Management Analyst Career Guide

What Does a Management Analyst Do?

Management analysts, often called management consultants, recommend ways to improve an organization's efficiency. They advise managers on how to make organizations more profitable through reduced costs and increased revenues. Although some management analysts work for the organization they analyze, many work as consultants on a contractual basis.

Day-to-day responsibilities include gathering and organizing information about problems to be solved or procedures to be improved, interviewing personnel and conducting onsite observations to determine methods, equipment, and personnel needed, analyzing financial and other data (revenue, expenditure, employment reports), developing solutions or alternative practices, recommending new systems, procedures, or organizational changes, making recommendations to management through presentations or written reports, and conferring with managers to ensure changes are working.

The work varies from project to project. Some projects require a team of analysts, each specializing in one area. On other projects, analysts work independently with the client organization's managers. Many analysts specialize in certain areas such as inventory control or reorganizing corporate structures for efficiency, or focus on specific industries like healthcare or telecommunications.

Education & Requirements

• Typical Education: Bachelor's degree is typical entry-level requirement. Some employers prefer candidates with a master's degree in business administration (MBA). Common fields of study include business, social science, and engineering.
• Certifications: Not required but may give jobseekers a competitive advantage. Available certifications include Certified Management Consultant (CMC) and various industry-specific credentials.
• Key Skills: Analytical skills to interpret information and make proposals, communication skills to convey information clearly in writing and speaking, interpersonal skills to work as a team toward organizational goals, problem-solving skills to think creatively and solve unique client challenges, and time-management skills to work efficiently under tight deadlines.
• Experience: Less than 5 years of related work experience. Organizations that specialize in certain fields typically hire candidates with experience in those areas (e.g., tax firms prefer accountants/auditors, software companies seek systems analysts).

Salary Information

According to the Bureau of Labor Statistics (May 2024 data):

• Median Annual Salary: $101,190
• Entry-Level (10th percentile): $59,720
• Experienced (90th percentile): $174,140
• Top-Paying Industries: Professional, scientific, and technical services ($107,790), Management of companies ($101,560), Finance and insurance ($98,710), Government ($94,080)
• Work Schedule: Often work many hours under tight deadlines. Some work more than 40 hours per week. Consultants frequently travel to meet clients.

Job Outlook & Growth

Employment of management analysts is projected to grow 9 percent from 2024 to 2034, much faster than the average for all occupations. About 98,100 openings are projected each year on average over the decade. Many openings will result from the need to replace workers who transfer to different occupations or retire.

Demand for consulting services is expected to increase as organizations seek ways to improve efficiency and control costs. As markets become more competitive, firms will need to use resources more efficiently. Growth is expected to be particularly strong in smaller consulting companies that specialize in specific industries or types of business function, such as information technology or human resources. Government agencies also are expected to seek the services of management analysts as they look for ways to reduce spending and improve efficiency.

How to Break Into This Field

1. Education: Earn a bachelor's degree in business administration, finance, accounting, marketing, or related field. Consider pursuing an MBA to be more competitive, especially for top consulting firms. Take courses in business analysis, statistics, and industry-specific topics.
2. Entry-Level Roles: Start as a junior analyst or associate consultant at a consulting firm. Alternative entry points include business analyst roles in corporate settings, financial analyst positions, or industry-specific roles (e.g., healthcare analyst, IT business analyst).
3. Build Skills: Develop strong analytical and data analysis skills (Excel, SQL, Tableau, Power BI). Learn frameworks like SWOT analysis, Porter's Five Forces, and Lean Six Sigma. Build presentation skills (PowerPoint, public speaking). Gain industry expertise in 1-2 sectors.
4. Network: Join professional associations like Institute of Management Consultants (IMC). Attend industry conferences and case competition events. Connect with consultants on LinkedIn. Seek informational interviews with firms of interest.
5. Apply Strategically: Target top firms (McKinsey, BCG, Bain) if you have strong credentials from target schools. Consider boutique firms specializing in your area of interest. Apply through campus recruiting if available, or directly through firm websites. Prepare extensively for case interviews.

Career Path & Advancement

Entry-level: Junior analyst or associate consultant → Mid-level: Consultant, senior consultant (supervise teams on complex projects) → Senior-level: Manager, senior manager, principal (seek new business and bring in revenue), partner (partial ownership).

As analysts gain experience, they often take on more responsibility. Senior-level analysts may supervise teams working on complex projects and become involved in seeking out new business. Those with exceptional skills may eventually become partners in their organization and focus on attracting new clients and bringing in revenue. Senior analysts may also leave consulting to take management positions at non-consulting organizations.

Pros & Cons

Related Careers

If you're interested in Management Analyst, you might also consider:

• Financial Analysts: Median salary $101,910, guide businesses and individuals in investment decisions
• Operations Research Analysts: Median salary $91,290, use mathematics and logic to solve complex issues
• Project Management Specialists: Median salary $100,750, coordinate budget, schedule, and staffing of projects
• Market Research Analysts: Median salary $76,950, study consumer preferences and market conditions
• Budget Analysts: Median salary $87,930, help organizations plan their finances