German in house consulting - difference vs. corporate strategy division?

Hi!

The concept of in-house management consulting units in large corporations, especially as seen in many German firms, has indeed attracted interest due to its somewhat unique structure and functioning. Here's a breakdown along your questions:

1. In-house Consulting vs. Corporate Strategy:

In-house Consulting: Think of them as internal problem-solvers. They tackle a mix of projects, big and small, within the company. And here's a fun fact: many of these in-house units were set up or influenced by folks who used to work at big-name consultancies like McKinsey, BCG, or Bain. So, there's a blend of that external consulting rigor with deep internal company know-how.

Corporate Strategy: These folks are the company's compass. They're looking at market trends, scoping out competitors, and setting the long-game plans. They’re less about one-off projects and more about charting the course forward.

2. What's the Job Like in In-house Consulting?

Do They Do Strategy? Absolutely. Especially when there's sensitive info best managed in-house. But they're also the ones diving into the day-to-day, optimizing operations and processes.

Do They Only Implement? They're a versatile bunch. They'll strategize one minute and get their hands dirty the next. But for mega decisions, like a new market entry, external consultants might still get a ring.

3. How attractive is a Career in In-House Consulting?

Skills: Similar to external Consulting, you'll pick up a wide range of skills, from high-level strategy to on-the-ground operations. And with the DNA of top consultancies in the mix, you're in for some quality learning.

Networking: You'll mingle with different departments and the higher-ups. It's a golden ticket for building relationships inside.

Jumping Out: Thinking of switching into external consulting later? An in-house experience can be a solid stepping stone, but then usually already with a specific topic focus.

Staying In: A lot of folks use this as a launchpad to other company roles. Given the broad view you'll have, it positions you well for other leadership or operational gigs.

Career Tips: Gauge the in-house consulting team's weight in the company. Are they central players or side acts? Also, peek at the types of projects they're on; it'll give you clues about growth and the learning curve.

In a nutshell: If you're itching to dive deep into a company, drive real change, and have a role influenced by top consulting brains, in-house consulting can absolutely be a viable option.

Cheers, Sidi

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Dr. Sidi S. Koné

Former Senior Engagement Manager & Interviewer at McKinsey | Former Senior Consultant at BCG | Co-Founder of The MBB Offer Machine™

Hi there, indeed a big industry as we have so many MBBs in Germany who eventually drop out and still like to work project based and fast-paced (though not as fast-paced anylonger as in MBB) and hence join in-house consulting units. 

Difference Between In-House Consulting and Corporate Strategy:

• Focus on Internal Issues: In-house consulting often deals with internal challenges and projects within the parent company. The primary goal is to drive efficiency, optimization, and solve specific issues that affect the company's operations. Having said this, there are exceptions, e.g., Porsche heavily consults outside clients too. So carefully check what you are looking for. 
• Corporate Strategy: The typical corporate strategy division deals with high-level, long-term planning, including market entry, growth strategies, and positioning in the industry. They often focus on the big picture.

Nature of Work:

• Mix of Implementation and Strategy: In-house consulting can involve a mix of strategy and implementation. While you may work on strategic projects, the emphasis is often on implementing solutions and making processes more efficient.
• External Consultants: For highly strategic and complex projects, companies may still seek the expertise of external consulting firms to provide fresh insights and best practices.

Long-Term Career Aspects:

• Industry Expertise: In-house consulting can provide you with deep industry expertise, which is valuable if you plan to stay within the same sector.
• Strong Company Network: You'll build a strong internal network within the company, which can open up opportunities in various roles.
• Narrower Focus: Keep in mind that a long-term career in in-house consulting may result in a narrower focus on internal issues, limiting your exposure to broader industry trends.
• Leadership Positions: Many in-house consultants eventually move into leadership roles within the company, leading teams or departments.

Warm regards

Frederic 

Hi there,

First of all, please make sure to network! Speaking to people that are actually at these firms is going to help immensly.

What is the major difference between working in these kinds of “in-house management consulting” vs. typical “corporate strategy division”?

• In-House Consulting: While in-house consulting teams may work on strategic projects, their focus often includes implementation and operational aspects. They are responsible for turning strategic recommendations into actionable plans and often have a more hands-on approach to problem-solving.
• Corporate Strategy Division: Corporate strategy teams are primarily responsible for defining and developing strategic direction. They may partner with external consulting firms for in-depth analysis and recommendations while staying more focused on the high-level strategy.

Do you really do strategy consulting in these units? Or, do you focus on more implementation / operation stuffs, while the more strategic projects (such as group strategy, growth strategy, market entry) are still done by external consulting firms?

Yes, they really do! But they'll also do implementation/operation. It's truly going to depend on the firm….very firm/team specific.

What are the long-term career aspects of joining such program in a reputable firm? Are there any specific factors that I should take in mind when it comes to long term career aspect?

Generally you'd stay there and rise up or keep moving around in similar roles. It would be rare to go into consulting from one of these firms.

As a seasoned strategy consultant with experience in both external consulting and in-house consulting, I can provide some insights into the major differences and long-term career aspects of working in these types of roles.

In-house consulting units within German firms do have some unique characteristics compared to typical corporate strategy divisions. While both types of roles involve strategic work, in-house consulting units often have a stronger focus on internal projects and operational implementation. This means that you may be working closely with various business units within the company to drive operational improvements, process optimization, and change management initiatives.

However, it's important to note that in-house consulting units also engage in strategic projects. While some more complex or specialized strategic projects may still be outsourced to external consulting firms, in-house consultants are often involved in developing and implementing the company's overall strategic direction. This can include projects such as group strategy, growth strategy, market entry, and M&A evaluations.

In terms of long-term career aspects, joining an in-house consulting program in a reputable firm can offer several advantages. Firstly, you have the opportunity to gain deep industry knowledge and become a subject matter expert within the company. This can open doors to leadership positions and greater influence in shaping the company's strategy.

Additionally, working in an in-house consulting unit allows for greater exposure to senior executives and decision-makers within the organization. This can provide valuable networking opportunities and increase your visibility within the company, potentially leading to faster career progression.

However, it's important to consider a few factors when thinking about the long-term career aspect. In-house consulting roles may have a narrower scope compared to external consulting, as you are primarily focused on the company's internal projects. If you have a strong desire for diverse client exposure and working on a wide range of industries and business challenges, external consulting may be a better fit.

Furthermore, the career trajectory within an in-house consulting unit may be more company-specific. Advancement opportunities may be tied to the growth and strategic priorities of the company itself. It's important to assess the long-term growth potential of the company and its commitment to investing in the development of its in-house consulting team.

In summary, working in an in-house consulting unit within a reputable German firm offers a unique blend of strategic and operational work. While you may have a stronger focus on internal projects, you will still have the opportunity to contribute to strategic initiatives. Consider your career aspirations, industry interests, and growth potential within the company when evaluating the long-term career aspects of joining such a program.

I hope this provides some clarity on the differences and considerations for a career in in-house consulting. If you have any further questions, feel free to ask.

Cool question. Happy to provide a perspective - I did a lot of work in Germany as a McK consultant, working often with in-house consulting firms. 

• What is the major difference between working in these kinds of “in-house management consulting” vs. typical “corporate strategy division”?

There isn't a huge one. In some cases it's just a question of naming, not of substance. For the former, they might also do external work (not only supporting their mother company), whereas the latter do exclusively internal work.  

• Do you really do strategy consulting in these units? Or, do you focus on more implementation / operation stuffs, while the more strategic projects (such as group strategy, growth strategy, market entry) are still done by external consulting firms?

They do everything. What's worth mentioning is that when the project is critical, these companies still end up hiring MBB to work together with their in-house division to deliver on big projects. This way they accelerate delivery, get stronger expert / external perspectives and they do capability building on their own consultants at the same time. 

• What are the long-term career aspects of joining such program in a reputable firm? Are there any specific factors that I should take in mind when it comes to long term career aspect?

Most people who join these divisons are former consultants (MBB, big4, etc.) who like consulting work but who want a slightly better and more predictable life-style. 

It's not for everybody but it's definitely worth a short. 

Downsides - from what I hear - is that promotions are way slower than in consulting and there's a more ‘political nature of the job’ (in consulting you change the client and team all the time, where as an in-house consultant you always work with the same people, so relationship develpment and stakeholder management are critical)

Best,
Cristian

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The difference really depends on size of team. If it is a small team (e.g. 20-30 people), then it is corporate strategy work. If it is a much larger team, then it will have components of “managerial consulting”, i.e. a larger focus on transformation, PMO, etc.

Even in Corporate Strategy divisions you will hire external consultants here and there. Usually for major projects, acquisitions, etc.

Long term career perspectives tend to be positive. These programs intend to train people to put them in managerial positions - after they gain a broad perspective on the business and developed a relevant internal network.