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Demystifying Management Consulting

Demystifying Management Consulting

May 29, 2024

Today, in 5 minutes or less:
👉️ Upcoming events
👉️ Demystifying management consulting
👉️ Featured resources
👉️ Content picks of the week
👉️ Job board + new StepStone exclusive investment banking jobs

Hope you all enjoyed the Memorial Day weekend and had your fill of BBQ and beach 🏖️ .

Friendly Reminder: Consulting application deadlines are just around the corner and interviews are ~10 weeks out. Time to get serious! 🕒 Join our free Intro to Consulting event, led by a McKinsey pro, to learn how you can break in👇

Upcoming free events

📢 Intro to Management Consulting (June 3rd, RSVP 👉️ here)

📢 Intro to Private Equity (June 9th, RSVP 👉️ here)

Coach spotlight

Leading the upcoming Intro to Management Consulting Session is Naoya, “aka The Case Study King,” a seasoned McKinsey consultant with years of experience mentoring students. He founded Cornell University’s Consulting Career Advising Program and has helped 25+ students land top consulting roles.

Want to learn how Naoya can help you land a job in management consulting?

Demystifying Management Consulting

Management consultants are the experts companies turn to when faced with tough challenges. They offer specialized advice and solutions, driving success through strategic planning, operational optimization, and effective M&A execution. These consultants are the driving force behind many business success stories, enabling companies to adapt to market demands, capitalize on emerging opportunities, and maintain a competitive edge.

Let's dive into the management consulting career track and uncover why it's one of the most coveted roles right out of school.

Meet the big players: MBB

In the consulting world, 'MBB' refers to McKinsey & Company, The Boston Consulting Group (BCG), and Bain & Company. These firms are universally recognized as the gold standard, known for their top-notch services and impact.

Why do businesses hire management consultants?

❓️Lack of internal expertise:

When companies hit a roadblock and don't have the in-house resources or knowledge to solve it, they bring in consultants with specialized skills.

🤝 Disagreement among stakeholders:

Sometimes, different stakeholders of a company clash, and an outside perspective can help mediate and find a clear path forward.

🎯 Strategic decision making:

When a company needs to shift its strategic direction, bringing in a top-tier consulting firm adds a layer of credibility to the decision-making process.

🧩 Complex situations:

In today's fast-paced business world, complex challenges are the norm. Consultants provide structured frameworks and guidance to navigate through the chaos.

How much can management consultants make?

What makes management consulting one of the most sought-after careers right out of school? Well, one major draw is the paycheck. Fresh graduates breaking into consulting roles can expect to pocket anywhere from $100,000 to $180,000 per year. And if you're aiming for a post-MBA entry-level role, you could be looking at around $300k all-in. Check out the 2023 comp figures below 👇️. Besides the attractive pay, consulting offers the chance to work on impactful projects and opens doors to top-tier opportunities.

What are the different areas of consulting?

🎯 Strategy

Strategy consultants help companies develop long-term strategies for growth, market entry, or competitive positioning.

Ex: Kylie Cosmetics hires consultants to plan their Asian market expansion

⚙️ Operations

Operations consultants focus on improving the efficiency and effectiveness of a company's operations. This might involve streamlining processes, reducing costs, or enhancing productivity.

Ex: Coca-Cola hires consultants to streamline bottling operations sustainably

🧑‍💻 IT

IT consultants assist companies with implementing technology solutions and managing IT infrastructure. They might help with IT strategy or carry out long implementation projects, such as deploying enterprise resource planning (ERP) systems.

Ex: Barclays hires consultants to implement a new data management system for their financial operations

🛒 Marketing

Marketing consultants help companies grow by conducting market research, designing marketing strategies, and implementing digital marketing initiatives. They focus on areas like customer segmentation, brand positioning, and digital advertising.

Ex: Nike hires consultants to launch a new digital advertising campaign targeting Gen Z consumers for their latest sneaker release

🏦 Financial

Financial consultants assist companies with financial planning, investment strategies, and managing corporate finance issues. They might build valuation models or determine the best mix of debt and equity to finance the company.

Ex: Microsoft hires consultants to assess potential merger and acquisition opportunities in the cloud computing sector

MBB internship application timelines

McKinsey

Role	Class Of	Opens	Deadline(s)
Sophomore Summer Business Analyst	Winter 2026 / Spring 2027	7/1/2024	10/1/2024
Business Analyst Intern	Winter 2025 / Spring 2026	✅Open	9/12/2024

Boston Consulting Group

Role	Class Of	Opens	Deadline(s)
Growing Future Leaders \| Diversity Program	Winter 2026 / Spring 2027	Expected June 2024	N/A
Summer Associate	Winter 2025 / Spring 2026	Expected June 2024	N/A