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I know it's confusing what's the difference between management consulting and advisory you'll find out by the end of this video while there is overlap one way to think about management consulting versus advisory is the following definition management Consultants deliver solutions to Define problems and oftentimes these problems are problems that a company is dealing with in the short term for example let's imagine that an airline is thinking about adding a new route and they're thinking well we have these five brows that we're considering which route would be the best one in a management consulting will then come in plot out all the routes figure out what the revenues the costs the profits are and then based on the company's goals for example let's say that they want to maximize profits make a recommendation about which route they should add the opposite side of this is the advisory advisory usually deals with companies that know they have a problem but aren't quite sure what that problem exactly is and it often can be a long-term problem for example let's say that the same airline company that hired the management consulting firm to determine its routes also know that they're probably going to have some tax and regulation issues if they expand to a new country and they're thinking themselves plus bringing an advisor to tell us what we don't know and if you learn better with other examples I'll give you one more a couple months ago I went into doctor because I was feeling some soreness in my leg if I wasn't quite sure what it was and so I went into the doctor and the doctor looked at my leg I took some X-rays and basically ran some tests and what I knew was for example my quads already felt sore and it was likely because I was squatting with too much weight and he was like yeah you're squatting a lot deeper than usual but he also said hey you know you also have this ankle mobility issue you probably want to work on this if you're going to add more weight so you kind of see here I knew one of the problems which was my quad was sore well the doctor said well this you're just squatting really deep but also you're being limited by a vigorous which I didn't know which was my ankle Mobility so you kind of see that the management consulting would have been like you feel something in your quads let's figure out what that problem is and ah it's your squatting routine but an advisor will say well let's look at the whole picture here well looks like you have some ankle mobility issues let's work on that here's what I recommend for stretching exercises to work out your ankles before you start squatting that I wouldn't have known to ask so similarly management consulting comes in with a defined problem well versus an advisor will look at problems at the company doesn't even know they have they don't have some sort of problem but they don't know what exactly that problem is or how to fix it so you see that there are a lot of similarities between advisory and management consultants in fact there are three similarities I want you to note first they bring in external perspective into solving a problem second they don't own a decision or their implementation of the plum for example let's say the management consulting firm says that you need to open a route from Atlanta to Berlin while it's up to the company if they decide to go from Atlanta to Berlin or one of the other routes they might have been exploring and the advisor might have come in and said hey you should probably think about these tax structures for Germany if you're going to open this route from Atlanta to Berlin but again the airline will have to decide they're going to be going to implement it the third similarity is that they can make a recommendation but that's pretty much where it ends the company has to make a decision if they're actually going to implement and to take it similar to for example if my doctor told me to do some certain ankle Mobility exercises and I have to do those every day I go work out on my legs I'll tell you I have not implemented that perfectly as much as I would like so that should also show you that they can give me the prescriptions they can tell me what to do but it's ultimately up to the company in this case me and my health to take care of that so now that we know about the similarities talk about the differences and there are quite a bit a number of differences first is the certainty of the problem in management consulting the problems are often already defined the company knows the problem is trying to solve a Management Consultant might rephrase the question or solve something that's very similar to it but oftentimes the company knows they have a certain problem for example their revenues are going down but an advisor will come in often and solve a more ambiguous problem so for example the company might say hey there's some risk in this market but we're not sure what the risks are and divisor will then point out because they've done it so many times what the risks are the second difference is the engagement link management consulting projects oftentimes have a defined length of time while consulting firms that might work with the same company for years or decades oftentimes they're switching problems so for example they might be supporting one certain business unit for six months and a switch to another business unit for the next six months versus an advisory role will last for years and decades and could be on the same problem but as it evolves because for example if you hire a risk management or a Tax Advisor because the legal and tax implications might change year to year or every few years we want to continue to have them as part of your advisory team so advisor teams might continually work with the leadership team at these companies so their engagements are oftentimes undefined versus a management consulting firm third is their approach to the problem management consulting firms often bring in Frameworks and their experiences from other Industries to go in and solve a problem but advisors can oftentimes work in the same industry with multiple companies within the same industry and work with them bringing in expertise from the other companies within the same space and just their knowledge it's a lot more real world experience as well as results from other clients that they work with so now that you know the similarities and differences between management consulting and advisory when you happen to apply to a firm that offers both services and you have to decide between which service line you want to apply to you're a lot more informed but let's actually look at an example let's look at Deloitte Deloitte is one of the many firms that happen to have both Deloitte Consulting and Deloitte advisory so let's actually look at what the Lloyd defines as the differences for their management consulting division for example delore Consulting defines their work as working with industry Partners to provide practical perspective and solutions to today's most pressing challenges so you can see how this aligns with our definition earlier of management consulting now let's look at Deloitte advisory on the advisory page you can kind of say this in advisory we do not take a defensive Crouch we move forward defining the unknowns and framing the issues before you encounter them this also aligns with what you learned earlier about advisory roles so you kind of see here how Deloitte clearly defines what their services are with management consulting and advisory for example if you were a CEO of company and you came to Deloitte and said hey I have this problem I want to solve Deloitte then can point you right into if the Lloyd Consulting should be engaged or if Deloitte advisory should be engaged well now that I know the differences between management consulting and advisory which service line should I apply to if I'm given the option well there's actually three questions I want you to ask if you are applying for a firm that happened to have both advisory and Consulting and you're only allowed to pick one question number one what do you want to do long term after working at that firm for example if you want to work in strategy or an executive role later management consulting is likely the better path because mini management consulting alums end up going into strategy roles executive roles I have another video where I outlined the exit opportunities I'll link that in the description but just to give you an overview here is that if you looking for more strategic journalist type roles you're probably going to want to go into management consulting the opposite is also true if there's a particular field of business that you want to enter And The Advisory firm would help you open the door you probably go there for example if you know exactly what you want to do you want to be a journalist but you want to specialize in something for example like Risk Management you probably want to go to advisory because so many firms in advisory will specialize in one or two fields and this gives you early exposure to build up that expertise so that if you exit the industry and enter a particular field either in-house or a number firm you already have a leg up over everyone else who doesn't have that same experience so that's the first question to ask the second question is how important is work-life balance to you well it can differ between projects so I want to emphasize here that sometimes management consulting projects are easier to advise your projects and other times advisory projects are easier to management consulting project it varies depending on the project and the client I see that there's a lot more hours on average and a lot more travel when you're a Management Consultant versus when you're an advisor and the third question you want to ask yourself is in the short term does compensation matter because management consulting firms compared to their advisory counterparts even within the same company tend to pay 30 to 40 percent more so if money in the short term does matter to you and at 30 to 40 percent does matter then you might want to go management consulting again I would balance between the three of them and not just lean to one unless purely you don't care about work-life balance you don't care about compensation but you do care about your long-term goals then focus on that but overall take those three questions and balance those out if you do have a chance to apply to only one of the two I want to make sure that you make the better decision for your career all right so now you know the difference between management consulting and advisory but I want to do more to help you if you're applying to a management consulting firm or an advisory firm actually if you comment below the name of the firm and if you're trying to get an interview or pass interview I'm going to go ahead and send you some additional resources to help you all you have to do is hit the name of the firm and where you are and your goal with the firm so for example if you're applying to the Lloyd Consulting and you want to know how to get the interview just type in Deloitte Consulting getting the interview and then I'll send you a resource but if you already have an interview for example you're already interviewing with lek you can type in lek passing the interview and I'll send you some resources to help you pass those interviews if you're seeing is about becoming a Management Consultant I'd love to help you my team and I are former McKenzie Bain and btg recruiters and interviewers who help applicants land interviews prepare for their assessments and pass the interviews so that they can land our offers at firms like McKinsey Bain BCG and so many other amazing consulting firms and for a limited time you can access this training all for free in it we share with you the step-by-step proven process that has helped over a thousand people land their Consulting offers at some of the biggest firms in the world and all you have to do to access this training is to check out the link below an improvement method that you want to learn in this Workshop we've used to help 90 of the people we work with plan at least one Consulting offer in fact many land multiple offers and I'm going to give it to you away for free all you have to do to gain access to this is to check out the link below joining this Workshop could pay you one step closer to Landing your dream Consulting offer