Management Consultant or Analyst

Management analysts, often called management consultants, recommend ways to improve an organization’s efficiency. They advise managers on how to make organizations more profitable through reduced costs and increased revenues.

Duties

Management analysts typically do the following:

  • Gather and organize information about the problems to be solved or the procedures to be improved
  • Interview personnel and conduct onsite observations to determine the methods, equipment, and personnel that will be needed
  • Analyze financial and other data, including revenue, expenditure, and employment reports
  • Develop solutions or alternative practices
  • Recommend new systems, procedures, or organizational changes
  • Make recommendations to management through presentations or written reports
  • Confer with managers to ensure changes are working

Although some management analysts work for the organization that they analyze, many work as consultants on a contractual basis.

The work of management analysts may vary from project to project. Some projects require a team of analysts, each specializing in one area. On other projects, analysts work independently with the client organization’s managers.

Management analysts often specialize in certain areas, such as inventory control or reorganizing corporate structures for efficiency. Some focus on a specific industry, such as healthcare or telecommunications. In government, management analysts usually specialize by type of agency.

Organizations hire management analysts to develop strategies for entering and remaining competitive in the market.

Management analysts who work on contract may write proposals and bid for jobs. Typically, an organization that needs the help of a management analyst requests proposals from a number of consultants and consulting companies that specialize in the needed work. Interested companies then submit a proposal that explains details such as how the work will be completed, what the schedule will be, and how much it will cost. The organization selects the proposal that best meets its needs and budget.

Work Environment

Management analysts held about 950,600 jobs in 2021. The largest employers of management analysts were as follows:

Professional, scientific, and technical services          33%
Government 17
Self-employed workers 15
Finance and insurance 13
Management of companies and enterprises 4

Management analysts usually divide their time between their offices and the client’s site. Because they must spend a significant amount of time with clients, analysts travel frequently. Analysts may experience stress, especially when trying to meet a client’s demands on a tight schedule.

Work Schedules

Analysts often work many hours under tight deadlines. Some work more than 40 hours per week.

Education and Training

Management analysts typically need at least a bachelor’s degree and several years of related work experience.

Education

A bachelor’s degree is the typical entry-level requirement for management analysts. However, some employers prefer to hire candidates who have a master’s degree in business administration (MBA).

Management analysts address a range of topics, and many fields of study provide a suitable educational background. Fields of bachelor's degree study may include business, social science, and engineering.

Licenses, Certifications, and Registrations

The Institute of Management Consultants USA (IMC USA) offers the Certified Management Consultant (CMC) designation to those who meet minimum levels of education and experience and who complete other requirements. Management analysts are not required to get certification, but having the credential may give jobseekers a competitive advantage.

Work Experience in a Related Occupation

Many analysts enter the occupation with several years of work experience. Organizations that specialize in certain fields typically try to hire candidates who have experience in those areas. For example, tax preparation firms may prefer candidates who have worked as an accountant or auditor, and software companies might seek those with experience as a computer systems analyst.

Advancement

As management analysts gain experience, they often take on more responsibility. Senior-level analysts may supervise teams working on complex projects and may become involved in seeking out new business. Those with exceptional skills may eventually become partners in their organization and focus on attracting new clients and bringing in revenue. Senior analysts may leave consulting and move to management positions at non-consulting organizations.

Personality and Interests

Management analysts typically have an interest in the Thinking, Persuading and Organizing interest areas, according to the Holland Code framework. The Thinking interest area indicates a focus on researching, investigating, and increasing the understanding of natural laws. The Persuading interest area indicates a focus on influencing, motivating, and selling to other people. The Organizing interest area indicates a focus on working with information and processes to keep things arranged in orderly systems.

If you are not sure whether you have a Thinking or Persuading or Organizing interest which might fit with a career as a management analyst, you can take a career test to measure your interests.

Management analysts should also possess the following specific qualities:

Analytical skills. Management analysts must be able to interpret a wide range of information and use their findings to make proposals.

Communication skills. Management analysts must be able to communicate clearly and precisely in both writing and speaking. Successful analysts also need good listening skills to understand the organization’s problems and propose appropriate solutions.

Interpersonal skills. Management analysts must work with managers and other employees of the organizations where they provide consulting services. They should work as a team toward achieving the organization’s goals. 

Problem-solving skills. Management analysts must be able to think creatively to solve clients' problems. Although some aspects of different clients' problems may be similar, each situation is likely to present unique challenges for the analyst to solve.

Time-management skills. Management analysts often work under tight deadlines and must use their time efficiently to complete projects on time.

Pay

The median annual wage for management analysts was $93,000 in May 2021. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $50,190, and the highest 10 percent earned more than $163,760.

In May 2021, the median annual wages for management analysts in the top industries in which they worked were as follows:

Professional, scientific, and technical services         $100,170
Management of companies and enterprises 96,940
Finance and insurance 83,050
Government 81,090

Management analysts working for consulting firms are usually paid a base salary in addition to a year-end bonus. Self-employed analysts are paid directly by their clients, typically by either the hour or the project.

Analysts often work many hours under tight deadlines. Some work more than 40 hours per week.

Job Outlook

Employment of management analysts is projected to grow 11 percent from 2021 to 2031, much faster than the average for all occupations.

About 101,900 openings for management analysts are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire. 

Employment

Demand for consulting services is expected to increase as organizations seek ways to improve efficiency and control costs. As markets become more competitive, firms will need to use resources more efficiently.

Information technology (IT) consultants are expected to see high demand. Businesses will seek out consulting firms to help them attain a high level of cybersecurity and make sure their IT systems are efficient and up to date.

Growth is expected to be particularly strong in smaller consulting companies that specialize in specific industries or types of business function, such as information technology or human resources. Government agencies also are expected to seek the services of management analysts as they look for ways to reduce spending and improve efficiency.

For More Information

For more information about the Certified Management Consultant designation, visit

Institute of Management Consultants USA

For more information about other certifications in management consulting, visit

Global Academy of Finance and Management

 

FAQ

Where does this information come from?

The career information above is taken from the Bureau of Labor Statistics Occupational Outlook Handbook. This excellent resource for occupational data is published by the U.S. Department of Labor every two years. Truity periodically updates our site with information from the BLS database.

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