What is strategy consulting?

Strategy consulting is one of the most competitive destinations for graduates, but it’s also misunderstood. Luckily, we've compiled a guide to help you understand the ins and outs of this prestigious sector.

We’ll answer:

• What is strategy consulting?
• What’s the difference between management consulting and strategy consulting?
• Why do organisations use strategy consultants?
• What skills do I need for strategy consulting?
• Who hires strategy consultants?

Strategy consultants advise organisations (ie. businesses, charities, even governments) on high-level decisions (ie. things that’ll have a long-term impact). They do this without any bias by using in-depth industry knowledge. Their job is to give guidance on the solutions that’ll deliver the best results.

Strategy consultants work across every industry, with private and public sector bodies on various issues.

For example, a company is looking to save money in a shrinking market, so is considering closing a manufacturing plant. They want to know if it’s worth doing, which plant to close, how much money they’ll save, what it’ll cost, and how to restructure their supply chain to manage the loss of production. It’s a lot to think about – and that’s where a strategy consultant comes in.

Management consulting is the umbrella term for advising at the highest level of a company. Strategy consulting is a subset of this, where consultants focus on giving industry-specific insights and actionable strategies to address current challenges.

Organisations can’t always take care of every problem themselves. From time to time, businesses need external help from experts. A strategy consultant will devote themselves to the question at hand. Internal executives can’t do this as they’re already busy with their day jobs.

Strategy consultants also offer expertise in a particular area, such as market positioning or restructuring. A good consultant will bring their independent knowledge and cover every angle of the situation. That's what makes them worth the investment.

Sometimes, consultants also fulfil a legal purpose. During a merger, information shared between two companies before they complete a transaction is highly sensitive due to competition law. Consultants operate independently, sourcing information from both parties so that they’ll have a strategy ready from the moment they sign the last document. It's a legal way of getting ahead.

Can you see yourself being a strategy consultant? Here’s what you’ll need.

As well as specific industry knowledge, there are a few general skills that are essential to a strategy consulting career:

You’ll need the ability to collect and analyse data to assess problems, structure solutions and present information. Strategy consultancy employers typically assess candidates’ analytical skills in case study interviews.

Consulting is a client-focused industry. You’ll spend a lot of your time dealing with clients in management roles to understand the issues they’re facing. You need to be able to build relationships, be persuasive when necessary and know when to defer.

Strategy consultants work to tight deadlines – missing them isn’t an option. So, make sure you get organised with your to-do list.

Even once you’re an expert, there’s always more to learn. A good consultant will be aware of their performance, find ways to improve and be happy to keep growing.

In most cases, strategy consultants work for consulting firms.

Pure play strategy consulting firms only do strategy consulting – nothing else. Other firms offer a mix of types of consulting work and professional services.

Some big businesses have their own consulting teams who work in-house (ie. are employed directly by them). In an in-house role, you’ll become a subject matter expert.

Strategy consulting is a subset of management consulting where consultants advise businesses on challenges using industry-specific knowledge.

All kinds of organisations bring in strategy consultants for temporary tasks. Sometimes, it’ll be because a business is facing a specific issue and other times it’ll be as part of a legal requirement for a merger.

The types of businesses that need strategy consultants are hugely varied but consultants usually work independently from the firms they’re advising. Most consultants work for consulting and professional services firms. However, in-house consulting roles do exist.

Strategy consulting is a great career option for ambitious grads who enjoy problem-solving. Does that sound like you? Take the plunge and apply for a role.