Have you ever wondered what strategy consulting is and what strategy consultants do? You may also be interested in pursuing a career in this field but don’t know where to start. Whatever your reason may be, understanding the types of strategy consulting firms is essential.
In a nutshell, strategy consultants provide expert advice and guidance to businesses to help them develop and execute effective strategies. It can be seen as a highly specialised field that requires sharp analytical skills, business acumen, and industry knowledge.
What is Strategy Consulting?
Let’s first define what strategy consulting is. In simple terms, it is a type of consulting that focuses on providing shorter-term advice on a companies future strategy. Strategy consultants will essentially help companies identify their goals, analyse the market and competition, and develop a plan to achieve their objectives. This can range from anything including achieving a certain level of profitability, expanding into another market, helping with a new product launch and many other specific business challenges and problems.
Strategy consulting is also a highly competitive and lucrative field, with top firms charging high fees for their services. Some of the most well-known strategy consulting firms in the industry include the MBB (McKinsey, Bain, BCG), Big 4, Tier 2, and boutique firms. Let’s discuss each of these firms in detail so you can understand their similarities and differences.
MBB (McKinsey, Bain, BCG) Firms
MBB firms are considered the most prestigious and sought-after consulting firms in the industry. The acronym stands for McKinsey & Company, Bain & Company, and Boston Consulting Group (BCG).
These firms are considered the “big three” and have been dominant players in the strategy consulting market for decades. They have a global presence, with offices in major cities around the world. MBB firms are known for their rigorous selection process and high-impact projects with Fortune 500 companies.
Working at an MBB firm is a dream for many aspiring strategy consultants, and it’s no surprise why. These firms offer competitive salaries, excellent training and development opportunities, and the chance to work with some of the brightest minds in the industry. However, their demanding work culture is not for everyone because of the long hours and high-pressure environment. But for those who can handle it, a career at an MBB firm can open doors to a successful and fulfilling career.
Big 4 Consulting Firms
The Big 4 consulting firms, or the “big four,” are Deloitte, PwC, EY, and KPMG. These firms have a strong presence in the accounting and financial services industry but have also expanded into strategy consulting. These include EY’s EY Parthenon, and Deloitte’s Monitor Deloitte: the strategy consulting arm of their business.
Compared to MBB firms, the Big 4 has a more diverse client base, including middle-market and small businesses. Additionally, they have a greater focus on technology and digital transformation consulting. Working at a Big 4 firm can provide you with experience in different industries and exposure to various types of projects. The work culture is also less intense compared to MBB firms, making it a more appealing option for some. However, the pay may not be as high as in MBB firms. If you’re looking for a stable and well-rounded consulting career, the Big 4 may be a good fit for you.
Tier 2 Consulting Firms
Tier 2 consulting firms are more minor than MBB and Big 4 firms but still have a strong reputation in the industry. They offer similar services to MBB and Big 4 firms but on a smaller scale with fewer resources. Examples of Tier 2 firms include Oliver Wyman, Roland Berger, and AT Kearney.
Working at a Tier 2 firm can provide you with more hands-on experience, as the teams are smaller and responsibilities may be broader. These firms also tend to have a more relaxed work culture than MBB firms. However, the pay may not be as high, and career progression opportunities may be limited. But if you’re looking for challenging projects and a close-knit team environment, a Tier 2 consulting firm may be the right fit.
Tier 2 firms also have a strong focus on specific industries, such as healthcare, technology, or energy. This allows consultants to develop specialised expertise in a particular sector, which can be valuable for future career opportunities.
Boutique Consulting Firms
Boutique consulting firms are smaller, specialised firms that focus on a particular industry or niche area. These firms may have a team of only a few consultants, but they provide high-quality, tailored services to their clients. Examples of boutique consulting firms include the Corporate Executive Board (CEB) and Analysis Group.
Working at a boutique firm may offer a more personalized and intimate work environment. Consultants often have the opportunity to work directly with senior leadership and take on more significant responsibilities. However, the pay may not be as high as in larger firms, and career progression opportunities may be limited. However, boutique consulting firms may provide exciting and fulfilling career opportunities if you have a strong interest or expertise in a specific industry.
Conclusion
No matter which type of strategy consulting firm you choose to work for, the industry offers a challenging and rewarding career path. Each type of firm has its unique advantages and disadvantages, so it’s essential to understand your goals and priorities before choosing which one to join.
With hard work, dedication, and continuous learning, a career in strategy consulting can lead to significant professional and personal growth. So, whether you’re interested in MBB firms or boutique consulting, the opportunities are endless in this dynamic and ever-evolving field. So, if you’re considering a career in strategy consulting, research and explore your options to find the best fit for you.
