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Introduction to Consulting? Presentation to MBAs and MiFFTs J-P Martins, Consulting Careers Team 8 September 2010 Page 1 Page 1
Transcript
Page 1: 2010 Intro To Consulting Mba

Introduction to Consulting?

Presentation to MBAs and MiFFTs

J-P Martins, Consulting Careers Team

8 September 2010 Page 1 Page 1

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Today’s agenda

Introductions

What is management consulting?

Who are the consultants?

How do I get hired?

Recap & next steps

2

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Who am I?

J-P Martins

7 years’ experience at BCG &

Bain

Strategy & Corporate

Development roles in Mining

& Financial Services

Client of BCG,

McKinsey, Deloitte, KPMG &

EMB

1:1 sessions Drop-ins

Consulting Coach/

advisor at LBS

www.problemssolved.org @jpstrategy

Blog

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Who are you?

Novice

•  I have no experience of consultants

Onlooker

• They’ve been involved with my company

Participant

•  I’ve worked on a project with them

Player

•  I’ve worked as a consultant

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No experience High experience

MBA and MiF students

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How is this going to work?

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You signed up for this!

You read the presentation •  Is consulting for me? •  To which firms am I best

suited? •  How do I get hired?

You emailed me your questions

We pause for further Q&A

I try to answer them!

Wrap-up •  Next steps

Tweet/text further questions, comments, answers

#lbswwh .

Text: 079 6690 7426

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Today’s agenda

Introductions

What is management consulting?

Who are the consultants?

How do I get hired?

Recap & next steps

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What is consulting again?

What is the difference between Strategy Consulting and Management Consulting?

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Question Answer

Addressed in ‘Who are the consultants’

Consulting is merely a state of employment   Differs from ‘employed’ or ‘contracting’

Key features are:

  Work for multiple clients   Advisory in nature

Management consulting describes the field worked in – any issues that pertain to management

  Very broad

Strategy consulting is not a good term, but best describes a segment of management consulting activity...

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Sorry, what do they actually do?

The case team leader (typically 2-3 years post MBA) will:   Ensure the problem

is correctly defined and scoped

  Understand what the client needs to achieve

  Sound out approaches and potential solutions (hypothesis based)

The team (consultants & clients) will work together to solve the problem:   Work through the issues logically   Discuss approaches and solutions as a

team   Conduct desk research, interview and

observe clients, ask awkward questions, collect and analyse data, consult experts

  Substantiate conclusions with data, data, data

  Obtain buy-in from team members and client’s senior management

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How does a project team work together in consulting, eg specific roles of consultants/associates/partners, is there a hierarchy?

Who generates ideas and who implements them?

Is the work more qualitative or quantitative?

Questions Answers

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Can you give some examples of consulting projects?

I understand it is very innovative, but it'd be great to have some more concrete examples?

Do top consultancies also drive the implementation of their ideas or do they always end the project with only recommendations?

  What is the typical involvement of a consulting firm with the client after recommendations have been given?

  Does it vary among different firms and does it depend on how senior you are?

Four best summarise my consulting career:

Merger between 2 global airlines

Operational improvement at flight catering centre

Energy (coal) supply & demand   Focus on China

Operational improvement programme for large industrial miller and baker

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Questions Answers

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Example project 1: Merger between two global airlines

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Problem: Asked by CEO of XYZ Air to assist build a business case for merger, to present to Board

Project: Two teams, each led by a manager with 2 or 3 consultants/associates, three month timeframe Identified likely areas of synergy and estimated quantity of each ‘Killer’ analysis was reconstructing the other airline’s operating and maintenance schedule by working backwards from published timetables Also lots of detailed working through organisation charts and expense details with XYZ Air’s senior managers Developed detailed brand and service strategies to minimise top-line erosion Workshopped findings with select senior managers from both airlines

Findings: Validated key assumptions and overall value - £1+bn synergies

Work was presented to Board – they continued to move forward with the project Merger was eventually announced to markets, but rejected by regulators

Results:

Backup

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Example project 2: Operational improvement at flight catering centre

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Problem: Asked by GM Catering of XYZ Air to advise on cost reduction and operational improvement at regional flight catering centre

Project: One team, led by a manager with 2 consultants/associates, three month timeframe (one of 8 or 9 such teams running simultaneously in the same client) Hand-picked 15 client team members to perform the project analysis and act as change champions First day was met by a walkout of all staff leading to no food on planes for a 6 hour period Identified likely areas of opportunity and quantified each   Included sifting through all discarded meals from one day’s flights to identify what

passengers really want to eat, rather than what they say they want   Benchmarked potential savings against wholesale outsourcing

Findings: Over £1m annual saving possible from reduced flight delays, re-scoped food menus and efficiencies in ingredient procurement

All recommendations accepted and implemented – XYZ went on to further reduce scope of economy class hot meals as it realised these really were not valued by public

Results:

Backup

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Example project 3: Energy coal supply and demand study

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Problem: Asked by Group CEO Energy of Global Mining Co to produce bottom up forecast of energy coal prices for next 15 years based on comprehensive supply and demand study

Project: Sino-Australian team: 2 managers with 4 consultants/associates, with 1 senior manager and two engineers from the client, 3-month timeframe (based in China for 2 months) Completed survey of 300 Chinese mines using local market researchers, and exhaustive electricity demand projections based on GDP growth and demand elasticities Modelled all planned power stations over next 15 years and likely impact on demand Thoroughly researched Chinese road, rail and sea transport infrastructure Built global supply and demand model using company information

Findings: Ground-breaking (then!) view on explosion of Chinese natural resource demand Confirmed availability of low cost coal production to meet this demand, despite likely short term transport bottlenecks, and unviability of some of Global’s assets in the long term Reviewed Global Mining’s cost position and made advised strategy for each mine

Strategy not adopted – Global Mining instead reacted to short term price rises, raising long-term price forecasts, and overinvested in acquisitions which destroyed value

Results:

Backup

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Example project 4: Improvement programme for industrial miller/baker

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Problem: Asked by COO of Aussie Milling & Baking Co to develop a company-wide performance improvement programme for manufacturing operations

Findings: 25% reduction in overall costs possible, principally in ingredients and labour Proven methodology and templates that could be rolled out by client workforce at all sites

Programme adopted – Aussie Milling & Baking Co rolled out programme across portfolio of manufacturing assets over next 2 years

Results:

Project: Australian team: 2 managers with 3 consultants/associates, with 1 manager and 6 plant staff from the client, 3-month timeframe (based in industrial bakery for 2 months) Organised the work around quantifying and then targeting waste streams around the plant – waste defined by all resources   Materials mass balance   Labour   Energy

  Space   Plant

Backup

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How do consulting firms add value?

As consultants are working on various industries/institutions, how do they arm themselves efficiently to become as adept as senior management in specific industry and even provide practicable solutions?

‘As adept as senior management’

–  Not that high a hurdle!

Different skills – consultants are specialist problem solvers, not generalist managers

Personal experience – not that hard to add value to a senior management team within 4 weeks of starting in a new industry

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Question Answers

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How does staffing work? (1 of 2)

How are team members selected?

How much ability do you have at the top tier firms to select industry/clients/ projects?

How do major strategy consultancies create project teams and is it possible to influence that?

All firms (especially the large ones) have dedicated, professional staffing functions

A range of factors influences staffing

  Availability

  Experience

  Reputation

  Performance/reviews

  Expertise

Don’t underestimate importance of networking, reputation with partners/managers

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Questions Answers

  Market systems

  Development needs

  Preference

  Team balance

  …

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How does staffing work? (2 of 2)

As an entry level consultant coming from a pharma R&D background, will it be possible for me to specialise in a particular area?

Will it be better for me to target a boutique consulting firm or a full service consulting firm?

Some firms hire into specific practice areas, others don’t

Some firms specialise or focus more in some practices than others

  Ditto for offices within a firm

Some boutiques are specialised in industry sectors or functions, others are more generalist

Regardless of their ‘junior’ model, most firms require a degree of specialisation by practice area as you progress to more senior levels

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Questions Answers

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Tell us about exit from consulting, and opportunities after consulting (1 of 3)

In regards to the career progress: could you talk about possible career options outside the consulting industry at different points of the consulting career stages?

What are typical exit opportunities and exit timing for MBA-holder consultants? Besides consulting, I am interested in corporate strategy roles in large industry organizations (where I could work on processes, organization, and strategy, not solely M&A) and strategy/operations roles in PE (e.g. KKR Capstone). How would consulting experience would fit into such career? Is it at all possible to get such job without prior experience in consulting?

What is your experience on moving from one to another consulting firm eg having spent a couple of years with the first one?

What are the potential/most feasible/most common exit options for consultants at different levels?

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Questions

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Tell us about exit from consulting, and opportunities after consulting (2 of 3)

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Associate Consultant1

• Business Analyst2

• Associate3

• Consultant4

Consultant1,3

• Associate2,4

Case Team Leader1

• Engagement Manager2

• Project Leader3 • Senior

Associate4

Manager1 • Associate

Principal2 • Principal3,4

Partner1,3 • Partner/

Director2 • Vice

President4

1 Bain, 2 McKinsey, 3 BCG, 4 Booz Note: Timings very approximate

Typical MBA entry level

2 years post MBA

4-5 years 6-9 years

Half life < 2 years

50% survive?

25% survive? 10% survive?

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Tell us about exit from consulting, and opportunities after consulting (3 of 3)

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Associate Consultant1

• Business Analyst2

• Associate3

• Consultant4

Consultant1,3

• Associate2,4

Case Team Leader1

• Engagement Manager2

• Project Leader3 • Senior

Associate4

Manager1 • Associate

Principal2 • Principal3,4

Partner1,3 • Partner/

Director2 • Vice

President4

Typical MBA entry level

2 years post MBA

4-5 years 6-9 years

Exit to: analytical, planning, strategic, management roles

in industry

Exit to: Industry leader, CEO/direct report in

large companies, retire, establish own winery

etc…

Exit to: senior management roles in large companies, CEO/direct report roles in mid-size

Exit to: mid-management/analytical roles in large

companies, senior manager roles in mid-size

1 Bain, 2 McKinsey, 3 BCG, 4 Booz Note: Timings very approximate

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Tell us about work/life balance…

Is there some tendency regarding travelling needs and work hours among different firms/offices (geographic location)?

I am particularly interested in the work-life balance aspect of being a consultant

Consulting is tough – hours can be crazy and unpredictable, as can travel. 60-70 hour weeks typical, 90+ possible

Travel varies a lot between firms and offices

  Staffing model

  Area covered

Type of work done also drives travel   Work with clients means 4 or 5 days a week at client sites

  Market sizing/competitor analysis may mean mainly desk work

London – lots of clients in the city – but also global clients

Hours often driven by your and your managers’ style

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Question Answers

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Today’s agenda

Introductions

What is management consulting?

Who are the consultants?

How do I get hired?

Recap & next steps

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How do the firms differ?

Would it be possible that you spend more time, explaining different types of consulting and the companies in each consulting sector? I see one slide in “Who are the consultants” presenting different consulting types, but more detailed explanation would be appreciated.

I have been speaking with many consultants, working in companies such as McKinsey, Bain, BCG, and Monitor. Unfortunately, even they are not really sure about the core values that differentiate one with another. I have been able to observe slight differences between their working styles. However, I do not think that my findings will be enough in an interview. Do you have any tips for us?

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Questions

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The most useful way to segment firms is by fees and size

High

Low

10 100,000

Revenue per

Consultant

Size of Firm (# consultants)

Global Elite (‘Top Tier’)

Global ‘Full Service’ Specialists

McKinsey BCG

Bain

ATK

Mars & Co

Diamond

PRTM

ZS Associates Atkins

Diamond

IBM

Accenture

Deloitte

CapGemini

Source: ADD Resources

Booz

Strategy Boutiques Strategy Boutiques Global Elite (‘Top Tier’)

Global ‘Full Service’ Specialists

Strategy Consulting

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The ‘Top Tier’ firms have similar business models and products

‘Top Tier’ Firms

McKinsey

BCG

Bain

+/- Booz

+/- AT Kearney

Why They Look The Same

Similar people

  Recruit highly selectively from top business schools

Partnerships

Rigid up or out, rapid progression to partner for a few

Blue chip clients

  Eg FTSE 100

  Leaders in their field

Issue/hypothesis based workplanning

Data driven analytical approach

Slide driven communication

Moved from short term projects to long term relationships, many years ago now

Work on all aspects of management

  Whatever matters most to the Chief executive and board

Equally comfortable in implementation as ‘strategy’

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Observed cultural differences between McKinsey, BCG and Bain

Influence

Value

Ideas

Bain

BCG

McKinsey More specialised,

including specialist hiring

Generalist, Private equity focus

Generalist

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Tell us about boutique firms… (1 of 3)

Can you list boutique firms so I can research them more?

Tell us more about areas of specialisation of different firms

  Private Equity: Can you give us a general understanding about the consulting activities in this area?

  VC/Tech incubators: Does any company provide management consulting to Venture Capitals/ technology incubators as well?

  Would like to get as much information as possible in regards to consultancies that have sport divisions or boutique firms that specialise in sport and the business of sports

1,000s of firms!

Try my blog

  “The Definitive Guide to UK Consulting Firms”

– by Top-Consultant.com

  “How do the Top Firms Differ?”

Also Vault guides, BLT

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Questions Answers

PE: Bain, Parthenon, Big 4…+ many others Lots of DD, a bit of improvement and v. little

strategy

Sport: Deloitte + many others Mention BCG

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Tell us about boutique firms… (2 of 3)

Global, Full Service Accenture, Deloitte, IBM, PA Consulting Part of much larger firms, leverage accounting, auditing, corporate finance, systems relationships

Functional & Sector Specialists

Finance: Oliver Wyman, McKinsey Corporate Finance IT: McKinsey BTO, Axon, Sales and Marketing: ZS Assocs, Wolff Olins HR: Towers Watson, Hay

Specialise in a sector (eg FS, FMCG, transport, construction…) or function (eg finance, HR…)

‘Small’ Boutiques e.g., Greenwich Associates, Mars & Co, Very many firms, some quite small

Internal Consultants

e.g., Diageo, Reuters, Shell, Deutsche Post, Vodafone, Oracle

Often do the same work as consultants Many different titles

‘Top Tier’ & Big Boutiques

McKinsey, BCG, Bain, Booz & Co, Roland Berger, A T Kearney, Monitor, Marakon, LEK, OC&C, Parthenon Group

Generalists:   Across sectors   Strategy, M&A, PE, Operations, Processes,

Organisation

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Tell us about boutique firms… (3 of 3)

How do they hire?

What are the recruiting policies and structures of the boutique strategy consulting firms?

Do they have on campus recruitment programmes?

1,000s of firms!

Larger ones, with models based on top tier, hire like the top tier

  But fewer hires, not every year

  Eg 2020 Delivery

Specialists may only be looking for relevant experience, or not value MBAs so much

May not advertise/come here

May or may not be receptive to applications

All will give details on their websites

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Questions Answers

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Today’s agenda

Introductions

What is management consulting?

Who are the consultants?

How do I get hired?

Recap & next steps

29

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Explain the numbers…

Can you explain why only 10% of LBS students got top-tier consulting jobs? Was it because the applicants were too similar or the market was down, etc?

I was analysing the London Business School employment report and figured that Consulting firms don't really hire as many interns for the summer as they hire for full time. This has also been told by a few recent MBA graduates. In fact the report indicates that summer hiring is barely about 25-30% of the full-time hiring. Does this mean that Consulting firms don't rely much on summer internships?

Not 10% – I don’t recognise that number

Permanent hiring always exceeds summer internships

Don’t confuse timing issues (different cohorts) when reading the employment stats

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Questions Answers

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You can’t all get jobs in the ‘top tier’ Illustrative Top Tier Recruiter 2008-9

Applications 1st Round Interviews 2nd Round Interviews Hires

160

190 52

40

17

16

4

6

350 92 (26%) 33 (9%) 10 (3%)

Blue = Spring (‘summer internship’) recruiting Red = Autumn (‘full time’) recruiting

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Autumn 2009 saw 50 MBAs get consulting offers (47 accepted)

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Summer 2010 shows the market continuing to improve, with 64 MBA consulting internships

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What are they looking for again?

I understand there are certain requirements to get into a good consulting firm but have also heard things like requirement of a high GMAT score which is not defined at any point but a significantly higher than average GMAT score like say 730+. In addition some firms also look at the Undergrad GPA scores. Is this correct? If yes, to what extent?

How important is networking for Consulting jobs? I heard from some people that it is more important for Banking jobs rather than Consulting jobs

3 models:

1.  Smart, charming, driven

2.  Problem solving, personal impact, leadership, drive/aspiration

3.  My self-assessment framework

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Questions Answers

Easy to remember

Robust, lots of detail

Statistical predictive validity, simple, easy to apply, and a little bit scary

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‘How to get a consulting job’ on a single slide? – Easy!

Smart

Charming

Driven

Brilliant

Top of the class

Double degree, first class honours

Obama

The young Cary Grant

??

Lance Armstrong

Michael Schumacher

Bill Gates

If you had this magical mix, I guarantee you wouldn’t need me to review your CV or to

practise a single case…

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A more actionable checklist involves four areas of competency

Problem Solving

  Intellectual capacity

  Analytics/quants.

  Creativity

  Business judgement

  Comfort with ambiguity

Personal Impact

  Presence

  Confidence vs. ego

  People skills

  Team player

  Sense of humour

Leadership

  Maturity

  Track record (sporting, clubs)

  Integrity

  Inspirational

  Willing to take personal risks

Drive/ Aspiration

  Driven by results – action oriented

  Enthusiasm

  Desire to excel

  Other interests

Could I put you in front of a client on Day 1? Could I spend 24 hours flying from London to Sydney with you?

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Self-assessment framework

Assess your own CV for your ‘hirability’ for strategy consulting

The tool produces a ‘CV Score’ out of 10

Academic: Rate your academic performance out of 4

Professional: Rate your professional experience out of 4

‘Other’: Rate your ‘other’ information out of 2

Exceptions: Consider what specific exceptions might apply in your case

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It works! (…up to a point…)

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% of applications securing any consulting offer

Score:

Scary! Not what you do while at B-School, but who you were when you came here

Not about how well written your CV is either…

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How will consulting firms view my particular background?

How much do consulting firms place value on previous work experience and background?

How much does your education and work experience influence hiring?

Which firms like technical background (meaning strong quantitative/ analytical skills)?

Which firms like strong GMAT score?

The main candidate pool for consulting recruiters is MBA students. Upon what aspects could non-MBA students improve and address emphasis?

A lot!

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Questions Answers

A lot!

All top tier and strategy firms, plus many niche firms

BCG and McKinsey in particular, but all strategy firms to some degree

General business knowledge and sense

Motivation – is consulting your first choice, or just what you’ll do if you don’t get your I-banking job?

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Lots of personal, specific questions on ‘How will consulting firms view my particular

background?’

I have worked in Pharma R&D for 6 years and am a physician by training. I want to stay in the healthcare after my MBA. Do firms hire for their healthcare practices from London Business School?

I have 8 years experience in Telecoms and Hi-tech (Sales Support and Account Management) – should I leverage my experience while pitching for consulting firms? Will this experience constitute a fifth area of competency in addition to those mentioned in your presentation? Will I be considered for the same typical MBA entry level to consulting firms irrespective to the years of experience I have?

I have a background in marketing and business development in the LPG and natural gas markets in Turkey. How would this previous professional experience help me in my job search for a consulting position? Would this provide a competitive advantage in applying to boutique strategy consulting firms that are focused on the energy sector?

If you want to apply to a particular consulting sector (I have a medical background and I'm interested in healthcare consultancy), what is the best strategy (ie a top-tier generalist firm with a healthcare division or a boutique firm specialising only in healthcare)?

I believe that my time in the military has provided me with experiences that highlight my leadership, problem solving skills, and team work mentality, but how would I go about conveying these to consulting firms that might look at me as an atypical candidate?

I have a military background but I do not want to consult in the defence industry, and would prefer to start off as a generalist. Despite this, should I focus on industries of interest (such as energy, construction or healthcare) in order to be more marketable?

Do Consulting firms give any advantage to candidates from any specific background pre-MBA?

Do they look at candidates who are willing to work on a specific sector based on prior experience and expertise or do they prefer hiring as generalist consultants only?

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Questions

Most of these are too personal for this presentation

  Complete the self-assessment

  Work up your CV and submit it to me through Career Central

  Talk to people – alumni, 2nd years, with your background

  Arrange a 1:1 or come to a drop-in to discuss

What matters is not what you have done but what you can do. However, what you have done is a very good indicator of what you can do!

Answers

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Entry level roles Areas of

weakness/ question marks in

some areas Very small firms

Higher level roles (especially

around sales ability outside

‘top tier’)

Entry level roles Good

quantitative/ problem solving

experience Good performer

across other dimensions

Specialist firms

Specialist roles, generalist firms

Generalist roles, generalist firms

A few words on experience

Irrelevant Valued Balance Sought Relevant

Non-Consulting

Experience

Consulting Experience

Generalist roles, generalist firms

Specialist firms

Specialist roles, generalist firms

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How does hiring work globally?

Can you also discuss the possible locations? I am especially interested in hiring patterns with respect to Singapore, Hong Kong and Mumbai

Is it comparably difficult to find a job in London vs. the other locations?

Can I get an offer in one country, then negotiate to start in another?

In general:

Firms want you to have a connection to the country you apply to. McKinsey has even quantified this – if you were educated there, you must also have worked there for 12 months; if not, then 24 months is the minimum

However, each firm is different

Language requirement also apply to most offices

Where firms cover a wide geography from one office, this applies to the region rather than the country (and multiple languages become more important in hiring decisions)

India can be hard as LBS graduates have higher expectations of salary than the local market

NO! 42 42

Questions Answers

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50-60% of the jobs are in London, with a good spread around the world

MBA2010

MBA2011

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Tell us more about the fit interview…

How much importance is given on the weaknesses/strengths in the fit interview? What should the weaknesses show about myself? Should they be relevant or irrelevant to consulting?

Where can we get information about the specifics of what a firm does for the purposes of knowing what to say in an interview and also for general knowledge purposes?

I believe that my time in the military has provided me with experiences that highlight my leadership, problem solving skills, and team work mentality, but how I would go about conveying these to consulting firms that might look at me as an atypical candidate?

Not today!

Will be covered in Essential Consulting Skills Workshop II on 12 November

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Questions Answers

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Today’s agenda

Introductions

What is management consulting?

Who are the consultants?

How do I get hired?

Recap & next steps

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Recap – ‘What?’

Management consulting is a broad field, concerned with solving clients’ business problems at all levels

Value, rigour, speed and independence are key

Consultants work in teams, and apply a rigorous problem solving process

Consulting has many attractions, but will not suit everyone

Only you can tell if it’s for you – take today as a starting point and research the sector, and firms…

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Recap – ‘Who?’

I hope this has given you some ways to think about which firms to apply to

Don’t apply only to McKinsey, BCG and Bain

If you do apply to the top tier firms, have a backup strategy

Choose firms based on what drives you, your strengths, and research on the firms concerned

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Or text 079 6690 7426

Recap – ‘How?’

It’s very clear what most of the recruiters are looking for:   Problem solving ‘smarts’   Personal impact ‘interpersonal skills’   Leadership (potential…)   Drive

Ask yourself   Do you really stand out on these dimensions?   Does you CV/cover letter really reflect that?

Recruiters have a multi-stage process that focuses on you underlying competencies, especially problem solving, primarily using tests and case interviews   It’s a big time- and emotion-sink   It’s highly selective, <10% of applicants succeed

with each top tier firm

Maximise your chances

Pick firms that resonate with you, your skills and experiences

Pick offices that resonate too

Don’t just apply to the ‘top tier’ – what are your Plan B and Plan C?

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Or text 079 6690 7426

Next steps Join the Consulting Club   & attend their events   Kick-off Monday 13 September, 7pm

Get your CV sorted

Complete the self-assessment guide

Embark on preparing for case interviews:   Essential Consulting Career Skills

Workshop I – 1 October   Crack-a-case programme

MBAs submit your CV to me for feedback (1st week October, via Career Central)

Hone your personal brand, cover letter and fit interview approach:   Essential Consulting Career Skills

Workshop II – 12 November   Peer Leadership programme   Career Services L&D team

January recruiting for MBA internships (happens quicker than you think!)

…Summer internship, Autumn recruiting…

And if you want…

  Follow my blog www.problemssolved.org   Twitter @jpstrategy

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Thank you!

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