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Former management consultants can make great CEOs and senior leaders. But success isn’t guaranteed and some mistakes must be avoided. Claire Harbour-Lyell and Antoine Tirard have collected a selection of cases studies to illustrate the challenges faced by management consultants. In another article, we also discuss what happens to your salary if you decide to stay or leave in consulting. Are you looking for a senior position?Click here to browse all our live jobsWhile former management consultants represent only 5% or so of CEO transitions over the past ten years across the world, evidence from a recent study by Spencer Stuart would suggest that consultants are more than worthy of consideration for a role at the top. It would seem that, once at the helm of an organization, they tend to improve the condition between twenty to thirty percentage points better than their non-consultant counterparts, whether the company was in crisis previously or not. This does not necessarily indicate that all consultants should transition to CEO, but it certainly makes it worth examining a variety of stories, to explore the characteristics that lead to this kind of shift, and to discover the factors for success or failure. In this article, we do exactly that, looking at the story of four very different characters, all of whom have been successful consultants, as well as highly effective leaders.Little had prepared Thomas Bittner for his transition into consulting, where he found himself a junior consultant at McKinsey, aged 30, having already operated as Sales Director, Finance Director and even member of the Executive Committee, in a French steel company for Northern Europe. This was a time when McKinsey was moving towards more work in implementationof strategy, and so Thomas was of great interest to them, having a strategic brain and a top MBA, as well as deepexperience of a significant industry. Thomas asked himself repeatedly in the early months, “what on earth am I doing here?”, as he crunched numbers and carried out market analyses.However, as clients got to know of his existence, they started demanding to work with him, as he was the one who had real experience, as opposed to most of the other career consultants. The enjoyment he derived from challenging thinking and improving a lotof some of Europe’s and America’s greatest CEOs was tremendous, and he found it intellectually highly stimulating. However, he realizedthat it is easy to tell such leaders what to do, but far harder to make it happen. He was missing the implementation!Last year we held an event with Pizza Hut’s and Charles Taylor CEO’s discussing their paths to leadership. Have read of our takeaways here
So, influenced by the frequent calls of headhunters, who pointed out that five years of operations and five years of consulting was the “perfect storm” for another powerful change, Thomas decided to take up the challenge offered to him by one of his clients, Polychrome Corporation, whose CEO offered him the following comment for a month’s consideration: “If you are so damn smart, come and implement this strategy for me!” It took less than that time for Thomas to decide to accept the challenge, and he was delighted to return to a world of operations and implementation, as the VP for Europe of the company. He had also calculated that if you leave consulting before you have made it to Partner, you can be hired as a VP, but if you wait to leave until you have reached Partner status, you can only become a CEO, and there are far fewer opportunities for CEO roles floating around. Thomas wanted to become a CEO, and after effecting a total turnaround of the European operation over five years, his ambition became a reality, and he was appointed CEO, with a move to New York.The power relationships Thomas enjoyed in this role were of great excitement. Knowing that he could get the head of any significant investment bank to take his calls, or that he could chat with and influence a board member of any Fortune 100 company, was something he took great pride in, even though he recognizes that he missed the pure intellectual stimulation of consulting. He talks a great deal about how important it was to learn change management, and to deal with people, building coalitions, empowering individuals, leading by example, and communicating effectively. This challenge no doubt became the substitute for the missing intellectual side of things.After five years in New York, as CEO, Thomas and his family wished to return to Europe, having had a “great ride” across the Atlantic. It was relatively easy for him to find a new role as CEO, and he had a brush with posts at Arjo Wiggins and others, before accepting a place at one of the companies that eventually merged into steel giant ArcelorMittal in the early 2000s. This return to his first sector was a logical one, and he was able to combine the strategic vision with his leadership abilities, to aid a company in huge flux to remain at the top of its performance.At this point in his career, Thomas has chosen to live with a portfolio of activities. Upon “retiring” from CEO life a few years ago, he had the freedom, financially, to slip into golf and travel, but has instead chosen to combine teaching a self-crafted strategy course at business schools and inside corporations, with running an olive plantation, and acting as advisor to the Ashoka social entrepreneur network. He is firm in his belief that in this epoch, “there is no more retirement”, and continues to use his unique combination of skills to add value across the board. He describes his activity today as “tremendously exciting”, and perhaps sees a parallel between the change he has brought about in his own professional activity, and the change he managed in his earlier roles.While he recognizesthat consulting taught him a sense of urgency, he knows very well that he needed to learn about how to enforce change on those who (typically) do not want it, and this was something he could only develop by the doing. His portfolio career allows many still to benefit from this balanced view, and we hope to continue to read and learn from him for many more years!Rupert Warburton’s transition out of consulting was an easy one. An Australian, in consulting “for the usual reasons, of variety, experience and interesting colleagues”, he had always wanted to make something for himself. The thrill of creating was very attractive to him, and he took the time he spent doing his MBA at INSEAD to reflect on his wish to create capital value.After a few more years of consulting in London, Rupert had become highly aware of the damaging lifestyle involved in his profession, and talks with lucidity about those colleagues “on their third wives, and travelling endlessly”.With ten years of consulting behind him, he decided to buy some time and money by accepting a role at HSBC, so as to be able to create a company of his own within a few years. He had become disenfranchised and bored with consulting and felt motivated by the possibility of controlling his own destiny while creating value. The difficulty for Rupert lay in actually realizingthat he had made the decision and not yet acknowledging it. Once he did see it, however, it was “blindingly obvious”, and the only option was action.
By the late 1990s, Rupert had started his first company, based around coffee. He has tirelessly reworked his business model and honed an organizationwith a turnover of several million, that serves and has served coffee, variously, to corporate employees, to passengers on BritishAirways, and to millions of others.What did he miss when he first left the consulting and finance world? “The regular paycheck, of course! But more significantly, the power and brains of a team.” Rupert now sees and admits that in those early years of entrepreneurial activity, he wasted a lot of time. He was indulging his desire for the freedom he had so sorely missed and could have done things faster and better if he had chosen to. The realizationthat time is money hit him later than it might have!Consulting methodology has helped Rupert in his “modellingup” of the coffee industry and his creation of a whole new metric, not frequently used in the industry. He has used sophisticated techniques to become a “big player”, and to approach both clients and suppliers with increased confidence and credibility: “My clients are serious board members of large corporations, who are blown away by my stakeholder analysis of their situations. The faith they have in my professionalism derives directly from my consulting work. I am absolutely rigorous with regard to transparency on both performance and metrics, and I could not be that way without having done so much this way in my previous work.”Reflecting on the differences between the two worlds, Rupert is eloquent. He talks about how he hopes one day to hire more consultant types but sees the financial constraints of a medium-sized business as being good for identifying capabilities differently. He is immensely proud of his people and enjoys developing the best in every one of them. He has had to “unlearn” consulting jargon, of which he admits he was the king! After a period of frequent quizzical looks, he realizedthat simple terms, explained clearly, would work better in the café industry! These days, he is more often discussing “like for like” performance, than “NPV”, “CAGR” or a “deep dive”!Enjoyment and gratitude play a role in Rupert’s life now. While he admits that his business does take up more than the “one day a week” he likes to pretend, he feels tied to his business and states that his mood and outlook are necessarily linked to the fortunes of Caffe Kix. When asked whether he would return to consulting, his position is unequivocal: while he is happy to share his experience for the benefit of others, through boardand advisory roles, he has no interest in going back to the executive world. He has developed great resilience and is clear that the journey of an entrepreneur is one that takes longer than expected, can be lonely, and will not be what you imagined at the outset.A big shift in mindset has helped, letting go of a typical consultant’s tendency towards OCD, by “getting comfortable with being uncomfortable, letting go of some things I would have liked to control, and accepting that a day has been ‘good enough’”. Rupert has clearly engaged fully in his life as an entrepreneur, and if it were not for his sharp intellect, and crystal clear thinking about his industry and position, it would be difficult to imagine that he was ever a part of the corporate world, let alone consulting.
Christina Gutenberg also underwent a huge shift in mindset, as she joined one of the largest family-owned companies in Europe, though this was not a change she had particularly expected to make, as her vision of professional life had definitely been one of loyalty to BCG, her firm for the twenty-twoyears since she first started out in consulting. As a partner, with many high-powered clients, and some fascinating internal roles, Christina was not a likely candidate for excitingconsulting, though she had occasionally considered the optionbut never found a role that was sufficiently attractive to make her consider the jump. She enjoyed the intellectual stimulation and rarefied atmosphere, and the flexible working conditions as well as the interaction with significant leaders across industries and cultures.After a chance encounter with the chairman of this company, she was flattered and surprised to find how attractive it was to be desired for her own unique combination of skills and abilities and to be offered a C-level position. She was also given the chance to make a choice between two different business units and decided to take the more challenging one, in the automobile business, about which she knew little. And thus began a lengthy and admirably complete transition period! Christina read more than thirty books on the industry and quizzed all her former colleagues who had made similar moves out. She took the time to get coaching on both the industry and leadership angles of her new role and ensured that her family and herself were able to settle well in the new location, far from where, or how, they had previously been living.While Christina had had a high-levelinteraction on exchanging with the company, she did make a common mistake once inside, of assuming that she would continue her privileged relationship with the Chairman. Partners at consulting firms become accustomed to having CEOs and Chairmen on speed dial, and this assumption was embarrassing to Christinawhen she wrote to the Chairman for advice and guidance, and he very firmly steered her towards her immediate boss! She has quickly learned that as a sector non-expert and an outsider, managing by frequently keeping your mouth shut, and being modest, is a good way to survive.Being an outsider is something Christina has had to get used to, as she is very different in background and makeup to her new colleagues. While this felt uncomfortable at the outset, she now realisesthat it is an asset, and she can use her difference to get things done, in an environment where speed and dynamism are not what she was used to. The other main challenge Christina has faced is that of entering a company that was actually doing rather well, and did not need “fixing”. Figuring out what she actually can change is an ongoing challenge and one she struggles with occasionally. She has learned to have a short term and long term view of what and how to change, with very different rationales behind them!Although it was difficult to leave BCG after almost a quarter of a century, Christina says that once she had “smelt” the opportunity, she knew there was no way she could stay. However, she did use the BCG philosophy about its alumni to her advantage. “Once a BCG-er, always a BCG-er” is their device, and this has certainly helped her both during her transition out and since she has been in her new operational world. Coaching, references and other information and opinion have been of great value to her all along the way. Her old (and still valid) networks can never be matched by what she builds from here on in, but they are still useful, so she takes advantage of that, however she can.
Christina does seek ever-greater opportunities to learn and develop, so while she finds her current challenge sufficiently complex for now, she may well be tempted in other directions subsequently. At this point, she is learning to identify and integrate into the “soul” of her new company and using her difference to affect whatever appropriate change she can.Unlike our previous three subjects, Graham Rich, a British former general practitioner, turned influential change guru in the UK’s health policy, fell into consulting by accident!Although he had done an MBA, incidentally in the same class as Rupert, he had done so in search of self-development and happiness, and not looked with any seriousness at the possibility of becoming a strategy consultant, as so many of his friends at INSEAD had. After a short period managing a team in a healthcare reform think tank in the US during the Clinton administration, and where he got his early experience of significant research and paper-writing, Graham followed his wife to Boston, where she was to study, and he wished to find work. What better employer than the Boston Consulting Group?
A self-confessed “non-Dean’s List” character, Graham had not envisaged this possibility, but was encouraged to join by an enthusiastic and supportive senior partner, and was immediately heartened to find himself in the healthcare practice, surrounded by driven, energetic and international colleagues, all doing interesting things. What was harder for him was to find himself back at the bottom of the pile, carrying out analyst tasks, when he actually knew and had good relationships with many of the CEOs in US healthcare, both current and non-clients! He found himself on a variety of projects, many of global scale, and fell quickly into a frenzied routine of travel all week, every week.As he describes it, there was one weekend in which all of Graham’s ideas crystallized.He and Sarah, his wife, had travelled from East to West Coast for a two-dayBCG healthcare conference, from which they got home at 1 amon Monday morning. Four hours later, Graham was on the way to the airport, to attend client meetings in Germany. When he returned two days later, and his wife, who was pregnant at the time, told him that she still felt tired from the weekend, he realizedwhat an absurd feat he had just accomplished and seriously questioned his sanity! With this uppermost in his mind, he realizedthat he wanted a “proper” job again, with a more reasonable lifestyle, but also budgets, staff and implementation!A return to the UK seemed logical, at this point, and into a role in the National Health Service which came up, as CEO of a region of the country. The change was, as Graham describes it, “like going from flying to landing in treacle, and then learning to swim!” Nevertheless, he got a great deal done, and moved on to a second role, as COO and then CEO of a large teaching hospital.Once again, the alumni network management of these consulting giants came into play, and his former colleagues at BCG invited Graham to rejoin, to co-lead a new initiative, fourteen years after he had first joined! At that point, he refused, saying he was still very happy introducing all kinds of new policies and actions and living a manageable lifestyle to boot! However, six months later, he had fallen out with his Chairman and tentatively asked if the offer might still be open… BCG welcomed Graham with open arms and allowed him to negotiate his own terms. He is no longer part of the consulting hierarchy, and acts, in his words, “as a partner-like buddy”. He does not work more than half-time for BCG and has just recently shifted his status to self-employed. In this way, Graham manages to keep the aspects that are important to him, such as business building and “seeing things through”.Graham has entered, as he puts it, “serious portfolio career territory”, now holding several non-executive directorships, and has learnt to be happy with whatever he is doing at the current moment. Unlike some of our other subjects, he has no clearly mapped out a planfor the future but feels confident it will be a good one. He has a clear set of criteria for new opportunities, which he shamelessly imposes on whatever might come up, so he knows that he can make good choices from now on. He also has a simple attitude to the less attractive aspects of his past career, and a strategy about how to avoid these in the future. Suffice to say he will be spending more time with his family and on good health, and less on impressing others and being overly competitive!
While we have talked about four successful and happy “former” consultants, it is worth noting that many consultants never make the transition, and in some cases, the failures have been significant and painful.We know of an example, whereby a senior partner from a very prominent strategy consultancy joined a large pharmaceutical company, as Head of Strategic Planning, reporting directly to the CEO. Within a short time after joining, he had launched a series of initiatives, creating confusion and chaos in an organizationthat was already riddled with complexity. He demonstrated very few skills in communication or empathy, and thus alienated the majority of his team and peers, and did not endear himself to the CEO either. To top it all, ironically, he ended up dramatically increasing the spending on external consulting, which was, of course, the opposite of the intended effect. By this time, the CEO had lost patience and asked him to leave. He has since returned to the world of consulting, but this time on his own. His debacle is still remembered vividly, fifteen years later, with a mix of horror and humor, by those inside the healthcare company and we can only imagine that the episode does not figure in the most glorious moments of the consultant’s life either. Not all of those cut out for great careers in consulting are destined for equal success out in the “real world”!Our four main stories amply demonstrate success in this kind of consultant to C-level executive transition. We have shown you four very different individuals, navigating in and out with confidence, and very clear ideas of what their future looks like, however, defined it might or might not be in the detail. There is not enough science in this area for muchabsolute conclusion… However, what we do know is that a certain proportion of former consultants positively thrive on this kind of liberating transition out, and some of them even manage to re-create that kind of freedom when re-entering the world of consulting. What we know less about is the kind of character that will or will not succeed in this area. It is too early to tell on this front. There are many mistakes that a high-level consultant can make on transitioning into operational roles, and the more these can be understood and anticipated before making the transition, the more likely it will be a success.Claire Harbour-Lyell is a global talent expert and coach, who supports those planning or undergoing significant career transitions. She loves to help consultants to make their move “out”, and to support them as they plan, implement and settle into their next move.She can be reached here, and you can find out more about her work onwww.culturepearl.biz Antoine Tirard is a talent management advisor and the founder of NexTalent. He is the former head of talent management of Novartis and LVMH.This article was also published on INSEAD Knowledge.
We look through the changing needs of clients, increased hiring of consultants in-house and the rise of consulting boutiques. Read more...
In this article, we look through four trends that we’ve seen over the past few years:
- The changing needs of clients
- Increased hiring of consultants in-house
- The growth of large “one-stop-shop players”
- The rise of smaller, more flexible consulting boutiques.
Finally, we look at the immediate reactions from strategy firms, as well as what we think is going to be required for the industry to avoid Levitt’s “Marketing Myopia”. Strategy firms have clearly started to adapt, but in an increasingly digital world, they need to think of delivery models beyond just throwing smart people and industry experience at the problem. To do this, they must fully embrace technology.
Finally, we look at the immediate reactions from strategy firms, as well as what we think is going to be required for the industry to avoid Levitt’s “Marketing Myopia”. Strategy firms have clearly started to adapt, but in an increasingly digital world, they need to think of delivery models beyond just throwing smart people and industry experience at the problem. To do this, they must fully embrace technology.
On the first day of our consulting “mini-MBA”, we were taught about marketing myopia – a term coined by Theodore Levitt. It explains the pitfalls of focusing on marketing strictly from the standpoint of selling a specific product rather than from the standpoint of fulfilling customer needs.
At some point in its development, every industry can be considered a growth industry, based on the apparent superiority of its product. But in case after case, industries have fallen under the shadow of mismanagement. What usually gets emphasized is selling, not marketing. This is a mistake, since selling focuses on the needs of the seller, while marketing concentrates on the needs of the buyer.
As I re-read this paragraph now, I can’t help but feel it’s a message to be heeded by strategy consulting firms. Having helped their clients to overcome marketing myopia for years, there are some strong indicators that the early “disruption” we’ve seen in consulting, has only just begun.
As the world’s online interactions continue to grow, the needs of a large proportion of clients have changed.
There’s always been a steady flow of consultants into the “strategy” teams of corporates. In fact, most graduates choose consultancy to “open doors” in industry. Traditionally, consultants would make their first step into a strategic role, and then look to move into a commercial role when they understand the business fully and had built up the necessary stakeholder network.
However, what’s starting to change is consultants are being hired into non-strategy roles. As the skills of consultants (analytics; insight; communication to senior-level stakeholders) become required in more areas of the business, consultants are increasingly being hired into commercial/ operational roles straight out of consulting. Equally, as consultancy becomes more functionally specialized (i.e., supply chain consultants; tech strategy consultants), there are more obvious entry points.
This is a self-fulfilling prophecy: as more consultants are in these teams, they look to hire “what they know” (i.e., more consultants). As numbers increase, not only is there less “need” for external consultants, there is also more competition for this talent.
The largest growing strategy firms over the past few years have been at the Big 4. Through the acquisition, and hiring senior partners, they are building strategy teams out of alumni from the familiar strategy brands (i.e., hiring from McKinsey, BCG, Bain, Oliver Wyman, LEK; acquisitions of Booz and Company (PWC) and Monitor (Deloitte)).
The Big Four are able to boast an impressive point of difference: these strong strategic minds are backed up with scale. On the functional side, they become a one-stop-shop: use them as a trusted advisor across accounting, tax, legal, strategy and operations/ implementation consulting. This scale is positioned as not only offering a more connected, end-to-end solution but also as providing large savings in cost.
On the people side, their immense size means they have more flexibility. They can offer smaller projects, and more flexible models – as capacity can be more easily managed.
The other exciting development is the rise of freelancers and small two to three-person boutiques. This has become a popular career choice, offering more flexibility and independence. At one end you have boutiques, who staff whole teams and are positioned as direct competitors of the strategy firms. What’s less publicized is the smaller boutiques and freelancers.
At Movemeon, we are seeing a lot of interest in either a junior manager resource (stand-alone; good stakeholder management skills) or putting together small teams (manager and two analysts) to deliver strategic projects. Whilst the cost of these projects might appear very different to a traditional strategy consulting project, the set-up and delivery might not be all that different. While it’s unlikely these small boutiques/ freelancers will attack the core of strategy consulting work (i.e., critical Board decisions), the periphery of work that has slowly built up over the years is very much in danger from this more flexible, cost-effective model.
There are some notable reactions to the changes in the market. Not only are we seeing a new series of business innovation models, but consulting firms are also looking at new ways to have access to a larger, more flexible workforce.
The new innovation business models were well documented in the HBR article “Consulting on the cusp of disruption” in October 2013. This trend has continued, with new implementation, operations, analytics, benchmarking “arms” to the top strategy firms. Typically these are operating under the strategy brand name (i.e., McKinsey Solutions; McKinsey Implementation), but there are a few subsidiaries (i.e., Finalta is a subsidiary of McKinsey focused on benchmarking in FS). These are going to continue to develop, and am sure are a large part of the disruption we are going to see.
However more recently, another interesting trend has occurred. Consultancies are starting to respond to the requirement for more flexible delivery models. No longer is the “manager plus 2” model as relevant to some situations. Clients need longer-term engagements, typically for less intense periods. As the work becomes more functionally based, it also becomes more entrenched with the business. As such, things will move more slowly. No longer is delivery seen as buy-in from the excess – it’s delivering change to these functional areas, which will always take longer to embed.
We’ve noticed two interesting trends in consultancies looking to offer more flexibility:
Consultancies grew rapidly over the past two decades. As a result, the share of work that is classic strategy has been steadily decreasing and is now about 20%, down from 60% to 70% some 30 years ago, according to Tom Rodenhauser, the managing director of advisory services at Kennedy Consulting Research & Advisory (Consulting on Cusp of Disruption, HBR). If strategy consultancies are going to keep their current scale, they need to innovate to keep this non “classic-strategy” periphery.
Consulting has been on the cusp of disruption for two years now. Whilst there are clearly changes afoot, we think this is just the beginning. We expect to see further hollowing of the centre, with more specialized firms/ freelancers and continued consolidation of larger firms. We are also expecting freelance to continue its growth, and will increasingly take the more peripheral work from the larger consultancies.
However, for us, the most important change that needs to happen is more flexibility in delivery. Clients needs have changed. Whilst steps are being made to offer more than just traditional consulting teams – there needs to be more innovation. Consulting needs to move away from smart people helping to solve problems and embrace more technology – the ability to provide products for their clients to provide them with solutions to their problems.
Strategy consultancies can keep the “periphery” (non-classic strategy work) they have grown over the past few decades, by providing “products” that serve their clients over the long-term. Strategic advice can then take the form of shorter projects focused on solving particularly thorny issues. Given the exciting innovation and number of startups in the space, expect some acquisitions in the not too far future. Consultancies will start to see innovative products not only as high-margin delivery lines but as critical to continuing to provide their high-end advice.
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Before the interview, there are several things you can do to give you the leading edge over other applicants. Heres Movemeons top tips to help prepare you
How to prepare for interview success. Job interviewing never seems to get any easier, even when you have been called for more interviews than you can count. Before the interview, there are several things you can do to give you the leading edge over other applicants. Being prepared is often so simple and so obvious that sometimes we don't pay enough attention to it. This can be the difference between securing and losing your ideal job.
There are two types of research that you can do before attending an interview:
An early job interview question, asked to assess how much you have researched the company, is: “What do you know about this company?” or “Have you heard about this company before?”. A rapid answer to this question is critical as it determines their first impressions and can determine the ‘tone’ of the rest of the interview.
For this reason, we always recommend you find the answers to some of these questions, and you do as much reading as possible about the interviewers and the company ahead of the interview.
Below are some questions that can help you do this:
Navigate the company's website in order to get clear information about it, do not overload with information that you don’t understand. Having the correct answers to the questions above can make the difference between you and other candidates.
Now that you've got enough information about the company, you should also carry out some self-assessment about the person you are and the skills you have. Then think about the answers that you will provide to typical interview questions.
Be prepared for the type of interview you are attending, e.g. if you are going to be presented with a numerical or logic test, do some practice ones online.
Some questions that you may want to be able to answer before the interview are:
Now that you know how and what to prepare, you should also remember that it's very important that you look spontaneous and fresh for the interview.
You should:
Our post on how to get the interviewer to like you might interest those of you looking for some more help.
We wish you all the best for your next interview!
At Movemeon, we connect (ex) consultants and freelancers with job opportunities, advice & events. Register now to view and apply to jobs, for insider advice & networking/industry events.
Why do so many consultants start successful businesses? Part 2 of our interview with the founders of Qonto, Innovafeed, Hublo, LBF, Simundia and Movemeon
Jumia ($824m), Monzo (£325m), Transferwise ($773m), Funding Circle ($746m), Zopa (£360m), Qonto ($151m), Gocardless (£95m), Jobteaser ($75m), Innovafeed (€55m. Just some of the most well-known and celebrated start-ups. Four have reached unicorn status; the others are hoping to. And they were all founded or co-founded by ex-consultants.
In part 2 of our article series, we look at the way some of the key skills developed as a consultants help with founding successful businesses. We’d like to start by thanking the following for their time and great insights: Alexandre Prot (Ex-Mckinsey & Qonto founder), Aude Guo (Ex-Mckinsey & Innovafeed founder), Antoine Loron (Ex-Roland Berger & Hublo founder), Martin Pellet (ex-Kearney & LBF founder), Grégoire Schiller (ex-Roland Berger & Simundia founder), and Nick Patterson (ex-McKinsey & Movemeon co-founder).
Movemeon was founded by two Mckinsey consultants, and therefore our work as a team has been influenced by strategy consulting. Problem solving and prioritisation are omnipresent in our day-to-day.
Those two skills are central to consulting work. Diagnosing issues (issue trees, driver trees) and using data to prioritise execution are the central aims of any consulting project.
Alexandre said that his consultant background helped him to structure his reasoning to tackle any complex problem. Aude and Martin agreed on this point: in an early-stage start-up you keep resolving problems, such as how am I gonna finance this project? What type of offices should we choose? More generally, how do you do things efficiently?
Grégoire highlighted that consulting gives you the structure to effectively prioritise using concepts like 80/20. Aude defined the ability to prioritise as hugely important. She said “It’s mostly about what you don’t do, not what you do. You need clear criteria to make decisions (not only for yourself but also understandable and acceptable to others; and something that is engaging).”
If the network is a pretty obvious benefit of consulting, it's surprising how often effective communication has been described as a key skill learnt from consulting.
Consultancies have unparalleled alumni networks. There is a shared brand that means people are prepared to not only meet, but give you advice, too. This is invaluable in the early days, as you look to further develop your idea and, perhaps more importantly, make your first few sales (if your product is B2B). Grégoire remembers using Roland Berger’s network for closing first clients. Unlike business schools, consulting networks are usually more senior than you and therefore unlock way more opportunities when you’re an early-stage founder.
Working with senior people in consulting trains you in effective communication. Aude said “communication is key, as 80-90% of the time being a founder is about aligning people and getting to the point quickly. Our business has people of very different professional backgrounds and needs; you need to quickly understand and address what is important for each person in a way that is relevant for them to get them on board: how do you convey the real message (get to the point)? It’s about not spending one hour on a topic if it can require only 3 minutes.“
Related to communication, stakeholders management is a key skill developed in consulting. You need to be able to communicate in the right way with everyone: investors, clients, suppliers.
Consulting and entrepreneurship are still obviously two really different worlds. Grégoire empahsised that you have to unlearn consulting to do entrepreneurship as the way you make decisions can be very different. Nevertheless, consulting is undoubtedly a great training ground for entrepreneurship.
It trains you in many key skills needed by early-stage founders: communication, stakeholder management, prioritisation & problem solving. Having worked with 100+ start-ups, mostly founded by ex-consultant, in the last 2 years, and helping to fill roles like Director of Sales Operations for 360Learning, Country Manager for Hublo, Head of Partnerships for Luko, it's clear that consultants are a great fit for start-ups. Speaking to Alexandre, Aude, Antoine, Grégoire and Nick only reinforced that the transferable skills you get from consulting are essential for start-up success.
How does being a consultant naturally lead many to founding their own start-ups? We looked at this question in Part 1 of this series
We've also published an in-depth interview with Innovafeed founder Aude Guo here
Qonto founder Alexandre Prot spoke to us about Qonto & how he uses his consulting experience here
At Movemeon, we connect (ex) consultants and freelancers with job opportunities, advice & events. Register now to view and apply to jobs, for insider advice & networking/industry events.
Quite a few companies have had to put roles on hold due to the uncertainty of COVID-19. However, very few processes have stopped completely.
Despite the UK only being in lockdown for seven working days of Q1, the country has seen the biggest economic contraction since the 2008 financial crisis, with things set to get much worse in Q2. This is a common picture across all global economies, as certain industries have been temporarily halted.
In any recession, recruitment is often an early indicator of what is to come. Companies put off hiring until uncertainties decrease. However, they don't necessarily wait for financials to improve - they hire based on what they project their future financials to be. So are there any interesting early signs from what we're seeing in recruitment across strategy, insights and commercial roles?
(1) It’s more a question of when, not if, hiring resumes:
As expected, many companies introduced hiring freezes and put processes on hold when the pandemic initially struck; however, very few were suggesting they were going to stop hiring altogether - it was more a question of "when" and not "if".
This indicates companies are still expecting a relatively fast recovery to at least 90% levels. Businesses have been paralysed by the lack of certainty, not wanting to make decisions which could turn out to be mistakes, but most will still be financially healthy enough to begin hiring in earnest when timelines become clearer. We are therefore anticipating a spike in hiring as opposed to a slow return to normal volumes, as the impact of coronavirus lessens and lots of roles are taken off “hold”. Whilst it might not be quite a “V-shaped” recovery, businesses are certainly not expecting an “L-shaped” one.
(2) Very uneven impact across industries:
Although the economy has seen a drastic fall overall, with 14% contraction forecast for 2020, some industries have fared better than others.
Travel and hospitality are some of the worst-affected sectors, along with non-food and non-pharmaceutical retail. Companies in these sectors are the few that have had to completely stop hiring, likely until the end of the year for some of those we’ve spoken to. However, there will be light at the end of the tunnel for those who make it through, as the millions of people who have been confined to their homes throughout lockdown look to go out and enjoy themselves as restrictions are eased.
Other businesses, especially ones that can operate online or provide essential services in the fight against COVID-19, have been less affected by the confinement. For example, we’ve found eCommerce and healthcare companies have been hiring in earnest, as they expect behaviours to have been permanently changed.
The virus has had a mixed impact on charities, with many left reeling and stopping hiring across the board, whilst others have experienced increased prominence and donations. Overall, they have seen a 48% decline in voluntary funding, whilst simultaneously managing an increased demand to support those most badly affected. In order to do our part in supporting these institutions, we’ve been placing pro bono freelancers, free of charge, into companies directly supporting our communities during the pandemic. We expect charities to make a healthy recovery once the worst of the pandemic is over, given a renewed appreciation for their value, but would encourage you to get in touch if you know of any projects we could help to staff.
(3) We’ve seen resilience from the biggest and smallest companies; the middle have been hit hardest:
The impact of coronavirus has also not been even across the different sizes of business. We’re increasingly seeing the largest corporates and smallest, most nimble start-ups, having most resilience to this shock.
It’s understandable that large corporates, with plenty of cash on balance sheets, have been able to protect themselves. Many are able to benefit from the crisis, by actively pushing hiring, finding great talent and setting the business on the right trajectory over the longer-term.
Perhaps more surprisingly, small, agile businesses are also still able to grow as long as they're not in the worst hit industries, since they have been able to make decisions and adapt much more quickly. Given lower overheads, they are also able to substantially grow market share as people look to more cost-effective alternatives.
(4) There's great talent getting more time to have their interest piqued
The companies that are in a more resilient position have found now is a great time to be recruiting. On Movemeon, we have twice beaten our records of the number of active candidates and the volume of applications within a week. So there is clearly more talent supply in the market.
What is potentially even more interesting is that we are seeing a lot more activity from people currently in jobs. This is likely a result of increased opportunity for reflection at home, allowing people time to think about their options and to look at what else is out there.
(5) Companies turning to the flexibility of freelance
The uncertainty of this period has meant that companies of all sizes, in many industries, have had an almost impossible task in predicting what the future of their businesses will look like. Decision-makers haven’t wanted to commit to permanent hires to fill gaps and have instead turned to hiring freelancers, who can fill a need without the risk. This is evidenced by the 43% increase in the number of freelance roles posted on movemeon.com in March & April compared to the same period last year. We’ve already seen a trend towards hiring freelancers over the last few years, but we expect this trend to accelerate over the coming months.
Conclusion
It’s unsurprising the hiring picture is very uneven across industries; the controls on how people interact socially will not impact all companies equally. What is more interesting is two-fold:
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Why do so many consultants start successful businesses? Interview with the founders of Qonto, Innovafeed, Hublo, LBF, Simundia and Movemeon
Jumia ($824m), Monzo (£325m), Transferwise ($773m), Funding Circle ($746m), Zopa (£360m), Qonto ($151m), Gocardless (£95m), Jobteaser ($75m), Innovafeed (€55m). Just some of the most well-known and celebrated start-ups. Four have reached unicorn status; the others are hoping to. And they were all founded or co-founded by ex-consultants.
In this article series, we look at why there are so many consultants founding successful businesses. We’d like to start by thanking the following for their time and great insights: Alexandre Prot (Ex-Mckinsey & Qonto founder), Aude Guo (Ex-Mckinsey & Innovafeed founder), Antoine Loron (Ex-Roland Berger & Hublo founder), Martin Pellet (ex-Kearney & LBF founder), Grégoire Schiller (ex-Roland Berger & Simundia founder), and Nick Patterson (ex-McKinsey & Movemeon co-founder).
“Consultants that started with me at McKinsey had two things in common: firstly, they were some of the highest achievers I’ve met; secondly, they didn’t know what they wanted to do.” (Nick)
Consulting attracts high achievers as it is one of the most prestigious careers post-university. This is partly because the brands are so well-known across industries, but also because it is recognised as a career that opens doors.
The combination of high achievement motive, and uncertainty around what you’re looking to do - not a single founder interviewed had entrepreneurship in mind when they joined consulting - means there are a lot of consultants who look to leave after a few years.
Turnover is extremely high in consulting, and whilst some of that is driven by “up or out” policies, the majority of the people leaving do so because they didn’t want to follow the track to Partner. And this is commonly accepted within the business. People can therefore talk openly about leaving, and in return receive great advice that gives you the confidence to launch businesses. Interestingly, both Nick and Alexandre mentioned that consulting gave them the confidence to launch businesses.
Finally, and that’s more an explanation of numbers rather than success, consultants know they have a strong employer brand to fall back on in case it goes wrong. This also means you have some very marketable short-terms skills - the option of freelancing to supplement your income from a new business gives you more liberty to try and start something.
The myth that consultants aren’t do-ers is regularly parroted. However, from what we’ve seen of peers and the consulting alumni community, quite the opposite is true.
In the early days of setting-up Movemeon, the most common challenge we’d hear from potential employers was that they didn’t want to hire consultants. They were concerned that, whilst they were very good at advising, they weren’t good at executing.
We couldn’t agree more on the importance of execution, but the common misconception about consultants not being good at delivery is just that - a misconception. Martin said that the high day rates charged by consultancies (especially strategy houses), and the high standards demanded by boards of large businesses, mean consultants have an obligation to deliver results and have to learn to deliver at pace.
On top of being good do-ers and dealing well with time pressure, consultants are also particularly good at multitasking. Alexandre, in the early days of Qonto, was able to work on strategy, finance, management, marketing and even office management. Antoine also highlighted that in a similar way to consulting, when you’re an early-stage founder you learn by doing.
Being good at multitasking, being good “do-ers”, and working with tight deadlines, it looks like early-stage start-ups have more in common with consulting than what we would have expected.
In the second part of this article - to be released in two weeks - we'll look at the key skills developed in consulting that help you launch and grow a start-up.
We’ve also published an in-depth interview with Innovafeed founder Aude Guo here.
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Interview with Aude, Co-Founder of InnovaFeed, a biotech company that produces a new source of protein from insect rearing.
InnovaFeed is a biotech company that produces a new source of protein from insect rearing for animal feed and aquaculture in particular. The business is focused on a more sustainable future: using unique technological expertise to place the insect at the heart of our agri-food system and restore it to its natural place in our ecosystem - that of recycling nutrients to then feed fish, birds or small mammals. The business has raised EUR55m a. Here we talk to Aude Guo, ex-McKinsey, and one of the co-founders.
Innovafeed are currently hiring for Directeur de l’Excellence Opérationnelle through Movemeon.
Our main focus is to succeed in the “scale-up phase”. We are going to have the largest insect factory in the world launching this summer. This will help us to validate the model at an industrial scale.
In parallel, we also need to succeed in the scale-up of our organisation. The business has grown very fast in the past few months (we’ve tripled in size in 10-12 months), which is great but brings scaling challenges. We need to grow in size but to keep the agility and momentum to maintain the excellence in execution we are recognized for. We’ve found it’s been really important to have:
(1) More structure and processes;
(2) Build and consolidate the culture we’ve developed over the last 4 years.
A big change I’ve felt personally, is that I now don’t know everyone joining the business personally and with one office in Paris and two factories in the North of France, this will only become harder. Inherent in this is the challenge to ensure the values and culture remain the same - it becomes a question of how do you foster the same culture across teams of people who may never meet and who work in very different environments.
In the longer-term, we believe we can have a huge impact on the environment and help the trend of people sourcing food more locally. Climate change is one way the earth is showing its not happy. There’s a huge protein issue to be solved (70% is currently imported). The team are energised by the meaning and sense of the project.
For the leadership team our 5-year targets are:
We are in a rather unique position, where there is no question the market exists - it’s more a question of how do we get to capacity quickly. We need to build momentum, and to do this, speed and agility will be key.
It’s something that is really important to us, so we’ve invested a lot of energy in trying to solve this challenge. The main challenge we have had is figuring out how to maintain the sense of belonging and how to be together as a team while working remotely. Some strategies we gathered during the past months:
-> Remote often means more meetings, not fewer: investing more in personal touch-points was necessary to understand how everyone was doing and to keep everyone on board. Working remotely actually meant our manager spending more time with the team and an additional workload.
-> Meeting formats needed to be adapted to enable quality interactions: While video-conferencing tools were able to efficiently replace many physical interactions, some meetings involving larger teams were difficult to carry out remotely. For instance, we had to find a way to celebrate the company’s anniversary and video-conferencing just couldn’t convey the same energy. We came up with more personalized content sent out to every team member’s home combined with short talks and fun activities (including a virtual commented tour of our new factory as it was completed).
-> Importance of physical contact: As France opened up again, we took the decision to keep our offices open (especially for people who don’t have the right conditions to work) by establishing drastic hygiene norms, rearranging office layout and controlling the number of people present. , Physical contact is still so important. It often changes the nature of the meeting and is critical for the team to maintain the bond.
My experience at McKinsey was hugely beneficial, and I called upon the consulting toolkit regularly. In particular:
I hadn’t decided to do anything entrepreneurial when I was at McKinsey. Whilst my father had been an entrepreneur, I didn’t think it was the route I was going to take.
I actually found it really hard to leave McKinsey. I wouldn’t say I think of myself as an entrepreneurial type, instead I'm driven more by “how can I have the most impact?” I wanted to do something meaningful and push myself. The reasons I left McKinsey was the sense of the project and the team of people I had the opportunity to create the project with. I would say that the latter is even more important to me. I believe that if you are with the right people, you will make the right choices for your project and give it meaning. I was convinced to join by my associates.
This has continued - people join Innovafeed because of the meaning of what we want to achieve and because of the people who joined us. It’s been something quite powerful and we are really proud of this team . You can’t be energised by what you’re doing alone; it’s the people you work with. They give you energy, and you’re driven by not wanting to let them down.
Yes - definitely. It’s more about the ability to build relationships quickly with different types of people. You get that from consulting. You are able to engage with your network quickly.
It also helps that some of our investors were former colleagues. They’ve been really supportive, and given some great advice.
The Alumni Network was very important to us, but we were also able to engage with a lot of people outside of that network, by using the consulting skillset around communication and building relationships.
Yes - we’ve hired a lot of ex-consultants, and have found them to be extremely effective. The main reasons being:
Start finding the right people early. It’s so important to get the right people. You need to know what you want (i.e., vision), but the key thing is finding great people to achieve that vision.
If I were to start again, I’d recruit the organisation we have today faster. I was reluctant to hire overqualified people for fear of not having ambitious enough projects for them, but that actually never happens . The more ambitious and capable the people are, the more they will open up new horizons in your thinking.
No challenge is too small so don’t be afraid to get the best people.
I imagine that thinking all day long about market trends and other people’s businesses gives you ideas about the kind of business you would want to create.
My personal motivations for starting a business were wanting to prove to myself that I could do the things I was advising others to do and do it with the people I really wanted to work with. I also wanted to be judged by what I create and do rather than by the fact that I was working for a well-known company.
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I am the founder and CEO of allplants - and having started cooking up remixes of my favourite dishes in my home kitchen ~4 years ago, now we’re a team of 90+ serving over 20,000 meals a week. I absolutely love bringing together brilliant people on a mission to fix a socially intractable problem, and designing a product and experience for millions of customers to love - previously launching Africa's first mobile bank (M-Shwari - now used across sub-Saharan Africa), and more recently East Africa’s fastest-growing retail healthcare chain (Penda Health).
Before jumping into the world of venture building I started life as a business analyst at McKinsey in London, a great opportunity to cram 5 years of learning into 2, and mainly to realise that I am built to do (I struggle just stopping at advice!).
WHAT DOES ALLPLANTS DO AND HOW HAS THE COMPANY GROWN?
We make plant-based living exciting and easy, delivering delightful, healthier food from our kitchen to your doorstep.
We use bold flavours and hyper convenience to bring more plants onto plates across the UK, inspiring us all to eat healthy and nourish the planet.
As climate awareness grows exponentially – and the health & wellness industry continues to rise – #vegan has become the largest social movement on Instagram of all time. The science is irrefutable. Eating more plants is the #1 way to help yourself and our planet thrive.
That’s why, at allplants we’ve started with food: delicious, simple, made from plants. Over 65% of the UK are now flexitarian, and plant curious people already spend +£100bn on prepared food globally, growing +20% pa. This new, plant-forward category is ready for leadership.
We’ve grown (sometimes excruciatingly!) fast in our first 3 years. Now, we have served +1 million meal-times from our kitchen and digital platform to households nationwide - winning awards for culinary excellence (incl. four Great Taste Golds!) and earning consistent 5* customer ratings. All our food is created in small batches, by our in-house chefs enabling rapid innovation, margin control and full-stack sustainability (carbon-neutral deliveries, eco-forward packaging and passion in every meal).
In 2020 we are poised for accelerated growth, rapidly shifting gears to deepen market dominance in the UK, primarily via eCommerce and subscription - while preparing for international. To enable this, we have launched Europe's largest dedicated plant-based kitchen in North London, and also recently launched two whole new product categories – breakfast, desserts – with more to come.
We’re already supported by leading venture capital funds (Octopus Ventures and Felix Capital) and angels who've built an array of +£1B food, media and lifestyle brands. Our plans for the next 10 years and beyond are bold, delicious and daring, with all energy focussed towards taking plant-based living mainstream.
WHY WAS ALLPLANTS BORN?
Around four and a half years ago, my brother Alex and I found ourselves tumbling down the rabbit-hole of discovery about the devastating impact of animal agriculture on the health of our planet - and having always thought of myself as an environmentalist I quite quickly realised I’d have to give this “eating plants” thing a go.
Despite initially imagining a plate of limp lifeless steamed veg, discovering how to eat plant-based became a wonderful adventure, Experimenting in the kitchen or hunting down the lastest vegan pop-up or food truck to taste a pulled jackfruit burrito - but as soon I got busy I couldn’t believe how uselessly lacking the options were, I’d find myself eating carrots and hummus every evening. And that’s not fun for anybody.
Coming from a big Cypriot family, mealtimes have always been an occasion filled with pleasure and so this idea of compromise didn’t sit well. And it seemed like a huge opportunity to be able to help people like us and beyond, by eliminating sacrifice and in fact, turning plant-based living into a celebration of flavour.
What Alex and I quickly realised was that every one of the choices we all make every day, shapes, creates and can change the world we live in. But - despite our best intentions - it’s not always easy to make the right decisions if you’re not provided with great options. I was convinced that tidal wave of awareness and “plant curiosity” was coming, but if we didn’t serve it with excitingly delicious and easy ways to enjoy eating more plants then it wouldn’t amount to the shift away from animal agriculture our planet needs.
So we committed to our mission: inspire people to eat more plants. And we do this with the food we make, using state-of-the-art tech innovation, creative storytelling, and a close-knit community of tasters in home kitchens across the UK.
WHAT DOES THE TEAM LOOK LIKE?
To achieve our growth ambition of inspiring the next billion plant-powered people we are expanding our teams at pace, whilst also putting in place the foundations of a mission-driven high-performance culture.
I feel incredibly lucky to work every day alongside the most talented and driven people I’ve ever been able to call colleagues. Whether it’s across our kitchen and operations, customer delight, insights and strategy, finance and BI, product and engineering, growth and marketing, brand and creative or food innovation - our teams are led and driven by truly outstanding players pushing the boundaries of what’s possible to help us grow our movement fast.
WHAT VALUES DOES YOUR TEAM LIVE BY?
Understandably, we get asked a lot if you need to be vegan to work here. And the answer is no! Everyone is welcome at our table and in our team, whether you’re a lifelong vegan, or are a plant-curious omnivore. But what does matter is that we are all personally driven by our planet positive mission to inspire people to add more plants to their plates. Because this lives through everything we do.
And we have three other key values we all live by at allplants:
WHAT KIND OF PERSON WOULD ALLPLANTS SUIT?
There’s no ‘one-size-fits-all’ approach at allplants when it comes to finding the right fit. We’re proud to have people in our kitchen and office from all corners of the globe, from many professional backgrounds who bring an optimistic attitude, a thirst for personal growth and an ambitiously competitive streak to the table.
As we’re such a tight-knit team (even as we’re growing) we’re always on the lookout for collaborative team-players who are happy to roll up their sleeves and get involved with everything. As well as being part and parcel of plucky start-up life, we really value everyone’s ideas, so we champion brave openness as the rock-bed of working well together.
It’s also really important to us that we recruit compassionate, conscious and caring people. So you can expect high EQ teams who know how to get the best out of each other when striving to smash our goals.
WHAT DOES THE FUTURE HOLD FOR ALLPLANTS?
This January it’s our 3 year birthday and although we’re about to cook our millionth meal, we really do feel like we’re just getting started. Changing the way the world eats is a massive mission and we have mountains of innovation, growth and platefuls of delicious plant-based food to make happen.
If you’re a foodie and moving our planet towards plants is already a personal mission you believe in - keep your eyes peeled for the right opportunity on Movemeon.com.
The topic for the day, Winning the War for Talent - Recruiting and Empowering Top Performers to your organisation - Movemeons insider tips
We had the pleasure to co-organise a roundtable breakfast discussion with Learnitect. The topic for the day - “Winning the War for Talent - Recruiting and Empowering Top Performers” - was addressed from the L&D point of view by Learnitect and from the recruiting point of view by our co-founder Nick Patterson.
Get as much data as you can. Also, use the resources in front of you: what does the hiring manager think. The “needs” are often not “more money”, but instead more soft factors like “room for personal impact” etc.
Job descriptions are typically describing a role in a company, not selling it. Remove unnecessary detail; ensure the company, team and role are being sold; draw out some clear selling points based on the needs of the talent
It’s critical your channel is reaching the right people. Trial different channels and test the effectiveness of each: record hiring metrics like role description views, number of screening calls. This also gives hiring managers the confidence that they are seeing the best people
Effective assessment requires a clear understanding of the intrinsics you want to attract, and a way to assess these. The first step is understanding the intrinsic skills you’re looking for: this is very different to experience.
Assess what you want this person to become, not what they need to be at the start. Interviews are notoriously bad at selection (some studies site below 50% effectiveness). It’s critical the right people are interviewing (i.e., founders might not be the best) and people are trained in interviewing
Case studies allow people to understand the potential impact and excitement of the role. Coaching people during the interview process can make it clear that you value professional development. Have a buddy system - assign each offeree, someone, the moment they receive the offer, who will partner them and welcome them to the company
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