Thriving in Tech: Exploring Career Paths in Consulting Firms and Product Companies

With over 10 years in technology consulting and more than 25 years in product companies, I’ve seen firsthand how each environment brings its own set of challenges and rewards. This article takes a high-level look at the different roles across these fields, though it doesn’t cover every position, job description, or company culture. I invite you to read and share your own insights on these observations.

While advanced AI is reshaping industries at a fast pace, it is good to understand the differences between technology consulting firms and product companies. Drawing from my own experiences, I explore how roles in engineering, management, and sales adapt and thrive in each setting, providing insights for professionals navigating their careers in this dynamic field.

Technology consulting firms focus on providing expertise to clients, tailoring solutions to specific challenges. Revenue here is often based on billable hours and project work. By contrast, product companies develop and market their own offerings, earning revenue through sales, subscriptions, or licensing. Their focus is on long-term product development, positioning in the market, and customer satisfaction.

In consulting firms, engineers often work on diverse projects across various domains / industries, requiring adaptability and rapid learning. They may engage in short-term assignments, emphasizing problem-solving and client-specific solutions. This environment offers exposure to a wide range of industries and technologies, fostering rapid skill development and the ability to work on varied projects. However, frequent transitions between projects can lead to a lack of deep specialization, and managing multiple client expectations may be demanding. 

In product companies, engineers typically concentrate on developing and refining the company's own products or services (or combinations). This involves deep specialization, long-term planning, and continuous improvement of existing offerings. Such roles provide the opportunity for deep specialization in specific technologies or products, involvement in the entire product lifecycle, and the chance to see the long-term impact of one's work. Nonetheless, there is potential for slower skill diversification, and the need to continuously innovate within a specific domain to stay competitive. 

Managerial Roles in consulting firms oversee multiple client projects, coordinate cross-functional teams, and ensure client satisfaction. They must balance resource allocation, project timelines, and client expectations. This role facilitates the development of strong project management skills, leadership of diverse teams, and exposure to various business models and strategies. However, balancing multiple client projects simultaneously and ensuring consistent team performance across different engagements can be challenging. 

In product companies, managers focus on product development cycles, market strategies, and internal team performance. They are responsible for aligning product goals with the company's strategic vision and market demands. This position allows for shaping product strategy, leading long-term projects, and building cohesive teams focused on a unified vision. Challenges include navigating internal politics, maintaining team motivation over extended periods, and aligning product goals with market demands. 

In consulting firms, marketing efforts are centered around building the firm's brand, showcasing expertise, and generating leads through thought leadership, networking, and relationship-building. Sales teams focus on identifying client needs, crafting tailored service proposals, and maintaining ongoing client relationships to secure repeat business. The sales cycle is often relationship-driven, requiring personalized engagement and trust-building. Leveraging existing client relationships is crucial; satisfied clients can provide referrals, significantly enhancing the firm's credibility and expanding its client base. Additionally, when key contacts transition to new companies, they can become valuable advocates, facilitating introductions and opportunities in their new roles.

In product companies, marketing teams concentrate on market research, product positioning, and creating campaigns to drive product awareness and demand. They utilize various channels, including digital marketing, advertising, and public relations, to reach target audiences. Sales teams work to convert leads into customers, often employing strategies like product demonstrations, negotiations, and managing customer accounts. The sales process is typically more transactional, focusing on meeting sales targets and expanding market share. 

Support functions in consulting firms have distinct responsibilities: Finance manages billing, project profitability, financial planning and reporting based on fluctuating client engagements. HR focuses on recruiting and developing versatile talent capable of adapting to diverse client needs and project scopes. Internal IT and process teams support consultants with tools, technologies and way of working that enhance client service delivery. Legal handles client contracts, service agreements, and compliance with industry regulations. These roles offer engagement with diverse client portfolios, development of adaptable processes, and the ability to implement best practices across various industries. However, managing the complexities of billing and contracts for multiple clients and ensuring compliance with varied client-specific regulations can be challenging. 

In product companies, Finance oversees budgeting, revenue from product sales, and financial forecasting tied to product performance. HR recruits specialists aligned with the company's product focus and fosters long-term employee development. Internal IT and tools maintains and improves internal systems that support product development and operations. Legal manages IP protection, licensing agreements, and compliance with product-related regulations. These roles allow for deep involvement in the company's strategic direction, development of specialized knowledge related to the company's products or services, and the ability to influence long-term organizational policies. Challenges include maintaining compliance with industry-specific regulations, managing internal stakeholder expectations, and adapting to evolving market conditions. 

Executives in consulting firms focus on client acquisition, diversifying services, and ensuring the firm maintains a competitive edge. Their efforts are directed toward building relationships and expanding the firm's expertise, always with an eye on sustainable growth and achieving a solid EBITA. For top-performing firms, EBITA + growth rates over 30%, or even 40%, are not uncommon, reflecting successful strategies in navigating a crowded market. Challenges here include maintaining service quality across engagements, managing the firm's reputation, and ensuring consistent value delivery in scale.

In product companies, executives concentrate on product innovation, market expansion, sustaining and growing the company's brand and IP value. They strategize to enhance product offerings and capture market share. This position entails driving product innovation, shaping company culture, and leading market expansion efforts. Challenges involve responding to competitive pressures, managing investor and board expectations, and ensuring sustainable growth. 

In product companies, product management involves overseeing the entire lifecycle of a product, from conception through development to market launch and beyond. Product managers are responsible for defining the product vision, strategy, and roadmap, ensuring alignment with market needs and the company's strategic objectives. They collaborate closely with cross-functional teams, including engineering, marketing, and sales, to deliver products that meet customer expectations and drive business growth. This role demands a deep understanding of the target market, competitive landscape, and customer preferences to drive product success. 

Conversely, in technology consulting firms, offering management adopts a more holistic, customer-centric approach. Offering managers are accountable for validating market needs by engaging with clients to identify and understand their specific challenges and requirements. They define value propositions, crafting tailored solutions that address client needs, which may encompass a combination of technology, specialized competences, services, and support. Ensuring operational readiness is also crucial, as they coordinate with various internal teams to ensure the offering is deliverable, supportable, and scalable. This approach emphasizes flexibility and customization, allowing firms to adapt their offerings to diverse client contexts and evolving market demands. 

The scope of responsibility differs between the two roles. Product managers focus on a specific product's lifecycle, while offering managers oversee a broader suite of solutions tailored to client needs. Market orientation also varies; product management is often product-centric, aiming to create market-leading products, whereas offering management is domain or even client-centric, aiming to deliver comprehensive solutions that eventually address specific client challenges. Operational focus is another distinction; product managers concentrate on product development and market fit, while offering managers ensure that all aspects of the solution, including services and support, are aligned and operationally ready. Understanding these distinctions is crucial for professionals navigating careers in technology, as it influences role expectations, required skill sets, and career development paths.

Business development professionals serve as the bridge between a company's strategic objectives and market opportunities. Their responsibilities encompass identifying new business prospects, fostering partnerships, and driving revenue growth. 

Within consulting firms, business development roles are pivotal in acquiring new clients and expanding service offerings. Professionals in this area engage in networking, proposal development, and relationship management to secure projects that align with the firm's expertise. They collaborate closely with marketing to position the firm's brand and with service delivery teams to ensure client needs are met. This role demands a deep understanding of various industries and the ability to tailor solutions to diverse client challenges.

In product companies, business development involves identifying market opportunities for existing products and exploring avenues for new product introductions. This includes market research, competitive analysis, and strategic partnerships to enhance product reach. Professionals work alongside product managers to align development with market demand and with sales teams to facilitate market entry strategies. The role requires a balance of strategic thinking and practical execution to drive product adoption and revenue.

Consulting firms offer professionals exposure to a diverse array of industries and challenges, fostering rapid skill development and adaptability. The dynamic nature of consulting work often involves frequent travel and varying project durations, which can be both stimulating and demanding. While this environment cultivates a broad skill set and extensive professional network, it may also lead to work-life balance challenges due to the intensive nature of client engagements. Notably, some consulting firms are actively addressing these concerns by implementing measures to improve work-life balance and create a more supportive work environment. 

In contrast, product companies typically provide a more “stable” work environment, with employees focusing on the development and enhancement of specific products or services. This setting allows for deep specialization and long-term project involvement, enabling professionals to see the direct impact of their contributions over time. The structured nature of product development cycles often supports a more predictable work schedule, which can contribute to a healthier work-life balance. However, the emphasis on continuous innovation and market competitiveness requires ongoing learning and adaptation to new technologies and methodologies. 

Whether in a consulting firm or a product company, each role presents unique challenges and opportunities shaped by the organization's core focus, identity, culture and game plan. As AI and other technological advancements continue to transform the industry, professionals must remain adaptable and informed. By understanding these distinctions, you can better navigate your career path, aligning your skills and aspirations with the environment that best suits you. Each role brings its own unique set of challenges and opportunities, demanding adaptable strategies and a forward-looking mindset.

Ultimately, whether your path lies in consulting or in product development, staying open to growth and adaptation is key to thriving in today’s tech landscape.

I invite leaders to consider: What strategies have you found most effective in navigating your environment? How will you help your teams thrive in a rapidly changing landscape? I’d love to hear your perspectives and insights.