Lecture–ManagementConsulting:AnIntroduction

JürgenZech2023/1/171AGENDAIntroduction/ExpectationsExampleconsultantcompanyConsulting:Nature,Trends,CareersSelectedMethods(frameworks)Research(somebasics)Graphics(fromdatatochart)2023/1/172AGENDAIntroduction/ExpectationsExampleconsultantcompanyConsulting:Nature,Trends,CareersSelectedMethods(frameworks)Research(somebasics)Graphics(fromdatatochart)2023/1/173OurMission:Helpingourclientscreatetheirfuture.ACCENTURE:MISSIONANDVISIONOurVision:

Tobecomeoneoftheworld'sleadingcompanies,bringinginnovationstoimprovethewaytheworldworksandlives.2023/1/174OneGlobalFirm–Acttoenhancethecollectivevaluesoftheglobalpartnership,whilesustaininglocalculture.Stewardship–Thinkfutureoriented;actandinvesttobuildastrongerfirmfortomorrow.Integrity–Actwithopennessandhonesty.Always.RespectfortheIndividual–Treateachpersonaswewouldliketobetreated.QualityClientService–Understandandmeetclientexpectations100percentofthetime.BestPeople–Arehighlycompetentandmakeacommitmenttoexcellence,teamwork,andthesuccessofourclients.ACCENTURE:COREVALUES2023/1/1751989

AndersenConsultingbecomesaseparatebusinessunitfromArthurAndersen$1.6billion21,400employees1991Horizon2000Initiativetodevelopmissionandstrategicplan$2.3billion25,000personnel1993AndersenConsultingissuesitsfirstannualreport$2.9billion27,000employees1997AndersenConsultingcreatesaglobalnetworkofcommunications-focusedsolutioncentersinanefforttosetthestandardforspeedandqualityofperformance$6.6.Billion53,000employees1998$8.3billion65,000employees2000JoeForehandbecomesManagingPartnerandintroducesthe100DayPlanAndersenConsultingwinsarbitrationagainstArthurAndersenAccenture,formerlyknownasAndersenConsultingACCENTURE:IMPORTANTMILESTONES2023/1/176ACCENTUREGLOBALLYEmployees: over65,000Countries: 48Revenue‘99: 8,9BillionUSDClients: ThevastmajorityofFortune30mostprofitableglobalpubliccompaniesNearly75%ofFortune200globalcompanies100ofthemostsignificant“IndustryStandard”Internetcompanies2023/1/177ACCENTURE:DEVELOPMENTOFREVENUES(U.S.Billions)1993$2,8761994$3,4521995$4,2241996$5,3021997$6,6471998$8,32023/1/178ACCENTURE:GLOBALPERSONNELGROWTH199753,426199644,801199538,027199432,711199865,1342023/1/179AmericasEMEAIAsia/

PacificHamburgFrankfurtMünchenDüsseldorfBerlinWienZürichASG–

Austria,Switzerland,

GermanyACCENTUREINASG2,750Employees7OfficesRevenues:1,24Mrd.DM2023/1/1710GlobalCompetitiveOverviewStrategyDigitalEquipmentMcKinseyAndersenConsultingOrganizationProcessesInformation

TechnologyBusinessProcessManagement(Outsourcing)CapGeminiSogetiUNISYSIBMComputerSciencesEDSBostonConsultingBoozAllen2023/1/111ACCENTURE:MARKETUNITSFinancialServicesBankingHealthServicesInsuranceProductsAutomotive,IndustrialEquipment,Travel&TransportationConsumer&PharmaceuticalProductsRetailCommunications&HighTechCommunicationsElectronics&HighTechMedia&EntertainmentResourcesChemicalsEnergy&NaturalResourcesUtilitiesGovernment2023/1/112ACCENTURE:SAMPLECLIENTLIST2023/1/113AGENDAIntroduction/ExpectationsExampleconsultantcompanyConsulting:Nature,Trends,CareersSelectedMethods(frameworks)Research(somebasics)Graphics(fromdatatochart)2023/1/114NATURE,TRENDS,CAREERSNatureandpurposeofconsultingRecenttrendsandcurrentchallengesStaffandcareerpathsinconsulting2023/1/115NATUREANDPURPOSEOFCONSULTINGNatureandPurposeofConsultingDefinitionof?Consulting““BrieflookintohistoryDifferenttypesofconsultingConsultingmarketoverviewConsultant:ProfessiondescriptionConsultingstrategiesShortoverviewovertheconsultingprocessReasonsforclientstohireexternalconsultantsGuidelinesfortheclient-consultantrelationship2023/1/116DEFINITIONOFCONSULTINGDefinitionofConsulting?Togiveexpertadviceorprovideexpertcounsel.“(IKS)?Consultingprovidesvaluebydiagnosing,strategizing,designing,constructing,integrating,operating,orimplementingsolutions.Consultingutilizesrelevantknowledge,basedonintegrityandobjectivity,inbothexpertandadvisoryroles.“(ConsultingServicesTeam)?Consultingiswhateveraconsultantdoes."(CambridgeComputerServices)2023/1/117CONSULTINGHISTORY(1/2)Brieflookintohistory1532Macchiavelli‘s??IlPrincipe““1886Foundationofthe?analyticaltestlab“byArthurD.Little1895??Apieceratesystem“byF.Taylor1909FoundationofArthurD.Little,Inc.1911??Theprinciplesofscientificmanagement“byF.Taylor1911??MotionStudy“byF.Gilbreth1912??Consulting1914 E.BoozsetsupBusinessResearchServices1925 J.O.McKinseystartshisConsultingfirm1934 Urwick,Orr&Partners:Managementistlehr-undlernbar1939 PeterDrucker?Theendofeconomicman“1947 FoundationoftheTravistockInstitute2023/1/118CONSULTINGHISTORY(2/2)Brieflookintohistory1949RobertWiener?Cybernetics“1950MarvinBowerbecomesCEOofMcKinseyandstartswiththeexpansion1951FirstDeming-AvardforQualityinJapan1954FoundationoftheBDU1954PeterDrucker:??Thepractiseofmanagement“1957Argyris:?PersonalityandOrganization“1959Herzberg,Mausner,Snyderman:?Themotivationtowork“1960McGregor:??Thehumansideofenterprise“,Maslow:??MotivationandPersonality““1963FoundationofBostonConsultingGroup1965FoundationofthefirsttwoBusinessUniversitiesinGreatBritain2023/1/119EVOLUTIONOFCONSULTINGFOCUSQualityManagementLeanManagementRe-engineeringERPprojectsWebTechnologyE-CommerceCRMM-CommerceStrategy2023/1/120TYPESOFCONSULTINGDifferenttypesofmanagementconsultingStrategyAdviceandcounselaboutcorporate-levelorbusiness-unitstrategiesOperationsManagementFiguringouthowtoimprovetheefficiencyorproductivityofhowabusinessworksHumanResourcesCompensationandbenefitsadvice,attracting,motivating,andretaininghighqualityemployeesInformationTechnologyDesign,implement,testandroll-outnewITorinstallandoperatemassivepackagedsoftware"solutions“.2023/1/121WorldwideProfessionalServicesMarket$billionsSource:Dataquest$250$475$45$85$25$5$0$100$200$300$400$500$600199019992003STRATEGYVS.IT-CONSULTING18%annualgrowthPureStrategyIT-relatedService2023/1/122GERMANCONSULTINGMARKETOVERVIEWGermanConsultingmarketoverview1998: 62.500Management-,Personnel-andIT-Consultants(BDUe.V.)13.200ConsultingCompaniesTotalrevenues:18,8bn.DM(BDUe.V.)1999: 64.500Management-,Personnel-andIT-Consultants(BDUe.V.)14.300ConsultingCompaniesTotalrevenues:21,3bn.DM(BDUe.V.)2023/1/123TOP20CONSULTINGCOMPANIESWORLDWIDE2023/1/124TOP30CONSULTINGCOMPANIESINGERMANYSource:LünendonkConsultancy+ResearchGbR,Hamburg2023/1/125WHEREDOYOUWANTTOGOTODAY?AscenefromLewisCarroll's"Alice'sAdventuresInWonderland",whenAliceaskstheCheshirecatfordirections,speaksvolumesaboutplanningwhereanorganizationwantstobeinthefuture."Wouldyoutellme,please,whichwayIoughttogofromhere?"asksAlice."Thatdependsagooddealonwhereyouwanttogetto,"saidtheCat."Idon'tmuchcarewhere."saidAlice."Then,itdoesn'tmatterwhichwayyougo."saidtheCat.2023/1/126REASONSTOHIREEXTERNALCONSULTANTS(1/2)Reasonsforclientstohireexternalconsultants(1):Existingcompaniesarenotreadyforthepaceglobalizationandvanishingmarketbarrierstheyface->needConsultantswithbroadmarket/industryknowledgeIncreasingM&Aactivities->HighcomplexityoftransactionsandtasksrelatedtoPostMergerIntegrationChallengesofthehightechenvironment:employeesarewhollyoccupiedwithdailyworkanddon’’thavethetimetothinkaboutinnovationsChangingworkingenvironmentnecessitatecreativeandup-to-dateHRManagementDeregulationenablednewcompaniestoenterthemarket.Inordertopositionandcompeteagainstformermonopoliststheyneedindustryrelatedconsultingexperience(+otherwayround,ex-monopoliststrytodefendthemselvesagainstnewmarketentriesusingtheknowledgeofexternalcompanies)2023/1/127REASONSTOHIREEXTERNALCONSULTANTS(2/2)Reasonsforclientstohireexternalconsultants(2):Consultantshaveaccesstoinformationonatrulyglobalbasis(KnowledgeExchange)Widespreadacceptanceofusingconsultantstogainoutsideexpertise.Rapidtechnologicalchange.Movementtoenterprisewidesolutions.Lackofin-houseexpertiseinProcesses,technologies,industrybestpractices,andprojectmanagement.2023/1/128BENEFITSOFUSINGCONSULTANTSSubjectmatterexpert:Aconsultantwillsavetimeandmoneybyarrivingtoasolutiontotheclient‘‘sneedsatafasterpacebecauseofpastextensiveknowledgeandexperienceindealingwithotherbusinessowners.Objectivepointofview:Aconsultantwillbringarefreshingoutsidepointofviewtotheclient‘‘scompany,whichwillpin-pointexistingproblemsorreachfastersolutions.Educate,inform:Agoodconsultantwilleducateandinformtheclientasthetaskiscompleted.Shareinformationaboutindustryandcompetition:Thisisessentialtoreachingcompanygoals.Assistwithstrategicplanningwhichwillhelpreachcompanygoalsfasterandeasier.Offerinnovativeideas2023/1/129WORKANDLIFESTYLECHARACTERISTICSWorkatclientsiteWorkinteamenvironmentWorkwithavarietyofclientsacrossindustriesAssessclientbusinessandtechnicalchallengesDevelopsolutionstomoveclientforwardExtensivetravelingEnrichinglearningexperienceCyclicalovertimeTravelVarietyofresponsibilitiesWorkwithtechnology2023/1/130TOP10WAYSTOKNOWYOUAREDATINGANCONSULTANT1.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."2023/1/131NATURE,TRENDS,CAREERSNatureandpurposeofconsultingRecenttrendsandcurrentchallengesStaffandcareerpathsinconsulting2023/1/132RECENTTRENDSANDCURRENTCHALLENGESChangingcustomerexpectationsIncreasingmarketpoweroftheTOPconsultingcompaniesEffectiveusageofinformationtechnologySplitTax/Auditing-ConsultingStrategicAlliancesandStart-upPartnershipsNewsuppliersentertheconsultingmarketExpansionofthewellknownconsultingcompaniesITconsultingbytraditionalconsultingcompaniesGet&retaintherightpeopleHowtofacethecurrentchallenges2023/1/133"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–SOMESTATEMENTS2023/1/134CHANGINGCUSTOMEREXPECTATIONSCustomerexpectrealaddedvalueStandardImplementationsaredecreasingwhileindividualend-to-endsolutionbecomemuchmoreimportantUnsuccessfulERPimplementationsinthe90smadethecustomermoreawareofrisksandchallenges-->CustomeraremuchmoresensitivetowhattheygetfortheirmoneyResultsinnewpaymentschemeslike:Fixedprice(especiallydonebysmaller/start-upcompanies)RiskandrewardsharingEquitypaymentPaymentintermsof%-ageofactualvalueaddedOntimedeliveryclausesincontract2023/1/135INCREASINGMARKETPOWEROFTHETOP20CONSULTINGCOMPANIESFacts40TOPConsultingCompaniesincreasedtheirmarketshareinGermanyfrom42to45%AveragegrowthrateoftheTOPPlayer:~19,5%/p.a.SmallerConsultingcompanies:~4,0%/p.a.Acquisitionsofsmallerandmid-sizedconsultingfirmsbythelargercompaniesinordertodiversifytheirmarketofferPlannedpartlyIPOofKPMG,ArthurD.Little,AndersenConsultingalsoinvestigatingIncreasingmarketpowerandinfluencethroughventures,e.g.-ACVenture-McKinsey’s““NewVenture”-RolandBerger&bmp2023/1/136SPLITTAX/AUDITING––REASONSANDCONSEQUENCESReasonsU.S.SecurityandExchangeCommission:

CriticalifConsultingCompaniesadviceclientsthatareauditedbythesamecompanyHighermarginsandgrowthratesinconsultingInabilityforconsultingparttoraisemoneybygoingpublicaslongasConsequencesConsultingcompaniescanandwillgopublic(e.g.KPMG)NomorelegalrestrictionsforconsultingcompaniestoadviceothercompaniesDifferentiationprocesswillaccelerate(increasingmarketingactivities)Repositioningneeds2023/1/137SPLITTAX/AUDITING-CONSULTINGExamplesAndersenConsultingvs.ArthurAndersen:ArbitrationDecisioninordertoallowAndersenConsultingtosplitfromArthurAndersenKPMG:IPOofKPMGConsultingBusinessCiscotook20%stakeAnother20%fortheaccountingpartHewlettPackardinterestedtobuyPriceWaterhouseCoopers’’ManagementandITConsultingpartCapGeminitobuyconsultingpieceofErnst&Young2023/1/138STRATEGICALLIANCESOFACCENTURE2023/1/139ALLIANCESANDPARTNERSHIPS:SOMEEXAMPLESCapGemini:-SiebelSystems-IBM-SunMicrosystems-MicrosoftKPMG:-Compaq-Cisco-Microsoft-JDEdwardsCSC:-Peoplesoft-Broadvision-IBM-Lucent-NokiaEDS:-SunMicrosystems-SAP-Oracle-Cisco2023/1/140NEWCOMPETITORSENTERTHECONSULTANTMARKETNewSuppliersentertheconsultingmarketHardwaremanufacturers-HPalreadyincreasedtheirnumberofin-houseconsultantsto6.000+potentialPriceWaterhouseCooperspart““CellNetwork/Mandator”Building??Inhouse-Consultingcapabilities““-Siemens(SiemensBusinessServicesprovidingERP,CRMimplementations)-SAPSystem-DeutscheTelekombuyingmajoritystakeinDebisSystemhausFinancialInstitutionsandTelecommunicationcompanies2023/1/141EXPANSIONOFWELLKNOWNCONSULTINGCOMPANIESExpansionoftheTOPconsultingcompaniesthroughM&A,alliances,venturesandstrategicpartnerships.ChancetoexpandbusinessandopeningnewmarketsAfterM&A,differentiationbecomescritical,thereforehighadvertisingbudgetsIPOStrategies:RaisemoneyforeCommercestrategyVentureCapitalfundsToattractpeople(competitivesalariesandpaymentstructures)Examples:CapGeminiacquiringErnst&YoungCapGeminibuyingSD&MCSCPloenzketobuyKPMGFrance2023/1/142ITCONSULTINGATTHEESTABLISHEDCONSULTINGCOMPANIESAseCommerceisacknowledgetobeoneofthekeybusinessdrivers,alsothetraditionalconsultingcompaniestrytogetintoitStrategycompanieslikeBoozAllenHamiltonetc.tolauncheCommercecentersandventurecapitalfirmsMcKinseyhasbeenaccusedhavingoversleptthee-Commerceage;nowtryingtoworkonthatsubjectthroughincreasingalliances&venturesintheeBusinessAftersplitfromAndersenConsulting,ArthurAndersenwillgetmoreintoITconsulting2023/1/143IPOinordertoattractpersonnelUntilbackdropofDot.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.GETANDRETAINTHERIGHTPEOPLE2023/1/144"WINNINGTHEWARFORTALENT"KeyfactorsofsuccessImageInterestingtasksPersonaldevelopmentBalancedlifestyleInternational

atmosphere1.DaimlerChrysler2.Lufthansa3.McKinsey4.BMW5.KPMG6.BostonConsulting7.DeutscheBank8.Siemens9.SAP10.AccentureAttractiveemployeesFocus30.August19992023/1/145HOWTOFACETHECURRENTCHALLENGESNewstrategiesBrandingCampaignsPersonneldevelopmentconceptsEfficientKnowledgeManagementAccuratePlanningChangeasChanceSynchronizethekeysuccessfactors:-people

-process

-strategy-technology2023/1/146NATURE,TRENDS,CAREERSNatureandpurposeofconsultingRecenttrendsandcurrentchallengesStaffandcareerpathsinconsulting2023/1/147STAFFANDCAREERPATHSPartnerAssociatePartnerManagerConsultantAnalystDirectorPrincipleAssociatePrincipleProjectManagerConsultantAccentureMcKinsey2023/1/148LeadworkteamsFacilitateTeam-MeetingsSystemsdesignClientpresentationsLeadsubprojectsConsultantAnalystProposalsForecastingDevelopandexecuteclienttrainingClientinterviewsProgrammingSystemsDocumentationParticipatesinproblemsolvingRecommendsandimplementssolutionsDefinesuserrequirementsResearchesnewandexistingtechnologyProvidesproductionsupportTestssoftwareReviewsworkofpeersROLESANDRESPONSIBILITIES:EXAMPLES2023/1/149PartnerManagerInterfacewithclientseniormanagementLeadclientmeetingsDevelopnewbusinessDevelopmanagementteamShapeandimpacttheFirmAttainOwnershipintheFirmROLESANDRESPONSIBILITIES(CTD.)LeadclientmeetingsManageprojectsLeadanddevelopprojectteam2023/1/150CONSULTING:ALWAYSSTAYREALISTICALLYAconsultant,managerandapartnerfromaConsultingcompanyarewalkingthroughaparkontheirwaytolunchwhentheyfindanantiqueoillamp.TheyrubitandaGeniecomesoutinapuffofsmoke.TheGeniesays,"Iusuallyonlygrantthreewishes,soI'llgiveeachofyoujustone."Mefirst!Mefirst!"saystheconsultant."IwanttobeintheBahamas,drivingaspeedboat,withoutacareintheworld."Poof!she'sgone.Inastonishment,"Menext!Menext!'saysthemanager,"IwanttobeinHawaii,relaxingonthebeachwithmypersonalmasseuse,anendlesssupplyofpinacoladasandtheloveofmylife."Poof!He'sgone."You'renext,"theGeniesaystothepartner.Thepartnersays,"Iwantthosetwobackintheofficeafterlunch."2023/1/151PERSONSTOSUPPORTYOURPERSONALCAREERPersonalMentorPeerGroupAnnualReviews(upward/downward/sideward)PartnerGroupPracticeLeaders2023/1/152SOMEATTRIBUTESFORGOODCONSULTANTSAmbitiontopermanentlylearnDeterminationtosucceedStrongcommunicationskillsMotivationFlexibilityAgilityApproachableProactiveInnovativeResults-orientedSelfConfidentEntrepreneurialthinking2023/1/153BENEFITSANDCHALLENGESOFCONSULTINGBenefitsofConsultingLearningnewindustriesEarningmoreincomeFlexiblecontractlengthsPossiblefulltimeopportunitiesLessofficepoliticsLearningnewtechnicalskillsMeetingnewpeopleChallengesofConsultingNotbeinga"full-timer"Possibleadditionaltravelorcommutetime2023/1/154PROJECTWORKPLAN:ONEEXAMPLEFORATHREE-MONTHPROJECTEXAMPLEALTEFOLIEVERWENDEN2023/1/155YOUKNOWTHATYOUHAVEBEENTOOLONGACONSULTANTWHEN……youfeelnakedwithoutalaptophangingfromyourleftshoulder;youstartthinkingthatlifeintheUSNavySubmarineCorpswouldgiveyoumoretimeathome;youareupsetwhenyoucomehomeonFridaynightandthelightsaren'ton,thebedisn'tturneddown,andtherearenochocolatesonyourpillow;"vacationing"isspendinganentireweekendinyourownhome;youhaveseenmoremoviesat35,000feetthanyouhaveatyourlocalmovietheaterbeforestartingthecar,youinsistontellingeveryonewheretheemergencyexitsare;beforestoppingthecar,youinsistthateveryonestayseateduntilthefastenseatbeltssignisoff;instantcoffeetastesgood;you'vebeenstayinginthesamehotel,youinstinctivelycallit"home";yousay"Whoopee!Halfday!"whenyouleaveat10:00PM;2023/1/156AGENDAIntroduction/ExpectationsExampleconsultantcompanyConsulting:Nature,Trends,CareersSelectedMethods(frameworks)Research(somebasics)Graphics(fromdatatochart)2023/1/157AGENDAIntroduction/ExpectationsExampleconsultantcompanyConsulting:Nature,Trends,CareersSelectedMethods(frameworks)Research(somebasics)Graphics(fromdatatochart)2023/1/158AGENDAIntroduction/ExpectationsExampleconsultantcompanyConsulting:Nature,Trends,CareersSelectedMethods(frameworks)Research(somebasics)Graphics(fromdatatochart)2023/1/1599、靜靜夜夜四四無(wú)無(wú)鄰鄰，，荒荒居居舊舊業(yè)業(yè)貧貧。。。。1月月-231月月-23Sunday,January1,202310、雨雨中中黃黃葉葉樹(shù)樹(shù)，，燈燈下下白白頭頭人人。。。。21:26:1921:26:1921:261/1/20239:26:19PM11、以我獨(dú)獨(dú)沈久，，愧君相相見(jiàn)頻。。。1月-2321:26:1921:26Jan-2301-Jan-2312、故人江江海別，，幾度隔隔山川。。。21:26:1921:26:1921:26Sunday,January1,202313、乍乍