As a business professional, it is important to understand the different types of consulting available and how they relate to your specific business needs. Strategy consulting and management consulting are two of the most popular types of consulting available, but it can be difficult to understand the differences between them. In this blog post, we will delve into the various features of strategy consulting and management consulting and explore their applications in a business setting. Through understanding the key differences between these two types of consulting, you can better determine which option is the right fit for your business. We will also evaluate how the two approaches can be used together to create the best outcome for your organization. By the end of this post, you will have a better understanding of how to find the right consulting for your business, as well as the key differences between strategy consulting and management consulting.
Differences between strategy consulting and management consulting
What is management consulting?
External consultants help businesses and organizations develop general management strategies, maximize operations, and find solutions to any related problems they identify through a process known as management consulting, also known as operational consulting. In the end, management consulting looks to increase efficiency and overall business performance. Management consultants usually perform the following job duties:
What is strategy consulting?
Heads of businesses or organizations engage in strategy consulting, a subset of management consulting, to receive direction and advice on how to resolve particular strategic business challenges or conflicts. In order for a business to implement changes at the top of the power structure, this type of consulting frequently concentrates on corporate-level strategy. Strategy consultant responsibilities usually include the following:
Strategy consulting vs. management consulting
Although there are similarities between management and strategic consulting, there are also some significant differences between the two, such as:
The goal of strategy consulting is to direct a company toward effective business strategies and assist them in putting those strategies into practice to boost revenue. In contrast, the goal of management consulting is to increase operational effectiveness and overall performance in the workplace. Both types of consulting have the same ultimate goal of improving every aspect of the business, but they accomplish this in different ways.
The main objective of strategy consulting is to increase efficiency at the corporate, senior, or executive level. This aids in developing a company’s overall strategic direction that lower levels of the organization can refer to for direction. The professionals in charge of daily operations or those whose line of work directly involves them in day-to-day tasks and objectives are the main targets of management consulting. Each type of consulting involves different company personnel.
Despite being external to the company or organization that hires them, management and strategy consultants collaborate closely with internal staff to achieve goals. Between the two types of consulting, there is a significant difference in the process that each type of professional completes, which typically involves different company staff. Senior leaders and top management professionals work together with the strategy consultant in strategy consulting. In management consulting, the management of the company and its personnel work together with the management consultant to achieve results.
Strategy consultants address problems the company has already identified and make an effort to resolve them. For instance, a company’s expansion strategy might not result in the amount of revenue needed for it to be profitable. In this situation, the business might engage a strategic consultant to examine this plan and provide advice on how to deal with this problem.
Meanwhile, management consultants spot any potential problems in a company’s operations and provide knowledgeable advice on how to resolve these problems. For instance, a business might hire a management consultant to review its project and collaboration methods. The consultant might identify methods that don’t produce the best results and recommend getting rid of them.
Strategy consultants typically possess highly specialized knowledge that permits them to work in particular fields or industries. Larger businesses frequently employ strategy consultants when they require new strategic direction to direct them as they grow. A large bank, for instance, may seek the advice of a strategy consultant who specializes in expansion in the banking and private company sectors if they are having trouble branching out to new locations to increase their presence.
In contrast, management consulting tends to be much more general. The knowledge of management consultants tends to be less specialized, and they can provide consulting services across various industries and fields. For example, a chain of restaurants might hire a management consultant to provide guidance on how to enhance their hiring procedure, which is a more fundamental problem. Due to their broad range of specialization, management consultants typically work for businesses of all sizes, not just large ones.
Outcomes for strategy consulting and management consulting have different timeframes. Strategy consultants strive to produce results with a wider scope. Long-term, these results result in higher revenue for the entire business. In contrast, management consultants seek to produce outcomes that have a short- or medium-term impact on employees. Of course, the goal for each type of consulting is to increase profits and branch out into new areas like new markets.
What is the difference between management consultant and strategy consultant?
A typical management consultant is engaged to determine the issues an organization as a whole is experiencing. One engages a strategy consultant to offer strategic guidance on particular management issues.
Is McKinsey a strategy or management consulting?
According to the 2013 book The Firm, McKinsey & Company offers strategy and management consulting services, such as offering guidance on an acquisition, creating a plan to restructure a sales force, developing a new business strategy, or offering guidance on downsizing
Is consulting same as management consulting?
With its headquarters in Boston, Massachusetts, Boston Consulting Group (BCG) is an American global management consulting firm that was established in 1963. Along with Bain & Company and McKinsey & Company, it is one of the “Big Three,” the three largest management consulting firms in the world by revenue.