Most positions in private industry require a master’s degree
and additional years of specialized experience; a bachelor’s
degree is sufficient for entry-level government jobs.
As business becomes more complex, the Nation’s firms are
continually faced with new challenges. Firms increasingly
rely on management analysts to help them remain competitive
amidst these changes. Management analysts, often referred
to as management consultants in private industry, analyze
and propose ways to improve an organization’s structure, efficiency,
or profits. For example, a small but rapidly growing company
that needs help improving the system of control over inventories
and expenses may decide to employ a consultant who is an expert
in just-in-time inventory management. In another case, a large
company that has recently acquired a new division may hire
management analysts to help reorganize the corporate structure
and eliminate duplicate or nonessential jobs. In recent years,
information technology and electronic commerce have provided
new opportunities for management analysts. Companies hire
consultants to develop strategies for entering and remaining
competitive in the new electronic marketplace. (For information
on computer specialists working in consulting, see the following
statements elsewhere in the Handbook: computer software
engineers; computer scientists and database administrators
;
and computer programmers.)
Firms providing management analysis range in size from a
single practitioner to large international organizations employing
thousands of consultants. Some analysts and consultants specialize
in a specific industry, such as health care or telecommunications,
while others specialize by type of business function, such
as human resources, marketing, logistics, or information systems.
In government, management analysts tend to specialize by type
of agency. The work of management analysts and consultants
varies with each client or employer, and from project to project.
Some projects require a team of consultants, each specializing
in one area. In other projects, consultants work independently
with the organization’s managers. In all cases, analysts and
consultants collect, review, and analyze information in order
to make recommendations to managers.
Both public and private organizations use consultants for
a variety of reasons. Some lack the internal resources needed
to handle a project, while others need a consultant’s expertise
to determine what resources will be required and what problems
may be encountered if they pursue a particular opportunity.
To retain a consultant, a company first solicits proposals
from a number of consulting firms specializing in the area
in which it needs assistance. These proposals include the
estimated cost and scope of the project, staffing requirements,
references from a number of previous clients, and a completion
deadline. The company then selects the proposal that best
suits its needs.
After obtaining an assignment or contract, management analysts
first define the nature and extent of the problem. During
this phase, they analyze relevant data—which may include annual
revenues, employment, or expenditures—and interview managers
and employees while observing their operations. The analyst
or consultant then develops solutions to the problem. While
preparing their recommendations, they take into account the
nature of the organization, the relationship it has with others
in the industry, and its internal organization and culture.
Insight into the problem often is gained by building and solving
mathematical models.
Once they have decided on a course of action, consultants
report their findings and recommendations to the client. These
suggestions usually are submitted in writing, but oral presentations
regarding findings also are common. For some projects, management
analysts are retained to help implement the suggestions they
have made.
Like their private-sector colleagues, management analysts
in government agencies try to increase efficiency and worker
productivity, and to control costs. For example, if an agency
is planning to purchase personal computers, it must first
determine which type to buy, given its budget and data-processing
needs. In this case, management analysts would assess the
prices and characteristics of various machines and determine
which ones best meet the agency’s needs. Analysts may manage
contracts for a wide range of goods and services to ensure
quality performance and to prevent cost overruns.
Management analysts usually divide their time between their
offices and the client’s site. In either situation, much of
an analyst’s time is spent indoors in clean, well-lit offices.
Because they must spend a significant portion of their time
with clients, analysts travel frequently.
Analysts and consultants generally work at least 40 hours
a week. Uncompensated overtime is common, especially when
project deadlines are approaching. Analysts may experience
a great deal of stress as a result of trying to meet a client’s
demands, often on a tight schedule.
Self-employed consultants can set their workload and hours
and work at home. On the other hand, their livelihood depends
on their ability to maintain and expand their client base.
Salaried consultants also must impress potential clients to
get and keep clients for their company.
| Training, Other Qualifications, and Advancement |
Educational requirements for entry-level jobs in this field
vary widely between private industry and government. Most
employers in private industry generally seek individuals with
a master’s degree in business administration or a related
discipline. Some employers also require additional years of
experience in the field or industry in which the worker plans
to consult, in addition to a master’s degree. Some will hire
workers with a bachelor’s degree as a research analyst or
associate. Research analysts usually need to pursue a master’s
degree in order to advance to a consulting position. Most
government agencies hire people with a bachelor’s degree and
no pertinent work experience for entry-level management analyst
positions.
Few universities or colleges offer formal programs of study
in management consulting; however, many fields of study provide
a suitable educational background for this occupation because
of the wide range of areas addressed by management analysts.
Common educational backgrounds include most academic programs
in business and management, such as accounting and marketing,
as well as economics, computer and information sciences, and
engineering. In addition to the appropriate formal education,
most entrants to this occupation have years of experience
in management, human resources, information technology, or
other specialties. Analysts also routinely attend conferences
to keep abreast of current developments in their field.
Management analysts often work with minimal supervision,
so they need to be self-motivated and disciplined. Analytical
skills, the ability to get along with a wide range of people,
strong oral and written communication skills, good judgment,
time management skills, and creativity are other desirable
qualities. The ability to work in teams also is an important
attribute as consulting teams become more common.
As consultants gain experience, they often become solely
responsible for a specific project, taking on more responsibility
and managing their own hours. At the senior level, consultants
may supervise teams working on more complex projects and become
more involved in seeking out new business. Those with exceptional
skills may eventually become a partner in the firm. Others
with entrepreneurial ambition may open their own firm.
A high percentage of management consultants are self-employed,
partly because business startup costs are low. Self-employed
consultants also can share office space, administrative help,
and other resources with other self-employed consultants or
small consulting firms, thus reducing overhead costs. Since
many small consulting firms fail each year because of lack
of managerial expertise and clients, persons interested in
opening their own firm must have good organizational and marketing
skills and several years of consulting experience.
The Institute of Management Consultants USA, Inc. (IMC USA)
offers a wide range of professional development programs and
resources, such as meetings and workshops, which can be helpful
for management consultants. The IMC USA also offers the Certified
Management Consultant (CMC) designation to those who meet
minimum levels of education and experience, submit client
reviews, and pass an interview and exam covering the IMC USA’s
Code of Ethics. Management consultants with a CMC designation
must be recertified every 3 years. Certification is not mandatory
for management consultants, but it may give a jobseeker a
competitive advantage.
Management analysts held about 605,000 jobs in 2004. About
29 percent of these workers, more than 3 times the average
for all occupations, were self-employed. Management analysts
are found throughout the country, but employ.ment is concentrated
in large metropolitan areas. Management analyst jobs are found
in a wide range of industries, including management, scientific,
and technical consulting firms; computer systems design and
related services firms; and Federal, State, and local governments.
The majority of those working for the Federal Government are
in the U.S. Department of Defense.
Despite projected rapid employment growth, keen competition
is expected for jobs as management analysts. The pool of applicants
from which employers can draw is quite large since analysts
can come from very diverse educational backgrounds. Furthermore,
the independent and challenging nature of the work, combined
with high earnings potential, makes this occupation attractive
to many. Job opportunities are expected to be best for those
with a graduate degree, specific industry expertise, and a
talent for salesmanship and public relations.
Employment of management analysts is expected to grow faster
than the average for all occupations through 2014, as industry
and government increasingly rely on outside expertise to improve
the performance of their organizations. Job growth is projected
in very large consulting firms with international expertise
and in smaller consulting firms that specialize in specific
areas, such as biotechnology, health care, information technology,
human resources, engineering, and marketing. Growth in the
number of individual practitioners may be hindered by increasing
use of consulting teams, that can expedite solutions to a
variety of different issues and problems within an organization.
Employment growth of management analysts has been driven
by a number of changes in the business environment that have
forced firms to take a closer look at their operations. These
changes include developments in information technology and
the growth of electronic commerce. Traditional companies hire
analysts to help design intranets or company Web sites, or
to establish online businesses. New Internet startup companies
hire analysts not only to design Web sites but also to advise
them in more traditional business practices, such as pricing
strategies, marketing, and inventory and human resource management.
In order to offer clients better quality and a wider variety
of services, consulting firms are partnering with traditional
computer software and technology firms. Also, many computer
firms are developing consulting practices of their own in
order to take advantage of this expanding market. Although
information technology consulting should remain one of the
fastest growing consulting areas, the volatility of the computer
services industry necessitates that the most successful management
analysts have knowledge of traditional business practices
in addition to computer applications, systems integration,
Web design, and management skills.
The growth of international business also has contributed
to an increase in demand for management analysts. As U.S.
firms expand their business abroad, many will hire management
analysts to help them form the right strategy for entering
the market; to advise them on legal matters pertaining to
specific countries; or to help them with organizational, administrative,
and other issues, especially if the U.S. company is involved
in a partnership or merger with a local firm. These trends
provide management analysts with more opportunities to travel
or work abroad but also require them to have a more comprehensive
knowledge of international business and foreign cultures and
languages.
Furthermore, as international and domestic markets have become
more competitive, firms have needed to use resources more
efficiently. Management analysts increasingly are sought to
help reduce costs, streamline operations, and develop marketing
strategies. As this process continues and businesses downsize,
even more opportunities will be created for analysts to perform
duties that previously were handled internally. Finally, more
management analysts also will be needed in the public sector,
as Federal, State, and local government agencies seek ways
to become more efficient.
Though management consultants are continually expanding their
services, employment growth could be hampered by increasing
competition for clients from occupations that do not traditionally
perform consulting work, such as accountants, financial analysts,
lawyers, and computer systems analysts. Furthermore, economic
downturns also can have adverse effects on employment for
some management consultants. In these times, businesses look
to cut costs, and consultants may be considered an excess
expense. On the other hand, some consultants might experience
an increase in work during recessions because they advise
businesses on how to cut costs and remain profitable. See
the Career Database for
more information on other careers.
Salaries for management analysts vary widely by years of
experience and education, geographic location, sector of expertise,
and size of employer. Generally, management analysts employed
in large firms or in metropolitan areas have the highest salaries.
Median annual wage and salary earnings of management analysts
in May 2004 were $63,450. The middle 50 percent earned between
$48,340 and $86,650. The lowest 10 percent earned less than
$37,680, and the highest 10 percent earned more than $120,220.
Median annual earnings in the industries employing the largest
numbers of management analysts in May 2004 were:
| Management, scientific, and technical
consulting services |
$72,480 |
| Federal Government |
72,440 |
| Computer systems design and related
services |
69,800 |
| Management of companies and enterprises |
59,420 |
| State government |
48,070 |
According to a the Association of Management Consulting Firms,
typical earnings in 2004—including bonuses and profit sharing—averaged
$52,482 for research associates in member firms; $65,066 for
entry-level consultants; $89,116 for management consultants;
$123,305 for senior consultants; $191,664 for junior partners;
and $317,339 for senior partners. Only the most experienced
workers in highly successful management consulting firms earn
these top salaries.
Salaried management analysts usually receive common benefits,
such as health and life insurance, a retirement plan, vacation,
and sick leave, as well as less common benefits, such as profit
sharing and bonuses for outstanding work. In addition, all
travel expenses usually are reimbursed by the employer. Self-employed
consultants have to maintain their own office and provide
their own benefits.
Management analysts collect, review, and analyze data; make
recommendations; and implement their ideas. Occupations with
similar duties include accountants and auditors; budget analysts;
cost estimators; financial analysts and personal financial
advisors; operations research analysts; economists; and market
and survey researchers. Some management analysts specialize
in information technology and work with computers, as do computer
systems analysts and computer scientists and database administrators.
Most management analysts also have managerial experience similar
to that of administrative services managers; advertising,
marketing, promotions, public relations, and sales managers;
financial managers; human resources, training, and labor relations
managers and specialists; and top executives. See the Career
Database for more information on these careers.
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Source: Bureau of
Labor Statistics, U.S. Department of Labor, Occupational
Outlook Handbook, 2006-07 Edition
