Strategy Consulting is a subset of management consulting that zeroes in on strategic interests (like making more money, cutting costs, entering new markets, etc.). Consultants who focus on strategy work with CEOs, CxOs, and senior managers.
They provide an outside, expert perspective to help businesses make big decisions. Strategy consultants have a presence in every industry and are often hired for their input on specific strategic decisions.
Strategy consulting is the practice of helping clients with strategic decision making. Often working on what’s best described as “the issues that keep the board of directors and CEO awake at night,” these strategic initiatives can span a broad range of areas. These might include market positioning, restructuring and identifying new opportunities.
Typically, this type of consulting work is done by large and specialist consultancy firms that focus on strategy and operations. Firms like BCG, McKinsey, Bain and Monitor are considered to have been the first firms to focus on strategy consulting (although there were certainly other consultancies prior to their founding). Increasingly, generalist consultancies have developed a distinct strategy practice alongside traditional management consulting.
In terms of what differentiates strategy from management consulting, a major factor is that this discipline tends to be less operational in nature and more focused on broader business goals. Unlike operations consulting, where the goal is to create efficiency and cost savings, strategy consultants are usually looking at new ways for their client to improve revenue.
To be effective in this area, strategists have to be able to develop commercial strategies in the sales & marketing domain, draft pricing, customer channel and product market combination strategies. Similarly, they will need to be capable of delivering human capital strategies and designing operating models that tie in with broader corporate goals.
In addition, they will have to be capable of identifying the potential impacts that any change could have on the wider organization. In this way, they will have to be able to make recommendations that are well founded and based on solid analysis. As such, this is a highly specialized field, and those who want to work in it should be aware of its demands.
Functions
Strategy consulting is a field that provides an array of career paths to individuals with different skill sets and focus areas. Each path has its unique impact on shaping businesses towards their long-term goals and objectives.
Clients are typically senior management in a business (Vice Presidents, Directors and CEOs). Strategic consultants work with their clients to help them make critical strategic decisions, as well as to develop implementation plans that can be implemented by the client’s internal teams. Typically, strategy consultancies work with industries such as technology, financial services, business and consumer goods.
Regardless of the industry, all strategic consultants have to be able to analyze large volumes of data and drive insights that will provide structural solutions to a business’s challenges. They also have to be able to report and present complex findings and recommendations in an easy to understand format.
Entry level strategy consultants begin as Analysts, immersing themselves in research and supporting senior consulting teams on various project tasks and client engagements. Mid-level strategy consultants manage components of projects, lead teams and develop more tailored strategies. They may also be responsible for cultivating client relationships and selling new projects to the firm. The top tier of strategists, known as Managers or Principals, shape the strategic direction of projects and have a strong impact on firm growth.
The field of strategy consulting is highly competitive. Consulting firms such as MBB employ an “up or out” policy whereby if you don’t secure a promotion in 2-3 years, it’s time to move on. The good news is that you’ll be able to find a position elsewhere as the demand for strategy consulting professionals is high.
Role
Strategy consultants work closely with companies to help them review how they can improve their practices. This includes reviewing their current goals and forming a long-term strategy to achieve them, as well as troubleshooting any existing problems that need solving. They are responsible for a variety of tasks including researching and analysing data, gathering feedback from consumers and experts and reporting back to their clients.
They often have a variety of different projects that they work on, and their key audience is usually the senior management (CEOs, directors and executives) within an organisation. They may also consult with boards and other key stakeholders to assist with the strategic goals of an organisation.
A typical career progression for a strategist would include working as a junior consultant to gain experience, then moving up into a manager role. At this level, they would take on more responsibilities and manage other consultants. They would work on a range of different projects and would apply the knowledge that they had gained through their time as a junior to develop better strategies.
The key skills that are required to succeed in this type of role are problem-solving, analytical and communication. Strategic consultants need to be able to gather and analyse a large amount of data and information, so they need to have excellent research skills. They also need to be able to communicate their findings clearly with their clients.
A successful strategist will have a strong work ethic and be prepared to put in the hours that are required to get results. This is a demanding and challenging job, but it offers the opportunity to make a significant difference to a company’s performance.
Skills
Strategic thinking and analytical prowess are at the core of a career as a Strategy Consultant. These skills are applied to conduct extensive research, dissect complex problems, and synthesize large amounts of data to deliver recommendations. Analytical acumen is also required to analyze business models and foresee potential market shifts. Moreover, proficiency in quantitative analysis and financial modeling helps to assess the impact of strategic decisions on business outcomes.
Developing the right set of skills to become a successful Strategy Consultant begins with gaining experience in your desired industry. This can be done through entry-level jobs, internships or freelance projects. Having industry exposure can make up for lack of formal education in the eyes of hiring managers and help you to quickly establish credibility when offering advice on critical issues to executives.
Strong verbal communication is also essential for the role, as it involves facilitating workshops and brainstorming sessions with clients. The ability to align diverse stakeholders around a common goal is also vital, especially in 2024, when digital transformation is expected to continue reshaping industries.
Gaining experience in the field also allows you to cultivate specialized expertise and develop a deep understanding of your clients’ businesses. Investing in professional development opportunities, such as online courses and seminars, can expand your knowledge of strategic frameworks and methodologies. In addition, joining global consulting communities can provide you with the opportunity to exchange ideas with peers and mentors and gain a broader perspective of cross-cultural business nuances.
Finally, continuous learning is non-negotiable for a Strategy Consultant, as you must stay informed about emerging trends and innovations to ensure that you are delivering cutting-edge advice to your clients. In this way, you can maintain a competitive advantage in the face of changing business landscapes and shifting market dynamics.
Education
A career as a Strategy Consultant is an excellent choice for those who want to make a positive impact on businesses. Strategy consultants help businesses overcome challenging situations by providing expert-level advice on business decisions. They are brought in as an unbiased third party to help ensure that every angle is considered before big decisions are made. There are a variety of qualifications that must be met to become a Strategy Consultant, including education, experience, and soft skills. To prepare for a career in this field, students should take business courses and pursue internships in their area of interest while in school.
In addition to a degree in a subject such as marketing, finance, or business administration, a strategy consulting candidate must have extensive problem-solving skills and an analytical mind. They must also be able to work well under pressure and meet deadlines. Strategy consulting is a demanding job, and the hours can be long. However, the rewards of this position are significant.
Strategy consulting is a highly competitive field, and the average salary is based on years of experience and the qualifications required for the role. The average entry-level salary is $80,000 and rises to $100,000 with each additional year of experience. The qualifications that are necessary for a successful career in this field include a bachelor’s degree, good communication skills, and analytical problem-solving abilities.
Those interested in a career in this field should consider taking the time to prepare for the case interview process. Many online resources are available to assist with this process, including PrepLounge, which offers preparation programs and coaching opportunities for candidates. This site also provides a virtual platform where candidates can practice their case interviews with other candidates and experts.