-If you are looking for a company that specializes in audit, tax, or any other accounting function, the Big Four is the holy grail.
-If you are looking for a company that specializes in providing consulting services to upper level management, then the MBB is the holy grail. The Big Four are good secondary options, because providing consulting services would come natural by way of the other services they traditionally provide (audit/tax/advisory.)
Factors that put MBB over Big 4 with respect to consulting services includes the fact that:
- Consulting is their core business
- There are levels of prestige and pay within consulting. Strat is the most prestigious, followed by Ops, then implementation. In Strat, you're only dealing with the highest level executives in a company. The MBB specializes in Strat and may occasionally do some Ops work. The Big Four historically specialized in some Strat, but more Ops, and Implementation. There is a reason for this.
- Accountants make informed decisions based off of past performance. They look back.
- Strategist make decisions by looking into the future. They looking forward.
- So these are two different skill sets.
- Accountants, although retaining great organizational value, don't necessarily make great strategist.
- So there is a stigma about hiring accountants to do strategy work and the Big Four is aware of this.
- Which is why the Big Four has had to strip down there consulting arms into separate business entities to put more distance between them and the audit/tax side.
- For instance, Deloitte. Deloitte has a management consulting arm that performs strat, ops, and implementation work. But since Deloitte is firstly an accounting firm, they've had to create a separate subsidiary that delineates from it's accounting arm, Deloitte Consulting. Even more, they've had to carve out separate subsidiaries to distinguish between the types of management consulting work that they perform. The arm of Deloitte Consulting that does pure strat work was carved out and became Monitor, to put even more space between Deloitte and it's "name" being known as an accounting organization. Even more, Doblin was carved out of Monitor, and they focus on pure innovation. Deloitte Consulting does more general consulting work that spans the gamut of all specialties.
- With that being said, Monitor is more prestigious than Deloitte Consulting because it pays more and is pure strat work which is why it's ranked higher (2nd tier) right under the MBB. It is separate from Deloitte Consulting.
- All the other consulting arms of the other accounting firms follow suit. Strategy& is the pure strat arm carved out of PwC which is why it's ranked higher in the 2nd tier along with Monitor.
- Generalist vs. Specialist: Being a generalist is seen as having higher value than being a specialist. MBB ensures that their employees stay generalist. Whereas Big Four consulting requires you to eventually specialize.
- Selectivity: MBB recruits from elite MBA programs. Big Four Consulting recruits from a broader but still highly competitive programs.
- Pay/Exit Opps: Higher pay and better exit oops with MBB than Big Four.
Okay, with all of that being said, I am in no way saying that Deloitte is trash. Deloitte is one of the best and most prestigious companies in the world.
But you all have to realize that in industries like law, finance, management consulting, accounting, and medicine, industries where you make a lot of money, and that were historically upper middle/upper class professions, things are very hierarchical, and there is pecking orders and prestige values assigned everywhere.
-In accounting, advisory is sometime seen as being more prestigious than audit and tax.
- Audit and Tax is more prestigious than bookkeeping and payroll.
- Within the Big Four, Deloitte and PwC is more prestigious than EY and KPMG.
- EY and KPMG being more prestigious than Grant Thorton, McGladerey, or Crowe.
- The M7 is considered to be more prestigious than the T20.
- Post MBA, management consulting and investment banking are considered to have more prestige than corporate finance and non-profit.
- Hedge Fund, Private Equity, and Investment Management more prestigious than consulting and banking.
- In consulting, you have strat vs. ops vs. implementation.
- You have distinguishes being made between buyside vs. sell side.
- Front office vs. middle office vs. back office
- Target vs. non-target.
It goes on and on...
So don't take offense because I'm just stating the pecking order the way I know it to be. Traditionally, HYP grads did not go to Ivy League to go work for the Big Four. They went to Ivy League because those schools pipelined into MBB which pipelined to CEO positions. Although Deloitte is a great company, it's just a little bit incredulous that a Harvard grad would choose Deloitte over a place like Bain if that option was on the table. It's just the way the pecking orders are.
I didn't make the rules.