Hi,
Is EY's decision to delay undergraduate start dates an isolated case or indicative of broader economic concerns in the consulting industry? Will it happen to MBB?
What are the substantive differences between MBB consulting firms and Big 4 firms beyond reputation? How do work, clients, compensation, and career trajectories differ? More often than not, I heard MBB partners with C-suite level, but don't other Big 4 companies do similar things as well?
All interesting questions. The consulting industry as a whole saw something of a downturn through 2024 but things are picking back up again at MBB, to my knowledge.
It’s a little tricky to talk about other firms’ plans as I don’t have the inside view. At least at McKinsey in APAC there didn’t seem to be any concerns around delaying start dates or cutting down on hiring.
To your other question: the differences between MBB and Big 4 are indeed substantive.
Work:
MBB usually wins the big, top-of-house strategy projects that will determine a company’s future for the next 5-10 years, working with C-Suite. There’s less opportunity for this kind of work with F500 or equivalent companies at a Big 4.
MBB and Big 4 both do implementation, transformation, cost reduction and all the other types of consulting project, but these big strategy projects with name brand corporations are one of the major differences.
Also, due to the high cost of an MBB project, they tend to be short and sweet (usually less than 3 months staffing, often 6-8 weeks). That means exposure to lots of different projects and clients.
Comp:
MBB comp is higher than Big 4 at every level but there’s a noticeable widening of the gap from Principal / Associate Partner onwards. Worth checking Glassdoor for reference.
Career trajectory:
Not that much difference here - the analyst > associate > manager > associate partner > partner > senior partner track is relatively consistent across most consultancies, even if the names change between firms.
Client relationships:
I don’t know exactly how Big 4 Partners approach C-level relationships. At MBB, the approach is to become a trusted advisor and confidante to the executive. Many MBB senior partners I know are great friends with the C-Suite execs they support and will routinely meet and socialise outside of work. These senior partners are often the first person the exec will call for advice outside of their own exec team.
Hope this helps. Give me a shout if you’d like any support preparing for your applications.
hey there
EY’s delayed starts reflect their own demand shifts, not necessarily an industry-wide issue. MBB hasn’t followed suit broadly. MBB differs from Big 4 in focus (more strategy vs. implementation), client level (more C-suite), compensation (generally higher), and career exits (broader and faster at MBB).
Alessa
Hi there,
I would be happy to share my thoughts on your questions:
If you would like a more detailed discussion on your specific situation, please don't hesitate to contact me directly.
Best,
Hagen
Lots of great questions but honestly anything that we can share here is nothing more than an opinion.
The fact is that these firms represent the most serious financial institutions or firms on a global level. They have a reputation that they've build over long periods of time and they tend to be reliable.
But yes, of course, in tough economic times, they might also take decisions which are unpopular.
Which ones will choose to do so? When? Impossible to tell.
The only way you can protect yourself from situations like these is by being adaptable and working on having alternatives in case your core option doesn't work out.
That's about it.
Best,
Cristian
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