Are you curious about the differences between management consulting and strategy consulting? In this article, we will break down what each type of consulting involves, how they differ, and what they have in common.
Whether you are exploring a career in consulting or just want to understand how these roles compare, we will cover everything you need to know in easy-to-understand terms!
Table of Contents
Overview of management consulting and strategy consulting
Management consulting is a service that helps businesses become better at what they do. Management consultants look closely at how a company is working and find areas where it can improve.
Strategy consulting is a special type of management consulting that focuses on helping companies plan for the future. Strategy consultants help decide on big-picture goals and how to reach them.
In other words, management consulting is a broader term that covers strategy, operations, and implementation. All strategy consulting is part of management consulting but not all management consulting is about strategy.
Five differences between management consulting and strategy consulting
Five differences between management consulting and strategy consulting
Focus
Management consulting is all about improving the daily operations of a business, working across various areas like operations, human resources, IT, finance, and marketing. However, strategy consulting deals with the big picture of direction of the whole organization.
Management consulting services typically include process improvement, risk management, system implementation, and performance measurement. On the other hand, strategy consulting deals with broader topics such as strategic planning, market entry strategy, mergers and acquisitions (M&A), and growth strategy.
Time horizon
Management consulting can involve projects that are short to medium-term. This means that they often aim at solving problems that have a quick and tangible impact - often within a few months or a couple of years.
In contrast, strategy consulting is only focused on long-term planning. The results might take several years to fully unfold, as they are more about shaping the future of the entire company.
Client engagement
Management consultants engage with a broad range of employees across different organizational levels, from those handling everyday tasks to those overseeing entire departments.
In contrast, strategy consultants, with their focus on the big picture, work closely with the top leaders of the company, such as the CEO and executive teams.
Who management consultants and strategy consultants engage with
Recruitment
Management consultants are hired by a wide range of companies, from small businesses to large corporations. Since they help with different aspects of a company's daily operations, businesses of all sizes might need their expertise.
Strategy consultants are usually hired by larger companies and corporations. These firms often seek help with big-picture policies and strategic decisions within a specific industry or niche.
Common questions
Management consulting focuses on practical questions aimed at improving daily operations. Common issues they tackle include:
- What changes can be made to enhance our financial performance?
- What adjustments are needed in our organizational structure and staffing?
- How can we strengthen risk management?
For example, a management consultant might help a hospitality group organize their operational teams more efficiently.
In contrast, strategy consulting deals with big-picture, long-term questions. They often explore topics such as:
- What is our long-term vision?
- What should our business portfolio look like?
- Why should we enter this market?
An example of strategy consulting would be developing a five-year strategic plan for a large consumer goods company.
Common questions for management consultants and strategy consultants
Three similarities between management consulting and strategy consulting
Three similarities between management consulting and strategy consulting
Skills required
Regardless of the type of consulting you choose, strong problem-solving abilities are essential. This means you should be skilled at breaking down the problem, analyzing data, and finding the most suitable solution.
What is more, analytical skills, industry knowledge and effective communication are must-have requirements for any consultant to thrive on.
Career path
In both fields, the journey typically starts at the entry level as a Business Analyst (BA). From there, you would advance to a consultant role, then move up to senior consultant, manager and director.
The exit opportunities are also quite similar for both types of consulting. After working as a consultant, you might work at C-level for other corporate companies or start your own business. This depends on your preferences and development directions.
Compensation
Whether you are a management consultant or a strategy consultant, the salary you earn depends on your level of experience, the types of projects you work on, and the firm you work for.
Your compensation is determined more by your capabilities, not by the type of consulting you do.
Practice to become the type of consultant you want
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