Advisory & Consultancy Services

A consultant is not involved in the long-term operations of the client and is typically placed in a team to undertake a specific project or defined problem for 3-6 months. The engagement can be longer if implementation of the defined strategy is a part of the scope.

Examples of the type of short-term work consultants do:

• Implementing a smaller change, Implementation of perhaps a software tool or business process
• Defining a path to greater profitability (EBITDA)
• Creating a market entry strategy to introduce an existing product in a new geography
• Determining the root cause for a sudden drop in revenue and developing a strategy to reverse it
• Identifying process optimizations to cut costs
• In Corporate Finance they may undertake a Valuations of a whole business or assets, look at SPA’s (Sales & Purchase agreement) rather than lead the M&A overall or Business long-term strategy

As you can see, the objectives are well defined, the impact is quantifiable, and engagements are undertaken on a project-to-project basis. Top consulting firms generally vie to maintain long-term relationships with clients in the form of multiple shorter-term projects. This is a main reason that consulting firms have been on an acquisition spree lately, acquiring specialist boutique firms. If the strategy team at a top tier Consultancy e.g. Bain identifies sustainability as a core strategic objective, the firm can sell a downstream project with subsidiary Material Economics, a sustainability focused firm that they have already acquired.

Strategy firms are usually comprised of generalists – individuals who focus on problem-solving agnostic of industry or function. However, industry-specific firms are gaining market share. A specialist Healthcare Advisory firm is one example – they perform projects across the value chain, but in the healthcare and life sciences space only.

Exit Opportunities

Exit opportunities for consultants are two-fold: either join a more prestigious consulting firm or leave to join industry at a more senior level. Consulting allows you to skip steps on the career ladder compared to if you had started in industry in the first place. Therefore, a vast majority of exits are to industry, as opportunities there generally offer better pay, better lifestyle (AKA less travel) and the opportunity to own a P&L. A quick look at a roster of Fortune 1000 CEOs will tell you that consulting moulds more C-level executives than almost any other industry.

An advisor’s nature of involvement is usually long-term and specific to his/her industry expertise. Some advisory services used by clients are:

• Tax advisor - optimizing the client’s tax liabilities
• IT advisor - helping the client build and optimize their IT backbone
• Communications advisor - advising the client on how to deal with day-to-day press events, public relations, or even internal memos

The nature of advisory work is not as project based. The overall objective for the advisor is to help the client achieve its long-term strategic goals through influencing day-to-day operations. Thus, an advisor develops deep relationships with clients.

Advisors are typically professionals who have years of experience in a particular industry. Their selling point isn’t a problem-solving approach, it is a subject matter expertise.

Exit Opportunities

Seniority often plays a key role in exit opportunities for advisors. While they can join their clients or another industry player, they will most often join an advisory organization as a senior SME (subject matter expert) overseeing the department in their expertise.

For most advisors, their current role is their exit opportunity. Their long-term career goal has been to leverage their expertise into a role advising multiple organizations while removing themselves from day-to-day operations.