When to leave MBB for F500?
Hi there,
I thought I would post this question because its been eating away at me, and hopefully consultants from all backgrounds will relate!
I'm about to start a 2 year MBA program in the U.S, coming from a few years as a undergrad at MBB. In the medium to long term I see myself in F500/industry, and I'm wondering when I should aim to make this move? Right out of B-School, or after a couple more years of consulting after B-School?
Any advice?
Cheers guys!
Leaving Consulting for industry
Leaving MBB for an MBA or directly to industry. Alternatively, a few MBA graduates also transition to industry. Some say that it is best to make the switch as soon as you know what you want.
The alternative is going back to MBB for another 2 years or so after obtaining an MBA. This allows you to expand your network. If you are an engagement manager then you will be in direct contact with high-level management. You can also gain your own management experience through promoting. Said management experience and senior client exposure may mean skipping a few rungs when you make the switch.
from certified user @808"
Another thing to consider is once you make your switch, though you might get more access to senior management at your company, your networking opportunities narrow.
At a F500, promotion is less certain - the firm may have the perfect spot for you once the guy above you retires in 7 years, or he may jump ship 3 months down the road. So it's a matter of risk, not a matter of F500 having lack of promotion.
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Once you've found out that you don't want to stay in consultancy and have identified "your field" you should leave early. As you said, it's a great learning experience early on, but the longer you stay, the harder it will be for you to find a good exit and there's quite an opportunity cost of time here.
My inclination is in line with the above poster (and yours). Two years in consulting is enough to get that "stamp" and an MBA is the ideal time for a job switch - even a relatively innocuous one like MBB --> F500.
2 more years in, especially if you make EM/PL/CTL, an exit won't be hard, but you won't necessarily get full credit for your tenure. This is pretty much the opposite of your first 2 years, when a lot of opportunities open up and almost all of them are considered a step up. The one exception to this would be if you work on a CPG case and end up at a client (I've had friends and managers jump to some pretty good situations because they already had a network in the company and a lot of credibility with relatively senior people).
TL;DR - if you're sure about product management and the MBA tuition isn't a dealbreaker, now is almost certainly better than later.
And I'm assuming the reason you didn't jump straight to F500 becuase you weren't sure whether you wanted to return to MBB or not?
I think the lack of promotions once you make the jump is a scare tactic - I've seen many people progress quickly after leaving MBB. Just one anecdote - the client SVP and Senior Partner on my case were both EM/PL/CTLs together - and ten years later, both have gotten promoted multiple times.
Important question - is there a graduated schedule for payback - i.e. do you have to pay back 50% if you leave after a year, etc.? That would be a factor in my decision. My opinion is that staying at the MBB won't hurt you. Even if you stay for a year and don't get much consumer goods experience, you can still present yourself as primarily a CG professional who also has the benefit of experience from other industries that complement your CG skills. Post-MBA consulting experience is also a plus - it moves your bargaining position from being the worker at the consulting firm to being the one who actually manages the engagement.
Another thing to consider is once you make your switch, though you might get more access to senior management at your company, your networking opportunities narrow. Are you satisfied with the quality of your network as it is?
The "lack of promotion" component should be better expressed like this: in consulting, it's up or out. You will almost always have promotion opportunities - if you're not good enough or the need isn't there, you'll be leaving anyway. At a F500, promotion is less certain - the firm may have the perfect spot for you once the guy above you retires in 7 years, or he may jump ship 3 months down the road. So it's a matter of risk, not a matter of F500 having lack of promotion.
Having said all that, I don't disagree with the previous posters. Just some factors for you to consider. Honestly, if it were me in your position, the only thing that would keep me from making the move would be my consideration of the MBA cost.
Seems to be a barbell distribution in my firm. Guys left MBB at ~2 years or >6 years for some reason. The difference is, if you have an MBA you come in at director with ~2 years and VP with 6.
Go back to MBB, do another 2 years, then make the jump to industry. A couple reasons why MBB > direct F500 approach for you:
(1) As an MBA, going direct to industry means your entry point to F500 is going to be MBA rotational programs, then you're going to have to slug it out up the ladder. You're previous MBB background won't get much credit given you're locked into a rotational / standard development program.
(2) If you want to be a general manager at the F500, you need management experience. Being an analyst at MBB is good first step, but you don't get any true project management experience. Going back to MBB, you will be a project manager within 12 months. After 2 years at MBB, you'll have management experience under your belt that you won't get in a rotational program.
(3) Senior client exposure at MBB. You'll definitely get more senior client exposure as the manager at MBB than associate in development program. Once you lateral over to industry from MBB, you are going to skip several rungs of the ladder and end up in a much more senior role than if you went straight from MBA.
Main downside for you is, if you stay at MBB too long, you will become too expensive for the F500 to afford. Meaning you should leave as a manager and not as a partner, since most partners need to be at a EVP or above role to justify the move.
great post, freeloader!
Can't you specialize in a certain area (e.g. consumer goods) in your firm? It's possible where I work, if you ask for it.
Thanks for such thoughtful insights everyone,
m2, petergibbons, signposts - What you're saying definitely resonates. I think its important to make a timely exit and be aware of the opportunity cost.
808, Freeloader - thanks, agree re: the management experience and contacts that you get access to post-MBA, and how a rotational program may not fully "cash-in" on my MBB years.
atleastimnotabanker - great name. My office has a generalist pool of consultants (your specialisation evolves out of a process of pushing for projects you want to be on, politics and luck), so its hard to ensure I get access to CPG, but that's a good point to keep in mind.
This combined with the B-School debt obligations if I leave right away, is making me lean towards going back to MBB post MBA for 2 years (and keeping an eye out for opportunities during those years)
Makes sense, enjoy and good luck!
Thought I'd bump this topic up and revive the discussion on when best to leave post-mba consulting. How common/easy is it to exit into a director position in industry after 2-3 years of consulting? Is it best to try to join a client? OP, if you are still around, would love to hear your thoughts.
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