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Posts tagged ‘Middle East’

McKinsey resources or financial services sector?

“Dear Michael,

We have been in contact a few times in the past and you have always provided useful advice. I used the mining version of SAAMC and it helped me on my first few business development roles in a small mining company in Australia. I have an interest in mining and resources and want to consider joining McKinsey specializing in this work.

I have both a masters’ degree in business administration and undergraduate degree in finance from highly regarded Australian schools – I have attached my résumé. Could you please offer some guidance for me on this?

I want to know if this is a sector in which I should specialize, in which country I should focus, and what would be my exit options in about 5 to 10 years. I want to know if this is a sector I could do impactful work. The other option is to follow the advice of all my friends who insist I should make the jump now and move to banking where I have some experience interning at a bulge-bracket bank.

JK” Read more

Oil & Gas case interview candidates aggressively poached

In just 2 weeks, Firmsconsulting has seen six clients withdraw from the interview process to accept lucrative energy industry offers. Three had written offers in hand from BCG, Bain and McKinsey. The geographical scope of the offers, range of degrees affected and that such poaching has happened since at least June 2011 warranted us discussing this trend in more detail.

For context, since mid-2011, a client has withdrawn from our program every single month to accept an energy industry offer. That our clients span over 60 countries and the trend keeps increasing indicates the energy sector is far from its peak in hiring. All degrees have been positively affected, though MBA’s with heavy construction and/or energy experience and PhD’s with energy backgrounds are the dominant group.

Consulting firms are therefore even more desperate to find oil and gas talent since they are losing so many consultants, candidates in the interview process and interested profiles. Read more

Is this the decline of BCG?

Murat* is a young, ambitious and disciplined Rotman MBA candidate. We met at Oliver & Bonacini’s on the corner of Yonge Street on an unusually warm recent Friday in mid-March. The son of an Egyptian store owner and the first in his family to graduate from college, he exhibits the qualities of someone who needs to protect his progress, for the sake of his family. He orders the smallest and cheapest item on the menu, and seemed a little surprised by the prices, even though it was our treat. Read more

Observations from the frontlines: foreign students recruiting for BBM face unusual troubles…

As the dust begins to settle on the 1st, 2nd, 3rd and 4th rounds of interviews in Canada, Australia and parts of Europe, we have noticed some very worrying trends about the manner in which foreign students are treated. Read more

What happens when we fail to place a candidate at BCG, Bain or McKinsey?

We were asked this question today by someone applying to the case coaching program. I think the candidate asked the question assuming we would brush it off with a generic answer. Let me tell you that we take this very seriously. I am going to dedicate an entire post to this. Sure, it is assumed a training program should not tell you about candidates they did not place. However, let’s be honest, any intelligent person knows a program like us cannot be 100% successful. Trying to create such an impression is misleading. So, we are going to discuss that question directly. Read more

Unsung Icon of Management Consulting…Booz & Co.

In the world of management consulting a few firms gain the majority of attention. They suck the oxygen out of the media placement leaving little room for some other giants to get their fair play. Beyond BBM, a few firms stand out which deserve far greater attention than they now receive, far greater eminence than their brands have, and far greater recognition for their dominance in selected fields. AT Kearney is a star in the operations consulting space. Roland Berger is the fast-rising general consulting firm. And then there is Booz & Company. Read more

Can you make the transition from the military to management consulting?

The West Point Class of 2008 toss their hats a...

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Meet Eliot, an officer in the US military with 6 years experience including combat experience in Iraq, leading a combat platoon and economic planning team, and a subsequent deployment to the US Central Command where he was responsible for logistical planning for Middle Eastern supply lines. Aged 30, he has risen rapidly through the army and completed an undergraduate degree from a top private US university and two masters in engineering and economics from the same institute. Although up for a promotion soon, he now wants to make a transition to consulting. What should he do?

Two wars in Asia have made this profile and career decision point not too uncommon. We regularly receive requests from ambitious soldiers to review their profile and determine the best route for them to follow. What follows is a typical conversation we have and what we search for in the candidate before advising them. The key takeout is that not all profiles are the same, so it is almost impossible to give proper feedback from simply analysing a resume. We have to speak to the candidate.

Walk me through your resume and key accomplishments?

For whatever reason, we find that candidates do a rather poor job at reflecting their accomplishments in their resumes. This is more so for military profiles. We invariably find that candidate’s true accomplishments are usually better than those they have captured. That is usually because a candidate is trying to put down what he thinks the consulting firm is looking for versus what consulting firms are really looking for. Consulting firms are looking for evidence of leadership, analytical ability and strong evidence of a track record of excellence as well as the intellectual capability to manage the course load. Excellent career progression and significant milestones are also critical. However, most candidates capture these points in boring generalizations which are non-specific and lack any important detail whatsoever. A one page resume has so little room that every word must be carefully considered before it is inserted.

Why management consulting versus industry or investment banking?

Just about anyone who thinks they are smart believes they should be in management consulting. This rationale is not good enough. The candidate needs to show they really understand why they want to be in consulting and why they do not want to be in their current role or in another role. This shows us how much planning a candidate has done. Management consulting is about critical thinking and while the candidate may not have all the skills to have applied this process to their own careers, we would at least like to see the attempt. As mentioned many times before, candidates with a glamour view on consulting almost never enter our programme. We are looking for people who are serious about helping themselves grow and helping clients make tough choices.

What is your regional flexibility?

This is the key glamour question. Candidates who mention they are targeting London, New York, Paris or Milan set off so many warning bells I need to use ear plugs to block the warnings. The bottom-line is that the candidates must have very good reasons for choosing these offices. Why have their backgrounds, areas of interest and planned careers post-consulting made them chose these offices? Does their rationale make sense? Can they explain why they want to join these offices versus the Cleveland office, for example?

Would you prefer McKinsey, Bain or BCG?

Again, this is a test to see if they really understand the differences between the firms and also if they have at least thought about it. While most people would unlikely have excellent answers to these questions, we at least want to see they have thought about it. That is crucial. We can teach you the case approach and coach you on fit interviews, but we cannot teach you inquisitiveness.

How do you prefer communicating?

Communication is a major part of consulting. Polished consultants are skilled communicators. In this question we are really seeking self-awareness. Is the candidate aware of their communication skills? For example, is there a difference between the way they actually communicate and their self-assessment? We tend to find that the majority of candidates need lots of help in how to communicate. Through this process, we want to see just how much help is needed and if we can provide that help.

Have you done any preparation for the case interviews?

Actually, we prefer people who have done no training. It is a lot easier to teach you the correct approach than to “un teach” you bad habits. Yet, we play this by ear. If you have done preparation, we may do a mini-case to see how you fare. If you have the correct basic skills then that would count in your favour. There is no right answer here.

What is your plan in the military assuming you did not get into any firm?

Far too many people see consulting as a way out to kick-start a stalled career. If you have reached a ceiling in your career and see consulting as a “nice” way onto another career highway, you need to think very carefully if the reasons why your existing career has stalled will lead to a rejection at the consulting firms. If so, be careful. The time, effort and money to prepare for consulting interviews are not insignificant. Ensure you are realistic in your reasons for making the career switch.

Using these seven questions, we can easily assess the ability of a military candidate to succeed in our coaching programme and ultimately succeed in his/her interviews. Military candidates ultimately can make outstanding consultants if they are aware of their strengths and can harness these in interviews. There mix of operational and planning, if they have this, experiences are invaluable. If you have such a background, do not think you will be an unlikely fit at a top consulting firm. Each person is different and you may very well have what it takes.

 

Building a new Middle-Eastern management consulting firm to rival Booz…or is it McKinsey

Middle east map

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We spent Saturday holed up in a beautiful Victorian-themed hotel. We were helping to develop the business model and business strategy for a new management consulting firm. The founders, eight ex-partners from BCG and McKinsey, had left their previous employers over a 12 month period. This delayed departure was done to make sure they did not create the impression of a mad rush to the door to create a new firm. In reality, they could be a profound competitor since they were tightly focused on a region and specialised in the financial services, telecoms and healthcare sectors. Moreover, they all had worked in the Middle East and would be able to create a strong franchise in this area.

The session was an all-day event from 8am to 8pm to debate and discuss the focus of their new business. The questions they asked of themselves are very enlightening. All consulting firms should be doing the same, especially newer consulting firms trying to take on the established giants.

  • Will we be a value or values based partnership?
    • Will we promote and reward people on sales alone or will our values be our most important filter for recognition?
  • Why did we create this business?
    • Was it driven by personal financial reasons or did we see a real gap in the market not satisfied by incumbents?
  • What do we want to be known for?
    • How would we want clients and competitors to describe us?
  • What are our long-term goals?
    • Are we simply trying to earn a living or are we aiming to build a firm which outlasts us?
  • Are we going to choose an area to own or simply position ourselves to exploit a high-margin and undeserved market?
    • If we think we can do telecom’s operations consulting better than AT Kearney, are we prepared to take them on in this space?
  • What sectors will we focus on?
    • We have eight partners and 12 employees. Therefore, what is the logical number of sectors we can focus upon?
  • What geographies will we cover?
    • Should we be based out of Dubai, Abu Dhabi, Riyadh or Istanbul?
    • Should we have more than one office?
  • What kind of work will we do?
    • Will it be strategy, operations and implementation?
    • Where is there a logical gap that we can cover?
    • Do we have the resources to effectively cover more than one sector?
  • What is our financial model?
    • Do we do success based fees?
    • Do we have annuity-income products?

We have sat in business planning sessions with most of the major firms and many consulting start-ups. Very, very few have such an honest and clear discussion. The nine questions discussed over the day, struck to the core of management consulting and allowed the company to honestly decide where they wanted to operate and why they have chosen this path. They were also very honest with themselves. They had been around the block long enough to know that producing biased but pleasing answers would hurt them in the long term. Every year, there are many, many consulting companies founded but very few survive and even fewer make a meaningful contribution to clients.

Below I have summarised the decisions taken:

  • Will we be a value or values based partnership?
    • Value-based. Significant sales are only rewarded if the right type of work is done for the right reason
  • Why did we create this business?
    • Partly financial, but also a need to serve underserved regions like Syria, Jordan and Iran
  • What do we want to be known for?
    • Helping clients with some of their toughest problems.
  • What are our long-term goals?
    • Build a firm which outlasts us. We will not consider growth by acquisition.
  • Are we going to choose an area to own or simply position ourselves to exploit a high-margin and undeserved market?
    • Stake out an area.
  • What sectors will we focus on?
    • We will start with healthcare, telecoms and financial services, but remain open to all sectors since we are general management consultants.
  • What geographies will we cover?
    • We will initially be based in Istanbul
    • An interesting decision since Turkey is not officially part of the Middle East and the cultures are different.
  • What kind of work will we do?
    • Only advisory work
  • What is our financial model?
    • No annuity income
    • No success-fee
    • Flat rate

These guys also realised that they will be at a serious disadvantage within 2 to 3 years. All the intellectual property and ideas which they bring with them has a short shelf-life. After a few years they would lose traction in the market. Therefore, they needed a means to produce fresh ideas. Going forward, they split the workload into the following activities:

  • Client Management – Everyone’s responsibility but two partners assigned to manage this.
  • Developing Ideas, Themes and Intellectual Property – Three partners assigned to develop this capability.
  • Operating Details – One partner assigned to set up the office and other logistical arrangements.
  • Operating Model – One partner assignment to coordinate all the moving parts.
  • Public Sector – One partner assigned to manage public sector relationships.

It is really telling that 3 partners have been assigned to develop and coordinate new ideas. Most firms would have assigned the majority of senior time to sales. This split indicates they are far more worried about the quality of work, than the volume of work.

They will be worth watching over the next few years.

[To maintain our prized independence, no member of Firmsconsulting.com or Lillilooloo.com maintains a formal relationship with the consulting start-up. We do not stand to benefit in any way from this posting and declined all forms of payment to take part in the planning session. Although, we graciously accepted the dinner invitation of Samboosak and Lamb Shishlik.]

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