Perspective of an Incoming Analyst: Current State of Management Consulting
I write this in part to document my expectations before I begin full-time, and in part to share my thoughts about the industry with my peers thinking about becoming consultants.
Depiction to Undergrads
To the uninitiated, management consulting is an industry that is hyped up to be something amazing. College students across the country are sold grand stories of traveling the country, working with big-name Fortune 500 companies and CEOs, and solving the world’s toughest business problems. The exclusive MBB club and its constituent firms oozed prestige when referenced and explained, and the Big 4 accounting firms with their strategy arms added fuel to the fire with real brand recognition (thanks in no small part to how they can be seen on nearly every major city’s skyscrapers).
I learned about consulting at the ripe age of 19, during a consulting conference that likely shaped my career path forever. I admit that I was bright-eyed and bushy-tailed at that initial introduction and immediately fell in love with the smooth-talking, highly compensated, well-traveled consultants on stage that spoke highly of their client engagements and travel experiences (they always talked about their travels). There was a real veil of mystery and appeal as they referenced their clients by industry, which only piqued my interest as my imagination filled in the blanks with names of cool, potential companies that might fit the bill.
I later realized that not all was rainbows and sunshine. I understand now that this is part of their business model: consulting is a revolving door that needs fresh, top talent to give credence to their advice and recommendations. Consulting firms require the pipeline of new undergrads to do the analytical work, and those new hires should believe that their work “delivers real-world impact,” as all the firms like to claim. Yet… I decided to stay in consulting. Why? And what do I think / hope is in store for me.
The reason that I chose to remain: diversity of experiences & diversity of human capital.
1. Diversity of Experiences
Although the probability of working directly with C-Suite executives is likely reserved for a select few, it is true that consulting straight out of undergrad can provide you with invaluable experience. I am excited about the opportunity to rotate projects with different companies, and learning what kind of industry, company, and culture resonate most with me. What are common problems inside of companies? How can they be avoided? If I were to join or launch a startup, could I learn to not repeat these mistakes?
It goes without saying that consulting gives optionality. Most consultants exit after a couple of years, and the exposure to management, to a wide variety of companies, and to a myriad of problem-solving instances means the job is a springboard to new careers which otherwise might not have been available.
2. Diversity of Human Capital
Let me get straight to the point: strategy consulting pays well. Top pay attracts top talent. A high demand from students trying to break into consulting, plus a lower supply of available positions, and a rigorous case interview process means that the students who are able to secure consulting roles are usually top-notch performers.
This, even though COVID, has not changed. I’m a strong believer in the saying:
You become what you surround yourself with.
I believe that surrounding myself with these hardworking peers will push me to new heights. And, I believe that working under equally impressive managers will expedite my learning and career trajectory.
Recent Changes
Undoubtedly, the pandemic has disrupted the consulting industry (along with every other). It seems that travel is still very client-dependent, and work from home is still the norm.
This, for me, is a drawback. I believe learning, including learning about consulting, is best achieved through an apprenticeship model. And an apprenticeship model is best implemented through in-person interactions with a mentor or manager. When explaining concepts, creating decks, or talking through solutions, much is lost without the tactical experience of in-person learning.
Two things work against this in-person model ever coming back to life:
- Working virtually is much more convenient for people with families.
- Working virtually has no significant negative impact on productivity.
Thus, managers, managing directors, and decision-makers at these consulting firms will likely not readily revert to the pre-pandemic ways of work.
This chart, taken from a Reddit survey of consultants, shows that the average amount of hours being worked in the industry increased during the pandemic. Simultaneously, projects became remote, as seen below.
For most firms today, I have heard that deciding whether a project is remote or travel is solely the decision of the client. For the client, it is easy to imagine how they would have little problem with having their consultants stay remote. They receive the same amount of hours of work (if not more), while not having to expense travel, accommodation, meals, and more, which also saves them time. Is this the most beneficial to the consultant team? Is information exchange and context-gathering less effective virtually? I cannot find quantitative answers to this, and I assume it depends on a project-by-project, case-by-case basis.
The little hope I have remaining is that the decision to return to office will be placed in the hands of the individual. Those who prefer to come into the office every day can do so. Those who insist on remaining at home can do so. And those like myself who prefer a hybrid model can come to work three days a week if they so choose. This topic deserves a whole separate article; however, I want to note that it will be up to management at every firm to provide incentives for returning to the office. Time will tell if the consulting firms that claim people-centered culture will extend this culture to working hours.
If you read this far, thank you kindly. After all, this is an opinion piece and my first article on Medium. Is there anything you disagreed with? Personally, I hope that the things I look forward to in consulting don’t disappoint. I’d love to hear some additional thoughts in the comments below.
— Alejandro Leon Hernandez
