A rapidly growing small company needs a better system of control over inventories and expenses. An established manufacturing company decides to relocate to another State and needs assistance planning the move. After acquiring a new division, a large company realizes that its corporate structure must be reorganized. A division chief of a government agency wants to know why the division's contracts are always going over budget. These are just a few of the many organizational problems that management analysts, as they are called in government agencies, and management consultants, as business firms refer to them, help solve. Although their job titles may differ, their job duties are essentially the same.
The work of management analysts and consultants varies from employer to employer and from project to project. For example, some projects require several consultants to work together, each specializing in one area; at other times, they will work independently. In general, analysts and consultants collect, review, and analyze information; make recommendations; and often assist in the implementation of their proposal.
Both public and private organizations use consultants for a variety of reasons. Some don't have the internal resources needed to handle a project; others need a consultant's expertise to determine what resources will be required or problems encountered if they pursue a particular course of action; while others want to get outside advice on how to resolve organizational problems that have already been identified or to avoid troublesome problems that could arise.
Firms providing consulting services range in size from solo practitioners to large international organizations employing thousands of consultants. Some firms specialize by industry; others by type of business function, such as human resources or information systems. Consulting services usually are provided on a contract basis a company solicits proposals from consulting firms specializing in the area in which it needs assistance. These proposals include the estimated cost and scope of the project, staffing requirements, and the deadline. The company then selects the proposal which best meets its needs.
Upon getting an assignment or contract, consultants define the nature and extent of the problem. During this phase of the job, they may analyze data such as annual revenues, employment, or expenditures; interview employees; or observe the operations of the organizational unit.
Next, they use their knowledge of management systems and their expertise in a particular area to develop solutions. In the course of preparing their recommendations, they must take into account the general nature of the business, the relationship the firm has with others in that industry, and the firm's internal organization, as well as information gained through data collection and analysis.
Once they have decided on a course of action, consultants usually report their findings and recommendations to the client, often in writing. In addition, they often make oral presentations regarding their findings. For some projects, this is all that is required; for others, consultants may assist in the implementation of their suggestions.
Management analysts in government agencies use the same skills as their private-sector colleagues to advise managers in government on many types of issues most of which are similar to the problems faced by private firms. For example, if an agency is planning to purchase several personal computers, it first must determine which type to buy, given its budget and data processing needs. Management analysts would assess the various types of machines available and determine which best meets their department's needs.
Management consultants may spend a significant portion of their time with clients.
Management analysts and consultants usually divide their time between their offices and their client's operation. Although much of their time is spent indoors in clean, well-lighted offices, they may have to visit a client's production facility where conditions may not be so favorable. They must follow established safety procedures when making field visits to sites where they may encounter potentially hazardous conditions.
Typically, analysts and consultants work at least 40 hours a week. Overtime is common, especially when deadlines must be met. In addition, because they must spend a significant portion of their time with clients, they may travel frequently.
Self-employed consultants can set their workload and hours and work at home. On the other hand, their livelihood depends on their ability to maintain and expand their client base, which can be difficult at times.
Management analysts and consultants held about 208,000 jobs in 1992. Four out of 10 of these workers were self- employed. Most of the rest worked in management consulting firms and for Federal, State, and local governments. The majority of those working for the Federal Government were found in the Department of Defense.
Management analysts and consultants are found throughout the country, but employment is concentrated in metropolitan areas.
There are no universal educational requirements for entry level jobs in this field. However, employers in private industry prefer to hire those with a master's degree in business administration or a discipline related to the firms' area of specialization. Those individuals hired straight out of school with only a bachelor's degree are likely to work as research associates or junior consultants, rather than full-fledged management consultants. It is possible for research associates to advance up the career ladder if they demonstrate a strong aptitude for consulting, but, more often, they need to get an advanced degree to do so.
Many entrants to this occupation have, in addition to the appropriate formal education, several years of experience in management or in another occupation.
Most government agencies hire those with a bachelor's degree and no work experience as entry level management analysts, and often provide formal classroom training in management analysis.
Many fields of study provide a suitable formal educational background for this occupation because of the diversity of problem areas addressed by management analysts and consultants. These include most areas of business and management, as well as computer and information sciences and engineering.
Management analysts and consultants who are hired directly from school sometimes participate in formal company training programs. These programs may include instruction on policies and procedures, computer systems and software, research processes, and management practices and principles. Because of their previous industry experience, most who enter at middle levels do not participate in formal company training programs. However, regardless of background, analysts and consultants routinely attend conferences to keep abreast of current developments in their field. Additionally, some large firms offer in-house formal training programs for all levels of staff.
Management analysts and consultants often work under little or no supervision, so they should be independent and self-motivated. Analytical skills, strong oral communication and written skills, good judgment, the ability to manage time well, and creativity in developing solutions to problems are other desirable qualities for prospective management analysts and consultants.
In large consulting firms, beginners usually start as a member of a consulting team. The team is responsible for the entire project and each consultant is assigned to a particular area. As consultants gain experience, they may be assigned to work on one specific project full-time, taking on more responsibility and managing their own hours. At the senior level, consultants may supervise entry level workers and become increasingly involved in seeking out new business. Those with exceptional skills may eventually become a partner or principal in the firm. Others with entrepreneurial ambition may open their own firm.
A high percentage of management consultants are self-employed, partly because start-up costs are low. Little capital is required initially, and it is possible for self-employed consultants to share office space, administrative help, and other resources with other self-employed consultants or small consulting firms, thus reducing overhead costs.
The Institute of Management Consultants (a division of the Council of Consulting Organizations) offers the Certified Management Consultant (CMC) designation to those who pass an examination and meet minimum levels of education and experience. Certification is not mandatory for management consultants to practice, but it may give a jobseeker a competitive advantage.
Employment of management analysts and consultants is expected to grow much faster than the average for all occupations through the year 2005 as industry and government increasingly rely on outside expertise to improve the performance of their organizations. Growth is expected in large consulting firms, but also in small consulting firms whose consultants will specialize in highly specific areas of expertise. Although most job openings will result from employment growth of the occupation, additional opportunities will arise from the need to replace personnel who transfer to other fields or leave the labor force.
Increased competition has caused American industry to take a closer look at its operations. In more competitive international and domestic markets, firms cannot afford inefficiency and wasted resources or else they risk losing their share of the market. Management consultants are being increasingly relied upon to help reduce costs, streamline operations, and develop marketing strategies. As businesses downsize and eliminate needed functions as well as permanent staff, consultants will be used to perform those functions on a contractual basis. On the other hand, businesses undergoing expansion, particularly into world markets, will also need the skills of management consultants to help with organizational, administrative, and other issues. Continuing changes in the business environment also are expected to lead to demand for management consultants: Firms will use consultants' expertise to incorporate new technologies, to cope with more numerous and complex government regulations, and to adapt to a changing labor force. As businesses rely more on technology, there are increasing roles for consultants with a technical background, such as engineering or biotechnology, particularly when combined with an MBA.
Federal, State, and local agencies also are expected to expand their use of management analysts. In the era of budget deficits, analysts' skills at identifying problems and implementing cost reduction measures are expected to become increasingly important. However, because one-half of the management analysts employed by the Federal government work for the Department of Defense, the pace of Federal employment growth will vary with the defense budget.
In the private sector, job opportunities are expected to be best for those with a graduate degree and some industry expertise, while opportunities for those with only a bachelor's degree will be best in the Federal Government.
Because many small consulting firms fail each year for lack of managerial expertise and clients, those interested in opening their own firm should have good organizational and marketing skills, plus several years of consulting experience.
Despite projected rapid employment growth, competition for jobs as management consultants is expected to be keen in the private sector. Because management consultants can come from such diverse educational backgrounds, the pool of applicants from which employers hire is quite large. Additionally, the independent and challenging Nature of the Work combined with high earnings potential make this occupation attractive to many.
Salaries for management analysts and consultants vary widely by experience, education, and employer. In 1992, those who were wage and salary workers had median annual earnings of about $40,300. The middle 50 percent earned between $26,500 and $60,100.
In 1991, according to the Association of Management Consulting Firms (ACME), earnings including bonuses and/or profit sharing for research associates in ACME member firms averaged $31,300; for entry level consultants, $39,100; for management consultants, $56,300; for senior consultants, $76,700; for junior partners, $105,600; and for senior partners, $166,100.
Typical benefits for salaried analysts and consultants include health and life insurance, a retirement plan, vacation and sick leave, profit sharing, and bonuses for outstanding work. In addition, all travel expenses usually are reimbursed by their employer. Self-employed consultants usually have to maintain an office and do not receive employer-provided benefits.
Management analysts and consultants collect, review, and analyze data; make recommendations; and assist in the implementation of their ideas. Others who use similar skills are managers, computer systems analysts, operations research analysts, economists, and financial analysts.
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Reprinted with Permission of U. S. Department of Labor