Advantages of Strategy Vs Advisory
You may have heard about the advantages of a strategy versus an advisory. Both can be useful, and it’s up to you to determine which type is most appropriate for your organization.
‘Pure-play’ strategy consulting firms
Strategy consulting firms are one of the most prestigious segments within the professional services industry. These companies specialize in providing guidance and expertise to organizations on how to improve their capabilities and achieve long-term business goals.
In addition to providing business strategy advice, consultants also work on economic policy, mergers, and acquisitions, and business model transformation. They can facilitate the implementation of the strategy and often help clients make joint ventures and Initial Public Offerings.
Strategy consulting firms have enjoyed decades of prestige. There are now thousands of consulting firms that provide strategy consulting. Some of the most prominent consultancies are McKinsey, Bain, and BCG. However, many smaller companies are also offering strategic advice in the United States.
Strategy consultants have a reputation for being able to offer a fresh perspective on complex issues. Unlike traditional management consultants, strategy consultants provide input on specific strategic decisions, rather than preparing business plans from scratch. This helps businesses to consider all factors when making large decisions.
Strategy consulting is a very prestigious career and offers a variety of opportunities to those interested in it. Consulting firms are looking for individuals with strong analytical and problem-solving skills. While many consultants have a bachelor’s degree, there are also advanced degree programs available for those with more specialized knowledge.
Pure-play strategy consulting firms specialize in strategy and operations. Their focus is on providing guidance on how to increase profitability, develop effective business strategies, and enhance organizational capability. Many firms are expanding their offerings to include other types of consulting.
Operations is an increasingly important area of strategy execution. Strategy consultants look at the systems used by an organization and evaluate how well they are able to reach its goals. They can provide guidance on process improvement, cost reduction, and time savings.
Most strategy consultants focus on long-term goals, as well as commercial activities that take place in the pre-deal phase. Clients hire them to develop strategy and development plans, set up implementation roadmaps, and conduct due diligence on potential targets.
The best strategy consulting firms have a reputation for delivering excellent results. Several of the top strategy consultancies also have pathways for advanced degree hires. For example, the McKinsey Insight Program allows candidates with non-MBA advanced degrees to join the firm.
‘Strategy practices’ of multi-service firms
Strategy practices in multi-service firms are different from those in other firms. Several factors influence the strategies developed in such organizations. One is the organization’s location. A firm with a regional presence may be pursuing a defensive strategy against national competitors, while a global player’s strategy might include doubling down on the multi-service model.
Another factor is the degree of freedom afforded by the organization’s structure. For example, PwC’s Big Four firm has a centralized management team that oversees the business, yet its individual businesses can operate independently as long as they deliver financial results. This level of organizational autonomy is rare.
Nevertheless, it is important to understand how strategies are actually implemented in these organizations. Strategies are created by groups of non-executive strategy professionals who have different roles and experiences. These strategists also differ in their orientation. The author grouped the non-executive strategy professionals into two distinct groups based on their position within the organization.
A study of strategy formation in this firm revealed that its corporate strategy team (CST) managed to strategize in three iterative phases. This is in contrast to traditional strategic planning, where activities are arranged on a project basis.
While a CST’s strategies were similar to those of a traditional long-range planning effort, its methods were different. It spent less time discussing strategy alternatives and more time on the process.
Unlike the CST, an executive strategy group was not in place. However, it was nonetheless able to perform the best strategy-making. They performed a number of activities, including setting goals, conducting business reviews, and leading workshops.
Another study examined the performance of a BDM. The BDM’s activities arguably matched those of an executive strategy group. In addition to being a “strategy manager,” the BDM was a previous senior manager and had extensive industry experience. He or she was also a leader in the strategizing business, influencing both staff and management teams.
Lastly, the authors looked at how other members of the organization contributed to the formation of the company’s strategy. This included both formal and informal communication. Some of these interactions were more informative than others, such as the strategy portfolio manager’s participation in the Corporate Strategy Team’s workshop.