I am an early-retired executive, thinking of starting a second career as a consultant. I know the consulting market went through a major downsizing a few years and am worried about whether this profession is a stable one to get into.

The US management consulting market was $156 billion in 2006, according to Plunkett Research, about a 12% increase over 2005. The pressure on margins (and absolute decrease in realized billing rates) experienced in the early part of this decade have mitigated. According to Kennedy Information, utilization rate and rates are once again increasing. The retirement of baby boomers from the ranks of managers will create a growing need for skilled management advisors. Demand is expected to be good.

But so is supply. The supply of consultants is again increasing. Business schools report that consulting is once again an attractive career. Consulting firms are hiring experienced individuals with specialized expertise, especially in technical fields. This includes managers and executives with practical business experience who want to be business advisors.

One caution is that consulting is a profession and not something one should consider they are qualified for just because they have experience and a good base of contacts. There are specific skills and behaviors required to effectively consult to management. Much of the criticism consultants receive (books like Dangerous Company; House of Lies; The Witch Doctors; Consulting Demons; Rip Off - the list is extensive) comes from experience with people who have neither developed nor continually refined their professional skills and behaviors. Clients report their disappointment with people calling themselves consultants but who never were properly trained or certified to international consulting standards.

Clients have become more sophisticated about using consultants and expect more skilled advisors. Large consulting firms will provide their own training programs. Independent or small firm consultants can develop their professional expertise based on the Management Consulting Competency Framework from any of the 46 national Institute of Management Consultants that certify consultants to international standards.

Yes, the profession is growing and, for those of us who devote a lot of time to our professional development, a great career.

Source: institute of Management Consultants – USA