Management Consulting Discussion

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&quot who manages the team on a daily basis with direction given by a partner and sometimes a senior partner ("Director" in McKinsey speak).

F: are consultants ever going to shed their unfortunate jargon habit?

Originally Posted by Thomas

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AF: are consultants ever going to shed their unfortunate jargon habit?

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.

Originally Posted by Artisan Fan

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speak plain English and speak to client pain points.
QFI

Originally Posted by Artisan Fan

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It varies. Typically consulting is based on time and materials with consulting time being the most dominant. Client pays for travel costs. Strategy firms are very expensive with goal of a 10:1 return. At McKinsey my hourly rate was north of $500 (!) since I was in part a specialist. A 3-4 person team might cost $1million per month. Engagements typically run 2-3 months.

That's it?

Originally Posted by Artisan Fan

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since I was in part a specialist
what's your speciality AF?

Originally Posted by Matt

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QFI



You just need to shift your paradigm to understand.

Originally Posted by otc

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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.

Originally Posted by Matt

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what's your speciality AF?
Risk management and analytics.

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.

Originally Posted by MrG

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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.

Originally Posted by Bhowie

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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.

Originally Posted by crazyquik

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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.

Originally Posted by Bhowie

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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.

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?

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?