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Technology to Management Consulting (1-year or 2-year MBA) (US Applicant)
Welcome to F1GMAT's Ask Atul Jose Series. I am Atul Jose.
Q) I am a late 20s applicant from Technology, based in the US, targeting all top MBA programs. As someone who has worked in London, Boston, and now in New York, I have no geographical preference. Should I choose a 1-year or a 2-year program? My goal is to transition into a Management Consulting role.
Atul Jose (Founding Consultant, F1GMAT):
This answer is from the 2024 entering class perspective. From my 14 years as an admissions consultant, I am seeing large layoffs in Management Consulting for the first time. From 2009 to 12, there was a significant drop in recruitment in the Finance industry. Investment Banking was the most affected. Even schools known for placing Investment Banking professionals were impacted. So you have to consider Management Consulting from four factors:
1) Recovery Time: 2025 – when you graduate with a 1-year program, it would be a sufficient timeframe for the industry to come back. Unfortunately, if you look at the recovery in Technology and Investment Banking, it typically takes 3-4 years for a complete recovery. The stock market is a leading indicator and might not reflect the realities on the ground. The cycle I have seen is that the stock market recovers a year before the actual demand in the workforce stabilizes. So from a pure risk management perspective – a 2-year MBA would be ideal for you.
2) Disruption from AI and Chat GPT: Automation through IoT and AI-assisted decision-making tools has been going strong since 2016, but the mass disruption of Chat GPT-like tools could mean companies will integrate solutions that will cut the costliest functions and Technology in the company. And two components that add to a company’s cost structure are technologists and external consultants. Companies are already pivoting to developing internal consulting talents – mostly MBAs instead of paying 3 to 4 times to an external consultant from the Big 4. I am not saying that all major consulting companies will be disrupted, but from a career perspective, you must choose whether to continue in Technology Consulting or pivot completely to Management Consulting, where you have options to serve many industries. In a way, you are reducing the risk by choosing Management Consulting instead of being a specialist in Technology.
3) Your Strengths: If you are naturally good at collaborating, communicating with multiple stakeholders and find that managing technology projects or working only in one domain is limiting, then a career in Management Consulting makes sense.
4) Increase in Salary: Another challenge you are likely to face is the increase in Salary. Management Consulting is the most well-paid role, but since the slowdown in the industry, recruiters will try to leverage existing talent. Since you are working in Technology – another high-paying industry, the increase in Salary might not be dramatic. So you are looking at a 2-year lost opportunity cost and the cost of an MBA that runs upward of $200,000. Most top schools offer scholarships/funding in the $30,000 to $40,000 range, but you are still expected to pay close to $100,000 to $140,000. If you are not excited about the cost and the increase in Salary, one way to navigate the problem is to ask your current employer for sponsorship.
If you are a top 1-2 percentile performer, employers will gladly take a risk on you. If the company has roles in Management Consulting, this would be a great opportunity to reduce risk and join back. If they fund your MBA, the chance they will let you go is also low. So this is a path you should consider if you fund the entire program. But if you have the means to fund an MBA, then focus on customizing the curriculum to develop skills you lack now.
I hope you got value from my advice. I can help you shortlist schools, MBA/Masters programs and assist you with the application, including essays (application/scholarship/fellowship) and interview preparation.
You can start a conversation with me by visiting https://www.store.f1gmat.com/contact-f1gmat or by subscribing to F1GMAT’s Career Planning Service at https://www.store.f1gmat.com/career-planning
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By Atul JoseWelcome to F1GMAT's Ask Atul Jose Series. I am Atul Jose.
Q) I am a late 20s applicant from Technology, based in the US, targeting all top MBA programs. As someone who has worked in London, Boston, and now in New York, I have no geographical preference. Should I choose a 1-year or a 2-year program? My goal is to transition into a Management Consulting role.
Atul Jose (Founding Consultant, F1GMAT):
This answer is from the 2024 entering class perspective. From my 14 years as an admissions consultant, I am seeing large layoffs in Management Consulting for the first time. From 2009 to 12, there was a significant drop in recruitment in the Finance industry. Investment Banking was the most affected. Even schools known for placing Investment Banking professionals were impacted. So you have to consider Management Consulting from four factors:
1) Recovery Time: 2025 – when you graduate with a 1-year program, it would be a sufficient timeframe for the industry to come back. Unfortunately, if you look at the recovery in Technology and Investment Banking, it typically takes 3-4 years for a complete recovery. The stock market is a leading indicator and might not reflect the realities on the ground. The cycle I have seen is that the stock market recovers a year before the actual demand in the workforce stabilizes. So from a pure risk management perspective – a 2-year MBA would be ideal for you.
2) Disruption from AI and Chat GPT: Automation through IoT and AI-assisted decision-making tools has been going strong since 2016, but the mass disruption of Chat GPT-like tools could mean companies will integrate solutions that will cut the costliest functions and Technology in the company. And two components that add to a company’s cost structure are technologists and external consultants. Companies are already pivoting to developing internal consulting talents – mostly MBAs instead of paying 3 to 4 times to an external consultant from the Big 4. I am not saying that all major consulting companies will be disrupted, but from a career perspective, you must choose whether to continue in Technology Consulting or pivot completely to Management Consulting, where you have options to serve many industries. In a way, you are reducing the risk by choosing Management Consulting instead of being a specialist in Technology.
3) Your Strengths: If you are naturally good at collaborating, communicating with multiple stakeholders and find that managing technology projects or working only in one domain is limiting, then a career in Management Consulting makes sense.
4) Increase in Salary: Another challenge you are likely to face is the increase in Salary. Management Consulting is the most well-paid role, but since the slowdown in the industry, recruiters will try to leverage existing talent. Since you are working in Technology – another high-paying industry, the increase in Salary might not be dramatic. So you are looking at a 2-year lost opportunity cost and the cost of an MBA that runs upward of $200,000. Most top schools offer scholarships/funding in the $30,000 to $40,000 range, but you are still expected to pay close to $100,000 to $140,000. If you are not excited about the cost and the increase in Salary, one way to navigate the problem is to ask your current employer for sponsorship.
If you are a top 1-2 percentile performer, employers will gladly take a risk on you. If the company has roles in Management Consulting, this would be a great opportunity to reduce risk and join back. If they fund your MBA, the chance they will let you go is also low. So this is a path you should consider if you fund the entire program. But if you have the means to fund an MBA, then focus on customizing the curriculum to develop skills you lack now.
I hope you got value from my advice. I can help you shortlist schools, MBA/Masters programs and assist you with the application, including essays (application/scholarship/fellowship) and interview preparation.
You can start a conversation with me by visiting https://www.store.f1gmat.com/contact-f1gmat or by subscribing to F1GMAT’s Career Planning Service at https://www.store.f1gmat.com/career-planning