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Lecture–ManagementConsulting:AnIntroduction
3/9/20231?AndersenConsulting2000AGENDAIntroduction/ExpectationsExampleconsultantcompanyConsulting:Nature,Trends,CareersSelectedMethods(frameworks)Research(somebasics)Graphics(fromdatatochart)3/9/20232AGENDAIntroduction/ExpectationsExampleconsultantcompanyConsulting:Nature,Trends,CareersSelectedMethods(frameworks)Research(somebasics)Graphics(fromdatatochart)3/9/20233OneGlobalFirm–Acttoenhancethecollectivevaluesoftheglobalpartnership,whilesustaininglocalculture.Stewardship–Thinkfutureoriented;actandinvesttobuildastrongerfirmfortomorrow.Integrity–Actwithopennessandhonesty.Always.RespectfortheIndividual–Treateachpersonaswewouldliketobetreated.QualityClientService–Understandandmeetclientexpectations100percentofthetime.BestPeople–Arehighlycompetentandmakeacommitmenttoexcellence,teamwork,andthesuccessofourclients.ACCENTURE:COREVALUES3/9/202351989
AndersenConsultingbecomesaseparatebusinessunitfromArthurAndersen$1.6billion21,400employees1991Horizon2000Initiativetodevelopmissionandstrategicplan$2.3billion25,000personnel1993AndersenConsultingissuesitsfirstannualreport$2.9billion27,000employees1997AndersenConsultingcreatesaglobalnetworkofcommunications-focusedsolutioncentersinanefforttosetthestandardforspeedandqualityofperformance$6.6.Billion53,000employees1998$8.3billion65,000employees2000JoeForehandbecomesManagingPartnerandintroducesthe100DayPlanAndersenConsultingwinsarbitrationagainstArthurAndersen01.01.01Accenture,formerlyknownasAndersenConsultingACCENTURE:IMPORTANTMILESTONES3/9/20236ACCENTUREGLOBALLYEmployees: over65,000Countries: 48Revenue‘99: 8,9BillionUSDClients: ThevastmajorityofFortune30mostprofitableglobalpubliccompaniesNearly75%ofFortune200globalcompanies100ofthemostsignificant“IndustryStandard”Internetcompanies3/9/20237ACCENTURE:GLOBALPERSONNELGROWTH199753,426199644,801199538,027199432,711199865,1343/9/20239AmericasEMEAIAsia/
PacificHamburgFrankfurtMünchenDüsseldorfBerlinWienZürichASG–
Austria,Switzerland,
GermanyACCENTUREINASG2,750Employees7OfficesRevenues:1,24Mrd.DM3/9/202310GlobalCompetitiveOverviewStrategyDigitalEquipmentMcKinseyAndersenConsultingOrganizationProcessesInformation
TechnologyBusinessProcessManagement(Outsourcing)CapGeminiSogetiUNISYSIBMComputerSciencesEDSBostonConsultingBoozAllen3/9/202311ACCENTURE:SAMPLECLIENTLIST3/9/202313AGENDAIntroduction/ExpectationsExampleconsultantcompanyConsulting:Nature,Trends,CareersSelectedMethods(frameworks)Research(somebasics)Graphics(fromdatatochart)3/9/202314NATURE,TRENDS,CAREERSNatureandpurposeofconsultingRecenttrendsandcurrentchallengesStaffandcareerpathsinconsulting3/9/202315DEFINITIONOFCONSULTINGDefinitionofConsulting?Togiveexpertadviceorprovideexpertcounsel.“(IKS)?Consultingprovidesvaluebydiagnosing,strategizing,designing,constructing,integrating,operating,orimplementingsolutions.Consultingutilizesrelevantknowledge,basedonintegrityandobjectivity,inbothexpertandadvisoryroles.“(ConsultingServicesTeam)?Consultingiswhateveraconsultantdoes."(CambridgeComputerServices)3/9/202317CONSULTINGHISTORY(1/2)Brieflookintohistory1532 Macchiavelli‘s?IlPrincipe“1886 Foundationofthe?analyticaltestlab“byArthurD.Little1895 ?Apieceratesystem“byF.Taylor1909 FoundationofArthurD.Little,Inc.1911 ?Theprinciplesofscientificmanagement“byF.Taylor1911 ?MotionStudy“byF.Gilbreth1912 ?ConsultingFirms“byF.Gilbreth1914 E.BoozsetsupBusinessResearchServices1925 J.O.McKinseystartshisConsultingfirm1934 Urwick,Orr&Partners:Managementistlehr-undlernbar1939 PeterDrucker?Theendofeconomicman“1947 FoundationoftheTravistockInstitute3/9/202318CONSULTINGHISTORY(2/2)Brieflookintohistory1949 RobertWiener?Cybernetics“1950 MarvinBowerbecomesCEOofMcKinseyandstartswith theexpansion1951 FirstDeming-AvardforQualityinJapan1954 FoundationoftheBDU1954 PeterDrucker:?Thepractiseofmanagement“1957 Argyris:?PersonalityandOrganization“1959 Herzberg,Mausner,Snyderman:?Themotivationtowork“1960 McGregor:?Thehumansideofenterprise“,Maslow:?Motivation andPersonality“1963 FoundationofBostonConsultingGroup1965 FoundationofthefirsttwoBusinessUniversitiesinGreatBritain3/9/202319TYPESOFCONSULTINGDifferenttypesofmanagementconsultingStrategyAdviceandcounselaboutcorporate-levelorbusiness-unitstrategiesOperationsManagementFiguringouthowtoimprovetheefficiencyorproductivityofhowabusinessworksHumanResourcesCompensationandbenefitsadvice,attracting,motivating,andretaininghighqualityemployeesInformationTechnologyDesign,implement,testandroll-outnewITorinstallandoperatemassivepackagedsoftware"solutions“.3/9/202321WorldwideProfessionalServicesMarket$billionsSource:Dataquest$250$475$45$85$25$5$0$100$200$300$400$500$600199019992003STRATEGYVS.IT-CONSULTING18%annualgrowthPureStrategyIT-relatedService3/9/202322GERMANCONSULTINGMARKETOVERVIEWGermanConsultingmarketoverview1998: 62.500Management-,Personnel-andIT-Consultants(BDUe.V.) 13.200ConsultingCompanies Totalrevenues:18,8bn.DM(BDUe.V.)
1999: 64.500Management-,Personnel-andIT-Consultants(BDUe.V.) 14.300ConsultingCompanies Totalrevenues:21,3bn.DM(BDUe.V.)3/9/202323TOP30CONSULTINGCOMPANIESINGERMANYSource:LünendonkConsultancy+ResearchGbR,Hamburg3/9/202325WHEREDOYOUWANTTOGOTODAY?
AscenefromLewisCarroll's"Alice'sAdventuresInWonderland",whenAliceaskstheCheshirecatfordirections,speaksvolumesaboutplanningwhereanorganizationwantstobeinthefuture."Wouldyoutellme,please,whichwayIoughttogofromhere?"asksAlice.
"Thatdependsagooddealonwhereyouwanttogetto,"saidtheCat.
"Idon'tmuchcarewhere."saidAlice.
"Then,itdoesn'tmatterwhichwayyougo."saidtheCat.3/9/202326BENEFITSOFUSINGCONSULTANTS
Subjectmatterexpert:Aconsultantwillsavetimeandmoneybyarrivingtoasolutiontotheclient‘sneedsatafasterpacebecauseofpastextensiveknowledgeandexperienceindealingwithotherbusinessowners.Objectivepointofview:Aconsultantwillbringarefreshingoutsidepointofviewtotheclient‘scompany,whichwillpin-pointexistingproblemsorreachfastersolutions.Educate,inform:Agoodconsultantwilleducateandinformtheclient
asthetaskiscompleted.Shareinformationaboutindustryandcompetition:Thisisessentialtoreachingcompanygoals.Assistwithstrategicplanningwhichwillhelpreachcompanygoalsfasterandeasier.Offerinnovativeideas3/9/202329WORKANDLIFESTYLECHARACTERISTICSWorkatclientsiteWorkinteamenvironmentWorkwithavarietyofclientsacrossindustriesAssessclientbusinessandtechnicalchallengesDevelopsolutionstomoveclientforwardExtensivetravelingEnrichinglearningexperienceCyclicalovertimeTravelVarietyofresponsibilitiesWorkwithtechnology3/9/202330TOP10WAYSTOKNOWYOUAREDATINGANCONSULTANT1.Referstolovemakingasa"win-win."2.Valentine'sDaycardhasbulletpoints.3.Can'tbetrustedwiththecar-tooaccustomedtobeatinguprentals.4.Celebratesanniversarybyconductingaperformancereview.5.Endsanyargumentbysaying,"let'stalkaboutthisoff-line."6.Triestocallroom-servicefromthebedroom.7.Congratulatesyourparentsforsuccessfulvaluecreation.8.Referredtotheyieldofthetomatoplantsinyourhomegardenas"deliverables"9.Talkstothewaiteraboutprocessflowwhendinnerarriveslate.10.Referredtothefirstmonthofyourrelationshipasa"diagnosticperiod."3/9/202331NATURE,TRENDS,CAREERSNatureandpurposeofconsultingRecenttrendsandcurrentchallengesStaffandcareerpathsinconsulting3/9/202332RECENTTRENDSANDCURRENTCHALLENGES
ChangingcustomerexpectationsIncreasingmarketpoweroftheTOPconsultingcompaniesEffectiveusageofinformationtechnologySplitTax/Auditing-ConsultingStrategicAlliancesandStart-upPartnershipsNewsuppliersentertheconsultingmarketExpansionofthewellknownconsultingcompaniesITconsultingbytraditionalconsultingcompaniesGet&retaintherightpeopleHowtofacethecurrentchallenges3/9/202333"CTOsandothere-businessstrategistsdonotwanttohearmetellthemIcanhelpWeb-enabletheirbusiness.Thatisnotenough.TheywanttoknowhowIcanhelpthemtransformtheirbusiness."
--ChuckBurns,globalseniorvicepresident,services,KPMG"CTOshavemorechoicesthaneverbeforewhenitcomestoselectingaconsultant.Wegointobidsnowwherewemaycompeteagainstoneofthegiant,BigFivefirms...andeven,insomecases,anadvertisingormarketingagency."
--ScottLochridge,principal,strategysolutionsgroup,DiaLogos"Thedaysofblackmagicareover,Consultantscannolongergetawaywithjustwritingawhitepaperfortheclientandsaying,'OK,nowyoudowhatIsay.'”
--JoseCampos,presidentofRapidinnovationCHANGINGCUSTOMEREXPECTATIONS–SOMESTATEMENTS3/9/202334CHANGINGCUSTOMEREXPECTATIONS
CustomerexpectrealaddedvalueStandardImplementationsaredecreasingwhileindividualend-to-endsolutionbecomemuchmoreimportantUnsuccessfulERPimplementationsinthe90smadethecustomermoreawareofrisksandchallenges-->CustomeraremuchmoresensitivetowhattheygetfortheirmoneyResultsinnewpaymentschemeslike:Fixedprice(especiallydonebysmaller/start-upcompanies)RiskandrewardsharingEquitypaymentPaymentintermsof%-ageofactualvalueaddedOntimedeliveryclausesincontract3/9/202335INCREASINGMARKETPOWEROFTHETOP20CONSULTINGCOMPANIESFacts40TOPConsultingCompaniesincreasedtheirmarketshareinGermanyfrom42to45%AveragegrowthrateoftheTOPPlayer:~19,5%/p.a.SmallerConsultingcompanies:~4,0%/p.a.Acquisitionsofsmallerandmid-sizedconsultingfirmsbythelargercompaniesinordertodiversifytheirmarketofferPlannedpartlyIPOofKPMG,ArthurD.Little,AndersenConsultingalsoinvestigatingIncreasingmarketpowerandinfluencethroughventures,e.g.
-ACVenture
-McKinsey’s“NewVenture”
-RolandBerger&bmp
3/9/202336SPLITTAX/AUDITING–REASONSANDCONSEQUENCESReasonsU.S.SecurityandExchangeCommission:
CriticalifConsultingCompaniesadviceclientsthatareauditedbythesamecompanyHighermarginsandgrowthratesinconsultingInabilityforconsultingparttoraisemoneybygoingpublicaslongastheyarepartofauditingcompaniesConsequencesConsultingcompaniescanandwillgopublic(e.g.KPMG)NomorelegalrestrictionsforconsultingcompaniestoadviceothercompaniesDifferentiationprocesswillaccelerate(increasingmarketingactivities)Repositioningneeds3/9/202337SPLITTAX/AUDITING-CONSULTINGExamplesAndersenConsultingvs.ArthurAndersen:
ArbitrationDecisioninordertoallowAndersenConsultingtosplitfromArthurAndersenKPMG:IPOofKPMGConsultingBusinessCiscotook20%stakeAnother20%fortheaccountingpartHewlettPackardinterestedtobuyPriceWaterhouseCoopers’ManagementandITConsultingpartCapGeminitobuyconsultingpieceofErnst&YoungA.T.KearneyandEDS3/9/202338STRATEGICALLIANCESOFACCENTURE3/9/202339ALLIANCESANDPARTNERSHIPS:SOMEEXAMPLES
CapGemini: -SiebelSystems
-IBM
-SunMicrosystems
-MicrosoftKPMG: -Compaq
-Cisco
-Microsoft
-JDEdwardsCSC: -Peoplesoft
-Broadvision
-IBM
-Lucent
-Nokia
EDS: -SunMicrosystems
-SAP
-Oracle
-Cisco3/9/202340NEWCOMPETITORSENTERTHECONSULTANTMARKETNewSuppliersentertheconsultingmarketHardwaremanufacturers
-HPalreadyincreasedtheirnumberofin-houseconsultantsto6.000
+potentialPriceWaterhouseCooperspartInternetserviceproviders,e.g.PixelparkbuyingtheSwedishConsultingfirm“CellNetwork/Mandator”Building?Inhouse-Consultingcapabilities“ -Siemens(SiemensBusinessServicesprovidingERP,CRM implementations)
-SAPSystem
-DeutscheTelekombuyingmajoritystakeinDebisSystemhausFinancialInstitutionsandTelecommunicationcompanies3/9/202341EXPANSIONOFWELLKNOWNCONSULTINGCOMPANIES
ExpansionoftheTOPconsultingcompaniesthroughM&A,alliances,venturesandstrategicpartnerships.ChancetoexpandbusinessandopeningnewmarketsAfterM&A,differentiationbecomescritical,thereforehighadvertisingbudgetsIPOStrategies:RaisemoneyforeCommercestrategyVentureCapitalfundsToattractpeople(competitivesalariesandpaymentstructures)Examples:CapGeminiacquiringErnst&YoungCapGeminibuyingSD&MCSCPloenzketobuyKPMGFrance3/9/202342ITCONSULTINGATTHEESTABLISHEDCONSULTINGCOMPANIES
AseCommerceisacknowledgetobeoneofthekeybusinessdrivers,alsothetraditionalconsultingcompaniestrytogetintoitStrategycompanieslikeBoozAllenHamiltonetc.tolauncheCommercecentersandventurecapitalfirmsBybuyingsmallercompaniesandpartneringtheyareabletoprovideafullimplementationservice,e.g.Bainalliancewithi2andOracleMcKinseyhasbeenaccusedhavingoversleptthee-Commerceage;nowtryingtoworkonthatsubjectthroughincreasingalliances&venturesintheeBusinessAftersplitfromAndersenConsulting,ArthurAndersenwillgetmoreintoITconsulting3/9/202343IPOinordertoattractpersonnelUntilbackdropofDot.Comsandthestockmarket,tendencyofleadingpersonneltoleavetraditionalcompaniestojoinStart-ups:CambridgeTechnologylostoverthelastyearmanytopmanagers(i.e.FounderandCEO,CFO,Generalcounsel,HeadofitsE-Businessunit,ManagingdirectoroftheCambridgeTechnologyCapitalventurefund)mostlytosmallhigh-techcompanies.DeanHawkins,formerCFOofAdidastobecomeCFO@JoeGalli,VicePresidentBlack&DeckertojoinAasmemberoftheboardHeinerRutt,chairman@BostonConsultingGrouptobecomepresidentatProxicomIBMGermanyhasabout3.000openITpositionsfor2001,Hewlett-Packardtolookfor500ITspecialists,PricewaterhouseCoopers300andSiemens1.500,AndersenConsultingwith1.100openpositionsinASG.GETANDRETAINTHERIGHTPEOPLE3/9/202344"WINNINGTHEWARFORTALENT" Keyfactorsofsuccess Image Interestingtasks Personaldevelopment Balancedlifestyle International
atmosphere1.DaimlerChrysler2.Lufthansa3.McKinsey4.BMW5.KPMG6.BostonConsulting7.DeutscheBank8.Siemens9.SAP10.Accenture AttractiveemployeesFocus30.August19993/9/202345HOWTOFACETHECURRENTCHALLENGES
NewstrategiesBrandingCampaignsPersonneldevelopmentconceptsEfficientKnowledgeManagementAccuratePlanningChangeasChanceSynchronizethekeysuccessfactors:
-people
-process
-strategy
-technology3/9/202346NATURE,TRENDS,CAREERSNatureandpurposeofconsultingRecenttrendsandcurrentchallengesStaffandcareerpathsinconsulting3/9/202347STAFFANDCAREERPATHSPartnerAssociatePartnerManagerConsultantAnalystDirectorPrincipleAssociatePrincipleProjectManagerConsultantAccentureMcKinsey3/9/202348LeadworkteamsFacilitateTeam-MeetingsSystemsdesignClientpresentationsLeadsubprojectsConsultantAnalystProposalsForecastingDevelopandexecuteclienttrainingClientinterviewsProgrammingSystemsDocumentationParticipatesinproblemsolvingRecommendsandimplementssolutionsDefinesuserrequirementsResearchesnewandexistingtechnologyProvidesproductionsupportTestssoftwareReviewsworkofpeersROLESANDRESPONSIBILITIES:EXAMPLES3/9/202349PartnerManagerInterfacewithclientseniormanagementLeadclientmeetingsDevelopnewbusinessDevelopmanagementteamShapeandimpacttheFirmAttainOwnershipintheFirmROLESANDRESPONSIBILITIES(CTD.)LeadclientmeetingsManageprojectsLeadanddevelopprojectteam3/9/202350CONSULTING:ALWAYSSTAYREALISTICALLYAconsultant,managerandapartnerfromaConsultingcompanyarewalking
throughaparkontheirwaytolunchwhentheyfindanantiqueoillamp.TheyrubitandaGeniecomesoutinapuffofsmoke.TheGeniesays,"Iusuallyonlygrantthreewishes,soI'llgiveeachofyoujustone."Mefirst!Mefirst!"saystheconsultant."IwanttobeintheBahamas,drivingaspeedboat,withoutacareintheworld."Poof!she'sgone.Inastonishment,"Menext!Menext!'saysthemanager,"IwanttobeinHawaii,relaxingonthebeachwithmypersonalmasseuse,anendlesssupply
ofpinacoladasandtheloveofmylife."Poof!He'sgone."You'renext,"theGeniesaystothepartner.Thepartnersays,"Iwantthosetwobackintheofficeafterlunch."3/9/202351PERSONSTOSUPPORTYOURPERSONALCAREERPersonalMentorPeerGroupAnnualReviews(upward/downward/sideward)PartnerGroupPracticeLeaders3/9/202352SOMEATTRIBUTESFORGOODCONSULTANTS
AmbitiontopermanentlylearnDeterminationtosucceedStrongcommunicationskillsMotivationFlexibilityAgilityApproachableProactiv
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