Strategy Consulting

Strategy consulting, often referred to as strategy consultancy, strategic advisory or boardroom consulting, is regarded by the majority of consultants as the most 'high-end' and prestigious segment within the professional services industry. A strategy is defined as “a plan with the aim of realising long-term goals," and organisations regularly engage with strategy consultants for support in developing and implementing business strategies. The strategy consulting domain focuses on supporting private sector clients with the development of corporate, organisational or functional strategies and helping public sector organisations and institutions with economic policy.

 

Strategy consulting market

the market for strategic consulting services was estimated to be worth $26.5 billion. In the aftermath of the crisis years, global growth was sluggish, slowed primarily by the recovering US and European markets that jointly represent a large majority of the global consulting industry. From 2014 onwards, the strategy consulting industry picked up, with growth rates of 4.7% in 2015 and 5.8% in 2016, taking the market to just over $30 billion in 2016. Strategy consulting takes around a 12% cut of the overall industry, making it similar in size to HR consulting.

Strategy consulting services

The market for strategy consulting services consists of eight disciplines: Corporate Strategy, Business Model Transformation, Economic Policy, Mergers & Acquisitions, Organisational Strategy, Functional Strategy, Strategy & Operations, and Digital Strategy.


What does a strategy consutant do?

Strategy consultants are hired by clients to support them with strategic decision making, which includes the development of strategy and, to an extent, also the execution of strategic plans. As the responsibility for strategic decision making falls under the mandate of CxO's and (senior) management, strategy consultants typically work for executives and high-ranked managers. By doing so, strategic advisors can help companies with the definition of their vision, mission and strategy, support them with market entry into a new market or with a shift towards a new business model. Governments and institutions are supported with economic policy setting, while in the case of mergers & acquisitions, strategy consultants typically support the strategic activities of the M&A process such as setting the M&A strategy, executing the commercial due diligence, creating the merger business case and/or designing the integration roadmap.

Strategy consultancy firms

Across the globe, there are thousands of consulting firms that provide strategy consulting services. Yet, the number of firms that have a global reach and reputation is limited to a much smaller number active in the top of the market. Analysts typically distinguish between two types of firms: 'pure-play' strategy consulting firms (i.e. focus exclusively on strategy & operations) and 'strategy practices' of multi-service firms (a service line of a generalist consulting firm that provides strategy services).


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Strategy consulting services

 

The market for strategy consulting services consists of eight disciplines: Corporate Strategy, Business Model Transformation, Economic Policy, Mergers & Acquisitions, Organisational Strategy, Functional Strategy, Strategy & Operations, and Digital Strategy.

 

Corporate strategy, also referred to as strategic manement, involves the formulation of enterprise-wide and business unit strategies and goals. Strategy consultants are regularly brought in to support, among others, the design of vision and mission statements, the development of strategic plans, and the setup of implementation roadmaps (which outline activities and resources required to implement the plans). Common examples of strategic advisory projects include the assessment of strategic options, support of business planning processes, and the development of growth agenda’s such as market entry strategies (when companies want to enter new regions or launch new products).

 

Similar to corporate strategy, Business Model Transformation (BMI) also focuses on the design and development of future-proof strategies, with the key difference being that it spans fundamental changes in how business is conducted, often triggered by major changes in the external environment. Business Model Transformation, in addition, has a wider span than strategy, looking at a range of organisational and operational elements and how they interact to achieve a common goal; such as value propositions, customer segments, cost structures and organisational structures. Due to the disruptive nature of technology in recent years, consultants who support BMI engagements in many cases work at the intersection of digital design and IT strategy.

 

Management Consultant

Management consultants, also known as business consultants or organisational advisors in practice, are consultants who focus on all sorts of organisational concerns, from strategy to a variety of elements within management. In the methodology upheld by Kennedy as well as Consultancy.

Operations Consultant

Operations consultants are consultants who help clients improve the performance of their operations. Consultancy activities in this segment vary from advisory services to hands-on implementation support for both primary functions (e.g. Sales, Marketing, Production, etc.) as well as secondary functions (e.g. Finance, HR, Supply Chain, ICT, Legal, etc.).

Financial Advisory Consultant

Consultants who operate in the Financial Advisory segment generally work on questions that address financial capabilities, and, in many cases, also the analytical capabilities within an organisation.

IT Consultant

Technology consultants, also known as IT, ICT, or digital consultants, focus on helping clients with the development and application of Information Technology (IT) within their organisation.

Why consulting?

 

Many young professionals with a business management or economic background increasingly choose for a job in the consultancy branch after graduation. Annually, thousands of experienced professionals also choose to enter the consultancy branch, or to enter by working for a firm as an experienced consultant or independent advisor. What causes the trend?

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FAQs strategy consultant

As the finance landscape continues to change, organizations large and small require the input of professional consultants who can help them make key decisions about their operations and profitability. Strategy consultants assist their clients by stepping into complex situations and developing cogent, coherent plans of action that help companies meet their defined goals.

Generally, each management and strategy consultant will have areas of specialization or comparative strengths. Some consultants specialize in particular industries, markets or strategic issues.

Strategy consulting is a niche that provides strategic advice and guidance to organizations on the best way to achieve a goal. It involves analyzing the issue at hand through research, identifying present and future opportunities and challenges, and then making recommendations.

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