The market for strategy consulting firms - France (2024)

1.2 The global market

Consulting firms employ consultants who sell advice and recommendations on what should be done in an organization to improve some aspect of it: logistics, management, HR, financial strategy...

The consulting market worldwide is a very important part of the service sector, and is experiencing a rather high growth rate, with forecast growth between **** and **** of almost *.**%.

The following chart shows the projected development of the consulting market worldwide.

Global consulting services market size World, ****-****, in US$ bn Source: ****

Strategy consulting is a specific segment of consulting services. Its aim is to provide company executives, the COMEX, with specialized advice on defining corporate strategy.

In reality, strategy consulting firms often go beyond their defined perimeter, giving rise to recommendations on managerial and organizational issues...

In the same way as consulting services, strategy consulting will grow by almost *.*% between **** and ****, as shown in the graph below.

Global strategy consulting market size World, ****-****, in US$ bn Source: ****

To analyze the evolution of the strategy consulting market in a different way, we can take a closer look at the leading companies on the market in the graph below.

sales trends for the top * strategy consulting companies France, ****-****, in $bn Source: ****

on a ...

1.3 The French market

The business consulting market

Using NAF code **.**Z, all the activities listed below are included:

consulting and operational assistance to companies and public services in the following areas : design of accounting methods or procedures, expense accounting programs, budgetary control procedures

advice and assistance to companies and public services in planning, organization, performance research, control, management information, etc.

The market sizes calculated therefore include strategy consulting, but are not limited to it. Nevertheless, this indicator provides a good overview of market growth.

Sales in this market are estimated at **.** billion euros in France in ****.

growth in strategy consulting sales France, ****-****, in billions of euros Source: ****

What's more, the consulting services market is a fast-growing market, as the graph below shows, with a projected growth rate of **.*% in ****.

growth rate of the consulting services market France, ****-****, in Source: ****

The strategy and management consulting market

According to Syntec Conseil, market growth was finally +**.*% for strategy and management consulting in ****. This market will reach a size of *.* billion euros in ****.

Breakdown of the strategy and management consulting market France, ****, in % of total value Source: ****

According to Syntec Conseil, the breakdown of the strategy and management consulting market is as follows:

Strategy consulting accounts ...

2.1 Demand drivers

The clients of strategy consulting firms are very varied (***) and their demand for consulting firms is highly dependent on certain factors, which we list below:

economic conditions companies' investment capacity companies' need for transformation

First ofall, economic conditions play a major role: in times of economic growth, companies are often inclined to invest more in consulting services to exploit new opportunities and optimize their performance. In times of economic slowdown, on the other hand, they may seek to cut costs or reinvent themselves to remain competitive.

According to the graph below, strategy consulting firms benefited from a very favorable economic context in the immediate aftermath of the pandemic. Indeed, French GDP increased immediately after the pandemic, but by **** GDP growth remains weak and is trending downwards: *.*%.

GDP growth (***) France, ****-****, in % annual Source: ****

The business climate measures industrialists' and business leaders ' assessment of the current economic situation: the higher it is, the more favorable the situation is perceived to be. In France, this figure has tended to fall over the past two years:

Business climate France, ****-****, *** = average Source: ****

A second key determinant is a company's ability to invest, with available financial resources influencing the decision to hire strategy consultants. ...

2.2 Clients of strategy consulting firms

Below is a breakdown of the different types of customer for strategy consulting firms.

However, this breakdown needs to be put into perspective, particularly with regard to the share of services dedicated to the public sector, which has fallen drastically following the McKisney affair aimed at reducing the share of external consulting for the public service.

Breakdown of consulting firms' customer typology France, ****, in Source: ****

Executive committees of large companies

The traditional clients of strategy consulting firms in France continue to be the COMEXs of large French companies. In France, for example, McKinsey works with over **% of CAC** companies. [***]

The COMEX or Executive Committee makes the strategic decisions for a company. It brings together the company's top executives to discuss various issues and set objectives that are perceived as guidelines for the various teams: marketing, HR, logistics...

As a result, there is a close link between COMEX members and strategy consulting firms, as shown in the graph below.

Share of former strategy consultants in Comexes France, ****, in Source: ****

Investment funds

Investment funds are also important clients for strategy consulting firms. They advise them, for example, on investment strategies and portfolios.

For example, McKinsey, BCG and Bain have created dedicated private equity ...

2.3 Focus on the special case of the public sector

In the wake of the Mc Kinsey affair in ****, spending on strategy consulting has fallen drastically, as the graph below shows.

Value of consulting orders placed by the French government France, ****-****, in millions of euros Source: ****

Within these purchases, we also observe a decline in purchases of strategy consulting services.

Trend in government purchases of strategy consulting services France, ****-****, in millions of euros Source: ****

While consulting orders have largely declined overall, some Ministries are exceptions, with orders on the rise, such as the Ministry of the Armed Forces, with spending up by **% between **** and ****. The Ministry of Europe and Foreign Affairs has also stepped up its orders significantly.

Top * ministries in terms of consulting services consumption France, ****, in millions of euros Source: ****

The DITP (***) agreement

Following the McKinsey affair, the government set up a framework agreement to regulate the State's calls on external service providers.

The new framework agreement, estimated to be worth between *** and *** million euros, breaks down into three separate lots:

Strategy consulting: services for drawing up strategic plans and roadmaps, carrying out impact or benchmarking analyses, or preparing for decision-making. Project framing and management: services to draw up an operational project plan, support its implementation and ...

3.1 How a strategy consulting firm works

Strategy consulting firms provide support to organizational leaders on their strategic issues.

However, they do not confine themselves to this and can intervene on different types of missions.

Strategic missions: these are strategy-related missions that concern the whole company, or just a part of it, with a focus on a specific product line, activity or region, for example Entering a new market with a new offering and/or a new region Increase the company's organic growth by boosting sales Increase profitability by reducing costs Strategic planning and redesign of the company's business model M&A and Private Equity assignments: these are assignments to support major groups in their M&A strategies for sale or purchase, as well as investors to advise them on their investment strategies and specific transactions Strategic advice on M&A transactions Strategic due diligence for buyers and/or sellers Portfolio reviews Organization and IT assignments: once reserved for management consulting firms and IT specialists such as Accenture, now major firms such as MBB are also involved in these issues Closure of a foreign subsidiary Digital transformation of the organization

Overview of the different areas of expertise of a strategy consulting firm

Below, we analyze the different phases ...

3.2 A market with diversified players

The different types of "traditional" strategy consulting firms

We can begin by analyzing the "traditional" players among strategy consulting firms, which we'll go into more detail about in another section:

The MBBs: McKinsey, Bain, BCG. Top * firms: Kearney, Oliver Wyman, Roland Berger + MBB. Big * international brands: EY Parthenon (***)... International strategy consulting firms recognized for their specialties : Arthur D Little, LEK (***) . Specialist due diligence boutiques: Advancy, Advention... Firms specializing in financial services: Courcelles, Ares&Co... Firms specializing in TMT: PMP Strategy...

New entrants to the strategy consulting market

There are a number of new players on the market:

leading communications companies, such as Havas and Publicis, are launching their own consulting businesses, benefiting from their customer portfolios and well-established brand image Major industrial and banking groups are increasingly developing their in-house consulting units, which can become full-fledged entities: the SNCF with SNCF Consulting; or BNP Paribas with BNP CIB Consulting & Transformation. Similarly, independent consultants are becoming increasingly common. These are usually experienced consultants who leave consulting firms to set up on their own, and can benefit from the customers they have already worked for. These consultants usually work via platforms that put small and medium-sized businesses in touch with expert consultants.

An ...

3.3 Recruitment: added value for strategy consulting firms

Strategy consulting firms rely on the skills and know-how of the consultants they recruit. As a result, the emphasis placed on human resources and the resources committed to recruiting consultants are greater than in other sectors.

To carry out their mission to the full, strategy consultants need to mobilize the skills and qualities that will enable them to adapt to their client's specific needs, and this is what strategy consulting firms look for when recruiting consultants.

There are several key skills that strategy consulting firms are looking for:

Problem solving: Ability to quickly solve complex problems on assignments using creative and analytical approaches. Analytical skills: Ability to evaluate sets, identify opportunities and challenges, and formulate recommendations based on analytical work. Technical knowledge: Mastery of the firm's tools and methodologies, as well as skills specific to the mission's sector of intervention. Critical thinking: Ability to critically evaluate information, challenge assumptions and make informed decisions. Communication: Ability to communicate clearly and effectively, both in writing and orally, to convey complex ideas in an accessible way with a top-down approach.

Similarly, strategy consulting firms are alsolooking for some of the soft skills listed below: innovation and initiative, agility, listening skills, adaptability and intellectual ...

3.4 Social networks, a channel still little used by French strategy consultancies (IndexPresse / Businesscoot indicator)

Social networks have become major communication tools for companies. However, with the exception of LinkedIn, the major strategy consulting firms based in France have little presence on these platforms. This absence on Instagram, X (***)

Number of LinkedIn followers of strategy consulting firms based in France France, November ****, in thousands Source: ****

Bain & Company, McKinsey and Global Strategy Group, the few foreign firms with a LinkedIn France page

Of the ** strategy consulting firms on our panel, ** are based in France but are not of French origin. Of these, only three have set up a LinkedIn page dedicated to their French subsidiary: Bain & Company France (***). With the exception of Accuracy and Eight Advisory, these two firms are ahead of most other French firms.

also notable is the absence on LinkedIn of BNP Paribas - CIB Consulting & Transformation, the only French firm on the panel without its own page on this platform.

Number of LinkedIn followers for international strategy consulting firms Worldwide, November ****, in thousands Source: ****

BCG, Oliver Wyman and Roland Berger favor global LinkedIn communication

The other major international consultancies with offices in France do not have LinkedIn pages dedicated specifically to their French branch. They make do with a general account for their ...

4.1 Types of consulting services

When it comes to strategy and management consulting, there are many sub-offers. The graph below shows the breakdown of this offering.

Breakdown of the strategy and management consulting offer France, ****, as % of total Source: ****

Pure strategy consulting activities are carried out in different sectors and on different issues.

Strategy consulting encompasses assignments that help companies' general management and practices to address key issues. Typical assignments include

Strategy for entering a new market (***) Product portfolio diversification strategy Cost optimization strategy External growth strategy Risk management strategy Supply chain management strategy Organizational management strategy

Examples of assignments

4.2 Pricing and salaries of strategy consulting firms

Compensation models

There are several models of remuneration in the consulting world. The Portailduconseil.fr website lists * of them:

*. Time-based: Once a schedule has been drawn up, the number of days the consultant is expected to spend is multiplied by an hourly or daily rate. **% of the amount is paid at the start of the assignment, with the remaining **% paid at the end.

*. Time-based invoicing: The firm lists the days and hours spent, multiplies by an hourly/daily rate and sends its invoice.

*. Fixed price: the customer and the firm agree on a global price based on an estimate of the time spent and on the delivery of precise deliverables

*.Subscription: A new trend, also known as "consulting as a service". The aim is to commit to a result with an annual or monthly subscription. The type of services and the level of service provided are defined in advance.

*. Payment by results: Payment by results is the downward trend, with remuneration dependent on the key success indicators achieved or not by the firm.

*. Satisfaction-based bonus-malus:this is a variant of payment by results, the aim being to define qualitative criteria - unlike the quantitative criteria ...

4.3 Offer diversification and specialization

Strategy consulting is a sector undergoing radical change, particularly with theadvent of digitization andArtificial Intelligence, which is revolutionizing the very profession of consultant.

What's more, new themes are coming onto the scene, and must be taken into account in every recommendation they make to companies: sustainable development and digitalization.

Integrating AI

Artificial Intelligence can perform tasks that normally require human intelligence. It therefore offers great opportunities in the consulting sector to optimize certain operations, for example, but still entails risks in terms of ethics, responsibility and transparency.

AI can also have an impact on decision-making in consulting, influencing both consultants and customers.

For example, AI can:

Improve the quality and reliability of decisions, by providing relevant, accurate, up-to-date and verified information, eliminating biases, errors and uncertainties, proposing optimal solutions... Accelerate the decision-making process, by reducing the time and resources needed to collect, process, analyze and interpret data, by facilitating the comparison and evaluation of options, and by simplifying the implementation and follow-up of actions... Change the role and value of consultants, by freeing them from low value-added tasks, encouraging them to focus on the creative, strategic and relational aspects of consulting, forcing them to train and update themselves on AI technologies ...

5.1 Current regulations

The national collective agreement for law firms [***]

The Convention Collective Nationale des bureaux d'études techniques, des cabinets d'ingénieurs-conseils et des sociétés de conseils, updated on July **, ****, applies to all employees engaged in consulting activities in France. It covers aspects such as :

working conditions ; job classification ; professional training ; social protection.

Regulation of consulting services in the public sector [***]

In the wake of various scandals affecting the profession, notably the McKinsey affair and the government's vaccine strategy, a bill aimed at better regulating the use of private consulting firms by public authorities and limiting their growing influence on public policy was tabled in Parliament in June.s by administrations and limit their growing influence on public policies was tabled in Parliament in June **** and adopted in *ʳᵉ reading in October ****.

The text implements the recommendations of the Senate commission of inquiry into the growing influence of private consultancies on public policy, whose report was published in March ****. This commission of inquiry had uncovered the extent of the phenomenon of recourse to consulting firms by the State on highly strategic issues (***) and the risks associated with this practice, particularly for democracy and the legitimacy of public officials.

A framework agreement was ...

6.1 Segmentation of strategy consulting firms

Below, we can see the different types of strategy consulting firms (***) according to their sector or functional specialties, as well as analyze their number of offices, sales and number of consultants.

• Gartner
• TNP Consultants
• Strategy& (ex Booz & Company)
• Sia Partners
• LEK Consulting
• Eurogroup Consulting
• BearingPoint
• Alvarez et Marshall
• Tallis consulting (Square Management Group)
• Eleven Consulting
• Cylad Consulting
• Colombus Consulting
• Axys Consultants
• Cofremca Sociovision
• Astek
• Alix Partners France
• Archery Strategy Consulting
• Cepton - Vintura International
• Roland Berger France
• Ares & Co
• INDEFI
• Mars & Co
• PMP Strategy
• Vertone
• Corporate Value Associates (CVA)
• Advancy
• Kéa & Partners
• Eight Advisory
• Bain & Company (Fance)
• McKinsey (France)
• OC&C Strategy Consultants
• Monitor Deloitte
• KPMG Expertise et Conseil
• EY Parthenon France
• Kearney
• Publicis Sapient Strategy consulting
• Oliver Wyman
• Boston Consulting Group BCG (France)
• Optimind
• Exton Consulting (Accenture)
• Accenture
• OasYs Consultants
• Simon Kucher & Partners
• Sokrates Advisors
• Step Consulting
• Strategia Partners
• Alixio
• Diamart Consulting
• Taroko Strategy
• Preligens
• Sparkling Partners
• Stan France
• Kepler Consulting
• Goetz Partners
• ADIT groupe
• GAC Scalian
• Enomyc
• RBB Economics
• Sneci
• Baker Tilly France
• Forward ( ex Avisa Partners)
• Barle
• EPSA
• June Partners (BDO Groupe)
• Geos (Groupe ADIT)
• Quantis Conseil (BCG)
• Carbon 4
• Onepoint
• Accuracy
• Avencore