2. AGENDAIntroduction/Expectations
Example consultant company
Consulting: Nature, Trends, Careers
Selected Methods (frameworks)
Research (some basics)
Graphics (from data to chart)Date2
3. AGENDAIntroduction/Expectations
Example consultant company
Consulting: Nature, Trends, Careers
Selected Methods (frameworks)
Research (some basics)
Graphics (from data to chart)Date3
4. Our Mission: Helping our clients create their future.zccy: MISSION AND VISIONOur Vision: To become one of the world's leading companies, bringing innovations to improve the way the world works and lives.Date4
5. 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.zccy: CORE VALUESDate5
6. 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 employees1997
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 against Arthur Andersen
01.01.01
zccy, formerly known as Andersen Consulting
zccy: IMPORTANT MILESTONESDate6
7. zccy GLOBALLYEmployees: 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 Date7
8. zccy: DEVELOPMENT OF REVENUES(U.S. Billions)1993$2,8761994$3,4521995$4,2241996$5,3021997$6,6471998$8,3Date8
9. zccy: GLOBAL PERSONNEL GROWTH199753,426199644,801199538,027199432,711199865,134Date9
11. Global Competitive OverviewStrategyDigital EquipmentMcKinseyAndersen ConsultingOrganizationProcessesInformationTechnologyBusiness Process
Management
(Outsourcing)Cap Gemini SogetiUNISYSIBMComputer SciencesEDSBoston ConsultingBooz AllenDate11
12. zccy: 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
GovernmentDate12
13. zccy: SAMPLE CLIENT LISTDate13
14. AGENDAIntroduction/Expectations
Example consultant company
Consulting: Nature, Trends, Careers
Selected Methods (frameworks)
Research (some basics)
Graphics (from data to chart)Date14
15. NATURE, TRENDS, CAREERSNature and purpose of consultingRecent trends and current challengesStaff and career paths in consultingDate15
16. NATURE AND PURPOSE OF CONSULTINGNature 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 relationshipDate16
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)Date17
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 InstituteDate18
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 practise 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 BritainDate19
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“.Date21
22. Worldwide Professional Services Market$billionsSource: Dataquest$250$475$45$85$25$5$0$100$200$300$400$500$600199019992003STRATEGY VS. IT- CONSULTING18% annual growthPure StrategyIT-related ServiceDate22
23. GERMAN CONSULTING MARKET OVERVIEWGerman Consulting market overview
1998: 62.500 Management-, Personnel- and IT-Consultants (BDU e.V.)
13.200 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.)Date23
24. TOP 20 CONSULTING COMPANIES WORLDWIDEDate24
25. TOP 30 CONSULTING COMPANIES IN GERMANYSource: Lünendonk Consultancy + Research GbR, HamburgDate25
26. 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.
Date26
27. 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)Date27
28. 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.Date28
29. 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 ideasDate29
30. WORK AND LIFESTYLE CHARACTERISTICSWork 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 technologyDate30
31. TOP 10 WAYS TO KNOW YOU ARE DATING AN CONSULTANT1. 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. Referred 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."Date31
32. NATURE, TRENDS, CAREERSNature and purpose of consultingRecent trends and current challengesStaff and career paths in consultingDate32
33. 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
Date33
34. "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 RapidinnovationCHANGING CUSTOMER EXPECTATIONS – SOME STATEMENTSDate34
35. 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 contractDate35
36. INCREASING MARKET POWER OF THE TOP 20 CONSULTING COMPANIESFacts
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 & bmpDate36
37. SPLIT TAX/AUDITING – REASONS AND CONSEQUENCESReasons
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
Date37
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 EDSDate38
39. STRATEGIC ALLIANCES OF zccyDate39
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 - CiscoDate40
41. NEW COMPETITORS ENTER THE CONSULTANT MARKETNew 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 companiesDate41
42. 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
Date42
43. 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; now 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 consultingDate43
44.
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.GET AND RETAIN THE RIGHT PEOPLEDate44
45. "WINNING THE WAR FOR TALENT" Key factors of success Image
Interesting tasks
Personal development
Balanced life style
Internationalatmosphere 1.DaimlerChrysler2.Lufthansa3.McKinsey 4.BMW5.KPMG6.Boston Consulting7.Deutsche Bank8.Siemens9.SAP10.zccy Attractive employeesFocus 30. August 1999Date45
46. 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 - technologyDate46
47. NATURE, TRENDS, CAREERSNature and purpose of consultingRecent trends and current challengesStaff and career paths in consultingDate47
48. STAFF AND CAREER PATHSPartnerAssociate PartnerManagerConsultantAnalystDirectorPrincipleAssociate PrincipleProject ManagerConsultantzccyMcKinseyDate48
49.
Lead work teams
Facilitate Team-Meetings
Systems design
Client presentations
Lead subprojectsConsultantAnalystProposals
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 peersROLES AND RESPONSIBILITIES: EXAMPLESDate49
50. PartnerManagerInterface with client senior management
Lead client meetings
Develop new business
Develop management team
Shape and impact the Firm
Attain Ownership in the Firm
ROLES AND RESPONSIBILITIES (CTD.)
Lead client meetings
Manage projects
Lead and develop project teamDate50
51. 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."Date51
52. PERSONS TO SUPPORT YOUR PERSONAL CAREER
Personal Mentor
Peer Group
Annual Reviews (upward/downward/sideward)
Partner Group
Practice LeadersDate52
53. 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 thinkingDate53
54. BENEFITS AND CHALLENGES OF CONSULTINGBenefits 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
Date54
55. PROJECT WORK PLAN: ONE EXAMPLE FOR A THREE-MONTH PROJECT EXAMPLEALTE FOLIE VERWENDENDate55
56. 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;Date56
57. AGENDAIntroduction/Expectations
Example consultant company
Consulting: Nature, Trends, Careers
Selected Methods (frameworks)
Research (some basics)
Graphics (from data to chart)Date57
58. AGENDAIntroduction/Expectations
Example consultant company
Consulting: Nature, Trends, Careers
Selected Methods (frameworks)
Research (some basics)
Graphics (from data to chart)Date58
59. AGENDAIntroduction/Expectations
Example consultant company
Consulting: Nature, Trends, Careers
Selected Methods (frameworks)
Research (some basics)
Graphics (from data to chart)Date59