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) | ||
| Line 18: | Line 18: | ||
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. <br> | *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> | ||
* 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> | '''''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 | |||
upwards of 200 employees down to a single consultant. Often, boutique consulting | 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. | ||
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 | 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. | ||
compelling reason to grow quickly. <br> | |||
Also, smaller boutiques can deliver services at lower costs than the larger consultancies because a smaller firm requires less | 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. | ||
more attractive to prospective clients than those of the more expensive firms. | 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. | ||
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> | |||
1) Consulting travel will usually be a component | |||
But the differences are very important: | |||
But again, the day-to-day will look very similar. The difference is in the longer-term. | |||
4) Culture can be vastly different | |||
I use the example of a small liberal arts college (Brown) vs a large, public institution (UCLA). | |||
5) Future jobs/exit options <br> | |||
Further reading: Part 1 of a series on management consulting exit options | |||