Career Advice: MBB vs Big 4?
Sequel to my earlier post on Big 4 vs CBN vs FIRS, someone asked that I do similar comparison for Management Consulting Big 3 (McKinsey, Bain, BCG aka MBB) and Professional Services Big 4 (KPMG, PwC, EY, Deloitte).
Here we go:
MBB refers to the 3 tier 1 management consulting firms in the world – McKinsey, Bain, BCG. All American companies with international footprint, each present in over 35 countries. Big 4 are the four biggest networks of professional services firms in the world, in over 100 countries.
A major difference between the MBB and Big 4 is, while MBBs are restricted to management consulting/advisory, Big 4 typically do 3 things – accounting/audit, tax and consulting/advisory. To compare apple with apple, the comparison therefore will be on career in consulting in both classes of firms.
That MBB are also called Consulting Big 3 already means they are about the height of management consulting (MC) career. In MC, the Big 4 belongs in Tier 2. In the 2020 ranking of best consulting firms in the world, American careers website, Vault, ranked McKinsey 1st, BCG 2nd, Bain 3rd, Deloitte 4th, EY 7th, PwC 8th and KPMG 14th.
Now the comparison
1. Ease of entry
Big 4 are way easier to get a job in, either in Nigeria or abroad. Any above average graduate that can pass their test and interview can get jobs there.
MBB’s recruitment is extremely tough. McKinsey’s PST is arguably the toughest job test in the world. And their interview, possibly even tougher – complex cases that can turn your head. Big 4 are also present in many countries, more personnel
VERDICT: Big 4 easier to get into.
2. Job security
There is job security in both. Possibly because of the quality control in their recruitment process, which gets them best brains. They both hardly lay off. It is often said that the MCs advise other companies to lay off during crisis but they don’t themselves.
However, MBB close down offices routinely, especially in emerging markets. I think two of them have left Nigeria. That hardly happens to Big 4. Generally, MBB are more likely to lay off.
VERDICT: Big 4 has slightly better job security.
3. Pay and compensation
No debate here. MBB pay way higher and have better perks. They charge clients a lot of money for their consulting services, way more expensive than Big 4. So they have a lot of money (and less staff to share). And the bonuses too.
VERDICT: MBB by miles.
4. Career growth
Both are well structured with defined layers. You have idea of where you’ll be in the next few years. The career ladder and promotion system are well defined, although there is increasing complaint among junior staff of MBB about use and dump.
VERDICT: Tie
5. Training and exposure
Great learning opportunities in both. By your 5th year in MBB, you could be sitting in the same room with Finance Ministers of emerging markets, presenting to them. You can be on complex international assignments for governments and big corporates.
MBB guys do a lot of travel, stay in best hotels, jumping from Hilton Singapore to Mariott Dubai.
VERDICT: MBB
6. Brand and future opportunities
Both classes of firm have great brands but MBBs are on a higher pedestal. After 7 years with McKinsey New York for example, you can return to your country and be offered senior role in the best companies in your country. Big 4 wont command that.
MBB on your CV opens doors more easily. And you are trained to “bobo” more. Even if you go into private practice or start a company, the MBB brand will still help. Plus they have a strong network of old staff and esprit de corps.
VERDICT: MBB
7. Work-life balance
Both are stressful jobs. Long hours of work. Tough deadlines. But MBBs usually involve more travels because they are present in less countries but have engagements all over the world, less time for family. Even at airport lounges, still working with laptop.
Some schedule their rest/sleep only in planes. Not so much travel is involved in Big 4 because they have presence in more countries and can use local network of resources for many assignments.
VERDICT: Big 4
8. Village value
Both are not well known on the streets. So your village people will not know where you are working. Less people to ask you for money. The Big 4 a little well known if you have many graduates in your village.
FINAL VERDICT
For the brand, the pay, the perks, the exposure, and the “packaging” factor, difficult not to go with MBB. As a matter of fact, comparison is usually done between MBBs and the IBs (Goldman Sach, JP Morgan, Morgan Stanley), not with Big 4. The MBBs are on another level from the Big 4.
Lol just jumped on this… hopefully I get a response to my question “what is your opinion on moving from assurance in a big4 to one of the big 3 firms in Nigeria”. Consodering the sharp contrast in roles.