Research or consulting - Do's and dont's

Deloitte Completes Acquisition of Monitor’s Global Strategy Consulting Business - Jan 11, 2013

PwC completes its acquisition of Booz & Company - Apr 3, 2014


With 2 of the biggest strategy consulting firms getting acquired in just over an year's time, the value proposition of the core consulting model is increasingly being questioned. With heavy reliance on execution, does it still make sense to spend millions on a group of consultants who are just going to provide a set of slides as an output and nothing actionable to show for themselves? Are you better off spending a tenth of the same budget and getting a slightly less detailed study from a research or advisory firm?

In the mantra of a true MBA... it all depends!


Yes, research is a good alternative when all you're looking for is some intelligence on the market place. There is nothing wrong in understanding what your competitors are doing and then figuring out for yourself what the best course of action might be to ensure success. But in a world that changes so rapidly, hardly anyone has any time to distance themselves from the day-to-day and take a look at the bigger picture.

Every year board of directors of the Fortune 500, convene a strategy meeting where the decision is taken how the company is going to be run for the next 3-4 quarters. There is no question on the availability of brain power in each of these firms but why then do they still feel the need for external help?

The decision between research and consulting is not about the value add it brings but rather do you have the time to do this for yourself. With everyone so highly focused on execution, it just sometimes makes sense to let someone else take care of the planning part of things. But what is the extent of planning you need and where can you get the same?

When is research a better option than consulting?

• When you have the luxury of time to consume the research data internally and draw meaningful strategy out of it
• When you know what needs to be done already but need some facts to back it up
• When the times are good and the only decision left to make is where should you invest rather than if you should invest at all

On the other hand, consultants can come in handy if:

• If there are multiple strategies to take up each with its own pros and cons
• If the management ranks cant decide the best course of action between themselves and are in desperate need of a second opinion
• If the business is suffering and you can't for the life of you pinpoint the rotten arm
• Or if you need someone to come in and do the dirty work for you

Most of all, one needs to remember that in the end, you live with these decisions. Doesn't matter if you spend a million dollars on a consultant or a couple of thous at a researcher, the successful companies are run by the gut not by the numbers.

Specialization of an MBA - A big question mark!

A week ago I attended the career fair at my school. I had the opportunity to meet over 50 companies in a span of 4 days and network with them all under one roof. However, I was repeatedly asked 1 question by the recruiters that made me think deep and hard about the mechanics of an MBA. That question was:

Which industry/function did I specialize in before the MBA?

Before going further, I would like to acknowledge that what follows are my views and opinions alone and if someone doesn't agree with them, its not meant to offend their view of the business world. If someone thinks too differently from my thought process, I welcome you to comment on the blog as long as you do so without disrespecting me or any other readers.

Now to get back to the topic, to me the question sounds counter-intuitive. When I started the MBA over 10 months ago at the IE Business School, my view of the same was that this is a platform that will allow me to develop my professional skills irrespective of which industry I wanted to work for. In a setting of 60 students, with classmates from over 30 different nationalities, with the world-class business school facility and the diversity of courses ranging from the analytical reasoning of Quantitative methods to research based approach of Finance to the creative enhancements of Marketing, I believed that MBA was truly worth the hype. But this view was shattered by this one simple question: What is my specialization?

I thought that MBA was a choice. I thought it was a choice about where do I wish to go from here. But instead everyone was interested in where I came from. They wanted to know not what this would be MBA graduate had learned in the last 1 year but rather what he had been doing in has past life. In an instant I was pigeonholed and not by what I wished to do, not even by what skills I had, and not even by what I had learnt but rather by what I had left over an year ago. But if this is what these firms were looking for then why hire an MBA? Why don't the banks just hire Financial experts and the operations firm hire engineers and the FMCGs hire the creative advertisers? Why would a firm spend so much money and time to go hire someone they had absolutely no need for?

I also thought that MBA was a journey where a student could identify his/her true potential. Where I would be able to discover where my abilities lied. Where I would be given the opportunity to break free from the industrial barriers and get a window into the wide and ever expanding world that is waiting for us out there. And that once I had identified the right window, I would find the door too. But if all the doors are locked except the one I stepped in from, then what really is the difference? If one just has to go back the same way they came from then why come at all?

But apparently this is what the companies were looking for. They wanted not someone who could bring a new range of skills to the table but rather an old seasoned player with the fresh shining MBA trophy in his showcase. I ask them, if MBAs can learn a 1000 different things in less than a year can't they learn an extra 10 if you give em a chance? If a girl from finance background can develop a beautiful marketing road-map for a fortune 500 FMCG in an academic setting with little external help, can't she build one in real life with the support of 10 other experts around him? If a guy from operations can handle the strategic proceedings of a 100 billion dollar company in front of his professors, can he not do this for a 10 billion dollar company in front of his colleagues?

And if the answer really is no, then what really is the advantage of investing tens of thousands of dollars in a course like an MBA? Why can't one just do a more specialized masters in finance or a PhD in operations and develop the only skills the companies are looking for? But if the answer is yes, then wouldn't it be fair to treat an MBA grad with an investment banking background equivalent to another who was running his own small business? I agree that they need to exemplify certain skills and qualities and knowledge to do well but how do the firms know whether the candidate has this based on a simple question like: Which industry/function did you specialize in before the MBA?

The Hardest Part Is Done?

As the summer time loomed in the air and everyone started relaxing a bit, a mass of 400+ students entered the IE Business School in the heart of Madrid, all set to take up the challenges of their last core term. Till date, they had struggled, battled against the tireless exams and the numerous projects and the endless presentations, but now there was a sign of hope for everyone at the MBA would tell them The Hardest Part Is Done!

Yes, indeed the hardest part was done but only as long as they looked back upon their life. Lay ahead the battlegrounds that would churn them over and over again until they either evolved into the leaders of tomorrow or cowed away back into the darkness of their past. Mark these words, all the future students of IE, no the hardest part doesn't end with the Strategy and the Marketing and the Finance and all those spearheads of corporate success. A course like this doesn't let you off the hook anytime so soon. And if you are off then you're definitely on the wrong track. No, the hardest part is never done!

The only thing that was done as the summer breeze started swiping the leaves on the street of Madrid, was that the stage had been set for all these bright young scholars to start proving their mettle in the real world. As some of us went back into the corporate world for a brief stint, rest of us piled on and pursued our MBA legacy, preparing even more for the final showdown.

As days went by, some people began to see the light, which was the summer break. But this hope was quickly shadowed by the mountains of workload that lay ahead. So much so that even when the bright skies called for a chilled out weekend, herds of us were piling into the labs and our laptops just working the nights away. All for but one hope - the hardest part would soon be done!

And even as these tireless 400, finally crawled out of the tunnel into the light, ahead lay many battles to be fought. For some it was the pursuit of a fitting career while for some it was the conversion of their business ideas into reality. While some others worked to expand their existing family ventures, others were simply in search of a better tomorrow for themselves, their families and the whole humanity.

So cheer up my friends for yes, the hardest part is now surely done! But lays ahead the spoils of a new war, acquiring which is not gonna be easy. Whether you be an Italian, Japanese, American, Indian or French... everyone has a right to his share of the bounty. But beware for yes, the Hardest Part Is Never Done but the hope is always alive!!!

IE & Consulting - Match made in heaven

Among the hustle bustle of the B-school life, silence is a rare trait. With students competing for the limited air time in every class its extremely difficult to have them listen instead. But this is exactly what was achieved by the 3 of the biggest consulting firms of our era at the recently concluded IE Consulting Day. Organized by the IE Consulting Club, the event brought together consultants from Accenture, Booz & Co and Capgemini for an evening of presentations, discussions and networking. With the increased focus of IE students on consulting as a future career option, this event helped them gain a much deeper understanding of what the industry has to offer and how some of the big firms operate their business. At the same time it also introduced some of the higher up reps in these companies get a taste of the strong consulting talent that has been developing in the shadows of one of the top 10 b-schools in the world.

For a long time IE has been a popular choice for junior consultants in order to receive their MBA and progress further along their career path in their respective companies. The consulting club through the help of these students and its imminent faculty has conducted in the past half year several events to hone the consultants within the new students. The consulting day was a way for the IE consulting community to show-off what they had achieved and for the companies to entice them even further by giving them a glimpse of life as a consultant.

But why is it that consulting is becoming such a popular choice among IE students? IE Business School has long been known for fostering entrepreneurial spirit in its alumni. But just because you have the vision and motivation doesn't ensure your success. There are several facets of business in real life that cannot be simulated in a class room learning course and this is where a career in consulting steps in. Not only does a career in consulting provide one with valuable contacts, it also helps gain a much deeper understanding of any industry that you wish to associate with. A combination of the entrepreneurial abilities developed by IE and the experience provided by the consulting is something and student would hold in high regards and gives him/her the right recipe for success.

And if you're still unsure whether consulting is the right fit for you... come and talk to us. For we are the consulting club and we want you!

Circle of life

The business plans done, the pitch delivered and now on from the world of entrepreneurship into the corporate endeavors as people start scrambling for last minute internship deals and exchange opportunities slipping by in a hurry. Yes, we're back to the time of the year when a huge wave of MBA students hits the job market hard in an attempt to drive down the world unemployment rate!

But why are some people cutting corners or even throats to secure an internship while many others have this not even as the last thoughts on their mind? Is it that some people are too lazy or indifferent to make an effort? I believe there is more to it than just a question of willingness. In the words of Prof. Carmen Alonso Munoyerro "Life is more complex than just an excel function".

So, what is life of an MBA student and why do 100 people react in 200 different ways when presented with the same situation? As any manager would tell you IT ALL DEPENDS! It depends on what one expects from the school, whether one wishes to make best of a given opportunity, or if someone wants to explore different things at the same time or may be someone is just looking to enjoy a well-deserved year off from their otherwise hectic life as a consultant in one of the top 5 firms.

And then there are the prospective students who always ask me whether it is a good idea to go for an internship or if the career center is effective? There are no easy answers. Again, it depends on what you want out of an internship or how you want to use the services provided by your school. Good and bad are no longer absolute terms. Their nature and even interpretation differs from person to person. So, if you are considering an internship, ask yourself: what do you want out of the internship experience? Is it the exposure? Is it the network? Or may be its simply the extra cash? All are valid reasons but which one do you think you value the most and is it worth the lost opportunity cost.

So current students and future MBAs, before you make a big life decision you better think it through. MBA is no longer a means to an end. And surely its not an investment if you don't even know if the returns will have any value for you. And sure there will be some uncertainty but the key is to be prepared and "know thy self".

Thank You

To be or not to be -- An MBA?

Ceiling high bonfires, loud chants and noises and the smell of smoke and spirit in the air! No, this isn't the scene of another protest. This is typical of the weekend party following the end of first term at IE.

Less than 3 months into the program, everyone was forced to face, what has come to be known as, the dreaded CURVE! The only thing people could talk about for the last 2 weeks was decision trees and bonds and maslow hierarchy and what not. From the basic Debit-Credit theory to the most complicated forms of Markov chains, people stepped and stumbled at all different points in between. And with just a weekend of sigh and relief before everyone dives head first into Term 2, this gives me a perfect opportunity to recap.

So, what've we learnt so far? We now know how some of the biggest accounting scandals took place in the last decade. From the enron's and worldcom's of the world we have but one lesson to learn - Know thy balance sheet! And the best way to test the ethical and moral standards of your actions - The Phone Test i.e. how would your friends and family react when you give them the news about your proceedings. While it may be difficult for some to comprehend, but if one's true to themselves, at the least, this test should give a fair bit of warning when you take your business and accounting decisions.

While most accounting scandals take place because someone in the management didn't have the right ethical outlook, most strategic blunders take place when people are ill-informed. We have seen how some of the most thought after strategies have that innate flaw in them that somehow people miss out on. Look at the new Coke of the '80s or the Nike ERP failure of 2000. And though we have seen these failures and learned from them, there is no guarantee that we won't see such disasters in the future. In fact we know that we're bound to see even bigger ones as companies get bigger and start taking more and more expensive projects. While this is the story for every company in the world, this is also the basis on which the consulting industry runs and has become so big. But one needs to remember that consultants have limited information compared to the industry tycoons but they know exactly what to look for.

And finally the mother of all industries. This is an industry that single handedly accounts for almost everything that we know and buy and use in the world. Every firm was once a part of this industry and thousands more become a part of this year after year. This is the reason why IE is amongst the top B-schools in the world. This is the era of Entrepreneurship! While most people would agree that this industry creates more employment in the world than other other still there are not enough governments that are willing to invest in this heavily. This is the only sure shot solution to resolve the world economic crisis yet not many people are willing to take this up. The reason behind this is what people call in Game Theory - Belling the Cat! That's right. Though the industry has much to offer, the owners have much to lose as well. And its not just the failure of the business associated with it but the Economic effect of opportunity cost. Why would one give up a perfectly comfortable 9-5 job and the opportunity to earn hundreds of thousands a year for a career path that offers years of hard-work, sleepless nights, loss of health, loss of family connection and very little chance of ending up in a zero-profit situation?

The answer lies in human psyche. What is the one thing people value more than greed? The one thing that you can't get in any other job? The one thing that will make that loss of money worth it?

FREEDOM!

It's about freedom. Not just for yourself, but also for the whole world. Where would the world be without the Steve Jobs, the Bill Gates, the Einstein's and even the Zuckerberg's? We not only want the entrepreneurs, we need them.

So, I hail to all theses people. Those who gave meaning to our life, progress to our civilization and better future to us and our generations. For to be an entrepreneur is nothing shy of being a rebel and to break the shackles so often that the rule breaking itself becomes a norm!

Gracias, por favor!

The dark knight approaches

One ring to rule them all, one ring to find them
One ring to bring them all and in the darkness bind them!!!

The word has it... Number Eleven possesses the qualities of intuition, patience, honesty, sensitivity, and spirituality, and is idealistic. Others turn to people who are 'Eleven' for teaching and inspiration, and are usually uplifted by the experience.

But for the MBAs at IE, 11 is the number of weeks that are put into classes for Term 1. While intuition is all that people are relying on, patience, honesty and most of all spirituality are taking a serious battering. Having just started to figure out the various course materials, everyone will be facing their personal dark knights in a week's time. What's it gonna be for you... Accounting, Organizational Behavior, IT or the lord of all "Quantitative Analysis"?

As the cold wave engulfs my comrades and I, we scamper desperately to get the last drops out of the dying flames of the coziness' of our groups. Ready to face a new challenge we prepare tirelessly.

No matter what... my friends, always remember! There will be a new dawn! And remember if nothing else we will be MBAs...