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1) Different types based on size and focus:
Boutique CSR/sustainability consulting firms do exist.
Indeed, according to Riva Krut, Vice President and Regional Manager of
Cameron-Cole, “In the US there are no large sustainability consultancies”
that are the size of a Bain or a Marakon. The
lack of scale is due in part to hurdles to reaching the next range of size.
What people mean by boutique firm varies on several different axes based
on size and focus:
Size:
·
1-2: One or two person firms or ‘soulpreneurs’
as Ellen calls them. Many are
named after the principal, e.g. Jeana Wirtenberg & Associates, and Donald
Aitken Associates. Soulpreneurs can
be very profitable because they have little overhead.
For soulpreneurs, the hurdle of increased overhead costs (hence, loss of
profitability) make growth unattractive.
·
3-100: Most boutique firms have between
5-30 consultants and have been in business for less than ten years.
Examples include SustainAbility, and Domani Sustainability Consulting,
LLC. Foundation Strategy, for
example, has 13 fulltime staff. Managing
Director Mark Kramer says this is a tough size because overhead is substantial
but they don’t have the economies of scale of the large management
consultancies.
Focus:
·
Environmental: Firms that have environmental
consulting backgrounds, often with a strong tradition of engineering-based
projects, impact assessments and remediation engagements.
For example, Cameron-Cole or Environmental Resources Management.
·
Strategy:
Strategy consulting firms that have added a CSR/sustainability focus to their
mix.
·
Nonprofit/Membership Organizations: Nonprofit, advocacy groups
that have a membership organization based on CSR principles. They tend to also
supply consulting services to their member companies.
For example, Ceres or BSR.
·
PR/Branding/Communications: Many firms are getting
involved in the communicating
of social responsibility. For
example, Trium Group.
·
SRI: Social Responsible Investing (SRI) firms that
also do consulting though it is less visible
According to Michelle Lapolla, Manager of Consulting Services at KLD, its
very common for SRI companies like KLD to have consulting practices which focus
on researching and grading companies based on their CSR performance rather than
advising companies on how to be more socially responsible. The opportunities
in this space are expected to grow in the next five years.
2) Slow
growth: Insiders we interviewed all
agreed that the sector is growing slowly. All
of the 3-20 person firms that we spoke to have openings or are planning to in
the near future. William Sarni,
founder of Domani Sustainability Consulting said,
“The jobs are out there and will increase. Things are definitely changing and
there is increasing demand.” However,
a common refrain amongst our interviewees is also a desire to stay small.
Job opportunities
are also hard to find because even if there is growth in the consulting
industry, there is stronger growth in the number of
university
graduates (undergrad and grad) who are interested in the field.
The industry is constrained by the structure of the firms, fierce
competition, and by the smaller budgets that corporations have for CSR
consulting engagements. As John
Elkington, Chairman of SustainAbility noted, “It is always a struggle.”
Even though the management consultancies are starting up
CSR/sustainability practices, much of their work seems to focus on compliance
issues.
3) Twice as many in
Europe
vs. US:
Based on Ellen’s research, there are twice as many boutique firms in Europe
than in the
US.
Kramer believes this is partially because US firms still see CSR as a
necessary evil while that notion is less prevalent in
Europe
.
4) Technical experience a plus:
Many of the positions that we saw require technical experience such as
environmental engineering.
5) Management consulting experience a plus:
Some
of the more strategy-focused consultancies are looking for ex-management
consultants. This is partially because many of these firms were founded by
ex-management consultants who like to hire their own.
It is also a capacity issue. Said
Kramer, “We mainly hire from the big management consulting firms
because we’re small and we can’t afford to create a training program.”
Sarni had a slightly different take: “The professional experience is
more important than the education background, but anyone we hire has to really
care and believe in this stuff.”
6) Business and financial skills increasing in
importance: Business
and financial skills are becoming more important as consultants help clients
articulate sustainability initiatives in business language to internal
stakeholders. Another reason
business skills are increasingly helpful is increasing demand for quantifiable
metrics such as ROI, and supply chain analysis.
7) Look beyond the boutique ‘consulting’ firms
for jobs:
Getting into this niche requires
creativity. Here are some ways to
land a job:
·
Be available for
contract work, especially for soulpreneurs.
It is a great way to get your feet wet.
Jeana Wirtenburg, a soulpreneur, often contracts associates when she gets
a large project but does not want to keep any permanent staff because
subcontracting is more efficient and less expensive.
Nonprofit membership organizations and SRI funds also have advisory
services that may be of interest.
·
Approach a firm
of interest with a business development proposal in which you develop a stand
alone business
unit for the boutique firm and the revenue you generate will be
your salary. This would allow you to
be entrepreneurial while working with a boutique firm of interest, and give them
a reason to bring you onboard.
8) Jobs
are out there but careers may not be: The lack of scale in this industry led Krut to say, “There are jobs but
just no careers in sustainability consulting.
Without a large firm there isn’t really a career path.”
Kramer disagrees, “This is a field. It’s not a huge field, but it’s
a field and there is growth.”
Fi Cheng welcomes
your comments at Fi.Cheng@aya.yale.edu
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