Difference between revisions of "Specialization"
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'''From Vault's Career Guide to Consulting''' | '''''From Vault's Career Guide to Consulting''''' <br> | ||
* Boutique firms support their clients with highly-specialized expertise. These firms | * Boutique firms support their clients with highly-specialized expertise. These firms | ||
choose to focus on a smaller number of industries (energy, life sciences, retail) | choose to focus on a smaller number of industries (energy, life sciences, retail) | ||
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(M&A, economics and litigation, turnaround) or methodologies (real options, | (M&A, economics and litigation, turnaround) or methodologies (real options, | ||
EVA). <br> | EVA). <br> | ||
* common misconceptions about boutique firms. <br> | |||
not the case. A boutique is determined not by size, but by focus. L.E.K. | not the case. A boutique is determined not by size, but by focus. L.E.K. | ||
Consulting (which was founded by a handful of former Bain partners) now has | Consulting (which was founded by a handful of former Bain partners) now has | ||
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would turn to Strategic Decisions Group, which has the best reputation in the | would turn to Strategic Decisions Group, which has the best reputation in the | ||
business for these sorts of problems. <br> | business for these sorts of problems. <br> | ||
Because boutiques offer such depth in particular areas, it is increasingly common | * Because boutiques offer such depth in particular areas, it is increasingly common to find a boutique firm (and potentially a very small one with just a few employees)as the consultant of choice for a Fortune 500 company. <br> | ||
to find a boutique firm (and potentially a very small one with just a few employees) | * These highly-regarded specialist firms are extremely appealing employers for prospective consultants who are interested in developing a true expertise, and who are not obsessed with working at a firm more well-known among the general public. <br> | ||
as the consultant of choice for a Fortune 500 company. These highly-regarded | *All this said, we should note that many boutiques are indeed small, ranging from upwards of 200 employees down to a single consultant. Often, boutique consulting firms grow from the expertise and client relationships of one to five founding partners, and unless it sells a consistently large flow of work, the firm has no compelling reason to grow quickly. <br> | ||
specialist firms are extremely appealing employers for prospective consultants | * | ||
who are interested in developing a true expertise, and who are not obsessed with | |||
working at a firm more well-known among the general public. | '''''From http://www.wisegeek.com/what-are-boutique-consulting-firms.htm''''' <br> | ||
All this said, we should note that many boutiques are indeed small, ranging from | Boutique consulting firms offer businesses and large corporations highly specialized advice that addresses specific problems or aspects of a business. The goal is to improve a company's efficiency and profits. The use of the term "boutique" has more to do with the consulting firms' focus than with their actual size, since one firm may consist of only a single advisor, while another may have as many as 200 or more consultants working for it. | ||
upwards of 200 employees down to a single consultant. Often, boutique consulting | |||
firms grow from the expertise and client relationships of one to five founding | More specifically, "boutique" most often refers to the corporate or agency niche or niches inside of which it offers its services. Examples of different niches in which boutique consulting firms might intercede are Human Resources companies, healthcare IT, and outsourcing firms. Government entities might also call on the services of boutique consulting firms. Overall, a boutique consulting firm tends to focus on a smaller number of industries. | ||
partners, and unless it sells a consistently large flow of work, the firm has no | |||
compelling reason to grow quickly. Also, smaller boutiques can deliver services | Large management consulting firms can be global in scope and tend to offer services that are more diversified. As such, a large business consulting firm is typically able to draw from more reservoirs of overlapping knowledge and expertise than more narrowly focused boutique consulting firms, which could be an advantage for the company or agency that contracts its services. Boutique firms, on the other hand, are often able to resolve business issues more quickly than large firms that tend to require more time for a specific project. The solutions that boutique consultants might offer tend to have a more immediate impact, which may save an organization from ruin. | ||
at lower costs than the larger consultancies because a smaller firm requires less | |||
Fees that small-to-medium boutique consulting firms charge tend to be lower than those charged by the larger firms, because they usually have lower operating costs and fewer consultants on staff. Some of the larger firms tend to gravitate towards adding more services for the companies that confer with them. Besides increased cost for the clients, this can delay the resolution of their corporate or agency issues. | |||
more attractive to prospective clients than those of the more expensive firms. | |||
The use of boutique consulting firms, when they are indeed small, may be riskier than using a large firm. In some cases, they have serviced many fewer clients than the larger firms, so there is not as much verifiable evidence that their services will be helpful. The methods boutique consulting firms employ might not be as well-defined or established as those of the larger firms. Small boutique firms may not have adequate resources to thoroughly train newly hired consultants. In general, boutique consulting firms tend to offer companies and agencies fewer frills, perks, and status through their association than their larger counterparts. | |||
'''''From http://managementconsulted.com/boutique-firms/recruiting-decisions-what-is-the-difference-between-global-management-consulting-firms-and-boutique-consulting-firms/''''' <br> | |||
This is an important issue when recruiting for a -Sachs-or-bust mentality. And while the big management consulting firms (like McKinsey and Bain) get the lions share of media attention, there are many successful and well-respected boutique consulting firms (like Katzenbach Partners, LEK, and Marakon) that I would recommend prospective applicants consider. | |||
the | with the similarities: | ||
1) Consulting travel will usually be a component | |||
3) As an analyst/associate/consultant, your focus will be on data gathering, analysis, and presentation. | |||
But the differences are very important: | |||
1) While the fundamentals of your work will be the same, the application of that work can vary. Boutique companies like Kurt Salmon typically focus on narrower questions and in fewer industries. At a Big 3 consulting firm (Bain, BCG, McKinsey) you receive exposure to different industries and functions (eg, strategy, operations, organization). In boutiques your (you start building expertise) and a con (what if you decide the retail sector is not for you?). | |||
But again, the day-to-day will look very similar. The difference is in the longer-term. | |||
). But other boutiques have a more local focus (eg, Slalom Consulting) and thus you | |||
will usually be smaller, often with you and maybe one other person as the only real day-to-day presence at your clients. Each of these comes with its own set of pros and cons. | |||
4) Culture can be vastly different | |||
I use the example of a small liberal arts college (Brown) vs a large, public institution (UCLA). | |||
Brown offers greater personalization and support, everyone knows your | |||
consulting office selection can be found in my interview with Marquis) | |||
5) Future jobs/exit options <br> | |||
In particular I need to put a disclaimer here, because your situation is largely within your control and the actual situations vary widely. But when we discuss the ACCESS that you have to exit opportunities across industries and job functions, larger firms (like Boston Consulting Group) are the clear winner. Much larger alumni networks, more internally shared recruiting emails and advice, greater brand recognition, the list goes on. Boutiques, given their strong reputation in particular niches, is not counting the many who enter graduate school): | |||
a new position, or at a new firm, new country, etc | |||
Further reading: Part 1 of a series on management consulting exit options | |||
a great opportunity to see how the Big 3 management consulting firms/Big 4 accounting/one-stop-shop firms operate from the inside. While recruiting is competitive, the opportunity is golden if you get it | |||