Management Analysts

Summary

Management analysts advise managers on how to make organizations more profitable through reduced costs and increased revenues.

Quick Facts: Management Analysts
2010 Median Pay	$78,160 per year $37.58 per hour
Entry-Level Education	Bachelor’s degree
Work Experience in a Related Occupation	1 to 5 years
On-the-job Training	None
Number of Jobs, 2010	718,800
Job Outlook, 2010-20	22% (Faster than average)
Employment Change, 2010-20	157,200

What Management Analysts Do

Management analysts, often called management consultants, propose ways to improve an organization's efficiency. They advise managers on how to make organizations more profitable through reduced costs and increased revenues.

Work Environment

Management analysts travel frequently to meet with clients. Nearly one-third worked more than 40 hours per week in 2010.

How to Become a Management Analyst

Most management analysts have at least a bachelor’s degree. The Certified Management Consultant (CMC) designation may improve job prospects.

Pay

The median annual wage of management analysts was $78,160 in May 2010.

Job Outlook

Employment among management analysts is expected to grow 22 percent from 2010 to 2020, faster than the average for all occupations. Demand for the services of these workers will grow as organizations continue to seek ways to improve efficiency and control costs.

Similar Occupations

Compare the job duties, education, job growth, and pay of management analysts with similar occupations.

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Contacts for More Information

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What Management Analysts Do About this section

Although some management analysts work for the company that they are analyzing, most work as consultants on a contractual basis.

Management analysts, often called management consultants, propose ways to improve an organization's efficiency. They advise managers on how to make organizations more profitable through reduced costs and increased revenues.

Duties

Management analysts typically do the following:

• Gather and organize information about the problem to be solved or the procedure to be improved
• Interview personnel and conduct on-site observations to determine the methods, equipment, and personnel that will be needed
• Analyze financial and other data, including revenue, expenditure, and employment reports, including, sometimes, building and using sophisticated mathematical models
• Develop solutions or alternative practices
• Recommend new systems, procedures, or organizational changes
• Make recommendations to management through presentations or written reports
• Confer with managers to ensure that the changes are working

Although some management analysts work for the organization that they are analyzing, most work as consultants on a contractual basis. 

Whether they are self-employed or part of a large consulting company, the work of a management analyst may vary from project to project. Some projects require a team of consultants, each specializing in one area. In other projects, consultants work independently with the client organization's managers.

Management analysts often specialize in certain areas, such as inventory management or reorganizing corporate structures to eliminate duplicate and nonessential jobs. Some consultants specialize in a specific industry, such as healthcare or telecommunications. In government, management analysts usually specialize by type of agency.

Organizations hire consultants to develop strategies for entering and remaining competitive in the electronic marketplace.

Management analysts who work on contract may write proposals and bid for jobs. Typically, an organization that needs the help of a management analyst solicits proposals from a number of consultants and consulting companies that specialize in the needed work. Those who want the work must then submit a proposal by the deadline that explains how they will do the work, who will do the work, why they are the best consultants to do the work, what the schedule will be, and how much it will cost. The organization that needs the consultants then selects the proposal that best meets its needs and budget.

Work Environment About this section

Because they must spend a significant portion of their time with clients, analysts travel frequently.

Management analysts held 718,800 jobs in 2010. They usually divide their time between their offices and the client's site. Because they must spend a significant amount of time with clients, analysts travel frequently. Analysts may experience stress when trying to meet a client's demands, often on a tight schedule.

In 2010, about 23 percent of management analysts were self-employed. Self-employed analysts can decide how much, when, and where to work. However, self-employed analysts often are under more pressure than those who are wage and salary employees, because their livelihood depends on their ability to maintain and expand their client base.

Management analysts worked in the following industries in 2010:

Work Schedules

Analysts work under tight deadlines, which often require working long hours. In 2010, nearly one-third worked more than 40 hours per week.

How to Become a Management Analyst About this section

A bachelor’s degree is the typical entry-level requirement for obtaining a management analyst position.

Most management analysts have at least a bachelor’s degree. The Certified Management Consultant (CMC) designation may improve job prospects.

Education

A bachelor’s degree is the typical entry-level requirement for management analysts. However, some employers prefer to hire candidates who have a master’s degree in business administration (MBA). In 2010, 28 percent of management analysts had a master’s degree.

Few colleges and universities offer formal programs in management consulting. However, many fields of study provide a suitable education because of the range of areas that management analysts address. Common fields of study include business, management, accounting, marketing, economics, statistics, computer and information science, and engineering.

Analysts also routinely attend conferences to stay up to date on current developments in their field.

Certification

The Institute of Management Consultants USA, Inc. (IMC USA) offers the Certified Management Consultant (CMC) designation to those who meet minimum levels of education and experience, submit client reviews, and pass an interview and exam covering the IMC USA's Code of Ethics. Management consultants with a CMC designation must be recertified every 3 years. Management analysts are not required to get certification, but it may give jobseekers a competitive advantage.

Work Experience

Many analysts enter the occupation with years of work experience. Organizations that specialize in certain fields try to hire candidates who have experience in those areas. Typical work backgrounds include management, human resources, and information technology. 

Advancement

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

Important Qualities

Analytical skills. Management analysts must be able to interpret a wide range of information and use their findings to make proposals.

Communication skills. Management analysts must be able to communicate clearly and precisely in both writing and speaking. Successful analysts also need good listening skills to understand the organization’s problems and propose appropriate solutions.

Interpersonal skills. Management analysts must work with managers and other employees of the organizations where they provide consulting services. They should work as a team toward achieving the organization’s goals. 

Problem-solving skills. Management analysts must be able to think creatively to solve clients' problems. Although some aspects of different clients' problems may be similar, each situation is likely to present unique challenges for the analyst to solve.

Self-confidence. Management analysts work under fairly high pressure. They should be confident and self-motivated when working with clients.

Time-management skills. Management analysts often work under tight deadlines and must use their time efficiently to complete projects on time.

Pay About this section

The median annual wage of management analysts was $78,160 in May 2010. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $43,900, and the top 10 percent earned more than $138,790.

Analysts work under tight deadlines, which often require working long hours. In 2010, nearly one-third worked more than 40 hours per week.

Job Outlook About this section

Employment of management analysts is expected to grow 22 percent from 2010 to 2020, faster than that average for all occupations. Demand for consulting services is expected to grow as organizations seek ways to improve efficiency and control costs. As markets become more competitive, firms will need to use resources more efficiently.

Growth will be particularly strong in smaller consulting companies that specialize in specific industries or types of business function. In addition, more management analysts will continue to be needed in the public sector, as federal, state, and local government agencies seek to reduce spending and improve efficiency.

Growth of international business will also contribute to an expected increase in demand for management analysts. As U.S. organizations expand their business abroad, many will hire management analysts to help them form the right strategy for entering the foreign market.

Many firms are also expected to hire information and other technology consultants who specialize in areas such as lowering energy consumption or implementing “green” initiatives.

Job Prospects

Jobseekers may face strong competition for management analyst positions because the high earning potential in this occupation makes it attractive to many jobseekers. Job opportunities are expected to be best for those who have a graduate degree or a certification, specialized expertise, and a talent for salesmanship and public relations.

Contacts for More Information About this section

For more information about management consulting, visit

American Academy of Financial Management

Association of Management Consulting Firms

For more information about the Certified Management Consultant designation, visit

Institute of Management Consultants