A Quick Guide to Strategy Consulting

A Quick Guide to Strategy Consulting

A business has a problem. Their employee retention rate is below 60%, over 20% of its employees call out at least once every two weeks, and there are a litany of other issues stemming from incidents between managers and employees. These issues are rarely communicated to the proper people at the executive level.

The hiring managers or people running the company are at a crossroads wondering how they got to this position, and they also have no idea how to fix all of the issues going on. Well, here’s where strategy consultants come in.

Strategy consulting is the process of investigating a problem and developing a strategy to fix it, then advising clients on how to fix it or implement that strategy. It’s about making data-driven decisions and working with others to make their company more successful. Insight Global, for example, has strategy consulting branches that consult on things like company culture and diversity, equity, and inclusion.

This type of career may sound enticing, especially to those who have strong problem solving, research, and communication skills. This blog post will serve as your guide on what strategy consulting is, what a day looks like for strategy consultants, and, finally, we’ll offer tips on how to become a strategy consultant.

What Is A Strategy Consultant?

A strategy consultant plays a crucial role in helping companies define their business strategy from top to bottom. Whether at the inception of a business or when it encounters growth challenges or issues affecting employee satisfaction, strategy consultants step in.

The essence of strategy consulting lies in enabling organizations to achieve their desired outcomes. Consultants aim to enhance organizational performance by crafting and executing plans that deliver results. They assist in clarifying goals, evaluating current conditions, and devising strategies to achieve objectives.

In essence, strategy consultants take a panoramic view of problems or potential challenges, offering tailored solutions to companies. Given the breadth of their role, let’s delve into more specific aspects.

What Does A Strategy Consultant Do?

Consultants assist organizations in developing and executing strategies to enhance performance and achieve objectives. They analyze the organization’s current state, its environment, and competitive landscape to identify opportunities and threats. Subsequently, they collaborate to devise plans that capitalize on opportunities and address challenges.

Kristina Kang, a consultant highlighted in Harvard Business Review, emphasized, “The most fulfilling aspect of my work is improving people’s professional lives.” This sentiment underscores the core purpose of consulting: enhancing various aspects of company operations—from workflow and efficiency to culture and strategy—to benefit employees.

To provide clarity on what a strategy consultant does, here are some key details presented in a brief FAQ format.

What Industries Do Strategy Consultants Work In?

Strategy consultants are versatile and can be found across various industries, with prominent roles in technology, financial services, supply chain management, business services, and consumer goods sectors. While every industry benefits from strategic consulting, universal challenges such as attrition and cultural issues are prevalent across all sectors. The real challenge lies in crafting tailored solutions that address the specific needs of each company and industry.

What Does A Typical Day Look Like For A Strategy Consultant?

A consultant’s daily routine typically involves:

  • Meeting with clients to thoroughly analyze their requirements.
  • Conducting comprehensive research.
  • Preparing detailed reports.
  • Keeping clients informed about new developments.

Consultants regularly engage with clients to gather feedback and gather insights into their business operations. They conduct extensive research to gain deeper industry and competitive insights. Ultimately, consultants compile their findings into reports that outline recommendations for achieving organizational objectives.

Do Strategy Consultants Only Consult Large Corporations?

Strategy consultants often provide services to both large companies and smaller businesses. However, some consulting firms may specialize in either area.

What Are Some of the Critical Skills Required?

Consultants need specific skill sets that include:

  • Critical thinking
  • Ability to analyze data and derive insights
  • Drawing conclusions and making recommendations based on research
  • Strong written and verbal communication
  • Building and maintaining relationships

Most strategy consultants typically hold a college degree in business, finance, or a related field. Many also pursue a Master’s in Business Administration (MBA) to enhance their credentials.

How Much Money Do Strategy Consultants Make?

The salary for strategy consultants varies based on factors such as experience, education, and region. On average, these consultants earn around $90,000 annually, according to Glassdoor.

What Are the Best Strategy Consulting Firms?

Some of the top strategy consulting firms include:

  • Boston Consulting Group
  • EY-Parthenon
  • McKinsey & Company
  • Bain & Company
  • Deloitte

Strategy consulting is a significant market, with predictions suggesting it could grow to nearly $44 billion by 2025. This growth reflects substantial investments in strategic consulting services.

How Does Strategy Consulting Work?

Strategy consultants typically commit to a set number of days for each client engagement, while clients have their own timelines. Spending several weeks collaborating with a company’s executives and staff, consultants compile detailed reports on their findings about the business. They then align these findings with the company’s goals.

Based on these goals, strategy consultants formulate recommendations to help organizations achieve desired outcomes. Clients use this information to make informed decisions aimed at enhancing performance within their organization or industry.

One of the primary challenges for strategy consultants is maintaining objectivity throughout the process, given their human interactions with client personnel.

Strategy consulting has gained popularity because it provides organizations with an unbiased assessment of their weaknesses, serving as a starting point for improving performance and charting a path forward.

How To Start A Career In Strategy Consulting

Entering the consulting industry can be approached through various paths. While a degree from a top business school is often preferred, it’s not always mandatory. Consulting firms seek individuals with strong analytical skills, leadership experience, industry expertise, and effective communication abilities. While these skills can be gained outside of business school, having an MBA can be advantageous.

One of the benefits of starting a consulting career is the opportunity to work across diverse industries and with clients globally, gaining invaluable experience. Once hired in strategy consulting, continuous skill development and acquiring functional expertise through new challenges are crucial.

Networking remains the most effective way to learn more about a career in strategy consulting. Speaking with industry professionals offers insights into the daily responsibilities of strategy consultants and may open doors to opportunities once skills are honed. Networking holds true as a valuable tip across all professions and industries.

Tips For Succeeding In Strategy Consulting

Know The Consulting Landscape

Understanding the landscape of strategy consulting is crucial for success. Familiarize yourself with key firms like EY, BCG, McKinsey, and others. Learn about their strategies, reputations, client bases, and the types of consultants they hire. This knowledge will help you target the right firms and position yourself effectively for job opportunities.

Be Well-Informed

To provide valuable insights to clients, staying informed is essential. Keep up with industry news and developments to grasp the broader context, and maintain a continuous learning mindset. Embrace flexibility in your perspectives and solutions, understanding that there’s always more to learn.

Be An Effective Problem Solver

Success in strategy consulting hinges on your ability to swiftly assess situations, pinpoint critical issues, and propose effective solutions. As Kristina Kang noted, “As a consultant, you absorb and synthesize vast amounts of data to address underlying problems.”

Think Outside The Box

Innovative thinking is a hallmark of strategy consulting. Companies seek consultants to devise creative solutions that transcend conventional approaches, addressing systemic challenges in unique ways.

Be An Expert In The Field

Becoming an industry expert is vital for thriving in strategy consulting. Continuously update your knowledge base with the latest industry developments and demonstrate your expertise to clients and colleagues alike.

Learn To Help Coordinate

Teamwork is central to strategy consulting. Strong interpersonal skills and the ability to coordinate diverse teams of consultants, clients, and stakeholders ensure alignment and minimize communication gaps, crucial for project success.

Seek Out A Mentor

A mentor can provide invaluable guidance and advice as you navigate your career in strategy consulting. Approach experienced professionals respectfully and passionately, seeking their insights and learning from their experiences.

Get A Lot Of Experience Under Your Belt

Hands-on experience is invaluable in developing the skills necessary for a successful strategy consulting career. Seek opportunities to gain practical experience and continually refine your consulting abilities.

Go The Extra Mile

In the competitive consulting industry, dedication and initiative set successful consultants apart. Take on additional responsibilities judiciously, support colleagues, and consistently strive to exceed expectations to stand out in the field.

Conclusion

Strategy consultants play a crucial role in assisting companies with developing strategies and solving complex problems. This blog post offers insights into the role of strategy consultants, providing valuable advice for those seeking guidance in this field or for those who may know someone in search of consulting services.