This is the second post in my “Life as a Consultant” series. The first was with a Booz Allen consultant. Expect more soon from current and former consultants at firms such as McKinsey and Bain!

Some background first: Steward was one of the first commenters here at MC. Upon further discussions and email exchanges, I learned that he’s currently a part-time consultant at A.T. Kearney in Shanghai. This position plus his perspective on studying and working in China was interesting to me and I’m sure will be interesting to readers.

Now on to the interview! I’ve bolded a few things that are particularly helpful for prospective applicants

1. Tell us about your background

I am a native Chinese student. I’m a part time project assistant in A.T. Kearney and full-time college student in Tongji University (Shanghai). While in college, I worked for a large real estate research firm, hence my first real job was literally doing questionnaire surveys on the street. Then I went to work for a big accounting firm, I learned to have fun with excel data as well as photocopy machines. I even took several unpaid internships and worked hard at them. For giving me the chances to get involved in a real business world, I owe my previous jobs great debt, every single one has provided me with a step up one way or another. At my time in A.T. Kearney, the firm and my colleagues have been very good to me.

In my spare time, I enjoy basketball, observing original stuff and hit trends in China. Recently I started a blog to pursue the joy of writing, it’s about college and careers.

2. Your situation is very unique because you’re currently a part-time consultant/intern at A.T. Kearney. How did you find this opportunity?

Firstly I’d like to clarify the difference between part-timers & internships: Apart from permanent positions (eg. from analyst to associate), we have both part-time and intern positions available for students in school.

• Part-timer assistants (PTA) are generally for undergrad (or advanced degree graduate) candidates without previous work experience, for those who want to pick up some basic experience in consulting (pay upon hourly basis).
• While for internship (which is recruited every summer), we’re actually hiring MBA candidates who have previous work experience in a certain industry and want to branch into the consulting territories after graduation (pay is comparable to senior analysts)

As to the application to a PTA, there are two main pipelines for a college students:

1. Apply on their website
2. Get “referred in”

I actually got in by mixing these two routes aforementioned – combining an application and proper networking in the information session (lots of companies swarm campus in recruiting seasons, it’s the best chance to meet your dream employer, and yes, everyone can attend it even you’re not on your final year!).

If you’re seeking some execution tips on this, I’d like you to check Kevin’s thoughtful advice on The right way to network. I was surprised when I read that post for the first time, because that’s exactly how it worked for me and I just want you to know it’s not as complicated as it sounds!

MC note: I highly encourage current students to seek out opportunities like this while in school. As long as you take care of your GPA, these experiences show initiative, build your network, and are extremely valuable during the recruiting process

3. Can you explain what it’s like to have a part-time position?

Generally speaking, we’re assigned to jobs similar to those of analysts. As a PTA (part-time assistant), you are assigned to a consulting team, expected to contribute information, set up/conduct interviews, perform data analyses, and develop models. But since part-timers’ work commitment is not as high and the recruiting process not as strict, their job are usually less complicated with less client exposure and less travel.

In the eyes of some people, PTA’s job responsibilities (dealing with pack of excel data, endless cold calls and googling revenue of an unlisted company for 2 hours) don’t look fancy and inspiring. Well I can’t speak for everyone, but personally if you want to learn more, my advice would be take initiative and ask questions, leverage the chance to see your projects all the way through. Be willing to do the boring stuff in exchange for great connections, experience, exposure, and mentorship, then you’ll make so much difference. I’m a believer in real practice and there’s still so much about consulting you’ll never hear about merely from reading The McKinsey Way or visiting this blog, unless you have the work privilege that gives you the inside scoop.

4. Can you tell us what the culture is like at A.T. Kearney?

The company doesn’t offer individualized training programs for PTAs. However, with guidance from co-workers paving the path, the transition to a real analyst job would not be difficult. I pay special tribute to the stint in ATK, where I am a participating member of an engagement, have a chance to work next to experienced consultants and even talk to to top-level management. I appreciate the firm’s vibrant atmosphere in which coworkers are more likely to be friends and mentors. Channels of communication are wide open, we can literally contact anyone. You’re not able to anticipate how a contact may help in future career, yet I found sharing bits of fulfillment with old colleagues and mentors I’ve built relationships with was one of the best feelings!

5. So, about hours, is a PTA supposed to work shorter hours since he/she’s part time?

Hmm, it depends, I’m no stranger to 80+ (even 90+) hours/week anyway (yup, I skipped a few classes, but I trust it’s worthwhile :P ) Usually we need to work doubly hard to keep a good balance between work and study, because GPA matters!

6. You work and study in China, which is an area that is of interest to many readers. Can you share your thoughts on the Chinese consulting culture?

Yes, I’d like to take this chance to let more people know about China. I think the inside culture of these GMC firms don’t have much difference from home and abroad as firms are owned and managed by seasoned professionals with overseas experiences and western mindset/educational background. Young consultants are being tutored to be globally ready from day one. I also talked with consultants who processed wealth of both China and overseas experiences, they told me the transition to a Chinese work environment is not difficult.

However, there’s one thing should be noted, a good command of Mandarin is important. As what I observed in the firm, everyone speak good English and Mandarin even he/she is a non-Chinese. Being bilingually efficient will offer you many initiatives in projects from domestic clients. Moreover, much first-hand information is readily available in local language even you’re dealing with a fortune 500 client.

I credit blogging and other social media for creating these middlemen. Lots of web users are offering tremendous insight into all aspects of life in China, and can help you form your own idea of what China is to you. But the best way to gain as much understanding as possible is to meet with as many of these insiders and see for yourself.

6. Where would you like to work when you graduate?

I am still striving for answer of this question. To me, I will certainly apply for a position in consulting after graduation.

7. What is the recruiting process like in China? How does it differ from what’s been written here on Management Consulted?

In regards to the recruiting process, it’s standardized and not much different. Popular career guides like Wetfeet and Vault are among our must-reads before job hunting. I have been surrounded by highly motivated peers who are climbing toward consultancy.

I recommended Management Consulted on my school website several weeks ago because those advices are applicable to job hunting here as well, lots of students replied and applaud Kevin’s efforts.

8. (Don’t answer if you don’t want your information made public) How should readers get in touch with you?

Sure, if anyone is interested in any topic I’m involved in, feel free to reach out for me via steward(dot)du(at)gmail.com or my blog iSteward. Today is China’s biggest festival – the Spring Festival, I wish readers all the best along their career path !

This is an important question for prospective applicants (in particular, undergrad/MBA students) looking for summer internships and fulltime jobs alike.

The decision was easier for me than for most people. The cons of investment banking – the long hours, the repetitive and unengaging nature of the work, the lack of non-finance exit opportunities – mattered far more to me than a 6-figure salary. I seriously considered sales & trading (in fact, I spent a summer at Credit Suisse First Boston in NY), and was tempted to continue in that line of work post-graduation.

Instead of defining the basic characteristics of each job (there are plenty of resources out there for that, including the Vault and Wetfeet Guides), I will address a laundry list of defining differences between the two professions.

Let me caveat by saying THESE ARE NOT YOUR ONLY OPTIONS. People get carried away into thinking that’s all there is.

#1 SALARY

This is the biggest superficial difference. That’s not to imply that salary doesn’t matter. Banking salaries average 50-100% higher than consulting salaries, with the difference increasingly significant as your seniority increases. Consulting compensates with perks that banking does not offer – from better travel allowances to more generous health and retirement packages.

Consultants always like to say this:

“I know investment bankers make more money. But from a cashflow perspective, it’s exactly the same!”

This simply means that consultants and bankers make comparable base salaries, and at the end of the year, bankers are awarded a bonus which can comprise more than 50% of their total annual compensation. Cashflow or not, the extra money is substantial and a defining driver of why many people do investment banking. This is also a difficult issue for consulting firms with respect to employee retention. In my time at McKinsey, easily half the people who left the firm went into the financial world (from hedge funds to PE), and salary was undoubtedly a major factor in the decision.

My advice is this – if after considering all 5 factors I’ve listed here, you still think the pay difference (for 1st yr analysts, averaging between $30-60K/year) would mean a substantial difference in your personal and professional job satisfaction, choose banking.

Further reading: Consulting salaries from analyst to partner

#2 LIFESTYLE

The key differences here are:

-Hours. Bankers work brutal hours, no surprise. They can average 14-16 hours/day but it can get FAR WORSE.

My roommates in New York (both investment bankers at Goldman Sachs) would sometimes go several weeks before we’d even exchange a word. Which meant not only were they getting in after I went to sleep (around 2am), but going back to the office before I woke up (around 7am).

Your second year as an investment banker gets better – in the 10-14 hours/day range but also with unpredictably tough periods.

Consultants average 12 hours/day, with the typical variations depending on client, team goals, etc

-Travel. Bankers do some for roadshows, due diligence, etc but spend 90% of their time in one office until you’re partner-level (this is investment banking; you can expect more travel in private equity and investment management). Consultants – depending on firm – travel anywhere from 25-75% of their time. At the Big 3 (Bain, Boston Consulting Group, McKinsey), you can expect travel 50-75% of the time. I’ve heard of boutiques

-Relationship with coworkers, managers, and firm. This is less discussed but equally important. Consulting firms have a very collegial atmosphere, where the focus is on getting the work done but also ensuring your professional success. This attitude permeates all interactions. Managers rarely yell, coworkers try to help each other out whenever possible, and companies are organized to provide consultants support with training, expertise, etc. Finally, networking is important at consulting firms, and social events are focused on helping consultants build contacts and relationships throughout the firm.

Investment banks, on the other hand, have a more competitive, hierarchical setup. You can expect more tense relationships with your bosses, you’ll probably be yelled at from time to time for mistakes, and coworkers are much less willing to help each other out (they’ve got enough on their plates, and your success means theres more competition for the biggest bonuses). In addition, you’ll have limited exposure across the company to other groups, departments, etc – less ability to network across the company.

Further reading: Consulting travel; Day in the life of a consultant

#3 SKILL DEVELOPMENT

Call me biased, but I received the best years of business training possible in my time at McKinsey. Thorough and at times intense exposure to textbook business principles and practices. In addition, the project team model leads to mentorship opportunities with managers, partners, and coworkers. Finally, you have constant client interaction which develops “client skills” – from managing client teams to running meetings to learning how to navigate different corporate environments.

That being said, here’s a quick list of what you can expect to learn in both fields:

By “hard skills”, I mostly mean software (ie Microsoft Office Suite), analytics (ie financial valuation). By “soft skills”, I mean the interpersonal, qualitative interactions that you have with coworkers, the broader firm, clients, etc

CONSULTING

Hard skills:
1) Microsoft Powerpoint – you will (and have to) become a master at this, and will eventually have the ability to produce presentations quickly, concisely, and meaningfully
2) Microsoft Excel – less exposure than investment banking. Still, “modeling” is a meaningful component of a consultant’s work, and something every consultant is expected to have significant exposure to. Note -firmsodeling” done in case work may not be directly comparable to the financial modeling more common at investment banks
3) Business knowledge – typically broad exposure across different topics like strategy, operations, organization and several areas where you’ll have expertise. This expertise may be as broad as “operations turnaround” and as specific as “benchmarking for insurance companies”.

Soft skills:
1) Client interaction (explained above)
2) Heavy team interaction
3) Presentation skills – this is a cornerstone of consulting work. After all, findings don’t mean anything if you can’t convince the client to believe in and adopt them
4) Project/workflow planning and execution – this is subtle but important. Much of the time at investment banks, you are given incremental work – eg, add these updated numbers to the model, bind these presentations, insert a graph on chart 11. Consulting is focused on you OWNING a piece of the entire project, setting your own deliverables and timeline, and executing against that framework. This helps you develop the ability to be “standalone” in consulting lingo.

INVESTMENT BANKING

Hard skills:
1) Microsoft Excel – clearly you will become a master at this, and is a mandatory for success. You’ll know the ins-and-outs, every keyboard shortcut known to man (and then some), and so forth
2) Microsoft Powerpoint – much less exposure here depending on the focus of your work (for instance, more in Corporate Finance, less in Mergers & Acquisitions). Very little experience in building a presentation from scratch.
3) Financial valuation – self-explanatory. Differs based on group/focus, but at the very least you’ll understand financial statements inside and out, and have strong knowledge of how companies are financed

Soft skills:
1) Work endurance – this is the upside to those 100+ hour weeks, which is the ability to work incredibly long and incredibly hard. Basically, every job you take post investment banking will feel somewhat like a vacation. It’s a great trait to have
2) Seeing deals get done – investment bankers have, at times, better access to the leading business leaders of the day. As a junior banker, you may not have direct interaction but will be exposed through countless meetings, conference calls, etc to these people and see how deals are done and groundbreaking changes in business emerge day-to-day.

Further reading: 5 big mistakes that will get you fired

The last 2 points in this post are shorter, because I plan to write separate entries on each of them in the future

#4 NETWORKING

Less discussed but important. Consultants move on to a vast array of fields – from industry to academia, government to non-profit. Investment bankers do so less – most continue within the financial world. Your professional network and future career opportunities will be heavily influenced by your colleagues and your firm alumni.

In addition – my perspective is that consulting firms (similar to point #2) facilitate more interactions between alumni and current employees as well as future networking between alumni than investment banks. However, bulge-bracket investment banks have a much larger alumni base, and it certainly isn’t impossible for you to build strong connections provided you are proactive and innovative enough.

Further reading: How to get a consulting job in a tough economy; Networking 101

#5 EXIT OPPORTUNITIES

Corollary to point #4, this is influenced by your firm’s alumni and also the following:

-the different recruiters/headhunters that reach out to you
-the different paths your “hiring class” takes and the knowledge and opportunities you share with each other
-the relationships you’ve built with more senior colleagues and the doors they can open for you

When it comes down to it, the conclusion is similar: if you want maximum career flexibility, consulting provides that in spades. If you want maximum career flexibility WITHIN finance (and corporate financial roles), investment banking provides that.

Interested in sales & trading? Click here for the major differences between consulting and trading.