Strategy Consulting: What It Is & How to Succeed in It

As an executive of a leading magazine, I’m facing a challenging situation. Our website is experiencing increased traffic, but our physical copy sales are declining. This shift is unfamiliar territory for me, as I lack a deep understanding of web publications. It’s clear that I need to take decisive action, but I’m uncertain about the best approach to address this dilemma. Time is of the essence, and I must quickly determine a course of action to navigate this transition effectively.

This article will delve into the essence of strategy consulting, its relevance for business owners, and pathways to enter this field.

Typically, strategy consultants assist their clients over a predefined period. During this timeframe, they commit all their resources—time, expertise, and focus—to address a particular challenge.

What does a strategy consultant do?

Upon undertaking a new project, strategy consultants typically commence with a thorough analysis of their client’s business objectives and goals. This analysis aims to ascertain the alignment between current practices and desired outcomes. Based on their findings, consultants offer strategic recommendations aimed at enhancing performance.

Moreover, strategy consultants bring expertise in market research and competitive analysis, empowering clients to make well-informed decisions crucial for their company’s success.

When engaging a strategy consultant, companies can expect guidance in various areas:

• Budgeting Advice: Insights on cost-cutting measures and revenue-driving strategies.
• Production Strategies: Recommendations to optimize efficiency in product creation processes.
• Opportunity Management: Identification of new revenue streams or product opportunities.

Strategy Consulting Example

In the given scenario, a strategy consultant specializing in digital transformation could offer invaluable guidance to the publication in determining its next steps.

Upon engagement, the consultant would immerse themselves in understanding the magazine’s operations, analyze current web traffic sources, review trends in physical magazine sales data, and conduct comprehensive competitive analysis of both print and web editions among key competitors.

Key considerations would include assessing whether the website’s ad revenue could offset losses from declining subscriptions, evaluating the adequacy of the company’s IT infrastructure to handle increased web traffic, and making informed projections regarding the future viability of printed magazines.

Armed with this information, the consultant would propose a two-fold strategy to leverage the magazine’s web traffic and accommodate evolving reader behavior. Firstly, a redesign aimed at enhancing the reader experience and bolstering SEO would be recommended. Subsequently, the implementation of a gated content system would enable dedicated readers to access additional content for a nominal monthly fee.

Presenting this recommendation to the executive team, the consultant would provide forecasted data demonstrating the potential revenue capture and how this strategy aligns with the company’s growth objectives. Upon approval, the consultant would collaborate with management on the implementation plan to ensure successful execution.

Following the provision of recommendations, consultants may also assist in the implementation phase.

Why strategy consulting?

The necessity for external industry experts in strategy consulting may prompt several inquiries. Why do companies rely on outside expertise? Shouldn’t executives possess sufficient expertise themselves? Can’t they enlist internal staff to address such issues?

The answer to these queries primarily revolves around focus and impartiality.

In the example provided, a strategy consultant’s singular focus lies in addressing the publication’s transition from print to digital and its associated implications. This focused attention is challenging for executives who oversee the entire company and are unable to dedicate themselves solely to individual issues.

Furthermore, strategy consultants offer a level of impartiality that may be lacking among internal stakeholders. Boards, executives, and managers often have personal interests in their organizations, which can introduce biases and cloud judgment on specific matters.

Strategy consultants bring an objective, outsider perspective. Their assessments are not influenced by personal investment in the company, ensuring clear and impartial judgment. As a result, executives benefit from insights devoid of emotional attachments and personal biases.

How to Get Into Strategy Consulting

Get the Right Degree(s)

While a bachelor’s degree, typically in business administration or a related field, is a basic requirement for entering strategy consulting, it’s just the starting point. Securing a strategy consulting position isn’t guaranteed solely by having a bachelor’s degree.

Although there isn’t a definitive educational standard applicable to all consulting firms, many prefer candidates with MBAs. These firms seek mature individuals with a strong grasp of business management principles, analytical capabilities, and a proven aptitude for problem-solving.

Additionally, pursuing internships, particularly with consulting firms or within high-demand industries, during your academic years is highly recommended. This hands-on experience provides invaluable insights and bolsters your resume, increasing your chances of securing a strategy consulting role in the future.

Get a Lot of Experience Under Your Belt

Becoming a strategy consultant demands a significant level of business acumen and consulting expertise, encompassing various crucial aspects.

Proficiency in boardroom etiquette is essential. Given the close collaboration with executives, effective and professional communication skills are paramount for conveying ideas and recommendations.

Strategy consultants regularly encounter challenging decisions, central to their role. Confidence and sound judgment are imperative in providing practical and actionable advice. Furthermore, the ability to articulate the rationale behind recommendations is crucial.

These skills are typically honed through experience rather than inherent talent. It’s common for individuals to gain these capabilities through several years of work in both business and consulting environments. Additionally, specialization in specific fields or business domains is often expected of strategy consultants.

Trust is fundamental in consulting relationships. Executives rely on consultants to make informed decisions. Therefore, having relevant industry experience is vital. Without it, consultants may struggle to gain credibility and trust, potentially undermining their effectiveness in providing valuable insights and recommendations.

Know the Landscape

Understanding the trajectory of consulting, both past and future, is crucial before embarking on a career in the field. From 2008 to 2019, the consulting industry experienced remarkable expansion, reaching a global valuation of $160 billion.

However, the emergence of the COVID-19 pandemic caused a setback, resulting in a global decline of approximately 19% in the field. Nevertheless, as many companies and industries undergo long-term shifts in their work approaches, there emerges a potential for consultants to play a pivotal role in fostering innovation and shaping the future of work.

Despite the initial impact of the pandemic, the consulting sector exhibited resilience, evidenced by a 14% job growth rate in 2021.

Familiarize Yourself with the Industry

Strategy consulting firms can be categorized into two main groups: pure-play firms, which specialize exclusively in strategy consulting, and firms that offer strategy consulting alongside other services.

Among the leading pure-play firms are McKinsey & Company, Boston Consulting Group, and Bain & Company. Additionally, there are other firms with well-established or rapidly expanding strategy consulting practices, including Ernst & Young, Deloitte, Accenture, Oliver Wyman, and CapGemini.

For aspiring strategy consultants, familiarizing oneself with these firms is essential. These renowned names serve as valuable starting points for networking efforts, potentially facilitating opportunities to enter the field.

How to Succeed in Consulting

Now, you might be wondering, how can I distinguish myself in the consulting field?

The first crucial step to thriving in consulting is to identify your niche. What area of business are you most knowledgeable about? What specific problems do you excel at solving? Successful consultants leverage their expertise to deliver tangible results for their clients. As you enter the field, carefully consider the unique value you bring to the table.

However, simply adding value isn’t enough to maintain a steady flow of clients. You must also effectively demonstrate the value you provide to consistently attract new clients. Whether through sharing insightful thought leadership content, showcasing case studies, or presenting testimonials from previous clients and projects, successful consultants must illustrate their value proposition and why they are the best choice to support potential clients.

Moreover, to thrive in consulting, it’s imperative to continuously sharpen your skills. In 2020, 43.5% of consulting firms identified the need for acquiring new skills as their top challenge. Constantly seek opportunities to enhance your analytical and problem-solving abilities to stay ahead of the curve.

Strategy consulting is an exhilarating field that plays a crucial role in guiding businesses and ensuring their success. While breaking into this field may not be easy, you can position yourself for success by acquiring the right education, gaining relevant experience, honing your problem-solving skills, and demonstrating unwavering dedication.