Different types of consulting firms explained

9 Jan

When you think of consulting firms, you probably think of the big names like McKinsey, Deloitte and Accenture.

However, there are actually different types of firms. In this blog, we’re going to show you different types of consulting firms so you can decide what’s right for you.

Types of consulting firms

We broadly group consulting firms into four categories:

MBB (McKinsey, Boston Consulting Group, and Bain & Co.)
Big Four (Deloitte, PwC, EY, KPMG)
Tier 2 (Accenture, Oliver Wyman, Arthur D. Little, Booz Allen Hamilton, Roland Berger and more)
Boutique

Let’s explore each category more.

MBB

MBB stands for:

McKinsey

Boston Consulting Group (BCG)

Bain & Co.

These are the most prestigious consulting firms. Their reputation is enshrined in consulting history and they are phenomenally difficult to get into. For example, McKinsey accepts 1% of the 1 million applications it receives each year.

A career in MBB firms isn’t for the faint-hearted. The average working week in these firms is 70-75 hours.

There’s a very strong emphasis on high performance both in terms of the quality and quantity of work expected by its consultants. If you’re not up to scratch, you’ll quickly be shown the door.

However, this means that the training offered to its consultants is world class. Consultants keep growing and learning to meet the very high expectations so become extremely capable and polished individuals. This makes for lucrative exit opportunities.

MBB alumni typically go on to have very successful careers in industry. Notable alumni include Sheryl Sandberg, Mitt Romney and Sundar Pichai.

Big Four

When the Glass-Steagall Act was repealed in 1999, the Big Four accounting firms had a huge opportunity to add consulting services into their repertoire. Now all four of these firms, Deloitte, KPMG, EY and PwC, have very healthy consulting arms.

In addition to management consulting, these firms are growing their technology consulting footprint. Similarly, they all offer a strategy consulting contingent. Therefore if you start in management consulting but want to explore different types of consulting, it’s much easier at the Big Four and some of the Tier 2 firms than it would be in MBB or boutiques.

Life as a Big Four consultant is quite different to MBB. The hours are typically shorter with the average consultant working 60 hours a week. Similarly the environment is a little more relaxed and whilst standards are high, there’s a little less day-to-day pressure on these consultants.

The tradeoff is that progression in the Big Four is slower than in MBB. For example, MBB consultants take an average of nine years to make Partner whilst it’s 15 years for Big Four.

Nevertheless, getting into Big Four consulting isn’t easy e.g. Deloitte’s acceptance rate is 4%.

Tier 2

This term is misleading because it implies second best when these firms really aren’t. If you’re looking for a large firm with a good reputation then you’re probably looking at firms in tier 2.

In terms of competitiveness and quality, they’re on a par with the Big Four. Accenture has an acceptance rate of 6% which is actually lower than KPMG’s 8%. These firms are also comparable on starting salary, working hours, progression rate and exit opportunities.

There’s a lot of firms that fit this category including Accenture, Kearney, Oliver Wyman, Booz Allen Hamilton and more.

Boutique firms

Boutique consulting firms are much smaller. Boutique firms typically have fewer than 1000 employees and specialise in particular industries or geographies. If you’ve built a particular skill set or industry knowledge, moving to a boutique firm can offer you the opportunity to double-down on the work you enjoy most.

Life in a boutique firm is typically quite different from any of the other firm types we’ve talked about so far. Unless you’re looking to break into consulting after a period of time in industry, or you have a passion for a specific niche, boutiques are generally not the right place to start your consulting career.

If you’re considering joining a boutique firm, it’s essential you do your research. For the right person they offer the opportunity to consistently work on your dream engagements.

Find your dream firm!

Before leaping just to the biggest consulting brand names, take your time to explore all the different types of firms and what they have to offer. Your dream consulting job might be where you least expect it.