What Is a Consultant and How to Succeed as One

A consultant is a professional who provides expert advice and guidance to individuals or organizations on a specific area of expertise. They typically work on a project basis, helping clients solve problems or improve performance.

Consultants are hired for their specialized knowledge and experience, which can range from business strategy to IT implementation. They often work independently, but may also be part of a larger consulting firm.

To succeed as a consultant, you need to have strong communication and problem-solving skills. According to research, the top skills required for consultants are business acumen, analytical skills, and the ability to work with diverse groups.

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A consultant is an expert who helps organizations solve specific problems or improve their performance. Consultants use their knowledge and skills to identify areas for improvement and develop strategies to address them.

Their role is often temporary, lasting from a few months to several years, and they usually report directly to the organization's top management.

Consultants can specialize in various fields, such as IT, finance, marketing, or human resources.

Their primary goal is to provide objective and unbiased advice to help the organization make informed decisions.

Consultants may work independently or as part of a consulting firm, and their fees are often based on their level of expertise and the complexity of the project.

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A career in consulting can be a path to happiness, according to Sheryl Sandberg, former McKinsey consultant and current COO of Facebook. She believes it's a luxury to combine passion and contribution.

Consulting can be an extremely challenging career, but it can also be gratifying because it allows you to contribute to the world and solve some of its most challenging problems.

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Clients hire consultants for a variety of reasons, and it's not just about getting expert advice. In many cases, consultants possess a knowledge advantage that clients can't match in-house.

One of the main reasons clients hire consultants is because they provide an objective view on dilemmas and solutions. This is especially true when dealing with sensitive situations, as external consultants are less susceptible to internal politics.

Hiring consultants can also be cheaper than retaining the expertise in-house, especially for sporadic or specialized tasks. For example, a specialist tax-consultant can save a company 20% on its taxes while only charging 10% in fees.

Consultants are also hired to backfill when firms find themselves short on capacity for projects or positions. This can be a huge relief for businesses that need to get work done quickly.

In some cases, it's easier for consultants to do the "dirty work" – take the decisions that no one internally wants to take. This can be a huge benefit for companies that need to make tough decisions but don't have the expertise or stomach for it.

Here are some reasons why clients hire consultants, summarized:

By hiring consultants, clients can tap into a wealth of expertise and get the help they need to resolve issues and drive their business forward.

A career in consulting can be incredibly rewarding, and here are 7 benefits to consider.

You can combine passion and contribution, leading to happiness, as Sheryl Sandberg, former McKinsey consultant and current COO of Facebook, puts it.

Consulting allows you to contribute to the world and solve some of its most challenging problems, making it a gratifying career.

Typical consulting salaries don't vary much between firms, with base salaries for associate level consultants and MBA consulting salaries being similar.

Susan Wojcicki, former Bain consultant and current CEO of YouTube, emphasizes the luxury of combining passion and contribution, which can lead to a clear path to happiness.

Consulting can be an extremely challenging career, but the sense of contribution and problem-solving can make it worthwhile.

The consultant's career path is usually not at the client's side, but they will often be introduced into the client's organizational program or project structure.

The recruiting timeline for consulting internships can often start early, sometimes as early as August or September. This means you should get your resume in order early if you're seeking an internship in this field for next summer.

The top-tier consulting companies, also known as "The Big Three", are McKinsey & Company, Boston Consulting Group, and Bain & Company. These firms are the most prestigious in the industry.

To increase your chances of getting hired, it's essential to network with consultants who can provide valuable insights into consulting as a career and their firm's culture. Reach out to consultants who attended your alma mater or with whom you have connections.

The early application deadlines for management consulting firms can be as early as August, so be sure to check the firms' websites or your school's career department for specific deadlines.

Some excellent consulting companies to consider, aside from the "Big Three", include Deloitte, ATK, Oliver Wyman, LEK, Fidelity Business Consulting, IBM Watson, EY, Accenture, Innosight, Simon Kucher, PwC, and Forrester Research.

To get started, take advantage of your school's resources, such as the Babson College career services department or the Tufts University "Finance, Consulting, Entrepreneurship & Business" career community resources page. These resources can provide you with valuable guidance and support in your job search.

Here are some additional resources to consider:

A consultant can be employed in various ways, including working for a consulting firm or as a freelance contractor. This is a key distinction from temporary workers, who may change domains and branches more frequently.

There are two main types of consultants: internal and external. An internal consultant is someone who is employed by or contracted by a client organization and operates within the client-organization. An external consultant, on the other hand, is employed externally to the client, either by a consulting firm, another agency, or as an independent freelancer.

Here are the key differences between internal and external consultants:

A consultant's career path is usually not at the client's side, but they may be introduced into the client's organizational program or project structure. This is in line with Alan Weiss's definition of a consultant's goal: to leave the client's conditions better than before the consultant arrived.

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A contractor builds something for a client, whereas a consultant provides knowledge, advice, or service.

There are two main types of consultants: internal and external.

Internal consultants operate within a client organization, sometimes within an internal consultancy unit. External consultants, on the other hand, are employed externally to the client, either by a consulting firm, another agency, or as an independent freelancer.

Here are the key differences between internal and external consultants:

Consultants can work from various locations, depending on the client's needs.

Research and analysis can occur at the consultant's office, home-office, or via remote work.

The governing factor on where a consultant works is the amount of interaction required with other employees of the client.

If a consultant is providing advice to a client, they will probably spend a good deal of time at the client's office, interviewing staff and observing work processes.

Consultants may conduct the majority of their work at the consultant's office and in libraries, especially for tasks that don't require much interaction with the client.

The COVID-19 pandemic has resulted in an increase in remote work and demand for online-work skills.

For smaller consulting firms, consultants typically work at the site of the client for at least some of the time.

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As a consultant, you'll want to consider the qualifications and ethics that are essential to your profession.

To become a consultant, there is no single qualification required, but rather a range of qualifications and licenses that vary depending on the field of expertise.

In some fields, a consultant may need to hold a professional license, such as a Chartered Engineer or a member of the bar.

A thorough discussion of ethics in consultation is given in Lippitt & Lippitt, which mentions several guidelines and definitions, including those from the Association of Consulting Management Engineers and the American Society for Training and Development.

Here are some key accreditation bodies for consultants:

To be a successful consultant, it's essential to follow a code of ethics and conduct. This includes recognizing a fundamental moral standard and being aware of the control you exercise over clients' behavior.

Dirk Hartel's 10 Golden Rules provide a useful framework for consultants, including putting the customer first, being punctual, and providing regular feedback.

A successful consulting career requires a unique blend of skills. To achieve this, one must have technical proficiency and business skills.

Having excellence in competence, credibility, effective networking with colleagues, and ability to negotiate are key components of technical proficiency. This combination sets the foundation for a successful consulting career.

Bronnenmayer et al. investigated the management consulting's success factors from a client perspective and found that Consultant Expertise has a significant performance impact on success.

If you're a consultant, it's essential to have a strong understanding of your expertise and be able to apply it effectively in your work.

A common vision among team members is crucial for success. According to Bronnenmayer et al., Common Vision has the strongest performance impact on success, followed closely by Intensity of Collaboration and Trust.

Here are the key success factors for consultants, as identified by Bronnenmayer et al.:

Consultant services can take many forms, including reports and presentations, as well as customized software or products for specialized fields.

A consultant's activity can last anywhere from an hourly consultation to several months or even years, depending on the complexity of the project.

The consultant may develop and implement customized software or other products for the client, or provide general and domain-focused advice.

In some cases, a consultant may sign a specific contract and be hired as an interim manager or executive with advanced authority or shared responsibility or decision making of client-side activities.

Consultants often use a structured approach to help clients, including defining the problem, collecting and analyzing data, recommending a course of action, gaining consensus among the client's leadership team, and helping implement recommendations.

Here's a breakdown of the typical steps a consultant takes to deliver their services:

A consultant's advice may be made public or kept confidential, depending on the client's wishes and the nature of the consulting services.

Consultant rates can be uncertain, especially for those transitioning from an employee role, with some people unsure about how to price their services.

Harrington notes that ethics in the field of business consulting and organizations is still a subject under research.

Setting the right rates is crucial to avoid undercharging and losing potential income, but it's also important to consider the legal implications of your consulting business.

Independent consultants usually need to fulfill taxation requirements given by laws, specifically challenging employment status to avoid 'disguised' employment.

To avoid legal-status and taxation issues, it's essential to understand the factors that distinguish consulting from contracting, such as not being instructed by the client and not receiving similar training as employees.

Alan Weiss provides 20 "factors" for consultants in the US (IRS), which are similar in other countries, to avoid or understand in terms of their business activity.

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Typical salaries for consultants can vary widely depending on their experience and level.

Base salaries for associate-level consultants in the U.S. are typically around $110,000.

MBA graduates can expect to earn significantly more, with consulting salaries reaching up to $190,000.

Performance bonuses on top of base pay are also common, allowing consultants to earn even more.

These figures give you a general idea of what to expect in terms of salary as a consultant.

Independent consultants must comply with taxation requirements to avoid "disguised" employment. This can be challenging, especially in terms of employment status.

Consulting is often seen as being "in business in your own right", not controlled by the client. This distinction can place a consultant outside of laws like IR35.

Alan Weiss has identified 20 factors for consultants in the US (IRS) to avoid or understand in terms of their business activity. These factors are similar in other countries.

Consultants should not be instructed by the client, as this can blur the lines between employment and self-employment. They should also not receive similar training as employees.

Independent consultants have the right to sub-contract, which can help them maintain their business status. They should also not be integrated into the organizational structure of the client company.

These factors can help consultants avoid legal-status and taxation issues. By understanding and adhering to these principles, consultants can maintain their independence and avoid potential pitfalls.

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Consultant education and training typically involves a combination of formal education, certifications, and on-the-job experience.

Many consultants hold a Master's degree in a field related to their area of expertise, such as business administration or engineering.

A good consultant is also expected to have strong communication and interpersonal skills, as they often work with clients and team members from diverse backgrounds.

The International Association of Management Consulting Institutes (IAMCI) offers a Certified Management Consultant (CMC) designation, which requires passing an exam and meeting certain experience requirements.

Consultants can also earn certifications in specific areas, such as IT consulting or human resources consulting, to demonstrate their expertise.

In addition to formal education and certifications, many consultants participate in ongoing training and professional development to stay current with industry trends and best practices.

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A consultant helped a small business owner increase sales by 25% through strategic marketing and operational improvements.

Many consultants specialize in specific industries, such as healthcare or finance, and bring valuable expertise to clients in those areas.

A consultant once worked with a non-profit organization to develop a more efficient grant writing process, resulting in a 50% increase in funding.

Consultants often use data analysis and market research to identify areas for improvement and develop tailored solutions for their clients.

By leveraging their expertise and experience, consultants can help clients achieve significant results and drive business growth.

A consultant's role is not limited to providing advice, but also to implementing and executing solutions that drive real change.

Arthur E. Andersen founded Accenture, which is a well-known management consulting firm.

Arthur E. Andersen's legacy lives on through Accenture, a company he helped establish.

Edwin G. Booz, James L. Allen, and Carl L. Hamilton were also notable management consultants.

Bill Bain founded Bain & Company, a management consulting firm that has been successful for many years.

Bruce Henderson is the founder of BCG, another prominent management consulting firm.

James O. McKinsey was a pioneer in the field of management consulting.

Here are some notable management consultants:

The impact of consultants can be seen in various industries, from business to social responsibility. In the UK government sector, consultants have helped departments reduce expenditure by implementing spending controls and predicting skill gaps.

Consultants have also helped companies like Starbucks increase revenue by developing personalized recommendations in their apps. For example, the Starbucks app collects data on customers' purchasing habits and uses it to offer personalized promotions and games. This approach has led to a threefold increase in incremental spending among customers who redeem offers.

One notable example of a successful consulting project is McKinsey's Generation program, which aims to alleviate youth unemployment by providing vocational skills training and job placements. Since its inception in 2012, Generation has graduated over 38,000 people and operates in 14 countries.

Consultants have also helped companies like Concert-mania, Inc. optimize their operations and increase revenue by leveraging digital tools and data. A consulting team can help a company like Concert-mania by assessing its symptoms, diagnosing the problem, prescribing a course of action, and implementing recommendations.

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Here are some key statistics on the impact of consulting:

Consultants have a significant impact on businesses and society, often working behind the scenes to drive positive change. By leveraging their expertise and skills, consultants can help companies achieve their goals and make a meaningful difference in people's lives.