13 Qualifications Needed for Management Consultants! Can You Make a Career Change Without Qualifications?

There are no required qualifications to call yourself a management consultant, but holding valid certifications can expand your opportunities and increase trust from companies. However, there are multiple potentially useful qualifications, and many people may be unsure which ones to obtain.

This article introduces qualifications you should consider obtaining to become a management consultant and what kind of work each qualification is useful for. Sharpen your knowledge and practical skills through studying for certifications, and aim for a career change, job placement, or independent practice.

What Is a Management Consultant?

A management consultant refers to a person who provides consulting related to business management to companies. Consulting is the work of advising individuals or companies facing some kind of problem on solutions or ways to improve their situation.

Management consultants leverage their specialized knowledge and skills to diagnose and identify problems faced by clients, and provide advice and guidance aimed at problem-solving and operational improvement. Since many companies face some form of management challenge, the primary role is to provide concrete solutions to address those challenges.

Qualifications Are Not Required to Become a Management Consultant

To become a management consultant, having a qualification is not necessary. It is possible to work as a “management consultant” without any certification.

However, management consulting is not something anyone can do. To achieve results as a management consultant and earn trust from clients, broad management knowledge and highly specialized expertise are required.

Among management consultants, those who perform organizational and human resources consulting should note that you cannot call yourself a career consultant without a qualification.

To become a career consultant, you must pass the national examination “Career Consultant Examination” and then register on the “Career Consultant Registry.” Only those who are registered may use the title “Career Consultant.”

10 Management Consultant Qualifications to Leverage Your Specialized Skills

While no special qualifications are needed to become a management consultant, specialized knowledge and skills are essential.

For example, if a client is in a specific industry such as marketing, a consultant with strong expertise in social media marketing has an advantage. Furthermore, in the financial sector, there tends to be demand for consultants who handle only business restructuring finance or venture finance deals.

Here we introduce 10 types of qualifications suited for management consultants specializing in various fields.

Small and Medium Enterprise Diagnostic Consultant

The Small and Medium Enterprise (SME) Diagnostic Consultant examines the management status of small and medium-sized enterprises and provides various advice such as corporate growth strategies based on business analysis. The only national qualification that can demonstrate the abilities of a management consultant is the SME Diagnostic Consultant. It serves as a bridge between companies and the government, and between companies and financial institutions, playing a role in proper utilization of systems and maintaining a healthy business environment.

According to the Small and Medium Enterprise Agency’s “Current Status of SMEs,” Japan has 3.809 million small and medium-sized enterprises, accounting for 99.7% of all businesses. Many companies face various challenges and strategic concerns, and within the consulting industry there are many job openings suited for those holding the SME Diagnostic Consultant qualification, reflecting high demand.

Furthermore, the SME Diagnostic Consultant qualification is highly regarded in the consulting industry. Advising on growth strategies for small and medium-sized enterprises is not work exclusive to SME Diagnostic Consultants. However, being a recognized specialist in SME management allows you to provide persuasive advice. For this reason, the consulting industry actively recruits individuals holding the SME Diagnostic Consultant qualification.

Career paths vary widely — from becoming independently established to supporting management reform from within an organization. Since there are no exclusive practice rights, creative thinking, ideas, and drive are required.

Note that the SME Diagnostic Consultant examination requires passing both a first-stage and second-stage exam, with the second stage consisting of a written exam and an oral (interview) exam. After passing, candidates must complete practical training or training provided by a registered training institution, and upon completion can register as an SME Diagnostic Consultant. (SME Support Law, Article 11)

Reference: Small and Medium Enterprise Agency “Compilation of the Number of Small and Medium Enterprises and Micro Businesses (as of June 2021)“

Tax Accountant

A tax accountant is a tax specialist who handles tax-related tasks such as tax consultations and assistance with tax procedures. After registering as a tax accountant, it is common to work independently, but some also engage in management consulting in addition to tax consulting.

Tax-related matters such as tax savings often require management-level responses. As a result, many tax accountants possess knowledge of business management, and it is not uncommon for tax accountants to transition into management consulting.

To obtain a tax accountant qualification, it is mandatory to pass the national tax accountant examination. To sit for the exam, certain conditions must be met, such as having studied law or economics at a university. Note that those who hold a lawyer or certified public accountant license can register as a tax accountant without taking the exam.

Certified Public Accountant (CPA)

A Certified Public Accountant (CPA) analyzes and reviews financial statements through audit work to maintain a sound management environment. If a tax accountant is an expert who supports management from a tax perspective, a CPA is an expert who promotes sound organizational management from an audit perspective.

After obtaining the qualification, many people join a CPA firm or audit firm and build their career as assistants while working toward becoming a full CPA. With accumulated experience and earned trust, they may eventually receive management consultations from large corporations.

To obtain a CPA qualification, one must pass the national examination administered by the Financial Services Agency. The pass rate is around 10%, indicating it is by no means an easy exam. While the number of examinees has been declining in recent years, since it is a national qualification granting exclusive rights to audit work, the practical value of the certification remains high.

Business Manager (Keiei-shi)

A qualification held by many aspiring management consultants is the Business Manager (Keiei-shi). Known as Japan’s oldest qualification for management consultants, the Keiei-shi is trusted by many business owners. Therefore, holding this qualification opens up possibilities for active involvement across various industries.

Typically, becoming a Keiei-shi requires at least 5 years of business management experience, meaning students generally do not qualify to sit for the exam. The exam is held twice a year, in May and November, with a pass rate of over 70%. Since most examinees are specialists with extensive management experience, the high pass rate is maintained. It is therefore a recommended qualification for those with management experience.

Social Insurance and Labor Consultant (SR)

A Social Insurance and Labor Consultant (SR) handles record-keeping, document preparation, and application procedures based on labor and social insurance laws. It is a qualification aimed at promoting sound management by providing advice from the perspective of improving labor-management relations. The basic goal is to work from the perspective of company employees toward creating an ideal working environment for the enterprise.

To obtain the SR qualification, candidates must take and pass the national examination based on the Social Insurance Labor Consultant system. The exam is not open to everyone — certain conditions related to educational background and work history are imposed. Note that even without meeting the conditions, passing a national examination such as the administrative scrivener exam recognized by the Minister of Health, Labour and Welfare can provide eligibility to sit for the SR exam.

While the exam has eligibility restrictions and is not immediately accessible to everyone, it is a qualification worth obtaining if you want to expand your field of activity as a management consultant.

Administrative Scrivener

The Administrative Scrivener is a national qualification based on the Administrative Scriveners Act, a qualification that allows legal experts to serve as a bridge between citizens and government offices. Beyond drafting legal documents, practitioners can work across a wide range of fields including assistance with document submission procedures to government offices and consulting work utilizing legal knowledge.

For example, from drafting internal company regulations and contracts to handling application procedures for administrative scrivener corporations, the scope of an administrative scrivener’s activities is extensive. In recent years, demand for support and advice related to public financing applications, business succession, and business revitalization has also increased, meaning they often handle a broad range of overall business management tasks.

Judicial Scrivener

A Judicial Scrivener holds a qualification that contributes to all aspects of corporate management, from company establishment to dissolution. They primarily handle registration work, which publicly records property rights and obligations such as real estate. While it is also possible to request registration services from a lawyer, it is more common to request them from a judicial scrivener due to cost considerations.

For example, at the time of company establishment, they investigate whether the new company’s trade name is already in use by another company, and handle registration-related work such as trademark registration filings and obtaining permits. In terms of business management, when dealing with business succession, M&A, or dissolution, they work in teams with appropriate experts such as tax accountants, CPAs, social insurance and labor consultants, and administrative scriveners, making their scope of work broad.

Additionally, Japan’s licensed professions system is highly segmented by field — covering lawyers, tax accountants, CPAs, and others — with each providing advanced support in their respective area. Connecting small and medium-sized enterprises who are unsure which specialist to consult with the appropriate expert is also a role of the judicial scrivener. Upon request, they also serve as intermediaries between patent attorneys, administrative scriveners, and other specialists and companies.

The judicial scrivener examination is one of the most difficult exams, testing advanced legal knowledge. Since there is also an oral examination after passing the written exam, thorough preparation is essential.

Career Consultant

Career Consultant is a national qualification stipulated under the Vocational Ability Development Promotion Act, which came into effect in April 2016. Career consulting is defined as “providing advice and guidance to workers regarding their choice of occupation, career design, or the development and enhancement of their vocational abilities.”

After obtaining the Career Consultant qualification, many practitioners become involved in recruitment and retention support, as well as the planning and implementation of initiatives related to the motivation and skill development of workers, within the human resources, education, and talent development departments of companies and organizations. For this reason, many career consultants work at corporate HR and education-related departments, public employment support agencies, university career centers, recruitment firms, and staffing companies.

Specifically, many are directly involved in counseling at in-house career consultation rooms. Furthermore, it is not uncommon for line managers to use the qualification to support the career development of subordinates and colleagues through interviews and daily conversations, and to apply it to team building.

At public employment support agencies such as Hello Work, they support job seekers in self-analysis, career selection, and actual job-seeking activities. In addition to face-to-face consultations with job seekers, it is also possible to organize seminars for improving job-seeking and career change skills.

Career consultants are subject to confidentiality obligations and are prohibited from engaging in conduct that damages trust, making this a qualification with high social credibility.

Financial Planner

A Financial Planner is a qualification for a money expert who provides advice to resolve the financial concerns of individuals. To help realize dreams and goals, they collect all kinds of data — including personal values, economic conditions, income and expenditure, assets, liabilities, and insurance — to understand and analyze the current situation.

Based on this, they design asset plans and provide advice from various angles including long-term and comprehensive perspectives, and offer support in implementation. Depending on the situation, they also utilize networks of specialists in various fields such as lawyers, tax accountants, social insurance and labor consultants, real estate companies, insurance companies, and financial institutions.

There are three types of Financial Planner qualification examinations to choose from: the private qualifications “AFP Certification” and “CFP Certification,” and the national qualification “FP Skills Test.” An added benefit is that Financial Planner knowledge is not only useful for skill development as a management consultant, but also applicable to your own personal financial life.

PMP

PMP stands for “Project Management Professional,” an international certification recognized by the U.S.-based PMI (Project Management Institute). It certifies that the holder has knowledge of project management. Unlike qualifications that once passed are held permanently, the PMP requires renewal every three years, making it a certification that demands a continuous commitment to learning.

Note that a “project” refers broadly to any work with a set deadline. Project management is not about the actual work itself, but rather about managing the progress of a project. Therefore, the PMP’s role is to develop a plan for executing the project and control the work of team members to achieve the project’s objectives.

From a skill development perspective, learning how to carry out work in an orderly sequence makes it possible to improve the efficiency of future tasks. There is also the benefit of being recognized as “a person capable of managing projects that exist in any industry.”

Additionally, project management involves interacting with many different people, which increases the likelihood of expanding your professional network. Through the project management community, you can also expect your circle of activities as a management consultant to grow.

3 Management Consultant Qualifications Applicable Across Industries

Many people may want to provide consulting not just in a specific industry, but across a wide range of sectors. Here we introduce 3 qualifications that are advantageous regardless of industry.

Let’s look at what each of these qualifications entails.

MBA

An MBA (Master of Business Administration) is a qualification useful for management consultants regardless of industry. It can be obtained by completing a business school (graduate school of business). At business school, you study management knowledge covering areas such as business strategy, marketing, human resource management, accounting, finance, operations management, business law, and economics. However, note that curricula and difficulty levels vary depending on the business school.

Graduating from a business school counts as your highest level of education, so you can list the alma mater and the advanced degree on your resume. Furthermore, obtaining an MBA from an overseas business school has the added benefit of not only acquiring management-related skills, but also learning practical business English.

In Japan, multiple universities and educational institutions offer MBA programs for working professionals, but only a few business schools have been accredited by international accreditation bodies.

Furthermore, an MBA is a qualification highly valued by consulting firms across a broad range of fields including strategy, overall management, business restructuring, and finance, giving it a strong advantage for employment and career transitions. However, it should be understood that obtaining an MBA does not necessarily guarantee success at a desired consulting firm. Practical experience and specialized knowledge in the relevant industry or field tend to be valued more highly.

TOEIC and TOEFL

To transfer or join a consulting firm, having a certain level of score on English-based tests such as TOEIC or TOEFL is indispensable. In general, foreign consulting firms tend to place more emphasis on business English conversation skills rather than test scores, so practical business skills are required beyond just reading and writing.

Furthermore, high scores on TOEIC or TOEFL are a significant selling point in job searches and career transitions. Depending on the consulting firm, there are numerous consulting projects that require English proficiency.

Note that companies seeking candidates with practical-level English are not limited to foreign firms. Some consulting firms have English as a mandatory requirement for hiring, so if you are aiming to become a management consultant, it is advisable to study English.

IT Strategist and Other IT-Related Qualifications

As a management consultant, IT skills are also essential. Even as a management consultant, depending on the client’s industry, advanced IT knowledge, understanding of client business operations, and a wide range of knowledge and skills may be required.

As IT has spread throughout society, leveraging IT is necessary to advance work smoothly regardless of industry or business type. However, in reality, there are many cases where IT adoption has not progressed due to being overwhelmed by day-to-day operations, resulting in falling behind competitors.

Note that the scope of work utilizing IT-related qualifications is wide, and the skills required by clients are also diverse. For example, high communication skills are necessary to exchange opinions with people at various levels — from management to frontline staff. You must switch between technical terms based on the other party’s level of familiarity, and listen carefully to their opinions.

Additionally, it is important to note that in IT-related work, practical experience is also highly valued alongside qualifications. Not only acquiring certifications, but also accumulating practical experience in a field close to your desired area, will be beneficial when seeking employment or making a career change. Furthermore, in addition to IT-related qualifications, obtaining a qualification with management knowledge such as the SME Diagnostic Consultant will allow you to make greater use of your IT knowledge.

Career Destinations Where Management Consultant Qualifications Are Valued

After obtaining a qualification, what kinds of settings can you use it in and work as a management consultant? Taking the time and effort to earn a qualification means nothing if it cannot be applied.

Here we introduce the types of career destinations where management consultant qualifications can be applied, and what kinds of work are performed there.

Consulting Firms

The path to becoming a management consultant generally begins with joining a consulting company. Learning from the foundations of management consulting allows you to acquire practical experience and skills.

Note that there are various types of consulting firms.

General consulting firms cover a core range of services primarily in what is called the upstream area, spanning from formulating corporate and business strategies to system development. Rather than addressing issues in isolation, they provide a variety of services for the company as a whole.

Strategy consulting firms serve large corporations and foreign-affiliated companies as their primary clients, providing top-level consulting on management strategy including M&A. Additionally, think tank-type firms are consulting firms that also have a role and aspect as a “research institute.” They specialize in companies whose performance has significantly deteriorated or that face the risk of bankruptcy.

Others include IT systems consulting firms, which have strengths in system development and IT-leveraged businesses, and marketing-focused consulting firms, which specialize in marketing strategies utilizing advertising.

Consulting firms can be divided into foreign-affiliated and Japanese. However, since foreign-affiliated consulting companies require specialized knowledge, practical experience, and business English skills, the difficulty of transitioning into them is high. On the other hand, Japanese consulting firms are said to be relatively easier to join. Therefore, those new to consulting may want to start by targeting Japanese consulting firms.

Audit Firms and Tax Accounting Firms

Audit firms and tax accounting offices also utilize consulting companies, and many management consultants are active in these settings. At tax accounting offices that work closely with small and medium-sized enterprises on tax matters, management consulting is often carried out as part of their services, including tax-related advice.

It is also common for audit firms to have consulting companies within the same group, and they also utilize management consultants in areas such as IT auditing.

Main Job Responsibilities of a Management Consultant

Even among management consultants, areas of specialization are wide-ranging. In recent years, the number of management consultants active in highly specialized fields such as AI and digital transformation (DX) has been growing.

Here we introduce 3 tasks that are common to management consultants regardless of specialization.

Let’s review the specific job responsibilities.

Corporate Analysis

Management consultants use multiple frameworks to analyze a company’s challenges and current status.

Specifically, they use SWOT analysis to examine the business environment and the company’s strengths and weaknesses, and MOST analysis to evaluate what the company should be doing and its strategy. They also conduct analysis from multiple perspectives using BPM analysis of business processes, PESTLE analysis, and others.

Formulating Management and Marketing Strategies

Many management consultants are involved in corporate strategy formulation.

Based on the company’s current state and the issues identified through corporate analysis, they clarify the company’s direction and goals and advise on corporate strategy formulation to achieve those goals.

Note that while management consultants provide advice on corporate strategy formulation, they cannot make decisions regarding the implementation of management strategies. Decisions on management strategy are normally made by the company’s top management, not the management consultant.

Furthermore, many management consultants are involved in developing a company’s marketing plan. Formulation is a series of processes that define what services or products to offer, to whom, and how to promote sales. In particular, the question of “how to sell” is a challenge faced by many companies, and they require objective advice from external management consultants.

For this reason, it is no exaggeration to say that formulating management and marketing strategies is the primary business of management consultants.

Developing Financial Plans and Business Revitalization Plans

One of the important tasks for management consultants who handle small and medium-sized enterprises in particular is formulating a company’s financial plan. Many SMEs entrust the creation of financial statements such as profit and loss statements and balance sheets to tax accountants or CPAs.

However, for specific financing schemes, they cannot receive advice from tax accountants or CPAs. This is where management consultants provide specific advice on financing schemes.

Additionally, in recent years, some management consultants handle work related to developing business revitalization plans for companies. A business revitalization plan is a concrete plan outlining methods for revitalizing a company that is on the verge of bankruptcy or has actually gone bankrupt. Management consultants handle the reorganization of debts and obligations, the formulation of staffing plans, and the development of financing plans including coordination with each creditor.

Furthermore, including the formulation of business revitalization schemes such as M&A, the scope of responsibilities is extensive.

How to Become a Management Consultant

No special qualifications or licenses are required to become a management consultant. You can become one right away simply by calling yourself a “management consultant.”

However, the real question is whether a “self-proclaimed management consultant” can receive requests from companies. Even if someone calls themselves a management consultant, without capability and trust, requests are unlikely to come.

To become a management consultant, you must acquire knowledge and skills. Here we introduce what kind of preparation is necessary to become a management consultant.

Obtain Qualifications

Qualifications are not required to become a management consultant. However, management consultants without sufficient credentials or a track record will find it difficult to obtain work from clients.

Clients typically check the credentials and track record of the person they are considering hiring before formally making a request. Therefore, holding qualifications such as the SME Diagnostic Consultant, CPA, or MBA (Master of Business Administration) is advantageous. Those considering a career change to management consulting should explore obtaining the qualifications introduced here.

Acquire Specialized Knowledge and Skills

To transfer to or find employment as a management consultant, specialized skills and knowledge are necessary. In particular, those who possess knowledge and know-how in areas that companies are seeking will be able to pursue a career change to management consulting more advantageously.

For example, even within a specific industry like marketing, consultants with strong expertise in social media marketing are in high demand. In the financial field as well, consultants specializing in business restructuring finance or venture finance are in high demand, giving them an advantage in career transitions.

Cultivate Logical Thinking Skills

Logical thinking is a skill required of management consultants regardless of their area of specialization. Logical thinking refers to a way of thinking in which things can be understood and explained logically.

The fundamental job of a management consultant is to propose concrete solutions to problems based on facts. Therefore, making judgments based on emotion rather than facts, or presenting solutions without basis, must be avoided.

A simple way to cultivate logical thinking is to state your conclusion first when speaking. Many people may have had the experience of “not knowing what they were trying to say by the middle of the conversation.” In such cases, starting with the conclusion helps you organize your own thoughts. Additionally, knowing the conclusion from the outset reduces the cognitive burden on the listener.

The Rewarding Aspects of Working as a Management Consultant

Many management consultants, whether affiliated with a consulting firm or running their own independent practice, enjoy their work and find it rewarding.

Here we introduce the important rewarding aspects of working as a management consultant.

We’ll explain each in detail, so please take a look.

Growing Together with Clients

One of the rewarding aspects of being a management consultant is being able to grow alongside client companies.

The work of a management consultant involves solving problems faced by client companies. By solving problems, you build the skills needed to address them, which ultimately contributes to your own growth as well.

Furthermore, the more experience you accumulate, the more your skills will be refined, which will also lead to your growth as a consultant. In particular, the experience of resolving difficult problems is especially rewarding in terms of personal growth.

Being Active in Publishing and Seminars

Another source of fulfillment is that you can be active not only in management consulting, but also in publishing and seminars.

Some management consultants compile their knowledge and skills into a book and publish it. More and more people are also sharing their knowledge and skills with the world through seminars and lectures, or posting management-related content on social media. Many also hold paid seminars through social media platforms. In addition, specialized management consulting that explains management in specific industries is also increasing.

By combining management consulting work with publishing and seminars, you can leverage them as a marketing scheme for acquiring new clients. Publishing and hosting seminars also allows you to earn income separate from consulting.

Expanding Your Professional Network

Expanding your professional network is also a rewarding aspect of the management consultant’s work.

The work of a management consultant involves interacting with many people — including executives such as top management, and employees involved in finance, HR, marketing, and other functions.

Business partners such as the client company’s trading partners, suppliers, customers, and shareholders also come into the picture. Depending on the project, it is not uncommon to work in coordination with lawyers, tax accountants, CPAs, and financial institutions as well.

Working with a variety of people builds relationships that develop into a professional network. The more you continue as a management consultant, the more your network grows — and that is one of its genuine joys.

Frequently Asked Questions About Management Consultants

Some people may have questions or concerns about qualifications and future prospects when considering becoming a management consultant. Finally, here are some frequently asked questions about management consultants.

• How is a management consultant different from a CPA?
• What kind of person is suited to be a management consultant?
• What are the future prospects for management consultants?

Those aiming to become a management consultant should check these in advance.

Summary

There is no requirement to obtain qualifications in order to become a management consultant. Anyone can become a “management consultant” right away.

However, knowledge related to management is essential for consulting. Obtaining a qualification connected to the work of a management consultant builds specialized knowledge and allows you to be objectively recognized as “someone knowledgeable in a specific field.”

Those aiming to become a management consultant should explore qualifications that align with their career path.