Management Analysts Overview
Keen competition is projected, though there will be a 24 percent employment growth. Sometimes, a bachelors degree is all that is needed for an entry-level position, however most jobs require specialized expertise or a masters degree. In fact, those with a graduate degree, specialized expertise, sales and public relations skills should have the best opportunities. Close to 26 percent are self-employed, which is three times the average for all occupations.
Nature of the Work for Management Analysts
Management analysts are hired to help businesses remain competitive in an industry that continues to get more complex with time. Management analysts, also known as management consultants in the private industry, suggest methods to improve an organization’s profits, structure and efficiency.
For example, a small company that is experiencing rapid growth might hire a management analyst that is an expert in just-in-time inventory management to aid in improving its inventory control system. If a large company has recently acquired a new division, a management analyst could be hired to determine the most efficient way for the corporation to operate and get rid of duplicate or uneccessary jobs. The rise of the electronic marketplace has lead to a new role for the management analyst, which is to develop strategies for entering and remaining competitive in this relatively new marketplace.
Some management analysts work in firms, while others might be self-employed. It is common to either specialize in one particular industry or in a specific business function, like marketing, information systems and logistics. Management analysts who work in government specialize in a particular agency. This work demanded by this career varies with each client and employer. On some projects, they would work on a team of consultants, each who are experts in one field. Other times, a consultant works independently, or with the organization’s manager.
A public or private business may hire a management analyst for a variety of reasons. Some need a consultant to figure out what resources will be needed or what difficulties may arise if they pursue a particular venture, while others simply lack the internal resources to complete a project. Organizations retain a management analyst by soliciting a proposals from various consulting firms outlining the details of the project, references from previous clients, staffing requirements and a completion deadline. Once the proposals have been reviewed, the company selects the proposal that is the best fit for their project’s needs. Sometimes, a firm will hire a permanent an internal management consulting group.
After the consultant has been retained, it is their job to analyze the data relevant to the projects, such as employment, annual revenues or expenditures, as well as interview managers and employees. Next, they determine a course of action to solve the problem. Management analysts often gain insight into the problem by building and solving mathematical models.
Once the problem is solved they report findings and recommendations to the organization. Suggestions may be submitted in writing, or through an oral presentation. In some cases, consultants are retained to help execute their suggestions.
Management analysts spend an equal amount of time in their office and at the client’s site. Travel is frequently required in order to spend time at the client’s organization.
Generally, consultants work at least 40 hours a week, but they might spend a significant amount of time rushing to complete deadlines, which are often on a tight schedule. This overtime work is common and is usually unpaid.
Training, Other Qualifications and Advancement for Management Analysts
The minimum educational requirements vary between government and private industry. Most employers in the private industry like to hire applicants who hold a masters degree and have some experience in the field in which they wish to consult. Other businesses will hire someone with a bachelors degree as research analysts or associate and later promote them to a consulting position. In government, sometimes a graduate degree in combination with related experience is sufficient, while other agencies may hire an applicant with a bachelors degree for entry-level management analyst positions.
There are very few colleges or universities that offer management consulting programs, however one interested in this career is encourage to pursue a degree in business, management, marketing, accounting, statistics, economics, engineering or computer and information science.
Due to the large amount of independent work, a management analyst needs to be disciplined and self-motivated. Creativity, interpersonal skills, strong written and oral communication skills, time management skills, good judgment and of course analytical skills are all desirable traits. As consulting teams become more common, the ability to work in teams has gained importance.
Once management analysts gain experience, they take on more responsibilities and begin to manage their own hours. Senior consultants often work on more difficult projects and begin to seek out new clients. In some cases, a person who demonstrated exceptional skills may advance to a company partner and focus on bringing in new clients and increasing revenue. In other situations, a senior consultant may leave their firm and to accept a senior management position at a different company.
The one certification, the Certified Management Consultant (CMC) title is offered by the Institute of Management Consultants USA, Inc. In order to earn this certificate, one must submit client reviews, meet the minimum levels of education and experience and pass an interview and examination covering the IMC USA’s Code of Ethics. Though not mandatory, certification may give applicants a competitive edge.
Top 10 Most Popular Management Schools
1. University of Phoenix (Multiple Campus Locations)
2. American InterContinental University (Multiple Campus Locations)
3. Western International University, Phoenix (Phoenix, Arizona)
4. Webster University (Saint Louis, Missouri)
5. Community College of the Air Force (Montgomery, Alabama)
6. Strayer University (Multiple Campus Locations)
7. Indiana Wesleyan University, Marion (Marion, Indiana)
8. DeVry University (Multiple Campus Locations)
9. University of Maryland - University College (Hyattsville, Maryland)
10. Central Michigan University (Mount Pleasant, Michigan)
See All Management Schools
Top 10 Most Popular Online Management Schools
1. University of Phoenix - Online School
2. American InterContinental University - Online School
3. Colorado Technical University - Online School
4. Saint Leo University Online
5. Embry Riddle Aeronautical University - Online School
6. Jones International University - Online
7. Northcentral University - Online School
8. San Joaquin Valley College - Online
9. Purdue University Global
10. Ashworth College - Online School
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Employment and Job Outlook for Management Analysts
Number of People in Profession
Changing Employment (2008-2018)
Employment is projected to grow much faster than average (increase 20% or more).
Employment of management analysts will see a faster than average growth, about 24 percent in the next decade. This is largely due to the rapidly changing business environment that have compelled organizations to reevaluate their operations. Some of these changes include growth in electronic commerce, regulatory changes and developments in information technology.
The current economic credit and housing crisis has also caused an increase in the need for consultants, as firms will need advice on handling the recovery process. The recent “green” initiatives will also contribute to the need for management analysts who specialize in technology management consulting in order to help implement “green” initiatives and lower energy consumption.
As international business continues to grow, a demand will grow for consultants to help transition American companies to foreign countries. In this situation, management analysts are hired to advise organizations on legal matters pertaining to the country, help with administrative, organizational and other matters and devise a strategy for entering the foreign market.
The international and domestic markets are being more competitive, which leads to a greater need for consultants to help firms operate more efficiently. They are hired to streamline operations, devise marketing strategies and aid in reducing costs. Lastly, consultants will be needed in the Federal, State and local government agencies who want to improve efficiency.
Even though employment growth is faster than average, strong competition is expected. Simply put, there are more applicants than there are jobs because analysts can come from a variety of educational backgrounds and work experience. This career is attractive to many people because of the independent work schedule and chance for high salary.
In times of an economic downturn, management analysts may suffer. They are considered an extra expense, so they are sometimes one of the first to be laid off. However, this may also lead to an increase in work because they must advise businesses on how to cut costs and increase revenue.
Earnings and Salary for Management Analysts
There are many factors that determine the salary of a management analyst including education and experience, specific expertise, geographic location and size of the employer. Management analysts will generally find the highest salaries at large firms or metropolitan areas. The median salary wage of management analysts is $73,570. The highest 10 percent earned more than $133,850, while the lowest 10 percent earned less than $41,910.
They usually receive common benefits and less common benefits including, bonuses for excellent work and profit sharing. Most of the time, the employer reimburses travel expenses. Management analysts who are self-employed have their own office and provide their own benefits. The median annual wages from the top management analysis industries are:
Computer systems and design related services: $82,090
Management, scientific and technical consulting services: $81,670
Federal Executive Branch: $79,760
Management of companies and enterprises: $73,760
State government: $55,590
Annual Salary for Management Analysts
On average, Management Analysts earn $75,250 per year.
Source: Bureau of Labor Statistics Occupational Outlook Handbook