Exploring market trends and career advice in Strategy & Consulting
At the heart of the Strategy & Consulting team’s success are consultants who are true experts in their sectors. Brand Manager, Becca Boulton, recently sat down with the team to delve into the latest trends shaping their markets.
[You can ready part one of the interview here].
From the resurgence of Private Equity investments to the evolving dynamics in the APAC region, our consultants share their valuable perspectives on the current landscape. Additionally, they offer indispensable advice for professionals seeking new opportunities in the strategy and consulting field. Explore their insights and recommendations to help you thrive in this competitive market.
Market trends
There is a clear correlation between growth of the Strategy Consulting segment of the Management consulting market, with growth and investment from Private Equity (PE). The last 18 months have been a challenge for most prestigious strategy consulting brands and business units, with revenues dropping and client base narrowing. However, in the last months, we have seen a re-activation of PE and a clear interest in the global market opportunities, driving a fresh wave of investment and interest in acquisition and value creation from assets.
This is good news for Strategy Consultancies, and indeed the green shoots of growth ambition are starting to show. However, the landscape has changed somewhat as all consultancies are looking at the internal operating model, seeking ways to run a more efficient team through the use of AI and deeper analytical capabilities to support a high-performance culture that isn't over indexed on the bottom line support should the market take another negative turn.
The APAC market is of naturally quite broad / large therefore different geographies are seeing different trends. ANZ saw a relatively quiet first half of 2024 but the increase in Private Equity interest in cities like Sydney and Melbourne is increasing activity in the market.
Southeast Asia has had a consistent market for the last 12-18 months with Management Consultancies shifting away from the 'old' model that Singapore is the main hub, but instead now opting to grow other regional offices such as Kuala Lumpur, Bangkok, Jakarta and Ho Chi Minh.
Northern Asia can be considered a tale of two halves; the geo-political situation in China / Hong Kong sees a lot of USA headquartered Management Consultancies shrink down their operations in this area. Whereas this focus has shifted more towards surrounding countries including Japan and South Korea.
DEI is a key challenge in the consulting industry. Most of the firms are struggling to attract and retain top female talent at Partner/ Senior Partner level and this is often due to the difficulties of navigating in a complex environment where the work-life ratio and pressure remains higher than in the corporate world. It is encouraging to see though that some consultancies are putting a lot of initiatives through to address this key challenge and are already seeing the results.
Given current economic conditions we are seeing a focus on bringing in proven revenue generators at the Partner and Director grades. This trend extends to team hires and acquisitions. In addition, some firms are using current market conditions to hoover up market share from their competitors, Deloitte and A&M are a good example of this. Boutiques and New Market Entrants firms with lower costs and smaller footprints looking to hire.
Despite the hiring slowdown over the past 18 months, there is growing optimism in the market with anticipated growth. Consulting firms are reviewing their hiring plans for 2024/2025 to stay competitive and there is a strong emphasis on hiring exceptional senior professionals who can bring their teams, reducing the typical ramp-up period. Additionally, there's a surge in M&A activity, with PE funds, investors, and consulting firms acquiring majority stakes in competitors.
Many of the searches we've been mandated with recently have been focused on either DEI hiring, with a specific need for more female Partners within the industry; or on Value Creation topics to extend delivery of initial strategic consulting into implementation phases.
The challenge with both is that demand outstrips supply, the individuals meeting the requirements of these searches are regularly approached by competitor consultancies and therefore would need a compelling reason to move. We have extensive knowledge of the market and understand the differences in career paths and culture at all of the consultancies, so are able to act as Career Advisors to these highly sought after candidates, to allow them to make an informed decision on whether a move to a competitor would be beneficial to them.
Firms with primarily private equity clients have shifted focus to providing performance improvement / value creation / corporate finance engagements for the PE’s portfolio of firms.
Big consulting has continued to be slower, with layoffs made in H1 this year. Boutique / mid-market consulting firms have continued to perform strongly, sometimes operating at a lower price point. Firms historically more focused on cost have also been able to grow their strategy arms, taking advantage of the slow-down in hiring across MBBs / Big 4s.
Industries performing well include Energy, Federal, Manufacturing/Industrials with a focus on continuous revenue. Technology has also seen a bounce back in the last few months.
Advice to those looking for a new role in the current market
Don't jump at the first opportunity. Ensure you're taking the right steps to ensure the decision is the right one for you.
Chances are your next role will come through someone you know. Reach out to specialist recruiters and your connections who would be willing to sponsor you through a process.
I have three key pieces of advice:
Focus on culture. It's the people that make a consultancy brilliant so never compromise on finding likeminded and motivated colleagues. A strong culture equals better collaboration which results in maximum success.
Make sure you stress test a business model in the interview process. Who will commit to supporting you on entry? What are they willing to commit to? Do you have a 100 day plan with shared commitments and accountability? Having this laid out generally means a softer and more successful landing.
Be open minded. A move to a competitor may not be your start point or preference, however statistically the majority of Partners who are open to a move, end up landing in a competitor, so that says something. Make sure you partner with a search firm who really understands the culture and people of the competitor landscape. Let them match you to the firms that make sense and offer something unique or different. You likely won’t regret it!
Scott Galloway's Diary of a CEO episode showcases this nicely. When Google advertise a Product Manager role, they get over 200 applicants, interview 20, and 90% of the time, hire someone who has a sponsor in the business already. NETWORK!
The best moves are sometimes the least expected. When leaders are looking for a new role, particularly in the consulting landscape, it's crucial to stay open-minded. It's easy to get caught up in preconceived notions and overlook unexpected opportunities. By keeping an open mind and being receptive to unforeseen opportunities, you may find that the best moves in your career are those you hadn't initially considered.
Have conversations even if you are not seeking a new role. Discussions help to bring new ideas to the table, understand how your competitors operate, where they are selling work, help you to understand your market value.
For those looking for a new role, executive search firms such as InX have a birds-eye view and a true finger on the pulse and can provide an unmatched perspective on the market. Clients are seeking new ways of increasing revenues more than ever and so if you can provide a clear and obvious way of doing so, you will be seen as a valuable resource to the prospective employer.
It is important to evaluate why you’re looking for a new role:
Are you looking to grow in a larger role?
Is the decision financial?
Are you looking to join a more established brand?
Are you looking to join a challenger and have more space to business develop?
Once we have a view on that we can advise you on whether the best move for you is external or even internal.
Be open-minded to possibilities. The most challenging and rewarding career paths are often the less-trodden paths. We often speak to people who see an upgrade in brand as the promotion, whereas a smaller lesser-known brand may afford you the opportunity to build something from scratch and develop your own service offering, team, client-base and reputation.
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Whether you’re looking to strengthen your leadership or you’re a senior professional looking to make a real difference for an organisation, get in touch with our Strategy & Consulting team to find out we can help you.