More and more people are considering a career or job change into consulting, as consultants can work on large-scale projects and typically earn higher salaries than general Japanese companies.
However, many people may be thinking about becoming a consultant but don’t know what types exist or aren’t sure which consulting firm to choose. Consultants can be classified into several types depending on their work content and clients.
In this article, we introduce 8 types of consultants by industry and 4 types by client, explaining the characteristics of each.
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What Does a Consultant Do?
The job of a consultant is to identify management challenges and concerns of client companies and propose improvement measures. To solve problems, they tackle the core of management, including formulating business strategies, planning initiatives, and reviewing business processes.
Some consultants operate as sole proprietors, but most belong to companies called consulting firms, where the main focus is supporting clients in solving a wide range of challenges in areas such as management and IT.
＞＞Learn more about consultants
Consultants Can Be “Generalist” or “Specialist”
Most people who work as consultants are either a “generalist consultant” or a “specialist consultant.”
A generalist consultant refers to someone who has broad knowledge and various know-how related to specific industries and can provide comprehensive consulting to companies. Examples include management consultants and store consultants, who propose ways to improve the management of companies or shops and make operations more efficient.
On the other hand, a specialist consultant refers to someone who has experience and knowledge in a specific field. For example, consultants in the food service or healthcare sectors fall into the specialist consultant category due to their focus on a particular field.
If you are considering working as a consultant, clarify which type — generalist or specialist — aligns with the field you want to pursue.
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【By Industry】8 Popular Types of Consultants and Their Job Descriptions
Consultants can be divided into the following 8 types by industry.
- Strategy Consultants
- General Consultants
- Accounting Consultants
- Financial Consultants
- HR Consultants
- IT Consultants
- Business Restructuring Consultants
- Think Tank Consultants
The consulting firm you choose will differ depending on which industry you want to be involved in, so check what options are available in advance.
Here, we introduce the job descriptions of popular types of consultants.
1. Strategy Consultants
Strategy consultants are consultants who propose strategies to help clients expand into new businesses or grow their market presence.
For example, they support the formulation of growth strategies, M&A strategies, and global strategies. They also handle management-level challenges such as supporting entry into new businesses, developing new products, and reorganizing organizations.
Since many of the clients of strategy consultants are large corporations, compensation tends to be high. As a result, strategy consultants generally earn higher salaries than other types of consultants.
2. General Consultants
General consultants are consultants who can provide broad advice across a wide range of industries rather than focusing on a specific field.
Rather than a single consultant handling everything, consultants with expertise in each field work together to comprehensively support clients. While foreign firms were once dominant in this space, Japanese firms with strong capabilities as comprehensive consulting firms have become increasingly prominent in recent years.
3. Accounting Consultants
Accounting consultants are consultants who provide advice aimed at improving the accounting practices of client companies or businesses. Key responsibilities include monitoring and responding to changes in accounting regulations, improving accounting processes, and advising on investments and cost reduction.
In addition to specialized accounting knowledge, a solid understanding of business management is required. Since accounting is a constantly evolving field, ongoing study while working is essential.
For example, holding qualifications such as a Certified Management Consultant or Certified Public Accountant (CPA) allows you to make full use of your knowledge. Even without formal qualifications, experience in accounting at a financial institution such as a bank or a corporate accounting department can be an asset during job hunting or career transitions.
Note that accounting consultants are often required to demonstrate English proficiency as they advance in seniority, so those who are fluent in English will have an advantage.
4. Financial Consultants
Financial consultants are consultants who examine and formulate financial strategies for clients and improve business processes. Focusing on “finance” — one of the core functions of corporate organizations — they provide advice on fundraising, investment strategy formulation, M&A, and related matters. By responding swiftly to legal changes at all times, they earn the trust of their clients.
Financial consultants must constantly think of strategies to quantify all assets and enhance their value, with the goal of improving the client’s market capitalization. Therefore, having specialized knowledge in corporate management, accounting, and law is advantageous when seeking a position as a financial consultant.
5. HR Consultants
HR consultants are consultants who help clients resolve challenges related to performance evaluation and talent acquisition. Specific responsibilities include designing HR systems and employee benefits, building training and development programs, and reforming HR systems in response to overseas expansion or M&A activity.
A key difference from other types of consultants is that rather than focusing on external-facing initiatives, HR consultants build systems from within the organization, such as analyzing HR challenges.
Since HR knowledge and skills are frequently required, this position is often pursued by those with HR experience at operating companies. Gaining consulting experience as an HR consultant also strengthens your profile for transitioning to other consulting fields, broadening your future career options.
6. IT Consultants
IT consultants are consultants who propose IT strategies, system operations, and the introduction of new systems for clients. They support client businesses by proposing IT strategies aligned with management strategies, recommending system development, and optimizing existing systems.
IT consultants are often confused with system engineers (SEs), but the role of an IT consultant is to decide which systems to implement to resolve management challenges. A system engineer’s role is to build the systems that the IT consultant calls for.
IT consultants require not only IT knowledge, but also information-gathering skills and logical thinking to clearly identify client challenges. Keep in mind that compared to system engineers, IT consultants need a higher level of expertise and skills.
7. Business Restructuring Consultants
Business restructuring consultants are consultants who work with financial creditors and shareholders to support fundraising and business restructuring for clients facing management difficulties. This is considered one of the most sought-after fields in consulting, and demand has been growing in response to recent shifts in the global economic landscape.
Specific responsibilities include negotiating with financial institutions and proposing the reorganization of unprofitable businesses to transform the structure of the organization.
For those transitioning from other industries, experience at financial institutions, in lending operations, or in investment businesses such as financial consulting will be advantageous. Since business restructuring is the primary focus, management knowledge is required in addition to the skills you have developed.
Additionally, business restructuring consulting is often considered as a next career step by strategy consultants. Some go on to establish their own business restructuring consulting firms and become independent after gaining sufficient experience.
8. Think Tank Consultants
Think tank consultants are consultants who work at companies that have banks, securities firms, and similar organizations within their corporate group. They provide services specializing in research and system development, and may also handle business improvement and HR-related work.
Their main clients are large corporations that have banking or securities subsidiaries. However, think tank consultants may also take on work for small and medium-sized enterprises that require the development of sophisticated systems for sales, production, or HR management.
【By Client】4 Types of Consulting
The type of consulting varies depending on who the client is and what kind of company or organization they represent. Clients can mainly be divided into the following 4 types.
- Government / Local Authorities
- Executives / Presidents
- Department Heads (HR / IT)
- Other Clients’ Industries / Business Types
Let’s take a closer look at each type of consulting by target audience and the differences between them.
1. Consulting for Government and Local Authorities
Consulting for public institutions such as government agencies and local authorities includes new system implementation and research and analysis consulting.
Multiple consulting firms may collaborate on a single project, and themes tend to be highly segmented.
2. Consulting for Executives and Company Presidents
Consulting for executives and company presidents requires comprehensive consulting that covers everything related to management.
Improving sales and profits is a key expectation, and long-term relationships with clients are also a characteristic of this type of consulting.
3. Consulting for Department Heads (HR / IT)
Consulting in areas such as HR and IT is often directed at department or section managers.
Key consulting services include improving operational efficiency within the client’s department and creating materials to help them make informed decisions.
4. Consulting Tailored to Other Clients’ Industries and Business Types
Consulting can also be categorized by the client’s industry or business type. For example, there is consulting for the manufacturing industry, the healthcare industry, and the service industry. Consultants work as professionals across various industries to deliver tailored consulting services.
Note that when providing management consulting, industry-specific support is required, so consultants with knowledge of the relevant industry play an active role.
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Characteristics of People Suited to Consulting
What kind of personality allows someone to thrive as a consultant? Many people want to know whether they are suited to consulting. Here, we introduce the characteristics of people who are well-suited to a consulting career.
- People Who Can Think with a Client-First Mindset
- People Who Find Fulfillment in Behind-the-Scenes Work
- People with Strong Logical Thinking Skills
- People Who Are Consistently Positive
- People with Intellectual Curiosity
- People with a Strong Drive to Improve
- People Who Can Listen to Others’ Opinions
People Who Can Think with a Client-First Mindset
The core of a consultant’s work is supporting the success of their clients. In other words, the ultimate goal is for the client to be satisfied and convinced. People who are suited to consulting are those who, before thinking “this is what I want to do,” can think “this is what the client wants to do.”
Of course, if the client resonates with your ideas and the direction and strategy become clear, there is no problem. However, if you cannot gain their agreement, you need to persuade the client taking into account their situation and relationships. True client-first thinking is not about “doing something because it’s right,” but about “getting others to understand it’s right and inspiring them to act.”
People Who Find Fulfillment in Behind-the-Scenes Work
The client is the star of any project, and the consultant plays a supporting role behind the scenes. Even when a project’s success is reported in the news, the consultant’s contribution is rarely acknowledged publicly.
Even without recognition in the spotlight, people who can find joy in the client’s results and in the broader impact that a project has on society — and who find satisfaction in contributing behind the scenes — are well suited to this work.
People with Strong Logical Thinking Skills
Logical thinking (logical reasoning) is a skill consultants use in every aspect of their work. It is needed when listening to a client’s challenges, calmly analyzing the causes of problems, and thinking through solutions. It is also essential for building hypotheses and mapping out verification approaches, as well as for structuring presentations of reports.
Even something as simple as meeting minutes or a report email must meet the standards of “well-organized content” and “clear reasoning.”
Since logical thinking is required every day in consulting, it is also important to consider whether you are comfortable with — and don’t find it burdensome to — “think things through” and “use your mind” continuously.
People Who Are Consistently Positive
What is required of consultants is not only skills, but also a positive and optimistic mindset.
Consulting is a profession that demands high capability, and the workload and pressure from clients can be significant. For this reason, maintaining a consistently positive outlook is an important factor for working effectively as a consultant.
In addition, consultants are often placed in complex interpersonal situations both inside and outside the organization. People who can overcome physical and mental stress with a forward-looking attitude — viewing challenges as opportunities for growth — and who genuinely enjoy thinking through problems, are well-suited to consulting.
People with Intellectual Curiosity
Consulting work involves resolving management challenges and formulating new business strategies, and there are no fixed answers. For this reason, people with intellectual curiosity — who enjoy thinking about questions like “what is causing this problem right now?” or “why is this successful company growing?” — are well-suited to consulting.
Since there is no clear-cut solution to every challenge, you may sometimes have to take a very roundabout path before reaching a conclusion. It is essential to be able to view a lack of immediate results as an increase in your own knowledge and experience.
People with a Strong Drive to Improve
Working as a consultant means constantly encountering things you don’t know or can’t yet do. However, you can’t tell a client who is paying a high consulting fee that you don’t know something or lack experience.
People who have the determination to resolve gaps in their knowledge by the next day, and who can enjoy catching up out of intellectual curiosity, are well-suited to consulting.
In addition, the mindset and skills required in consulting vary depending on your position. Some consulting firms offer training programs, so it is a good idea to take advantage of these to acquire necessary skills.
Furthermore, updating your existing ways of thinking and working enables you to develop the skills and mindset required. A mindset open to taking on new challenges is indispensable for consultants.
People Who Can Listen to Others’ Opinions
People who can genuinely listen to others’ opinions and ideas are well-suited to consulting. To draw out the true underlying challenge hidden beneath the surface problem, it is essential to carefully listen to what the other person is saying.
For example, if a client wants to improve office work efficiency, simply listening at face value may lead you to propose only office efficiency improvements. In reality, however, the underlying need may be to redeploy surplus staff to support the sales team or strengthen sales capabilities.
By listening carefully and asking questions based on nuances you notice, you can uncover the core challenge. This allows you to make proposals such as improving administrative efficiency and strengthening sales capabilities, potentially opening up entirely new markets.
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Skills Required to Become a Consultant
Every profession requires certain skills to do the job. Let’s review the skills needed to resolve clients’ management challenges, including personality-based aptitudes.
Logical Thinking Skills
A consultant’s job is to analyze a company’s management situation, identify problems, and then think through and propose solutions. Without the ability to provide objective, logical explanations to clients, you cannot convince them. Strong logical thinking skills are therefore indispensable.
Logical thinking refers to the ability to organize complex matters into a simple, clear form. You must approach discussions logically, based on the principle that “every outcome has a cause.”
The opposites of logical thinking are intuitive and illogical thinking. If you tend to make judgments based on impulse or personal feelings, work on developing your logical thinking skills.
Listening / Interviewing Skills
Consulting work is primarily project-based. It requires conducting interviews with each client, analyzing the management situation of each individual company, and identifying solutions and challenges that differ from client to client.
Listening skills do not simply mean the ability to listen carefully to what a client says. They refer to the research and analytical ability to extract core management challenges and maintain a high level of active listening.
Since extracting core management challenges is a critical step in carrying out your work, make sure to continuously develop your listening and interviewing skills as a consultant.
Communication Skills
In consulting, interviews and on-site investigations are conducted to uncover challenges the client may not have noticed themselves. The job of a consultant is to work together with clients to solve problems. People who are not comfortable talking with others or who struggle to communicate effectively with people they’ve just met are not well-suited to consulting.
Consulting work is fundamentally team-based, requiring you to share ideas with your colleagues and find the best solutions through repeated discussion and debate.
When people think of “someone with strong communication skills,” they may picture someone who gets along with everyone or who genuinely enjoys being around people. In a business context, however, the ability to accurately convey your own intentions and to actively listen to what others are saying are also key components of communication skills.
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Recommended Qualifications to Obtain Before Becoming a Consultant
Obtaining certain qualifications before becoming a consultant can be beneficial during job hunting or career transitions. Here, we introduce 5 recommended qualifications for those aiming to enter consulting without prior experience.
- Certified Management Consultant (SME Shindanshi)
- Tax Accountant (Zeirishi)
- Certified Public Accountant (CPA)
- Social Insurance and Labor Consultant (Sharoushi)
- Management Consultant (Keieishi)
Please read on for details on how to obtain each qualification and why they are worth pursuing for a career in consulting.
Certified Management Consultant (SME Shindanshi)
The Certified Management Consultant (中小企業診断士, SME Shindanshi) is a qualification for professionals who appropriately assess the management status of small and medium-sized enterprises (SMEs) and provide various forms of advice and recommendations. It is the only national qualification in Japan that certifies management consulting ability, qualifying holders as specialists who support the resolution of SME challenges and the revitalization of organizations. Holders also serve as intermediaries between companies and government agencies, as well as between companies and financial institutions, promoting improvements to the business environment and the swift adoption of relevant programs.
The SME Shindanshi examination consists of a first-stage exam and a second-stage exam, with the second stage divided into a written exam and an oral exam (interview). After passing the exam, candidates must complete practical training or training offered by a registered training institution, after which they can apply for official registration.
In the consulting industry, there are many job openings targeting holders of the SME Shindanshi qualification, indicating strong demand for this certification. As a recognized specialist in SME management, holding this qualification lends credibility to your advice. This is why many consulting firms actively recruit individuals with the SME Shindanshi qualification.
Holders have the flexibility to choose their own career path — whether as an independent consultant, or as a member of a consulting firm supporting management reform. However, since the qualification does not grant exclusive practice rights, original thinking, creativity, and initiative are particularly important.
Tax Accountant (Zeirishi)
A Tax Accountant (税理士, Zeirishi) is a tax professional who handles various tax-related duties, including tax consultation and assistance with tax filing procedures. To sit the tax accountant examination, candidates must meet specific requirements, such as having studied economics or law at university. Note that holders of a lawyer or CPA qualification can register as a tax accountant without taking the exam.
After registering as a tax accountant, many work independently or provide not only tax consulting but also management consulting. Since tax matters such as tax reduction strategies often require management-level consideration, many tax accountants develop knowledge of business management, and a significant number transition into management consulting careers.
Certified Public Accountant (CPA)
A Certified Public Accountant (公認会計士, CPA) holds a qualification focused on audit work, including the analysis and verification of financial statements, to help maintain a sound management environment. If a tax accountant is a professional who supports management from a tax perspective, then a CPA can be seen as a professional who promotes sound organizational governance from an audit perspective.
To obtain the CPA qualification, candidates must pass a national examination administered by the Financial Services Agency (FSA). While the number of exam applicants has been declining in recent years, the pass rate is around 10%, making it a demanding exam — thorough preparation is advised before sitting it.
The CPA is a national qualification granting exclusive rights to perform audit work. After qualifying, many join audit firms or CPA offices, while those who build their reputation independently may eventually be consulted by large corporations on management matters.
Social Insurance and Labor Consultant (Sharoushi)
A Social Insurance and Labor Consultant (社会保険労務士, Sharoushi) holds a specialist qualification in labor management and social insurance. It is particularly useful when providing advice on HR and labor management or labor-related matters.
Consultants are often required to provide accurate advice on clients’ HR systems and labor issues. Obtaining the Sharoushi qualification enhances your expertise and skills as a consultant.
Holding this qualification also enables you to offer clients more credible and reliable consulting services. However, experience and practical skills are equally important, so it is essential to gain hands-on experience while studying for the qualification. While it is possible to aim for a consulting career without prior experience, be aware that a strong commitment to continuous learning and genuine enthusiasm are required.
Management Consultant (Keieishi)
The Management Consultant (経営士, Keieishi) is a qualification obtained by many people aiming to join or transition to a consulting firm. It is well known as Japan’s oldest management consulting qualification, with a long and respected history. Because of this heritage, the Keieishi qualification is trusted by many business leaders, making it likely that holders can play an active role across a wide range of industries and situations. It is especially recommended for those with management experience.
To obtain the Keieishi qualification, candidates must have at least five years of practical management experience, meaning students are generally not eligible to apply. The exam is held twice a year, in May and November, with a pass rate of over 70%. Since most applicants are experienced management professionals, the high pass rate is maintained.
Frequently Asked Questions About Types of Consultants
Summary
Consultants are primarily divided into 8 types by industry, including strategy, general management, and finance, with each firm having its own areas of strength and specialization.
- Strategy Consultants
- General Consultants
- Accounting Consultants
- Financial Consultants
- HR Consultants
- IT Consultants
- Business Restructuring Consultants
- Think Tank Consultants
When entering or transitioning to a consulting career, it is a good idea to choose a field that aligns with your own strengths and expertise.
Note that the outlook for consultants is strong, and demand for consultants with specialized skills and knowledge is expected to continue growing. However, consulting is a profession that requires ongoing effort to keep information up to date and continuously develop expertise in order to keep pace with technological and societal changes.
As you think about your career path, keep in mind the qualifications that can strengthen your profile as a consultant.
