Management Consulting & Strategy Consulting: The 7 Key Differences

What is Management Consulting?

Management consulting is a type of professional service that helps organizations improve their performance. Management consultants work with clients to identify and solve problems, develop strategies, and implement change.

Management consulting can be divided into two main types:

• General management consulting: This type of consulting focuses on improving the overall performance of an organization. General management consultants can help clients with a wide range of issues, such as:
  • Developing and implementing strategic plans
  • Improving operational efficiency
  • Increasing sales and profitability
  • Managing risk
• Specialized management consulting: This type of consulting focuses on a specific area of expertise, such as:
  • Financial management
  • Human resources management
  • Information technology management
  • Marketing management

What is Strategy Consulting?

Strategy consulting is a type of management consulting that focuses on helping organizations develop and implement strategies to achieve their long-term goals. Strategy consultants work with clients to:

• Develop a strategic vision: This involves defining the organization's mission, vision, and values, as well as identifying its key strengths and weaknesses.
• Create a strategic plan: This involves developing a roadmap for how the organization will achieve its goals. The strategic plan should include specific objectives, timelines, and budgets.
• Implement the strategic plan: This involves working with the organization to put the strategic plan into action. Strategy consultants can help with everything from project management to change management.

7 Key Differences Between Management Consulting and Strategy Consulting

The following are the seven key differences between management consulting and strategy consulting:

1. Focus: Management consulting focuses on improving the overall performance of an organization, while strategy consulting focuses on helping organizations develop and implement strategies to achieve their long-term goals.
2. Scope: Management consulting can cover a wide range of issues, while strategy consulting is typically more focused on high-level issues such as strategic planning and organizational change.
3. Methodology: Management consultants typically use a problem-solving approach, while strategy consultants typically use a more analytical approach.
4. Clients: Management consultants typically work with a wide range of clients, from small businesses to large corporations. Strategy consultants typically work with large corporations and government agencies.
5. Fees: Management consulting fees are typically based on the time and effort involved, while strategy consulting fees are typically based on the value of the services provided.
6. Career path: Management consultants typically have a background in business or management, while strategy consultants typically have a background in economics, finance, or strategy.
7. Exit opportunities: Management consultants can exit into a variety of roles, such as general management, operations management, and consulting. Strategy consultants typically exit into roles in corporate strategy, investment banking, and private equity.

Which Type of Consulting is Right for You?

The type of consulting that is right for you depends on your career goals and interests. If you are interested in working on a wide range of issues and helping organizations improve their overall performance, then management consulting may be a good fit for you. If you are interested in working on high-level issues and helping organizations develop and implement strategies to achieve their long-term goals, then strategy consulting may be a good fit for you.

Conclusion

Management consulting and strategy consulting are two different types of professional services that can help organizations improve their performance. The type of consulting that is right for you depends on your career goals and interests.

Additional Resources

• The Management Consulting Association
• The Strategic Management Society
• The Association for Consulting Strategy and Management