What do Management Consultants do?

Sun Aug 13, 2023

Hey there! Have you ever heard the term "management consultant"? It might sound fancy, but many folks don't really know what these professionals do. Well, let's dive into it and find out! I'm going to break down what management consultants actually do, the skills they need, and how you can develop those skills if you're interested in this field.

Cracking the Code: What's Up with Management Consultants?

Alright, so management consultants are kind of like secret agents in the business world. They tackle tricky problems that big companies face. You know those huge names like Apple, Amazon, and P&G? Even they run into difficulties. For us regular folks, a problem could be not getting a raise, but for these giants, it's often about their money – revenue not going up, profits taking a dip, or costs climbing higher.

To sort out these problems, these big players call in the cavalry – that's where management consultants come in. Think of the top guns like MBB (that's McKinsey, Bain, and BCG) and the big four companies: Deloitte, KPMG, EY, and PWC. They're the superheroes of the business world, and they help these companies get back on track.

Let's Get Real: What's Their Job Like?

Imagine Apple wants to make 20% more money this year. They'd hire a management consulting company like Deloitte to help them make it happen. Now, these consulting folks from Deloitte would team up with Apple's big bosses – the CEO, COO, and all those important initials.

Here's where the magic starts. The consultants dive into research, checking out the market and the competition. But they're not just throwing out random ideas. Nope, they're backed up by data – solid info that they gather. Let's say they suggest Apple should launch a new product, like a cool drone.

Math + Business: The Behind-the-Scenes Action

Now, hold onto your hats – this is where numbers meet business smarts. Consultants figure out the market size, which is the total number of people who might buy the drone multiplied by how much they're willing to pay. For example, if 10 crore folks are game for a drone at $1000 each, that's a market size of $100 billion. Pretty huge, right?

Now, Apple's revenue in 2022 was around $400 billion, and they want a 20% boost. So, this drone market looks like a golden opportunity.

Digging Deeper: It's Not Just About Numbers

But it's not just about size. The consultants also check out how fast this drone market is growing. If it's booming, it's a good sign. Plus, they peek at the competition – who's the big cheese in this drone game, how much market share they have, and where they're strong or weak.

Why Can't Apple Just Do This Themselves?

You might wonder why Apple can't do all this alone. Well, the truth is, this kind of research needs lots of sources and experts. That's where consulting companies like Deloitte shine. They've been cracking these tough nuts for ages and have oodles of info about different industries. They see things from the outside, which companies often miss.

Making Big Bucks Decisions: The Risk Factor

Here's the kicker: these decisions aren't just child's play. They involve tons of money – from millions to billions of dollars. If a company messes up, they could lose big time. So, they're willing to pay consulting experts to make sure they're making the right moves.

Beyond Numbers: More Stuff They Do

But wait, there's more! These consultants don't just crunch numbers. They help shape product plans – like how cool the drone's camera is or how far it can fly. They also cook up strategies to sell the product – like using famous folks to talk about it or putting up huge billboards.

And don't forget the nitty-gritty. They make sure the company runs smoother by finding wasteful tasks and improving communication between different parts of the company.

In a Nutshell

So, there you have it! Management consultants aren't just business heroes; they're problem-solvers armed with data, ideas, and serious know-how. If you're eyeing a career in this world, focus on building skills like analyzing stuff, doing research, and thinking smart. In a world where businesses are like puzzles waiting to be solved, management consultants are the puzzle masters.