June-July ‘11
The E-Magazine of CRUX, XLRI
Issue 19
CREST Consulting Research
Entrepreneurship Strategy
HR Consulting– the Good, the Bad, and the Ugly
Mckinsey on Mckinsey Role of Research for Management
From risk to reward
Engaging a Consultant
From the Editor’s Desk...
CRUX With the spirit of 'Magis' and a motto of ever great-er-ever better, CRUX - Consulting and Research Undertaking at XLRI brings to you a new edition of CREST. CRUX seeks to promote and hone basic consulting skills at XLRI and within management student com-munity at large. It offers consultancy and research services to interested start-ups, organizations and voluntary bodies; leverag-ing upon XLRI’s capable student base, access to knowledge resources and faculty expertise. It seeks to partner with consultan-cy and research firms for on and off campus brand-ing with a view of develop-ing long-term fruitful rela-tions between XLRI and the world of consultancy.
CREST Jun-July 2011
Editorial Team
Joymalya
Gaurav Jain
Subid Chakraborty
T H I S I S S U E . . .
Cover Story Page 3
HR Consulting– the Good, the Bad, and the Ugly
Features
From risk to reward | Page 3 Role of Research in Management | Page 5
Mckinsey on Mckinsey | Page 7 Engaging a consultant | Page 11
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The advent of a new academic year brings a new CREST in which we try to de-code some more mysteries and explore new dimensions of Consulting. Our cover story ‘HR Consulting – The Good, the Bad and the Ugly’ by Roy Edding-ton-Charles where he recounts his experiences as an HR consultant and tells us in this article about the various stigmas and stereotypes associated with HR con-sulting . The next article “From Risk to Reward” emphasizes that all parties in the con-sulting supply chain are more risk averse, with clients looking for a quick and tangible return on their investment and consulting firms concerned about credit risk and liability requirements. We have also included in this issue Mahim Mongia’s analysis on why Mckinsey is the No. 1 Management Consulting Firm by using Mckinsey’s 7S framework. This article was the winning article in CREST’s ‘Writing Spree’. The final article ‘Engaging a Consultant’ focuses on the different phases of en-gagement between a consultant and a client
The Editorial Team would love to get feedback from you on [email protected]
Happy Reading!
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C O N S U L T I N G
HR Consulting– the Good, the Bad, and the Ugly Roy Eddington-Charles is the President of an independently launched Consul-tancy which operates in the areas of IT, HR and Education. Previously he has conducted corporate training programs by invitation and specializes in lead-ership training. When we talk about HR Consulting, most people think we trawl the net for re-cruits, or headhunt, or walk surreptitiously into companies and yank their em-ployees for competitors. Once, I was visiting a friend at his office. The manager heard that I run an HR firm and got rather nervous. He told the friend to get me to leave as soon as possible! Older professionals remember HR people from the Rajesh Khanna and Amit-abh movies: the chaps who deceive workers into working for less, who pre-tend to be the workers‘ best friend while actually helping the company‘s bot-tom-line. The worst moments are when you are testing, training or guiding an executive much older than you – and he thinks he knows himself and his management style better than you do, better than your tests can show. It is so frustrating; a colleague once ran out of the room, closed the bathroom door and screamed. But finally she did get the executive to come around. The reality of HR consulting is not usually so sinister. I still get mail from sen-ior executives I trained long ago – sometimes thanking me, sometimes telling me about a daughter‘s job or son‘s marriage, but usually asking me for advice. An HR trainer is often seen as a counselor you can turn to at professional cross-roads. That‘s very satisfying. Remember, also, the value of HR expertise in an age of mergers and acquisi-tions. Who can forget the tension in a company recently been gobbled up whole-sale by another group: ―Will my profile change? Will I lose status among new colleagues? Will I be out on the streets with a pink slip? Finding best-fits, soothing ruffled feathers, being tough when necessary… The HR pro-fessional seems a cross between a surgeon, a top executive and a hand-holding clinical psychologist! And, of course, when you walk into that training hall, and a few hundred voices roar a greeting, and a few hundred eyes focus entirely on you, and you feel the professional trust of a bunch of people who know what they are doing – well, it is a high no drug can deliver. Go ahead: the consulting field is vast, sometimes threatening, sometimes hor-rifically competitive, but always rewarding. Yes, and recall the freakishly big bucks too. :-)
“Once, I was visit-ing a friend at his office. The manag-er heard that I run an HR firm and got rather nervous. He told the friend to get me to leave as soon as possible!”
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C O N S U L T I N G
From Risk to Reward
Source: From Risk to Reward: Managing Risk in Consulting Relationships, MCA report,
June 2009.
Globalization and technology have undoubtedly created new opportunities for
consulting and outsourcing firms, their clients and their suppliers. However,
they have also given rise to a whole new set of risks, which go beyond straight-
forward performance management. Loss of confidential data, expensive battles
over patents and copyrights and service breakdown due to force majeure, are
all examples of a failure to manage risk effectively, which can be at best expen-
sive and at worst disastrous for the organizations concerned. These risks need
to be firstly understood in a global context and then managed appropriately for
each authorization through due diligence, contractual frameworks and insur-
ance.
Besides the “upstream” relationship with the client, consulting firms often find
themselves managing other suppliers on a project, thus creating a
“downstream” contractual and management relationship. Implementation pro-
jects may involve clients, consultants and suppliers in multiple countries over
many years. In response to the new risks, the procurement process has become
even more rigorous, lengthening the sales cycle for suppliers and reducing the
personal element of business negotiations. Many authorization are centralizing
both their procurement and risk management functions to deal with these chal-
lenges in a more integrated way. Consulting firms need to understand these
changes in procurement and supplier selection in order to differentiate them-
selves speed up the business pipeline and secure longer and more profitable
contracts. There is general agreement among consulting firms that the nature of
the risks has changed in recent months, largely as a result of the economic
downturn.
“There are three dimensions of risk – the risk to us as a company, the risk to our
client and the contract risk – the extent to which the contract reflects both our
risks,” says Mark Goodridge, ER Consultants. In a survey conducted by MCA con-
sulting among eminent consulting firms, lack of client engagement was consid-
ered by far the most significant risk for most consulting firms with 60 respond-
ents of the 270 people surveyed selecting this as their top concern. Lack of clari-
ty around responsibilities and objectives was ranked the second biggest risk,
with availability of consultants in third place. It is perhaps not surprising that
low client engagement and lack of clarity around responsibilities are perceived
as the greatest threats to consulting projects. Much of the work involves funda-
mental change within client authorization and without sufficient sponsorship at
the right levels this is unlikely to succeed. Responsibilities and objectives should
be clearly set out in the contract, but these can change over time and ongoing
project stewardship is needed to ensure that everybody understands what is
expected of them.
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C O N S U L T I N G
From Risk to Reward (contd.)
Reputation is always important for consulting firms, but particularly so in the current buyers’ market. The biggest risk for many consulting firms is reputa-tional. Consultancy projects are now more visible in the outside world than they used to be. Many consulting reports find their way into the media and public domain. How are these risks managed? At Deloitte every opportunity is submitted to a Take On Process, an automated web-based tool, which is completed by the partner responsible for the project. The results determine the degree of risk and the level of authorization required. At least two management partners sign off each project, with others involved should there be a greater than normal risk. There is also a Deal Review Board for high risk projects, which are also subject to Quality Assurance Reviews con-ducted by specially trained partners. PricewaterhouseCoopers (PwC) completes a risk assessment for every new cli-ent before starting work on a project. This Client Acceptance Procedure consid-ers risk under a number of headings: sponsorship by the client, nature of the work, external factors, resourcing, subcontractors, and stakeholders. Turner and Townsend has a structured risk evaluation process, which looks firstly at the contractual obligations, such as the scope, terms and conditions. There is then a commercial risk assessment, which evaluates the client’s liquidity and payment track record. Lastly, there is a review of the personalities involved and how the relationship is going to work. Any risk is highlighted and reviewed monthly by an independent senior MD. There is also a quarterly review with the client, which is scored. The Change Management Group uses a RAID (Risk, As-sumptions, Issues and Dependencies) matrix, which is shared with the client. In many organizations, risk management is no longer a discrete business function; indeed it works best when it is applied throughout a project by a cross-functional team. Balancing Risk and Reward Even before the recent economic downturn the consulting sector was witness-ing a gradual move away from fees for time and materials to fixed price projects and even incentivized fees or payment by results. With an increased focus on the bottom line, clients are much keener to link payment to specific outcomes and, where possible, to a tangible return on investment, but many are nervous about paying a premium for this. More clients are willing to consider risk/reward based contracts, and as per many consultants, this shows real maturity in a client – to understand the value they will get from a project and be willing to pay a premium for a better return. Most consulting firms are willing to work in this way, provided the project outcomes can be clearly measured. The new mantra among consultants is to take a risk upfront with lower fees and then build in the reward on delivery. As per them, it helps clients to see how confident the consultant is about delivering. But, some of the consultants find this model highly challenging. As per them, their work is very integrated with the client and it is very difficult to separate the cause and effect.
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R E S E A R C H
Research decides the continuity of any discipline. It is an important link in the life-cycle of any discipline. Take it out of any discipline, and that discipline heads toward extinction. If not extinction, it will be put under the category of endangered species. Research supplies fresh blood to the subject, and pumps energy, vigor and vitality to the discipline. Vibrancy of a discipline is the meas-ure of the quality of research in that discipline. Research resurrects the dead discipline, and pumps fresh blood in it. In fact research is the lifeline of any discipline. Management by its nature is the amalgamation of various disciplines. It incor-porates and blends concepts and theories in itself harmoniously. This is the beauty of management. Its contributing sources are vibrant and live, provid-ing nourishment to its body and soul. Research unearths a fact that was al-ready there but either beyond obvious or blurred from view. The popularity of the Management as the most promising discipline is due to the research work that is continuously refreshing it. It is the ongoing research work that puts this discipline in shape and size. Management has extended its arms to-wards many disciplines so as to measure objects that are obvious and fathom depths that are beyond obvious. Application of knowledge of other disciplines in the management is very chal-lenging. To apply abstract concept, theory and application of other disciplines in the vibrant, practical and ever changing discipline of the management is a challenging one. Only continuous research can bind and act as a true glue and adhesive. Business has crossed national boundaries. Multinationals have transformed into Transnational. Business entities are now in the zone of interdependence, an improved state of independence. A lot is needed to conduct business in cul-turally different setup and exotic lands. Here research comes handy, and at least helps in absorbing cultural awe and shock. Relevant research melts the ice and gives new orientation to the relationship of diverse workforce. Every nation has its past and hence its history and the binding force between the history and the present is the culture - the continuation of values, beliefs, ethics and mannerism. The culture, closely guarded inheritance of any civili-zation, is de-fended, presented and manifested in every possible way. Once a business entity misses on this platform, it may slip in oblivion. Such is the sen-sitivity of the issue; and the role of the research so crucial here. Business needs strategy and the research provides that. In the absence of well re-searched strategy business is bound to lock itself in the suffocating cocoon, only to find itself fossilized. A researcher either feels the need of the research or need in-spires him to research. Organization being dynamic and ever changing its form needs terra firma to stand upon. This firm platform is the findings of the research. An organization dips into the ever refreshing new findings and emerges fresh. Dynamism is sustainable as long as the research is progressing.
“Only continuous research can bind and act as a true glue and adhesive to the various dis-ciplines that man-agement has.”
Role of Research in Management Submitted by : Asif Nazir (IMI)
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R E S E A R C H
The main challenge to the researcher and the organization is the need to un-der-stand interdependence of each other. Each should open arms and em-brace each other. This will open ever expanding realm of the research, and the business will get fresh impetus. It is the research that gives different exposure to the business. It shows the path, and helps in decision making. Various in-struments developed in the past to measure Organizational behavior have helped Organization in select-ing team, understanding its work force, its utili-zation, defining the role of managers and understanding the style of leader-ship and its appropriateness. These are the results of continuous endeavor of researchers. The organizations take maximum advantages of these findings. The beauty of the research is its practical application. Some research is specific and restricted to particular circumstances, and some are generalized and having more breadth. Both types of research are im-portant and relevant. In today’s business environment, challenges are diverse. Challenges bring opportunity, and stretch our ability to see the realms beyond obvious. This is the area and arena that will boost the research and findings. Every day is a new challenge for business houses, and researchers have to come forward to provide tools and instruments that may help the manage-ment in taking decisions. Never before was such a need felt. The survival is at stake. Organizations are expanding and shrinking, rising and falling. What are the facts behind rise and fall of Business Empire? Of course, it is an interesting addition in the genre of the history. There may be traces of causes that helped in building of the busi-ness empire, and there may be possible pitfalls that resulted in their demise. Seeking the meaning is not an easy task. But the role of the researcher is to unearth the past for the betterment of the present. But the organization has to deliver. Managers have to take decision, and the company has to earn profit. In this scenario there must be tested instruments and workable tools to carry out the business effectively and efficiently. The researcher and the business enterprises will have to understand each other’s role. The best conceivable relationship between the two will be that of inter-dependence. Here lies their present and future. Both can meaningfully aid in the growth of knowledge – knowledge helpful in sustaining business and sus-tenance for the discipline called management. Management has borrowed ide-as from many disciplines but treated well those ideas while modifying and ap-plying. It is the power of research that has kept all these disciplines so closely knit. If the trend of the research continues, and the business entity sees it as meaningful tool, the future for both is bright.
“Only continuous research can bind and act as a true glue and adhesive to the various dis-ciplines that man-agement has.”
Role of Research in Management Submitted by : Asif Nazir (IMI)
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C O N S U L T I N G
Think management consulting, and the chances are high that the first name that comes to your mind is McKinsey& Company. Founded in 1926 by James O.McKinsey, it has grown in these 75 years to become a global partnership firm with three of the world’s five largest companies and two-thirds of the for-tune 1000 companies as its clients. It is the preferred employer for the Ivy League management graduates as well as B-School students in India. With some of the greatest management thinkers as its alumni, it has been truly a global think tank that has shaped some of the world’s greatest global organizations. But what makes this consultancy firm so unique? What is its distinct competi-tive advantage and core competence? What if the same strategy principles McKinsey applies to global organizations for analysis, are applied to the firm itself? McKinsey had introduced its 7S framework in the late 70’s as a means to ana-lyze how well an organization is positioned to achieve its objective. This framework holds good even today and is applied widely by McKinsey for con-sulting assignments. Competition is unavoidable in the today’s globalized world, and there are hardly any sectors which have a monopoly. This holds true even for the man-agement consulting field which is dominated by BCG, Bain & Co., Booz Allen & Hamilton, Monitor Group, AT Kearney as the top notch strategy consultants and McKinsey’s key competitors.
What makes McKinsey “McKinsey”?
The question that how well an organization is positioned to achieve its intend-ed strategic objectives has been approached in various ways. Michael Porter’s 5-forces, VRIO Framework, Core Competence and every B-School student’s favorite SWOT are some of the popular approaches which look at internal fac-tors, external factors and combination of these perspectives to analyze an or-ganization. These approaches look for congruence between various aspects of an organi-zation being studied. The main issue which needs attention is that out of a plethora of factor in a complex organization, which are the few which need to be focused upon? McKinsey 7S Framework is one such model which has stood the test of time and persisted while some other models of organizational effectiveness have gone in and out of fashion. When introduced in the late 1970s, the 7-S framework was a turning point in thinking about organizational effectiveness. Featured in the book In Search of Excellence, by former McKinsey consultants Thomas J. Peters and Robert H. Waterman, the framework maps a constellation of interrelated factors that influence an organization's ability to change. These factors are evergreen, sim-ple, easy to remember and effective in understanding an organization.
Mckinsey on Mckinsey ! Mahim Mongia
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C O N S U L T I N G
The basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful. The lack of hierar-chy among these factors suggests that significant progress in one part of the organization will be difficult without working on the others. A circle opposed to a pyramid, indicates that all work together in tandem. The factors can be categorized as “Hard” elements and “Soft” elements. "Hard" elements are easier to define or identify and management can directly influ-ence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems. "Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be suc-cessful. 7S Framework on McKinsey Let’s now look at McKinsey from the perspective of the seven factors: 1. STRATEGY Strategy can be defined as a coherent set of actions aimed at gaining a sustain-able advantage over competition. McKinsey is known as a strategy firm – stra-tegic consulting being its core competence- its consultants usually are en-gaged to help create long-term strategic plans for a company, product or oper-ation. In most cases, consultants work with senior-level executives at client companies. It clearly demands a premium for the customer value proposition it provides. It’s into the business of selling strategy and business ideas in diverse domains ranging from aerospace to technology on the basis of rigorous analysis. It doesn’t intend to provide end-to-end business solutions and be present in the downstream consulting value chain. McKinsey endures an ultimate brand name which needs no marketing- it shuns publicity of any kind. It has a relationship driven approach to marketing since many ex-McKinsey consultants serve on company boards (up to a third of all boards, according to some estimates), the firm has long-term ties and relationships with CEOs at many major organizations. It is one of the most powerful firms with an ability to influence business and institutions and hence its business model is based on a PULL from the client rather than a PUSH approach.
Mckinsey on Mckinsey ! Mahim Mongia
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C O N S U L T I N G
2. STRUCTURE Structure refers to the organization chart showing who reports to whom and how tasks are divided up and integrated at the same time. McKinsey is a largely non-hierarchical, decentralized group of knowledge workers connected by shared values and a multitude of informational axes. It is a flatter organization which minimizes hierarchy- a place where an idea coming from an associate carries an equal weightage to that coming from a director. At the same time there is a chain of command, where Director and to a lesser extent the Partners make decisions about the firm which the Engagement Man-ager, Associates, Analysts and Support Staff are free within that boundary. It also follows an unofficial meritocratic hierarchy where experience and cre-dentials of stellar associates is respected and promoted. For any engagement, the best people from any of the locations are chosen for the delivery team as per the client requirements. 3. SYSTEMS Systems refer to the processes and procedures through which the things get done from day to day. McKinsey has a very strong problem solving process which has three attributes: Fact Based
Rigidly Structured
Hypothesis Driven
The three step process of analyzing the facts rigorously, generating the hypoth-esis and testing the hypothesis is strictly followed. While approaching any cli-ent problem, McKinsey doesn’t jump to solutions immediately- it diagnoses if the client is targeting the right problem or not and hence digs deeper. The 80/20 rule is extensively applied in the process as a powerful rule of thumb. The McKinsey models and frameworks are developed and honed to solve client problems in a focused way. 4. SHARED VALUES Shared Values refer to those ideas of what is right and desirable which are typi-cal of the organization and followed by most of its members. McKinsey believes in certain set of beliefs which are never compromised. It believes in the power of one firm and fosters teamwork and collaboration. “WE” comes before “I” in McKinsey, and hence a non competing environment where brainstorming leads to better ideas It puts the client interest before its own, always behaves as professionals, keeps client information confidential at all costs, tells the truth as it sees it and delivers in the most cost effective man-ner to the client as it can. This builds a relationship of trust and lasts in a long term association enhancing its image as an advisor and a counselor further in the world.
Mckinsey on Mckinsey ! Mahim Mongia
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C O N S U L T I N G
5. SKILLS Skills refer to the capabilities posses by the organization as a whole as well as by the individuals. McKinsey pays a premium to analytic ability and the bright-est minds from diverse educational and cultural backgrounds. It follows a tough selection process which chooses the best from the Ivy Leagues as well as out-side US. The associates have to continuously update themselves. McKinsey positions itself as the repository of all business information and theo-ry worth knowing. McKinsey's annual expenditures on knowledge is more than $50 million, much of it spent on conferences, research projects, and intra firm communication. Its India based research center is especially established for churning out research. It has a systematic knowledge building into its institu-tional portfolio. McKinsey also runs what amounts to its own business press, churning out, in addition to its widely followed McKinsey Quarterly, hundreds of pamphlets, magazines, papers, and articles a year. Partners individually publish a lot of books and research. 6. STYLES Styles refer to the way managers collectively behave with respect to time, at-tention and symbolic actions. McKinsey follows a democratic and participative leadership environment where merit is respected and all are encouraged to share ideas and opinions. Team performance is important for achieving client service- and hence collaboration is encouraged though leadership style. 7. STAFF Staff refers to the people in the organization considered in terms of corporate demographics and not individual personalities. McKinsey considers itself to be a network of high performing individuals with leadership potential, integrity, a sharp analytical mind, creativity and ability to work with people from all levels in the organization. The “McKinsey” Way Forward The much celebrated McKinsey is perhaps the most well-known, most secre-tive, most high-priced, most prestigious, most consistently successful, most en-vied, most trusted, most disliked management consulting firm on earth. As they say- those at the top also need to reinvent, McKinsey- though a clear leader, should think about strategies for keeping pace with change to continue enjoy-ing its sacrosanct status.
Mckinsey on Mckinsey ! Mahim Mongia
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C O N S U L T I N G
Many of us want to be consultants. This article will help tell you what it is like to be in the shoes of a consultant as well as the shoes of a client. A consultant is an individual with specialized skill and knowledge who is con-tracted to accomplish (or assist in accomplishing) an assignment in an unpreju-diced manner and independent of other responsibilities. Clients need consult-ants when they require an expert‘s advice or some specialized skill. Consultants need clients to work on new projects. There exists a symbiotic relationship be-tween the two. Let us analyze the different phases of the engagement between the two. Pitching Phase Client’s Perspective: Several factors have to be considerer when choosing a consultant include a thorough risk and cost analysis and the consultant's availa-bility, track record, experience, and qualifications. Consultant’s Perspective: Partners carry out the main pitch process. Associ-ates might get involved in some non-chargeable work to support partner‘s con-versation with client. Letter of Proposal (LOP) or Letter of Intent (LOI) is the product of this discussion. LOP forms a guideline to the focus of the efforts of the consulting team. It also mentions expectations about results, what client resources will be required, and how long the engagement is expected to take. It may or may not touch upon the topic of remuneration. Brainstorming/Hypothesis Generation Client’s Perspective: For Clients, it is important to be a part of the project since the planning phase. They should ensure that the consultants have under-stood the requirement clearly. After making the right choice of the consultant they should see that the progress is in the right direction.
Engaging a Consultant Neeti Kumar, XLRI
The Different Phases: 1) Pitching Phase 2) Brainstorming or Hypothesis Gener-ation 3) Data Gathering and Analysis 4) Conclusions and Story Building 5) Final Presentation 5) Final Presentation
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C O N S U L T I N G
Consultant’s Perspective: The focus is on brainstorming involving the whole consulting team, and sometimes client members. The idea is to understand the problem, discuss different options and form hypothesis. This brainstorming stage is at once the most exciting and the most frustrating stage of the project. On the one hand, it gives a new consultant a firsthand opportunity to see how more senior members of the team tackle the problem set before them. On the other hand, the team may not seem to be making much headway. The final part of the brainstorming stage is to take each of the emerging hy-potheses and determine how they can be proved or disproved in the analysis stage. What data is required? How can it be gathered? Which team member will take responsibility for each part of the analysis? Data gathering and analysis Client’s Perspective: This is just the beginning of establishing a good working relationship. Since clients are nearest to the problem they are nearest to the solution also. They must ensure that they communicate to the consultant their problems and experience well. Communicate! Communicate! Communicate! is the way out. They should also see that consultant respects their personal data and values long term relationship with them. Consultant’s Perspective: The hypothesis which is formed at the brainstorm-ing stage is approved or disapproved at this stage. The Consulting in-house li-brary is considered, closely followed by that of the client. This usually results in large stacks of text-lines, brokers' and annual reports, and other reference ma-terials. The big advantage which consultants have is the intellectual capital of their consulting firm. They can approach firm experts or consultants who have worked on similar but non-conflicting projects. More interviews with client personnel may be required. Some studies may re-quire consultation with industry experts; others may necessitate more hands-on measures. The main task of a consultant is to find a way of re-cutting the da-ta, combining different data sources, and making judicious assumptions in or-der to end up with data that definitively supports or negates the hypothesis you are trying to test. Pulling out conclusions and building the story Client’s Perspective: Clients must demand knowledge transfer from consult-ants. A good consultant is one who not just provides a solution but also creates a structure which leaves the clients more independent. Consultant’s Perspective: Developing a story is an evolving process through-out the project – it starts at hypothesis generation. As more and more hypothe-sis is approved / disapproved a clearer picture emerges. One might require to pre-pare more hypotheses and to do some more analysis to solve the jigsaw puzzle. By developing the storyboard up front, the team is forced to helicopter back up to the top level on a regular basis and check that their analysis directly answers the client's key questions.
Engaging a Consultant Neeti Kumar, XLRI
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C O N S U L T I N G
Presentation to client Client’s Perspective: Clients should see that their key questions are directly being answered. Consultant’s Perspective: What actually happens in a presentation depends on the frequency of meeting between the consulting firm and the client. Formal presentations are presented as a landscape of exhibits, held together by a story-line. The result of the final presentation should not come as a surprise to the client. While the partner or the director with the senior client relationship tends to run the meeting, managers and even an associate who has taken own-ership for some work, might get to present. Inputs from Vault Guide to Consulting, zdnetasia.com
Engaging a Consultant Neeti Kumar, XLRI
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Accenture Most Prominent Consulting Brand? A report by sourceforconsulting.com reveals that Accenture is the most prominent consulting brand across the entire market of Tier 1 firms. The report was a result of survey of some of the largest consulting buyers (procurement professionals only) which collectively spend around 2.5 billion pounds. They claim Accenture accounts for 20% of all choices by buyers. The reason for Accenture’s success has been the fact that it has been able to associate itself with more than one line of service. While this part of the report may not hold wa-ter with several who believe in the superiori-ty of McKinsey or BCG, there is another inter-esting finding of the report. They have tracked down the strongest firm-service asso-ciations: - McKinsey & Strategy - IBM and IT Consulting - Accenture and Outsourcing - PwC and Financing
The Battle of the Big Four
Narrowing down the focus to the Big Four (Deloitte, PwC, Ernst & Young, KPMG) alone, the Source report found that Deloitte is the most prominent Big Four consulting brand. The report says that perhaps the fact that Deloitte was the only one not to divest its ad-visory practice in recent years is behind the strength of its brand. The share of mind was worked out at: -Deloitte: 12% -KPMG: 8% -Ernst & Yong: 7% -PwC: 6% Although KPMG does not do very well here, if we narrow focus even further, then nearly twice as many people in the public sector think of KPMG than any other firm. The report also found that IBM and Capgemini Consulting also do well here, dominating associations with IT and out-sourcing.
The Best Consulting Firm to Work for!
The Boston Consulting Group (BCG) has jumped six spots to number two on FORTUNE's “100 Best Companies to Work For” list this year, making it one of only two firms to be ranked in the top dozen for six straight years. The con-sulting giant not only avoided layoffs in the downturn, but hired its largest class of recruits ever in 2010. BCG also achieved the top ranking as best “small” company (defined as companies with less than 2,500 employees in the United States) and was cited as one of the most diverse overall, with 45 percent women and 27 percent minorities.
Source: http://www.consultant-news.com/
C O N S U L T I N G N E W S
CRUX e-mail id
CREST Jun-July 2011
CRUX MEMBERS
Faculty Advisor
Prof. Munish Thakur
Secretary
Maneesh Dhooper
Senior Executive Members
Aditya Nanavaty
Gaurav Jain
Joymalya Bandyopadhyay
Muthukumar Rajendran
Piyush Pathneja
Subid Chakraborty
The Editorial Team of Crest invites articles from readers for publication in forthcoming issues. If you have articles/ expe-riences/ studies to share in the areas of consulting, entre-preneurship, research or strategy, please do send them in to [email protected] mentioning your name and institute name.
Senior Executive Team (Left to Right): Joymalya Bandyopadhyay, Aditya Nanavaty, Piyush Pathneja, Muthukumar Rajendran, Subid Chakraborty, Gaurav Jain and Maneesh Dhooper (Secretary)
