What is the Difference Between Strategy and Management Consulting

While many companies use the terms “strategy consulting” and “management consulting” interchangeably, they fulfill different types of needs. To help companies understand when to use the right kind of expertise, business leaders must understand the distinction between strategy and management consulting.  

At Nexus Expert Research, we collaborate with businesses to provide the data-driven insights necessary to clarify their strategic choices, regardless of whether those choices are driven by a strategy or management consulting framework. In this blog, we explain what strategy consulting is compared to management consulting, as well as the different ways in which the two types of consultants operate and when each type of consulting will add the most value to your organization.  

Strategy Consulting Meaning 

The definition of strategy consulting relates to high-level business decisions concerning the future direction and competitive position of a business. A strategy consultant considers a company’s long-term strategy, growth avenues, and competitive position.  

Although strategy consultants do not provide solutions to operational issues, they initiate higher-level questions related to a company:   

• Which markets should a business expand into?  
• How can a business stand apart from its current competitors?  
• What type of sustainable growth strategy will work for a particular business type?  

In summary, while both types of consultants consider improving a company, the two types (strategy versus management consulting) approach a company from different perspectives: strategic vision versus operational execution. 

Management Consulting Meaning 

Management consulting has a more executional orientation to it, where management consultants work to optimise the way in which an organisation operates, functions, and implements its strategy, mainly through process optimisation, organisational design, technology integration, and performance improvement, as opposed to defining what should be done, as is done by strategy consultants.  

This distinction is central to understanding the distinction between management consulting and strategy consulting. 

What Does a Strategy Consultant Do? 

The role of a Strategy Consultant can be characterized as one that focuses on large, complex business-related issues.  

Typical responsibilities include: 

• Assisting companies in determining how to enter a new market  

• Providing an assessment of competitors in the marketplace  

• Providing support for merger or acquisition activity  

• Assisting companies that need to restructure their business  

• Helping companies to develop strategies to achieve a growth objective  

Strategy Consultants will often work directly with C-level leaders and executives to provide important insights as they determine the direction of the organisation.  

What Does a Management Consultant Do? 

In contrast, what does a management consultant focus on improving internal business performance? 

Their work may include: 

• Streamlining business processes 

• Implementing digital transformation 

• Improving supply chains 

• Reducing operational costs 

• Designing organizational structures 

Management consultants typically collaborate with middle and senior management to ensure strategies are effectively executed. 

Strategy Consulting vs Management Consulting: Key Differences 

When comparing strategy consulting versus management consulting, there are three main differences between the two:  

1. Scope of Work 
Strategy consultants deal with long-term vision, while management consultants focus on the implementation and efficiency of the strategy. 

2. Time Horizon 
Strategic consultants focus on long-term forecasts, while management consultants are generally results-based, short- to medium-term projects. 

3. Level of Engagement 
Strategy consultants engage primarily with executive management, while management consultants engage with all levels of an organisation. 

These differences explain why companies use both types of consulting services at different points in their growth. 

When Should a Company Choose Strategy vs Management Consulting? 

Companies frequently require both strategic and management consulting at different points in time. When a business is contemplating a significant business decision or experiencing a market disruption, it should look to engage a strategic consulting firm. 

If a company is looking for assistance in implementing a new strategy, enhancing its operational efficiency, or implementing a change within the organization, it should consider hiring a management consulting firm. Many successful companies take advantage of both services, strategy, and management consulting to develop an overall business strategy and ensure the successful execution of that strategy.  

How Nexus Expert Research Supports Both 

Independent Market Intelligence is a key element in augmenting the Strategy and Management Consulting Services offered by Nexus Expert Research. Our focus on strategy teams enables them to utilize our independent market research on competitive analysis and industry forecasts as tools to effectively guide their strategic decision-making processes. 

In addition, as a source of data-driven diagnostic tools, we assist management consultants in identifying opportunities for operational efficiency improvements and in developing and implementing their operational plans. 

Through research, we bridge the gaps between the strategic planning phase and the execution phase.  

Conclusion 

The distinction between management consulting and strategy consulting can be summarised as follows in terms of their respective areas of emphasis, scope, and resultant effect. Where strategy consulting defines the destination a company wants to reach, management consulting helps ensure a company reaches its goals with maximum effectiveness and efficiency. A company’s familiarity with both concepts makes it possible for it to allocate the proper level of expertise at the right time. 

To support this process further, organizations may also leverage the model and research of Nexus Expert Research to ensure that an organization’s strategy is aligned with its implementation and to facilitate a greater degree of data-based confidence during the decision-making process.