£7,000 day rate - how the other half live

[greenlake]

My lunch costs more than that

love MF

Well, he does like his regular bucket of fried chicken....

[Lance]

I understand what you’re you’re trying to say but you’re wrong because at that level the utilisation model is different. Consulting Partners are expected to bill about 10-20% of their time. Their earnings most certainly can equate to £7k a day because the rest of their time is spent on selling and client engagement.

I’ve worked for a UK consulting firm where the most senior consulting partners were able to get annual bonuses of £1m or more. The big US strategy consulting equivalent partners can make triple that.

For a minute let’s assume you’re not talking tulip, and we’ll look at the numbers.

£7k a day, for 10% of the time is £140k p.a.
How does someone get over £1m bonus for that?

[DOT COM]

In engineering iv

[vetran]

For a minute let’s assume you’re not talking tulip, and we’ll look at the numbers.

£7k a day, for 10% of the time is £140k p.a.
How does someone get over £1m bonus for that?

because they then find 20 consultants jobs at £1k a day for another 250+ chargeable days.

Have you never seen bait & switch done by the consultancies? Here is the guy who wrote the program to help you with the project, but as he is so expensive we will supply a number of experts he personally trained (via a youtube video). Rinse & repeat, original expert turns up once a quarter & eats lunch.

[vetran]

Being in engineering sector, best I ever managed was £40 an hour.

Should have been in computers Grandad even permies earn that.

That is why I got out of Engineering 30 years ago! One of the best choices ever.

[CoolCat]

What, you think that’s bogus? I’m talking about senior level consultants from the likes of McKinsey, not someone who can do a bit of business analysis or coding. According to this Financial Times article, Directors at McKinsey earn between $1-3million a year.

Subscribe to read | Financial Times

There are plenty of other articles about rates at the big strategy consultants that back those figures up.

Ah McKinsey, responsible for such success stories as how hp should be split, how the merged hpe and CSC should be structured into dxc and the whole business structure.

I am sure the PowerPoint and BS looked and sounded good.

[dogz111]

I've worked for two of the 4 large consultancies and day rates of a partner in specialist areas could be north of £7k per day in tax, restructuring as examples

What you have to remember here is that companies are paying a premium for the stamp of PwC, EY, KPMG or Deloitte which carries weight with regulators or the board, which we as independents just don't have.

A partner, whilst charging £7k per day will be conscious that this doesn't necessarily provide value to the client so will usually bill 0.25 or 0.5 day per week predominantly to show the internal risk function that they have a grasp of the project and its in control

The bulk of the team will be made up of lower grades actually doing the work, whilst being overseen by an SM or Director who will typically also book a smaller amount of time than the core team

Partners do usually earn in excess of £1m per year but this is derived by the volume of work and profitability of jobs along with other key KPIs they must meet such as risk hurdles

Whilst £7k per day might be the rate, no member of the team will receive anything close to that before bonuses

[password]

I would very well believe the 7k figure and then some.

My thinking is... you hear of the odd £1k per hour high powered professional/consultant here and there, making a work day equate to about £7k.

I once had an issue and was quoted £400 per hour for partners time at a boutique law firm. Easy to see how some big players would get that up to a £1000.

I reckon the million dollar bonuses are relating to bringing in billable time for armies of consultants and new business. I doubt it's contingent on single billable only.

[Zigenare]

I would very well believe the 7k figure and then some.

My thinking is... you hear of the odd £1k per hour high powered professional/consultant here and there, making a work day equate to about £7k.

I once had an issue and was quoted £400 per hour for partners time at a boutique law firm. Easy to see how some big players would get that up to a £1000.

I reckon the million dollar bonuses are relating to bringing in billable time for armies of consultants and new business. I doubt it's contingent on single billable only.

Have you guys not read "The Firm"?

Tells you all you need to know about "Consultants".

[Andy2]

Some doctors in NHS do private practice at £500 per hour