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Between 2005 and 2011, IMC published Daily Tips every weekday on consulting ethics, marketing, service delivery and practice management. You may search more than 800 tips on this website using keywords in "Search all posts" or clicking on a tag in the Top Tags list to return all tips with that specific tag. Comment on individual tips (members and registered guests) or use the Contact Us form above to contact Mark Haas CMC, FIMC, Daily Tips author/editor. Daily Tips are being compiled into several volumes and will be available through IMC USA and Mark Haas.

 

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#684: How Has Consultant Compensation Changed in the Recession?

Posted By Mark Haas CMC FIMC, Thursday, October 27, 2011
Updated: Thursday, October 27, 2011
A lot of consultant left the profession, even large firms trimmed staff, and rates took a significant hit during the recent economic downturn. What are the prospects for rates returning to former levels any time soon?

Remember that consulting lags the general market by about six months. However, this economy is not a typical recession; it is a credit crisis, with a significantly different profile. However, it does appear that consulting employment and fees are strengthening. Large consulting firms are hiring again in response to deferred work at their longer term clients. Also, many of those consultants laid off during the downturn are either being rehired or starting their own firms.

Logic might indicate that consulting fees would remain low with growing supply of consultants and still soft financial health of business in the US and Europe. Top-Consultant, in its Salary Benchmarking Report 2011/12, reports that compensation in 2011 is still lower than in 2009 for most people in most consulting specialties. However, this is in part due to hiring of many junior consultants who are more than offsetting departure of senior employees. In Australia, Europe and the US, the number of consultants receiving no pay raise in 2011 was about 45% and for those who did receive a raise, it was about 6%. (The data vary by specialty, geography, and seniority so see the report for greater insight).

Tip: We are not out of the downturn yet. Although strategy and business transformation specialties command the highest compensation, one conclusion is interesting. Compensation for the highest performers, particularly from bonuses, is strong. For those who are at the bottom of the performance scale, raises and bonuses remain either missing or small.

© 2011 Institute of Management Consultants USA

Tags:  competition  consulting  fees  trends 

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#938: Is Consulting All You Do?

Posted By Mark Haas CMC FIMC, Tuesday, December 9, 2008
My consulting career is going pretty well, with a full book of business and a growing staff. It does occupy a lot of time and there are times when I feel like I am giving up on other experiences. Does consulting preclude other activities?

Consulting can be time consuming, but doesn't have to overwhelm other aspects of your professional life. In its traditional form, consulting involves building relationships, developing professional skills and technology, and applying them through time spent solving problems. As a professional who brings together experience, skills and perspective, it doesn't have to all be time intensive one-on-one consultation with a client.

There are a range of opportunities to use your expertise in other ways:
  1. Writing - Take on a column, blog, book, white paper, etc. to bring new perspective to your practice, build your visibility and create some lasting value from your expertise.
  2. Speaking - At any level, speak to trade associations, business or consulting conferences, or to community groups about topics related to your area of expertise.
  3. Research - Conduct some data collection, surveys, analysis or other approach to generating new information about your area of expertise or interest.
  4. Volunteering - Give back to your community by offering your management and consulting skills to local nonprofit organizations.
  5. Productizing - Turn your expertise into tangible products such as book or DVD "how to" guides.
  6. Starting Another Business - There is no reason why you can't extend your work into nonconsulting businesses related to your area of expertise, as long as you manage conflicts of interest.
  7. Partnering With Other People - Find individuals with whom you have not worked before and who you respect to develop new partnerships with, getting out of your comfort zone and perhaps discovering a new way of practicing your consulting.
Any of these approaches are ways to freshen your consulting business and develop some new approaches outside of the traditional day to day advice business.

© 2008 Institute of Management Consultants USA

Tags:  career  consulting  planning 

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