Explainer
Management consulting is paid, independent help to solve a business problem or deliver a change. Here is what management consultants actually do, the main types of firm, how they charge and how to get value from them.
By Christopher Fagan, Managing Partner, PEF Consulting Partners
Management consulting is the business of helping organisations improve performance, solve problems and deliver change, using people from outside who bring experience, method and an independent view. Consultants are hired for a defined piece of work, then leave.
| Type | Typical focus | What to expect |
|---|---|---|
| Strategy houses | Corporate strategy, M&A and growth | Small senior teams and high day rates |
| The Big Four and other large firms | Advisory linked to audit, technology and transformation at scale | Broad capability, large teams and set methods |
| Technology consultancies and integrators | Implementing systems | Delivery capacity, often tied to software partnerships |
| Boutique and independent consultancies | Specialist areas such as ERP, energy or programme recovery | Senior practitioners doing the work, often lower cost and vendor neutral |
Most charge by the day, by a fixed fee for a defined scope, or occasionally with fees linked to outcomes. UK day rates range from a few hundred pounds for junior consultants to several thousand for partners at the largest firms. Fixed fees work well when the scope is clear. Whatever the model, ask who will actually do the work and what you will have at the end. You can see how we price our own work.
Related reading: independent consultancy or a big firm, how to choose a transformation partner, business transformation consultancy.
Gathers and analyses data, interviews people, runs workshops, writes recommendations and plans, and on delivery work leads or supports the teams making the change.
Strategy consulting is the part of management consulting that focuses on direction: markets, growth, portfolio and M&A. Management consulting also covers operations, technology, people and delivery.
From a few hundred pounds a day for junior staff to several thousand for senior partners at large firms. Independent and boutique firms usually sit in between, with senior people doing the work.
When the problem is clear, the skills are missing in house and the outcome is worth more than the fee, yes. When the brief is vague or the consultant is there to deliver a decision already made, rarely.
If you are weighing up outside help, a short conversation about the outcome you need is the best place to start, and it costs nothing.