Lecture–ManagementConsulting:AnIntroduction

AGENDAIntroduction/ExpectationsExampleconsultantpanyConsulting:Nature,Trends,CareersSelectedMethods(frameworks)Research(somebasics)Graphics(fromdatatochart)AGENDAIntroduction/ExpectationsExampleconsultantpanyConsulting:Nature,Trends,CareersSelectedMethods(frameworks)Research(somebasics)Graphics(fromdatatochart)OurMission:Helpingourclientscreatetheirfuture.ACCENTURE:MISSIONANDVISIONOurVision:

Tobeoneoftheworld'sleadingpanies,bringinginnovationstoimprovethewaytheworldworksandlives.OneGlobalFirm–Acttoenhancethecollectivevaluesoftheglobalpartnership,whilesustaininglocalculture.Stewardship–Thinkfutureoriented;actandinvesttobuildastrongerfirmfortomorrow.Integrity–Actwithopennessandhonesty.Always.RespectfortheIndividual–Treateachpersonaswewouldliketobetreated.QualityClientService–Understandandmeetclientexpectations100percentofthetime.BestPeople–Arehighlypetentandmakeamitmenttoexcellence,teamwork,andthesuccessofourclients.ACCENTURE:COREVALUES1989

某著名企業(yè)ConsultingbesaseparatebusinessunitfromArthur某著名企業(yè)$1.6billion21,400employees1991Horizon2000Initiativetodevelopmissionandstrategicplan$2.3billion25,000personnel1993某著名企業(yè)Consultingissuesitsfirstannualreport$2.9billion27,000employees1997某著名企業(yè)Consultingcreatesaglobalnetworkofmunications-focusedsolutioncentersinanefforttosetthestandardforspeedandqualityofperformance$6.6.Billion53,000employees1998$8.3billion65,000employees2000JoeForehandbesManagingPartnerandintroducesthe100DayPlan某著名企業(yè)ConsultingwinsarbitrationagainstArthur某著名企業(yè)01.01.01Accenture,formerlyknownas某著名企業(yè)ConsultingACCENTURE:IMPORTANTMILESTONESACCENTUREGLOBALLYEmployees: over65,000Countries: 48Revenue‘99: 8,9BillionUSDClients: ThevastmajorityofFortune30mostprofitableglobalpublicpaniesNearly75%ofFortune200globalpanies100ofthemostsignificant“IndustryStandard”InternetpaniesACCENTURE:DEVELOPMENTOFREVENUES(U.S.Billions)1993$2,8761994$3,4521995$4,2241996$5,3021997$6,6471998$8,3ACCENTURE:GLOBALPERSONNELGROWTH199753,426199644,801199538,027199432,711199865,134AmericasEMEAIAsia/

PacificHamburgFrankfurtMünchenDüsseldorfBerlinWienZürichASG–

Austria,Switzerland,

GermanyACCENTUREINASG2,750Employees7OfficesRevenues:1,24Mrd.DMGlobalpetitiveOverviewStrategyDigitalEquipment某著名企業(yè)某著名企業(yè)ConsultingOrganizationProcessesInformation

TechnologyBusinessProcessManagement(Outsourcing)CapGeminiSogetiUNISYS某著名企業(yè)puterSciencesEDSBostonConsultingBoozAllenACCENTURE:MARKETUNITSFinancialServicesBanking HealthServicesInsuranceProductsAutomotive,IndustrialEquipment,Travel&TransportationConsumer&PharmaceuticalProductsRetailmunications&HighTechmunicationsElectronics&HighTechMedia&EntertainmentResourcesChemicals Energy&NaturalResourcesUtilities GovernmentACCENTURE:SAMPLECLIENTLISTAGENDAIntroduction/ExpectationsExampleconsultantpanyConsulting:Nature,Trends,CareersSelectedMethods(frameworks)Research(somebasics)Graphics(fromdatatochart)NATURE,TRENDS,CAREERSNatureandpurposeofconsultingRecenttrendsandcurrentchallengesStaffandcareerpathsinconsultingNATUREANDPURPOSEOFCONSULTINGNatureandPurposeofConsultingDefinitionof?Consulting“BrieflookintohistoryDifferenttypesofconsultingConsultingmarketoverviewConsultant:ProfessiondescriptionConsultingstrategiesShortoverviewovertheconsultingprocessReasonsforclientstohireexternalconsultantsGuidelinesfortheclient-consultantrelationshipDEFINITIONOFCONSULTINGDefinitionofConsulting?Togiveexpertadviceorprovideexpertcounsel.“(IKS)?Consultingprovidesvaluebydiagnosing,strategizing,designing,constructing,integrating,operating,orimplementingsolutions.Consultingutilizesrelevantknowledge,basedonintegrityandobjectivity,inbothexpertandadvisoryroles.“(ConsultingServicesTeam)?Consultingiswhateveraconsultantdoes."(CambridgeputerServices)CONSULTINGHISTORY(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.某著名企業(yè)startshisConsultingfirm1934 Urwick,Orr&Partners:Managementistlehr-undlernbar1939 PeterDrucker?Theendofeconomicman“1947 FoundationoftheTravistockInstituteCONSULTINGHISTORY(2/2)Brieflookintohistory1949 RobertWiener?Cybernetics“1950 MarvinBowerbesCEOofMcKinseyandstartswith theexpansion1951 FirstDeming-AvardforQualityinJapan1954 FoundationoftheBDU1954 PeterDrucker:?Thepractiseofmanagement“1957 Argyris:?PersonalityandOrganization“1959 Herzberg,Mausner,Snyderman:?Themotivationtowork“1960 McGregor:?Thehumansideofenterprise“,Maslow:?Motivation andPersonality“1963 FoundationofBostonConsultingGroup1965 FoundationofthefirsttwoBusinessUniversitiesinGreatBritainEVOLUTIONOFCONSULTINGFOCUS1980 1985 1990 1995 2000 2005

QualityManagementLeanManagementRe-engineeringERPprojectsWebTechnologyEmerceCRMMmerceStrategyTYPESOFCONSULTINGDifferenttypesofmanagementconsultingStrategyAdviceandcounselaboutcorporate-levelorbusiness-unitstrategiesOperationsManagementFiguringouthowtoimprovetheefficiencyorproductivityofhowabusinessworksHumanResourcespensationandbenefitsadvice,attracting,motivating,andretaininghighqualityemployeesInformationTechnologyDesign,implement,testandroll-outnewITorinstallandoperatemassivepackagedsoftware"solutions“.WorldwideProfessionalServicesMarket$billions$250$475$45$85$25$5$0$100$200$300$400$500$600199019992003STRATEGYVS.IT-CONSULTING18%annual

growthPureStrategyIT-relatedServiceGERMANCONSULTINGMARKETOVERVIEWGermanConsultingmarketoverview1998: 62.500Management-,Personnel-andIT-Consultants(BDUe.V.) 13.200Consultingpanies

Totalrevenues:18,8bn.DM(BDUe.V.)

1999: 64.500Management-,Personnel-andIT-Consultants(BDUe.V.) 14.300Consultingpanies

Totalrevenues:21,3bn.DM(BDUe.V.)TOP20CONSULTINGPANIESWORLDWIDETOP30CONSULTINGPANIESINGERMANYWHEREDOYOUWANTTOGOTODAY?

AscenefromLewisCarroll's"Alice'sAdventuresInWonderland",whenAliceaskstheCheshirecatfordirections,speaksvolumesaboutplanningwhereanorganizationwantstobeinthefuture."Wouldyoutellme,please,whichwayIoughttogofromhere?"asksAlice.

"Thatdependsagooddealonwhereyouwanttogetto,"saidtheCat.

"Idon'tmuchcarewhere."saidAlice.

"Then,itdoesn'tmatterwhichwayyougo."saidtheCat.REASONSTOHIREEXTERNALCONSULTANTS(1/2)Reasonsforclientstohireexternalconsultants(1):Existingpaniesarenotreadyforthepaceglobalizationandvanishingmarketbarrierstheyface->needConsultantswithbroadmarket/industryknowledgeIncreasingM&Aactivities->HighplexityoftransactionsandtasksrelatedtoPostMergerIntegrationChallengesofthehightechenvironment:employeesarewhollyoccupiedwithdailyworkanddon’thavethetimetothinkaboutinnovationsChangingworkingenvironmentnecessitatecreativeandup-to-dateHRManagementDeregulationenablednewpaniestoenterthemarket.Inordertopositionandpeteagainstformermonopoliststheyneedindustryrelatedconsultingexperience(+otherwayround,ex-monopoliststrytodefendthemselvesagainstnewmarketentriesusingtheknowledgeofexternalpanies)REASONSTOHIREEXTERNALCONSULTANTS(2/2)Reasonsforclientstohireexternalconsultants(2):Consultantshaveaccesstoinformationonatrulyglobalbasis(KnowledgeExchange)Widespreadacceptanceofusingconsultantstogainoutsideexpertise.Rapidtechnologicalchange.Movementtoenterprise

widesolutions.Lackofin-houseexpertiseinProcesses,technologies,industrybestpractices,andprojectmanagement.BENEFITSOFUSINGCONSULTANTS

Subjectmatterexpert:Aconsultantwillsavetimeandmoneybyarrivingtoasolutiontotheclient‘sneedsatafasterpacebecauseofpastextensiveknowledgeandexperienceindealingwithotherbusinessowners.Objectivepointofview:Aconsultantwillbringarefreshingoutsidepointofviewtotheclient‘spany,whichwillpin-pointexistingproblemsorreachfastersolutions.Educate,inform:Agoodconsultantwilleducateandinformtheclient

asthetaskispleted.Shareinformationaboutindustryandpetition:Thisisessentialtoreachingpanygoals.Assistwithstrategicplanningwhichwillhelpreachpanygoalsfasterandeasier.OfferinnovativeideasWORKANDLIFESTYLECHARACTERISTICSWorkatclientsiteWorkinteamenvironmentWorkwithavarietyofclientsacrossindustriesAssessclientbusinessandtechnicalchallengesDevelopsolutionstomoveclientforwardExtensivetravelingEnrichinglearningexperienceCyclicalovertimeTravelVarietyofresponsibilitiesWorkwithtechnologyTOP10WAYSTOKNOWYOUAREDATINGANCONSULTANT1.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."NATURE,TRENDS,CAREERSNatureandpurposeofconsultingRecenttrendsandcurrentchallengesStaffandcareerpathsinconsultingRECENTTRENDSANDCURRENTCHALLENGES

ChangingcustomerexpectationsIncreasingmarketpoweroftheTOPconsultingpaniesEffectiveusageofinformationtechnologySplitTax/Auditing-ConsultingStrategicAlliancesandStart-upPartnershipsNewsuppliersentertheconsultingmarketExpansionofthewellknownconsultingpaniesITconsultingbytraditionalconsultingpaniesGet&retaintherightpeopleHowtofacethecurrentchallenges"CTOsandothere-businessstrategistsdonotwanttohearmetellthemIcanhelpWeb-enabletheirbusiness.Thatisnotenough.TheywanttoknowhowIcanhelpthemtransformtheirbusiness."

--ChuckBurns,globalseniorvicepresident,services,KPMG"CTOshavemorechoicesthaneverbeforewhenitestoselectingaconsultant.Wegointobidsnowwherewemaypeteagainstoneofthegiant,BigFivefirms...andeven,insomecases,anadvertisingormarketingagency."

--ScottLochridge,principal,strategysolutionsgroup,DiaLogos"Thedaysofblackmagicareover,Consultantscannolongergetawaywithjustwritingawhitepaperfortheclientandsaying,'OK,nowyoudowhatIsay.'”

--JoseCampos,presidentofRapidinnovationCHANGINGCUSTOMEREXPECTATIONS–SOMESTATEMENTSCHANGINGCUSTOMEREXPECTATIONS

CustomerexpectrealaddedvalueStandardImplementationsaredecreasingwhileindividualend-to-endsolutionbemuchmoreimportantUnsuccessfulERPimplementationsinthe90smadethecustomermoreawareofrisksandchallenges-->CustomeraremuchmoresensitivetowhattheygetfortheirmoneyResultsinnewpaymentschemeslike:Fixedprice(especiallydonebysmaller/start-uppanies)RiskandrewardsharingEquitypaymentPaymentintermsof%-ageofactualvalueaddedOntimedeliveryclausesincontractINCREASINGMARKETPOWEROFTHETOP20CONSULTINGPANIESFacts40TOPConsultingpaniesincreasedtheirmarketshareinGermanyfrom42to45%AveragegrowthrateoftheTOPPlayer:~19,5%/p.a.SmallerConsultingpanies:~4,0%/p.a.Acquisitionsofsmallerandmid-sizedconsultingfirmsbythelargerpaniesinordertodiversifytheirmarketofferPlannedpartlyIPOofKPMG,ArthurD.Little,某著名企業(yè)ConsultingalsoinvestigatingIncreasingmarketpowerandinfluencethroughventures,e.g.

-ACVenture

-某著名企業(yè)’s“NewVenture”

-RolandBerger&bmp

SPLITTAX/AUDITING–REASONSANDCONSEQUENCESReasonsU.S.SecurityandExchangemission:

CriticalifConsultingpaniesadviceclientsthatareauditedbythesamepanyHighermarginsandgrowthratesinconsultingInabilityforconsultingparttoraisemoneybygoingpublicaslongastheyarepartofauditingpaniesConsequencesConsultingpaniescanandwillgopublic(e.g.KPMG)NomorelegalrestrictionsforconsultingpaniestoadviceotherpaniesDifferentiationprocesswillaccelerate(increasingmarketingactivities)RepositioningneedsSPLITTAX/AUDITING-CONSULTINGExamples某著名企業(yè)Consultingvs.Arthur某著名企業(yè):

ArbitrationDecisioninordertoallow某著名企業(yè)ConsultingtosplitfromArthur某著名企業(yè)KPMG:IPOofKPMGConsultingBusinessCiscotook20%stakeAnother20%fortheaccountingpartHewlettPackardinterestedtobuyPriceWaterhouseCoopers’ManagementandITConsultingpartCapGeminitobuyconsultingpieceofErnst&YoungA.T.KearneyandEDSSTRATEGICALLIANCESOFACCENTUREALLIANCESANDPARTNERSHIPS:SOMEEXAMPLES

CapGemini: -SiebelSystems

-某著名企業(yè)

-SunMicrosystems

-MicrosoftKPMG: -paq

-Cisco

-Microsoft

-JDEdwardsCSC: -Peoplesoft

-Broadvision

-某著名企業(yè)

-Lucent

-Nokia EDS: -SunMicrosystems

-SAP

-Oracle

-CiscoNEWPETITORSENTERTHECONSULTANTMARKETNewSuppliersentertheconsultingmarketHardwaremanufacturers

-HPalreadyincreasedtheirnumberofin-houseconsultantsto6.000

+potentialPriceWaterhouseCooperspartInternetserviceproviders,e.g.PixelparkbuyingtheSwedishConsultingfirm“CellNetwork/Mandator”Building?Inhouse-Consultingcapabilities“ -Siemens(SiemensBusinessServicesprovidingERP,CRM implementations)

-SAPSystem

-DeutscheTelekombuyingmajoritystakeinDebisSystemhausFinancialInstitutionsandTelmunicationpaniesEXPANSIONOFWELLKNOWNCONSULTINGPANIES

ExpansionoftheTOPconsultingpaniesthroughM&A,alliances,venturesandstrategicpartnerships.ChancetoexpandbusinessandopeningnewmarketsAfterM&A,differentiationbescritical,thereforehighadvertisingbudgetsIPOStrategies:RaisemoneyformercestrategyVentureCapitalfundsToattractpeoplepetitivesalariesandpaymentstructures)Examples:CapGeminiacquiringErnst&YoungCapGeminibuyingSD&MCSCPloenzketobuyKPMGFranceITCONSULTINGATTHEESTABLISHEDCONSULTINGPANIES

Asmerceisacknowledgetobeoneofthekeybusinessdrivers,alsothetraditionalconsultingpaniestrytogetintoitStrategypanieslikeBoozAllenHamiltonetc.tolaunchmercecentersandventurecapitalfirmsBybuyingsmallerpaniesandpartneringtheyareabletoprovideafullimplementationservice,e.g.Bainalliancewithi2andOracle某著名企業(yè)hasbeenaccusedhavingoverslepttheemerceage;nowtryingtoworkonthatsubjectthroughincreasingalliances&venturesintheeBusinessAftersplitfrom某著名企業(yè)Consulting,Arthur某著名企業(yè)willgetmoreintoITconsultingIPOinordertoattractpersonnelUntilbackdropofDotsandthestockmarket,tendencyofleadingpersonneltoleavetraditionalpaniestojoinStart-ups:CambridgeTechnologylostoverthelastyearmanytopmanagers(i.e.FounderandCEO,CFO,Generalcounsel,HeadofitsE-Businessunit,ManagingdirectoroftheCambridgeTechnologyCapitalventurefund)mostlytosmallhigh-techpanies.DeanHawkins,formerCFOofAdidastobeCFO@booJoeGalli,VicePresidentBlack&DeckertojoinAmazonasmemberoftheboardHeinerRutt,chairman@BostonConsultingGrouptobepresidentatProx某著名企業(yè)Germanyhasabout3.000openITpositionsfor2001,Hewlett-Packardtolookfor500ITspecialists,PricewaterhouseCoopers300andSiemens1.500,某著名企業(yè)Consultingwith1.100openpositionsinASG.GETANDRETAINTHERIGHTPEOPLE"WINNINGTHEWARFORTALENT" Keyfactorsofsuccess Image Interestingtasks Personaldevelopment Balancedlifestyle International

atmosphere1.DaimlerChrysler2.Lufthansa3.某著名企業(yè)4.BMW5.KPMG6.BostonConsulting7.DeutscheBank8.Siemens9.SAP10.Accenture AttractiveemployeesFocus30.August1999HOWTOFACETHECURRENTCHALLENGES

NewstrategiesBrandingCampaignsPersonneldevelopmentconceptsEfficientKnowledgeManagementAccuratePlanningChangeasChanceSynchronizethekeysuccessfactors:

-people

-process

-strategy

-technologyNATURE,TRENDS,CAREERSNatureandpurposeofconsultingRecenttrendsandcurrentchallengesStaffandcareerpathsinconsultingSTAFFANDCAREERPATHSPartnerAssociatePartnerManagerConsultantAnalystDirectorPrincipleAssociatePrincipleProjectManagerConsultantAccenture某著名企業(yè)LeadworkteamsFacilitateTeam-MeetingsSystemsdesignClientpresentationsLeadsubprojectsConsultantAnalystProposalsForecastingDevelopandexecuteclienttrainingClientinterviewsProgrammingSystemsDocumentationParticipatesinproblemsolvingRmendsandimplementssolutionsDefinesuserrequirementsResearchesnewandexistingtechnologyProvidesproductionsupportTestssoftwareReviewsworkofpeersROLESANDRESPONSIBILITIES:EXAMPLESPartnerManagerInterfacewithclientseniormanagementLeadclientmeetingsDevelopnewbusinessDevelopmanagementteamShapeandimpacttheFirmAttainOwnershipintheFirmROLESANDRESPONSIBILITIES(CTD.)LeadclientmeetingsManageprojectsLeadanddevelopprojectteamCONSULTING:ALWAYSSTAYREALISTICALLYAconsultant,managerandapartnerfromaConsultingpanyarewalking

throughaparkontheirwaytolunchwhentheyfindanantiqueoillamp.TheyrubitandaGenieesoutinapuffofsmoke.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."PERSONSTOSUPPORTYOURPERSONALCA