Momentum Conference 2012: Review of Workshop A5: Turning to the Dark(er) Side: What do management consultants do?

In his talk, Simon Grout of management consultant firm Oliver Wyman outlined the similarities (and differences) between the work of practicing management consultants and the traditional work of actuarial consultants.

The skills which management consultancies look for in their people are well aligned with those of actuarial firms, focusing on:

• Problem solving skills, including problem structuring, creative thinking and business intuition;
• Analytical and research skills, including quantitative analysis and asking insightful qualitative questions; and
• Personal skills, including clarity, leadership, initiative and the ability to self-manage.   

Coming from an actuarial background, Simon found that on making the transition from actuarial consultant to management consultant, he already had a good grounding in the required areas of technical expertise (Simon currently specialises in insurance consulting, focussing in the middle east).  However, there was work required to learn the broader range of skills within the management consultants’ ‘toolkit’, so anyone considering making the leap should be mindful of the extra work involved in getting up to speed, particularly over the first year or two.

Although there is a significant overlap between the work of the two industries (particularly in respect of management consultants who specialise finance or risk consulting), the main difference relates to the way each practice works.  While actuarial consultants typically have multiple clients with whom they build long-term relationships, management consultants tend to work on shorter focussed projects typically a month or two in duration.  Actuarial consultants will typically have regular tasks with a relatively predictable schedule, whereas management consultants will have a wider variety of work and a mixed schedule.  And of course, though actuaries will for the most part tend to have relatively sensible hours, during projects management consultants will have far longer hours (70 hour weeks were not uncommon).

For the latter part of his presentation, Simon gave a high-level summary of some of the projects which he has been working on over the last few years, which included:

• Helping a major global composite insurer to formulate a plan for strategic expansion in the wake of the Eurozone crisis;
• Working with a German insurer to develop its online distribution strategy and business model; and
• Setting up a group ALM function for a European insurer.    

Overall the session provided an interesting insight to the work of those “on the dark(er) side”, as well as affirmation of the applicability of the actuarial skill-set to wider business roles.