Consulting

Background

Consulting is a broad industry focused on helping organizations solve a wide range of problems they lack the ability to address on their own. These may include anything from launching a new product to guiding large-scale organizational changes.

Consulting firms have a significant amount of influence, working with everyone from Fortune 50 businesses to the federal government. But despite the global consulting industry’s size (it was valued at roughly $710B as of 2023, according to data from research and advisory firm Kennedy Intelligence) it can be mysterious. Consulting firms’ clients and the problems they help solve are typically kept confidential, and their efforts are often largely invisible to the general public.

The “Big Three” and the “Big Four” consulting firms are often considered the world’s most prestigious and well-known consulting firms. These seven firms collectively made up about 20% of the global consulting market by revenue in 2023, according to Kennedy Intelligence Managing Partner Tom Rodenhauser.

The Big Three and Four

The Big Three consulting firms are McKinsey & Company, Boston Consulting Group, and Bain & Company. Some also refer to this group as “MBB.”

These firms are best known for strategy consulting services, management consulting expertise, and demanding work environments. Famous MBB alumni include Chelsea Clinton and Sheryl Sandberg–see more well-known alumni here.

The Big Three often advise Fortune 500 and Fortune 100 companies on critical business decisions, including growth strategy, organizational structure, and digital transformation. They cultivate long-standing relationships with clients and often work with the same companies for years.

The Big Four refers to Deloitte, PwC (also known as PricewaterhouseCoopers), KPMG, and EY. These firms specialize in accounting and audit some of the largest companies in the US today. They more recently built out their business consulting practices, Rodenhauser said. Due to their dual business units, the Big Four typically have higher annual revenues than the Big Three.

Just like the Big Three, the Big Four also consult for major Fortune 500 corporations, as well as various government institutions. However, the Big Four are better known for implementing and executing business decisions than they are for their strategy work.

Collectively, the Big Four employ roughly 1.5 million people across more than 150 countries and made about $203B in annual revenue as of 2023.

Clients and Projects

A lot of what consultants do all day—as well as who their clients are—is intentionally kept a secret. In some cases, consulting firms keep their clients private to maximize the sectors they’re able to secure contracts for and avoid any perceived conflicts of interest.

For example, in 2017, McKinsey performed a pricing study for e-cigarette maker Juul’s vaping device, offering Juul advice on flavor evaluation, regulatory issues, and more. From 2017 to 2021, McKinsey took in $77M in consulting contracts with the FDA. Similar arrangements made public on other projects have led to accusations of conflicts of interest.

Other notable public examples of major consulting projects include Accenture’s back office systems contract for the 2012 London Olympics, which included finance and accounting work, and McKinsey’s work with Blue Cross Blue Shield of Michigan on overhead expenditures that Pete Buttigieg revealed during his presidential campaign.

Sought After but Selective

Entry-level consulting positions are highly sought after for college graduates. Securing a spot at a top firm is extremely competitive.

For instance, in 2018, roughly 13% of Yale University graduates became consultants. Like investment banking, part of consulting’s appeal includes the relatively high salaries (top firms often offer entry-level salaries well over $100K per year) that don’t always require advanced degrees to obtain.

Despite having tens of thousands of employees each, firms such as McKinsey & Company, Boston Consulting Group, and Bain & Company typically only hire roughly 1% of applicants—meaning that these consulting firms have more competitive admissions rates than the Ivy League universities they recruit from.