Types of Consulting. The Ones That Are Most In-Demand

Consultants can be found in virtually every sector. They are employed by law firms, retail businesses, government agencies, and mining industries, to mention a few. They do anything from assess client satisfaction to safeguard computer systems from intruders.

The range of responsibilities in the consulting industry provides excellent opportunity for individuals to specialise in areas that interest them.

Consulting roles are typically classified into five categories: strategy consulting, operations consulting, financial consulting, information technology consulting, and human resource consulting.

To assist you determine which types of consulting you are most interested in, we have included five categories below. Here, we delve into five prominent types of consulting, exploring their core principles, practical applications, and the impact they have on shaping today’s business landscape.

1. Management or Strategic Consulting

Management consultants are the strategic architects of an organization. They work closely with top executives to identify growth opportunities, analyze market trends, and develop long-term plans. Their expertise lies in areas like:

• Corporate Strategy: Defining a company’s overall direction, competitive advantage, and long-term goals.
• Organizational Design: Optimizing an organization’s structure, workflows, and reporting lines for maximum efficiency.
• Mergers & Acquisitions: Advising companies on navigating complex M&A processes for successful integration.

Case Study: Streamlining Operations for a Retail Giant

A large retail chain facing declining sales might engage a management consultant. The consultant could analyze customer data, identify inefficient store layouts, and recommend operational changes like optimized product placement or improved inventory management.

According to a McKinsey & Company report, 70% of executives believe that digital transformation is critical to their organization’s success. Forward-thinking management consultants are increasingly incorporating digital strategies into their recommendations. Strategy consultants focus on and contribute to a company’s long-term goal. Their purpose is to examine the entire picture and find solutions to improve the company’s overall profitability and competitiveness. They develop plans to achieve long-term goals and oversee their implementation, ensuring that they are cost-effective and profitable.

McKinsey, Bain, and Boston Consulting Group are the most well-known firms for providing pure strategy services.

For example, the customer is a well-known clothing retailer that focuses in adult sleep and fitness wear. As they notice their competitive advantage diminishing, they seek the advice of a strategy consultant.

The consultant discovers a significant distinction between the client and its competitors: the client offers sleep and fitness apparel to a very valuable young niche that competitors underserve. The consultant creates a strategy to increase the retailer’s product offerings in this segment.

2. Operations Consulting: The Efficiency Experts

Operations consultants examine the processes that customers employ to achieve their objectives and seek to improve their efficiency. They evaluate all aspects of operations, such as production, sales, distribution, and customer service. They want to know how procedures may be improved in terms of cost, time, staff engaged, and steps required to meet targets.

Strategy and operations consulting are closely related. Strategy consultants focus on long-term goals, whereas operations consultants assess the structures that allow these goals to be met. Many major firms provide both of these services.

Partners in Performance (PIP) and the ‘Big 4’ advisory firms have a significant presence in operations consulting.

For example, using the same client as previously, an operations consultant may collaborate with the retail client to reduce production costs, allowing the client to sell products at a lower cost and so become more competitive.

Operations consultants are the efficiency ninjas of the consulting world. They focus on optimizing internal processes, reducing costs, and improving overall business performance. Their expertise encompasses areas like:

• Supply Chain Management: Streamlining the flow of goods and materials through the supply chain, reducing bottlenecks and ensuring timely delivery.
• Process Improvement: Identifying and eliminating inefficiencies in existing business processes using methodologies like Six Sigma.
• Performance Management: Implementing data-driven approaches to track key performance indicators (KPIs) and identify areas for improvement.

Statistics: The Power of Process Optimization

A study by Aberdeen Group found that companies that excel in process management experience 37% lower operating costs and a 20% increase in customer satisfaction.

Case Study: Optimizing Production for a Manufacturing Company

A manufacturing company struggling with production delays might bring in an operations consultant. The consultant could analyze production lines, identify bottlenecks, and recommend changes such as improved scheduling or updated equipment to maximize output.

Financial consultancy

Financial consultants evaluate a client’s financial situation in order to propose a strategy for improving firm finances. This may include offering information and advise on investment ideas, tax difficulties, and how to manage the business’s day-to-day spending. Financial consulting includes insurance advice and savings plans.

Oliver Wyman is well-known for its financial consulting services, while they also provide services in other sectors. This form of consulting could be ideal for those who have a degree in finance, economics, or business.

For example, the retail client has expanded overseas. They seek the guidance of a financial expert to better comprehend the foreign market and to advise on tax rules that they should be aware of.

Financial consultants act as trusted advisors on all things finance-related. They provide expertise in areas like:

• Mergers & Acquisitions (M&A) Due Diligence: Assessing the financial viability of potential mergers and acquisitions.
• Corporate Finance: Helping companies raise capital, manage financial risk, and make strategic investment decisions.
• Valuation: Determining the fair market value of a business, assets, or intangible properties.

A Harvard Business Review article highlights the growing importance of FinTech (financial technology) in financial consulting. Consultants with expertise in areas like blockchain and AI-powered investment analysis are highly sought-after.

Case Study: Restructuring Debt for a Struggling Startup

A struggling startup with mounting debt might engage a financial consultant. The consultant could work with creditors to negotiate debt restructuring, identify cost-saving measures, and develop a financial turnaround plan.

Information Technology Consulting (IT consulting)

A consultant in this field advises clients on the best ways to use technology to improve their businesses. This could include creating custom software for a company, assisting with a company-wide move from PCs to Macs, or testing the efficiency of existing devices and programmes within the business.

This type of consulting job goes by many names, including tech consulting, IT advice, business technology services, and IT consulting. With hacking becoming increasingly common, IT experts are being called upon to ensure there are no security breaches and sensitive information is kept secure.

Accenture, Capgemini, and IR are among the leading organisations in this field.

For example, the retail customer has decided to launch their own app to help retail staff manage sales on the shop floor. They hire IT experts to monitor app development, fix bugs, and train employees on how to utilise the new system. IT consultants help organizations leverage technology to achieve their business goals. Their expertise spans areas like:

• Digital Transformation: Developing and implementing strategies to leverage technology to drive innovation and business growth.
• Enterprise Resource Planning (ERP) Systems Implementation: Guiding companies through selecting, implementing, and managing complex ERP systems.
• Cybersecurity Consulting: Identifying and mitigating cyber threats, developing cybersecurity protocols, and implementing security solutions.

According to a RightScale report, IT consultants with expertise in cloud migration and cloud-based solutions are in high demand.

Case Study: Implementing Cloud-Based Solutions for a Healthcare Provider

A healthcare provider struggling with managing patient data on-premise servers might hire an IT consultant. The consultant could recommend migrating to a cloud-based healthcare in

Human Resource Consulting (HR consulting)

Human resources consultants manage employee-related issues. They deal with the human aspect of business!

They collaborate with customers during the recruitment and transition processes to place the best candidates in the right positions. They investigate and develop well-being systems, deal with communication challenges, and manage remuneration and change management. They are expected to become specialists in a company’s culture, able to advise on whether two organisations may merge successfully without a conflict of ethos. HR consulting firms also handle outsourcing.

You may have heard of Randstad or ManpowerGroup. These are big names in HR consultancy.

For example, the retail customer has decided to build dedicated boutiques selling just young sleep and activewear. They seek the assistance of an HR consulting firm to restructure the organisation and form a management team capable of working in the new market.

The world of consulting is a vast ecosystem teeming with specialists offering expertise in various facets of business. From guiding high-level strategy to streamlining operations, consultants act as trusted advisors, helping organizations navigate challenges and achieve their goals.

HR consultants act as strategic partners to organizations, focusing on all aspects of the employee lifecycle. Their expertise lies in areas like:

• Talent Acquisition: Developing strategies to attract, recruit, and hire top talent.
• Talent Management: Designing programs to develop, engage, and retain employees.
• Compensation & Benefits: Structuring competitive compensation packages and employee benefit programs.

A recent report by Gartner highlights the growing importance of HR technology (HRTech) in HR consulting. Consultants with expertise in areas like AI-powered recruitment tools and employee engagement platforms are increasingly valuable.

Case Study: Revamping Performance Management for a Media Company

A media company struggling with low employee morale might engage an HR consultant. The consultant could analyze employee feedback, recommend modern performance management practices, and implement tools to provide ongoing feedback and development opportunities.

The Symphony of Consulting Expertise

These five distinct consulting fields, though unique, often work in concert. Imagine a complex business transformation project. A management consultant might define the overall strategy, while an operations consultant streamlines the processes. An IT consultant ensures the necessary technology infrastructure is in place, and an HR consultant helps manage the talent impact of the change.

Beyond the 5 Consulting Types: A World of Specialization

The consulting world extends far beyond these five core areas. Environmental consultants advise on sustainability practices, while marketing consultants help develop winning marketing strategies. The specific expertise needed depends on the evolving challenges faced by businesses today.

As technology continues to disrupt industries and reshape the business landscape, the consulting world must adapt. Consultants who embrace continuous learning, develop expertise in emerging technologies like AI and blockchain, and cultivate strong collaboration skills will be best positioned to thrive in the years to come.

In conclusion, the world of consulting offers a diverse range of expertise, catering to the multifaceted needs of today’s businesses. From strategizing for growth to optimizing operations and attracting top talent, consultants play a vital role in driving organizational success. As the business landscape continues to evolve, so too will the consulting industry, with new specializations emerging to address the challenges and opportunities of tomorrow.