Management Consulting– Industry
The Management Consulting industry is promising. The Global Revenue of Management consulting services is estimated to be around $415 billion in 2013 (Plunkett Research estimates). This is excellent growth from 2012’s $319 billion but management consulting still remains sensitive to the global economic environment. The years following the financial crisis in the United States, Management consulting services dropped in 2009 from about 5% to 10% for management consulting companies.
When corporate profits rise, management consulting services often rise too. Executives often are more willing to spend extra on management consulting services during healthy and growing economic environments.
According to a Business Week article published on June 13th, 2013, many management consulting firms will continue to see their clients hire outside help. This article mentions that some of the growth is due to pressure on management to keep a lean work force.
Management consulting will continue to a practice that can help the performance of organizations through planning and analysis. Management consultants often have insights to organizational trends that businesses can learn and benefit from. The competitive nature of U.S. marketplace often requires constant evaluation of corporate strategies and internal businesses processes.
Management Consulting Salaries
“Consulting salary fluctuates year by year, location by location, and sometimes individual by individual. Location is a particularly important driver of compensation. The figures shown below are compensation ranges of management consultant (including salary plus all bonuses) at various level from top-tier American firms (e.g., Bain, BCG and McKinsey):
- Undergraduate or master degree: US$75,000–100,000
- Advanced degree (MBA, JD, PhD, or MD): US$140,000–200,000
- Engagement manager/ Project leader: US$250,000–350,000
- Associate/ Principal: US$500,000–800,000
- Partner: US$1,000,000+
- Director/ Senior partner: US$3,000,000+ “ –Wikipedia
The U.S. Bureau of Labor Statistics has an overview of management consulting career statistics and information however it is under the title Management Analyst. Please visit here for more information.
What is the Revenue model for Management Consulting?
There are two main ways a management consultant uses to charge a client. The most common way to to bill a client on an hourly basis plus out-of-pocket expenses including traveling and often food. The less common way to bill a client would be to attach a financial collar or performance based metric. For example, a contract could be created for the total expenses saved in the first year after implementation of services. The client would then have a delayed savings benefit however would increase the value of their organization in perpetuity.
Is there a Management Consulting Certification?
Their is no actual certification for Management consulting because management consultants are usually skilled in a specific area and have a high level of expertise in this area. Certifications in a consultant’s specific niche can help the credibility of a consultant. Generally Speaking most consultant have some sort of advanced degree such as a M.B.A or Phd in a specific field.
There are several organizations that claim to provide a management consulting certification however it not a standard test but more of a post-career certification. The Institute of management consultants offers a C.M.C. ; as described on their website a C.M.C is:
“The Certified Management Consultant (CMC®) mark is awarded by the IMC USA to consultants who have achieved a level of performance that includes professional standards in technical competency and ethics, and global standards in consulting competencies, professional behavior, client and project management, and personal conduct.”
The qualifications for this certification requires a minimum of three years as a management consultant in a specific area so someone looking to become a management consultant cannot get such a certification by just studying alone.