Upload
dale-wright
View
213
Download
0
Tags:
Embed Size (px)
Citation preview
2
Our agenda for today’s presentation
What a consultant
does
Overview of the
management consulting industry
The client engagement
Interviewing with a
consulting firm
3
First, some ground rules for today
This is NOT a Towers Perrin recruiting presentation We may provide examples from our experiences at Towers,
but this is meant as an introduction to the industry in general
Please ask questions throughout the day We’re helping only if we’re answering the questions you want
answered
There are NO stupid questions It’s better to ask the “silly” questions now, rather than at a
firm’s reception
4
Overview of the
management consulting industry
The client engagement
Interviewing with a
consulting firm
What a consultant
does
5
What is a management consultant?
Management consultants are business advisors to companies and other organizations
Client contacts typically are senior- and executive-level managers
Services may be provided in several areas, including:
Functional areas
Strategy
Information technology
Human resources
Operations
Logistics
Specific industries
Financial services
Oil and gas
Chemicals
Health care
High technology
6
This is what you hear a management consultant does . . .
Competitive assessment
Customer satisfaction measurement
Benchmarking
Corporate/business unit strategy
Product positioning
Marketing/distribution strategy
Value chain analysis
Customer retention
Mass customization
Portfolio analysis
Shareholder value analysis
Business process improvement/reengineering
Cycle time reduction
Total quality management
Activity-based costing
Organization design
Change management
All types of analyses must be performed in
light of the client’s strategies
INTERNALEXTERNAL ANALYTIC FOCUS
7
. . . but what does it mean to you?
You will:
Be staffed on a project (as opposed to originating work)
Gather project data Research the client, industry, and market Conduct client interviews, secondary research Work with/lead/facilitate client project teams
Analyze data Tap into company resources and tools Perform quantitative analysis (“crunch” numbers business-school style) Perform qualitative analysis (e.g., use disparate data to develop
findings)
Continued . . .
8
. . . but what does it mean to you?
You will:
Develop recommendations for discussion by project team members
Produce reports/presentations in conjunction with project team members
Participate in firm/internal development projects Marketing/new business Intellectual capital Recruiting
9
So why would anyone in their right mind want to be a consultant?
Learn about lots of different industries Work with bright, dynamic, hard-working people (like those you know in school) Gain exposure to client senior management Make a virtually “no-lose” career choice Believe in the work you do: consultants make business and the world a better
place Travel Find a highly legitimate way to make a transition from one industry to another Develop a strong contact network to help you throughout your career Enjoy the thrill and fast pace, especially as project and report deadlines near Avoid having to figure out what you want to do when you grow up
Source: Adapted from Wet Feet Press (www.wetfeet.com).
10
Why should you choose not to go into consulting?
You don’t have complete control over your schedule Travel can wear you out You don’t like the unstructured, ambiguous nature of the work There is too much variety; you would prefer to develop depth with one
organization You don’t really believe that consultants add much value; you question the
profession The hours can be extreme and unpredictable Your recommendations might not be implemented; final decisions are out of
your hands You prefer to work for or with small companies You prefer being on the line and having profit-and-loss accountability Your clients can fear and perhaps dislike you
Source: Adapted from Wet Feet Press.
11
What reasons should not matter?
The money is too good to pass up; you’ve got student loans to pay
Travel is “glamorous”
Fancy restaurants, cell phones, and expense accounts
You want to impress your friends
“I can do it for a year, then move on to something else”
The Wall Street Journal says everyone’s doing it
12
Consulting allows you flexibility and opportunities for continuous learning, which can prepare you for a wide variety of careers
What positions/careers/opportunities can result from your experience as a consultant?
A career in consulting Consultant Managing Consultant Principal (Partner) Practice Leader Office/Geographic Manager
Skills for a different or enhanced career
Preparation for middle and upper management in industry
Preparation for entrepreneurial ventures
You name it
13
What personal attributes are required for success in consulting?
Intellectual and analytical ability
Ability to understand and work well with people
Ability to communicate, persuade, and motivate
Sense of humor
Intellectual and emotional maturity
Tolerance for ambiguity
Personal drive and initiative
Integrity
Physical and mental stamina
Source: Adopted from Management Consulting: A Guide to the Profession.
14
The client engagement
Interviewing with a
consulting firm
Overview of the
management consulting industry
What a consultant
does
15
The management consulting industry continues to grow . . .
Over 60% of this revenue is generated by the top 50 firms
Projected at 13% per year through 2000
Growth varies by consulting service line ‘92-96: IT 16%, Operations Mgmt. 14%, HR 10%, Strategy
18% ‘97: IT 29%, Operations Mgmt. 16%, HR 15%,
Strategy 11%
Source: Adapted from Consultants News.
Total Worldwide and U.S.Management Consulting Revenues
Rev
enue
(in b
illio
ns)
Size
Growth
$17.4 $21.0 $23.9$39.0
$47.1
$0
$10
$20
$30
$40
$50
$60
$70
$80
1994 1995 1996 1997 1998
Total Worldwide
United States
$34.0$40.0
$45.0
$73.0$89.0
16
. . . is still one of the mostpopular choice for Anderson graduates . . .
Percentage of Anderson Graduating ClassEntering Consulting
Source: 1993-1999 MBA Program Placement Reports
14.0%
18.4%
21.8%
32.0% 31.6% 32.6%30.6%
20.3%
0%
10%
20%
30%
40%
1992 1993 1994 1995 1996 1997 1998 1999
17
. . . and is an increasingly lucrative choice as well
45.0 45.038.0
45.0 45.0
60.0
45.0
68.0
180.0
85.0
130.0
100.0112.5
130.0
100.0
145.0
63.5 63.075.0 80.0 82.5 85.7 87.2
95.5
$30
$60
$90
$120
$150
$180
1992 1993 1994 1995 1996 1997 1998 1999
Starting Salaries (mean and range) of Anderson Graduates Entering Consulting
In Thousands
Source: 1993-1999 MBA Program Placement Reports
18
Many major consulting firms trace their roots to other firms
1910
1920
1930
1940
1950
1960
1970
1980
Booz-Allen1914
Cresap1946
McKinsey1926
Arthur D.Little1886
TowersPerrin1934
BostonConsulting
Group1963
Bain1973
LEK1983
Monitor1983
Braxton
1976 Towers PerrinGeneral
Management Services
1983
Alliance1986
Quantum
1989
Strategic Planning
Associates1972
One major parent
Parented by two firms or more
Acquisition
Source: Adapted from Bain & Company, Inc.
19
McKinsey & Co. Gemini Consulting Booz-Allen &
Hamilton The Boston
Consulting Group A. T. Kearney Bain & Company Monitor Company Marakon
Associates
CPAHUMAN
RESOURCES/BENEFITS
INFORMATION TECHNOLOGY
GENERALIST/ STRATEGY
IBM CSC American
Management Systems
EDS Metrius Diamond
Technology Partners
Mercer Consulting Group
Towers Perrin Watson Wyatt
Worldwide Hewitt Associates
LLC Sedgwick Noble
Lowndes Milliman &
Robertson Buck Consultants Alexander
Consulting Group A. Foster Higgins &
Co. Godwins
International The Segal Co.
Ernst & Young Andersen
Consulting KPMG Peat Marwick Price Waterhouse
Coopers Deloitte & Touche Arthur Andersen Grant Thornton
Source: Consultants News, July/August 1995.
The major management consulting firms often are grouped into categories on the basis of their origin, but this can be misleading
E-COMMERCE
Agency.com Razorfish USWeb/CKS Viant Zefer
20
The ten largest consulting firms generate over one-third of the industry’s revenues
Firm Worldwide U.S.
Andersen Consulting $7,129 $3,578
PricewaterhouseCoopers $6,000 $2,700
Ernst & Young $3,870 $2,400
Deloitte Consulting $3,240 $1,480
CSC $3,000 $1,900
KPMG $3,000 $1,516
McKinsey & Co. $2,500 $1,023
Cap Gemini Group $2,261 $272
Mercer Consulting Group $1,543 $926
Arthur Andersen $1,368 $691
Source: Consultants News, June 1999.
*Revenues in millions.
1998 Management Consulting Revenues*
21
Overview of the
management consulting industry
Interviewing with a
consulting firm
The client engagement
What a consultant
does
22
Steps in a consulting engagement
Staffing theengagement
Scopingthe job
Sellingthe job
Identifying the lead
Identifyingnext steps
Performing the work
23
Marketing Image/advertising General promotion “Events”
New business development (sales) Market analysis Internal referrals (LOBs) Client referrals Previous/repeat client work Previous career contacts (industry and former
consultants) Personal or family contacts
Staffing theengagement
Scopingthe job
Sellingthe job
Identifying the lead
Performing the work
Identifyingnext steps
Steps in a consulting engagement: identifying the lead
24
Steps in a consulting engagement: selling the job
Identifying the issues Selling = listening “What keeps you awake at night?” Probing for possible root causes
Proposing solutions Alternatives/scenarios Methodologies/approaches to determining desired results
Reaching agreement on how to proceed Discussion/agreement Letter of intent Formal RFP (request for proposal) or direct proposal Budget estimate (if appropriate)
Staffing theengagement
Scopingthe job
Sellingthe job
Identifying the lead
Performing the work
Identifyingnext steps
25
Steps in a consulting engagement: scoping the job
Defining the scope Identifying the approach and resources required
Tools/analyses to be used
� Gap analysis
� Roles and responsibilities Client and consulting resources available
� People for teams
� Experts
� Internal and external data/information Developing the project plan Identifying the deliverables Defining the budget
Staffing theengagement
Sellingthe job
Identifying the lead
Performing the work
Identifyingnext steps
Scopingthe job
26
Steps in a consulting engagement: staffing the engagement
People involved Principal Managing Consultant Consultant Associate Other LOBs/experts
Roles of each/rationale for involvement Experience Expertise Billing rate
Availability, geographic, and development considerations
Sellingthe job
Identifying the lead
Performing the work
Identifyingnext steps
Scopingthe job
Staffing theengagement
27
Steps in a consulting engagement: performing the work
Working with client teams Gathering data
Client interviews Primary/secondary research Surveys
Analyzing data Creating the work product
Documentation� Working papers� Interim findings� Analytics
Recommendations Presentations
� Written product� Oral presentation
Staffing theengagement
Sellingthe job
Identifying the lead
Performing the work
Identifyingnext steps
Scopingthe job
28
A real-life example: an aerospace/electronics firm
Staffing theengagement
Sellingthe job
Identifying the lead
Performing the work
Identifyingnext steps
Scopingthe job
Phase I Phase II Phase III
Go/No-Go Decision
Go/No-Go Decision
29
The project design specifies the consultants’ and client’s responsibilities
PHASE:
DELIVERABLES:
Requirements definition
Issue and problem determination
Root cause analysis
Improvement opportunity identification
Process and roles and responsibilities documentation
Detailed issue, problem, and opportunity analyses
Improvement alternative evaluation
Recommendation Implementation plans
Defined processes, structures, roles, responsibilities, and technologies
Trained staff Pilot testing Operational capability
I II III
Establish the improvement business case
Perform detailed analysis and develop recommendations
Implement recommendations
CLIENT COMMITMENT:
One phase at a time Go/no-go decision
points Go/no-go decision
criteria
Go/No-Go Decision
Go/No-Go Decision
30
Steps in a consulting engagement: identifying next steps
Immediate actions or analyses (for client) Possible follow-on business (internal)
Staffing theengagement
Sellingthe job
Identifying the lead
Performing the work
Identifyingnext steps
Scopingthe job
31
Issues in a consulting engagement:managing the client and changing priorities
Managing the client Schedules/agendas Access to client information Education/coaching of team leaders Unwilling client participants Internal politics/agendas Weak leadership/managers
Changing priorities Vague/shifting/evolving scope of work Budget limits/changes Mid-project “discoveries” /new or different issue definition Change in client project management Loss of interest/new priorities Corporate changes affecting the project
(leadership/structural/ownership)
32
Issues in the consulting engagement: communication
Consultants
Partners(often offsite)
ClientTeam
Members
External Influences
Press/Analysts Customers/Suppliers
Client Executives “No surprises”
Client Workforce Worry/
uncertainty
Project Team
33
Overview of the
management consulting industry
What a consultant
does
The client engagement
Interviewing with a
consulting firm
34
Laying the foundation for your success in the interview process
Assess yourself Interests Skills Personality traits Values
Formulate your career goals, narrow your focus
Find criteria to compare various career options Don’t become frustrated; this step is difficult and time
consuming
35
Preparing for the consulting interview
Visit the firm’s web site Read the firm’s brochure cover to cover
Identify the particular industry/functional focuses of the firm
Become familiar with the firm’s organization structure/key terminology
Compare the firm’s core businesses with your interests Use library resources for additional information
Lexis/Nexis, Hoover’s, Gladis, Internet, WetFeet, etc. Attend the firm’s on-campus presentations/workshops Search your school’s alumni database for company contacts Talk to people at the firm and previous summer interns about
specific questions you have Practice case interviews
36
Other issues to consider in evaluating firms
Size of firm and clients Marketing of the firm (i.e., image) Degree of specialization (firm’s and yours) Culture
Lifestyle issues Travel Overall environment/”feel”
Entry levels and promotion cycles Typically staff consultants, project managers, and partners
Training and development philosophy Defined core program On-the-job training Mentoring/development advisor
Profit model How does the firm make money, and how does this affect you? “Billability” targets