Consulting is an essential job title in many domains, especially upper-level business management. In this space, management consultants regularly shape the strategies eventually implemented by C-level executives and project managers.
Management consulting has become a vital industry over the past few decades in particular, as organizations have sought to adapt to new waves of business technologies along with major regulatory changes.
Today, a team of consultants might help with any task from formulating an IT upgrade plan to transitioning to the Financial Accounting Standards Board’s new lease accounting rules. Their overarching goal is to help clients improve organizational performance, whether that means keeping up with competitors or ensuring better compliance.
What Is Management Consulting?
Management consulting is the practice of providing organizations with analysis-based advice. It is designed to help them improve their performance and achieve any goals or objectives they may have. Organizations look to management consultants for objective external insights and specialized expertise.
Management consulting is not usually seen as a replacement for traditional internal management functions. Consultants typically work for third-party employers and do not become part of the organizations that they serve.
Management consultancies may provide organizations with services such as change management assistance, executive coaching, strategy development, process analysis and technology implementation assistance.
What Does a Management Consultant Do?
Also called management analysts, these professionals review issues pertinent to a client’s operations. Then, they gather information about any potential concerns, build potential strategies to address these concerns and meet with decision-makers to finalize a course of action.
With a plan in hand, consultants work with stakeholders to implement the necessary changes, as well as monitor progress and results. Management consultants may start working for a client — at least, in a sense — before a contract is signed and a relationship is formalized.
Businesses generally request proposals from several management consulting firms and independent consultants. Business analysts for these firms regularly provide a detailed proposal to potential clients before any substantial work can begin.
Specialties for Management Consultants
Within the field of management consulting, you can work in a wide variety of roles — each of which is associated with a different set of responsibilities. Some of the most common management consulting specializations include:
- Information technology consulting: Sometimes referred to as technology or software consulting, work in this field emphasizes finding solutions to high-level concerns related to a company’s technological infrastructure. Issues could range from ineffective data collection practices to disorganized management structures. Successful consultants need a mix of interpersonal, problem-solving and technological skills to succeed.
- Human resources consulting: The atmosphere in which a company’s employees work can have a major influence on productivity, engagement and similarly important factors. HR consultants help businesses develop more effective strategies for everything from onboarding new hires to managing experienced, high-level staff.
- Sales consulting: Several qualities set salespeople and sales departments apart from other areas of a business — that includes a focus on sales quotas, an emphasis on commissions in compensation, and the need to connect regularly with new prospects and existing customers. Sales consultants can help department leaders craft more effective strategies, compensation plans, employee training and much more.
- Leadership consulting: Enterprises generally lead from the top down, which makes strong policies and plans vital for success. A leadership consultant can help organizations reexamine their approach to managing and overseeing employees, resources, functions and the company as a whole.
- Nonprofit consulting: Businesses aren’t the only organizations that may require the support of a knowledgeable and experienced consultant. Nonprofits can face issues with revenue, fundraising, operations and executive decision-making — just to name a few. Nonprofit consultants build expertise in this unique field to offer specialized and relevant support.
- Government consulting: Government agencies and departments — from the municipal level to the federal government — can use consultants to address a wide variety of issues. Similar to nonprofit consultants, professionals in this focus area become familiar with the specialized operations, needs and goals of government agencies to provide effective support.
It is important to note that this list is not exhaustive. You can work as a management consultant in virtually any specialty. Employers simply seek out consultants who have experience that’s relevant to their industry.
Where Do Management Consultants Work?
Nearly every type of business can benefit from a management consultant. Smaller organizations, medium-sized companies and multinational corporations can all run into issues related to everything from operational strategy to oversight of human resources practices and policies.
However, most companies hire a management consultant when they recognize that a potential opportunity exists for growth or diversification, but they do not have a firm understanding of how to take advantage of it. In all these cases, management consultants can provide a fresh perspective, share best practices and offer guidance to right the ship or turn a valuable possibility into reality.
These businesses need to identify a management consulting firm or individual consultant with the acumen to offer effective support, of course. They must also have the funds available to compensate a consultant or firm. Beyond these basic requirements, nearly every organization can tap into this resource.
The broad usefulness of management consulting services is an important part of what makes this field so popular, both for clients who work with consultants and students interested in entering this field.
Salary and Career Outlook: How Much Do Management Consultants Make?
Because management consulting firms are used by organizations in so many industries, the employment of management consultants has been steadily increasing across the country. Additionally, management consultants can earn competitive pay due to their specialized skills and high-value services.
The U.S. Bureau of Labor Statistics classifies management consultants as management analysts. According to the BLS, it’s estimated that 950,600 positions were available in this role as of 2021 and that total employment would surge 11 percent from 2021 to 2031 — much faster than the average for all professions (less than 10 percent). In May 2021, management analysts earned a median pay of more than $93,000, which is significant enough to draw anyone into the field.
How To Become a Management Consultant
The competitive pay and promising future outlook make management consulting a highly desirable career path for many aspiring professionals. If you’re interested in becoming a management consultant, you must understand what skills you’ll need and how to acquire them.
What Skills Do Management Consultants Need?
Management consultants require strong interpersonal skills because of the emphasis this role places on communication. Key duties, ranging from collecting information and building context to presenting a report on the effects of a major change, require the ability to interact effectively with a variety of stakeholders. In addition, management consultants need a bare minimum of the following skills:
- Accountability: Management consultants may need to interface with everyone from frontline workers to a company’s top executives. The ability to self-manage and self-direct is crucial throughout this process, as consultants are expected to direct the implementation of outside methodologies, rather than following the lead of internal management.
- Analytical skills: Additionally, management consultants are expected to possess several important technical skills, including business analytics and strategic planning, as they must understand how data can be used to create business insights
- Time management: Consultants can work in a variety of settings when they travel outside their own offices. This sort of freedom can be a major asset, but it requires consistent self-discipline to manage available time effectively and deliver positive results. This is especially important in situations where a flat fee is paid to the consulting firm — more resources spent on a project make that fixed compensation less valuable.
Because consultants usually work for a client in a contract relationship, as opposed to being employed by the business directly, high expectations are often outlined. These organizations may have to make serious and complex changes by a certain date, putting stress on consultants. The ability to work under pressure is, therefore, a crucial need.
What Do Management Consultants Study?
Management consultants need to cultivate knowledge and abilities that empower them to provide effective guidance and spur meaningful change for their clients. A bachelor’s degree is typically the minimum entry-level requirement for management consulting positions.
According to the BLS, many fields can provide a suitable educational background for this career, and areas like business and social science are common fields of study. However, pursuing a management-focused degree may help set you apart from other candidates in the eyes of your employers.
Choosing a degree program that incorporates interpersonal communication and problem-solving skills — alongside management theories and the practice of various management techniques — can support growth in this career after graduation.
Pursuing a Bachelor of Science in Management can help you develop the leadership-focused skills that are so frequently leveraged by management consultants. Students in these programs gain insights into organizational dynamics, employment law and similarly relevant topics as they learn from a dedicated and experienced faculty.
What Certifications Do Management Consultants Need?
Along with pursuing a management-focused education, you can further set yourself apart for management consulting roles by earning a relevant certification. Some of the most valuable certifications for project management consultants include:
- Certified Management Consultant (CMC);
- Certified Manager (CM);
- Project Management Professional (PMP);
- Talent Optimization Consultant Certification.
While certifications aren’t required for most management consulting positions, they can help you increase your earning potential and distinguish yourself from other applicants by further developing your on-the-job skills and demonstrating your commitment to professional growth.
Sources:
U.S. Bureau of Labor Statistics, “Management Analysts”
The International Council of Management Consulting Institutes, “Certified Management Consultant”
Innovage Consulting, “The Program”
Project Management Institute, “Project Management Professional (PMP)®”