Looking at only top-tier consulting firms and revenue per employee, I think AlixPartners leads. With only 2700 employees and bringing in $1B. This is amazing!

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Okay there is a lot of mis-information here. Let me spell it out step by step:

1. Alix's revenue is $1.5B, not $1B - that makes the gap even bigger

2. This metric is kind of irrelevant without adjusting for geography. The United States and Middle East have the highest consulting fees in the world. If you have a firm that is heavy in Southeast Asia or Eastern Europe you will rate poorly on a metric in USD / employee. These markets also have significantly lower cost of living

3. Alix is heavily weighted towards the US and other markets with strong currency. Go check out their website and see if they are in South America, Eastern Europe or Southeast Asia (the answer is no)

4. MBB have the highest fees when you adjust for geography.

5. Alix pays high wages by having senior people do work. It is not a leveraged pyramid. Since the senior people are doing the actual work, you don't have high costs of training, recruiting. You can drop two executives with serious experience to solve a problem. A MBB might need PL/EM + 2-5 associates, + AP/ Partner support, + expert support,
+ Senior Advisors + Production services.

likesmarthelpful

Great analysis. #5 is definitely true - hence why we have (on average) uglier slides😁

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A lot of people are sleeping on AP. Beats MBB in a few aspects from what I’ve heard

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Yeah definitely the best in Turnaround and Restructuring, but they are becoming more attractive to work for outside of that practice because of great comp and culture across the board

likeuplifting

I think OW is ~5k employees with 2B in rev so should be up there, even if not "top"

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Alix is $1.5b on 2600 people but read P1s post, a lot of truth in it.

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Our cost base is also different. I’ll just use office locations as an example, and compare it to OW and Kearney as a few of their staff have weighed in earlier about their comparable size and similar ratios. There are lots of peripheral infrastructure costs associated with offices.

(From websites)
OW: 60 cities, 31 countries
Kearney: 60 cities, 40 countries
AlixPartners: 24 offices, 12 countries. And I personally know that some of these offices are tiny and meeting-room sized.

I think that we save on some SG&A and invest in other areas. It makes the company as a whole very productive. For example, I really value all my corporate services colleagues and think they are a key part of making my job better and more effective. They’re thoughtful when designing workplace policies, they contribute to and build community, and support consultants in valuable ways that are not just transactional. For e.g. my EA sometimes helps me with slides and research and meeting prep above and beyond her usual activities.

likeuplifting

This is amazing, I should use my EA more.

This is an apples and oranges comparison. You’re comparing firms with completely different business models.

AP teams are extremely senior consultant heavy with high specialization. This get you to a higher blended rate because there are no fresh out of school associates to dilute the rate.

AP is an ultra high utilization model with minimal non-billing staff. Another reason for the higher revenue per employee.

The firm also doesn’t play much in the traditionally lower fee areas, such as tax/audit, systems implementations, or staff aug.

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Would be really interested in seeing this breakdown 👀

I did a quick and dirty based on what I could find on the internet. Alix finished #1 and Bain #2 Couldn't find data for A&M or Strategy&.

likehelpful

Small insurance company in KS. 1500 employees and 4bn in revenues. Lol

Following 😀😀😀😀😀😜😜😜

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