Consulting is a major industry in international business. In 2000, it was a $70 billion industry that employed over 140,000 people. The biggest amounts of income were generated by the following services:
Consulting is not only large, but rapidly growing. It’s grown over 50% from the end of the 1970s to the beginning of the 1990s. It is growing even faster now as corporations have to adjust to new trends of globalization and leaps in technology, which make the work of consultants all the more valuable.
This international growth is especially important in developing countries. As more countries industrialize, they look for new and better ways to improve their economies. Thus, consultants are in extremely high demand. A smart prospective consultant would take this into account by learning about economic development and international trade and finance.
Most top firms are taking advantage of these growth areas and are rapidly expanding in those areas.
Consulting is a group project. Very few consultants make it on their own without a firm, as it is difficult to establish credibility and build up a clientele. Be prepared to join an existing firm.
Interviewing at such firms often involves a case study which you have to instantly analyze. Be prepared to show your problem-solving skills and that you are mentally alert.
Specialized knowledge is in increasing demand. Specific expertise in subjects like electronic commerce, brand and value management, multimedia, logistics management, client-server development, ad infinitum, is very valuable to consulting firms.
One especially helpful skill is strategic business unit analysis. Firms will value you if you can evaluate which aspects of the business are profitable and which are not. For example, if a computer manufacturer is losing money making printers, can you find a way to make it profitable? Is it better to outsource it? Know how to find problem areas of the business and fix them. Conversely, know how to recognize profitable areas of business. Can you expand them?
Large firms aren’t the only places to find great consultants. Some of the best consultants prefer small firms where they can work more independently and better see the results of their labor. A consultant in a firm of any size can find challenging, interesting, important work, and any consultant has important responsibilities.
If you are someone without a traditional business degree, especially an engineer, be sure to demonstrate the skills that consultants value in people with business degrees: incisive analytical thinking and flexibility. Show that you can apply your associated knowledge to solve business problems.
An important new trend is “relationship consulting,” which means that one consultant works with a company on a long-term basis, solving many problems, ensuring that new ideas are put into operation, and providing well-informed advice. These longer contracts, of course, lead to much higher fees.
Another way that consultants are getting closer to their clients is the new custom of involving members of the client management with the consulting team. This can help the client feel more involved and is often more productive.
Generalists are in high demand in many firms. They look for people with extremely diverse backgrounds, from linguistics to anthropology, with the common thread being those who are strategic thinkers. On the other hand, some see an increase in hiring business majors with definite skills in analyzing. You’ll have to find what your strengths are and where you fit.
Your success depends on how well you focus on the client. It’s a business based not on advertising but referrals. You have to show that you can do a good job and make a good impression so that you’ll be recommended on other projects.
One advantage of the industry is that it isn’t as affected by the whims of the economy. During a recession many companies are more likely to hire a consultant, making for good job security. Watch out for companies that have too much management, however, or that are overstaffed. Working for such a company is an easy road to failure as a consultant.
Some firms like a self-made, thoroughly independent consultant, while others like to train and shape you into the kind of consultant the firm is known for.
Being comfortable with technology is a must in any aspect of today’s business world. Many firms are using new technologies to develop virtual organizations so that many people in many different organizations and corners of the world can work together.
Value management is another area with increasing potential. As a company’s market value changes over time, the cash flow returned to shareholders can be maximized, creating powerful incentives. This is an important skill to many firms, who especially value people who have lots of experience and knowledge about every level of production.
