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Management Consulting Discussion

Discussion in 'Business, Careers & Education' started by Artisan Fan, Feb 7, 2011.

  1. Matt

    Matt Senior member

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    since I was in part a specialist
    what's your speciality AF?
     
  2. Artisan Fan

    Artisan Fan Senior member

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    QFI

    [​IMG] [​IMG]

    You just need to shift your paradigm to understand.
     
  3. Artisan Fan

    Artisan Fan Senior member

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    That's it?
    It was a bit more than I am saying but you do realize a top attorney makes that? Partners make much more.
    what's your speciality AF?
    Risk management and analytics.
     
  4. Bhowie

    Bhowie Senior member

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    F can you speak to the difference between what the client is billed at for a consultant's time versus what the consultant is actually paid? I imagine most consultants are actually salaried but the company I work for is not. Any relevant information you can share on this topic would be of interest.
     
  5. crazyquik

    crazyquik Senior member

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    [​IMG]

    My bad.

    Uh...I mean...Given this meme has reached a point where it's hard to see its market share growing any further, the real value will likely be leveraging its near ubiquity while adapting to the fact that it has reached a saturation point. With this in mind, I sought to tap into the brand recognition it retains while providing a product that better reflects the evolving marketplace.



    I'm like a cross between Stephen Hawking and Kid Rock.


    I don't think I understand. Can you use a 2x2 matrix/SWOT analysis to explain?

    Not enough bowties amongst consultants. Heathens, rather.
     
  6. Artisan Fan

    Artisan Fan Senior member

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    AF can you speak to the difference between what the client is billed at for a consultant's time versus what the consultant is actually paid? I imagine most consultants are actually salaried but the company I work for is not. Any relevant information you can share on this topic would be of interest.

    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.
     
  7. Artisan Fan

    Artisan Fan Senior member

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    Not enough bowties amongst consultants. Heathens, rather.

    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.
     
  8. Artisan Fan

    Artisan Fan Senior member

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    AF can you speak to the difference between what the client is billed at for a consultant's time versus what the consultant is actually paid? I imagine most consultants are actually salaried but the company I work for is not. Any relevant information you can share on this topic would be of interest.
    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.
     
  9. ibleedwhite

    ibleedwhite Senior member

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    F - can you speak more towards Healthcare consulting?

    Currently I work for a hospital corporation in mergers, acquisitions and start-ups of outpatient clinics. How can I work towards jumping in the consulting role at a consulting firm?
     
  10. Milpool

    Milpool Senior member

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    What kinds of "red flags" do you look for that would signal it is time to tell the client that you can't help them?
     
  11. A Y

    A Y Senior member

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    A friend of mine got her PhD. in chemistry and joined one of the big 3 consulting firms after graduation, and she didn't have any business training. She did well there, and probably would have gone very far had she decided the stress, 80-90-hour weeks, and weeks away from home was worth it. She was there for probably 5 years.

    She didn't use a single bit of her chemistry training, and was basically an Excel and PPT jockey. She's now at a more regular job that does involve chemistry and is a lot happier.

    The company recruits a lot of science and engineering types for business consultants.

    --Andre
     
  12. MasterOfReality

    MasterOfReality Senior member

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    What kinds of "red flags" do you look for that would signal it is time to tell the client that you can't help them?

    Look right from the beginning, when they ask you for a proposal.

    If they cannot supply a scope of work, then be prepared for difficult times as then the client will try and worm their way out of paying for certain items or expect you to do out of scope work for the fixed price.

    I recently sent off a proposal that was requested by a client and they didn't supply a scope. I put together a notional scope of work on the provision that it may be modified by us where necessary (this was for a geotechnical engineering pre feasibility study for two open pits and one underground mine), keeping in line with our time and expense charging. So essentially it becomes a non fixed-cost job.

    Also look at the size of the company and where they are from. If a small, junior exploration company with no history comes to us and asks for a proposal for $2 million worth of work then we will most likely demand a certain up front payment if they accept the proposal, or if they don't pay at the end we will withold the work from them. We had a recent experience with an Indian company where they asked us to submit proposals, and then tried to haggle on price. Sorry fellas, thats our rates and they are fixed and we dont price match with other consultancies. They dithered a bit and then asked for further proposals and then started to do the same. We ended up dropping it and politely telling them to look for anothe consultancy.
     
  13. Artisan Fan

    Artisan Fan Senior member

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    AF - can you speak more towards Healthcare consulting?

    Currently I work for a hospital corporation in mergers, acquisitions and start-ups of outpatient clinics. How can I work towards jumping in the consulting role at a consulting firm?


    If you don't have an MBA or other advanced degree, you might want to get that first. Studying on case interviews also helps. Most important is being able to present and genuinely have deep experience in solving problems, presenting the methodology you used, and presenting results in terms of client impact. Always good to be published and also have speaking engagements if possible.
     
  14. Artisan Fan

    Artisan Fan Senior member

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    What kinds of "red flags" do you look for that would signal it is time to tell the client that you can't help them?

    The biggest is lack of buy-in by the key stakeholders. Also, you want to have some impact and ideally one you can measure even if there is a qualitative element. Also, you really don't want to be hired to validate existing mgmt ideas but rather dispassionately evaluate the options.

    Hard to explain in a reply but there are techniques and body language you can look for.
     
  15. Artisan Fan

    Artisan Fan Senior member

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    What would you say the main value proposition of management consulting is for the firms that hire them? Can that value be monetized? Can lessons learned generate sustainable increases in EBITDA growth, and can lessons learned in one division be leveraged into other areas and transformed into increased EVA there as well? Discuss.

    I want to come back to this. In many consulting projects the client is happy if you improve their KPIs (key performance indicators). Things like customers acquired, lower cost per acquisition, lower funding costs, lower credit defaults, etc.
     
  16. cross22

    cross22 Senior member

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    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).
    What do these rates mean? $200k per month per team?
    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).
    In a strategy house...Bain/BCG/McKinsey: Consultants $150-200K plus bonus Engagement Manager $250-300K+ plus bonus
    Seriously? EM makes that much more than the consultants? Also, that is it? $200k for a consulting life? Working how many hours a week?
     
  17. Artisan Fan

    Artisan Fan Senior member

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    What do these rates mean? $200k per month per team?

    Seriously? EM makes that much more than the consultants?

    Also, that is it? $200k for a consulting life? Working how many hours a week?


    Those are annual salaries. Yes, EM and Partner can be nice jumps up. Hours vary but figure 60-70 on average but a lot of living expenses paid when on the road.

    It's a road warrior life but if the work is interesting it is not that bad. Lifestyle is one of the big things the Big 3 work on but there is a sacrifice. The learning can be unequaled.
     
  18. cross22

    cross22 Senior member

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    Those are annual salaries. Yes, EM and Partner can be nice jumps up. Hours vary but figure 60-70 on average but a lot of living expenses paid when on the road.

    It's a road warrior life but if the work is interesting it is not that bad. Lifestyle is one of the big things the Big 3 work on but there is a sacrifice. The learning can be unequaled.


    Ok sounds like the EM is not just a certified project manager and has some expertise that is valuable to the outcome of the project.

    What are we talking about in term of bonuses?
     
  19. blofeld

    blofeld Senior member

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  20. Milpool

    Milpool Senior member

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    Any good books on consulting, particularly if they are not specific to management consulting, but rather more generalized?
     

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