Line of business (LoB) refers to a distinct area of consulting activity defined by the type of services delivered, client problems addressed, and market context in which that work competes. In consulting, lines of business help distinguish between different service specialties — for example, strategy, technology, or operational consulting — and reflect meaningful differences in skills, revenue models, and pay expectations.
Because compensation and progression can vary significantly between LoBs, clear definitions are essential for accurate benchmarking. Without them, comparisons across unrelated service areas can obscure real differences in market pay and talent dynamics. A more detailed discussion of this topic is covered in Getting Compensation Benchmarking Right: Why the Line of Business Matters.
Line of Business in Compensation Benchmarking
Benchmarking by line of business ensures that pay comparisons are made within the correct market context, for example:
- Defined peer groups
Consultants are compared to counterparts doing similar work rather than across unrelated service areas. - Role and skill alignment
LoBs help match internal roles to the appropriate external benchmark based on job function and market demand. - Compensation variation by market dynamics
Pay levels and incentives often differ by consultative focus and competitive pressures.
See a quick list of the LoBs Vencon Research tracks in its major benchmarking reports, covering more than 40 distinct business lines such as Strategy Consulting, IT Consulting, Big Data & Analytics, Digital Transformation, Corporate Finance & Transaction Services, and more.
Clear Line of Business Definitions
Clear LoB definitions make benchmarking and HR decision-making more effective by:
- Improving benchmarking accuracy — Prevents distortions from comparing dissimilar roles.
- Explaining legitimate pay differences — Helps HR teams and employees understand why compensation may vary across teams.
- Clarifying career paths — Supports clearer progression and mobility expectations within the firm.
Common Challenges with Line of Business
Common issues arise when LoBs are poorly defined or inconsistently applied:
- Overly broad categories
Combining dissimilar consulting services into one group can mask real differences in market pay. - Title-based errors
Similar job titles across LoBs may represent different responsibilities and expectations. - Inaccurate benchmarking
Without clear LoBs, firms risk basing decisions on inappropriate peer comparisons.
Benchmarking by clearly defined lines of business anchors compensation decisions in observable consulting market practice.