What does a consultant actually do?

Summary

This engaging exploration of management consulting highlights the enigmatic roles consultants play in major firms like BCG, Bain, and McKinsey. Despite their elite status and significant fees, the general public remains largely unaware of their day-to-day activities. Through interviews and a humorous case study, the video reveals a common consultant routine filled with meetings, buzzwords, and vague recommendations, while also addressing the ethical dilemmas faced by the industry. Ultimately, it questions the true value consultants bring to organizations, contrasting their lucrative careers with the potential consequences of their work on society.

Takeaways

• 😀 Management consulting is an exclusive field with firms like BCG, Bain, McKinsey, and Deloitte accepting only 1.5% of applicants.
• 🤔 Many people are unsure about the actual work of consultants, often leading to misconceptions and confusion.
• 💼 Consultants primarily recommend ways to improve organizational efficiency, which can be perceived as mundane.
• 🗣️ A former consultant highlighted that a significant part of their job involves attending and preparing for meetings.
• 💰 Consultants can influence major business decisions, including workforce reductions, by providing valuable insights.
• 📚 The authors of 'When McKinsey Comes to Town' characterized consultants as 'brains for hire,' emphasizing their role in corporate strategies.
• 🔍 The consulting industry maintains a culture of secrecy, often not disclosing clients or project details.
• 🌍 Despite high salaries and travel opportunities, consulting roles can sometimes feel directionless and ambiguous.
• 🎓 Many consultants are highly educated, often coming from prestigious institutions, which adds to the elitism in the field.
• 💬 Consulting is often filled with jargon and buzzwords, which can obscure the actual value and contributions of the work.

Q & A

What is the main focus of the video script?

The script investigates the role and activities of management consultants, specifically addressing public misconceptions and revealing the nature of their work.

What firms are considered the 'Big Four' in management consulting?

The 'Big Four' management consulting firms mentioned are BCG, Bain, McKinsey, and Deloitte.

How selective are the top management consulting firms?

These firms receive around 200,000 applications per year but accept only about 1.5% of candidates, making them more selective than prestigious universities like Harvard and Princeton.

What common misconception about consultants does the script highlight?

The script highlights that many people are unsure about what consultants actually do, often perceiving their work as vague or lacking substance.

What did Tyler Cook reveal about a typical consultant's daily activities?

Tyler Cook indicated that a significant part of a consultant's job involves attending and preparing for meetings, which he found to be more mundane than expected.

What is the approximate cost for hiring consulting teams for a project?

According to Tyler, hiring consulting teams for a six-week project can cost between $10 to $15 million.

How do consulting firms maintain secrecy about their work?

Consulting firms typically instruct their employees to avoid disclosing client names or payment details, contributing to the industry's opaque nature.

What phrase do consulting firms use to attract employees, and what does it imply?

Consulting firms often refer to potential hires as 'insecure overachievers,' implying that they attract high-performing individuals who are seeking validation and prestige.

What ethical concerns are raised regarding consultants' partnerships with certain industries?

The script raises ethical concerns about consulting firms working with controversial industries, such as tobacco and pharmaceuticals, and questions the societal impact of their recommendations.

What conclusion does the script reach about the consulting profession?

The conclusion suggests that while management consulting can be lucrative and provide networking opportunities, it is essential to critically evaluate its influence on corporate practices and ethical considerations.