Iain Smith, an alum with an MSc (Econ) Operational Research from LSE (1979), recently shared his career journey and insights with our students. From starting his career at BT to transitioning into management consulting and entrepreneurship, Iain highlighted how his time at LSE equipped him with essential management tools. He also reflected on his best and worst experiences at LSE, offered advice on management consulting and starting a business, and shared valuable tips for those considering joining a startup or setting long-term career goals.
What is your career story?
I graduated in Physics and started work at BT. During this time, in 1978-79, I took an MSc (Econ) in Operational Research at LSE. Beyond question, LSE gave me management tools that helped my subsequent career in management consulting and setting up my own businesses, one of which was a management research business.
What were your best and worst experiences at the LSE?
My best experience was in finding out, after a 5-year break from complex maths, how quickly the maths came back. I went in with self-doubt, knowing I would be surrounded by people who had been continually active mathematically for years. It might encourage others to know that I need not have worried: things can, apparently, completely leave the human brain yet miraculously return given a few prompts!!
I also enjoyed the international mix: we had just four Brits out of about 30 students.
Finally, I loved the mix of interesting little “extra” topics LSE gave you: financial decision theory, industrial psychology, the nature of scientific progress (Karl Popper et al.) being some examples.
One experience I didn’t enjoy was sitting through a short module devoted to semiotics. I still chuckle at the title of one of the papers I read around this time, Towards a System of System Concepts. Philosophical reflection of the abstract variety has never been a strong point for me.
Would you recommend a career in management consulting?
I would recommend management consultancy, but not unconditionally. I think you should do non-consulting work for some years before entering the profession. I entered the profession as a 36-year-old with experience as a middle manager and had some colleagues who had solid business school qualifications like MBAs, but little experience. Few of them were at the company two years later.
Even if your work experience does not extend to hands-on management experience you can successfully enter the profession if you have experience in alternative sectors, it’s all transferable. That, and the kinds of frameworks you will learn at LSE could make you a credible colleague in a consulting firm.
It may be useful to know how clients select management consultants when looking to use them. They mostly say things like “They really understand the business we are in,” or “They seemed to really want to help us.” Only after those comes the consultant’s or consultancy’s specialised expertise (e.g. in systems, people management, restructuring, project management etc.). I’d recommend reading the business news regularly and understand what is going on, on a regular basis. Be interested and curious, take time to find out exactly what clients want, be prepared to challenge inconsistencies respectfully, and work hard to please clients.
What are the downsides to management consultancy?
There is, in most consulting firms, an internal market where your colleagues can choose to involve you or exclude you from projects because they are not sure on your capability to deliver. You need to quietly impress everyone you meet from day one - do not focus just on your boss, or the partners. Be authentic, be helpful, deliver – and ask for feedback. The extent to which you are offered work is very important, as your value will be based on having high level of utilisation, as well as on client and colleague satisfaction.
All the above leads to a big downside: when business is scarce, consultants can become vulnerable. And if you do not “own” client relationships you may feel powerless. These are the times when those not well suited to the consulting environment will suddenly realise it is time to look for a “proper job”!
What advice would you give about starting a business?
Supplement any information and thinking frameworks you get from your LSE course with the real world. That means talking to people who have started businesses, read autobiographies and biographies. The best book I have read in recent years is Peter Thiel’s book, From Zero to One. Earlier on, I benefitted from, Founders at Work, by Jessica Livingston which is about the formation of technology startups.
When I started my own business, I had years of experience in a consulting company that had a light management structure. So consultants felt responsible for all stages of the consulting process from some marketing activity right through to chasing unpaid invoices: terrific training for a budding entrepreneur.
Successful entrepreneurs tend to be quite headstrong and independent but you also need an element of teamwork so be honest when assessing yourself. It’s fine to be opinionated but you better be more often right than wrong. It also helps if you are willing and able to tackle lots of practical tasks, e.g. fixing IT glitches, writing marketing material, public speaking, selling, keeping in touch. Even in a team, a willingness to “just do it”, multiskilling, and humility is needed when the work demands it. I have known entrepreneurs who struggled in this area and seemed to be unable to handle the bandwidth needed in the job.
What advice would you give about joining a startup?
Do due diligence, it isn’t enough just to have a good business plan. Try to meet all the founders, figure out how they work as a team, and what it’s like working with them. Do they inspire confidence? Many, perhaps even most, startup teams do not. As an employee, you will be investing in them so think like an investor.
You may feel that a startup that has started to succeed and still has lots of potential to grow is a better company to join than a small early-stage startup.
Is it useful to set out a career plan that takes you all the way to the top?
There is nothing wrong with setting goals and measuring your progress in a rational and quantitative way. To avoid disappointment some care is needed when setting goals. I know an ambitious 25-year-old who planned to be promoted once every one and a half years for the foreseeable future. This was not a good idea, but there are people who think in this simplistic way. Even a very big company is likely to have no more than 15 job grades in it, and a graduate would start a few grades up from the bottom. So, a very talented 22-year-old who was promoted every 1.5 years could reach the top at the age of 40. Sounds terrific, unlikely, and dangerous. Moving that fast means they cannot have understood the reality at each level, nor absorb all the lessons that can be learned in the job. They will have been moving too fast to establish enough trusted and useful contacts upon whom their future success will depend. Clever people use every job to learn about a business area and the people in it. They take sideways moves as a way of learning more. They do not develop their career recklessly. They may even turn down, or delay, a promotion. But when they get to the top, they are ready.
If you would like to be profiled or if you would like to nominate a Department of Management alumni, please email dom.alumni@lse.ac.uk.