Realistically no. Some of the jargon is useful as it summarizes pithily a complex concept. When it gets out of hand it becomes an alphabet/buzzword soup. The strategy firms actually train consultants on how to give better presentations and meetings and a key concept is to speak plain English and speak to client pain points.

I've found it to be worse in technology, especially among system architects.

You just need to shift your paradigm to understand.

It was a bit more than I am saying but you do realize a top attorney makes that? Partners make much more. Risk management and analytics.

In a strategy house...Bain/BCG/McKinsey:

Consultants $150-200K plus bonus

Engagement Manager $250-300K+ plus bonus

Partner $400K+ plus bonus

Senior Partner/Director $500K+ plus bonus

and all get nice benefits.

Have not seen the margins but at least 50%+ for margins.

The head of our consulting team wears a bow tie frequently but that is a rare data point.

You lawyers have claimed the bow tie arena in my view.

Sadly a lot of consultants typically do a sport coat and no tie but collared shirt look. Not as elegant as I would like but there seems to be an element of we are here working and rolling in our shirtsleeves.

All the firms I have worked for are salaried. Obviously utilization becomes the key metric there. Think about it this way. The client is paying for both expertise and 3rd party informed opinion. On strategy issues, an informed opinion can literally save a company tens of millions of dollars. Thus, with a proven track record a firm can charge well above even what it pays its pampered but hard working consultants. Overhead is not minimal as nice offices are required but yet a major expense of travel is always paid by the client. Computers are cheap. If I had to guess, McKinsey spent a ton of money on high quality training and annual conferences and workshops. But even that is a great investment. More polished and up to date consultants representing "the firm" before clients. A lot of technology/consulting hybrid firms can also bundle consulting with other products and services driving the core business.