What Is Management Consulting? Key Areas for Analysis

Management consulting aims to help businesses improve performance by identifying problems and developing effective solutions. There are management consulting firms dedicated to providing this service, where you can work as a management consultant, but it's also possible to work independently and build your client roster.

Learn more about management consulting, how to become a management consultant, and important skills you'll need to succeed in this role. Afterward, build your knowledge in this area with Emory University's Management Consulting Specialization.

What is management consulting? 

Management consulting involves partnering with businesses to identify solutions to problems, improve processes, maximize performance, and potentially even increase revenue. Consultants typically find problems in one or more areas, such as operational, financial, organizational, strategic, technological, or customer-related, such as poor service or declining satisfaction.

Let's review some of the common issues that can arise across these areas.

Operational issues:

• Inefficient processes

• High operational costs

• Quality control problems

• Poor productivity

• Supply chain bottlenecks

• Waste and redundancy

Financial challenges:

• Declining profits

• Poor cash flow

• High overhead costs

• Ineffective pricing strategies

• Budget mismanagement

• Revenue leakage

Organizational problems:

• Poor communication

• Unclear roles

• High turnover

• Low employee engagement

• Weak leadership

• Resistance to change

Strategic issues:

• Unclear business direction

• Market share decline

• Competition threats

• Outdated business models

• Poor market positioning

• Growth stagnation

Technology gaps:

• Outdated systems

• Poor digital integration

• Cybersecurity risks

• Data management issues

• Lack of automation

• Technology adoption delays

Customer-related:

• Declining satisfaction

• High customer churn

• Poor service quality

• Weak market understanding

• Ineffective marketing

• Poor customer experience

Get a glimpse at management consulting in this video.

What do management consultants do? 

Management consultants, often called management analysts, solve business problems pertaining to the categories covered above. As such, they tend to have expertise in a particular area of business, such as operational efficiency or customer success.

As a management consultant, you can work with domestic or international clients either for a management consultancy firm or as an independent consultant.

3 areas management consultants typically focus on 

No matter what you specialize in or the type of business you work in, management consultants typically focus on three main areas. Your work may fall under one or more of these: 

1. Expertise and specialties: Management consultants offer their expertise to businesses in several domains. These may be general or very specialized and include:

• Business strategy

• Business restructuring

• Strategic management

• Risk management

• Mergers and acquisitions

• Digital transformation

• Talent management

• Marketing

• Business processes 

2. Analysis: Management consultants perform in-depth analysis and research relating to the areas they are working on within an organization. You'll need to remain objective and unbiased to provide a clear perspective of the problems that need solving. 

3. Project management: Management consultants are hands-on when it comes to implementing the solutions they identify. You'll work with teams to deliver and monitor solutions, working directly with senior management. 

Key skills 

To be a successful management consultant, you should possess the following skills:

• Analytical and research skills

• Working under pressure

• Teamwork and collaboration

• Commercial awareness

• Problem-solving skills

• Interpersonal and communication skills

• Presentation skills

• Translating complex information 

• Relationship building

4 reasons to pursue a career in management consulting 

Working in management consulting typically entails high salaries, high job growth, a varied workload, and numerous opportunities for career advancement. Let's review some of the reasons why this career can be particularly appealing.  

1. High earning potential 

According to Glassdoor, the average annual salary for a management consultant in the US is $147,080 [2]. Often, management consultants working for a consulting company receive an annual salary as well as bonuses. 

2. Strong job outlook 

The job outlook for a management consultant is excellent, with employment expected to grow by 11 percent between 2023 and 2033 [2]. This rate is above the average for any profession. Positions in small consultancies and those specializing in technology will likely see the most growth. 

3. Frequent opportunities for ongoing development 

Management consultants have frequent opportunities for development and career growth. Using skills they've gained in consulting, many management consultants move into other business management positions or into more senior roles. Career progression is possible up to the partner level for those who are exceptionally skilled.

4. Fast-paced and varied work 

Working in management consultancy is exciting, varied, and fast-paced. Those who thrive on tight deadlines and in high-pressure environments do well as management consultants. While the hours can be long, several perks typically come with this type of work, including travel, bonuses, company cars, and the opportunity to work with senior-level clients of large multinationals. 

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