2010 Intro To Consulting Mba
- 1. Introduction to Consulting? Presentation to MBAs and MiFFTs J-P Martins, Consulting Careers Team 8 September 2010 Page 11 Page
- 2. Today’s agenda Introductions What is management consulting? Who are the consultants? How do I get hired? Recap & next steps 2 Or text 079 6690 7426
- 3. Who am I? 1:1 7 years’ Consulting sessions experience J-P Coach/ at BCG & advisor at Drop-ins Bain Martins LBS Strategy & Blog Corporate Development Client of roles in Mining BCG, & Financial McKinsey, www.problemssolved.org Services Deloitte, @jpstrategy KPMG & EMB Page 3 Or text 079 6690 7426
- 4. Who are you? MBA and MiF students Novice Onlooker Participant Player • I have no • They’ve • I’ve worked • I’ve worked experience been on a project as a of involved with them consultant consultants with my company No experience High experience 4 Or text 079 6690 7426
- 5. How is this going to work? You signed You emailed I try to answer up for this! me your them! questions Tweet/text You read the presentation further • Is consulting for me? questions, comments, • To which firms am I best answers suited? We pause for • How do I get hired? further Q&A #lbswwh . Text: 079 6690 7426 Wrap-up • Next steps 5 Or text 079 6690 7426
- 6. Today’s agenda Introductions What is management consulting? Who are the consultants? How do I get hired? Recap & next steps 6 Or text 079 6690 7426
- 7. What is consulting again? Question Answer What is the difference Consulting is merely a state of employment between Strategy Differs from ‘employed’ or ‘contracting’ Consulting and Management Key features are: Consulting? Work for multiple clients Advisory in nature Management consulting describes the field worked in – any issues that pertain to management Very broad Strategy consulting is not a good term, but best describes Addressed in ‘Who are a segment of management consulting activity... the consultants’ 7 Or text 079 6690 7426
- 8. Sorry, what do they actually do? Questions Answers How does a project The case team leader The team (consultants & clients) will work team work together (typically 2-3 years together to solve the problem: in consulting, eg post MBA) will: Work through the issues logically specific roles of Ensure the problem Discuss approaches and solutions as a consultants/ is correctly defined associates/partners, team and scoped is there a hierarchy? Conduct desk research, interview and Understand what observe clients, ask awkward Who generates the client needs to questions, collect and analyse data, ideas and who achieve consult experts implements them? Sound out Substantiate conclusions with data, Is the work more approaches and data, data qualitative or potential solutions quantitative? (hypothesis based) Obtain buy-in from team members and client’s senior management 8 Or text 079 6690 7426
- 9. Can you give some examples of consulting projects? Questions Answers I understand it is very innovative, but it'd be Four best summarise my great to have some more concrete examples? consulting career: Do top consultancies also drive the Merger between 2 global airlines implementation of their ideas or do they always end the project with only recommendations? Operational improvement at flight catering centre What is the typical involvement of a consulting firm with the client after Energy (coal) supply & demand recommendations have been given? Focus on China Does it vary among different firms and does it Operational improvement depend on how senior you are? programme for large industrial miller and baker 9 Or text 079 6690 7426
- 10. Backup Example project 1: Merger between two global airlines Problem: Asked by CEO of XYZ Air to assist build a business case for merger, to present to Board Project: Two teams, each led by a manager with 2 or 3 consultants/associates, three month timeframe Identified likely areas of synergy and estimated quantity of each ‘Killer’ analysis was reconstructing the other airline’s operating and maintenance schedule by working backwards from published timetables Also lots of detailed working through organisation charts and expense details with XYZ Air’s senior managers Developed detailed brand and service strategies to minimise top-line erosion Workshopped findings with select senior managers from both airlines Findings: Validated key assumptions and overall value - £1+bn synergies Results: Work was presented to Board – they continued to move forward with the project Merger was eventually announced to markets, but rejected by regulators 10 Or text 079 6690 7426
- 11. Backup Example project 2: Operational improvement at flight catering centre Problem: Asked by GM Catering of XYZ Air to advise on cost reduction and operational improvement at regional flight catering centre Project: One team, led by a manager with 2 consultants/associates, three month timeframe (one of 8 or 9 such teams running simultaneously in the same client) Hand-picked 15 client team members to perform the project analysis and act as change champions First day was met by a walkout of all staff leading to no food on planes for a 6 hour period Identified likely areas of opportunity and quantified each Included sifting through all discarded meals from one day’s flights to identify what passengers really want to eat, rather than what they say they want Benchmarked potential savings against wholesale outsourcing Findings: Over £1m annual saving possible from reduced flight delays, re-scoped food menus and efficiencies in ingredient procurement Results: All recommendations accepted and implemented – XYZ went on to further reduce scope of economy class hot meals as it realised these really were not valued by public 11 Or text 079 6690 7426
- 12. Backup Example project 3: Energy coal supply and demand study Problem: Asked by Group CEO Energy of Global Mining Co to produce bottom up forecast of energy coal prices for next 15 years based on comprehensive supply and demand study Project: Sino-Australian team: 2 managers with 4 consultants/associates, with 1 senior manager and two engineers from the client, 3-month timeframe (based in China for 2 months) Completed survey of 300 Chinese mines using local market researchers, and exhaustive electricity demand projections based on GDP growth and demand elasticities Modelled all planned power stations over next 15 years and likely impact on demand Thoroughly researched Chinese road, rail and sea transport infrastructure Built global supply and demand model using company information Findings: Ground-breaking (then!) view on explosion of Chinese natural resource demand Confirmed availability of low cost coal production to meet this demand, despite likely short term transport bottlenecks, and unviability of some of Global’s assets in the long term Reviewed Global Mining’s cost position and made advised strategy for each mine Results: Strategy not adopted – Global Mining instead reacted to short term price rises, raising long-term price forecasts, and overinvested in acquisitions which destroyed value 12 Or text 079 6690 7426
- 13. Backup Example project 4: Improvement programme for industrial miller/baker Problem: Asked by COO of Aussie Milling & Baking Co to develop a company-wide performance improvement programme for manufacturing operations Project: Australian team: 2 managers with 3 consultants/associates, with 1 manager and 6 plant staff from the client, 3-month timeframe (based in industrial bakery for 2 months) Organised the work around quantifying and then targeting waste streams around the plant – waste defined by all resources Materials mass balance Space Labour Plant Energy Findings: 25% reduction in overall costs possible, principally in ingredients and labour Proven methodology and templates that could be rolled out by client workforce at all sites Results: Programme adopted – Aussie Milling & Baking Co rolled out programme across portfolio of manufacturing assets over next 2 years 13 Or text 079 6690 7426
- 14. How do consulting firms add value? Question Answers As consultants are ‘As adept as senior management’ working on various – Not that high a hurdle! industries/institutions, how do they arm Different skills – consultants are specialist problem themselves efficiently to solvers, not generalist managers become as adept as senior management in Personal experience – not that hard to add value to a specific industry and senior management team within 4 weeks of starting in a even provide practicable new industry solutions? 14 Or text 079 6690 7426
- 15. How does staffing work? (1 of 2) Questions Answers How are team members All firms (especially the large ones) have dedicated, selected? professional staffing functions How much ability do you A range of factors influences staffing have at the top tier firms Availability Market systems to select industry/ clients/ projects? Experience Development needs Reputation Preference How do major strategy consultancies create Performance/reviews Team balance project teams and is it Expertise … possible to influence that? Don’t underestimate importance of networking, reputation with partners/managers 15 Or text 079 6690 7426
- 16. How does staffing work? (2 of 2) Questions Answers As an entry level consultant Some firms hire into specific practice areas, others coming from a pharma R&D don’t background, will it be possible for me to specialise in a Some firms specialise or focus more in some particular area? practices than others Ditto for offices within a firm Will it be better for me to target a boutique consulting firm or a Some boutiques are specialised in industry sectors full service consulting firm? or functions, others are more generalist Regardless of their ‘junior’ model, most firms require a degree of specialisation by practice area as you progress to more senior levels 16 Or text 079 6690 7426
- 17. Tell us about exit from consulting, and opportunities after consulting (1 of 3) Questions In regards to the career progress: could you talk about possible career options outside the consulting industry at different points of the consulting career stages? What are typical exit opportunities and exit timing for MBA-holder consultants? Besides consulting, I am interested in corporate strategy roles in large industry organizations (where I could work on processes, organization, and strategy, not solely M&A) and strategy/ operations roles in PE (e.g. KKR Capstone). How would consulting experience would fit into such career? Is it at all possible to get such job without prior experience in consulting? What is your experience on moving from one to another consulting firm eg having spent a couple of years with the first one? What are the potential/most feasible/most common exit options for consultants at different levels? 17 Or text 079 6690 7426
- 18. Tell us about exit from consulting, and opportunities after consulting (2 of 3) 6-9 years Half life < 2 years 4-5 years 2 years post MBA Partner1,3 Manager1 • Partner/ Typical MBA Director2 entry level • Associate Case Team Principal2 • Vice Leader1 • Principal3,4 President4 • Engagement Consultant1,3 Manager2 • Associate2,4 • Project Leader3 10% survive? • Senior 25% survive? Associate Associate4 Consultant1 • Business Analyst2 50% survive? • Associate3 • Consultant4 18 1 Bain, 2 McKinsey, 3 BCG, 4 Booz Or text 079 6690 7426 Note: Timings very approximate
- 19. Tell us about exit from consulting, and opportunities after consulting (3 of 3) Exit to: mid-management/ analytical roles in large 6-9 years companies, senior manager 4-5 years roles in mid-size 2 years post MBA Partner1,3 Manager1 • Partner/ Typical MBA Director2 entry level • Associate Case Team Principal2 • Vice Leader1 • Principal3,4 President4 • Engagement Consultant1,3 Manager2 • Associate 2,4 • Project Leader3 • Senior Exit to: Industry leader, Associate Associate4 Exit to: senior CEO/direct report in Consultant 1 management roles large companies, retire, Exit to: analytical, planning, • Business in large companies, establish own winery strategic, management roles Analyst 2 CEO/direct report etc… • Associate in industry 3 roles in mid-size • Consultant4 19 1 Bain, 2 McKinsey, 3 BCG, 4 Booz Or text 079 6690 7426 Note: Timings very approximate
- 20. Tell us about work/life balance… Question Answers Is there some Consulting is tough – hours can be crazy and unpredictable, tendency regarding as can travel. 60-70 hour weeks typical, 90+ possible travelling needs and work hours among Travel varies a lot between firms and offices different firms/offices Staffing model (geographic Area covered location)? Type of work done also drives travel I am particularly interested in the Work with clients means 4 or 5 days a week at client sites work-life balance Market sizing/competitor analysis may mean mainly desk aspect of being a work consultant London – lots of clients in the city – but also global clients Hours often driven by your and your managers’ style 20 Or text 079 6690 7426
- 21. Today’s agenda Introductions What is management consulting? Who are the consultants? How do I get hired? Recap & next steps 21 Or text 079 6690 7426
- 22. How do the firms differ? Questions Would it be possible that you spend more time, explaining different types of consulting and the companies in each consulting sector? I see one slide in “Who are the consultants” presenting different consulting types, but more detailed explanation would be appreciated. I have been speaking with many consultants, working in companies such as McKinsey, Bain, BCG, and Monitor. Unfortunately, even they are not really sure about the core values that differentiate one with another. I have been able to observe slight differences between their working styles. However, I do not think that my findings will be enough in an interview. Do you have any tips for us? 22 Or text 079 6690 7426
- 23. The most useful way to segment firms is by fees and size High Strategy Boutiques Global Elite (‘Top Tier’) Mars & Co BCG McKinsey Strategy Bain Booz Consulting PRTM Diamond ATK Revenue per Consultant ZS Associates IBM Atkins Deloitte Accenture CapGemini Diamond Low Specialists Global ‘Full Service’ 10 100,000 Size of Firm (# consultants) 23 Source: ADD Resources Or text 079 6690 7426
- 24. The ‘Top Tier’ firms have similar business models and products Why They Look The Same Similar people Data driven analytical approach ‘Top Tier’ Firms Recruit highly selectively from Slide driven communication top business schools McKinsey Moved from short term projects to Partnerships long term relationships, many years BCG ago now Rigid up or out, rapid progression Bain to partner for a few Work on all aspects of management +/- Booz Blue chip clients Whatever matters most to the +/- AT Kearney Eg FTSE 100 Chief executive and board Leaders in their field Equally comfortable in implementation as ‘strategy’ Issue/hypothesis based workplanning 24 Or text 079 6690 7426
- 25. Observed cultural differences between McKinsey, BCG and Bain Influence Generalist, Private equity focus More McKinsey Bain Value specialised, including specialist hiring BCG Generalist Ideas 25 Or text 079 6690 7426
- 26. Tell us about boutique firms… (1 of 3) Questions Answers Can you list boutique firms so I can research 1,000s of firms! them more? Try my blog Tell us more about areas of specialisation of “The Definitive Guide to UK Consulting different firms Firms” Private Equity: Can you give us a general – by Top-Consultant.com understanding about the consulting activities in this area? “How do the Top Firms Differ?” VC/Tech incubators: Does any company Also Vault guides, BLT provide management consulting to Venture Capitals/ technology incubators as well? PE: Bain, Parthenon, Big 4…+ many others Would like to get as much information as Lots of DD, a bit of improvement and v. little possible in regards to consultancies that strategy have sport divisions or boutique firms that specialise in sport and the business of Sport: Deloitte + many others sports Mention BCG 26 Or text 079 6690 7426
- 27. Tell us about boutique firms… (2 of 3) Generalists: McKinsey, BCG, Bain, Booz & Co, Roland ‘Top Tier’ & Across sectors Berger, A T Kearney, Monitor, Marakon, LEK, Big Boutiques Strategy, M&A, PE, Operations, Processes, OC&C, Parthenon Group Organisation Part of much larger firms, leverage accounting, Accenture, Deloitte, IBM, PA Consulting Global, Full Service auditing, corporate finance, systems relationships Specialise in a sector (eg FS, FMCG, transport, Finance: Oliver Wyman, McKinsey Corporate construction…) or function (eg finance, HR…) Finance Functional & Sector IT: McKinsey BTO, Axon, Specialists Sales and Marketing: ZS Assocs, Wolff Olins HR: Towers Watson, Hay ‘Small’ Boutiques Very many firms, some quite small e.g., Greenwich Associates, Mars & Co, Internal Often do the same work as consultants e.g., Diageo, Reuters, Shell, Deutsche Post, Consultants Many different titles Vodafone, Oracle 27 Or text 079 6690 7426
- 28. Tell us about boutique firms… (3 of 3) Questions Answers How do they hire? 1,000s of firms! What are the recruiting policies and Larger ones, with models based on top tier, structures of the boutique strategy hire like the top tier consulting firms? But fewer hires, not every year Do they have on campus Eg 2020 Delivery recruitment programmes? Specialists may only be looking for relevant experience, or not value MBAs so much May not advertise/come here May or may not be receptive to applications All will give details on their websites 28 Or text 079 6690 7426
- 29. Today’s agenda Introductions What is management consulting? Who are the consultants? How do I get hired? Recap & next steps 29 Or text 079 6690 7426
- 30. Explain the numbers… Questions Answers Can you explain why only 10% of LBS students got Not 10% – I don’t top-tier consulting jobs? Was it because the recognise that number applicants were too similar or the market was down, etc? I was analysing the London Business School Permanent hiring always employment report and figured that Consulting firms exceeds summer don't really hire as many interns for the summer as they internships hire for full time. This has also been told by a few recent Don’t confuse timing MBA graduates. In fact the report indicates that issues (different cohorts) summer hiring is barely about 25-30% of the full- when reading the time hiring. Does this mean that Consulting firms don't employment stats rely much on summer internships? 30 Or text 079 6690 7426
- 31. You can’t all get jobs in the ‘top tier’ Illustrative Top Tier Recruiter 2008-9 2nd Round Applications 1st Round Interviews Hires Interviews 350 92 (26%) 33 (9%) 10 (3%) 160 190 52 17 4 40 16 6 31 Blue = Spring (‘summer internship’) recruiting Red = Autumn (‘full time’) recruiting Or text 079 6690 7426
- 32. Autumn 2009 saw 50 MBAs get consulting offers (47 accepted) 32 Or text 079 6690 7426
- 33. Summer 2010 shows the market continuing to improve, with 64 MBA consulting internships 33 Or text 079 6690 7426
- 34. What are they looking for again? Questions Answers I understand there are certain requirements 3 models: to get into a good consulting firm but have also heard things like requirement of a high GMAT score which is not defined at any 1. Smart, charming, driven point but a significantly higher than average GMAT score like say 730+. In addition Easy to remember some firms also look at the Undergrad 2. Problem solving, personal impact, GPA scores. Is this correct? If yes, to what leadership, drive/aspiration extent? Robust, lots of detail How important is networking for Consulting jobs? I heard from some people 3. My self-assessment framework that it is more important for Banking jobs rather than Consulting jobs Statistical predictive validity, simple, easy to apply, and a little bit scary 34 Or text 079 6690 7426
- 35. ‘How to get a consulting job’ on a single slide? – Easy! Brilliant Smart Top of the class Double degree, first class honours If you had this magical Obama mix, I guarantee you Charming The young Cary Grant wouldn’t need me to review your CV or to ?? practise a single case… Lance Armstrong Driven Michael Schumacher Bill Gates
- 36. A more actionable checklist involves four areas of competency Problem Personal Drive/ Leadership Solving Impact Aspiration Intellectual capacity Presence Maturity Driven by results – action oriented Analytics/quants. Confidence vs. ego Track record (sporting, clubs) Enthusiasm Creativity People skills Integrity Desire to excel Business judgement Team player Inspirational Other interests Comfort with ambiguity Sense of humour Willing to take personal risks Could I put you in front of a client on Day 1? Could I spend 24 hours flying from London to Sydney with you?
- 37. Self-assessment framework Assess your own CV for your ‘hirability’ for strategy consulting The tool produces a ‘CV Score’ out of 10 Academic: Rate your academic performance out of 4 Professional: Rate your professional experience out of 4 ‘Other’: Rate your ‘other’ information out of 2 Exceptions: Consider what specific exceptions might apply in your case 37 Or text 079 6690 7426
- 38. It works! (…up to a point…) % of applications securing any consulting offer Scary! Not what you do while at B-School, but who you were when you came here Not about how well written your CV is either… Score: 38 Or text 079 6690 7426
- 39. How will consulting firms view my particular background? Questions Answers How much do consulting firms place value A lot! on previous work experience and background? How much does your education and work A lot! experience influence hiring? Which firms like technical background All top tier and strategy firms, plus many niche (meaning strong quantitative/ analytical firms skills)? Which firms like strong GMAT score? BCG and McKinsey in particular, but all strategy firms to some degree The main candidate pool for consulting General business knowledge and sense recruiters is MBA students. Upon what aspects could non-MBA students improve Motivation – is consulting your first choice, or just and address emphasis? what you’ll do if you don’t get your I-banking job? 39 Or text 079 6690 7426
- 40. Lots of personal, specific questions on ‘How will consulting firms view my particular background?’ Questions Answers I have worked in Pharma R&D for 6 years and am a physician by training. I want to stay in the healthcare after my MBA. Do firms hire for their healthcare practices from London Business Most of these are too personal for this School? presentation I have 8 years experience in Telecoms and Hi-tech (Sales Support and Account Management) – should I leverage my experience while pitching for consulting firms? Will this experience constitute a fifth area of competency in addition to those mentioned in your Complete the self-assessment presentation? Will I be considered for the same typical MBA entry level to consulting firms irrespective to the years of experience I have? Work up your CV and submit it to me I have a background in marketing and business development in the LPG and natural gas markets in Turkey. How would this previous professional experience help me in my job search through Career Central for a consulting position? Would this provide a competitive advantage in applying to boutique strategy consulting firms that are focused on the energy sector? Talk to people – alumni, 2nd years, with If you want to apply to a particular consulting sector (I have a medical background and I'm interested in healthcare consultancy), what is the best strategy (ie a top-tier generalist firm your background with a healthcare division or a boutique firm specialising only in healthcare)? I believe that my time in the military has provided me with experiences that highlight my Arrange a 1:1 or come to a drop-in to leadership, problem solving skills, and team work mentality, but how would I go about discuss conveying these to consulting firms that might look at me as an atypical candidate? I have a military background but I do not want to consult in the defence industry, and would prefer to start off as a generalist. Despite this, should I focus on industries of interest (such as What matters is not what you have done energy, construction or healthcare) in order to be more marketable? but what you can do. However, what you Do Consulting firms give any advantage to candidates from any specific background pre-MBA? have done is a very good indicator of what Do they look at candidates who are willing to work on a specific sector based on prior you can do! experience and expertise or do they prefer hiring as generalist consultants only? 40 Or text 079 6690 7426
- 41. A few words on experience Irrelevant Balance Sought Relevant Valued Non-Consulting Generalist roles, Generalist roles, Specialist roles, Specialist roles, Experience generalist firms generalist firms generalist firms generalist firms Specialist firms Specialist firms Consulting Entry level roles Experience Good Entry level roles Higher level roles quantitative/ Areas of (especially problem solving weakness/ around sales experience question marks in ability outside Good performer some areas ‘top tier’) across other Very small firms dimensions 41 Or text 079 6690 7426
- 42. How does hiring work globally? Questions Answers Can you also discuss the In general: possible locations? I am especially interested in Firms want you to have a connection to the country you apply to. hiring patterns with McKinsey has even quantified this – if you were educated there, you respect to Singapore, must also have worked there for 12 months; if not, then 24 months is Hong Kong and Mumbai the minimum However, each firm is different Is it comparably difficult to Language requirement also apply to most offices find a job in London vs. the other locations? Where firms cover a wide geography from one office, this applies to the region rather than the country (and multiple languages become more important in hiring decisions) Can I get an offer in one India can be hard as LBS graduates have higher expectations of salary country, then negotiate than the local market to start in another? NO! 42 Or text 079 6690 7426
- 43. 50-60% of the jobs are in London, with a good spread around the world MBA2010 MBA2011 43 Or text 079 6690 7426
- 44. Tell us more about the fit interview… Questions Answers How much importance is given on the weaknesses/ Not today! strengths in the fit interview? What should the weaknesses show about myself? Should they be Will be covered in relevant or irrelevant to consulting? Essential Consulting Skills Workshop II on 12 Where can we get information about the specifics of November what a firm does for the purposes of knowing what to say in an interview and also for general knowledge purposes? I believe that my time in the military has provided me with experiences that highlight my leadership, problem solving skills, and team work mentality, but how I would go about conveying these to consulting firms that might look at me as an atypical candidate? 44 Or text 079 6690 7426
- 45. Today’s agenda Introductions What is management consulting? Who are the consultants? How do I get hired? Recap & next steps 45 Or text 079 6690 7426
- 46. Recap – ‘What?’ Management consulting is a broad field, concerned with solving clients’ business problems at all levels Value, rigour, speed and independence are key Consultants work in teams, and apply a rigorous problem solving process Consulting has many attractions, but will not suit everyone Only you can tell if it’s for you – take today as a starting point and research the sector, and firms… 46 Or text 079 6690 7426
- 47. Recap – ‘Who?’ I hope this has given you some ways to think about which firms to apply to Don’t apply only to McKinsey, BCG and Bain If you do apply to the top tier firms, have a backup strategy Choose firms based on what drives you, your strengths, and research on the firms concerned 47 Or text 079 6690 7426
- 48. Recap – ‘How?’ It’s very clear what most of the recruiters are looking for: Problem solving ‘smarts’ Personal impact ‘interpersonal skills’ Leadership (potential…) Maximise your chances Drive Pick firms that resonate with Ask yourself you, your skills and experiences Do you really stand out on these dimensions? Does you CV/cover letter really reflect that? Pick offices that resonate too Recruiters have a multi-stage process that focuses on you Don’t just apply to the ‘top tier’ – underlying competencies, especially problem solving, what are your Plan B and Plan primarily using tests and case interviews C? It’s a big time- and emotion-sink It’s highly selective, <10% of applicants succeed with each top tier firm 48 Or text 079 6690 7426
- 49. Next steps Join the Consulting Club Hone your personal brand, cover letter and & attend their events fit interview approach: Kick-off Monday 13 September, 7pm Essential Consulting Career Skills Workshop II – 12 November Get your CV sorted Peer Leadership programme Career Services L&D team Complete the self-assessment guide January recruiting for MBA internships Embark on preparing for case interviews: (happens quicker than you think!) Essential Consulting Career Skills Workshop I – 1 October …Summer internship, Autumn recruiting… Crack-a-case programme MBAs submit your CV to me for feedback (1st And if you want… week October, via Career Central) Follow my blog www.problemssolved.org Twitter @jpstrategy 49 Or text 079 6690 7426
- 50. Thank you! 50