The phrase "Management Consulting" refers to the practice of helping organisations and guiding their management to improve their performance. They analyse existing problems in the organisation and develop plans for their solution and its implementation. Usually, management consultants are hired to obtain a third-party objective overview of a specific problem and utilise their expertise in solving them.
Management consulting firms have a broad spectrum of clients, ranging from typical businesses to non-profit organisations and sometimes even government agencies. This relationship with numerous different organisations gives them exposure to the industry's best practices and help them to stay with the latest trends.
Management consultants are bright people with a knack for problem-solving, quick-thinking, teamwork, exceptional communication skills and professional. Thus, not all management consultants operate on a set methodology, and their work principles differ from person to person. Management consultancies can often provide practical solutions and insights as a benefit of their externality and varied experience outside the company. Their broad focus on gathering information and expertise earned across industries renders them a cost-effective alternative to costly internal reviews.
Management consulting can include the following areas of specialisation:
1)Strategy ConsultingThis employs the majority of management consultants. They advise organisations on long-term strategic visions and help draw a roadmap for increased profitability and efficiency in the long run. Major strategy consulting firms include McKinsey & Co. and Boston Consulting Group (BCG).
2)Accounting and AuditsThere are a lot of similarities between accounting and consulting. That is why a lot of major auditing firms contribute consulting work to their client's too. This usually happens in cases involving human resources and transactions. For example, a company may have bottlenecks slowing down payments to the workforce. Auditing firms can then step in with their expertise and manage not only to get the bookkeeping in order but also to implement a solution for the payment system. Major firms in the financial consultancy market include KPMG and Deloitte.
3)Internal ConsultantsSome management consultants cater to one client, and that would be their employers. In many corporations, it is quite common to constitute an internal consulting team that tackles the various operational challenges of the company and puts forward potential areas of improvement. Sometimes, a company's strategy group itself may comprise a consulting team. This has many benefits since the team will not need to familiarise itself with the business and will cost lesser than hiring third-party consultants.
4)Independent consultantsSome people do not operate under the aegis of a company and instead work independently or in small teams. These people usually have a great deal of expertise in a particular niche. They may include retired consultants, new parents looking for reduced workload or just young people with a desire for greater freedom and flexibility in their working hours.