An update – the first 20 people to purchase the modeling course and email me the receipt will get a free copy of The Consulting Bible, 2nd edition. If you’ve already bought it, I’ll provide you all the networking materials that will be part of the Toolkit. To all readers – thanks for your patience. There will be a major content injection starting Monday

Most readers of this site have heard of Mergers and Inquisitions (M&I). In fact, many of you probably discovered Management Consulted through it – that’s how big its become.

Why 100,000 readers a month can’t all be wrong

Brian’s the driving force behind M&I, a former investment banker, a fellow Stanford alum, and a good friend.

Since its inception, M&I has become the most informative source on recruiting for and working in banking. Not only does he provide an insider’s perspective on the industry, he clearly knows what he’s talking about. After all, not everyone can explain private equity recruiting in 2,550 words.

Why you should head over to Mergers and Inquisitions after reading

If you’re at all interested in finance, you’ll understand that modeling skills are a critical component of breaking into and surviving the job. To a lesser extent, those same skills (especially the resulting familiarity with Excel) are useful for consultants.

It’s an impossible skill to learn by yourself. You need someone to teach you, and then you actually need to get hands-on experience.

There are many financial modeling courses out there. Wall Street Prep. Training The Street. They’re expensive, boring, and – having been through one myself – you’ll forget what you’ve learned before the day’s over.

Brian’s just developed a training program that will make them all very, very nervous.

It’s not public yet – the official release date is set for April 20. But I’ve had the opportunity to examine the course. I feel guilty saying this, but I was just the slightest bit jealous that he’s built something this sophisticated.

Without giving away too much, the product uses a series of videos to teach critical financial concepts in Excel from the ground up. Brian shows you how to build models, step-by-step, and he knows what he’s doing. The actual Excel files are included for viewers to follow along with each step, and there’s a support system for getting every conceivable question that you have answered.

It’s clearly helpful if you want to break into finance. But it’s also helpful for prospective consultants – because let’s face it, you can’t get very far in management consulting without a comfortable understanding of financial concepts.

Have you heard consultants complaining about their 90-hour weeks? Those are the same consultants that have no idea how to walkthrough a DCF. I guarantee it.

Run, don’t walk, over to M&I and view the videos – you’ll understand

To prepare for the launch, Brian has created a series of videos explaining everything – how it all started, product details, and more. Sign up for the announcement list to access the videos. It’s free and you can unsubscribe at any time.

Click here to check out a demonstration video.

Just a few more days before it launches on April 20. Sign up that week to get a discount – pricing details will be announced tomorrow.

I’ve never promoted a third-party product until today. I wouldn’t be doing so if I didn’t think it’d be worth 100% of your time, and 1000% of the price you’ll pay.

Hint: it’s absurdly low and I’ve told him that repeatedly but lucky for you, the guy won’t listen.

Head over there now. You’ll become a WACC wizard in no time.

Coming soon: What separates great from mediocre consultants; Perks of the management consulting lifestyle

Stay connected:

I’ve briefly discussed consulting exit options before.

This article is part 1 of 2 that will “deep dive” into the topic (with a precise estimate of the percentage pursuing each).

I considered bumming on a beach in Koh Samui when I left consulting, but for more ambitious folk, here are the main paths:

Private equity

Percentage: 12%

Mergers and Inquisitions briefly covers this topic in its private equity recruiting post. Consultants are well-suited for private equity jobs – but they need to pick their spots.

• Most consultants exit to middle-market PE firms that are operationally-focused on portfolio companies and leverage consulting skillsets well
• Most consultants exit to PE firms with a tradition of hiring consultants. Golden Gate Capital is one example. Others include Audax and Capstone (the “consulting arm” of KKR)
• Larger shops like Carlyle and TPG prefer consultants with corporate finance project work or prior banking experience (eg, a summer internship at Morgan Stanley)

What are the benefits of leaving consulting for private equity? PE offers better pay, great prestige, and an opportunity to work on industry-shaping deals.

If you want to work in PE and have the opportunity, take it now. It’s easier to enter the industry before business school than after

What are the best consulting firms to enter private equity? Target the big guys (McKBain Group) and those with a financial sector focus (eg, Oliver Wyman).

Hedge funds

Percentage: 7%

Like private equity recruiting, consultants can break into the hedge fund industry but opportunities are limited. Focus on funds where consulting skillsets are valued. For example, equity long-short and macroeconomic funds emphasize market research and operational due diligence in investments. Specialized funds (such as mezzanine debt) would not be a good fit.

What are the benefits of leaving consulting for a hedge fund? Like private equity, hedge funds offer better pay and industry-changing opportunities. This is another industry where entering before business school is easier than after.

Asset management and equity research

Percentage: 9%

Business consulting skillsets are a great fit for jobs in asset management and equity research. Work for the best consulting firms and target modeling-heavy projects.

With all consulting exit options into finance, your path is made easier by taking a finance job to begin with. Investment banking with prestigious M&A groups offers a better shot at strong private equity and hedge fund exits

Entrepreneurship

Percentage: 16%

Consulting provides a strong platform for entrepreneurs – you’re exposed to multiple industries, complex business problems, and a wide network of business-savvy people. I took this path upon leaving McKinsey.

There are 2 options:

• Start a company – this is common across tenures. In fact, Bain was started by a former BCG partner! A colleague of mine is CEO of GiveReal, if anyone wants to send me a drink
• Join a startup – consulting firms are full of entrepreneurial people, and usually have strong startup communities helpful for recruiting

That’s it for now. Expect the concluding part 2 on Consulting Exit Opportunities tomorrow (topics include graduate school, Fortune 500, and more).

This blog has been growing my leaps and bounds. I’ve really appreciated meeting readers and helping people in their quest to break into the consulting industry.

For new readers, consider subscribing to my RSS. It’s the most convenient way to receive blog updates – and expect a slew of content in the next few days

Here are my 5 favorite posts since starting Management Consulted

• Management Consulting versus Investment Banking – a time-honored question for undergraduate and MBA students across the world. I break it down into the 5 primary dimensions upon which these careers differ
• Day in the life of a management consultant – the day described here is one of the easier ones you’ll face, but provides a good view of client relations, team dynamics, and a typical day’s ebb and flow
• Life as a Consultant: An interview with a consultant from Booz Allen- one of my favorite interviews thus far, past ones have included McKinsey, ATK Shanghai, and Nortel. Booz guy does a great job discussing issues ranging from public sector consulting to the Booz recruiting process to career paths within the firm
• Overview of the management consulting recruiting process – ground zero for prospective consultants, this article gives a comprehensive view of each component in the typical recruiting cycle. While the perspective skews towards those currently in school, there are valuable insights regardless of your current position
• The Consulting Bible – no round-up of resources is complete without a plug for my in-depth interview guide. It’s not free, but there’s a 60-day return policy, plus free updates for life. My 2nd update will be coming in a few weeks!

Here’s a very useful case study primer, courtesy of Bill Blackwell and the Jesse Jones School of Management Consulting Club at Rice University. Pay particular attention to the case frameworks – there are a few very good ones

An interview with Social Geekette

I recently did an interview with Serena Wu on Social Geekette. We cover topics such as why I started Management Consulted, my experiences at McKinsey, and my views on blogging and the internet. Check it out here.

Questions for readers on a new project

After helping more than a hundred people with resumes and interview prep to break into consulting, the biggest issue I’ve noticed is that many people don’t have access to useful recruiting channels

It’s easy for Ivy Leaguers, for most MBA students, and for those already in consulting. But there’s a huge audience – experienced hires from different industries, those that go to non-target schools – that don’t have access to key resources like information sessions, campus recruiters, and the attention of consultants at their target firms.

The tentative title of this project is “How Anyone Can Break Into Management Consulting, Regardless Of Your School Or Current Job.”

It will be a comprehensive directory of consulting firms and emails/phone numbers for recruiters AND consultants at each firm. I plan to include tactics that people can use to get their resumes noticed and land interviews – such as actual call scripts and email templates. The focus is on boutique firms – because the big guys are much tougher to break into through non-traditional methods.

Having said that, I’d love to get reader feedback on 2 questions:

1. If you want to be a business consultant, what are your biggest concerns in breaking into the industry?
2. Have you entered consulting through non-traditional means, and if so, can you share your story? I’d love to feature some successful case studies

Thanks a million! I’d prefer if you contacted me directly with answers, particularly for the case studies. To incent responses, I’ll provide this book for free to anyone whose concerns, insights, and stories are incorporated (along with a free copy of The Consulting Bible, 2nd ed).

It’s an important question – and never more so than in today’s market. What’s next – when your resume doesn’t receive an interview; your first round doesn’t lead to a call-back; your final round receives a polite rejection?

In this post, I’ll highlight the key steps to take when this happens. Not a fun post – but a necessary one.

The advice applies equally to industries like investment banking

1. Follow-up the rejection and ask for feedback

This is priority numero uno. You’ll typically receive a rejection call after the interview. If the caller is one of your interviewers, politely ask him/her for feedback on your performance. Don’t come across as bitter, upset, or anyway emotional – simply interested in receiving feedback for future improvement. Example questions to ask are:

• “Mark – thanks for the call. Can I get your honest assessment of where I could’ve done better?”
• “Janice – I appreciate the response. It felt to me like I didn’t perform well in summarizing the cases. Were there other areas that were weaknesses?”

If the caller is not one of your interviewers – send an email (another time when business cards come in handy!) to schedule a quick call for post-interview feedback. 8 times out of 10, they’ll agree. The other 2 times, they’ll most likely respond directly to the email with some feedback. Here’s how you should phrase that email:

Hi Yoda, I appreciated the opportunity to interview with you last Thursday. Unfortunately, Danielle at HR just called to inform me that I won’t be receiving an offer. Could I give you a ring to get some post-interview feedback? It would help me in future interviews and to understand how I can improve through this process. Feel free to call me anytime (123-456-7890) or leave a number. Sincerely, George

Short and to the point.

Once you’ve received feedback, take it to heart! Practice will only help for future interviews or next year’s recruiting cycle.

If you don’t make it past the resume stage, don’t ask. It’s rare that they’ll give comments, and if they do it’ll be very generic. Here are some possible criteria for resume rejections

2. Focus on upcoming interviews

If this isn’t your last interview, prepare doubly hard for the next one. No surprise here. Internalize feedback about your shortcomings (“you were unstructured in your approach to the case…you had an insufficient understanding of the underlying business drivers…we didn’t feel that you were a good fit for our company culture”). One of the most common mistakes people make is to practice alone. Do it with another person – it’s 5x more valuable. Ask your family as a last resort.

3. Re-evaluate and broaden your pipeline

Steve Shu is on the mark here when he suggests “casting a wide net”. Applicants suffer from tunnel vision – the whole “Bain or Bust mentality”.

I’ll say it here: getting an offer to any of the top 50 management consulting firms is a major accomplishment

Apply to whatever is available and take interviews even if you wouldn’t accept the offer. Practice is key and options are valuable.

There simply isn’t a consulting firms database comparable to what exists in investment banking. I’m in the midst of building one; until then – Vault has a good starting point here.

As discussed previously, online consulting applications should be a last resort. Networking will be a key differentiator.

4. Explore alternatives such as grad school, finance, and entrepreneurship

Ultimately, you may still be rejected from the industry. But the game’s just started!

There are plenty of other options – ones you should’ve considered from day 1 anyway. If your heart is still set on management and strategy consulting, the best thing you can do is recruit for jobs with the best combination of brand recognition and skill-development. Suggested areas include finance (eg, investment banking and sales & trading) and the corporate track (eg, corporate management and product management). Not a particularly innovative list – but you get my point.

Consider grad school. Particularly if your undergraduate institution is not a “target school” – a top tier grad school can be a solid reset button. Masters programs are shorter and less selective than other alternatives. Important disclaimer – don’t get a masters degree just for recruiting purposes.

Finally, there’s entrepreneurship. I’m clearly a big fan, but startups won’t allow you to break back into consulting unless you consider post-graduate education. There’s no clear network and no channel into management consulting. It is a viable path, however, to venture capital.

5. Network, network, network

Never stop networking. It makes a difference, particularly in tough economic times when there are 10 equally qualified candidates for 2 positions. It comes down to who you know and how well. If you’re in school, network at information sessions, social mixers, business conferences. If you’re out of school, network through school alumni, colleagues past and present, family and friends. Online media (in particular, blogging and forum discussions) can be another great way to meet people with overlapping interests.

6. Prepare for next year

This particularly applies to summer internship applicants. Driving factors for resume rejection include low GPA, lack of leadership experiences and initiative taking, and lack of strong work experience. Work on them however you can. Interview rejection can include factors above, plus lack of preparation.

7. Finally, continue kicking butt in your current role

Don’t slack off. Many complaints that people have about their current jobs are fixable – insufficient responsibility, lack of challenging work, no upward movement. The solution to these topics belongs on another blog, but my advice is to take initiative wherever possible. This applies for current students as well. Your track record of promotions, driving impact, skills learned – will be critical when you try to land consulting jobs!

This is post #1 of my series on recruiting. Below, I’ll touch upon the main components of the consulting job search and what I believe are the key do’s and key don’ts. Feel free to post comments below or email me with any questions and followups. I want to thank my readers for making these first 2 weeks of blogging a very interesting time – blogging is a 2-way street where the writer learns as much as the readers.

I’ve also lined up my first “personalized consultations” (for one college student preparing for summer internships and one recent grad interested in switching industries) and will be posting updates on how these sessions go in the coming weeks

Now, on to RECRUITING. The key components are:

Note that each of these sections is worth a long post alone (similar to my first post, Management Consulting and the Consulting Industry 101). This is a Cliff Notes version for now

#1 Company presentations/mixers/information sessions

Far more common if you’re currently in school (undergraduate, MBA) where consulting firms ranging from Boston Consulting Group to Mercer HR to Kurt Salmon will swarm campuses, giving presentations, holding social mixers, etc in an effort to publicize their firm and identify “high-potential” candidates. Handling a company presentation is like, as a quick sports analogy, being the heavy favorite as a nationally ranked, Division 1 team in a game against an unranked, Division 2 team. In other words – there are 10,000 ways you can mess up, but very few ways to truly beat expectations.

Key Dos:
-dress sharp (refer to my Interview Tips page, tip #2)
-meet at least 3-4 consultants/recruiters present, ask for their business card, and FOLLOW-UP to ask for advice/interview tips

Key Don’ts:
-spend the entire time talking to your friends
-spend the entire time by the snack bar
-hand your resume to recruiters or consultants unless SPECIFICALLY ASKED
-ask 50 questions – people remember the ANNOYING APPLICANTS

#2 Application – resume + cover letter

This is where the wheat begins to be separated from the chaff. At this point, you’ve decided management consulting is a potential career path for you. You may not be 100% sold over other options (eg banking, accounting, corporate, etc) but are interested enough to invest significant time. There are many variations of how this process works: if you’re currently enrolled in school, there are typically resume submission periods followed by a selection process to determine who receives interviews. If you’re not in school (or your target firms do not recruit at your school), it typically means submitting your resume through internal friends, HR and recruiting contacts, or even in-person at job/career fairs and waiting indefinitely to hear back. Either way, a top notch resume will ALWAYS STAND OUT. Cover letters, on the other hand, present significantly more room for error and have limited upside.

Key Dos:
-build a consulting-ready resume (refer to my Resume Tips page)
-make sure you have the RIGHT FIRM, ADDRESS, ETC on your cover letter
-follow-up with recruiters if you haven’t received confirmation upon submission
-let contacts within firms know that you have applied – they can send a positive recommendation to recruiters if they are inclined to do so

Key Don’ts:
-send more than 1 email asking about the status of your application
-have more than 1 page for either your cover letter or your resume
-send additional materials (eg, portfolio work, letters of reference) unless SPECIFICALLY ASKED

At some point you may need to narrow your scope – I recommend submitting resumes/cover letters to as many firms as possible, but if you’re lucky enough to receive tens of interviews you should really consider which firms are best for you so you can focus on the ones that matter. This post on global management consulting firms versus boutique firms may help

#3 Interview (phone)

Self-explanatory. Phone interviews are usually fit-oriented, and if done are either because #1, the firm doesn’t have enough resources to immediately hold in-person interviews or #2, you’re a “borderline case” and they need additional information about you and your background to decide. The approach with phone interviews should be to focus on answer quality, and less on building interviewer rapport given the difficulties of doing that over the phone. Cover the bases below and you’ll do fine.

Note that not all consulting firms will have phone interviews. Some may skip directly to in-person interviews. Some may have several phone interviews before any in-person meetings

Key Dos:
-place the call in a QUIET AREA WITH GOOD RECEPTION, preferably a land-line
-ask for time if you need to collect your thoughts – but don’t take longer than 30 seconds
-have a notepad handy for technical questions
-ask for their email address to send a THANK YOU NOTE/FOLLOW-UP EMAIL

Key Don’ts:
-conduct the phone interview while on a train from Lumsford, New Mexico to El Paso, Texas
-be too casual – its easier to make this mistake on the phone – remember that it is a JOB INTERVIEW. No excessive laughing. Keep discussion of personal matters to a bare minimum unless directly asked

#4 Interview (in-person)

Also self-explanatory. If you’ve made it here, congratulations! They clearly think highly of what you’ve accomplished and now want to know you as a person – your communication skills, your on-the-spot thinking and analytical abilities, your presence and personality. This is truly the most difficult part, as I can guarantee that at this point you’re up against some very qualified candidates. To stand out, the keys in management consulting interviews are to really ACE THE CASE, have well-rehearsed but NATURAL RESPONSES to non-case questions, and be well-informed about current business news. Sounds simple, but takes many many many hours of solid preparation to make this happen.

There are two components to interviews (both phone and in-person) – the case study, and the fit/behavioral questions. I will dedicate separate posts to each, but the important thing to know is that the case study accounts for at least 50% (and usually more) of your final “score” in determining whether you get an offer

Key Dos:
-everything I wrote on my Interview Tips page

Key Don’ts:
-forgetting everything I wrote on my Interview Tips page

#5 The Waiting Period

Like #1 Company Presentations, there’s not much upside but you can do a lot to ruin your prospects. Be patient and focus on other priorities – and NEVER STOP LOOKING FOR OTHER JOBS.

Key Dos:
-wait patiently and if you have upcoming interviews, prepare for those
-if you have no response after 1 week of the “final interview”, send an email to the recruiter asking if they need anything more from you regarding your application; CC one or two consultants you interviewed with or talked to extensively in the process

Key Don’ts:
-assume you have an offer and stop the job search process
-send an email a day to recruiters/consultants at the firm inquiring about your status

#6 The Offer!

CONGRATULATIONS! You’ve done it. It’s extremely difficult to receive offers from management consulting firms – their scale is simply an order of magnitude smaller than financial service firms (as an example, McKinsey’s New York office, one of their largest, occupies about 10-15 floors of one skyscraper. Goldman Sachs in New York has 3 skyscrapers all to itself). Now is time for thorough due diligence and diplomatic negotiation if necessary regarding final terms, start date, etc. Again, congratulations on a job well-done and welcome to the challenging and wonderful world of strategy and management consulting.

Key Dos:
-thank them nicely for the offer
-send an email to firm contacts that you’ve met through the application process and thank them/notify them as well. Setup time to discuss the offer and ask questions of them
-gather as much information as you can from current and former employees, friends, books, etc
-ask your primary HR contact with any “administrative questions” eg salary, benefits, etc

Key Don’ts:
-accept the offer immediately unless you are 100% sure that’s the job for you
-ask non-HR contacts any “administrative questions” unless you know them well
-immediately negotiate details of your offer without fully informing yourself first. And as a general rule of thumb, don’t negotiate anything that won’t SIGNIFICANTLY change your decision or satisfaction in the job