Strategy consulting is a highly challenging field. However, the right skills and a strong work ethic can make it an attractive career path.
Strategy consultants offer frameworks, structure, and best practices for ambiguous situations. They can help companies define strategy, support market entry into a new territory, or shift towards a different business model. Click Here to learn more.
Strategy consulting focuses on helping clients improve their business model, increase profits, and gain a competitive advantage. These professionals use various methodologies to evaluate and streamline operational processes. They also perform research and analysis to identify new growth opportunities. This career requires strong problem-solving skills, analytical thinking, and out-of-the-box ideas to make innovative recommendations. The career is a highly demanding and challenging one, but it can be extremely rewarding for those who are successful in it.
To become a strategy consultant, you need an in-depth knowledge of the business and industry. This includes understanding the company’s product or service, its competitors, and the market. You should also be familiar with the regulatory environment in which your client operates. For example, if you are working with a healthcare organization, it is important to understand the legal requirements for that industry.
Once you understand the industry and its challenges, you can begin to formulate strategies for your clients. You should start by identifying their strengths and weaknesses, and then formulate a strategic plan that takes advantage of the client’s strengths and offsets or improves their weaknesses. In addition, you should consider how external factors such as economy, market trends, and technological advancements might impact the client’s business model.
During the strategy formulation process, you should prepare detailed reports that detail your findings and recommend changes to the client. These reports should be presented to the client in a way that they can easily understand and implement them. You should also be prepared to provide ongoing support throughout the implementation process.
Before you pursue a career in strategy consulting, it is a good idea to seek out a mentor who has experience in the field. Most consultants are more than willing to share their insights and offer guidance for those who are interested in pursuing this path. It is also a good idea to take advantage of internships and other hands-on experiences in the industry to get a feel for what the job entails. This is an excellent opportunity to build your network and gain valuable skills that will be beneficial later in your career.
Functions
For many, the idea of a strategist or management consultant conjures up images of overpriced men and women in suits sitting around a boardroom table discussing their plans to dominate the market. However, strategy consultants can be a valuable investment for any business and help to guide the direction of the company in order to maximize its potential for growth.
The function of a strategy consultant is to provide advice and guidance on strategic issues, such as new product development, expansion into new markets, organizational structure, corporate culture, mergers and acquisitions, and public policy. They typically work with C-suite executives and other high-level management to analyze a company’s current position and make recommendations for improvement.
Often, companies need someone to take a step back and evaluate their business operations. They may also need a second opinion on a specific issue that has been ongoing for some time. Board members, executives, and other managers often have personal stakes in the company that can color their judgment on particular topics. A strategy consultant, on the other hand, is free of those biases and preconceptions.
Entry-level strategy consultants, generally with a bachelor’s degree in a relevant field, start out at a consulting firm performing research and analysis as part of a team. With experience, they can become associates, which involves taking on more complex research, analyzing data and developing solutions to solve clients’ problems. Manager-level strategy consultants have at least five years of experience and will lead teams, perform project management tasks, and sell new projects to clients. Principal-level strategy consultants are responsible for client relationships, overseeing other managers, and selling new projects at their firms.
Strategy consulting firms are also active in the M&A space, helping both parties to assess the value of a merger and working with the deal team on due diligence and integration planning. They are also involved in the formation of alliances and joint ventures, managing divestitures and carve-outs, and facilitating IPOs. As a result, strategy consultants need to have a wide range of skills and be flexible in their approach in order to meet the demands of the industry.
Types
Strategy consulting is a highly specialised area of consultancy. Its clients are typically senior management (Vice Presidents, Directors and CEOs) responsible for a specific business function. The most prestigious pure-play strategy consulting firms include Mckinsey, Boston Consulting Group and Bain. Other large professional services firms such as PwC, EY and Deloitte also have a growing strategy practice.
Unlike other types of consultancy, strategy consultants work with a client’s leadership team to devise realistic and achievable long term goals for the company. As such, strong analytical skills are vital for this career choice. Strategy consultants must be able to think outside of the box and find creative solutions to problems that are difficult to solve, and they need to have the ability to communicate those ideas clearly with others.
It is important for a strategy consultant to stay abreast of trends in the industry in which they work, so that they can provide their clients with valuable insights and advice. They must be able to quickly assess new information and apply it to their work, and they should have the flexibility to adjust their workload as necessary based on changing business needs.
Because strategy consultants often work to tight deadlines, they need to be able to meet and exceed expectations. They need to have a good understanding of the overall business process and be able to quickly assess how changes in one part of the system will impact other parts of it. This is especially important for consultants who are working on projects that focus on cost reduction and revenue growth. They must be able to develop and implement goals that will achieve these objectives in a short period of time. Ultimately, the most successful strategy consultants are those who can combine a strong understanding of their client’s business with a deep knowledge of their own field and subject matter. This combination enables them to make informed and confident decisions that will help their clients improve their business performance.
Firms
A firm that provides strategy consulting services must have deep industry knowledge and expertise in the areas relevant to its clients’ businesses. It should also have a track record of delivering measurable results and providing practical, actionable insights. The best strategy consulting firms will also have the ability to adapt their methodologies and approach to each client’s unique situation.
Clients of strategy consultants are usually senior managers (Vice Presidents, Directors, CEOs) responsible for a specific business function or with decision-making authority over a broad range of activities. The goal is to provide strategic advice that generates positive results and improves the company’s competitive position.
Strategy consultants work on the most important issues facing board members, CEOs and executives. These issues are often referred to as the ones that “keep the CEO awake at night.” While many of these challenges are operational in nature, it is not uncommon for them to require significant change management and substantial marshalling of scarce corporate resources.
While some companies employ internal specialists in these issues, it is not unusual for the top management of a major corporation to seek out independent strategic advice from consultants with a wide range of experience and skills. Whether it is helping to reshape a sales force or finding new ways to deliver content to digital readers, a firm that provides strategy consulting services will be able to provide the best solutions.
A number of specialist consulting firms exist that focus exclusively on strategy, but the vast majority of major generalist consultancy firms have a dedicated strategy practice. McKinsey, for example, arguably invented the field when it launched its strategy practice in 1963. It was followed in the 1970s by Bain and Monitor.
Those pursuing a career in strategy consulting should consider obtaining internships with one or more firms during their time as a student at a university. This will give them valuable insight into the industry and a chance to network with peers. Those wishing to advance quickly should look for opportunities at mid-level management positions with a strategy practice. Managers will typically lead teams and functional areas, as well as perform project management tasks. Partners will develop relationships with potential clients, drive firm strategy and oversee managers.