Lecture – Management Consulting: An Introduction Jürgen Zech 2001 April
AGENDA Introduction/Expectations Example consultant company Consulting: Nature, Trends, Careers Selected Methods (frameworks) Research (some basics) Graphics (from data to chart)
AGENDA Introduction/Expectations Example consultant company Consulting: Nature, Trends, Careers Selected Methods (frameworks) Research (some basics) Graphics (from data to chart)
ACCENTURE: MISSION AND VISION Our  Mission :  Helping our clients create their future. Our  Vision :  To become one of the world's leading companies, bringing innovations to improve the way the world works and lives.
ACCENTURE: CORE VALUES One Global Firm  – Act to enhance the collective values of the global partnership, while sustaining local culture. Stewardship  – Think future oriented; act and invest to build a stronger firm for tomorrow. Integrity  – Act with openness and honesty.  Always. Respect for the Individual  – Treat each person as we would like to be treated. Quality Client Service  – Understand and meet client expectations 100 percent of the time.  Best People  – Are highly competent and make a commitment to excellence, teamwork, and the success of our clients.
ACCENTURE: IMPORTANT MILESTONES 1989   Andersen Consulting becomes a separate business unit from Arthur Andersen $1.6 billion 21,400 employees 1991 Horizon 2000 Initiative to develop mission and strategic plan $2.3 billion 25,000 personnel 1993 Andersen Consulting issues its first annual report $2.9 billion 27,000 employees 1997 Andersen Consulting creates a global network of communications-focused solution centers in an effort to set the standard for speed and quality of performance $6.6. Billion 53,000 employees 1998 $8.3 billion 65,000 employees 2000 Joe Forehand becomes Managing Partner and introduces the 100 Day Plan Andersen Consulting wins arbitration agains t  Arthur Andersen 01.01.01 Accenture, formerly known as Andersen Consulting
ACCENTURE GLOBALLY Employees: over 65,000 Countries:  48 Revenue ‘99: 8,9 Billion USD  Clients:  The vast majority of Fortune 30 most profitable global public companies  Nearly 75% of Fortune 200 global companies 100 of the most significant “Industry Standard” Internet companies
ACCENTURE: DEVELOPMENT OF REVENUES (U.S. Billions) 1993 $2,876 1994 $3,452 1995 $4,224 1996 $5,302 1997 $6,647 1998 $8,3
ACCENTURE: GLOBAL PERSONNEL GROWTH 1997 53,426 1996 44,801 1995 38,027 1994 32,711 1998 65,134
Americas EMEAI Asia/ Pacific Hamburg Frankfurt München Düsseldorf Berlin Wien Zürich ASG –  Austria, Switzerland,  Germany ACCENTURE IN ASG 2,750 Employees 7 Offices Revenues: 1,24 Mrd. DM
Global Competitive Overview Strategy Digital Equipment McKinsey Andersen Consulting Organization Processes Information Technology Business Process Management (Outsourcing) Cap Gemini Sogeti UNISYS IBM Computer Sciences EDS Boston Consulting Booz Allen
ACCENTURE: MARKET UNITS Financial Services Banking Health Services Insurance Products Automotive, Industrial Equipment, Travel & Transportation Consumer & Pharmaceutical Products Retail Communications & High Tech Communications Electronics & High Tech Media & Entertainment Resources Chemicals   Energy & Natural Resources Utilities Government
ACCENTURE: SAMPLE CLIENT LIST
AGENDA Introduction/Expectations Example consultant company Consulting: Nature, Trends, Careers Selected Methods (frameworks) Research (some basics) Graphics (from data to chart)
NATURE, TRENDS, CAREERS Nature and purpose of consulting Recent trends and current challenges Staff and career paths in consulting
NATURE AND PURPOSE OF CONSULTING Nature and Purpose of Consulting Definition of „Consulting“ Brief look into history Different types of consulting Consulting market overview Consultant: Profession description Consulting strategies Short overview over the consulting process Reasons for clients to hire external consultants Guidelines for the client - consultant relationship
DEFINITION OF CONSULTING Definition of Consulting „ To give expert advice or provide expert counsel.“ (IKS) „ Consulting provides value by diagnosing, strategizing, designing, constructing, integrating, operating, or implementing solutions. Consulting utilizes relevant knowledge, based on integrity and objectivity, in both expert and advisory roles.“ (Consulting Services  Team) „ Consulting is whatever a consultant does." (Cambridge Computer Services)
CONSULTING HISTORY (1/2) Brief look into history 1532 Macchiavelli‘s „Il Principe“ 1886 Foundation of the „analytical testlab“ by Arthur D. Little 1895 „A piece rate system“ by F. Taylor 1909 Foundation of Arthur D. Little, Inc. 1911 „The principles of scientific management“ by F. Taylor 1911 „Motion Study“ by F. Gilbreth 1912 „Consulting Firms“ by F. Gilbreth 1914 E. Booz sets up Business Research Services 1925 J.O. McKinsey starts his Consulting firm 1934 Urwick, Orr & Partners: Management ist lehr- und lernbar 1939 Peter Drucker „The end of economic man“ 1947 Foundation of the Travistock Institute
CONSULTING HISTORY (2/2) Brief look into history 1949 Robert Wiener „Cybernetics“ 1950 Marvin Bower becomes CEO of Mc Kinsey and starts with  the expansion 1951 First Deming-Avard for Quality in Japan 1954 Foundation of the BDU 1954 Peter Drucker: „The practi s e of management“ 1957 Argyris: „Personality and Organization“ 1959 Herzberg, Mausner, Snyderman: „The motivation to work“ 1960 Mc Gregor: „The human side of enterprise“, Maslow: „Motivation  and Personality“ 1963 Foundation of Boston Consulting Group 1965 Foundation of the first two Business Universities in Great Britain
EVOLUTION OF CONSULTING FOCUS 1980 1985 1990 1995 2000 2005 Quality Management Lean Management Re-engineering ERP projects Web Technology E-Commerce CRM M-Commerce  Strategy
TYPES OF CONSULTING Different types of management consulting Strategy Advice and counsel about corporate-level or business-unit strategies Operations Management  Figuring out how to improve the efficiency or productivity of how a business works Human Resources  Compensation and benefits advice, attracting, motivating, and retaining high quality employees Information Technology Design, implement, test and roll-out new IT or install  and  operate massive packaged software "solutions “ .
STRATEGY VS. IT- CONSULTING Worldwide Professional Services Market $billions Source:  Dataquest $250 $475 $45 $85 $25 $5 $0 $100 $200 $300 $400 $500 $600 1990 1999 2003 18% annual   growth Pure Strategy IT-related Service
GERMAN CONSULTING MARKET OVERVIEW German Consulting market overview 1998: 62.500 Management-,  Personnel - and IT-Consultants (BDU e.V.) 1 3.200 Consulting Companies Total revenues: 18,8 bn. DM (BDU e.V.) 1999: 64.500 Management-,  Personnel - and IT- Consultants (BDU e.V.) 14.300 Consulting Companies Total revenues: 21,3 bn. DM (BDU e.V.)
TOP 20 CONSULTING COMPANIES WORLDWIDE
TOP 30 CONSULTING COMPANIES IN GERMANY Source:  Lünendonk Consultancy + Research GbR, Hamburg
WHERE DO YOU WANT TO GO TODAY? A scene from Lewis Carroll's "Alice's Adventures In Wonderland", when Alice asks the Cheshire cat for directions, speaks volumes about planning where an organization wants to be in the future. "Would you tell me, please, which way I ought to go from here?" asks Alice.  "That depends a good deal on where you want to get to," said the Cat. "I don't much care where." said Alice. "Then, it doesn't matter which way you go." said the Cat.
REASONS TO HIRE EXTERNAL CONSULTANTS (1/2) Reasons for clients to hire external consultants  (1): Existing companies are not ready for the  pace globalization  and  vanishing market barriers  they face -> need Consultants with broad market / industry knowledge Increasing M&A activities  -> High complexity of transactions and tasks related to Post Merger Integration Challenges of the  high tech environment : employees are wholly occupied with daily work and don’t have the time to think about innovations Changing working environment  necessitate creative and up-to-date HR Management Deregulation  enabled new companies to enter the market. In order to position and compete against former monopolists they need industry related consulting experience (+other way round, ex-monopolists try to defend themselves against new market entries using the knowledge of external companies)
REASONS TO HIRE EXTERNAL CONSULTANTS (2/2) Reasons for clients to hire external consultants  (2): Consultants have access to information on a truly global basis ( Knowledge Exchange ) Widespread acceptance of using consultants to gain  outside expertise . Rapid  technological change . Movement to  enterprise   wide solutions . Lack of in-house expertise  in Processes, technologies, industry best practices, and project management.
BENEFITS OF USING CONSULTANTS Subject matter expert : A consultant will save time and money by arriving to a solution to  the client‘s  needs at a faster pace because of past extensive knowledge and experience in dealing with other business owners.  Objective point of view : A consultant will bring a refreshing outside point of view to  the client‘s  company, which will pin-point existing problems or reach faster solutions.  Educate, inform : A good consultant will educate and inform the client   as the task is completed.  Share information about industry and competition:  This is essential to reaching company goals.  Assist with strategic planning  which will help reach company goals faster and easier.  Offer innovative ideas
WORK AND LIFESTYLE CHARACTERISTICS Work at client site Work in team environment Work with a variety of clients across industries Assess client business and technical challenges Develop solutions to move client forward Extensive traveling  Enriching learning experience Cyclical overtime Travel Variety of responsibilities Work with technology
TOP 10 WAYS TO KNOW YOU ARE DATING AN CONSULTANT 1.  Refers to lovemaking as a "win-win." 2.  Valentine's Day card has bullet points. 3.  Can't be trusted with the car   -   too accustomed to beating up rentals. 4.  Celebrates anniversary by conducting a performance review. 5.  Ends any argument by saying, "let's talk about this off-line." 6.  Tries to call room-service from the bedroom. 7.  Congratulates your parents for successful value creation. 8.  R efer red  to the yield of the tomato plants in  your  home garden as "deliverables" 9.  Talks to the waiter about process flow when dinner arrives late. 10. Referred to the first month of your relationship as a "diagnostic period."
NATURE, TRENDS, CAREERS Nature and purpose of consulting Recent trends and current challenges Staff and career paths in consulting
RECENT TRENDS AND CURRENT CHALLENGES Changing customer expectations Increasing market power of the TOP consulting companies Effective usage of information technology Split Tax/Auditing - Consulting Strategic Alliances and Start-up Partnerships New suppliers enter the consulting market Expansion of the well known consulting companies IT consulting by traditional consulting companies Get & retain the right people How to face the current challenges
CHANGING CUSTOMER EXPECTATIONS  – SOME STATEMENTS "CTOs and other e-business strategists do not want to hear me tell them I can help Web-enable their business. That is not enough. They want to know how I can help them transform their business."  -- Chuck Burns, global senior vice president, services, KPMG "CTOs have more choices than ever before when it comes to selecting a consultant. We go into bids now where we may compete against one of the giant, Big Five firms ... and even, in some cases, an advertising or marketing agency."  -- Scott Lochridge, principal, strategy solutions group, DiaLogos "The days of black magic are over, Consultants can no longer get away with just writing a white paper for the client and saying, 'OK, now you do what I say.' ” -- Jose Campos, president of Rapidinnovation
CHANGING CUSTOMER EXPECTATIONS Customer expect real added value Standard Implementations are decreasing while individual end-to-end solution become much more important  Unsuccessful ERP implementations in the 90s made the customer more aware of risks and challenges --> Customer are much more sensitive to what they get for their money Results in new payment schemes like: Fixed price (especially done by smaller / start-up companies) Risk and reward sharing  Equity payment Payment in terms of %-age of actual value added On time delivery clauses in contract
INCREASING MARKET POWER OF THE TOP 20 CONSULTING COMPANIES Facts 40 TOP Consulting Companies increased their market share in Germany from 42 to 45 %  Average growth rate of the TOP Player: ~ 19,5 %/p.a. Smaller Consulting companies: ~ 4,0 %/p.a. Acquisitions of smaller and mid-sized consulting firms by the larger companies in order to diversify their market offer Planned partly IPO of KPMG, Arthur D. Little, Andersen Consulting also investigating  Increasing market power and influence through ventures, e.g. - AC Venture  - McKinsey’s “New Venture”  - Roland Berger & bmp
SPLIT TAX/AUDITING – REASONS AND CONSEQUENCES Reasons U.S. Security and Exchange Commission: Critical if Consulting Companies advice clients that are audited by the same company  Higher margins and growth rates in  consulting Inability for consulting part to raise money by going public as long as they are part of auditing companies Consequences Consulting companies can and will go public (e.g. KPMG) No more legal restrictions for consulting companies to advice other companies Differentiation process will accelerate (increasing marketing activities) Repositioning needs
SPLIT TAX/AUDITING - CONSULTING  Examples Andersen Consulting vs. Arthur Andersen: Arbitration Decision in order to allow Andersen Consulting  to split from Arthur Andersen KPMG: IPO of KPMG Consulting Business Cisco took 20% stake Another 20% for the accounting part Hewlett Packard interested to buy PriceWaterhouseCoopers’ Management and IT Consulting part Cap Gemini to buy consulting piece of Ernst & Young A.T. Kearney and EDS
STRATEGIC ALLIANCES OF ACCENTURE
ALLIANCES AND PARTNERSHIPS: SOME EXAMPLES Cap Gemini: - Siebel Systems - IBM   - Sun Microsystems - Microsoft KPMG: - Compaq   - Cisco - Microsoft - JD Edwards CSC: - Peoplesoft   - Broadvision - IBM - Lucent   - Nokia EDS: - Sun Microsystems  - SAP - Oracle  - Cisco
NEW COMPETITORS ENTER THE CONSULTANT MARKET New Suppliers enter the consulting market Hardware manufacturers  - HP already increased their number of in-house consultants to 6.000  + potential PriceWaterhouseCoopers part Internet service providers, e.g.  Pixelpark buying the Swedish Consulting firm “Cell Network / Mandator”  Building „Inhouse-Consulting capabilities“   - Siemens (Siemens Business Services providing  ERP, CRM    implementations)   - SAP System   - Deutsche Telekom buying majority stake in Debis Systemhaus Financial Institutions and Telecommunication companies
EXPANSION OF WELL KNOWN CONSULTING COMPANIES Expansion of the  TOP  consulting companies through M&A, alliances, ventures and strategic partnerships. Chance to expand business and  opening new markets After M&A, differentiation becomes critical, therefore high advertising budgets IPO Strategies: Raise money for eCommerce strategy Venture Capital funds To attract people (competitive salaries and payment structures) Examples: Cap Gemini acquiring Ernst & Young Cap Gemini buying SD&M CSC Ploenzke to buy KPMG France
IT CONSULTING AT THE ESTABLISHED CONSULTING COMPANIES As eCommerce is acknowledge to be one of the key business drivers, also the traditional consulting companies try to get into it Strategy companies like Booz Allen Hamilton etc. to launch eCommerce centers and venture capital firms By buying smaller companies and partnering they are able to provide a full implementation service, e.g. Bain alliance with i2 and Oracle McKinsey has been accused having overslept the e-Commerce age; no w  trying to work on that subject through increasing alliances & ventures in the eBusiness After split from Andersen Consulting, Arthur Andersen will get more into IT consulting
GET AND RETAIN THE RIGHT PEOPLE IPO in order to attract personnel Until backdrop of Dot.Coms and the stock market, tendency of leading personnel to leave traditional companies to join Start-ups: Cambridge Technology lost over the last year many top managers (i.e. Founder and CEO, CFO, General counsel, Head of its E-Business unit, Managing director of the Cambridge Technology Capital venture fund) mostly to small high-tech companies. Dean Hawkins, former CFO of Adidas to become CFO @ boo.com Joe Galli, Vice President Black & Decker to join Amazon.com as member of the board  Heiner Rutt, chairman @ Boston Consulting Group to become president at Proxicom IBM Germany has about 3.000 open IT positions for 2001, Hewlett-Packard to look for 500 IT specialists, PricewaterhouseCoopers 300 and Siemens 1.500, Andersen Consulting with 1.100 open positions in ASG.
"WINNING THE WAR FOR TALENT" Key factors of success Image  Interesting tasks  Personal development Balanced life style International atmosphere  1. DaimlerChrysler 2. Lufthansa 3. McKinsey  4. BMW 5. KPMG 6. Boston Consulting 7. Deutsche Bank 8. Siemens 9. SAP 10. Accenture Attractive employees Focus 30. August 1999
HOW TO FACE THE CURRENT CHALLENGES New strategies Branding Campaigns  Personnel development concepts Efficient Knowledge Management Accurate Planning  Change as Chance Synchronize the key success factors: - people - process - strategy  - technology
NATURE, TRENDS, CAREERS Nature and purpose of consulting Recent trends and current challenges Staff and career paths in consulting
STAFF AND CAREER PATHS Accenture McKinsey Partner Associate Partner Manager Consultant Analyst Director Principle Associate Principle Project Manager Consultant
ROLES AND RESPONSIBILITIES: EXAMPLES Lead work teams Facilitate Team-Meetings Systems design Client presentations Lead subprojects Consultant Analyst Proposals Forecasting Develop and execute client training Client interviews Programming Systems Documentation Participates in problem solving Recommends and implements solutions Defines user requirements Researches new and existing technology  Provides production support Tests software Reviews work of peers
ROLES AND RESPONSIBILITIES (CTD.) Partner Manager Interface with client senior management Lead client meetings Develop new business Develop management team Shape and impact the Firm Attain Ownership in the Firm Lead client meetings Manage projects Lead and develop project team
CONSULTING: ALWAYS STAY REALISTICALLY  A consultant, manager and a partner from a Consulting company are walking   through a park on their way to lunch when they find an antique oil lamp. They rub it and a Genie comes out in a puff of smoke.  The Genie says, "I usually only grant three wishes, so I'll give each of you just one. "Me first! Me first!" says the consultant. "I want to be in the Bahamas, driving a speedboat, without a care in the world." Poof! she's gone. In astonishment, "Me next! Me next!' says the manager, "I want to be in Hawaii, relaxing on the beach with my personal masseuse, an endless supply   of pina coladas and the love of my life." Poof! He's gone. "You're next," the Genie says to the partner.  The partner says, "I want those two back in the office after lunch."
PERSONS TO SUPPORT YOUR PERSONAL CAREER Personal Mentor Peer Group Annual Reviews (upward/downward/sideward) Partner Group Practice Leaders
SOME ATTRIBUTES FOR GOOD CONSULTANTS Ambition to permanently learn Determination to succeed Strong communication skills Motivation Flexibility Agility Approachable Proactive Innovative Results-oriented Self Confident Entrepreneurial thinking
BENEFITS AND CHALLENGES OF CONSULTING Benefits of Consulting Learning new industries  Earning more income Flexible contract lengths Possible full time opportunities Less office politics Learning new technical skills Meeting new people Challenges of Consulting Not being a "full-timer"  Possible additional travel or commute time
PROJECT WORK PLAN:  ONE EXAMPLE FOR A THREE-MONTH PROJECT  EXAMPLE ALTE FOLIE VERWENDEN
YOU KNOW THAT YOU HAVE BEEN TOO LONG A CONSULTANT WHEN  …  you feel naked without a laptop hanging from your left shoulder; you start thinking that life in the US Navy Submarine Corps would give you more time at home; you are upset when you come home on Friday night and the lights aren't on, the bed isn't turned down, and there are no chocolates on your pillow; "vacationing" is spending an entire weekend in your own home; you have seen more movies at 35,000 feet than you have at your local movie theater before starting the car, you insist on telling everyone where the emergency exits are; before stopping the car, you insist that everyone stay seated until the fasten seatbelts sign is off; instant coffee tastes good; you've been staying in the same hotel, you instinctively call it "home"; you say "Whoopee!  Half day!"  when you leave at 10:00PM;
AGENDA Introduction/Expectations Example consultant company Consulting: Nature, Trends, Careers Selected Methods (frameworks) Research (some basics) Graphics (from data to chart)
AGENDA Introduction/Expectations Example consultant company Consulting: Nature, Trends, Careers Selected Methods (frameworks) Research (some basics) Graphics (from data to chart)
AGENDA Introduction/Expectations Example consultant company Consulting: Nature, Trends, Careers Selected Methods (frameworks) Research (some basics) Graphics (from data to chart)

Accenture:管理咨询经典

  • 1.
    Lecture – ManagementConsulting: An Introduction Jürgen Zech 2001 April
  • 2.
    AGENDA Introduction/Expectations Exampleconsultant company Consulting: Nature, Trends, Careers Selected Methods (frameworks) Research (some basics) Graphics (from data to chart)
  • 3.
    AGENDA Introduction/Expectations Exampleconsultant company Consulting: Nature, Trends, Careers Selected Methods (frameworks) Research (some basics) Graphics (from data to chart)
  • 4.
    ACCENTURE: MISSION ANDVISION Our Mission : Helping our clients create their future. Our Vision : To become one of the world's leading companies, bringing innovations to improve the way the world works and lives.
  • 5.
    ACCENTURE: CORE VALUESOne Global Firm – Act to enhance the collective values of the global partnership, while sustaining local culture. Stewardship – Think future oriented; act and invest to build a stronger firm for tomorrow. Integrity – Act with openness and honesty. Always. Respect for the Individual – Treat each person as we would like to be treated. Quality Client Service – Understand and meet client expectations 100 percent of the time. Best People – Are highly competent and make a commitment to excellence, teamwork, and the success of our clients.
  • 6.
    ACCENTURE: IMPORTANT MILESTONES1989 Andersen Consulting becomes a separate business unit from Arthur Andersen $1.6 billion 21,400 employees 1991 Horizon 2000 Initiative to develop mission and strategic plan $2.3 billion 25,000 personnel 1993 Andersen Consulting issues its first annual report $2.9 billion 27,000 employees 1997 Andersen Consulting creates a global network of communications-focused solution centers in an effort to set the standard for speed and quality of performance $6.6. Billion 53,000 employees 1998 $8.3 billion 65,000 employees 2000 Joe Forehand becomes Managing Partner and introduces the 100 Day Plan Andersen Consulting wins arbitration agains t Arthur Andersen 01.01.01 Accenture, formerly known as Andersen Consulting
  • 7.
    ACCENTURE GLOBALLY Employees:over 65,000 Countries: 48 Revenue ‘99: 8,9 Billion USD Clients: The vast majority of Fortune 30 most profitable global public companies Nearly 75% of Fortune 200 global companies 100 of the most significant “Industry Standard” Internet companies
  • 8.
    ACCENTURE: DEVELOPMENT OFREVENUES (U.S. Billions) 1993 $2,876 1994 $3,452 1995 $4,224 1996 $5,302 1997 $6,647 1998 $8,3
  • 9.
    ACCENTURE: GLOBAL PERSONNELGROWTH 1997 53,426 1996 44,801 1995 38,027 1994 32,711 1998 65,134
  • 10.
    Americas EMEAI Asia/Pacific Hamburg Frankfurt München Düsseldorf Berlin Wien Zürich ASG – Austria, Switzerland, Germany ACCENTURE IN ASG 2,750 Employees 7 Offices Revenues: 1,24 Mrd. DM
  • 11.
    Global Competitive OverviewStrategy Digital Equipment McKinsey Andersen Consulting Organization Processes Information Technology Business Process Management (Outsourcing) Cap Gemini Sogeti UNISYS IBM Computer Sciences EDS Boston Consulting Booz Allen
  • 12.
    ACCENTURE: MARKET UNITSFinancial Services Banking Health Services Insurance Products Automotive, Industrial Equipment, Travel & Transportation Consumer & Pharmaceutical Products Retail Communications & High Tech Communications Electronics & High Tech Media & Entertainment Resources Chemicals Energy & Natural Resources Utilities Government
  • 13.
  • 14.
    AGENDA Introduction/Expectations Exampleconsultant company Consulting: Nature, Trends, Careers Selected Methods (frameworks) Research (some basics) Graphics (from data to chart)
  • 15.
    NATURE, TRENDS, CAREERSNature and purpose of consulting Recent trends and current challenges Staff and career paths in consulting
  • 16.
    NATURE AND PURPOSEOF CONSULTING Nature and Purpose of Consulting Definition of „Consulting“ Brief look into history Different types of consulting Consulting market overview Consultant: Profession description Consulting strategies Short overview over the consulting process Reasons for clients to hire external consultants Guidelines for the client - consultant relationship
  • 17.
    DEFINITION OF CONSULTINGDefinition of Consulting „ To give expert advice or provide expert counsel.“ (IKS) „ Consulting provides value by diagnosing, strategizing, designing, constructing, integrating, operating, or implementing solutions. Consulting utilizes relevant knowledge, based on integrity and objectivity, in both expert and advisory roles.“ (Consulting Services Team) „ Consulting is whatever a consultant does." (Cambridge Computer Services)
  • 18.
    CONSULTING HISTORY (1/2)Brief look into history 1532 Macchiavelli‘s „Il Principe“ 1886 Foundation of the „analytical testlab“ by Arthur D. Little 1895 „A piece rate system“ by F. Taylor 1909 Foundation of Arthur D. Little, Inc. 1911 „The principles of scientific management“ by F. Taylor 1911 „Motion Study“ by F. Gilbreth 1912 „Consulting Firms“ by F. Gilbreth 1914 E. Booz sets up Business Research Services 1925 J.O. McKinsey starts his Consulting firm 1934 Urwick, Orr & Partners: Management ist lehr- und lernbar 1939 Peter Drucker „The end of economic man“ 1947 Foundation of the Travistock Institute
  • 19.
    CONSULTING HISTORY (2/2)Brief look into history 1949 Robert Wiener „Cybernetics“ 1950 Marvin Bower becomes CEO of Mc Kinsey and starts with the expansion 1951 First Deming-Avard for Quality in Japan 1954 Foundation of the BDU 1954 Peter Drucker: „The practi s e of management“ 1957 Argyris: „Personality and Organization“ 1959 Herzberg, Mausner, Snyderman: „The motivation to work“ 1960 Mc Gregor: „The human side of enterprise“, Maslow: „Motivation and Personality“ 1963 Foundation of Boston Consulting Group 1965 Foundation of the first two Business Universities in Great Britain
  • 20.
    EVOLUTION OF CONSULTINGFOCUS 1980 1985 1990 1995 2000 2005 Quality Management Lean Management Re-engineering ERP projects Web Technology E-Commerce CRM M-Commerce Strategy
  • 21.
    TYPES OF CONSULTINGDifferent types of management consulting Strategy Advice and counsel about corporate-level or business-unit strategies Operations Management Figuring out how to improve the efficiency or productivity of how a business works Human Resources Compensation and benefits advice, attracting, motivating, and retaining high quality employees Information Technology Design, implement, test and roll-out new IT or install and operate massive packaged software "solutions “ .
  • 22.
    STRATEGY VS. IT-CONSULTING Worldwide Professional Services Market $billions Source: Dataquest $250 $475 $45 $85 $25 $5 $0 $100 $200 $300 $400 $500 $600 1990 1999 2003 18% annual growth Pure Strategy IT-related Service
  • 23.
    GERMAN CONSULTING MARKETOVERVIEW German Consulting market overview 1998: 62.500 Management-, Personnel - and IT-Consultants (BDU e.V.) 1 3.200 Consulting Companies Total revenues: 18,8 bn. DM (BDU e.V.) 1999: 64.500 Management-, Personnel - and IT- Consultants (BDU e.V.) 14.300 Consulting Companies Total revenues: 21,3 bn. DM (BDU e.V.)
  • 24.
    TOP 20 CONSULTINGCOMPANIES WORLDWIDE
  • 25.
    TOP 30 CONSULTINGCOMPANIES IN GERMANY Source: Lünendonk Consultancy + Research GbR, Hamburg
  • 26.
    WHERE DO YOUWANT TO GO TODAY? A scene from Lewis Carroll's "Alice's Adventures In Wonderland", when Alice asks the Cheshire cat for directions, speaks volumes about planning where an organization wants to be in the future. "Would you tell me, please, which way I ought to go from here?" asks Alice. "That depends a good deal on where you want to get to," said the Cat. "I don't much care where." said Alice. "Then, it doesn't matter which way you go." said the Cat.
  • 27.
    REASONS TO HIREEXTERNAL CONSULTANTS (1/2) Reasons for clients to hire external consultants (1): Existing companies are not ready for the pace globalization and vanishing market barriers they face -> need Consultants with broad market / industry knowledge Increasing M&A activities -> High complexity of transactions and tasks related to Post Merger Integration Challenges of the high tech environment : employees are wholly occupied with daily work and don’t have the time to think about innovations Changing working environment necessitate creative and up-to-date HR Management Deregulation enabled new companies to enter the market. In order to position and compete against former monopolists they need industry related consulting experience (+other way round, ex-monopolists try to defend themselves against new market entries using the knowledge of external companies)
  • 28.
    REASONS TO HIREEXTERNAL CONSULTANTS (2/2) Reasons for clients to hire external consultants (2): Consultants have access to information on a truly global basis ( Knowledge Exchange ) Widespread acceptance of using consultants to gain outside expertise . Rapid technological change . Movement to enterprise wide solutions . Lack of in-house expertise in Processes, technologies, industry best practices, and project management.
  • 29.
    BENEFITS OF USINGCONSULTANTS Subject matter expert : A consultant will save time and money by arriving to a solution to the client‘s needs at a faster pace because of past extensive knowledge and experience in dealing with other business owners. Objective point of view : A consultant will bring a refreshing outside point of view to the client‘s company, which will pin-point existing problems or reach faster solutions. Educate, inform : A good consultant will educate and inform the client as the task is completed. Share information about industry and competition: This is essential to reaching company goals. Assist with strategic planning which will help reach company goals faster and easier. Offer innovative ideas
  • 30.
    WORK AND LIFESTYLECHARACTERISTICS Work at client site Work in team environment Work with a variety of clients across industries Assess client business and technical challenges Develop solutions to move client forward Extensive traveling Enriching learning experience Cyclical overtime Travel Variety of responsibilities Work with technology
  • 31.
    TOP 10 WAYSTO KNOW YOU ARE DATING AN CONSULTANT 1. Refers to lovemaking as a "win-win." 2. Valentine's Day card has bullet points. 3. Can't be trusted with the car - too accustomed to beating up rentals. 4. Celebrates anniversary by conducting a performance review. 5. Ends any argument by saying, "let's talk about this off-line." 6. Tries to call room-service from the bedroom. 7. Congratulates your parents for successful value creation. 8. R efer red to the yield of the tomato plants in your home garden as "deliverables" 9. Talks to the waiter about process flow when dinner arrives late. 10. Referred to the first month of your relationship as a "diagnostic period."
  • 32.
    NATURE, TRENDS, CAREERSNature and purpose of consulting Recent trends and current challenges Staff and career paths in consulting
  • 33.
    RECENT TRENDS ANDCURRENT CHALLENGES Changing customer expectations Increasing market power of the TOP consulting companies Effective usage of information technology Split Tax/Auditing - Consulting Strategic Alliances and Start-up Partnerships New suppliers enter the consulting market Expansion of the well known consulting companies IT consulting by traditional consulting companies Get & retain the right people How to face the current challenges
  • 34.
    CHANGING CUSTOMER EXPECTATIONS – SOME STATEMENTS "CTOs and other e-business strategists do not want to hear me tell them I can help Web-enable their business. That is not enough. They want to know how I can help them transform their business." -- Chuck Burns, global senior vice president, services, KPMG "CTOs have more choices than ever before when it comes to selecting a consultant. We go into bids now where we may compete against one of the giant, Big Five firms ... and even, in some cases, an advertising or marketing agency." -- Scott Lochridge, principal, strategy solutions group, DiaLogos "The days of black magic are over, Consultants can no longer get away with just writing a white paper for the client and saying, 'OK, now you do what I say.' ” -- Jose Campos, president of Rapidinnovation
  • 35.
    CHANGING CUSTOMER EXPECTATIONSCustomer expect real added value Standard Implementations are decreasing while individual end-to-end solution become much more important Unsuccessful ERP implementations in the 90s made the customer more aware of risks and challenges --> Customer are much more sensitive to what they get for their money Results in new payment schemes like: Fixed price (especially done by smaller / start-up companies) Risk and reward sharing Equity payment Payment in terms of %-age of actual value added On time delivery clauses in contract
  • 36.
    INCREASING MARKET POWEROF THE TOP 20 CONSULTING COMPANIES Facts 40 TOP Consulting Companies increased their market share in Germany from 42 to 45 % Average growth rate of the TOP Player: ~ 19,5 %/p.a. Smaller Consulting companies: ~ 4,0 %/p.a. Acquisitions of smaller and mid-sized consulting firms by the larger companies in order to diversify their market offer Planned partly IPO of KPMG, Arthur D. Little, Andersen Consulting also investigating Increasing market power and influence through ventures, e.g. - AC Venture - McKinsey’s “New Venture” - Roland Berger & bmp
  • 37.
    SPLIT TAX/AUDITING –REASONS AND CONSEQUENCES Reasons U.S. Security and Exchange Commission: Critical if Consulting Companies advice clients that are audited by the same company Higher margins and growth rates in consulting Inability for consulting part to raise money by going public as long as they are part of auditing companies Consequences Consulting companies can and will go public (e.g. KPMG) No more legal restrictions for consulting companies to advice other companies Differentiation process will accelerate (increasing marketing activities) Repositioning needs
  • 38.
    SPLIT TAX/AUDITING -CONSULTING Examples Andersen Consulting vs. Arthur Andersen: Arbitration Decision in order to allow Andersen Consulting to split from Arthur Andersen KPMG: IPO of KPMG Consulting Business Cisco took 20% stake Another 20% for the accounting part Hewlett Packard interested to buy PriceWaterhouseCoopers’ Management and IT Consulting part Cap Gemini to buy consulting piece of Ernst & Young A.T. Kearney and EDS
  • 39.
  • 40.
    ALLIANCES AND PARTNERSHIPS:SOME EXAMPLES Cap Gemini: - Siebel Systems - IBM - Sun Microsystems - Microsoft KPMG: - Compaq - Cisco - Microsoft - JD Edwards CSC: - Peoplesoft - Broadvision - IBM - Lucent - Nokia EDS: - Sun Microsystems - SAP - Oracle - Cisco
  • 41.
    NEW COMPETITORS ENTERTHE CONSULTANT MARKET New Suppliers enter the consulting market Hardware manufacturers - HP already increased their number of in-house consultants to 6.000 + potential PriceWaterhouseCoopers part Internet service providers, e.g. Pixelpark buying the Swedish Consulting firm “Cell Network / Mandator” Building „Inhouse-Consulting capabilities“ - Siemens (Siemens Business Services providing ERP, CRM implementations) - SAP System - Deutsche Telekom buying majority stake in Debis Systemhaus Financial Institutions and Telecommunication companies
  • 42.
    EXPANSION OF WELLKNOWN CONSULTING COMPANIES Expansion of the TOP consulting companies through M&A, alliances, ventures and strategic partnerships. Chance to expand business and opening new markets After M&A, differentiation becomes critical, therefore high advertising budgets IPO Strategies: Raise money for eCommerce strategy Venture Capital funds To attract people (competitive salaries and payment structures) Examples: Cap Gemini acquiring Ernst & Young Cap Gemini buying SD&M CSC Ploenzke to buy KPMG France
  • 43.
    IT CONSULTING ATTHE ESTABLISHED CONSULTING COMPANIES As eCommerce is acknowledge to be one of the key business drivers, also the traditional consulting companies try to get into it Strategy companies like Booz Allen Hamilton etc. to launch eCommerce centers and venture capital firms By buying smaller companies and partnering they are able to provide a full implementation service, e.g. Bain alliance with i2 and Oracle McKinsey has been accused having overslept the e-Commerce age; no w trying to work on that subject through increasing alliances & ventures in the eBusiness After split from Andersen Consulting, Arthur Andersen will get more into IT consulting
  • 44.
    GET AND RETAINTHE RIGHT PEOPLE IPO in order to attract personnel Until backdrop of Dot.Coms and the stock market, tendency of leading personnel to leave traditional companies to join Start-ups: Cambridge Technology lost over the last year many top managers (i.e. Founder and CEO, CFO, General counsel, Head of its E-Business unit, Managing director of the Cambridge Technology Capital venture fund) mostly to small high-tech companies. Dean Hawkins, former CFO of Adidas to become CFO @ boo.com Joe Galli, Vice President Black & Decker to join Amazon.com as member of the board Heiner Rutt, chairman @ Boston Consulting Group to become president at Proxicom IBM Germany has about 3.000 open IT positions for 2001, Hewlett-Packard to look for 500 IT specialists, PricewaterhouseCoopers 300 and Siemens 1.500, Andersen Consulting with 1.100 open positions in ASG.
  • 45.
    "WINNING THE WARFOR TALENT" Key factors of success Image Interesting tasks Personal development Balanced life style International atmosphere 1. DaimlerChrysler 2. Lufthansa 3. McKinsey 4. BMW 5. KPMG 6. Boston Consulting 7. Deutsche Bank 8. Siemens 9. SAP 10. Accenture Attractive employees Focus 30. August 1999
  • 46.
    HOW TO FACETHE CURRENT CHALLENGES New strategies Branding Campaigns Personnel development concepts Efficient Knowledge Management Accurate Planning Change as Chance Synchronize the key success factors: - people - process - strategy - technology
  • 47.
    NATURE, TRENDS, CAREERSNature and purpose of consulting Recent trends and current challenges Staff and career paths in consulting
  • 48.
    STAFF AND CAREERPATHS Accenture McKinsey Partner Associate Partner Manager Consultant Analyst Director Principle Associate Principle Project Manager Consultant
  • 49.
    ROLES AND RESPONSIBILITIES:EXAMPLES Lead work teams Facilitate Team-Meetings Systems design Client presentations Lead subprojects Consultant Analyst Proposals Forecasting Develop and execute client training Client interviews Programming Systems Documentation Participates in problem solving Recommends and implements solutions Defines user requirements Researches new and existing technology Provides production support Tests software Reviews work of peers
  • 50.
    ROLES AND RESPONSIBILITIES(CTD.) Partner Manager Interface with client senior management Lead client meetings Develop new business Develop management team Shape and impact the Firm Attain Ownership in the Firm Lead client meetings Manage projects Lead and develop project team
  • 51.
    CONSULTING: ALWAYS STAYREALISTICALLY A consultant, manager and a partner from a Consulting company are walking through a park on their way to lunch when they find an antique oil lamp. They rub it and a Genie comes out in a puff of smoke. The Genie says, "I usually only grant three wishes, so I'll give each of you just one. "Me first! Me first!" says the consultant. "I want to be in the Bahamas, driving a speedboat, without a care in the world." Poof! she's gone. In astonishment, "Me next! Me next!' says the manager, "I want to be in Hawaii, relaxing on the beach with my personal masseuse, an endless supply of pina coladas and the love of my life." Poof! He's gone. "You're next," the Genie says to the partner. The partner says, "I want those two back in the office after lunch."
  • 52.
    PERSONS TO SUPPORTYOUR PERSONAL CAREER Personal Mentor Peer Group Annual Reviews (upward/downward/sideward) Partner Group Practice Leaders
  • 53.
    SOME ATTRIBUTES FORGOOD CONSULTANTS Ambition to permanently learn Determination to succeed Strong communication skills Motivation Flexibility Agility Approachable Proactive Innovative Results-oriented Self Confident Entrepreneurial thinking
  • 54.
    BENEFITS AND CHALLENGESOF CONSULTING Benefits of Consulting Learning new industries Earning more income Flexible contract lengths Possible full time opportunities Less office politics Learning new technical skills Meeting new people Challenges of Consulting Not being a "full-timer" Possible additional travel or commute time
  • 55.
    PROJECT WORK PLAN: ONE EXAMPLE FOR A THREE-MONTH PROJECT EXAMPLE ALTE FOLIE VERWENDEN
  • 56.
    YOU KNOW THATYOU HAVE BEEN TOO LONG A CONSULTANT WHEN … you feel naked without a laptop hanging from your left shoulder; you start thinking that life in the US Navy Submarine Corps would give you more time at home; you are upset when you come home on Friday night and the lights aren't on, the bed isn't turned down, and there are no chocolates on your pillow; "vacationing" is spending an entire weekend in your own home; you have seen more movies at 35,000 feet than you have at your local movie theater before starting the car, you insist on telling everyone where the emergency exits are; before stopping the car, you insist that everyone stay seated until the fasten seatbelts sign is off; instant coffee tastes good; you've been staying in the same hotel, you instinctively call it "home"; you say "Whoopee! Half day!" when you leave at 10:00PM;
  • 57.
    AGENDA Introduction/Expectations Exampleconsultant company Consulting: Nature, Trends, Careers Selected Methods (frameworks) Research (some basics) Graphics (from data to chart)
  • 58.
    AGENDA Introduction/Expectations Exampleconsultant company Consulting: Nature, Trends, Careers Selected Methods (frameworks) Research (some basics) Graphics (from data to chart)
  • 59.
    AGENDA Introduction/Expectations Exampleconsultant company Consulting: Nature, Trends, Careers Selected Methods (frameworks) Research (some basics) Graphics (from data to chart)