Why Consulting - Answering the Interview Question
Why go into consulting instead of the clearly superior investment banking?
Aren't consulting exit opps roughly equal to those of a retail cashier?
Consulting tends to be an afterthought when people are considering a career, simply because it's not banking, but the reality is that consulting is a very solid career choice. Yes, you travel a lot. No, you don't make as much as investment bankers. But you have to ask yourself: are those two factors enough to turn you away from consulting at first glance? They shouldn't be, considering the factors that make consulting appealing: fewer hours, travel (it can be a benefit, especially to recent grads), sponsoredMBA, tremendous exit opportunities, solid compensation, and more.
By the end of this page, you'll know whether consulting is for you or not.
Why Consulting - Interview Question
Before we get into consulting as a career choice, we need to indulge those of you who came here looking for an answer to the interview question,"Why consulting?".
First, what not to say in response:
- A desire to travel
None of the above give the interviewer any substantive reason to hire you. You need to speak to the specific functions of the job and tie that into your strengths. A particularly good answer will show your passion for consulting while tying it into your own story. Here are some good reasons to mention:
- You embrace responsibility and the chance to work with senior clients. You view it as an excellent learning opportunity.
- You enjoy seeing how businesses work and solving complex problems within organizations.
- You want to utilize your analytical skills in the business environment.
Again, you want to tie this into your story. How did you discover you wanted to pursue consulting? Did it happen in class, did a friend introduce you to it, or did you learn about it on a job shadow? Make it clear and cohesive. If you end up rambling you'll only lose points with the interviewer.
Travel in Consulting
Frequently cited as the biggest reason为了避免咨询,旅游咨询开启t not be as bad as the world makes it out to be. Put yourself in the shoes of a recent college grad. Would you rather be (1) stuck in an office for 14 hours a day and 6 days a week or (2) traveling and working with senior clients on improving their business? Unless you have some major commitments, scenario two probably sounds far more appealing. Yet, so many people opt for investment banking (scenario 1) because they despise the idea of frequently traveling for consulting.
Different Types of Consulting
First things first, we need to clarify the different types of consultants. We hear all these labels being thrown around - management, IT, strategy, operations - but what do they really mean? Are there separate consulting roles defined by these labels?
了解咨询已经变得如此多样化，以至于范式已经改变。它是less about management consultingcompared to other types, and more about what exact type of consulting one does. Typical consulting roles are: strategy, HR, IT, operations,M&A, etc. While management consultants exist - the only "true" management consulting positions exist atMBB(McKinsey, Bain, Boston Consulting Group) - these positions are mostly classified as strategy consultants.
So, management (strategy) consulting positions only exist atMBB.What are the differences between these roles and roles like HR, operations, economics, and more?That question is of major significance, but it can be answered by looking at the spectrum we mentioned before. Strategy consultants fall on the management side of things, whereas everything else is more technical.
The better question iswhat's the difference betweenMBBand the rest of consulting?
For exit opportunities,MBBand tier two consulting firms have the same general exit opps. It's just much easier to find your footing as a competitive candidate with anMBBon your resume. Here are the most common exit opps @Christie Lindor" found when analyzing where her fellow consultants were going.
- Entrepreneurship (37.5%): Starting one's own business/becoming a freelance consultant.
- 研究生院(20%): Typically but not limited to business school.
- Lateral into Boutique Firm (15%): Move into a leadership position at a boutique consulting firm. These firms involve significantly less travel.
- Industry (27.5%):
One particularly popular choice is moving into senior analyst/manager roles at F500 companies, especially fromMBB. You can also transition into venture capital, private equity, or banking. The point is, there are plenty of exit opportunities available to consultants. The above four are simply some of the more common routes among consultants.
In general, exit opps for any consulting gig are going to be pretty solid because of the skill set you develop and the network you build with clients and coworkers.
Time to talk about what everyone really cares about:compensation. No, consultants do not make as much as investment bankers.MBBtends to pay around $90-100k, while the average at other firms is anywhere from $60-100k. As you might have noticed, pay varies a ton outside ofMBB.
Potential consultants shouldn't look at all-in compensation comparatively and feel discouraged. Certain consulting firms (MBB among them) will pay for a part of yourMBAif you return upon getting it. These offers typically involve a contractual commitment to work there for at least two years. In addition to the typical contractual agreement, there are other factors to consider when factoring this into your compensation.
Different firms may offer different deals depending on the situation. These are just some of the general factors that go into those deals.
MBBcarries a prestige that other consulting firms lack. These three firms consistently feed their analysts into top business schools, management positions at F500 companies, and more.
That said,MBBaren't the only consulting firms with a degree of prestige. Plenty of tier two firms like Accenture, Booz Allen, and Deloitte will garner respect on your resume and make you a competitive candidate for business schools.
What Do Consultants Do?
There is no universal day-to-day for consultants because their days vary so much. That's a part of what makes consulting so appealing to many, the variability in day-to-day functions. As has been discussed before, a typical consultant's week consists of travel on Monday and Friday and work in between. Here's what a typical week looks like for a consultant who travels often, courtesy of @cvsdjs".
Mondays are obviously rough due to early morning travel. Tuesdays and Wednesdays are longer hours. Thursday flights home are around 5 pm, but you usually have work to do on the plane. Fridays are easy. Consulting firms have a lot of networking events and training, and you usually only have a few client-related calls. I rarely work on a weekend, but if I do, it's because I need to get something done for a Monday morning meeting. The travel takes a toll on some, while others really love it. I don't mind it, as I find it's actually sometimes more difficult to work on a local project inNYC(where I live) because it's difficult to balance personal life and work throughout the week, whereas when I travel, I get stuff done Mon-Thurs without distractions and then I get to enjoy Fri-Sun. Projects are typically pretty interesting, though you do have a few brutally lame projects along the way.
Consultants help businesses solve their problems. Different types of consultants specialize in different types of businesses/problems, and then there's the management consultant who helps with strategy.
Is Consulting for You?
Now you know about the culture, hours, compensation, exit opps, etc. of consulting. You know what consultants do, and you know a little bit about their various roles, particularly on the junior level. But how do you know you'd enjoy the job? Here are some indications that consulting might be a good career fit, at least out of undergrad, for you.
1. You enjoy collaboration.
2. You want the prestige and career versatility that investment banking grants without the cons.
Maybe everything about investment banking appeals to you. It comes with undeniably great career versatility, but it comes at a cost. Notably, brutal hours and mundane work are two of the biggest turnoffs of investment banking. Consulting provides an alternative and avoids both of those cons. It has rough hours, but it's not nearly as bad as investment banking and it's work is much less monotonous.
这个很明显但想想过去time you first walked in a new city. Even walking in a new city can be an awe-inspiring and surreal experience. If you feel this way, then what better job than consulting? Of course, you tend to get desensitized to the wonders of a modern city, but the joys of traveling and visiting new places are worth considering.
Don't be mistaken, for most, the traveling aspect of consulting loses its appeal very quickly and becomes arguably the worst aspect of the job. But certain personalities feel deeply satisfied when visiting new cities and towns. If you're one of those individuals, consulting could be the perfect fit for you.
4. You want a career that blends analysis and communication.
Really, this applies to a lot of careers - investment banking is one of them - but it's just another way to identify if consulting is a proper fit for you. Consulting is a field hinged on both of these abilities.
5. You're unsure/don't want to pigeonhole yourself.
Few people actually know what they want to do leaving college, and even fewer actually pursue what they focused on as a career. One of the many things that make consulting so great is that it offers a wide arrangement of career choices upon leaving. It's truly the perfect job for those who aren't entirely sure what they want to pursue. Few jobs offer as much versatility as consulting do once you've worked in the industry.
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Consulting is one of the most exclusive industries in the world, particularly management consulting. It's one of the best career choices for building a lucrative career because of the versatility it offers. But the simplest of mistakes during the interview will get you dinged; that's how competitive these positions are. Less than 1% of applicants get a top consulting job, which is why preparation is absolutely critical. TheWSOConsulting Case Interview Guide is the only crowdsourced guide available, perfected by countless professionals to give you the edge you need.
You obviously haven't thought this through.
Can someone inIBDdo it? Certainly, the same way someone in MC could do banking work: after some experience and perhaps even some training. But they don't;IBDfolk have to focus on their particular industry, and the compensation is appropriate to the work they do and the types of clients they service. MC people meet a larger variety of clients, a large part of which is not as baller as a company looking to do anIPO.
Look at it this way:IBDis for companies that have money to spend in order to get more money through anIPO，合并，收购等，或者希望防止损失更多的钱，以至于他们将花更多的钱让投资银行家进来并进行合并/收购/资本筹集。
MC is for companies that want to handle an operational deficiency. Perhaps they'd like a project to move faster, or don't have enough staff to handle a structural shift (layoffs, moving HQ, etc.). It takes very intelligent people to come in and figure the company out on-the-fly, and subsequently find the best way to address the client's problem. There isn't always a ton of money to be spared for these things, but the opportunities are myriad: if you perform well enough on a MC engagement forBoeingor BMW, they might give you a management-level job with solid pay and bonus, great hours, and a great lifestyle, all because you made yourself an important piece in running an aspect of the firm.
TheHFandPElifestyle may provide more wealth, but it may be said that MC provides more opportunities to grow and explore the business world. This, on top of the potential to make a run to Partner-level, which doesn't exist as much in banking anymore.
Long story short: despite all the shit-flinging between the fields, MC andIBDare apples and oranges, and you have to explore them both to see the advantages and drawbacks of each.
Thanks for your response, always nice to learn more about the respective industries. I still think that 99% of target undergrads would prefer being a wealthy financier than the ceo of BMW earning a fraction of what buyside guys make which is why the pecking order at HYPWS isHF/PE>MC>IB as MC is slightly better forMBAadmissions
Somebody give this guy a gold star.
它是sought after because it is a great springboard. Consulting programs offer great training, a great brand and then the option to jump to industry. Also the life style is arguably better thanIB, the pay is great for straight out of undergrad and the pay is equal to medicine, BigLaw and much of high finance. Medicine has widely variable pay, pediatricians make on average 150, internal med 175, gen surg 275, this is after incurring 200k in med school debt and 3-5 years of residency. BigLaw starts at 165, but most people have a very poor shot at partner, a friend at a major firm said it is about 1 in 12 for a first year associate to make it to partner and the partners in BigLaw make good, but not amazing comp usually 1-2MM at truly top firmshttp://abovethelaw.com/2012/05/the-2012-am-law-100-revenue-and-profits-…这可以构成什么MBBpartner makes. Also the exit opps are way better into industry.
How about because you don't work 90 hour weeks in a cubicle and aren't in constant fear of getting laid off 5 days before bonuses? Is that a good enough reason for you?
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Flawless victory. Clearly the strongest argument in favor ofIB.
Did you even read what he said? The Apples and Oranges part?
(也:宝马首席执行官?可笑的例子…但是,the fuck do I sign???
You can wipe my ass with your financier job offer. Any financier job offer.)
Exit opportunities are much, much broader
WLB superior (= you have time to sleep)
Tasks less repetitive thanIB
Great compensation + unique perks +MBAtuition
Overall arguably better work atmosphere
...the list goes on.
IMHO: As someone who had the chance to join anIBD(GS/MS/JPM) in London after undergrad, I can honestly say $$$ was the one and only factor that ever madeIBworth considering to me, but guess what - boni are simply not what they used to be when I first entered college (2007). And that whole "masters of the universe" thing won't come back anytime soon either...
Did you really just usebonias the plural of bonus? Sheesh
bro, way more prestigious!
如果您根据入门级做出职业选择ibbonus then ur an idiot.
one decent year athf/peonce you are sufficiently senior and u have more than lifetime earnings of consultant just fyi.
Don't you think comparing the salary of a senior position at aPEfund and the average consulting salary is kind of stupid if you are looking for a reason, why new undergrads want to enter a certain industry?
Here are the actual salary averages for equity/non-equity law partners, they aren't impressive.http://abovethelaw.com/2012/09/new-data-on-law-firm-partner-compensatio…
Please source this. Also, why did you choose these three industries? Do you believe that these are the only industries less important than consulting?
Depends which firm you're with.
This is your opinion.
What's with the quotation marks? Are you implying that consultants don't add value? Please support this implicit assertion, or clarify your intent.
Please cite this.
How manyIBD"kids" do you think are successful in pursuing "theHF/PEroute?" How many of those do you think make principal?
Once I'm making a certain amount of $, the marginal wealth is less important to me than my fucking sanity.
But I make pretty much the same as my friends who've spent the last 3 years accumulatinglaw schooldebt, except I didn't have to pay for B-School.
I do zero work ~50% of weekends, and only a couple hours on ~40%.
I have more flexibility to travel where I want to, live where I want to (i.e. not NYC)
I am joining aPE类似规模的公司我的朋友被他的ass for 2 years atGS/MS/JPMand maybe had 10 days a year where he didn't go into the office.
Do I need to keep going?
I'm not taking either side of this argument as I'm in neither field and don't really have the insights to comment. I would like to ask what side ofPEyou're going to -- I'm under the impression that MC --> operations whereasIB--> Investment (usually considered more prestigious side of PE).
To over generalize, that's not totally off base. It also varies by firm.Bain Capital爱顾问(据我所知,没有many Bain consultants as you'd expect - a lot of麦肯锡)。TPG并非如此。
I always find it funny when people rail on consultants for not adding any value. I don't work in MC but people watch House of Lies and assume that's the way the industry works (great show btw). Do you really think CEO's would continue to throw millions of dollars at consulting firms if they didn't see any return in their investment?
Why do people always need to compare the bonuses to when they were at their absolute best? 55-65k is fucking outstanding compared to any other job on the planet for a22year old. (Which is more then the median family income in the U.S.) Things weren't always this good for bankers.
Another important reason people choose MC that I haven't yet seen mentioned on this thread is that many undergrads who join MC firms are simply not interested in finance. I worked atMBBand now work in megafundPE, so have experienced the differences firsthand. Several of my analyst peers atMBBcame from liberal arts backgrounds, and chose MC because they are interested in "solving problems" and experiencing many different industries/functions in a short period of time. They had no interest in the technical, jargony, niche nature of investment banking. And from a comp perspective, MCs pay MUCH more than any job other than finance out of undergrad, so it wasn't like they were struggling financially either.
Now that I've been in finance for a while, I can understand this viewpoint. I really likePE, but my least favorite part of the job is the technical financial stuff. It isn't strategic at all - theBBswe work with are purely service providers selected solely on "price" (with "price" here being defined as a combination of rate, fees, quantum, and other terms important to us in structuring our transactions). In other words, they are commodities. On the other hand, we hireMBBfor every deal, and their input is highly strategic. Granted, we often skewer their conclusions for being too "soft" (with "soft" here being defined as not anchored in sufficient hard data and/or primary research), but the truth is thatMBB's input carries substantial weight in our investment committee, where the real decisions get made. And that is just for aPEshop - based on my experience inMBB,MBB's conclusionscarry在美国公司的整体人才水平低于Megafund的美国公司的体重更大PE.
Now, I can see the logic that working inIBDoffers better chances of moving to the buyside than consulting, but it is important to note that this is not something most undergrads think about when making the choice. Heck, I didn't even know what aPEfirm was when I joinedMBB(perhaps shame on me?).
Anyway, the point of all of this is to say that a major reason people choose consulting over finance is that they are simply not interested in finance, primarily due to the "un-strategic" nature of the business (and of course the terrible lifestyle).
Why are 10's of billions of dollars consistently thrown at consulting firms every year? CEO's must all just be suckers right?
--Overall - to many,IBDwork is boring and repetitive. Consultants travel the world eating at the finest restaurants with perks and FFmiles creating value that can't realistically be quantified. We wrap our minds around new ideas and strategies every day. We whisper in the ears of the most powerful people in the world and time and time again they ask for more. We meet people from every background imaginable. And for a 22 year old, I have EVERY Thursday, Friday, Saturday, and Sunday night in my home city to do what ever the fuck I want. I also play in a band and have the time to put on a few shows every season. I put in ~70 hours a week and I love it. Every day spent with my project team I learn something new and better myself. I could not be happier; haven't had one day that felt like a repeat of the one before.
I completely respect individuals working for financial institutions and understand our country's reliance on their success but for me, it was an extremely easy choice to get into consulting. I believe there is absolutely no better profession for your 20's.
Perhaps I'm just weird, but I'm looking at doing MC or CF because I'm legitimately more interested in corporate strategy than I am in just pure finance. Finance is interesting for sure and one of my passions, but I also want to learn more about how a business grows from a marketing, managerial, etc. position, and I feel consulting or actually working in the industry would give me that. Also, while I'm willing to work hard, I wanted something that provides a little bit better work-life balance and would allow me to work in a team setting versus just being alone in a cubicle (I'm working in a cubicle job right now and it's really, really boring to stare at a screen by yourself all day).
Also, from my friends who work inIB, it seems like most of them really dislike their jobs but like the salary/lifestyle (the lifestyle outside of work that is) that it can afford them, while my friends who are into consulting enjoy it a lot more, even though they do have to put in more hours than normal people. So basically, my interests coupled with the fact that there's a slightly better work-life balance is why I would choose consulting overIB亲身。
I go to a non-target and I'm still interested inIBand MC, but I'm leaning towards MC and they typically recruit more from my school. Only one of theMBBrecruit from here (and they take 1, maybe 2 a year, if that),Deloitteis probably the biggest name that recruits quite a few for MC.IB, a couple smaller boutiques recruit and some regional places.
MC lifestyle seems like something I would really enjoy.
Deal side, US-based.
Though I am not a management consultant, I can definitively say that just through researching the skills, thought processes, and methods ofmanagement consultingmy business knowledge, analytical ability, and understanding of why and how business "works" has increased tremendously. I expect I would be much better had I worked in mc.
I know I enjoy solving business problems (did some part time work as well as internships), but still what might be a good answer for: Why do you want to join consulting? Why M/B/B??
Look at the interviewer sternly and say "Have you ever read Atlas Shrugged? If you hire me, I can guarantee nothing like that will ever happen in this country."
Cash, Rules, Everything, Around, Me
Get the money
Dollar, dollar bill y'all
I joinedMBBover banking because
- I wanted to "unlock my potential"
因为做同样的事情every day, working with the same people, doing the same types of projects, etc. for the next two years would bore me to death.
I don't just like change, I need change to keep me stimulated.
"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-
您为什么要咨询的故事(Originally Posted: 01/17/2013)
I like consulting because of the following reasons:
- Opportunity to work on a variety of projects with multiple clients across diverse industries
- Work is challenging which helps professional development
- Able to network with colleagues who are smart and driven
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