Very helpful! Q: I can relate to this mindset since it’s very close to what you see in corporate finance. There’s a trade-off if you want to work in operational strategy consulting: you have a very good salary, higher than at companies like Accenture, for instance, but slightly below what you would earn at “pure” strategy firms like McKinsey. It’s for smart people who can roll up their sleeves and literally work alongside a client to solve countless tedious problems and march towards a common goal. type of role? It is a critical competitive advantage that most firms/professionals/consultants try to develop yet eventually quit. You have a lot of interaction with your clients because you’re actually working with them to implement the project and you spend a lot of time in meetings, leading projects, and developing relationships, so soft skills are definitely required. interviewers often think. Our clients operate in Financial Services, including investment banking, retail banking, capital markets and insurance. What if you want to advise companies but you think that traditional management consulting and investment banking add no value? So yes, junior consultants can add value to projects. I don’t specialize in this area, so I can’t make concrete suggestions. It’s all about recommendations and execution, as we believe the two are closely linked. Now let’s go for a drink and talk about your “recruiting opportunities” at your firm if you don’t mind. Here are some companies that do mostly that type of implementation work: Deloitte Consulting, Accenture, Capgemini Consulting. Also, any recommendations for operational consulting firms target schools would be great. Follow your gut! If you're new here, please click here to get my FREE 57-page investment banking recruiting guide - plus, get weekly updates so that you can break into investment banking. Hi, I just received 2 offers, a Operations Analyst (back office) at a Branded Investment bank and a Management Consultant at a small boutique consulting firm. If you have already been offered a position in audit for financial services with a big4 and your goal is to work in corp fin for that same company, I think you have a chance of transitioning to the corp fin team as long as you network a lot internally and can prove your value to the team. Ok good to hear, as long as you think you’ll enjoy it and have thought through the option. You are absolutely right on products PE firms typically engage DDV. To continue on the private equity train of thought…. So that’s definitely one exit opp. I’ve been doing it for a little over 2 years now. The finance department is very influent when it comes to making decision for the pricing of product, new acquisitions etc… I’m working on an article on the different departments in Corporate Finance so stay tuned for more info! Principles like decision trees, MECE and hypotheses led research are used. The implementation team will need to find a way to make the strategy work. Plus i am also biased in favour of bluchip because you get alot of exposure in different areas(esp when you are an intern) and there are many ways of looking at things rather than a narrower approach at a big 4. Is it really necessary to get an MBA at this point? I also work in operational management consulting with a major IT consulting company. All content remains the property of FIRMSconsulting LLC. Can they really be that different? It’s particularly true in a small firm like ours, but even at bigger companies, it’s easier to stand out and advance because you have more results to point to in our line of work. Getting an MBA at a target may help you rebrand yourself https://www.mergersandinquisitions.com/business-school-rebranding/. But sometimes when the project gets technical, you have to learn so you can follow and participate in debates. Throughout the engagement, strategy consultants must work with the most senior executives of a firm. As for your background, we work in financial services so a strong interest in the field is an edge, but for entry-level consultants we don’t expect any expertise. Efficiency Boutique consulting firms … Thanks for your comment, I understand where you are coming from but I’m not actually an IT/technical consultant (they get paid way less :) and I have only been doing this for less than 2 years so I feel that Im still fresh enough to rebrand myself several times.. So a junior consultant might add value, for example, by looking at a new pricing strategy and the data on what existing customers are paying currently, and then pointing out a flaw in that strategy that might result in the firm losing clients. My initial assumption is operational due diligence pre-deal and operational improvement/cost reduction (branded as FasTrack in the UK) post-deal. Management Consulting vs. Investment Banking: An Overview For top students at elite universities, management consulting and investment banking represent careers that provide … This is a nice little sales pitch, but there seems to be a lot of confusion when it comes to consultants’ ability to produce “tangible” results, which supposedly happens through operational consulting. You also start managing more and more projects and teams. Implementation is not just for the smartest MBAs. Implementation consulting is totally different from operations and strategy consulting. Someone who’s been working at the company for 5-10 years might miss that kind of detail since they’re too close to their own clients and the established way of doing things. Just wanted to understand if that is a reasonable path, the question on exit opportunities def helped answer that question. The subjects are very diverse: marketing, recruiting, communication, financial planning… for instance, one of our team members developed an in-house iPhone app that handles our staffing needs project-by-project. Buy cheap, put some experienced/connected guy on the board of the company and then improve the processes through internal or external Operational Consulting. He is now a CFO and Partner Wild is the Game. We respect your privacy. Q: Right, but look at what management consulting firms and banks charge their clients, and how rarely they add value – I don’t think that’s a great argument. Get instant access to lessons taught by … It’s not as common to go into private equity, hedge funds, and so on because we don’t focus on transactions and financial analysis as much here. Thanks for visiting! Strategy engagements tend to involve long hours; they have a high intensity and involve senior client engagement. I have been offered a position in audit for financial services with a big4, I really want to move into big4 corporate finance (mid market M&A advisory minus the financing) and I think audit may be my way in within a few years through leveraging my consulting experience with the accounting/finance work I will have done. Q: So the lifestyle is more or less the same, but what about the salary? Argon Consulting has merged with Crimson & Co Transforming operations... We help clients achieve their strategic and operational objectives, working together to transform their … The two main project categories are those with more of a strategic side and those with more of an operational side. A: The short answer: “It depends.” Some projects involve a lot of travel and you’ll definitely rack up the Starwood points, but some are based in Paris or in another European major city, so you can avoid painful 8+ hour flights. And there’s more diversity in the technical skills than in investment banking because each project is different – sometimes you’re learning about a customer management system, sometimes it’s information technology, and other times you’re learning about finance or risk management. I assume people ask that because it’s recommended in interview guides, but it’s not a good question in this field because you learn on the job by working with your manager, attending pitches, and so on. The implementation consultants need to determine the pieces of activity required to take all the existing employees within the airline, create a new division, brand it, set up the operating structures and move the employees to the new division. So instead of making strategic recommendations and leaving, you stay to walk the talk. If junior consultants didn’t add value we would just be cheating our clients. • An outside organization demands that a consultant be brought in, e.g., a … Do you make more since you’re actually implementing projects? At the end of a strategy engagement, the client is given a detailed report outlining the exact market shares, pricing, volumes and other conditions under which the recommended strategy will work. It’s just that it’s one of the first interview were the interviewee is ok with not staying anonymous. Thanks for the feedback, I do have a little time to think about it and also try to develop other possibilities but I think I will actually enjoy audit and the accounting professional qualification will open doors.. hopefully :). With the above being said, spaces are relatively limited from what I’ve heard, and I’d suggest you to figure out whether you would enjoy the work at Audit or not & a plan B option. I just wanted to say thank you to M&I for posting articles very frequently, I love reading what you guys post. Would it be pretty reasonable to do consulting for 18-24 months, maybe look to transition to the transaction services team within the Big 4 or maybe leave consulting and go top 20 MBA? Do you know is it anything like operating consultant? Could I put this guy in front of a client? Great article and nice to see less consultant bashing on M&I! The consulting skill sets are different, the hours are different, the type of work is different and so is the profile of consultants and fee structures. When you work in CF within a big company you’re actually designing the strategy. How, specifically, can a junior consultant add value in operational consulting? KPMG in Canada’s management consulting services help you transform your business through of HR, IT, operations and data analysis strategy. In operational strategy consulting, though, you may advance much faster because roles are not as strictly defined – and if you do very well on a project you’ll get promoted quickly. I do see some PEs want FastTrack products to quickly improve operation in order to flip and sell. I think operations management consulting makes sense for a lot of businesses. Consulting Strategy, Analytics and M&A Customer and Marketing Business Operations Human Capital Enterprise Technology & Performance Financial Advisory Mergers & Acquisitions Forensic Real Estate … This field is dominated by large consulting firms like McKinsey, Bain, and Boston Consulting … It is about taking a top-down view of the business and looking at the allocation of scarce resources. Our supply chain consulting and other types of operations consulting have delivered billions of dollars in sustainable operations improvements for our clients, and our working capital management … Would this path help set me up to enter an operations consulting or biz dev/ corp dev. Hi Serena, Transaction services are different. But in operational strategy consulting you strive to conduct the project from the very beginning, through the definition of the solution to the implementation and the deployment. Meetings are very important because they’re how we orient projects and how we give our input. If I stay in consulting I will never get the exposure to finance which I want. A: We are “Operational Strategy Consultants,” which is very specific positioning. Sure, some training can help when it comes to technical skills or even some soft skills… and that’s why we work with behavioral training experts so that our consultants have better and more productive interactions with clients. The word “operational” is very important because unlike management consulting groups such as McKinsey or … Yes, there are strategic and operational projects. The end of a strategy engagement must be a report. E&Y is quite good and so is IBM. • How do we reduce bottlenecks in this plant? For me having an IT + audit background is not the best way to break into big4 corporate finance. Thanks for your comment Vivien. Technology consulting involves finding out how technology can improve a business In all my time as a management … So, you be part of the finance team in the paper products division, but you wouldn’t work on skincare products. We teach from first-principles only. Which products do PE firms typically engage DDV in? Any suggestions are greatly appreciated. If you’re an outside-the-box thinker who enjoys exploring the myriad ways people, strategy, operations, and process improvement help shape … how to extract more value from a facility, plant, mine or division). Your schedule is harder to predict because some projects have a huge workload due to the deadlines and the scope of what the client wants. A: It doesn’t work that way, unfortunately. Q: Earlier you actually winked at me while saying “growing really quickly,” so I guess you’re hiring. Hi, I work in pre-sales of an IT firm and wish to move towards operational consulting in a few years.Can u please suggest on how should I go about this? But at what speed should the client navigate the turn when X competitor is at Y distance or when the wind factor is at Z and tire grip is at G in order to maintain the top average speed? For type 1 products, they mainly focus on risks and for type 2 products, client want them to assess post-transaction risks and costs. One final question about interviews: any tips on what to say at the end when they ask if you have any questions about the firm, or tips on what to avoid saying there? I’ve only been out of college for 3 years and this IT auditing role has been my only experience so far. But if you’re currently an engineer, you will likely need a top MBA to make the switch because most consulting recruiting takes place at universities and business schools. As you become more senior, you focus more and more on the commercial dimension. That’s when junior consultants can become experts on new financial systems, CRM tools or different segments like insurance. If you’re an outside-the-box thinker who enjoys exploring the myriad ways people, strategy, operations, and process improvement help shape the future of our clients’ organizations, then you may be the right fit for one of Deloitte’s consulting … Would “delivering value on a specific aspect of a transaction” (i.e. Yes, but I’m not sure you need an MBA for any of that. Never miss an insight. We guarantee 100% privacy. A BIG thank you for your response. A: If you really want to talk about exit opportunities, you could do very well in financial operations or by going into corporate finance at a normal company. Strategic projects command dramatically higher rates and are dramatically more difficult to sell. @George I would more look at operation/implementation consulting with the F1 formula racing analogy, with the client being the F1 car and the track is the market or objective, and the other cars are the competitors. I worked in regional public accounting and have my CPA. This is the story of how I changed…. Let’s assume Bain advised an airline to set up a new low-cost airline division. The strategy calculated that doing this would lead to the airline saving $100 million over 3 years. Check out the kind of jobs and prospects in this cutting-edge field. Q: It’s funny you say that because in one previous article, I doubted the ability of a junior consultant to add value to a project. Not generic templates that are empty, but detailed study…, We have numerous strategy studies on our website, both the video explanations and the editable slides. This is an overview of one such study. We are based in Paris and we mostly work with French groups but our scope is truly an international one, as companies continue to expand and operate abroad. carve-out plan, separation and integration, etc. When using material from this website, including but not limited to tools, frameworks, concepts and methodologies, please provide the proper citations and attributions. In my experience, despite the countless adverts, not many firms do implementation well. I am a current undergrad finance major graduating in a few months. Discover How To Break Into Investment Banking, Hedge Funds or Private Equity. Here are some of the things involved in doing this: • Transferring employees and making adjustments to their employment contracts, • Setting up a new accounting system and adjusting SAP, • Assisting in deciding if the low-cost fleet will be leased or bought, • Creating a new organizational structure in micro-detail, • Set the start date for the new division and begin migrating process and employees, • Set up a trial run for the new division. There is management consulting, and there is management consulting. The top firms in strategy work are Mckinsey, BCG and Bain. Trindent Consulting helps companies in the energy, healthcare and financial services industries achieve top performance. Sign up to receive exclusive preview episodes from powerful training programs with ex-McKinsey, MCG et al., partners. Please refer to our full. They also work on internal projects at least 2 hours per week. What is PwC’s status in operational consulting industry? Strategy Vs Management Consulting Post by vikram4689 » Wed Dec 19, 2012 12:53 pm i know its a bit unorthodox question but i would like to know about this difference from you - MBA grads from TOP b … Q: Ok, so I think we understand what operational consulting is in theory. We'll email you when new articles are published on this topic. You must confirm the statement above and enter a valid email address to receive this free content. Pricing policy, cost management, promotions etc would be done in corp fin, and in FMCG cos finance teams are often organized by prod area. Apply for Management Consulting Jobs in Deloitte United States. We Make It Happen™. A: Just look at the price we charge our clients for our services. But if you want meetings to be useful you’ve got to prepare for them – so I’d say that junior consultants spend 2/3 of their time in meetings and 1/3 of their time preparing for them. A: Sure. Q: Before we jump into what operational strategy consulting is, could you tell me a little bit about your firm and its clients? Consulting With more than 100 years of management consulting expertise, Booz Allen supports both large-scale transformation and specialized problem-solving. No matter how good a firm is, they can never predict all the problems with implementing a strategy. Will your lifestyle be better or worse as an Operational Strategy Consultant? If your looking for a consulting position. What about the skills involved in your daily work – are technical skills or “soft skills” more important? @George, it’s hard to convey that completely in one article but I studied some of the work they’ve done and trust me it’s very concrete (think redesigning the product offer AND implementing it in all the banks of the country). I don’t say it’s impossible but you have a disadvantage compared to someone who is a “pure” auditor. Nicolas Doumenc was a Financial Analyst at General Electric where he explored the world of Corporate Finance. A: That’s the traditional cliché for management consulting companies. AION Consulting launches its 2021 study on the perception of Technology Consulting. The top firms in operations consulting are still Mckinsey, Bain and BCG. I plan to stay in pricing for at least a year and hopefully move into an FP&A or Treasury role. Would concentrated experience with these PE-relevant products make a stronger case when looking at a PE exit? FastTrack could be one of the a few exceptions. First Think of the time and cost savings in having the best slides available to your team. Management consulting is a field that has cutthroat competition – the motto of most top consulting firms is “Move up, or move out!” There are many Associates who somehow do not manage … So if you think being a specialist speaks to you, choose any of the above certifications and … The IB offers good pay and brand name but a back-office role (smelling boring all over it) While the consulting … You get the picture right? Well that was interesting nut couldn’t you name the guy who granted you that generous interview? When I first started I was parked at the execution stage of a lot of IT transformation projects (change management and that sort of thing) which at first did not seem very glamorous but as I progressed I have started to do more ‘strategy’ work which is pretty cool.. process please click the link in the email we will send you. This article seems to touch upon that where you can go in and make a strong and tangible difference with your clients. In that case it’s different. It’s a good way to leverage your IT experience and to gain some financial exposure. And it also depends on the project phase: generally the beginning of a project is more time-intensive than the implementation phase. The rest have poor records. We don’t specialize in this field, but you can probably get in with enough networking and some outreach to headhunters. Adding value can be having a new set of eyes on a project, having common sense and asking pertinent questions or applying methodologies to find weak points in a proposal or business process. Accelerating advances in … This means…, As Presiding Partner Kris works with only the most eminent BCG, McKinsey et al ex-partners to produce strategy, operations, implementation and case interview media that does not exist anywhere else. A: Junior consultants spend 90% of their time at the client’s office, in meetings or preparing for meetings. The audit role would not be IT audit but pure financial statements audit for financial services. “Benefits & Best Practices of Management Consulting” Documents 5 / 55 • A consultant can do work that no one else wants to do. It is my understanding that PE firms rarely engage DDV for operational DD in the first place. I received a job offer in pricing analytics at a f500 financial services firm. Accenture is great at technology implementation. In the meantime let’s talk about operational strategy consulting and how it’s different from other types of consulting. Sometimes because of budget constraints or because of internal arbitration, we end up only being able to make recommendations or only being able to implement some of our changes. We get at least 5 questions a month from readers about this either-or, and in honor of all of you we put together our 5 major differences between the 2 prominent types of consulting , and why work in strategy consulting … I know everyone will tell me it’s crazy to try to jump to a completely different field but any suggestions? Your email address will not be published. So please reserve this question for jobs with more theory and less time spent in the field. The difference is that none of the elite consulting firms do implementation work very well, and I am not sure they could do it well even if they tried. The accounting firms tend to be good at financial processes and operations. Yet, a dumb person who can make things happen is a far more effective implementation consultant than someone with the best solution which is never used. And we obviously aren’t because they are coming back to us with more projects! These are after all the decision makers of a business. The word “operational” is very important because unlike management consulting groups such as McKinsey or BCG, we have a real operational aspect in our projects. An MBA is helpful for moving into investment banking or management consulting, but not as necessary for the others. A: We are “Operational Strategy Consultants,” which is very specific positioning. Learn the skills to become a leader and contribute to the world. Hi Peter, Delivering deal value team does 1) Pre-deal products, i.e. A: Sure, let me just put my interview face on…. I just received it by mail today so I’ll edit the article. Then, for projects that are more operational (back-office industrialization or multi-channel distribution implementation, for example), we would focus less on strategy and more on doing the work, speaking with vendors and customers to make the changes, and so on. From the variety of work and access to C-level executives to the wide array of exit opportunities, strategy operations consulting far surpassed financial advisory consulting … PE firms nowadays do not hire DDV much for post-deal services neither because they don’t need carve-out and integration like industrial company buyers. The bottom-line: please do not go into anything in consulting and expect a 9 to 5 job, even if the hours are not as brutal as what you get in investment banking. ), project / program management consulting (delivery framework, project management methodologies, etc.) Strategy work refers to helping senior executives determine the overall direction in which they will take the business. A2A. In Operational Strategy or Transformation, each project is different, so it’s difficult to explain our activities with only one or two examples. Buyouts & acquisitions work is often done by corp development people, maybe together with corp finance people but sometimes not. In fact I didn’t want to do it without an authorization. In our last post, we discussed 5 major differences between 2 prominent types of consulting. In some areas of operations, firms like Deloitte, PWC, E&Y, KPMG and Mercer also do well. If you don’t think you’ll enjoy your work in Audit (even one year can be hell), I’d rethink about the offer. CPA vs. Management Consulting - 0:32 Consulting As A CPA - 1:11 Management Consulting - 3:16 What Should You Do - 5:45 Big Four Firm | In this series, Steph & Den will dive into … Our core business is to help our clients lead major change projects by working on the full change lifecycle, from strategy to implementation. Thanks. You will receive additional complimentary videos/updates by email. Implementing someone else’s recommendation might sound like you are “creating value” but in reality you are, well, implementing someone else’s recommendation. I know what people say about audit but I think its a realistic route. Strategic Consulting Knowledge Management. Supply chain leaders can use this Market Guide when searching for a supply chain strategy and/or operations consulting … To learn more about, please click here to get my FREE 57-page investment banking recruiting guide - plus, get weekly updates so that you can break into investment banking, management consulting firms do not produce tangible results, hours are not as brutal as what you get in investment banking, https://www.mergersandinquisitions.com/mba-investment-banking/, https://www.mergersandinquisitions.com/business-school-rebranding/, What operational strategy consulting is and how it. If you have a short experience and not a very technical IT position you’re not branded “IT material”. Thanks Nicole! creating value through operational improvements, cost reduction, etc.) Operational Due Diligence, HR DD, IT DD, etc and 2) Post-deal products, i.e. Since the team is working hand-in-hand with the client, they generally need to work to the clients’ schedule. Stanwell Consulting is a new player in the financial consulting field, created in 2006 by two former PwC partners. I’m sure that his 3 years of experience as a manager at Stanwell Consulting will help M&I readers. They also do implementation work. However, I don’t think it’s as clear-cut as saying, “Management consulting only recommends changes and operational strategy consulting only implements changes.”. Ex KKR Capstone. Does anyone have any advice on this? This is a very important point. I don’t know much about this area personally (a guest author wrote it), but yes, it’s probably reasonable to transition from operational consulting to TS at a Big 4 firm or to move into a top 20 MBA program (though top 3 might be tough unless you have something great outside of work). Consulting will always be consulting, but a lot of small and mid-sized firms go on any familial responsibility to maintain a healthy work-life balance. McKinsey does plenty of operations work which is just as rigorous as any strategy engagement. We tend to care more about what you can do than the school you went to. Thanks for the metaphore, I never thought of it that way. I’m not sure there is a full list, but I would assume the top 20-30 MBA programs are targets. But apart from that, all you need to become a good operational consultant is practice. Generally interviewees don’t disclose their names if they’re still in the industry, otherwise he would have mentioned it. A: One silly question we hear a lot: “So what are your internal training programs like?”. You could also work in some type of strategy position at a Global 500 company.