A CEO of a technology company specializing in the development of software solutions for the healthcare sector, has noticed that the need for AI-based analysis and data processing in the industry is increasing. The company, which previously focused on traditional software solutions, now faces the challenge of establishing itself in this new technological segment. It is crucial to develop a strategy for integrating artificial intelligence into the product portfolio and to realign the company with these innovative technologies in order to remain competitive.
A typical case for a strategy consultant in his daily business can look something like this. A strategy consultant can provide valuable support by not only helping to overcome the technical and market challenges, but also by helping to develop a vision of how the company can become a leader in this new area.
The following article explains what makes a strategy consultant, what the salary structures in this field look like, why companies should consider such a consultancy and how to get started in this field.
The definition of strategy consultant
A Strategy consultantalso called strategy consultants, are Expert:inside, which supports companies, organizations and public institutions in the formulation, evaluation and implementation of long-term goals and strategies. This type of consulting, often referred to as strategic consulting or Boardroom Consulting, is one of the most prestigious segments of the professional services industry. Strategy Consultants provide objective, data-driven insights and creative solutions to complex business challenges that can range from developing new business models to market expansion, digital transformation and optimizing existing processes. Their aim is to strengthen the strategic positioning of their clients and ensure sustainable business success.
Strategy Consultants: The 8 core areas of strategy consulting
The core areas of strategy consulting encompass a variety of disciplines designed to help organizations formulate and implement their long-term goals. Each area addresses specific aspects of strategic planning and implementation. Here are some of the key areas:
- Corporate strategy
This area deals with the development of comprehensive, company-wide strategies aimed at defining the long-term goals and vision of a company. Consultants provide support in the formulation of corporate goals, the analysis of competitive advantages and the planning of growth strategies. - Business model transformation
This involves fundamental changes in the way a company conducts its business. Changes in the market or in technology may require such transformations. Strategy consultants help to redesign business models in order to integrate innovations and respond to changing market conditions. - Economic policy
In this area, strategy consultants provide support to public sector organizations and governments in the development and implementation of economic policies. This includes fiscal policy, monetary policy and the planning of economic interventions. - Mergers & Acquisitions (M&A)
Strategy consultants are often involved in the process of mergers and acquisitions, from strategic planning and target evaluation to due diligence and post-merger integration. They support companies in understanding the value of potential M&A transactions and in shaping strategic alliances effectively. - Organizational strategy
This area focuses on the internal structure and governance of a company. Consultants develop strategies to optimize the organizational structure, improve corporate governance and support change management processes. - Functional strategy
The functional strategy comprises the development of specific strategies for various operational functions such as marketing, sales, finance, HR and IT. The aim is to
areas in such a way that they optimally support the overarching corporate goals. - Strategy & Operations
This area combines strategic planning with operational implementation. Consultants help companies to streamline their operations and improve performance through the integration of process management and technology solutions. - Digital strategy
With the advance of digital technology, digital strategy has become a crucial component of strategy consulting. It includes the development of strategies for digital transformation, the implementation of IT systems and the use of digital technologies to improve business results.
These core areas should not be viewed in isolation, but often interact with each other to provide integrated solutions to complex challenges. The ability to serve several of these areas strengthens the role of strategy consultants as comprehensive partners for their clients.
Typical projects in strategy consulting
Every consulting project begins with the strategy phase. Consultants work closely with C-level executives to research and prioritize strategic projects with the highest value to maximize shareholder value and business growth (usually based on profit margins or revenue).
The appointment of a new CEO is a common time to commission strategy consultants. The CEO usually wants to set a strategic vision for their tenure, often with a 5-year timeframe, to achieve a business goal such as a 20% increase in sales over the next 5 years. Strategy consultants then work closely with management to determine the best way to achieve these goals, based on competitors, market conditions, etc. Once the strategic direction has been determined, it is then up to the company and possibly the management consultants to implement the strategy.
Strategy consulting projects are usually much shorter than the implementation phase and typically last 4-8 weeks. This means that they are often fast-moving and heavily research-based.
Strategy consulting requires a strong ability for problem solving and mathematical analysis as well as creative thinking and a high degree of adaptability. Excellent interpersonal, time management and organizational skills are also required for strategy consultants to quickly interact with various stakeholders within a company and gather the information they need to make informed decisions.
The ultimate goal of strategy consulting is to provide clients with a clear path to greater market share and a competitive advantage in their industry.
Examples of projects in which a strategy consultant can be involved
- Organizational design: Develop a new/better structure for the organization, including all roles, line managers and directors to improve communication channels.
- Cost reduction: Reduction in the cost of raw materials or production of a product.
- Market analysis of new technologies: Market analysis and tactics for searching for new technology and competitors.
- Redesigning the business model: Innovative and unique strategies for renewing the existing model and restructuring the business.
- Pricing strategy: Development of competitive pricing models that fit the market.
- Market entry: Successful entry into a new market with a new product or service.
- Growth strategy: trend analysis and forecasts to formulate business development strategies including mergers and acquisitions.
Companies such as McKinsey, Boston Consulting Group (BCG) and Bain & Company, often referred to as the ‘Big Three’ of the consulting industry and collectively referred to as ‘MBB’, are considered the most competitive and established strategy consulting firms in the world.
Strategy consulting salary: This is how much strategy consultants earn
The salary of a Strategy Consultant in Germany is extremely attractive. The average basic salary in Germany, based on 31 anonymous
Glassdoor
is around €83,200 per year.
On average, Strategy Consultants in Germany receive an additional bonus payment on top of their basic salary. Overall, this results in a comprehensive remuneration picture that underlines the attractiveness of this position.
| Germany | Average salary |
|---|---|
|
Senior Consultant Strategy in Munich |
66.800 € – 88.900 € |
|
Senior Consultant Strategy in Stuttgart |
65.700 € – 87.500 € |
|
Senior Consultant Strategy in Essen |
63.200 € – 84.700 € |
|
Senior Consultant Strategy in Bonn |
63.700 € – 85.200 € |
|
Senior Consultant Strategy in Wuppertal |
62.900 € – 84.300 € |
|
Senior Consultant Strategy in Frankfurt am Main |
62.200 € – 83.400 € |
|
Senior Consultant Strategy in Nuremberg |
61.700 € – 82.900 € |
|
Senior Consultant Strategy in Hamburg |
61.400 € – 82.500 € |
|
Senior Consultant Strategy in Cologne |
61.000 € – 82.100 € |
|
Senior Consultant Strategy in Bielefeld |
61.000 € – 82.000 € |
|
Senior Consultant Strategy in Dresden |
52.900 € – 72.500 € |
|
Senior Consultant Strategy in Leipzig |
51.800 € – 71.200 € |
|
Senior Consultant Strategy in Berlin |
58.500 € – 79.100 € |
(Source: Stepstone)
Startegy consultant salary with bonus payments
With bonus payments, the salary of a strategy consultant with 2-3 years of experience in strategy consulting is an impressive €100,000 to €120,000 per year. This additional remuneration reflects the valuable expertise and contribution of these consultants to the corporate strategy and underlines the financial attractiveness of this career path. This makes it clear that a career in strategy consulting can be rewarding not only from a professional perspective, but also financially.
In another article by
consultingheads
on the topic “
Management consultant salary
“explains that the average salary of management consultants in Germany is around 74,602 euros gross per year, as a survey by Glassdoor in January 2023 shows. For career starters, this salary is around 52,000 euros according to the BDU.
In this article, we would like to provide you with salary ranges as a guide and explain how the salary as a Strategy Consultant is built up, what factors it depends on and how it can develop over the course of your career.
Salary structure in strategy consulting, including independent consultants
To understand how the salary of a strategy consultant is structured, including self-employed consultants, let’s look at the three main components that are relevant for both employees and self-employed consultants:
- Fixed salary / fee
The fixed salary for employed strategy consultants makes up the largest part of the total salary and is paid monthly. For independent consultants, this corresponds to the fee they charge for their services. This fee varies depending on the scope of the project, the client and the consultant’s experience. Self-employed people can directly influence their income by taking on more projects or negotiating higher daily rates. - Variable salary / performance-based bonuses
Employed strategy consultants often receive a variable salary that depends on the achievement of personal or company-wide goals. Self-employed consultants can use similar success-based models by agreeing with clients on success fees that are due when certain project goals are achieved. This promotes a high level of motivation and strengthens customer loyalty through shared success. - Additional services / individual benefits
While salaried consultants often benefit from additional company benefits such as company cars or further training opportunities, self-employed consultants have to organize these benefits themselves. However, they can deduct their operating costs from tax, which can be a financial advantage. In addition, they have the flexibility to choose their own working environment and tools, which leads to personalized benefits such as the choice of work location or more flexible working hours.
For salaried consultants, the fixed salary forms the basis, supplemented by variable bonuses and additional company benefits. Self-employed consultants, on the other hand, have control over their fees and can optimize their income and working conditions through performance-related bonuses, effective tax planning and individually tailored working conditions. Both groups benefit from a structure that enables them to profit from a stable income as well as individual performance and other financial and non-financial benefits.
What factors influence the salary in strategy consulting?
Numerous factors play a role in the salary in strategy consulting, which can affect both the level of income and its structure. Here are some key influencing factors that should be taken into account:
- Industry experience and expertise
Experience: Salaries generally rise with increasing professional experience, as experienced consultants take on more complex tasks and bear more responsibility.
Specialist knowledge: Specialist knowledge in sought-after areas such as digitization, finance or compliance can justify higher fees or salaries. - Company size and market position
Large consulting firms often pay higher salaries than smaller boutique consultancies, as they acquire larger projects at higher daily rates and have more extensive resources.
Market position: Companies that are leaders in their sector often offer more competitive salaries to attract top talent. - Regional differences
Urban vs. rural: Consultants in large metropolitan regions such as Munich or Frankfurt often receive higher salaries than those in rural areas.
International differences: In countries with a strong economy or high cost of living, salaries for strategy consultants can be higher. - Performance-related components
Bonus payments: These are often linked to the achievement of personal or company-wide targets and vary greatly.
Profit-sharing: Particularly in customer-oriented professions, bonuses for acquiring new customers or exceeding sales targets can make up a significant proportion of salary. - Qualification and training
Academic degree: A higher academic degree or specialized certifications can lead to a higher starting salary.
Ongoing education: Commitment to ongoing professional development can also lead to salary increases.
| Factor | Description | Average salary difference |
|---|---|---|
|
Industry experience |
More than 10 years of experience |
+20% to +30% |
|
Company size |
Large company vs. small boutique |
+15% to +25% |
|
Region |
Metropolis vs. rural region |
+10% to +20% |
|
Performance dependency |
High bonuses for target achievement |
+5% to +15% |
|
Academic degree |
Master’s degree or higher |
+10% to +20% |
|
Work experience |
|
|
|
0-2 years (beginners) |
|
Base |
|
3-5 years |
|
+33% to +25% |
|
6-10 years |
|
+25% to +20% |
|
Over 10 years |
|
+20% to +35% |
How do you get started in strategy consulting?
Going into strategy consulting can be a challenging but rewarding career option, especially for those who can think analytically and solve complex business problems. Here are some steps that can help potential candidates:
- Education and qualification
A degree in a relevant field such as business administration, economics, management, finance or engineering provides a solid foundation. In addition, specialized Master’s courses or MBA programs can deepen knowledge and increase attractiveness for potential employers.
- Practical experience
Internships or trainee programs in consulting firms are often the most direct way to get into strategy consulting. This experience enables them to develop relevant skills, build networks and gain a deep understanding of the industry. - Networking and mentoring
The use of networks such as consultingheads is crucial. More than 12,500 freelance consultants and interim experts who are part of the network provide an excellent basis for professional networking. Mentoring programs, workshops and networking events can also be helpful in making valuable contacts in the consulting industry and learning from experienced consultants. - Application strategy
A targeted application strategy is important. This includes writing a strong CV, writing customized cover letters and preparing for case study interviews, which are frequently used in strategy consulting. consultingheads can offer support here by providing resources that help to optimize these elements.
Through these steps and the support of consultingheads, ambitious candidates can embark on a successful path into strategy consulting and continuously develop both their professional and interpersonal skills.
Our goal is to thee top consultants:inside from our network to expert:inside of the groundbreaking
SiA
-program
to develop. This opens up excellent opportunities for all those who want to deepen their skills in strategic consulting and expand their Customer:inside want to offer more comprehensive services. The
SiA
-certification
not only equips you with the necessary theoretical knowledge, but also also provides you with all the practical toolsto master complex challenges effectively. This will prepare you to be at the forefront of the consulting industry and successfully expand your consulting business.
Expand your Strategy Consulting Toolkit
The SiA certification offers both theoretical knowledge and practical tools to master complex challenges. This enables consultants to deepen their skills in strategic consulting, offer more comprehensive services and successfully expand their consulting business.
