Guide To Top 50 Consulting Firms (2006)

Vault Guide to the Top 50
Management and Strategy Consulting Firms

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NAOMI NEWMAN
AND THE STAFF OF VAULT
2006 Vault, Inc.
VAULT GUIDE TO THE
TOP 50
MANAGEMENT
AND STRATEGY
CONSULTING
FIRMS
Copyright 2006 by Vault Inc. All rights reserved.
All information in this book is subject to change without notice. Vault makes no claims as to
the accuracy and reliability of the information contained within and disclaims all warranties.
No part of this book may be reproduced or transmitted in any form or by any means,
electronic or mechanical, for any purpose, without the express written permission of Vault
Inc.
Vault, the Vault logo, and the most trusted name in career information
TM
are trademarks of
Vault Inc.
For information about permission to reproduce selections from this book, contact Vault
Inc.,150 W. 22nd Street, 5th Floor, New York, New York 10011, (212) 366-4212.
Library of Congress CIP Data is available.
ISBN 13: 978-1-58131-422-9
ISBN 10: 1-58131-422-1
Printed in the United States of America
ACKNOWLEDGMENTS
We are extremely grateful to Vaults entire staff for all their help in the
editorial, production and marketing processes. Vault also would like to
acknowledge the support of our investors, clients, employees, family
and friends. Thank you!
In order to ensure that our research was thorough and accurate, we
relied on a number of people within the consulting firms that we
profiled.
To the 2,700-plus consultants who took the time to be interviewed or to
complete our survey, we could never thank you enough. Your insights
about life inside the top consulting firms were invaluable, and your
willingness to speak candidly will help to job seekers and career
changers for years to come. We also thank the consulting firms who
were so helpful in completing this project.
Visit the Vault Consulting Career Channel at www.vault.com/consulting with
insider firm profiles, message boards, the Vault Consulting Job Board and more. ix
INTRODUCTION 1
AGuide to This Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
THE VAULT PRESTIGE RANKINGS 5
Ranking Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
The Vault 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Practice Area Ranking Methodology . . . . . . . . . . . . . . . . . . . . . .10
THE VAULT QUALITY OF LIFE RANKINGS 15
Quality of Life Ranking Methodology . . . . . . . . . . . . . . . . . . . . .17
Quality of Life: Top 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
THE VAULT DIVERSITY RANKINGS 33
Diversity Rankings: Top 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
OVERVIEW OF THE INDUSTRY 39
The State of Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
Practice Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
THE VAULT 50 49
1. McKinsey & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
2. Boston Consulting Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
3. Bain & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86
4. Booz Allen Hamilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104
Table of Contents
Vault Guide to the Top 50 Management and Strategy Consulting Firms
Table of Contents
insider firm profiles, message boards, the Vault Consulting Job Board and more. xi
5. Monitor Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122
6. Mercer Management Consulting . . . . . . . . . . . . . . . . . . . . . . .136
7. Mercer Oliver Wyman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150
8. Mercer Human Resource Consulting . . . . . . . . . . . . . . . . . . .162
9. The Parthenon Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .170
10. Deloitte Consulting LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . .174
11. L.E.K. Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184
12. Marakon Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196
13. IBM Global Business Services . . . . . . . . . . . . . . . . . . . . . . .212
14. A.T. Kearney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228
15. Accenture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .236
16. Gartner, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .254
17. Roland Berger Strategy Consultants . . . . . . . . . . . . . . . . . . .260
18. Hewitt Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270
19. Katzenbach Partners LLC . . . . . . . . . . . . . . . . . . . . . . . . . . .280
20. Towers Perrin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .294
21. Watson Wyatt Worldwide . . . . . . . . . . . . . . . . . . . . . . . . . . .306
22. NERAEconomic Consulting . . . . . . . . . . . . . . . . . . . . . . . .316
23. Cambridge Associates LLC . . . . . . . . . . . . . . . . . . . . . . . . . .328
24. CRAInternational . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .334
25. Mars & Co . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .342
26. Diamond Management & Technology Consultants, Inc. . . .348
27. Capgemini . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .362
28. ZS Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .372
29. LECG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .386
30. Arthur D. Little . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .392
31. Navigant Consulting, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .398
32. BearingPoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .404
33. Cornerstone Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .422
34. Corporate Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . .432
35. First Manhattan Consulting Group . . . . . . . . . . . . . . . . . . . .438
36. Kurt Salmon Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . .448
37. Stern Stewart & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .460
38. The Advisory Board Company . . . . . . . . . . . . . . . . . . . . . . .466
39. Analysis Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .474
40. Gallup Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .482
Table of Contents
2006 Vault, Inc. xii
41. Dean & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .494
42. Giuliani Partners LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .502
43. PRTM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .506
44. Strategic Decisions Group . . . . . . . . . . . . . . . . . . . . . . . . . . .518
45. OC&C Strategy Consultants . . . . . . . . . . . . . . . . . . . . . . . . .528
46. Huron Consulting Group . . . . . . . . . . . . . . . . . . . . . . . . . . . .538
47. Putnam Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .552
48. Mitchell Madison Group . . . . . . . . . . . . . . . . . . . . . . . . . . . .562
49. PAConsulting Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .572
50. FTI Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .588
THE BEST OF THE REST 601
Abt Associates Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .602
Affiliated Computer Services, Inc. . . . . . . . . . . . . . . . . . . . . . . .607
Alvarez & Marsal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .615
Aon Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .630
Applied Value LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .636
Archstone Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .640
Bates White . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .645
The Brattle Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .662
Breakthrough Management Group . . . . . . . . . . . . . . . . . . . . . . .669
Buck Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .673
Candesic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .677
Capco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .685
Celerant Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .689
CFI Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .694
Clark Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .697
Cohn Consulting Group, a Division of J.H. Cohn LLP . . . . . . .702
Corporate Value Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . .705
Droege & Comp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .714
Easton Associates, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .723
Edgar, Dunn & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .730
Exeter Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .734
Fair Isaac Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .737
First Consulting Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .742
insider firm profiles, message boards, the Vault Consulting Job Board and more. xiii
Greenwich Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .752
Haverstick Consulting, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .757
Hay Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .763
Health Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .769
IMS Health Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .779
Kaiser Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .785
m.a.partners, a part of the Detica Group . . . . . . . . . . . . . . . . . . .797
Mercator Partners LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .807
Milliman, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .811
Novantas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .814
Protiviti Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .824
Right Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .830
The Segal Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .835
Simon Kucher & Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .839
Stockamp & Associates, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . .850
Strategos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .861
Trinity Partners, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .869
Value Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .876
Vantage Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .885
FEATURED FIRMS 895
The Bard Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .897
Proxicom, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .898
Deutsche Post World Net Inhouse Consulting . . . . . . . . . . . . . .899
Opera Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .900
APPENDIX 901
Index of Firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .903
About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .907
insider firm profiles, message boards, the Vault Consulting Job Board and more. 1
Management and strategy consulting is a volatile industry, and this year has been no
exception. Thats why weve surveyed over 2,700 consultants to bring you the ninth
edition of the Vault Guide to the Top 50 Management and Strategy Consulting Firms.
Every year, we survey the best of the management and strategy firms, as well as those
consulting firms with narrower focuses in fields like financial consulting and health
consulting.
The 92 profiles in this years edition are based on detailed research and extensive
feedback from current consultantstalking about everything from company culture
to pay, travel schedules to community service. And we cover everything from
gigantic multinational consulting firms to boutique firms with fewer than 100
employees.
The management consulting industry continues its revival across the board. Its a
good time to be a management consultant.
Check out the Top 50 rankings to see which firms have the golden touch of prestige,
according to peer consultants. Consultants at prestigious firms tend to enjoy access
to a high caliber of clients and projectsnot to mention that a recognizable and well-
regarded name puts a sheen on any resume. Still, there are plenty of other great
reasons to choose a consulting firmspecialty, training, perksand youll learn
about all of them in the Vault Guide to the Top 50 Management and Strategy
Consulting Firms.
The Editors
Vault, Inc.
Introduction
A Guide to this Guide
If youre wondering how our entries are organized, read on. Heres a handy guide to
the information youll find packed into each firm profile in this book.
Firm Facts
Locations:
Alisting of the firms offices, with the city (or cities) of its headquarters bolded. For
firms with a relatively small number of offices, all cities are included. Countries for
international offices are typically not specified unless the location is uncommon.
Practices Areas:
Official departments that employ a significant portion of the firms consultants.
Practice areas are listed in alphabetical order, regardless of their size and prominence.
Uppers and Downers:
Good points and bad points of the firm, as derived from consultant interviews and
surveys, as well as other research. Uppers and downers are perceptions and are not
based on statistics.
Employment Contact:
The person, address or web site that the firm identifies as the best place to send
resumes, or the appropriate contact to answer questions about the recruitment
process. Sometimes more than one contact is given.
The Buzz
When it comes to other consulting firms, our respondents are full of opinions! We ask
them to detail their views and observations about firms other than their own, and
collect a sampling of these comments in The Buzz.
When selecting The Buzz, we include quotes most representative of the common
perceptions of the firms held by other consultants, even if in our opinion the quotes
do not accurately or completely describe the firm. Please keep in mind when reading
The Buzz that its often more fun for outsiders to trash than praise a competing
consulting firm. Nonetheless, The Buzz can be a valuable means to gauge a firms
reputation in the consulting industry, or at least to detect common misperceptions.
We typically include two to four Buzz comments. In some instances we opt not to
include The Buzz if we do not receive a diversity of comments.
Introduction
2006 Vault Inc. 2
The Stats
Employer Type:
The firms classification as a publicly traded company, privately held company or
subsidiary.
Ticker Symbol:
The stock ticker symbol for a public company, as well as the exchange on which the
companys stock is traded.
Chairman, CEO, etc.:
The name and title of the leader(s) of the firm, or of the firms consulting business.
Employees:
The total number of employees, including consultants and other staff, at a firm in all
offices (unless otherwise specified). Some firms do not disclose this information;
figures from the most recent year the information is available (if at all) are included.
Revenue:
The gross sales (in U.S. dollars) the firm generated in the specified fiscal year(s).
Some firms do not disclose this information; numbers from the most recent year the
information is available (if at all) are included. In some cases, revenue is given in
Euros ().
The Profiles
The profiles are divided into three sections: The Scoop, Getting Hired and Our
Survey Says.
The Scoop:
The firms history, clients, recent firm developments and other points of interest.
Getting Hired:
Qualifications the firm looks for in new associates, tips on getting hired and other
notable aspects of the hiring process.
Introduction
Our Survey Says:
Actual quotes from surveys and interviews with current consultants of the firm on
topics such as firm culture, feedback, hours, travel requirements, pay, training and
more. Profiles of some firms do not include an Our Survey Says section.
Best of the Rest
Even though the name of this book is the Vault Guide to the Top 50 Management and
Strategy Consulting Firms, we didnt stop there, adding 42 other firms we thought
notable and/or interesting enough for inclusion. These firms are listed in alphabetical
order.
Introduction
2006 Vault Inc. 4
Color Glossy Ad:
Gallup
file name:
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page 5
Introduction
THE VAULT
PRESTIGE
RANKINGS
Ranking Methodology
For the 2006 Vault Management and Strategy Consulting survey, we selected a list of
top consulting firms to include. These consulting firms were selected because of
their prominence in the consulting industry and their interest to consulting job
seekers. This year, over 2,700 consultants responded to our survey.
The Vault survey was distributed throughout all of the firms on Vaults list. In some
cases, Vault contacted practicing consultants directly. Survey respondents were
asked to do several things. They were asked to rate each consulting firm on the
survey on a scale of 1 to 10 based on prestige, with 10 being the most prestigious.
Consultants were unable to rate their own firm. They were asked only to rate firms
with which they were familiar.
Vault collected the survey results and averaged the score for each firm. The firms
were then ranked, with the highest score being No. 1 down to No. 50.
We also asked survey respondents to give their perceptions of other consulting firms
besides their own. Aselection of those comments is featured on each firm profile as
The Buzz.
Remember that Vaults Top 50 Management and Strategy Consulting Firms are
chosen by practicing consultants at top consulting firms. Vault does not choose or
influence the rankings. The rankings measure perceived prestige and not revenue,
size or lifestyle.
The Vaul t Prestige Ranki ngs
2006 Vault Inc. 8
RANK FIRM
1 McKinsey & Company
HEADQUARTERS/
LARGEST OFFICE
New York, NY 8.401
2 Boston Consulting Group Boston, MA 8.095
3 Bain & Company Boston, MA 7.756
4 Booz Allen Hamilton McLean, VA 6.593
5 Monitor Group Cambridge, MA 6.398
6 Mercer Management Consulting New York, NY 6.261
7 Mercer Oliver Wyman New York, NY 6.112
8 Mercer Human Resource Consulting New York, NY 5.752
9 The Parthenon Group Boston, MA 5.729
10 Deloitte Consulting LLP New York, NY 5.563
11 L.E.K. Consulting
Boston, MA/
London
5.539
12 Marakon Associates New York, NY 5.491
13 IBM Global Business Services Armonk, NY 5.388
14 A.T. Kearney Chicago, IL 5.286
15 Accenture New York, NY 5.266
16 Gartner, Inc. Stamford, CT 5.256
17 Roland Berger Strategy Consultants
New York, NY/
Munich
5.238
18 Hewitt Associates Lincolnshire, IL 5.102
19 Katzenbach Partners LLC New York, NY 5.049
20 Towers Perrin Stamford, CT 5.029
21 Watson Wyatt Worldwide Arlington, VA 4.978
22 NERA Economic Consulting White Plains, NY 4.947
23 Cambridge Associates LLC Boston, MA 4.929
24 CRA International Boston, MA 4.819
25 Mars & Co Greenwich, CT 4.814
SCORE
1
2
3
4
5
6
7
8
9
15
12
10
13
14
20
17
11
16
18
19
25
23
31
21
28
RANK
2006
The Vault 50 2007
[ The 50 most prestigious consulting firms]
RANK FIRM
26 Diamond*
HEADQUARTERS/
LARGEST OFFICE
Chicago, IL 4.714
27 Capgemini
New York, NY/
Paris
4.646
28 ZS Associates Evanston, IL 4.644
29 LECG Emeryville, CA 4.626
30 Arthur D. Little Boston, MA 4.575
31 Navigant Consulting, Inc. Chicago, IL 4.513
32 BearingPoint McLean, VA 4.502
33 Cornerstone Research
New York, NY/
Menlo Park, CA
4.459
34 Corporate Executive Board Washington, DC 4.321
35 First Manhattan Consulting Group New York, NY 4.299
36 Kurt Salmon Associates Atlanta, GA 4.253
37 Stern Stewart & Co. New York, NY 4.219
38 The Advisory Board Company Washington, DC 4.184
39 Analysis Group, Inc. Boston, MA 4.172
40 Gallup Consulting Washington, DC 4.165
41 Dean & Company Vienna, VA 4.119
42 Giuliani Partners LLC New York, NY 4.095
43 PRTM
Waltham, MA/
Mountain View, CA
3.982
44 Strategic Decisions Group Palo Alto, CA 3.944
45 OC&C Strategy Consultants
New York, NY/
London
3.890
46 Huron Consulting Group Chicago, IL 3.880
47 Putnam Associates Burlington, MA 3.866
48 Mitchell Madison Group New York, NY 3.844
49 PA Consulting Group
Arlington, VA/
London
3.755
50 FTI Consulting Baltimore, MD 3.703
SCORE
26
30
24
35
32
45
29
37
43
34
33
22
36
48
27
38
44
40
50
46
NR
41
42
47
NR
RANK
2006
Vault Guide to the Top 50 Consulting Firms
*Diamond Management & Technology Consultants, Inc.
Practice Area Ranking Methodology
Vault also asked consultants to rank the best firms in several areas of business focus.
These areas are economic consulting, energy consulting, financial consulting, human
resources consulting, operational consulting, and pharmaceutical and health care
consulting. Consultants were allowed to vote for up to three firms as the best in each area.
The following charts indicate the rankings in each practice area, along with the total
percentage of votes cast in favor of each firm. (As long as at least one consultant
voted for more than one firm, no firm could get 100 percent of the votes; if every
consultant had voted for the same three firms, for example, the maximum score
would be 33.3 percent.)
2006 Vault Inc. 10
1 14.26 NERA Economic Consulting
RANK 2006 RANK PERCENT FIRM
2 10.18 CRA International
3 9.89 McKinsey & Company
4 8.83 LECG
5 7.18 Cornerstone Research
6 6.69 Analysis Group, Inc.
7 5.24 Boston Consulting Group
8 4.75 Bain & Company
9 3.10 Booz Allen Hamilton
10 2.23
2
3
1
5
7 (tie)
7 (tie)
4
6
8
7 (tie) L.E.K. Consulting
Economic Consulting
3 11.32 Mercer Oliver Wyman
5 4.82 First Manhattan Consulting Group
6 3.90 Deloitte Consulting LLP
8 3.53 Accenture
9 1.76 Mercer Management Consulting
10 1.67
1
2
4
3
5
6
8
9
7
10 L.E.K. Consulting
Financial Consulting
5 6.37 Accenture
6 5.49 A.T. Kearney
8 3.19 Cambridge Associates LLC
9 3.01 CRA International
10 2.12
1
3
2
4
8
5
NR
9
6
NR IBM Global Business Services
Energy Consulting
2006 Vault Inc. 12
1 18.25 Accenture
2 16.82 A.T. Kearney
6 6.98 IBM Global Business Services
9 2.44 BearingPoint
10 2.39
2
1
3
5
4
6
8
7
9
10 Capgemini
Operational Consulting
1 34.76 Mercer Human Resource Consulting
2 18.43 Hewitt Associates
3 12.21 Watson Wyatt Worldwide
4 11.28 Towers Perrin
5 4.04 Hay Group
8 1.32 Accenture
9 1.01 Aon Consulting
10 0.93
1
3
4
2
5
8 (tie)
8 (tie)
7
9
NR Katzenbach Partners LLC
Human Resources Consulting
3 9.29 ZS Associates
5 4.60 IMS Health Incorporated
6 4.16 Affiliated Computer Services, Inc.
8 3.01 Accenture
9 2.92 L.E.K. Consulting
10 2.74
1
2
3
4
6
NR
5
8
10
9 Monitor Group
Pharmaceutical & Health Care Consulting
THE VAULT
QUALITY OF
LIFE RANKINGS
Quality of Life Ranking Methodology
In addition to ranking other firms in terms of prestige, survey respondents were asked
to rate their own firms in a variety of categories. On a scale of 1 to 10, with 10 being
the highest and 1 the lowest, respondents evaluated their firms in the following
quality of life areas:
Ranking the firms
Afirms score in each category is simply the average of these rankings. In compiling
our quality of life rankings, we only ranked firms from whose consultants we
received 10 or more responses for that particular question. Only consulting firms that
distributed the Vault survey to their consultants were ranked. Firms that distributed
the survey this year were:
The Vaul t Qual ity of Life Ranki ngs
Alvarez & Marsal
Bain & Company
Bates White
BearingPoint
Booz Allen Hamilton
Boston Consulting Group
The Brattle Group
Candesic
Capgemini
Cornerstone Research
Corporate Value Associates
Dean & Company
Diamond Management & Technology
Consultants, Inc.
Droege & Comp.
Easton Associates, LLC
First Consulting Group
First Manhattan Consulting Group
FTI Consulting
Gallup Consulting
Greenwich Associates
Health Advances
Huron Consulting Group
Kaiser Associates
Katzenbach Partners LLC
Kurt Salmon Associates
L.E.K. Consulting
m.a.partners, a part of the Detica Group
Marakon Associates
Mercator Partners LLC
Mercer Management Consulting
Mercer Oliver Wyman
Overall satisfaction
Compensation
Work/life balance
Hours in the office
Formal training
Interaction with clients
Relationship with supervisors
Firm culture
Travel requirements
Offices
Diversity with respect to women
Diversity with respect to minorities
Diversity with respect to gays,
lesbians and bisexuals
Mitchell Madison Group
Monitor Group
NERAEconomic Consulting
Novantas
OC&C Strategy Consultants
PAConsulting Group
PRTM
Putnam Associates
Simon Kucher & Partners
Stockamp & Associates, Inc.
Strategic Decisions Group
Strategos
Towers Perrin
Trinity Partners, LLC
Value Partners
Vantage Partners
ZS Associates
Introduction
2006 Vault Inc. 18
Quality of Life: Top 20
Overall Satisfaction
On a scale of 1 to 10, where 1 means very poor and 10 means excellent, how would
you rate your overall satisfaction with your firm?
1 9.243 Novantas
RANK SCORE FIRM
2 9.222 Gallup Consulting
3 9.200 Putnam Associates
5 (tie) 9.000 Cornerstone Research
5 (tie) 9.000 Health Advances
7 8.909 Marakon Associates
8 8.896 Katzenbach Partners LLC
9 8.828 m.a.partners, a part of the Detica Group
10 8.818 PRTM
11 8.793 Stockamp & Associates, Inc.
13 8.682 Alvarez & Marsal
14 8.643 Droege & Comp.
15 8.607 Simon Kucher & Partners
16 8.571 The Brattle Group
17 8.563 Strategic Decisions Group
18 8.500 Monitor Group
19 8.467 Strategos
20 8.446 Huron Consulting Group
Work/Life Balance
On a scale of 1 to 10, where 1 is very poor and 10 is excellent, how would you rate
your firms efforts to promote a livable work/life balance?
2006 Vault Inc. 22
RANK SCORE FIRM
3 8.636 Health Advances
4 8.460 Novantas
11 8.130 PRTM
15 7.824 Kurt Salmon Associates
18 (tie) 7.625 Strategos
18 (tie) 7.625 Boston Consulting Group
Hours in the Office
On a scale of 1 to 10, where 1 means completely unsatisfied and 10 means extremely
satisfied, please rank your satisfaction with the number of hours you spend in the
office each week.
RANK SCORE FIRM
2 8.378 Novantas
11 7.619 PRTM
14 7.393 FTI Consulting
15 (tie) 7.286 The Brattle Group
15 (tie) 7.286 Putnam Associates
17 7.087 BearingPoint
18 7.074 First Consulting Group
Compensation
On a scale of 1 to 10, where 1 is far below average and 10 is far in excess of industry
average, how would you rate your firms compensation (including salary and bonus)?
2005 Vault Inc. 24
RANK SCORE FIRM
3 7.951 Bates White
6 7.766 OC&C Strategy Consultants
8 7.629 Novantas
11 7.436 Diamond Management & Technology Consultants, Inc.
12 7.286 Roland Berger Strategy Consultants
14 7.263 Mitchell Madison Group
17 (tie) 7.071 Droege & Comp.
17 (tie) 7.071 Putnam Associates
19 7.000 Strategos
Interaction with Clients
On a scale of 1 to 10, how satisfied are you with your opportunity to interact with
your clients top-level management?
1 9.389 Novantas
RANK SCORE FIRM
5 9.125 Strategos
15 8.604 Value Partners
20 8.500 PRTM
Relationship with Supervisors
you rate your relationship with your superiors/supervisors?
2006 Vault Inc. 26
1 9.460 Novantas
RANK SCORE FIRM
5 9.083 Strategos
7 9.044 PRTM
16 8.833 Kaiser Associates
Firm Culture
On a scale of 1 to 10, where 1 is not at all pleasant and 10 is extremely pleasant,
assess your firms culture.
RANK SCORE FIRM
7 9.189 Novantas
8 9.174 PRTM
Formal Training
On a scale of 1 to 10, with 1 being very poor and 10 being excellent, how would you
rate your satisfaction with the training offered by your firm?
2006 Vault Inc. 28
RANK SCORE FIRM
9 8.242 Novantas
12 7.633 PA Consulting Group
14 7.434 Bates White
15 7.391 PRTM
18 7.170 OC&C Strategy Consultants
Offices
On a scale of 1 to 10, with 1 being miserable and 10 being optimal, how would you
rate your offices (your firms offices, not your clients offices)?
RANK SCORE FIRM
8 8.609 PRTM
13 8.297 Novantas
16 8.143 Strategos
Travel Requirements
On a scale of 1 to 10, where 1 means excessive and 10 means minimal, how would
you rate your firms travel requirements?
2006 Vault Inc. 30
RANK SCORE FIRM
7 7.891 Bates White
14 6.861 Novantas
THE VAULT
DIVERSITY
RANKINGS
Diversity Rankings: Top 20
Vaults survey asked consultants to rate their firms diversity with respect to women,
with respect to minorities and with respect to gays and lesbians. When asking
consultants to assess their firms diversity in these categories, we asked them to think
about hiring, promoting, mentoring and other programs.
This year, we have included our diversity rankings as a separate section in our guide
and have compiled an overall diversity ranking.
Overall Diversity
To determine an overall diversity score, we took the average of the scores firms
received in each of the three diversity categories (women, minorities, and gays and
lesbians).
The Vaul t Diversi ty Rankings
RANK SCORE FIRM
3 8.742 PRTM
5 8.582 Novantas
DiversityWomen
On a scale of 1 to 10, where 1 means needs a lot of improvement and 10 means
exemplary, how receptive is your firm to women in terms of hiring, promoting,
mentoring and other programs?
2006 Vault Inc. 36
RANK SCORE FIRM
14 8.324 Novantas
18 8.143 PRTM
DiversityMinorities
On a scale of 1 to 10, where 1 means needs a lot of improvement and 10 means
exemplary, how receptive is your firm to minorities in terms of hiring, promoting,
mentoring and other programs?
RANK SCORE FIRM
2 8.810 PRTM
3 8.727 Novantas
8 8.194 Corporate Value Associates
DiversityGays, Lesbians and Bisexuals
you rate your firm's commitment to diversity with respect to gays, lesbians and
bisexuals?
2006 Vault Inc. 38
RANK SCORE FIRM
3 9.273 PRTM
8 (tie) 8.786 L.E.K. Consulting
8 (tie) 8.786 Simon Kucher & Partners
9 8.696 Novantas
OVERVIEW OF THE
CONSULTING
INDUSTRY
How many consulting
job boards have you
visited lately?
(Thought so.)
Vault Consulting Job Board
The most comprehensive and convenient job board for
consulting professionals. Target your search by area of
consulting, function, and experience level, and find the job
openings that you want. No surfing required.
VaultMatch Resume Database
Vault takes match-making to the next level: post your resume
and customize your search by area of consulting, experience
and more. Well match job listings with your interests and
criteria and e-mail them directly to your inbox.
Use the Internets most targeted
job search tools for consulting
professionals.
The State of Consulting
Revival!
In the year 2005, consulting made a comeback. After the economic downturn
following the stock market bust of 2000-2001, the industry slumped while businesses
tried to stay afloat in a stalled economy. Corporate cutbacks left no budget for
consulting services, and many tech companies that had been solid clients for
consulting firms failed. When the economy started to recover, firms began adapting
to changed marketplace conditions such as globalization of businesses, increased
competition from consulting peers, higher expectations from clients and more
conservative budgets for consulting services. Consulting firms have also shifted their
strategy: Pricing has changed to meet demands, business process outsourcing has
become a major part of consulting practices and consultants have become advisors
for clients confronting globalization. The year 2005 was clearly the turnaround point:
Revenue recovery was solid industry-wide and consulting saw stronger, steadier
growth than it has since the recession.
Market conditions across client industries have improved dramatically over the past
few years, and companies are again able to spend money on consulting services. A
strong indicator of the overall health of the industry is that pure strategy consulting
has rebounded, thanks to an upswing in industry M&A activity and revived private
sector fortunes. Consulting services in the U.S. brought in $139 billion in revenue in
2005, and expansion is projected to continue at a rate of 3.9 percent through 2010,
according to a U.S. Bureau of the Census survey. Traditional business advisory work
has been the primary driving force behind the growth. While the past few years have
seen a huge growth in private equity, the demand for due diligence and post-merger
work has especially increased. Companies have also been turning to consultants to
help them evaluate M&A opportunities, assess risk and ensure regulatory
compliance. But although consulting has officially bounced back and the overall
outlook is positive, there remains a sense of caution in the way firms operate. Rash
spending and over-the-top bonuses are hallmarks of the past, while pricing
competition and tighter margins are main concerns of today.
Rallying the troops
As the engagements come rolling in, firms are back on campuses to lure a fresh crop
of talent. And as campus recruiting picked up in 2005, students from top schools
have again started to view consulting as a desirable career choice. Those hoping to
Overvi ew of the Consul ting Industry
join up face encouraging conditions overall: In 2005, firms increased consulting staff
by 27 percent and recruitment hit a four-year high mark, according to Consultants
News, and this feverish hiring frenzy is expected keep pace for the next three years.
After recruitment had ebbed following the market bust, the peak is a positive
indicator of firms' renewed confidence that work will continue to flow in. And now,
more than ever, candidates have a wider breadth of options available to them. Aside
from the giant consultancies to choose from, these days candidates also have dozens
of specialist firms to consider. Boutique startups, founded during the downturn, are
now exhibiting significant traction in the market.
Wanted: experienced hires
Hiring is indeed surging ahead, but firms are now increasingly seeking experienced
recruits. With more sophisticated clients demanding specific capabilities to solve
complex problems, recruitment and retention of specialized talent has become crucial,
while demand for generalist consultants has waned. Those with deep financial
knowledgeM&A, operational risk, regulatory and Sarbanes-Oxley complianceare
at the top of list for recruiters. Also in need are consultants with a government
background for firms bringing in a growing number of public sector consulting
contracts. Candidates have gained the upper hand since specialized talent is in short
supply, and job seekers can afford to be choosier about which firm is the best "fit" for
their goals, and can often name their own price. Also in high demand are minorities
with an MBA, as firms continue to make diversity a main concern.
What are you worth?
Kennedy Information reports that in 2005, entry-level analysts at management
consulting firms earned a median base salary of $50,000, plus a median bonus of
$5,000, and recent MBA grads entering the industry earned a median $70,000 in
salary, with a median bonus of $8,500. In addition, salary for specialists can go much
higher than the average, due to the dearth of candidates with much needed regulatory
and risk-management consulting skills. Larger firms are known for being able to
offer higher salaries, though smaller firms are now finding alternative ways to appeal
to candidates, for example, offering the possibility of faster advancement or more
responsibility early on in a career. Public firms, such as Watson Wyatt Worldwide
and Mercer Human Resource Consulting, can also offer stock-based incentives,
while private firms claim that without shareholders to take a piece of the pie, more
profit can go to consultants.
2006 Vault Inc. 42
Overall, salary increases among consultants have been modest compared to those in
the 1990s, according to a Consulting Times report. And a 2005 survey from Beament
Leslie Thomas verifies that although firms show high optimism for 2006, raises still
aren't what they used to be. But with pressure to pay up, firms are getting creative
with alternative ways to compensate consultants. Some are adding more work-at-
home flexibility or increased vacation time to benefits packages to retain the best
candidates. As for lifestyle changes in the industry? Don't count on things being
much different from before. Tighter margins have spurred a renewed emphasis on
utilization rates, which often translates into longer hours and an unfavorable
work/life balance for consultants.
Bargaining for business
Despite a rather optimistic outlook for business, consulting fee income growth has
subsided slightly: Total fee income for the top-75 consulting firms grew by 9.6
percent in 2005, a lower rate of growth than in the past two years. As a result of
depressed fee rates, consulting firms' margins are nowhere near pre-2000 levels, and
pricing competition among firms is heating up. Lucrative engagements are fewer,
though the volume of engagements has escalatedengagements may be relatively
shorter-term and less profitable than in the past. And though clients are spending
money on strategy advice again, with overhead lower than pre-bust levels, they are
now demanding more measurable results for their money; in other words, consulting
firms are expected to do more with less. Added to the competitive mix are the
smaller, niche firms that sprang up in the past few years, and that are now challenging
larger strategy houses for specialty work.
Big Four comeback
The year also marked the re-emergence of the Big Four into consulting. Betwen
1999 and 2001, Ernst &Young, KPMG and PricewaterhouseCoopers all spun off
their consulting arms when conflict of interest issues arose and the Securities and
Exchange Commission stepped up enforcement of independence regulations. The
five-year noncompete agreements they signed began coming to an end in 2005.
Though a bit under the radar, these firms are already bulking up their consulting staff
to meet the expected demand for advisory services. KPMG predicts its consulting
business to grow 25 percent for the next three years, and in May 2005, Ernst & Young
announced plans to build a new advisory services unit in the U.K. And while these
firms have been left out of the action for the past four years, newer consulting brands
like Navigant Consulting, PAConsulting and BearingPoint have been gaining clients
and growing quickly.
Navigating new markets
As industry has gone global, so has consulting. American companies looking for
ways to expand business and enter new markets are turning to consulting firms to
help navigate the process. And, as domestic and international markets compete on the
same playing field, consultants are in demand to help companies reduce costs and
develop marketing strategies to forge ahead in unfamiliar territory.
The BPO bandwagon
With consulting services somewhat harder to sell due to tighter budgets and increased
competition, firms are also keeping an eye on nonadvisory services, such as
implementation and outsourcing. Outsourcing arose partly because of the need to
limit overhead costs as client firms struggled to get back on their feet in the past few
years. BPO continues to transform the consulting market and create new practice
areas that weren't around even five years ago, such as sourcing strategy and
transformation BPO. Kennedy Information estimates that the BPO market will grow
from $4.8 billion in 2005 to $7.5 billion in 2009.
India tops the list as the location of choice for firms who choose to outsource
processes; China and Brazil vie for second place. India's outsourcing is predicted to
bloom from a $22 billion industry to a $60 billion industry by 2010, according to a
study published by the McKinsey Global Institute and NASSCOM (National
Association of Software & Service Companies). And U.S. consulting firms are
closely following their footsteps: In 2004, Deloitte announced a five-year plan to
invest $50 million and add 2,500 staff in India to support its activities there, and in
2006, IBM revealed its intentions to invest $6 billion in the continent over the next
three years.
Eye on the East
Eastern Europe has also emerged as a promising area of development as more
countries join the European Union and once-fragile economies stabilize. Consulting
firms are establishing outposts to serve a growing list of banking, transportation and
telecom clients conducting business in the region. In July 2006, Accenture announced
the opening of a BPO delivery center in Bucharest that will eventually employ 1,000
staff; the firm already has centers in Slovakia, Poland and the Czech Republic.
2006 Vault Inc. 44
Hewitt Associates opened a center in Krakow, with 300 staff to serve its BPO clients;
it has operated a consulting office in Warsaw since 1996. Capgemini also has an
outsourcing base in Krakow. Though these areas cannot compete with India and
China for low-cost labor, they are targets for expansion because of the proximity to
well-established Western European markets and a relatively larger English-speaking
population.
Aid for ailments
The Centers for Medicare and Medicaid Services predicts that total U.S. health care
spending will increase annually at a rate of 7.2 percent a year. In 2006, expenditures
are estimated to hit $2.6 trillion, and will likely climb to $4 trillion by 2015. With
health spending accounting for 16.2 percent of the GDP, it's easy to see how health
care consulting has become one of the fastest growing sectors in the industry. In the
life sciences sector, pharmaceutical companies are pressured to tighten costs as
patents for blockbuster drugs expire and impact sales. In addition, government health
systems are turning to private consultants to find ways to become more efficient and
boost revenue. For example, in 2006, U.S. Department of Health and Human
Services hired Abt Associates to conduct an in-depth study outlining private
industry's best practices to contain prescription drug costs. The firm analyzed five
successful private health organizations to uncover how those groups managed to keep
drug benefit costs down.
In the U.S., revamping Medicare and Medicaid, preparing for a possible avian flu
outbreak and improving health care IT systems are expanding areas of opportunity
for consultants. The increasing development of for-profit hospitals is also a trend that
will impact health care consulting in the future.
Practice Areas
Operations and implementation
Operations is the difference between strategymaking a planand putting that plan
into action. Operations consultants examine a client's internal workings, such as
production processes, distribution, order fulfillment and customer service. While
strategy involves setting a client's goals, operations ensures that clients reach these
goals. Operations consultants may investigate customer service response times, cut
operating costs, assist with outsourcing or look into the allocation of client resources.
Operations consulting normally includes the implementation of these findings and
processes.
Typical engagements may include:
Streamlining the equipment purchasing processes of a major manufacturer
Outsourcing customer call centers to India
Working with a newly-merged commercial bank to increase customer response
efficiency
Human resources consulting
The best business strategies and finest operational processes mean nothing without
the people to put them in place. HR consulting addresses the issue of maximizing the
value of employees and placing the right people in the right roles. HR consulting
firms are also hired for organizational restructuring, systems implementation, and
ongoing studies and initiatives. In 2005, HR consulting services grew over 10
percent. And in the U.S. alone, spending on HR consulting expanded 12.5 percent in
2005, according to the International Data Corporation. With a low unemployment
rate and an improved economy, HR consulting is steadily on the rise.
An important corollary to HR consulting is HR outsourcing. Increasingly, clients are
turning to HR consulting firms to manage their internal HR systems.
Examples of typical human resources consulting engagements include:
Creating or updating a client's compensation structure
Counseling and processing laid-off (or downsized, "rightsized," etc.) employees
and assisting them with outplacement
Helping to blend the cultures and processes of merged companies
Health care/pharmaceuticals consulting
This practice area is one of the growth areas in the consulting world. As the
population of the United States and of other industrialized countries around the world
ages, and as scientists steadily unlock the mysteries of genetic engineering, the health
care industry continues to thrive at a time when so many sectors of the economy are
faltering. Total U.S. health care expenditures are projected to increase annually, at an
average rate of 7 percent per year, from $1.8 trillion in 2004 to $3.4 trillion in 2013.
Furthermore, health spending in the U.S., at 16 percent of GDP, accounts for a larger
2006 Vault Inc. 46
share of GDP than in any other major industrialized country. But just because the
market is large doesn't mean it is easy to profit from it. That's where health care and
pharma consulting firms come inhelping clients like hospitals, HMOs, drug
companies and supply distributors cope with an increasingly complicated maze of
legislation, competition from other health care providers, cutting costs on vendors
and equipment, and managing new technology.
Examples of typical health care/pharma engagements include:
Creating a strategy to help a hospital become competitive in new markets
Helping drug companies speed up the R&D and marketing process for products
Promoting usage of a fertility center
Economic consulting
As the global economy becomes increasingly interconnected and complex, clients
often turn to think tank-like economic consulting firms for guidance. These firms are
typically loaded with economics PhDs and MBAs, as well as industry experts, and
investigate economic factors to give clients the ability to resolve problems caused by
competition, antitrust issues, public policy and regulations. These consultancies are
prized for their independence and ability to give candid counsel to clients buffeted by
the vagaries of the economy.
Examples of typical economic consulting engagements include:
Assessing the impact of deregulation of the utilities industry in Hungary for a client
Helping to create rules for more efficient government auctions
Creating a sophisticated economic model to improve the bundling of services
Financial consulting
According to Kennedy Information, in 2005, global spending on financial consulting
services rose 15 percent to $63 billion. Growth in this sector is predicted remain
steady at 12 percent per year in the long term. The market has gained momentum as
consultants are sought to help companies deal with shareholder litigation and
regulatory compliance issues and business disputes. Other financial service areas
driving the expansion are M&Aand divestitures, and corporate planning and strategy.
Financial consulting firms tend to be one of two animals; either they work with
financial services firms to enhance their strategies and performance, or they have a
specific financial model they use with clients to enhance their performance. In either
case, the focus is typically on enhancing shareholder value.
Examples of typical financial consulting engagements include:
Applying a proprietary framework to enhance market performance and value
Presenting market position analysis to a CEO
Refining online strategies for a commercial bank
2006 Vault Inc. 48
THE VAULT
1-50
2006 Vault, Inc. 50
55 East 52nd Street
New York, NY 10022
Phone: (212) 446-7000
Fax: (212) 446-8575
www.mckinsey.com
LOCATIONS
83 offices worldwide
PRACTICE AREAS
Functional Practices
Business Technology Office
Corporate Finance Marketing & Sales
Operations Organization Strategy
Industry Practices
Automotive & Assembly Banking &
Securities Chemicals Consumer
Packaged Goods Electric Power &
Natural Gas High Tech Insurance
Media & Entertainment Metals &
Mining Nonprofit Payor/Provider
Petroleum Pharmaceuticals &
Medical Products Private Equity
Pulp & Paper/Forest Products Retail
Telecommunications Travel &
Logistics
THE STATS
Employer Type: Private Company
Managing Director: Ian Davis
2006 Employees: 13,000 (est.)
UPPERS
Engagements are generally very
interesting
Great alumni network and
credentials in the business world
Youll learn a great deal
DOWNERS
The travel can add up if you have
a family, or if youre in a
relationship
Can be very political
Long and insufferable working
hours
EMPLOYMENT CONTACT
www.mckinsey.com/aboutus/careers
McKinsey & Company
V A U L T
P R E S T I G E
R A N K I N G
1
THE BUZZ
WHAT CONSULTANTS AT OTHER FIRMS ARE SAYING
Still the gold standard
Very good branding and
marketing
Robot factory
Employees are just a cog in the
wheel
THE SCOOP
Inside The Firm
McKinsey isnt the oldest management strategy firm out there, nor is it the biggest.
So what is it that gives McKinsey (known by insiders as The Firm) its seemingly
untouchable street cred in the consulting industry? Employing approximately 7,000
consultants in more than 80 offices worldwide, McKinsey continues to make its mark
with a mix of killer branding, high-profile insiders and alumni, and, of course,
influential work for a top-tier clientele.
At least part of McKinseys unshakable success stems from its strict adherence to a
five-part code of conduct. This code was established under Marvin Bower, who
joined the fledgling firm in 1933, becoming the protge of founder James O.
McKinsey. McKinsey, a lawyer, CPA and University of Chicago management
professor, is credited with the idea of tapping management engineers to help both
struggling companies and thriving ones strengthen and grow their businesses.
Founding the firm in 1926, McKinsey left a legacy as a pioneer in the field of
management consulting. But Bower, who served as managing director from 1950
through 1967, gets much of the credit for shaping the firms culture. During Bowers
leadership, McKinseys revenue grew from $2 million to $20 million, and the code
of conduct set forth by the leader created a stable culture, shaping the way the firm
does business to this day.
The McKinsey mystique
Bower directed McKinsey employees to put client interests ahead of firm interests,
serve clients in a superior manner and adhere to high ethical standards. He also
encouraged consultants to be prepared to have differences of opinions with
management at client firms, and to always give clients the unvarnished truth,
however painful it might be. Bowers insistence that the firm preserve the confidence
of its clients continues to separate McKinsey from many of its peersin an era of
self-promotion and press releases, McKinsey still refuses to trumpet the names of its
clients or to highlight big engagement coups. In fact, this reticence lends McKinsey
an air of mystique. But the firm says it isnt playing coyrather, McKinsey has said,
client confidence is what we believe is professional behavior and the appropriate
posture given our conviction that we supplement our clients leadership, but never
replace it. Still, McKinsey consultants are known for going on to head up firms
theyve consulted for following successful engagements.
McKinsey & Company
Visit the Vault Consulting Career Channel at www.vault.com/consulting - with
Top-choice employer
Through the years, McKinsey also has managed to retain a reputation as the top-seed
employer of choice in the industry, recruiting, retaining and producing the industrys
best and brightest. For 10 years running, U.S.-based MBAs responding to an annual
Universum Communications survey have named McKinsey as its most desirable
employer. In fact, the very notion of ferreting out and cultivating top talent is another
Bower legacy. As the field of strategy consulting took off, Bower recognized that
demand for established talent would eventually outpace supply, and the firm became
the first to recruit candidates fresh out of graduate school. By plucking fresh talent,
rather than relying solely on seasoned veterans wedded to a particular industry,
McKinsey was able to mold its consultants into savvy generalists, and rival firms
soon followed suit.
Of course, these days McKinsey can afford to be choosy with the young minds it
selects to shape into consultants. McKinsey employs a motley mix of Rhodes
Scholars, law review editors, PhDs and even nuclear physicistscreating, as the
company puts it, a firm of leaders who want the freedom to do what they think is
right. Influential McKinsey alumni can be found in corner offices worldwide
recent names in the news include Gerald Storch, named chairman and CEO of Toys
R Us in February 2006; Jeremy Philips, appointed in January 2006 as head of
Internet acquisition strategy for News Corp.; Jim McNerney, named CEO of Boeing
in 2005; and Peter Thum, co-founder of socially conscious bottled water firm Ethos
(which was subsequently sold to Starbucks for $8 million).
Diplomacy within
Though the firm operates as a private corporation, it is unusual in that its run as a
broad partnership, as well. McKinsey is led by a managing director, elected every
three years by a group of more than 900 active directors and principals (roughly
corresponding to senior and junior partners at other firms), who are considered both
owners and managers of the decentralized firm. Londoner Ian Davis serves as the
firms current managing director. A27-year McKinsey veteran, Davis replaced Rajat
Gupta, who led the firm for its maximum of three three-year terms. An avid cricket
fan, Davis was educated at Oxford University. In typical McKinsey fashion, Davis
election was met with a minimal amount of fanfarehe didnt even grant the press
an interview until he had held the directorship for a full year. Generally, Davis was
expected to direct McKinsey in a less flashy way than his predecessor, Gupta, who
presided over the firm during the heady dot-com years (and their subsequent decline).
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2006 Vault, Inc. 52
Uncovering the kerfuffle
Even a firm as solid as McKinsey wasnt immune to the hype and high-flying
associated with those dot-com days. In fact, as Davis himself told the Financial
Times of London in July 2004, that period did put severe strain on our basic values.
In the kerfuffle, I think some of them got lost. We didnt knowingly move away from
them, but my sense is that after this period we need to affirm our basic approach and
values. While Davis didnt clarify what that kerfuffle was, exactly, McKinsey
critics like to bring up the firms association with the infamous Enron. Jeff Skilling,
the now-disgraced ex-CEO of Enron, first developed a transaction- and services-
based, minimal asset strategy for the company when he worked as a consultant for
McKinsey. After Skilling left the firm to join Enron, he brought other McKinsey
consultants onboard. As the Enron trial dragged on into early 2006, McKinseys
name again made the papers, as indicted ex-broadband unit chief Kenneth Rice
referred to strategy advice hed received from the firm. Though New Yorker writer
Malcolm Gladwell has accused the firm of creat[ing] the blueprint for the Enron
culture, the fact remains that none of the strategy advice McKinsey gave to Enron
has been tied to the bankrupt firms subsequent shady dealings.
Raising the bar
Another aspect of the kerfuffle is one familiar to many of the strategy firms that
survived the Internet boom. As McKinseys revenue reached an all-time high of $3.4
billion in 2000, the firm found itself taking on a greater number of Internet-related
engagements. At the same time, McKinsey lost precious talent to the siren songs of
Silicon Valley startups. Fortunately, by limiting the equity stakes it accepted from
start-up clients, McKinsey wasnt stuck with as many worthless shares in lieu of
engagement fees as some of its peers. Still, some belt-tightening happened at the
firm, which laid off a small portion of support staff in 2001, cut back on retreats and
other goodies, and raised the up bar on its up-or-out review process. By 2004,
however, McKinsey was back in action, hiring 60 percent more new recruits
compared to the previous year. The number of INSEAD grads hired by the firm
jumped from 56 in 2002 to around 90 in both 2004 and 2005, according to
BusinessWeek.
Cloudy skies
McKinsey also had to deal with a spell of bad press as the economy soured for once
high-flying clients, such as United Airlines. In May 2003, the airlines bankruptcy
lawyers charged that that the firms restructuring advice fees, which included a $1
McKinsey & Company
million-a-month flat fee for McKinsey, were unwarranted for a company that
couldnt manage to pay its debts. In 2001, former McKinsey clients Kmart and
Swissair also found themselves in bankruptcy court. And in early 2003, McKinsey
again found itself in the headlines after its consultants failed to predict a takeover bid
of client Ocean Spray by its rival, Northland Cranberries Inc.
Form and function
McKinsey organizes its business into six functional practices and 18 industry
practices. Functional practices include business technology office, corporate finance,
marketing and sales, operations, organization and strategy. These practices serve
clients in a wide array of industries, from automotive to travel. The firm allows
consultants to join these practices, affiliate with them or simply to try them on a
project basis. While most of the firms practice areas can be traced to McKinseys
earliest roots, the business technology practice, or BTO, is a relatively new addition,
established in 1997. BTO works closely with other practices within McKinsey to
help clients transform their competitive positions through applying cutting-edge
technologies and/or refining their IT management approaches. The group also serves
technology clients on a variety of strategic topics. The practice faces competition
from more tech-centric rivals, such as the consulting practices at IBM, HP and the
like.
Global operations
Technically, McKinsey is headquartered in New Yorkbut because of the firms
decentralized structure, the company doesnt claim any one office as its home base.
McKinseys 83 offices can be found in more than 40 countries worldwide. Its
consultants are a cosmopolitan crew, too, with more than 100 spoken languages. The
firm opened its first overseas office in London, in 1959, but it wasnt until the 1990s
that McKinsey spread across the globe, doubling its staff and opening 20 new offices
in cities from Abu Dhabi to Rio de Janiero. The firm reportedly derives more than
60 percent of its revenue from non-U.S. engagements.
McKinsey, like its consulting peers, has tapped into the talent and growth potential
of India. In February 2000, the firm enhanced its presence in India with the launch
of India Venture 2000, created to help Indian entrepreneurs establish and grow new
IT or e-commerce businesses. Major Indian clients have included the State Bank of
India, liquor company Shaw Wallace, and engineering and construction firm Larsen
& Toubro. The firm has even advised former Prime Minister Atal Behari Vajpayee
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2006 Vault, Inc. 54
on foreign investment issues. In fact, McKinseys presence in India has contributed
to a mini-boom in Indian execs and entrepreneurs, with many alumni going on to lead
major corporations and projects of their ownex-director Ashok Alexander went on
to head the Bill and Melinda Gates Foundation in India, and fellow alumnus Pulak
Prasad is a leader at Warburg Pincus, to name just a couple.
Early into outsourcing
No discussion of India is complete without a look at outsourcing, and McKinsey has
proved itself to be a quiet pioneer in the area. A March 2006 BusinessWeek article
examined this phenomenon, noting that some of the most influential drivers of
outsourcing in India have McKinsey roots. Marc Vollenweider, a former partner at
McKinsey in New Delhi and London, became a co-founder of Evalueserve Inc., a
New Delhi-based provider of market research that analyzes data for hedge funds and
investment banks. Fellow McKinsey alum Neeraj Bhargava founded Indian call
center giant WNS Global Services, and former McKinsey associate Manoj S. Jain
runs an influential outsourcing firm that taps talent from India and China, while
Rizwan Koita, from Bombay, left the firm at age 29 to found two thriving
outsourcing services companies. These vets come with solid bona fides, thanks to
McKinseys early work on outsourcing. In 1995, the firm began anticipating a world
of remote services spurred by the new digital economy. Setting up a Knowledge
Center in New Delhi, the firm employed its own offshore researchers to run
numbers and do other tasks like assemble PowerPoints from afar. The successful
center eventually became a model that McKinsey could showcase to clients who
were curious about outsourcings potential.
Overseas expansion
After opening regional offices in Shanghai in 2003, McKinsey also has made a splash
in the Chinese markets, conducting over 500 engagements in China over the last
decade. Outside of China, McKinsey has worked with Singapores government, as
well as its national Singapore Airlines. Farther afield, McKinseys globetrotting
consultants have worked with the Colombian Coffee Federation, Czech oil group
Unipetrol, and Turkeys Savings and Deposits Insurance Fund, to name just a few
international clients. All signs point to continued overseas growthin May 2005,
Reuters reported that McKinsey was set to increase staff in Asia by 30 percent, with
plans to add more than 700 staffers in the region over the next two years. The firm
reportedly established a program aimed at hiring Chinese students, including English
language training and overseas stints in the U.S. and Frankfurt.
McKinsey & Company
The giving sort
McKinsey is committed to serving the nonprofit community and does so through a
combination of efforts, which include a formal nonprofit practice, assignments
initiated by individual offices or individuals, and a willingness to work at reduced (or
pro bono) rates. In fact, half of the firms consultants work on a pro bono
engagement at some time during their careers, advising museums, theaters, operas,
festivals, multinational NGOs and development agencies, philanthropic
organizations, schools, conservation organizations, land trusts, zoos and more. The
firm says it doesnt hire consultants directly into its nonprofit practice; rather,
McKinsey states, We consider nonprofit work to be part of each consultants career,
but not any one persons exclusive focus. Associates and analysts with at least one
year of McKinsey experience can apply to the firms Community Fellows program,
working exclusively on nonprofit projects for six to nine months.
In 2001, the firm launched The McKinsey Institute on the Nonprofit Sector,
appointing Senator Bill Bradley as chairman of its advisory board. Nonprofit
priorities for the institute include global public health, international aid and
development, philanthropy and education. After the tsunami in 2005, McKinsey
dedicated teams to the rebuilding efforts in Acha and Sri Lanka, helping officials in
those areas to determine how best to structure development efforts. In the aftermath
of Hurricane Katrina, McKinsey worked with former Presidents Bush and Clinton to
help establish the Katrina Fund and help ensure donations were pooled and directed
where resources were most needed. And the firm stepped up its pro bono efforts in
New York following the September 11 terrorist attacks, serving the Lower Manhattan
Development Corporation, overseeing the development of a victim database for New
York State Attorney General Eliot Spitzer and studying how New York Police
Department and Fire Department members reacted during the World Trade Center
attacks.
Prolific on business
Any B-schooler can tell you that McKinsey is behind some of the most influential
business publications out there. The firms current and former consultants have
produced an impressive array of bestsellers in recent years, including the 2005
publication of the fourth edition of Valuation: Measuring and Managing the Value of
Companies, by Tim Koller, Marc Goedhart and David Wessels. The year 2004 saw
the publication of William W. Lewiss The Power of Productivity, as well as The
Price Advantage, by McKinsey partners Michael Marn, Eric Roegner and Craig
Zawada, and McKinsey alum Elizabeth Haas Edersheims biography, McKinseys
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2006 Vault, Inc. 56
Marvin Bower. Perhaps the most well-known book to bear a McKinsey pedigree is
Tom Peters and Bob Watermans In Search of Excellence, published in the 1980s
(back when Peters and Waterman were relative unknowns at the firm) and since
hailed as one of the most important business books of the century.
Spreading the word
Beyond books, the firm churns out other influential prose, such as the well-regarded
McKinsey Quarterly. The firms studies and white papers often circulate among the
mainstream media, such as regular surveys of business confidence. In March 2006,
for instance, the firm made headlines when it published research arguing that public
companies arent well served by publishing short-term guidance on a quarterly basis.
The firm also occasionally turns its critical eye on itself, analyzing the theories
behind its strategies to make sure McKinseyand its clientsisnt swept up in
business fads.
Meanwhile, the McKinsey Global Institute (MGI), established in 1990, operates as
an independent economics think tank within McKinsey, conducting research and
developing positions on issues affecting businesses and governments worldwide.
MGI research is reviewed by leading external academic advisors. The institute
combines the rigor of academia with the real-world experience of business,
according to the firm. Hot issues for the institute recently have included offshoring,
demographics, the global capital market, and Chinas and Indias talent market.
McKinsey affords its consultants the opportunity to take a year off from consulting
to serve as an MGI fellow. McKinsey insiders also can be found at the worlds most
elite gatherings, such as the World Economic Forum in Davos, Switzerland. In
September 2005, former managing director Rajat Gupta addressed the UN General
Assembly, discussing how the business sector can help the developing world.
GETTING HIRED
Making it at McKinsey
Want to make it at McKinsey? Get in line. The application and recruitment office
starts early for the vaunted firm, so students should be sure to check with their
schools to see if campus visits are planned. All applicants are encouraged to visit the
firms web site, where youll find a wealth of information, including a discussion of
roles, interview tips and practice cases.
McKinsey & Company
Just out of undergrad or some masters programs, McKinsey hopefuls enter as
business analysts. The BAoption is designed to be a two- to three-year program, but
an insider explains that McKinsey is attempting to expand the third-year opportunity
(you do something else in the firm for an extra year) for those in the program. The
source adds that as an analyst, they really encourage you to change what youre
doing after two years, whether it be going out to work in industry or leaving to go to
school. They want us to get enough experience in industry and grad school to move
ahead in our careers with the most experience and knowledge possible, after which
many are invited back.
Want competition? You got it!
The interview process varies depending on candidates levels, though an insider
suggests that what all interviews have in common is the fact that they are highly
competitive and exhausting. In order to get hired on as a summer intern (after which
a full-time position was offered), one source tells us, I went through three rounds.
These consisted of a phone interview, which included both case and fit questions, a
subsequent round at a McKinsey office with more cases, and a final round known as
McKinsey Day One. During this round, the source elaborates, You sit in an office
and they give you a presentation/study. Its halfway filled out and then they give you
a background sheet to answer some questions. You have 45 minutes to fill out the
blank areas of the business case. Then you walk your client (McKinsey
interviewers) through that. The firm notes that this type of interview is intended to
give candidates the opportunity to demonstrate their skills in a way that is similar to
the actual day-to-day McKinsey experience.
A PhDs experience
A third consultant, who entered McKinsey further along as a nonbusiness PhD,
also describes a three-round interview process, starting with a 35-question, multiple
choice test, given to a group of applicants. The test, lasting about 70 minutes,
involves a good bit of math along with common sense business questions, and
calculators arent allowed. The source says, Though not trivial, it wasnt exactly
rocket science.
After meeting with some McKinsey associates for an overview, the source continues,
Applicants are divided into groups of four and assigned to an associate. You all go
into a separate room where you practice a case. Its pretty informal and mostly used
to give feedback. They say the test results are the majority contributor to deciding
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2006 Vault, Inc. 58
who goes on to the next round, but the mock group case interview has some
influence. This mock group case is followed by another with a different cast of
characters. If called back, you are e-mailed by the recruiter and given a choice of
dates for the second-round interview, he continues. During this round, candidates
meet with three interviewers: The first one is just a case interview with only a few
minutes of small talk. The second and third interviews have both a case and also ask
for a personal story (Tell me about a time when you worked in a group and displayed
leadership). The source adds that you should have at least two stories to tell so as
to avoid telling the same one to both interviewers. Both of my interviewers (both
managing associates) asked the same personal experience question listed above.
Finally, the insider says, a third interview takes place in the office the candidate may
be assigned to, with a process thats different for different offices.
No nervous Nellies
The source adds that for those with nonbusiness advanced degrees, known as APDs,
they will always want to know why you want to be a consultant. Also, they want
you to be excited and energetic during the interview. I was told to not look so
nervous, but how you do that, I dont know! The insider also advises candidates to
distance yourself from interviewers personalities during the interview, as one of
my interviewers was quite rude during the interview so I thought I wouldnt be called
back.
One consultant, who claims to have conducted more than 100 interviews at the firm,
tells McKinsey hopefuls, McKinsey presents the process as being purely objective,
but it really isnt, adding, Though they wont admit it, there is not one uniform
standard in an interview. According to the insider, success depends on acing the
case, as well as getting the interviewer to like you. The source adds, If he (most
are hes) doesnt like you, you will not proceed. Echoing this sentiment, another
insider advises, Focus on case study preparation, and show your charisma and
confidence. The firm explains that decisions are made by team consensus, not by
an individual interviewer.
Cases are key
Case preparation is key, McKinseyites stress, with one insider reporting the interview
process is generally 75 percent cases, and 25 percent personal experience questions.
Cases are usually from work that McKinsey has done in the past. We dont ask
brain-teaser type questions, the source adds. Business cases, according to another
McKinsey & Company
consultant, may include questions about trucking companies, mattress companies
and airline frequent flyer programs. The latter, the source says, might be worked
into a quantitative estimation type of exercise, such as how many frequent flyer
tickets do you think are issued each year? On the firms web site, you can find
interactive cases to practice on, and recruiters hold interview prep sessions at many
campuses across the country.
Another insider offers a parting tip: While those who make it to final-round
interviews are definitely front-runners for positions, the final round is far from a
gimme. A large percentage of final-round interviewees are eliminated, and offers
are hard to get. Dont take anything for granted.
OUR SURVEY SAYS
Professionalism, not pedigree
Love it or hate it, insiders definitely have strong opinions about the firms culture.
Working at McKinsey & Company is a fabulous experience in terms of culture,
education, professionalism and advancement, one source tells us. I think
McKinsey is a great place, raves another consultant, adding, The people are what
make it very special. Its rare that you come to an organization that has such high-
performing people who are also good people. Its a good culture to be a part of. A
colleague echoes the sentiment, declaring, This is by far the best organization I have
ever worked with. McKinsey has a very performance-based, meritocratic culture,
another insider reports. It matters little what your background or pedigree is if you
cannot perform at the level that is expected. McKinsey consultants are driven,
distinctive people who are generally friendly [and] congenial.
Do you like structure?
Still, a consultant cautions, Its not for everyone, thats for sure, even if you do
manage to get past the rigorous interviews. Another source claims that
McKinseys culture is very structured. There is a defined way of doing everything.
This comment is backed up by numerous colleaguesas another consultant puts it,
McKinsey has a very cookbook way of solving problemsit is very effective but
very uncreative. It is ultimately just applying an approach used on other studies to
your new study. If it is a new or creative approach, it gets rejected by leaders because
it is unfamiliar.
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2006 Vault, Inc. 60
And some insiders grumble that this McKinsey method also includes lots of time
creating slides when you first join, which some consider grunt work. Although
McKinsey presents itself as a logic-driven problem solving machine, an insider
says, much of what we do involves sitting in a room making slides. The source
claims that up to 80 percent of an associates time may be spent making slide decks
for client meetings, with only 20 percent of time spent on actual problem solving,
discussion and analysis of content. Another insider claims that lots of extra,
meaningless work is done, since a lot of McKinseys newer consultants have never
been on the client/corporate side where they would have developed perspective on
how clients make use of the voluminous PowerPoint decks.
Initiating balance
McKinsey insiders are equally split on just how trying the workload is at the firm.
One consultant reports that the hours are not as bad as people say. If you are really
efficient and focused, you can get things done and go home/to the hotel. The source
adds, The firm has launched major lifestyle initiatives of late, and they are really
working hard to assure that the lifestyle of analysts and associates here is pleasant
and sustainable.
Indeed, sources tend to agree that work/life balance and nontraditional flexible work
options are being paid more than lip service at the firm. A source reports, Hours
depend a lot on the client youre serving. McKinsey is recently focusing a lot on
work/life issues. And a colleague explains in further detail: There are a couple
things the firm tries to do to make sure that you are working on projects that you are
happy with. Each team is sent a barometer each week that asks a number of
questions, like how do you like your current project, whether the lifestyle is
sustainable, do you feel like youre getting enough time with leadership, etc. If
people are reporting that lifestyle is very bad, McKinsey will have a conference on
why its so bad, and theyll try to make adjustments to make it better, reports an
insider.
The secrets out: Working at McKinsey is no cake
walk
Still, theres no getting around the fact that the hours are demanding at McKinsey,
thanks in part to what one consultant calls the firms live-at-the-client culture. One
source calls the up to 100-hour workweeks long and insufferable, while another
says that face time at the client site is very important. Dont buy into the sales
pitchno one admits that they work on weekends, yet they all do, insists an
McKinsey & Company
insider, elaborating, It is almost like it is shameful to admit how much one works on
the weekend. Yet youd be amazed by how much work magically gets done on
weekendsjoin the firm and youll understand how the magic gets done.
Obviously, there are going to be some projects that are more unfavorable hours-wise
than others, like financial companies, which is also a function of that industry,
another consultant tells us. On those types of projects, its longer hours, but the
projects are generally shorter, and you know ahead of time that youre going to be
killed in that short period of time, but then its over. The main downside is the
hours, agrees a colleague, who adds, London is known for being more relaxed in
this respect than offices in the Far East or certain parts of the U.S. (e.g., New York,
San Francisco), but nevertheless the hours are long. The source elaborates, On a
lifestyle project, one can expect to work 60 hours a week, but if one is unfortunate
enough to get onto a bad study, then hours can climb as high as 90 and, occasionally,
100 hours a week. There is an endemic long-hours culture, but the key here is to
figure out which partners create unnecessary work for their teams and to try and
avoid them like the plague.
On the road again
Travel is pretty much a given in the McKinsey world, insiders suggest. The lifestyle
can be difficult with all the traveling, admits a consultant. When I first joined, I
was excited about the travel because Im single [and] have no responsibilities; I can
go wherever I want to go. But now I get tired of the traveling sometimes, because
youre living out of a suitcase and a hotel all the time. As one insider describes it,
Well be at the client Monday through Thursday and back in our own offices on
Friday. Sometimes theyll make it so we only have to be away two days a week.
But another source reports that there is no real reason to come in to the office on
Fridays since your teammates are usually from other offices. As such, on most
Fridays, consultants either stay at the client or save the commute and work from
home. The firm claims that this attitude may depend on the office, noting that in
some offices, employees do gather together on Fridays.
But there is room for a break here and there, a source reports, noting, People
regularly take vacations between projectsyou see that a lot, and, depending on
your office, you can also work for local clients. That whole process is definitely an
open dialogue for establishing a balance that works for you on an individual basis.
Were all about putting people where they want to be.
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2006 Vault, Inc. 62
Up or (a helping hand) out
Though McKinsey is characterized as an up-or-out firm by most insiders when it
comes to advancement, sources note that this varies according to tenure, and the firm
suggests that the vast majority of turnover is voluntary. Opportunities for
advancement are excellent at the firm, says a source. Another insider tells us that
McKinsey is very up-or-out, so if you cant move up any more, you will get coached
to leave, but its never really on bad terms, and people rarely leave without another
great opportunity waiting for them. Indeed, a colleague agrees, If you spend a
couple of years at McKinsey, most employers will be very willing to interview you,
and you are often fast-tracked for positions. As an analyst, many of my friends have
left after their two-year program for MBA school, private equity work, nonprofit
work or industry experience. McKinsey works hard to place you well once you leave
the firm and it is one of the best training programs for a top-flight business school.
Indeed, the firm seems to make the transition a smooth one. The firm states that it
continues to pay consultants while they are looking for a job; partners and alumni
will make introductions for them at other companies; and there is a job board for all
alumni and consultants in transition where companies advertise openings.
The best company to leave
In fact, using McKinsey as a stepping stone to another career in business is pretty
common, sources suggest. According to a consultant, McKinsey has an aggressive
up-or-out policy, which, in turn, leads to intense competition and an assiduous and
exacting review process that, for many, just isnt worth the effort. One consequence
of this is the short average tenure, which is only about two-and-a-half yearsmost
people either arrive with, or quickly develop, the intention of getting McKinsey on
the CV and then leaving. McKinsey knows this, allowing people to be remarkably
open about their intentions; they also use this to their advantage by cultivating a
network of alumni, and by trying to assist departing employees with their job search.
Another staffer adds that Ex-employees are, after all, likely to find themselves in
senior positions within companies that are likely to hire McKinsey in the futureas
one ex-colleague once said to me, This makes McKinsey the best company to
leave.
Then again, a source says, Very few analysts are asked to leave. Above the analyst
level, from what I understand, they do expect you to accelerate through the firm
quickly. If theyre not progressing fast enough, a lot of people choose to leave on
their own, or its suggested that they seek other outside opportunities. There is a
strong meritocracy at play, another insider explains, but consultants need to build
McKinsey & Company
close ties with partners to get promotedand dont make enemies! As another
source puts it, McKinsey is very political; career building depends on your ability
to get partners to like you, only part of which arises from your work output.
Some hazing required?
For those determined to stay on, an insider says, Opportunities for advancement are
good, if youre gifted or willing to sacrifice your life to the cause; for these people,
achieving partner in six years (starting as an associate) is a realistic aspiration.
Another source explains: The promotion timetable is two years as a business
analyst. Period. Then if you have an offer to return, youll come back as an
associate. After two more years, associates may have the opportunity to become an
engagement manager or junior engagement manager, followed by the associate
principal position two to three years after that, the consultant adds. Another
employee claims, however, that an associate principal commits every waking
moment to the firmit seems like hazing, adding that less than 20 percent of
associates think that the life of an AP is appealingunfortunately, this is part of the
six- to seven-year career path to partner.
Not for the thin-skinned
Career development at McKinsey is intensely feedback-oriented, sources report. In
the words of one consultant, If youre not used to people telling you what youre
doing wrong, it can be damaging to your ego. On the flip-side, for most people who
come here, this is the most talented and challenging environment theyve ever
worked in. People are very smart and well rounded, good communicators, all those
skills. So its hard to stand out. This is probably the first time in many of the analysts
life where they havent stood out or been No. 1 in their environment.
That said, McKinsey reportedly offers phenomenal training programs. Every
couple months I have a new training program that focuses on a specific skill that
helps me in my work as a consultant, says a source, who adds, There are also good
internal knowledge resourcesplaces I can go to learn about the issues were facing.
There is a database of knowledge sources that we can consult about very specific
issues within the industry, which is good because most of us havent worked in
specific industries before. As for supervisors, one associate sums it up: Managers
differ. There are obviously some who are better than others. You just have to find the
ones that you work well with. I like to get feedback very bluntly and regularly, and
I cant work well with managers who arent comfortable giving feedback. This is an
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2006 Vault, Inc. 64
apprenticeship model. There are plenty of formal and informal mentors at all levels.
The firm adds that it has also invested in three dedicated training centers around the
world in Kitzbuhl, Austria, Singapore and New York City.
Meet with CEOs
Needless to say, working with McKinsey offers the opportunity to work with blue
chip clients worldwide, and exposure to those clients is said to be excellent. I dont
think many firms would trust their 23-year-olds in the room with senior management,
and McKinsey really does once youre able to prove that you can do that, says a
source. Aconsultant adds, McKinsey is very strong on client contact and at getting
you involved with higher levels of management. Its a very nonhierarchical place,
and you get direct exposure to a lot of senior people within the client organization.
We get to meet with CEOs and senior vice presidents of various organizations.
A problem wed all like to have
Of course, McKinsey consultants enjoy top-of-the-line salary packagesbut some
insiders manage to find the fly in that ointment. As one source grumbles, The
challenge in leaving is that most post-McKinsey jobs pay less than you earned at the
firm. Unfortunately, many people will view you as too expensive, even though they
consider you a good catch. There is a lot of mythology about people leaving
McKinsey to earn substantially more. Those are myths! A regular scan down the
McKinsey job board shows that most external jobs pay much, much less. Another
insider notes that while salary goes up about 10 percent per year, starting salary
packages are the same in a given country, with no cost of living adjustments.
Therefore, the source says, Consultants in Cleveland and Pittsburgh make the same
as those in New York, Boston and San Franciscogreat for Cleveland folks, bad for
New Yorkers. The firm clarifies that annual compensation increases for associates
are often 10 to 30 percent for strong performers, and growth is determined by the
expected length of time to making partner. Thus, strong performerswho would
have a shorter track to partnerget bigger increases.
Still, plenty of perks make up for these perceived drawbacks. Year-end bonuses can
go up to $30,000 for associates who have stuck around for a year, one insider reports.
Theres also a generous retirement savings package and at least three weeks of
vacationand the company also has a fun retreat in an exotic location once every
year-and-a-half, employees say. And analysts appreciate the B-school benefit:
McKinsey will reimburse up to two years of graduate school payments if you stay
McKinsey & Company
with the firm for two years, a source reports. The list goes on: in the words of one
consultant, The perks of working for the firm are amazingfrom the nicest hotels,
to oftentimes first-class flights, to fabulous parties.
Melting pot-or not?
McKinsey reportedly has initiatives in place to boost the ranks of women and
African-Americans at the firm, and those demographic groups also have their own
groups that constantly focus on increasing numbers, a source says. But so far, its
been an uphill climb toward this type of diversity, he suggests, continuing, I think
that firms outside of the top three may have more minorities than McKinsey. This
could be a factor of a number of things, like where we recruit, as well as the
numerous opportunities for well qualified minorities in the corporate sector.
According to another insider, the firm is not very welcoming to women and
minorities, and a colleague reports, I have never met a black, Hispanic or Native
American McKinsey consultant.
However, McKinsey seems to be making strides in this area. The firm notes that at
the last partnership election, there were 73 new partners elected; seven are women
and two are gay. And one London-based consultant cheers the diversity of ethnic
and racial backgrounds that people come from at the firm where, in my sector
alone, I count people from Canada, Australia, Northern Ireland, Ireland, Germany,
France, Russia, India, Singapore, Lebanon and Finland. Other sectors add further
variety and, in addition to this, people from other offices around the world often visit.
It really is a melting pot.
Fully engaged with the community
McKinsey consultants are said to be very involved across the board when it comes
to community service. We were very involved in initiatives after the tsunami and
Hurricane Katrina, and a lot of the offices get heavily involved in their local
community efforts, says an insider, who adds, They really encourage consultants to
get involved. We do stuff around Christmas in terms of giving gifts to families,
feeding people around Thanksgiving time, and now were trying give people
opportunities to travel who wouldnt otherwise have that ability. Another source
reports, I worked on two pro bono projects sponsored by partnersone for a local
museum, the other for a local university.
McKinsey & Company
2006 Vault, Inc. 66
McKinsey & Company
Working at McKinsey &
Company is a fabulous
experience in terms of
culture, education,
professionalism and
advancement.
Mckinsey consultant
2006 Vault, Inc. 68
Exchange Place
31st Floor
Boston, MA 02109
Phone: (617) 973-1200
Fax: (617) 973-1339
www.bcg.com
LOCATIONS
Boston, MA (HQ)
61 offices in 36 countries
PRACTICE AREAS
Branding Consumer Corporate
Finance E-Commerce Energy
Financial Services Globalization
Health Care Industrial Goods
Information Technology
Infrastructure/Real Estate
Management Innovation
Intellectual Property Marketing &
Sales Media/Entertainment
Operations Organization Post-
Merger Integration Strategy
Technology & Communications
THE STATS
President & CEO: Hans-Paul Brkner
2005 Employees: 2,900 Consulting
Staff (est.)
2004 Employees: 2,600 Consulting
Staff (est.)
2005 Revenue: $1.5 billion
UPPERS
I feel like I am being trained to
think systematically about any kind
of business problem
Unparalleled working environment:
intelligent and motivated people, no
arrogance
Generous profit sharing and
benefits
BCG is very flexible toward
meeting individuals needs
DOWNERS
More competitive environment
than it should be
Sometimes getting staffed on a
case of your choice takes time
Anxiety of meritocratic
environment
Its tough to get promoted ahead
of schedule
EMPLOYMENT CONTACT
www.bcg.com/careers/careers
_splash.jsp
Boston Consulting Group
V A U L T
P R E S T I G E
R A N K I N G
2
THE BUZZ
One of the best and getting
better
Good generalists; wide breadth
Too large, too local
Stiff, arrogant
THE SCOOP
Blazing a trail in Boston
Boston Consulting Group, founded in 1963, has been a trailblazer in many respects.
The firms founder, former Bible salesman and Harvard Business School alumnus
Bruce Henderson, is credited with many of the guiding philosophies behind
management consulting as we know it today. According to the Financial Times,
Few people have had as much impact on international business in the second half of
the 20th century as Henderson, who died in 1992.
Despite the Boston in the firms name, Henderson set out to create a firm with
international reach. BCG was the first strategy firm to set up shop in Tokyo, back in
the mid-1960s. These days, the firms consulting staff of 2,900 operates in 61 offices
worldwide, led by Hans-Paul Brkner, a German who joined BCG in 1981. Brkner,
appointed to lead the firm in 2003, is only the fifth CEO in BCGs history, and seems
poised to carry on the companys legacy of steady leadership. He came in first
among Consulting Magazines list of the top 25 consultants in 2003 and has a
reputation for accessibilityhe reportedly prefers sharing an office with junior
colleagues.
Capturing the moment
BCGs trailblazing reputation also derives from its steady influence on the theories
and catchphrases behind management consulting. BCG consultants have come up
with concepts that effectively capture business trends du jour, including the new
luxury, time-based competition and even the practice of disease management.
BCG founder Henderson also had an impact on talent recruiting in the industryhe
believed that young go-getters just out of business school could be cultivated as top
consulting generalists, given the right training and rewards. These days, a majority of
BCGs consultants hail from leading B-schools such as the University of Chicago,
Harvard and Kellogg.
A steady rise
So far, BCGs pioneering approach has proven successful. Consulting staff
headcount has risen steadily in recent years, up to 2,900 from around 2,600 in 2005,
and its North American revenue has grown 60 percent from 2003 to 2006. BCG,
which raked in $1.5 billion in sales in 2005, divides its services into functions,
Boston Consul ting Group
including branding, consumer goods, corporate finance and strategy, e-commerce,
globalization, health care, industrial goods, information technology, innovation,
intellectual property, marketing and sales, operations, organization, post-merger
integration and strategy.
Peoples choice
In 2006, BCG ranked No. 11 overall on Fortune magazines list of the 100 Best
Companies to Work For. The magazine divides companies into small, medium and
large, and among the small division, BCG placed third. The firm also scored top
honors for its health care benefits (it pays 100 percent of insurance premiums), and
got kudos for its sabbatical program, as well as compensation and tuition
reimbursement. And in 2005, MBAs at top U.S. schools responding to the
Universum survey placed BCG at No. 5 on their list of ideal employers. Down
under, BCG was named the best large consulting firm in Australia, in BRW
magazines annual Client Choice Awards.
Stars, dogs and cows
BCG began attracting attention to its innovative theories back in 1968, when it
introduced the BCG Growth-Share Matrix, which explains the relationship
between a companys profitability and its market share using star, dog, cash
cow and question mark icons in a four-quadrant layout. The model indicates that
businesses in mature markets (cash cows) provide the funding for high-growth
ventures with large expected returns (stars), while divesting of low-growth and return
ventures (dogs), and trying to build low-return fast growers (question marks) into
market leaders before they become dogs.
Pioneers in health care
After working with German pharmaceutical manufacturer Boehringer Manheim on
new approaches to managing costs associated with diabetes in the 1980s, BCG
coined another influential conceptdisease management. The term is now
commonly used by health care providers and insurers to discuss the use of business
systems analysis and total quality management principles to control and prevent
long-term diseases like diabetes and asthma. In 1995, BCGs Joshua Gray and Peter
Lawyer wrote a paper titled The Promise of Disease Management, focusing on the
patient as the relevant unit of management in health care delivery. Since then,
2006 Vault, Inc. 70
BCG has gone on to produce regular studies and reports on the subject of disease
management.
Luxurious lattes
In 2003, the business world and the popular press alike began buzzing about the new
luxury, a concept explored in BCG Partner Michael J. Silversteins BusinessWeek
best seller Trading Up: The New American Luxury. Silverstein deconstructed how
new luxury brandslike fancy chocolates, bed linens and pricey lattesmanaged
to thrive even in a weakened U.S. economy. The book argues that items once seen
as luxuries in earlier times (such as chocolate) have become commonplace, leading
to the success of brands like Starbucks and Restoration Hardware, which sell goods
at a premium and rake in higher profits. As a result of Trading Up and its May 2006
follow up, Treasure Hunt: Inside the Mind of the New Consumer, Silverstein has
established himself as an expert on luxury and consumer behavior, spending and
innovation. Silverstein and his work have been featured on CBS Sunday Morning,
PBSs Wall Street Week, and in publications ranging from The New York Times to
Vogue.
Brain games
Other influential thinkers on BCGs consulting roster include Senior VP Jeanie Duck,
whose 2001 best seller The Change Monster: The Human Forces that Fuel or Foil
Corporate Change explores a new way of looking at change strategy for senior
executives. In her study, Duck coins the term the change curve to describe the
predictable yet frustrating cycle of changes that cripple organizations. Another
prolific BCG author is VP Luc de Brabandere, whose most recent publication, The
Forgotten Half of Change: Achieving Greater Creativity Through Changes in
Perception, published in 2005, addresses how companies can continue to stand out
through innovation. The forgotten half refers to the right, or creative side of the
brain. The book, which the firm calls something of an exercise for the right brain,
invokes great philosophers and artists, from Heraclites to Victor Hugo, to show how
creativity stems from changes in perception. Based in BCGs Paris office, de
Brabandere has written or co-written nine books, becoming one of the best-selling
authors on business innovation in Europe.
No more Mr. Nice CEO
BCG also grabbed headlines in 2004 with a controversial book challenging some
widely held notions in the business world. Co-authored by BCG VP George Stalk Jr.
along with ex-BCGer Rob Lachenauer, the book, Hardball, takes a tough line against
what they see as a touchy-feely business style prevalent among American
corporations. In an April 2004 interview with The Boston Globe, Stalk argued that
squishy concepts like employee empowerment and pandering to vendors,
customers and shareholders arent helping businesses get ahead. Rather, aggressive
players like Toyota and Wal-Mart, which know how to undercut competitors, are
climbing the corporate food chain the fastest, the authors argue. The books hard-
nosed, contrarian stance didnt sit well with everyonethe Financial Times even
compared Stalk to Gordon Gecko, the slippery trader from the 1987 movie Wall
Street. But it has had an impact: A March 2006 BusinessWeek article revealed that
Home Depots hard-charging CEO has implemented Stalks philosophy as the home
improvement giant works to build a disciplined corps, one predisposed to following
orders, operating in high-pressure environments and executing with high standards.
While no one tome can possibly sum up all of BCGs pioneering concepts, a must-
read for those wanting an overview of BCGs influential philosophies is the 2006
book The Boston Consulting Group on Strategy: Classic Concepts and New
Perspectives, an anthology of the firms articles on strategy and management
originally published in the Harvard Business Review and privately by the firm. In
addition to its books, the firms studies and reports cover a wide range of topics and
industries. In April 2006, BCG released a report analyzing the growth potential
associated with disease management. In March 2006, the firm circulated research
indicating that many companies are underinvesting in the promising markets
associated with China, India and other rapidly growing economies. On an even more
specialized note, BCG has published surveys of U.S. companies doing business in
Germany, a study on minority-owned businesses in the U.S., and a quarterly report
tracking the investment banking industry.
A common strategy vocabulary
The firm also maintains its intellectual firepower through a Strategy Institute,
developed in 1998 to research and foster discussion on innovation. The institute
gathers insights from leaders in various academic disciplines and attempts to distill
them into coherent strategy ideas. BCG consultants with academic leanings may
work at the Strategy Institute as counselors, and others can access articles and
participate in discussion groups through the Institutes online Strategy Gallery.
2006 Vault, Inc. 72
Whether they be philosophers, neurobiologists, anthropologists, mathematicians or
artists, when they approach the subject with open, inquiring minds, all may find
common cause and a common vocabulary for talking about strategy, says the firm.
Meanwhile, the firm continues to cultivate its own talent. In January 2006, Matthew
Anestis, a manager in the firms Toronto office, was named a member of the Young
Global Leaders, an organization established by Klaus Schwab, executive chairman of
the World Economic Forum. The group aims to form a unique, multi-stakeholder
community of the worlds most extraordinary leaders who are 40 years old or
younger, and who are ready to dedicate a part of their time and energy to jointly work
towards a better future, appointing about 200 in each new class annually. BCG
Senior VP Miki Tsusaka, based in New York, ranked on Consulting Magazines
annual list of Top 25 Consultants in 2005, and two BCG senior VPs, Ron Nicol,
based in Dallas, and Kaz Uchida, based in Tokyo, were named to the list in 2006.
Subcontinental strategy
Apioneer in Asian strategy consulting, BCG still has a strong presence in the region,
with roughly half of its Asian business coming from local entities (as opposed to
other consultancies, which derive more business from American firms conducting
operations overseas). The firms clientele includes five of Asias biggest non-
Japanese companies, three of the top five business conglomerates in Korea, and eight
of the biggest local commercial banks in Hong Kong, Indonesia, Malaysia, Thailand
and Korea. Unlike many of its consulting rivals, BCG sticks mainly to strategy, even
overseas. In India, where the firm employs around 80 consultants in Mumbai and
New Delhi, BCGs work looks much the same as it does back in the U.S. and
elsewherehelping clients assess market opportunities, prioritize investments,
improve organizational effectiveness and tackle strategic challenges.
Over in Europe, where BCG is ranked as an employer of choice among MBAs, the
firm most recently has opened offices in Copenhagen, Berlin, Athens and Cologne,
Germany. Business is booming in Russia, toowith demand for consulting services
growing in the region, BCG more than doubled its business there in 2004, Stephan
Dertning, head of the firms Moscow office, told The Moscow Times in October 2004.
According to Dertning, BCGs engagements in the region involved a range of clients,
including both newfangled, Western-style companies and old-schoolers who still
boast a Soviet management style.
Appliances to telecom
The firm draws most of its clients from the 500 largest corporations worldwide,
though BCG also works with plenty of smaller companies, nonprofit organizations
and government agencies. The many industries covered by BCG include consumer,
energy, financial services, health care, industrial goods, media and entertainment,
retail, technology and communications, and travel and tourism. And although the
firm doesnt advertise its contracts, engagements occasionally pop up in the press. In
2005, the firm advised appliance titan Whirlpool on its bid for rival Maytag.
Spring shakedowns
In March 2006, The Wall Street Journal covered the controversial topic of Verizon
CEO Ivan Seidenbergs paycheck. While the telecom giant lost money in the market,
the CEO enjoyed a hefty raise, leading to grumbling from investors. The grumpy
shareholders brought up other gripes about Verizon, too, charging that some board
members had inappropriate business relationships. One board member is a former
BCG vice presidentaccording to the article, Verizon paid hefty sums for
consulting services to BCG during the execs tenure on the board. Verizon has
fought back by arguing that its board members operate independently, and that many
of its shareholders allegations are outdated.
In the spring of 2006, BCG again found itself in headlines as one of its clients, Knight
Vinke Asset Management, duked it out with rivals over takeover plans aimed at
publishing giant VNU. BCG had prepared a report for Knight Vinke, which owns a
stake in VNU, evaluating the targets worth. That report came under fire from VNU,
and BCG made a press statement reminding interested parties that the information in
the report was based on information VNU made public, and didnt take into account
any internal figures.
Kicked around at Nike
BCGs work sometimes comes up against challengers. A February 2006
BusinessWeek article described how Nike founder Phil Knight unexpectedly fired the
CEO of the shoe giant, William Perez, after a relatively short period of time. After
coming onboard, Perez had made one of his first big moves, hiring Boston
Consulting Group to help him conduct a sweeping review of the companys strategies
and practices in order to figure out how to control Nikes skyrocketing operating
expenses and examine its growth strategy. The study, according to BusinessWeek,
required managers to devote two hours to a detailed survey, an activity that insiders
2006 Vault, Inc. 74
complained was not Nikes culture. In addition, BCGs recommendations,
including opening outlet stores and outsourcing certain services, were not welcomed
by longtime Nike execs, many of whom came from rival consultancies like
McKinsey and Bain.
Pro bono pros
BCGers can expect to contribute to a host of ambitious pro bono projects. Some
recent engagements have included identifying new retail opportunities in Americas
inner cities; developing a comprehensive environmental plan for eastern Germany;
helping a leading Mexican university with strategy; and designing a five-year
strategy for the World Wildlife Fund. In addition, along with six other leading
consultancies, BCG has worked on an analysis of the impact of the September 11
attacks on the economy of New York City.
Gung-ho on hiring
Those looking to join the BCG elite may be seeing more of the firm on B-school
campuses in coming years. A September 2005 Wall Street Journal article said that
BCG was on track to hire a record number of MBAs in 2006. According to North
American recruiting head Kermit King, BCG continued hiring substantially even
during the downturn, as the firm takes the long view on building talent. Unlike some
in the industry who had to renege on job offers in 2001 and 2002 when the economy
went south, BCG had no bait-and-switch to its hiring, King said, adding, Id like
to think that is strengthening our reputation on campus.
GETTING HIRED
Bring us your curious and competent
If youve got a combination of curiosity and competence, you may be just what
BCG is looking for, the firm suggests. Ahallmark of BCGers, the firm adds, is that
they are not satisfied with the obvious answers and approaches. On its web site,
BCG outlines the levels at which candidates with various educational and
professional levels may enter the firm. Undergrads, recruited from top universities
(you can find a search engine listing campus visits online), typically sign on as
associates. Candidates with MBAs, typically drawn from the top-10 B-schools in the
country, usually start as consultants. And those with other masters degrees may start
as either associates or consultants, depending on the type of degree, work experience
and other factors.
Though most insiders agree that BCG favors candidates from the top schools, sources
advise hopefuls not to get discouraged if the firm doesnt make a campus visit. As
one consultant puts it, People from less-known schools and nontraditional
candidates need to make contact on their own, but from then on get very professional
treatment and a lot of help (e.g., case interview workshop for PhDs).
A typical process
As for the interview process, one insider sums it up as too many and too long. A
colleague elaborates: BCGs hiring process is very selective. Typically, we start at
a school by taking resumes and then screening out a small portion of them, then there
are two rounds of interviews. Two on-campus interviews in the first round, three
interviews at the office of your choice in the second round. Another insider
describes it as the typical consulting hiring process, except that fit and level of
comfort is very important.
On-the-spot analysis
Cases are a priority at BCG, where every interview is a case interview and the cases
are challenging, a source says. They include a quantitative component, usually,
and the topics range widely. Basically were looking for people who can do great
analysis on the spot and have all the intangibles. Fortunately, planning ahead is
somewhat possible, as BCG maintains practice cases and tips on cracking the case
interview on its web site. Insiders report a range of possible case topics, including:
How would you improve the supply chain operations of a paper manufacturer?; A
company that is a major international player in the cola market wants to enter into
other marketshow would you approach this?; Galileo has just invented the
telescope and wants to know the potential market size for it back in his time. What
do you think is the market size? Who would buy a telescope?; An office supply
store is thinking of targeting more small businesses. What are some ideas that could
help the business target this new sector more effectively?; and A video rental
company is considering going to an online model. Should they make the change or
not?
An associate reports that interviews are nonconfrontational, and generally seek to
see the candidate performing at his or her best, rather than testing performance under
pressure. Adds a source, the firm looks at people who demonstrate a more-than-
2006 Vault, Inc. 76
average breadth of interests. The interviewers try to make you feel very
comfortable, another consultant says. As one employee recalls the process, Given
the stakes, it was, of course, stressful, but BCG did everything it could to treat me
with respect. If they say theyll call, theyll do so by the appointed time, which is not
true of many other employers.
OUR SURVEY SAYS
Smart and fun, nice and kind
In the words of one insider, BCG is a family, not a fraternity. I think BCGs
culture really sets it apart from other firms, another source tells us, explaining,
People are very friendly and collaborative. Theyre smart, fun and like hanging out
outside of work. As far as the organization goes, there is literally no hierarchy. As
an associate, Im given the same responsibilities as a consultant. Partners ask for my
input all the time and actually listen to what I have to say. This theme of flatness
and lack of hierarchy resonates with many BCGers. As another consultant puts it, I
dont get the sense that BCG is very bureaucratic. If I have any issues regarding
work, I feel just as comfortable talking to a partner about it as I would talking to
someone less senior. I love the culture. I have worked in a few other places and I
have never met nicer, kinder people than at BCG.
In addition, BCG is a place that is open, supportive of diversity of opinion,
embraces diverse approaches to problem solving from very different individuals,
cooperative and even supportive of quirky personalities, to an extent, consultants
say. Instead of having a culture where people are supposed to conform to some
mold explicitly or implicitly, an insider elaborates, BCGs culture is one that
cherishes the individual. So instead, BCG is a culture of individuals being
themselves (brilliant, down-to-earth, funny and approachable, among other things),
and I think as a result everyone is happier being comfortable in their own skin.
Ideas welcomed
BCG is also populated by plenty of spirited intellects, insiders suggest. As one
consultant puts it, I love the fact that even partners are open to junior staff
challenging ideas and participating in creative thinkingwhich seems to be the norm
in this office and across the system. Acolleague chimes in, BCG is an intellectual
meritocracy. I have debated and argued my perspective as vociferously with senior
VPs as I have with fellow consultants, and achieved results based solely on the
quality of my idea. According to another source, at BCG its easy for a junior
person to get noticed for value of his ideas and contributions (entry-level consultants
are frequently the talk of VPs around the VP water cooler).
Of course, all of this intellectual exchange is not for the timid. BCG is a great place
if you are comfortable with your own skinyou have to enjoy being challenged from
above and below, another insider reports. And not everyone likes an aggressive
approach, one employee suggests: People are nice on the surface. The staff at the
consulting level is great. However, some project leaders and managers are very
aggressive and competitive.
Wait, life isnt all about work?
Most BCGers report being satisfied with the level of work/life balance theyve
achieved at the firm. Aconsultant cheers, Im amazed at BCGs recognition that life
is not all about work. We do work very hard, but making time for my personal life,
while not effortless, has never been a problem. BCG makes a great effort to
balance work and life, says another insider, adding, Its a demanding career but
with opportunity to set boundaries and maintain balance and priorities. People are
encouraged to discuss outside priorities to help find ways to balance a rich life
outside work and a rewarding, challenging career.
Work hours at BCG are said to be better than most premium consulting firms, but
not ideal, of course. While workweeks reportedly average between 60 and 70 hours,
theres lots of variability, a source reports, adding that a normal week involves
long days during the week, but no weekend work or just a few hours from home.
Some weeks are very light (9 to 6, Monday through Friday), and some weeks can be
very busy (90- to 100-hour weeks happen occasionally). It helps that case team
discussions usually involve some high level one-week and two-week look-ahead
planning, to give greater visibility into short-term workflow, an insider suggests.
Raising a red flag
And management reportedly keeps an eye out for signs of overwork, sources say:
The office makes a big effort to track hours worked per week and make sure that
managers promote balance. Managers ask people to go home and are very
conscientious about peoples personal priorities, says a source. Acolleague agrees,
Working longer than 55 hours per week is closely monitored and managers and
officers are measured on this metric (another source reports this red flag number
2006 Vault, Inc. 78
to be 65 hours in a week, or an average of 60 per week over a three-week period).
One insider warns that this monitoring is well intentioned, but could stand some
improvement, as it tends to be on a lag basis, not lead basis. Notably, an associate
reports, the number of hours and interesting content tend to correlate: The more
interesting the content of the case, the more work intensive it will be.
Flexible balance
The happiest BCG consultants seem to be those who are comfortable with flexibility,
as one source reports, Face time and hours worked means absolutely nothing
(especially in this office). As long as I am delivering quality work, driving the
intellectual agenda and working well with the team, I have the flexibility to do other
things, as needed (though they expect the same flexibility from me if things get crazy
and my help is needed). A source agrees, The firm is not interested in face time
but rather results. I come in late and leave early as long as I feel comfortable with
what I deliver.
Not everyone has arrived at a happy balance, though, some consultants suggest.
Ultimately work/life is up to the individual. However, projects are often not scoped
as well as they need to be upfront, putting extreme pressure on teams. We dont push
back on the client enough, a consultant complains. A colleague notes that it has
become a badge of honor to work 70-hour weeks and generate stuff over the
weekend. To maintain a work/life balance, another insider reports, Sometimes I
have to sacrifice sleep, exercise time or something else during the week so I dont
have to work on the weekend.
Home on Fridays
At BCG, travel is office-specific, an insider suggests: In the D.C. office, we
probably travel slightly more than in other offices. You can usually work out a three-
days-a-week situation for many cases. You are always home on Thursday night and
work from the office on Friday (unless you choose not to). On the other coast, a
Bay Area consultant reports that every client Ive worked for has been in the city of
San Francisco, so just a short cab ride from my home or office. This obviously isnt
the norm, but Im proof that it can happen. The source adds, In general, Ive found
more people to be local than I expected. BCG has a reputation as a high travel firm,
but were lower travel than McKinsey because of our staffing policy (local versus
regional), and I dont think we travel more than Bain.
How much the average BCGer travels is pretty much the luck of the draw, asserts
another insider: As with all consulting firms, for some teams the travel is hellish and
for others (like me) the travel is reasonably civilized and manageable. For those
who do have to travel, the firm is reportedly accommodating and incredibly
reasonable about special scheduling needs and tries to ease the burden. According
to one consultant, For my current client engagement, we fly charter to make travel
easier for the team.
Tough break? Too bad
Insiders are fairly split as to just how up-or-out BCGs promotion path is. Some
sources tell us its strictly up-or-out, with one insider explaining, It is an up-or-out
model, but performance is measured on an absolute scale, not relative to your class.
The firm is very, very selective, says a colleague, and another remarks that if you
are not progressing, you cant stagnate. The firm contends with these assertions,
stating that it has a flexible career track and a strong commitment to working with
staffers to accommodate personal situations. There are few surprises, though, as the
ones on the way out know where they stand all along, and choose to leave on their
own, another insider says.
An enlightened approach
Other sources see the advancement path differently, calling it a flexible up-or-out,
or, in the words of one insider, an enlightened up-or-out. As a source puts it, BCG
is very selective but also supportive. There is communication on how you are doing
at all stages and lots of opportunity to assess how you are doing in your current role
and how you are progressing to the next. There is also great support if you choose,
or BCG chooses, that its time to transition out. Acolleague agrees, We only hire
people we think could be partners and then we give them all the resources they need
to be successful. All activities are aligned around this modelstaffing, training,
career development, evaluations, mentorship, etc. Up-or-out at BCG is a thing of
the past, declares another source. There are numerous types of internal job
mobility, and graduate degrees are never a prerequisite for promotion. On top of that,
we have quicker promotion timelines than both Bain and McKinsey.
As for the timetable, a source explains, Typical advancement is two years from
consultant to project leader, another two years from PL to manager, and
approximately three years from manager to VP. Sometimes, the steady pace of
2006 Vault, Inc. 80
promotion can make consultants feel like theyre in lock-step with the rest of the
class, an insider adds.
Watch the reputation
Higher-ups at BCG are described as incredibly caring about personal
developmentbut tough, very smart and good at their jobs, and nonhierarchical,
open-door type folks. In fact, says one insider, partners stop into my office more
frequently than I stop into theirs. Since supervisors play a big role in career paths
at BCG, its smart to get to know them, another source says: Your reputation at BCG
is what determines whether you will be successful. You need to develop trusted
relationships with managers and partners.
That said, you are bound to come across a number of managers and supervisors
during a span of time at BCG. We do not have supervisors in the traditional sense
at BCG, explains a consultant. You have a manager/partner who is in charge of a
given case, and so you report to him/her when you are on that case. Then you move
on to the next. Another source tells us, Unlike any of our competitors, BCG has
an office-centric staffing model. This means consultants work almost exclusively for
partners in their own office who have a vested interest in providing long-term
development opportunities and ensuring a good work/life balance.
Make your mark
As for interaction with client execs, one source raves, At BCG, you start making an
impact immediately. I remember in my first year sitting at a client board meeting and
the CEO of a $10 billion company asking me, what do you think? Wowwas that
a thrill, and I felt like a made a real impact. Acolleague reports helping lead small
discussions with the CEO, the CFO, most of the VPs one-on-one and many directors
at a client company, adding, Its terrific exposure to top management, and my
project leader and manager help create opportunities for me to interface with the
senior team. But as another source observes, Ive seen layers of engagement,
which implies that BCG VPs get to talk to the top people at the client, BCG managers
get to talk to the next level and so on, until consultants interact with people working
in operations.
Real moneyplenty of it
You wont hear too many complaints about compensation from BCGers. BCG is
the most generous firm in terms of cash compensation, insists a consultant. We pay
better in terms of the total base, plus bonus, especially when profit sharing is factored
in. Just how generous is it? For starters, employees have historically received 15
percent of their total compensation free and clear in their retirement funds at the end
of each year, with no matching funds requiredand its vested immediately. Most
recruits dont appreciate the profit sharingits real money that you take when you
leave, an insider comments. Thats in addition to bonuses, which can reach up to
100 percent of a consultants base compensation in some cases. Compensation is
transparent at all levels except partners. Although I wont know my specific
performance bonus in each year, I can determine how much money Ill make in each
of the next five years, a source says.
On top of that, BCG has a strong health benefits package, including coverage at no
cost for family members. Our health care plan is by far the best one that Ive seen,
raves a consultant. My friends and family have never seen a health care plan this
great. My co-pay is $5 for almost every kind of doctor visit. I pay at most $5 for
brand name prescriptions (its free if I purchase them online).
Ski trips, Coach purses and more
Educational benefits include a paid MBA (with stipend and computer) for high-
performing BCG associates. Other perks are appreciated at BCG, too, including
season tickets for sporting events, paid cultural events, unlimited, free back-up child
care, subsidized in-office chair massages and lots of beer in the office fridge, to
name just a few. Hard workers are richly rewarded: I got an iPod for working five
consecutive 100-hour weeks, says one insider, while a colleague reports receiving a
Coach purse as a thank you from my manager after a particularly tough case!
Social opportunities abound, too, including office golf outings, a winter ski trip and
an amazing Christmas party. One consultant appreciates the fact that significant
others (and usually children, too) are included in every social event BCG offers.
BCG recognizes that it demands a lot of its staff so it ensures that social time is not
also time away from family. In addition, sources say, We are not thrifty when it
comes to travel, and if you dont want to fly home for the weekend, you can use
the budget to do whatever you want (go somewhere else, fly a friend down).
Regional flavors
Offices vary throughout the BCG system. One consultant notes that the New York
office has a good culture, but the size means that it can be somewhat impersonal. [It]
needs more meeting rooms to allow for more free flowing of ideas and case team
2006 Vault, Inc. 82
interaction. Chicago consultants enjoy a great space complete with an activity
room with a pool table, ping-pong table, foosball table and a large-screen TV. In
Los Angeles, youll find a gorgeous, newly designed office. Aeron chairs
everywhere, lots of plasma TVs for video conferencing and the all-important
espresso machine. In most locations, sources report that offices are the normnot
cubicleswith some offices shared so that associates can draw on more senior
consultants expertise.
Serious, purposeful training
Training at BCG is offered through both formal and informal channels, sources say.
BCG performs both seriously and purposefully, says a consultant, adding,
Targeted assignments and active coaching on the job make up the informal part.
Formal classes are of high value and required. You probably learn more on the job
than you do in formal classes, says a colleague, who adds, However, most people
dedicate about two weeks per year to formal classroom/role-play style learning. A
third source reports, Our formal training is really quite excellent, but I would say I
learn the most informally through my case teams. We learn everything from Excel
and Access, to slide writing and presentation. We take training quite seriously here.
Entry-level training is not to be missed for case work.
Developing female role models
At BCG, We are doing a great job of ensuring women are successful at this job, a
source reports, but many women still choose to leave, largely due to work/life
balance issues and some fundamental old boys network sentiments that still exist in
the profession. The source is quick to add that this is not a BCG-specific issue.
Indeed, a colleague says, We bring in lots of qualified women, and they get
promoted just as quickly as their male peers. (In several cases of real superstars,
much faster.) Somehow we cant hold onto them, though, including the superstars.
A female staffer frets that there are not many female role models who I would like
to be, though this is not so much a gender issue as a generational one. In any case,
the firm offers targeted activities for women to enhance their careers, and the New
York office has many female partners, sources report. But the firms flexible work
arrangements are a boon to some women. One shares her own experiences: I have
worked part time since the birth of my first child (now nine years old); I have taken
long maternity leaves; I have moved into nonclient-facing roles at times; I have
defined my own staffing parameters to limit travel at certain times.
We are all a minority
When it comes to minorities, BCG is largely a meritocracy and I have always felt
that what I say is what matters, not my ethnicity, a consultant tells us. However,
the number of underrepresented minorities (African-American, Hispanic American)
are quite low in spite of a diversity initiative and practice. Other minorities are
generally better represented. Still, another source says, I dont even think people
think in terms of minorities in the New York office. Every one of us is a minority
and there are people from the entire globe. The firm is said to be very aggressive
at finding opportunities for minorities, and boasts specific formal diversity
initiatives with support from the highest levels in the organization.
BCG varies when it comes to the comfort level of gay and lesbian staffers. One
employee reports feeling completely comfortable in all situations, being open at
BCG: office events, recruiting, with clients, and a co-worker notes that people in
leadership positions are openly and comfortably gay. But as another source opines,
I still think management could do more to welcome all. According to a consultant,
Out of respect for individual privacy, it seems a dont ask/dont tell policy is in
effect. As long as people dont behave outlandishly, a wide range of behavior is
accepted.
High-impact community service
BCG reportedly matches staffers charitable donationsbut the firms community
spirit doesnt end there. BCG also has an unparalleled commitment to pro bono,
says a consultant, who adds, I have been involved in many high-impact
engagements, and joined the board of directors of a major organization as a result.
Not everyone gets to participate, but highly motivated folks can usually find a way
to get involved, a colleague adds. On top of pro bono initiatives, hands-on efforts
are numerous, insiders say. Just last fall we had a whole day where the office shut
down and we went to a construction site and built homes for low-income families. I
was impressed to see the number of partners that supported the efforts. There was a
real sense of giving back to the community, reports a source.
2006 Vault, Inc. 84
BCGs culture is one that
cherishes the individual.
Boston Consulting Group insider
2006 Vault, Inc. 86
131 Dartmouth Street
Boston, MA 02116
Phone: (617) 572-2000
Fax: (617) 572-2427
www.bain.com
LOCATIONS
Boston, MA (HQ)
PRACTICE AREAS
Change Management
Corporate Strategy
Cost & Supply Chain Management
Growth Strategy
IT
Mergers & Acquisitions
Organization
Performance Improvement
Private Equity
Revenue Enhancement
THE STATS
Chairman: Orit Gadiesh
Managing Director: Steve Ellis
2006 Employees: 3,200
UPPERS
Interesting, fun, down-to-earth,
supportive people at all levels
A huge investment in training and
people development
Less travel than other firms
Bain opens doors for people (I am
very impressed with the jobs that
people have taken when they have
left)
DOWNERS
Less ability to choose particular
cases or to focus in one industry
until promotion to manager
There is a certain regimented way
of looking at classic problems
Smaller size and office-based
staffing can mean getting the type
of case you want can be difficult
Teams can sometimes be too
small and insular
EMPLOYMENT CONTACT
www.bain.com/join
Bain & Company
V A U L T
P R E S T I G E
R A N K I N G
3
THE BUZZ
Fun McKinsey
Top private equity guys;
aggressive and macho
Arrogant; stuffy
Bainiacsrah rah environment
THE SCOOP
Friends in high places
Bain may not have the manpower of some of its strategy consulting peers, but the
firm enjoys a stellar reputation. Visit its web site, and youll see a host of accolades
from the press and satisfied clients. CNN has deemed the company the elite of the
already elite field of management consultants, while USA Today has declared that
Bain delivers results not theory. Over on the client side, Bain boasts coveted
testimonials from satisfied clients such as Michael Dell and Charles Schwab, praising
the firms work. The firm notes that its clients have outperformed the market by 4:1.
Its satisfied employees add to the Bain luster, toothe firm consistently ranks among
the top consulting companies to work for on Consulting Magazines annual list.
Born in Boston
Bains engagements are divided between small- and midsized companieswith
roughly 40 percent of its engagements coming from this demographicFortune 500
and private equity clients. It helps that Bain is a walking advertisement for its own
strategy savvy. Founded as a three-person operation in Bill Bains Boston apartment
in 1973, the company has gone on to serve more than 3,300 clients in virtually every
industry, as Bain puts it. And that three-person shop has grown into an elite stable
of more than 3,200 employees, working out of 32 offices in 20 countries.
Churning out champion CEOs
Bains ambitious alumni also have boosted the firms profile in the business world.
Former Bainies (as the firms consultants call themselves) include Meg Whitman,
head of auction pioneer eBay, former Bain director John Donahoe, who works for
Whitman as president of the eBay Business Unit, American Express CEO Ken
Chenault and Dell CEO Kevin Rollins. Other ex-Bainies have gone on to exec
positions at Best Buy, Intuit, Pep Boys, Oakley and Habitat for Humanity. The firm
also attracts influential industry insiders, like former Vodafone head Sir Christopher
Gent, who joined Bain as a senior advisor in 2004.
The firms current leadership enjoys a high profile, too. Chairman Orit Gadiesh, who
joined the firm fresh out of Harvard Business School, has led Bain since 1993. Her
alma mater has described her as a veritable Renaissance woman. Steve Ellis, who
serves as worldwide managing director, was promoted in March 2005 when Donahoe
Bain & Company
left for eBay. A Stanford MBA, Ellis co-founded Focus, Inc., a Silicon Valley
consulting firm, before coming on board at Bain. The firm continues to promote
from within, having named 28 new partners in July 2006 alone. Other notable
promotions in recent months have included Dale Cottrell, tapped to lead the firms
Australian practice; Peter Lane, named head of the Dallas office, overseeing Bains
business in Texas, the Southwest United States and Mexico; Chul-Joon Park,
appointed head of the firms Asia-Pacific Private Equity Practice; and Eduardo Hutt,
named managing partner and head of Bain Mexico City.
Its all in the brand
Bain is known for its branding expertise, andas evidenced by its elegantly self-
promoting web siteit has applied these lessons to its own business. In its marketing
publications, Bain has promoted innovation and aggressive leadership, arguing that
there are no tired brands, just tired managers. In 2003, the firm undertook its own
aggressive and innovative rebranding strategy, a six-figure investment that involved
top designer Wally Olins and design firm Circle. The firms brand theme became
helping to make companies more valuable. Akey feature of the theme is the firms
value of True North, reflected in its logo, which is meant to indicate that the firm
serves as an unchanging point of reference and grounding, despite shifting
conditions and turbulent environments for its clients.
From the world of capital
Another area in which the Bain brand is well known is in the financial world. In fact,
the firm was the first consultancy of its kind to establish a private equity practice.
The practices services include due diligence, IPO preparation, portfolio profit
improvement and revenue enhancement, geared toward leveraged buyout and
venture capital firms. Bain Capital, a successful venture capital firm founded in 1984
by Bain partners (including Massachusetts Governor Mitt Romney), has around $27
billion in assets under management. Bain Capitals funds include private equity,
venture capital, public equity and leveraged debt assets.
to the world of charity
On the opposite end of the spectrum from its hard-charging finance offspring, Bain
also has founded a nonprofit group, which retains ties to its parent firm, though it
operates as a separate entity. The Bridgespan Group, founded in 2000, offers fresh
management strategy approaches for clients in the nonprofit world, such as the Bill
Bain & Company
2006 Vault, Inc. 88
& Melinda Gates Foundation, the National Resources Defense Council and the
Woodland Park Zoo. Bridgespan draws some of its manpower from Bain, as
approximately 15 percent of Bains consultants rotate into Bridgespan from the
parent consultancy for six-month rotations. The rotation, Bain says, provides
nonprofit clients with a fresh perspective, as well as giving Bain consultants valuable
experience in the sector. Bain consultants also regularly turn up at the yearly
Economic Forum, held in Davos, Switzerland.
Bain has also made a name for itself in the pro bono world. In California, the firm
has teamed up with the United Way of Greater Los Angeles in a program called
Bridge the Gap, which aims to develop a strategy and implementation plan for a
major Individual Development Account (IDA) matched savings strategy that helps
the working poor save for appreciating assets. The program joins nonprofits,
businesses and the government to aid 8,500 low-income households in L.A. County,
and provides a model for how to extend the benefits of IDAs through a large-scale
U.S. system. In Atlanta, Bain has provided a wide range of pro bono support,
donating nearly $7 million in professional fees and hours since 2001 to help improve
the finances and operations of the city. Bain also provides support to foundations
such as Fulbright, the Voices Foundation and the Wellbeing Trust.
Software, diamonds and other gems
Aside from publishing testimonials from satisfied clients at Schwab, Dell and the
like, Bain keeps its client engagements close to its vest. Recent engagements have
included work on the integration of Symantec and VERITAS Software, in addition to
advising United Airlines on its partner carriers. Other clients whose names have been
floated in the press include Ford, diamond giant DeBeers, Starbucks, Kroger and
Continental Airlines.
Entering India (finally)
Bains growth worldwide has progressed slowly but steadily. An article in Indias
Economic Times in March 2006 described the firms launch of its Indian operations.
The article quoted Managing Director Steve Ellis, who argued that the firms
relatively late arrival in India wasnt a concern. Bain clients, he said, are asking us
what role India can play in their strategy. Our private equity clients are asking us the
same questions as well. We believe that there is an opportunity for us to grow the
business here and we are successfully working with alternative ways of servicing
certain parts of our business process and thats been very encouraging for us.
Bain & Company
Translation: Even a strategy-oriented firm like Bain is eyeing the outsourcing pie.
But Bain isnt coming late to the party, partner David Shpilberg told the paper in
November 2005: We are not entering India as an afterthought, our objective is not
just to have an office here, our objective is to integrate India into the global look of
how we serve our clients. In July 2005, the firm quietly opened the Bain Capability
Center in Guragaon, to provide business support for its own operations. In summer
2006, the firm opened a full-fledged Indian office in New Delhi, which serves local
and global clients with all manner of consulting services. And though the firm only
recently opened an office in India, it has been servicing clients in that region for the
past 10 years from its Singapore office.
Addressing the EU
Business is heating up for Bain in Europe, as well. In January 2006, the firm
announced that one of its superstar consultants, bestselling author Chris Zook, would
be relocating to the Amsterdam office, where he would preside over Bains
investment in expanding its European capabilities. Named one of the worlds Top 25
Consultants by Consulting Magazine in 2005, Zook heads the firms global strategy
practice. The Oxford- and Harvard-educated Zook made a name for himself with his
core approach to business profitability, explained in his business bestsellers Profit
From the Core and Beyond the Core: Expand Your Market Without Abandoning Your
Roots. These books, which analyze how companies can locate and profit from their
core business, are required reading for anyone studying up on the Bain approach.
The 20-year Bain vet has a third book due in spring 2007.
Learning loyalty
Bainies are a prolific bunch, producing tomes that have become must-reads in both
the B-school and popular business arenas. The firms most recent blockbuster book
was the 2006 The Ultimate Question: Driving Good Profits and True Growth,
authored by Fred Reichheld, founder of the firms loyalty practice and author of
Loyalty Effect and Loyalty Rules! Called the high priest of loyalty by The
Economist, Reichheld argues in his latest book that too many companies are hooked
on bad profitsprofits earned at the expense of customer relationships. Whenever a
company makes money by mistreating customers, those bad profits generate ill will
that will ultimately destroy its growth prospects. Companies must address the one
question that will determine their future: Would you recommend us to a friend or
colleague? Pinpointing loyalty as the key to sustainability and growth, Reichheld
developed the Net Promoter Score
, which promises a clear measure of an

Bain & Company
2006 Vault, Inc. 90
organizations performance through its customers eyes. It has been adopted by
leading companies like GE and American Express.
Another book worth checking out is Bain Partner David Hardings 2004 Mastering
the Merger: Four Critical Decisions That Make or Break the Deal. Studying the
M&A practices of 1,700 companies over a span of 15 years, he examined why 70
percent of major deals fail, and uncovered a path to merger success. Frequent
acquirers, he found, outperform those who do fewer deals, and the most successful
acquirers start with small deals, build their M&Aexpertise and ramp up.
In the know
Bains studies and surveys are frequently picked up by the business press, with
Bainies called upon regularly to provide commentary to The Wall Street Journal,
BusinessWeek and other leading media. In February 2006, the firm released a survey
showing that a majority of CEOs and senior executives believe that their
organizations are unprepared to achieve their growth targets over the next five years,
with 83 percent of execs admitting that their companies have significant skill gaps in
key areas such as customer knowledge and service. In January of that year, Bain
published research indicating that organizations that deliver superior customer
experiences more than double their industry growth average, while those who earn
bad profits by failing to deliver on promises may reap short-term rewards but suffer
customer defections and create detractors, with a long-term loss as a result. The firm
also has regularly published articles in academic reviews, such as Harvard Business
Review, MIT Sloan Management Review and World Business, ranging in scope from
innovation, to China, to decision making.
Bain also publishes the biennial Management Tools, a global survey on the use and
effectiveness of management tools among senior executives. Headed by Bain
director Darrell Rigby, the survey has been cited in Forbes, the Financial Times, The
Economist and other business pages. The 2005 survey found that technology-
influenced tools are experiencing a renewed boon, with the widespread adoption of
technologies that facilitate customer relationship management, supply chain
management and knowledge management. In fact, Bain revealed, only strategic
planning surpasses CRM as the most widely used management tool worldwide. The
study also revealed that customer focus is seeing a surge in popularity, too, while
there is a widening gap between companies need for innovation and their ability to
deliver it.
Bain & Company
Posh purses
One of Bains areas of expertise is the luxury sector. In May 2005, the firm
announced the winners of its Bain Business of Luxury Awards at the inaugural
Financial Times Business of Luxury summit, held in Shanghai. The awards,
recognizing luxury goods companies for their performance, went to firms including
Burberry, Dolce & Gabbana and Chanel. Louis Vuitton went home with the Luxury
Brand of the Year award for the best overall strategy and execution.
Local initiatives
Bains staffers arent afraid to get their hands dirty to help out their communities.
Community activities usually are coordinated on the local level. Down under,
Australian Bainies pitch in for an annual Community Impact Day, before the holiday
party in December. (Other offices generally hold their Community Impact Days
during seasonable weather, depending on their hemisphere). The Boston office has
formed a long-term partnership with Charlestown High School, helping to develop
and implement training through leadership, teamwork-building programs and
business-related team teaching projects. In the U.K., Bainies participate in programs
focused on education, homelessness and the volunteer organization Capital Cares.
The Bain way
Bain sends its new consultants out to the field as soon as possible. Just out of college,
associate consultants get assigned to case teams right away, performing research and
data analysis and interacting with the client. Consultants, who usually have MBAs
or graduate degrees, make recommendations after looking at clients big-picture
problems, studying market dynamics, financial returns or how competitors are
performing. They make and hone recommendations and get the clients buy-in.
The firm says it offers a down-to-earth, friendly and approachable environment for
all staffers. On a typical case, a partner, a manager and a number of consultants and
associate consultants team up. In an effort to create generalists before seasoned
consultants tie themselves to one area of expertise, the firm encourages consultants
to work on a range of project types (such as corporate strategy, and mergers and
acquisitions) across a variety of industries. However, new consultants who possess
the expertise and interest in a particular industry may focus on that industry from the
beginning of their Bain career.
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2006 Vault, Inc. 92
GETTING HIRED
Best and brightest at Bain
How hard is it to get on board at Bain? Bainies, at least, think its a tough process.
Were as selective as McKinsey and top-tier I-banks, more selective than Booz
Allen, Monitor and A.T. Kearney and much more selective than corporates. Only
private equity and hedge funds are more selective, one consultant says. At Tuck,
Bain is the first choice for students going into consulting. Its very difficult to get a
job offer, agrees a colleague. And another insider chimes in, Bain is very selective.
Recruiting is primarily from top Ivy League institutions. We are almost too
selective at times, a consultant adds. Our interviews are tough, and if you dont get
through the cases, you wont get an offer, no matter how impressive your resume
might be. Some firms make their interview process easier or harder depending on the
perceived caliber of the candidate. We are a complete meritocracy, for better or
worse.
The Bain ranks
Bain typically starts recent undergrads off as associate consultants. The firm
describes ACs as a diverse group of highly-qualified people with extremely broad
backgroundsfrom hard science to literature. Candidates with advanced degrees,
including MBAs and most PhD and JDs, join as consultants. The firm notes that
demonstrable business experience is important for PhDs, JDs and other special
candidates. Experienced hires with excellent academic backgrounds, records of
success in their recent experiences and relevant business and analytical experience
may enter as either ACs or consultants. The firm explains that as new Bain
employees, experienced hires have the same training, promotion and work
opportunities that are available to any of our professional staff. All U.S. Bain
offices, and some international offices, offer summer internships for those in
undergrad and B-school. Students and soon-to-be grads interested in opportunities at
Bain should first visit the firms web site, where they can look up recruiting
procedures for their school in an online index, and fill out an online application.
According to staffers, the interview process varies widely by office, and is said to be
different for undergraduates and MBAs, with a longer process for undergrads. For
MBAs, the process goes directly to interviews (three to six), a source says. In
general, the firm explains that in the U.S., MBAs can expect two cases in the first
round and two cases and one resume interview in the second. Second-rounds are
Bain & Company
primarily on campus, but may also be held in the office. Undergrad and MBA
interviews are similar, but differ primarily in complexity. Case discussions go much
deeper with MBAs than with undergrads, who typically skip the resume interview
stage of the process. One U.S.-based insider reports from his perspective: Bain has
two first-round interviews at the undergraduate campus, three second-round
interviews at its offices, and then two to three third-round interviews at its offices.
All interviews are case-based. MBAs typically get a first round of two case
interviews and a second round of two cases and a resume interview. All of these
interviews are conducted by senior managers and partners, another consultant
explains.
Interpretation, insight needed
As for those cases, a source reports, We try to take real business problems that we
face with our clients on a daily basis and put them in front of hiring candidates.
Quantitative skills are importantbut you dont need a calculator. A consultant
reports, I have asked recruits to evaluate whether it makes sense for an insurance
company to offer banking products; how a manufacturing company can improve
results at an underperforming plant; and whether an express shipping company can
justify a new capital investment, among others. Cases are written by the
interviewer and reviewed by management, another associate consultant states.
New cases are required every year. They can range from new business ideas to
portfolio decisions to process improvement. The only common element is the need
for analysis and plenty of room for interpretation and insight. In addition, a
colleague notes, Resume interviews often take your work experience and turn them
into cases (e.g., what were the strategic issues your old employer was facing?).
Its not enough to be smart!
Of course, While you have to crack the case, you also need to show energy and
professionalism, a consultant advises. Whenever I interview, I always look for
excitement. Lots of people are smart, but I dont want to work with them all or put
them in front of clients. Acolleague agrees, Being a fun and well-rounded person
is important. In terms of special questions to expect, adds a source, just make
sure you have a compelling and customized story about why you want to be a
consultant at Bain.
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2006 Vault, Inc. 94
OUR SURVEY SAYS
Universal appeal
Bainies cheer the consistent quality of their firm, with a team spirit thats consistent
in offices around the world. As one consultant puts it, Bain has an amazing culture
that is remarkably similar across offices. Ive worked in several offices across the
Bain system and in each have found the same caliber of people and atmosphere of
fun and support. A colleague agrees: Having worked in eight different offices
around the system, the culture really is universal. There hasnt been a single place
where I didnt immediately feel right at home. The two most important
distinguishing characteristics of the culture, to me, are its consistency around the
world in all Bain offices, and its uniform warmth and friendliness, another insider
chimes in.
What seems to define this universal culture most of all is a certain personality type,
insiders suggest. Bain consultants are described as down-to-earth, friendly, smart,
engaging, fun-loving and unpretentious. Bainies are very results-driven, but also
down-to-earth and approachable, says an associate consultant. The total absence
of corporate politics is also remarkable for a firm this size, and highly appreciated,
another insider observes. In fact, adds a source, We are, indeed, very serious about
our work, but not too serious about ourselves. In a recent feedback session, a large
group of clients consistently described us as humble in our approach to working
with them; we are very proud of this.
Friends and family
As much as clients enjoy working with Bain, Bainies seem to truly enjoy each other.
When I became ill recently, I had at least five different Bainie friends come visit me
in the hospital and at home. When you join Bain, you become a part of the Bain
family, a consultant says. Some sources speculate that this bonding may have to do
with a young crowd at Bain: We have a relatively high proportion of undergrads
relative to BCG and McKinsey. This gives us a more lively office culture, one
consultant notes. Acolleague agrees, stating, This is a very young firm. Half of us
are no more than three years out of school and another quarter is under 30. Most of
the time were working, it feels more like a study hall or college library than a
corporate office. Friendship does not end at the elevator, but spills from Bain
continuing outside the office after work. I can honestly say that several of my best
friends are in this office.
Bain & Company
Of course, this translates into a lot of socializing, and according to one associate
consultant, The toughest part is finding enough time to attend all the events. And
as another consultant puts it, Bainies interests are broad, as are their definitions of
fun: For some it is parties, for others sports, for others music. We have a nice range
of people. From the slightly stuffy to the completely casual. From the quiet to the
loud. The firm adds that all of its extracurricular activities are optional and that
many of the older consultants opt out to spend time with their families and/or explore
personal interests.
Tracking workaholics
Work/life balance at Bain is eased somewhat by the fact that managers and partners
are tracked on the hours their teams work, with a view to fixing awful projects before
they get out of control, a source notes. Work/life balance is achieved on the six-
month time frame, rather than being balanced every week, but it is a priority and the
management team doesnt let it get out of hand, another insider says. The hours
are closely monitored by the leadership teaman AC is responsible for producing an
hours dashboard each week with key metrics. I have had VPs e-mail me to check that
my hours feel under control when they notice they start peaking, a colleague agrees.
But perhaps the biggest boost to balance at Bain is, in the words of one consultant,
the policy that if you get the work done, it doesnt matter when or where you do it.
As another source puts it, The key here is that there is no face time, and longer hours
are not rewarded. Bains more results-oriented culture reduces face time to zero.
That enables you to work when you want, even if not always how much you want,
and that makes a big difference, agrees a consultant. It is extremely rare to not be
able to do something. If I want to play hockey on a weeknight, everyone is
supportive. People care about you getting your work done, there is no fixation on
where or at what time you do it, a colleague chimes in.
The firm also goes the extra mile for consultants, sources suggest. I have seen a
movement toward a kinder, gentler Bain in our office over the last five-plus years.
There is typically more consideration paid to the trade-offs people make in order to
do our job. Alternatives to standard career models are offered or considered more
frequently. As a new father, I had no problem taking three months of leave when my
daughter was born, a consultant says. A new mom agrees: I started working part
time after maternity leave, working on one project instead of two. This gives me
greater flexibility, while also allowing me to pursue a consulting career. The number
of female managers and partners who work part time also demonstrates that this
work/life choice will not be penalized.
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2006 Vault, Inc. 96
No camping
Bainies tell us that the firm works hard to aggressively manage travel. Bains
refusal to insist on face time means we go to the client when we need something
(usually data) or when we have specific output to presentwe dont camp out to
show our presence, a source explains. We do not have a policy of a set number of
days per week at the clientif you need or want to be at the client site, you go there,
otherwise not, agrees a colleague. One associate consultant remarks, I have been
really surprised at just how minimal the travel requirements have been. In nearly
three years, I have only had one five-month case that truly qualified as a travel case
and the rest have only required rare one- or two-day trips.
Customized travel
Still, one source says that travel requirements increase with seniority, and there has
been (in our office) a move to spend more time out of the office. However, our
culture still dictates that teams should find ways to minimize travel and maintain
flexibility. With more seniority, I can also manage when/how much I travel more
actively. Another insider explains that travel at Bain is on the rise as we do more
long-term transformational projects. Still, our local staffing model and legacy case
mix still skews toward projects with minimal travel. Travel is catered to the
individual, another insider reports. If you are into it, you push for travel cases and
will usually get it. If you dont want that, they try to accommodate you, too. Ive
wanted to travel and have been staffed all over the world.
The ups and downs of wireless
Many sources agree with one consultants assessment of Bains workload: Hours are
highly variable from case to case and week to week within a case. Ive rarely worked
more than 80 hours, and rarely fewer than 50. Average hours are about 55 hours per
week, almost never working on weekends. My weekly hours are highly variable
but there are few surprises. Unlike when I worked in investment banking, I can
predict my work hours with a high degree of accuracy at the beginning of the week,
another source explains. However, a colleague notes, With the advent of reliable
connectivity (BlackBerries, cellular modems and company-sponsored home
networks) were spending a lot less time in the office and more working from home.
The flip side of this is a growing culture of always on where I expect e-mail
responses quickly, even in off hours.
Bain & Company
Bainies report that assignments can be somewhere between two weeks to 14
months, and a consultant explains that not being assigned to a client is not
necessarily a bad thing. Take the time as free vacation and enjoy it. There is
absolutely no pressure for you to always make yourself billable.
Typical timelines
Generally, Bainies agree that advancement is not up-or-out at the firm, though
people often leave around key hurdles since their trajectory with the firm is typically
well known before they hit these promotion points, one consultant says. Acolleague
provides more detail: With the firms growth and standards, there is very little
deviation from the normal promotion timing. Bainies right out of college are
promoted from associate consultant to senior associate consultant after two years.
After a year as an SAC, most either go on to other things, go to business school or
stay for direct promotion to consultant. In some offices, a consultant (typically post-
MBAstart) is unofficially promoted to case team leader in their second or third year,
where they act as the de facto manager. Official manager promotions happen in two-
and-a-half to three-and-a-half years. Managers typically work for three to five years
before being promoted to partner.
On the top tier
Insiders see Bains compensation package as sitting comfortably at the top tier of the
industry. We just match McKinseys compensation. I wouldnt say that this is far
in excess of the average, but is definitely the highest in the industry, says a source.
An insider adds that salary offers for direct school hires are not negotiable; everyone
in an office gets the same package. Dont let that scare, you, though: The
compensation environment has improved markedly since my class started in 2003.
Incoming classes can expect very attractive packages, a consultant says.
In addition to salary, Bain provides profit sharing and a share of the firms equity
investments for managers and above, while consultants receive additional
bonuses for years with particularly high utilization, indicates a source. And other
perks abound. For one, an associate consultant explains, Packages to attend
business school are attractive. A two-year commitment is required but the total
package (in the past) amounted to two years tuition plus a large education stipend,
well in excess of the signing bonus for a new consultant. Other perks include a free
cell phone and home Internet access, discounts on home office equipment and other
tech freebies.
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2006 Vault, Inc. 98
Unreal health coverage
Several Bain employees point out the valuable perk of having great health coverage.
As one consultant tells us, Last year my wife, another Bainie, had an accident that
made her unable to work for three months. Not only did Bain pay 100 percent of her
salary during that period, but they allowed me to also take a month off to take care
of her while paying my full salary. Even more importantly, at the hospital I was told,
You have the best insurance we have ever seen. Amonth in the hospital, follow up
surgeries and months of physical therapy have cost us out-of-pocket only $150.
Unreal.
But where Bain really stands out in the perks department is in its activitiesno
surprise for such a social crowd. There are lots of case team events, office-wide
events and class events. Consultants and ACs largely get to decide what these events
will entail. We have an office-wide Iron Chef competition coming up. My case team
is going to the Sox-Yankees game in May. The new consultants had a poker
tournament. To me, these are the best perks, a source says. A small portion of all
revenue is given to each case team to spend on self-planned events. It tends to work
out to a nice team activity every couple of months, another source says. With all
the company functionsthere are weeks that you go without paying for a single
meal, a colleague adds. That being said, the firm remarks that attending Bain social
events is not mandatory, valuing work/life balance both at work and at play.
Gooooaaalll!
Adventurous Bainies also appreciate an annual off-site to a fun location thats
basically three days of partying with your Bain friends, and fantastic global
training programs in great locations around the world (Barcelona, San Francisco,
Miami, Phuket, etc.), insiders say. Active Bainies also enjoy the Bain World Cup,
during which all the Bain offices compete in a soccer tournament and party at
European night clubs together, explains a source, who adds that its a great way to
bond with your office team and get to know the global network of Bainies better.
Bainies looking for a change of scenery also enjoy opportunities to do six-month
transfers to Bain offices abroad, and the opportunity for a six-month transfer to the
Bridgespan Group, the firms nonprofit arm. But for some Bainies, its the little
things they appreciate most: I know this is a small thing but a breakfast selection
at workfresh orange juice, cereal, toast, fruitmeans I get an extra 20 minutes of
sleep every morning and eat at work!
Bain & Company
No hierarchy
At Bain, theres little management/worker tension, as supervisors treat you as a
teammate rather than a subordinate, an insider says. Your supervisors will not only
be your managers, but your friends. I have personal friendships with many of the
partners I have worked with, another source notes. Agrees a consultant, Having
worked in other organizations before consulting, I really appreciate the
nonhierarchical working relationship. The supervisor/report relationship is an
apprentice relationship between someone more experienced and capable versus
someone whos learning and gaining confidence. We have had sit-down sessions
with Steve Ellis, the managing director of Bain worldwide, another insider tells us.
Says a colleague, I am a senior consultant with Bain now. I have been very satisfied
with the effort my supervisors have taken to ensure I have the opportunity to work
directly with the CEO and executive team. These opportunities have really enabled
me to improve my ability to work effectively and persuasively with our clients senior
leadership teams.
In addition, most insiders agree that exposure to top-level execs at client sites comes
early and often. As a first-year consultant Ive been shocked with how much time
they have me in front of the client, and in particular senior client team members, a
source happily reports. We work with very senior clientsthe people you read
about often in The Wall Street Journal, a source says. Agrees a colleague, Even
junior associate consultants have the opportunity to present to high-level clients in
some situations. In many cases, our team has extensive senior exposure, presenting
to VPs and C-level executives.
Luxury cubes
Bains offices are described as centrally located and on nice floors of premier
buildings, and the best offices I have ever worked in for connectedness with
colleagues and for the views. Says one insider, The Palo Alto, California, office is
ridiculously luxurious and extravagant. Its beautifulId live in the office if I
could. Still, Bainies can expect cubicle land: You wont have your own office with
a door until you make manager. This can be annoying at times, but it helps to keep
your energy up. It also helps you to form relationships with people other than those
you work with. One insider grumbles, I really wish I had an office (even if shared).
I cant stand cubes.
Bain & Company
2006 Vault, Inc. 100
Training by Bainies, for Bainies
Training at Bain takes a number of forms, including official, incredibly thoughtful
and rigorous annual global programs in wonderful locations (Miami, San Francisco,
Scotland, Barcelona), a source says. As a co-worker explains, Official training
occurs at least once per year and it is a comprehensive program. Informal training
occurs through mentoring, performance reviews and on-the-job training. The firm
invests heavily in its people. Generally, newbies are sent to Cape Cod or Miami for
seven to 10 intense days of orientation training conducted in small teams, with
follow-up training occurring quarterly thereafter for the next few years, an insider
explains.
I cannot imagine a better training program, says another consultant. We have an
amazing array of formal global training programs for people new to each primary
tenure level. In between these, it is primarily an on-the-job learning experience
punctuated by continuous learning sessions. Since Bain does all its training in-
house, an insider notes They get the best people from around the Bain system to
train. They can teach what it is really like to be a consultant. That is something a
professor or hired trainer cant do well. And on an informal level, Bainies say they
often learn the most from each other. One insider relates, I always remember in my
first few months as an AC when I asked someone for help at about 8 at night. He sat
down, spent an hour with me, and then after explaining everything, he went back to
finishing his own work. So the fact that it was getting late had no bearing on his
willingness to help me out. It really stuck in my mind. Its just a culture of always
being willing to help where possible.
Giving moms a hand
Bain ranks with most of its peers in terms of female consultants, summed up by one
insider as good hiring and programs but poor representation of women at the partner
level. A colleague reports that there is a Bain womens club at every office that
provides specific opportunities for the women at the firm to discuss the issues and
encourages changes to the local offices to make things as female-friendly as possible.
For promotions and reviews, they are treated the same as everybody else (and I mean
that in a very positive way). It helps that the firm makes significant efforts to
facilitate balancing family and work demands such as back-up day care and part-time
work options.
Bain promotes diversity through support of groups such as Blacks at Bain, said to be
a vibrant group with strong leadership. One insider notes that Bain is 100 percent
Bain & Company
meritocratic, and this includes its respect to minorities throughout the process of
hiring, promoting and developing employees. Bain does have some room for
improvement in its recruitment of underrepresented minorities, and may need to be
more proactive if it wants to incrementally improve diversity. Still, a colleague
says, Outreach has stepped up tremendously over the last five years.
Glad to be out at Bain
The firm boasts a very comfortable and open environment for gay employees, a
source says. As a gay male, I am totally comfortable at Bain; more so than when I
worked in industry. Bain provides progressive policies and an accepting culture that
makes decisions like bringing my partner to firm events a no-brainer, says one
consultant. In addition, an insider reports, BGLAD, Bains GLBT organization, is
well populated and very much supported by the firm. The group has annual summits,
sends consultants to the annual MBA Reaching Out conferences and is actively
involved in on-campus recruiting efforts.
An extra 10 percent
You couldnt accuse Bainies of being ungenerous. Community activities include
everything from blood drives to school reading programs, and much more. In
addition to participating with Bridgespan nonprofit activities, Employees are
encouraged to start/participate in Extra 10% which is often pro bono or charity
work, an insider says. Major examples include local office United Way campaigns,
pro bono cases throughout the system and childrens tutoring in at least three other
offices that I have directly witnessed. My personal favorite is that rather than having
an expensive cooking/dinner event, the Toronto office will go to a food bank every
year [and] make dinner together and donate what the event would have cost at a
restaurant, another source reports.
Bain & Company
Bain & Company
Supervisors treat you as a
teammate rather than a
subordinate.
Bain source
8283 Greensboro Drive
McLean, VA 22102
Phone: (703) 902-5000
Fax: (703) 902-3333
www.boozallen.com
LOCATIONS
McLean, VA (HQ)
More than 100 offices worldwide
PRACTICE AREAS
Strategy Services
Business Unit Strategy Corporate
Strategy & Finance Enterprise
Resilience Industry Structure &
Dynamics Strategic Risk Top
Management Alignment
THE STATS
Chairman & CEO: Dr. Ralph W. Shrader
FY 2006 Sales: $3.6 billion
FY 2005 Sales: $3.3 billion
UPPERS
Smart people who arent
arrogant
We live by our core values
Firm is constantly recognized as
top performing
High-impact work with interesting
clients
DOWNERS
A large amount of staffing
decisions are made outside of the
official channels
In many ways the firm is a
dictatorship of the partnership
One firm evolution seems to
bring benefits for the firm, yet not
for the employees
Im not sure if the salary is
keeping up with the level of work
we are doing
EMPLOYMENT CONTACT
www.boozallen.com/home/careers
Booz Allen Hamilton
V A U L T
P R E S T I G E
R A N K I N G
4
THE BUZZ
Government gurus
Lots of travel, good incentives
Fading glory
Divided against itself
THE SCOOP
A powerful player
Packing a one-two punch of both commercial and government expertise, Booz Allen
Hamilton, founded in 1914, is a force to be reckoned with. Based outside of
Washington, D.C., Booz Allen is a power player in the federal arena, but its name is
well known in the private sector, too. Booz Allen boasts more than 18,000 staffers
in more than 100 offices around the globe, and posted a revenue of more than $3.6
billion in 2006.
The firm traces its history all the way back to the dawn of management consulting. In
fact, Booz Allen likes to claim its founder, Edwin Booz, as the patriarch of the
discipline. Just after earning degrees in economics and psychology from Northwestern,
Booz set up shop in Chicago with partners James Allen and Carl Hamilton. As the
Business Research & Development Company, the partners began their business by
advising North American companies such as Goodyear Tire & Rubber and the
Canadian Pacific Railroad on their markets.
Civil service
The First World War changed the tone for the firmafter returning from the WWI
front, Edwin Booz increasingly leaned on his ties to Washington and the public
sector, establishing a tradition of government service that continues to the present.
The firm went global in the 1950s, with a contract in the Philippines and its first
international office in Zurich. A Dsseldorf office, opened in 1985, paved the way
for further expansion in Europe, centered around Germany, Austria and Switzerland.
Booz went global in a big way in the 1990s, opening offices in Abu Dhabi, Bangkok,
Bogota, Frankfurt, Mumbai, Pretoria, Seoul and Shanghai. In 1999, the firm
purchased Carta Corporate Advisors AB, the leading consulting firm in Scandinavia,
with offices in Sweden, Finland, Norway and Denmark, and in 2003, Booz Allen
acquired Gemini Consulting Japan (GCJ), doubling the size of its Tokyo office. The
firm most recently expanded its facilities in Fairfax, Va., in late 2004, investing $133
million and creating roughly 4,000 new jobs. Much of these jobs will support the
firms government business, which has been growing at around 20 percent over the
past several years.
Booz Allen Hamil ton
Techy strategists
Booz Allen bills itself as a strategy and technology consulting firmits engagements
are generally divided between management consulting and IT-related jobs. The
firms services include strategy and leadership, organization and change
management, operations, innovation, sales and marketing, and information
technology. On the strategy side, Booz Allen offers clients corporate strategy and
finance, business unit strategy, industry structure and dynamics, top management
alignment, enterprise resilience and strategic risk services. The firm calls its
approach to strategy consulting strategy-based transformation, focusing on
working with clients to develop solutions for problems created by fundamental
changes in their industry or company. By integrating client executives and staff into
the consulting team, Booz Allen emphasizes client involvement in the transformation
process.
The firms clients come from the top tiers of both the pubic and private sectors. Until
April 2006, Booz Allen has divided its business (and its staffers) into two categories,
with the Worldwide Commercial Business (WCB) covering the classic strategy and
operations consulting arm, and the Worldwide Technical Business (WTB) working
exclusively with government agencies in the U.S. and overseas. Each sector had its
own culture, including separate recruiting and hiring practices. But in September
2005, Booz Allen Chairman Ralph Shrader told The Economist that, as the public
sector becomes increasingly interested in borrowing the best business ideas from the
private sector, the firm was reviewing its bifurcated model. Anew enthusiasm among
government agencies toward private-sector consulting expertise also means that
federal contractors are willing to pay rates that are closer to those of their corporate
counterparts, The Economist added.
A new world order
In January 2006, the firm announced a new leadership structure that organized Booz
Allens business into four market-oriented divisions, each with its own managing
director. Global Functional Capabilities, serving both commercial and government
clients through a broad array of functional capabilities, including strategy and
operations, is now led by Dennis O. Doughty, who most recently led Booz Allens
WTB. Global Government Markets serving government clients worldwide with an
emphasis on defense, intelligence and homeland security, is headed by Mark J.
Gerencser, who led the firms information assurance and enterprise resilience
function. Daniel C. Lewis, former head of WCB, is in charge of Global Commercial
Markets, serving commercial clients in a range of industries. And Klaus Mattern,
who most recently led the firms global industry and strategic leadership practices,
was tapped to head the Global Integrated Markets division, serving integrated
geographic markets along with public- and private-sector clients in what the firm
calls converging markets, such as global health and global transportation.
Shraders success
These managing directors are overseen by Chairman Dr. Ralph Shrader, the seventh
chairman since the firms founding. Elected to the position by the firms board of
directors, Shrader is serving a term that will last through 2008. He is also a 30-year
veteran of Booz Allen, and helped shepherd the firm through the economic
downturns of the late 1990s and early 21st century. In fact, under Shraders
leadership, the firms sales have grown by 80 percent and employee rolls have nearly
doubled.
Widely recognized for his support of women and minorities, hes also credited with
improving the employee climate at the firm. Shrader, who established a Womens
Advisory Board at Booz Allen and has been an active proponent of employee forums,
received a special award from employees on the firms Workforce Diversity Council,
and was honored with the 2003 Diversity Best Practices CEO Leadership Award.
Under his leadership, the firm has been recognized one of the 100 Best Companies
for Working Mothers by Working Mother magazine for seven straight years, and one
of Fortune magazines 100 Best Companies to Work for the past two years. In
addition, Booz Allen placed among the top-10 consulting firms in Consulting
Magazines 2005 list.
The Feds elite
In 2005, about $1.8 billion of Booz Allens revenue came from federal prime
contracts, according to Washington Technology, which placed the firm at No. 9 on its
annual Top 100 Federal Prime IT Contractors list. Shrader has also presided over an
era of prime federal contracts and cozy Washington, D.C., relations. And a number
of Washingtons elite have made Booz Allen the site of their post-public-sector
careers. Former CIA Director James Woolsey is a vice president of the firm, and
former Navy Chief Information Officer Ron Turner, former associate director for the
CIAs homeland security division Winston P. Wiley, former Army deputy chief of
staff for intelligence Lt. Gen. Robert W. Noonan, and former Department of Health
and Human Services CIO Melissa Chapman also joined Booz Allen after leaving
their federal positions.
Some recent government contracts illustrate Booz Allens stellar rep among the
governments most prominent agencies. In April 2006, Booz was awarded a contract
by the Food and Drug Administration to conduct a thorough evaluation of the process
by which the agency conducts studies for certain phases of the drug approval process.
In March 2006, the U.S. Army tapped Booz for a 10-year program supporting
command, control, communication, computer, intelligence, surveillance and
reconnaissance (C4ISR) systems, under a shared contract valued at $19.25 billion.
And in November 2005, the firm was engaged by the Treasury Department to work
on its Treasury Information Processing Support Service (TIPSS-3), under a $3
billion, multiagency contract covering IT, management and security services.
Too close to home
Booz Allens location in the D.C. corridor also brought the events of September 11,
2001, close to home, when three of the firms staffers working on a U.S. Army project
were killed in the attack on the Pentagon. As the government scrambled to retool and
strengthen key departments, Booz Allen was there to lend a hand, quickly jumping
into action with projects for the Federal Transportation Authority and the newly
formed Department of Homeland Security. The firm also developed an innovative
tool, Analytical Risk Methodology, designed to help government clients evaluate
threats and institute risk-mitigation programs.
Booz Allen has maintained its strong ties to the Department of Homeland Security.
In September 2005, the departments Science and Technology Directorate awarded
Booz Allen a five-year, $250 million contract for various forms of support to DHS
technology programs. The firm has also found a niche in advising public- and
private-sector clients on flu preparedness, in advance of a feared pandemic. Other
fed clients include NASA, the U.S. Agency for International Development, the
National Institute of Child Health and Human Development, the Military Health
System, and the U.S. Department of Defenses Naval Air Systems Command Naval
Air Warfare Center and Space and Naval Warfare Systems Center.
Involved abroad
Booz Allens public-sector clients extend outside the U.S., too. In 2004, ENEL,
Italys national utility company, selected Booz Allen to help review and implement
crisis management procedures. Also in Europe, the firm has helped the global
transportation business as privatization of formerly state-owned European airlines
takes place. The firm also assisted the European Space Agency with identifying
mission-critical assets, and helped develop a global export strategy for Germanys
economic ministry. The firm also is working on the modernization of the Pension
Service for the United Kingdom, an ambitious, multiyear project involving the
retooling of all of the processes and technologies behind the countrys largest civil
service entity.
Clear enough?
Security-oriented government contracts require workers with a certain level of
clearance, and in this area, demand can outpace supply. The publication Workforce
Management reported in 2004 that Booz Allen may actually have lost money as it
scrambled to hire more security-cleared workers. Arecruiting manager stated in the
publication that the firm has boosted its recruiting team devoted to finding cleared
employees by 25 percent. The firm also reportedly offers bounties to workers who
can help rake in security-cleared recruits, and starts new consultantsand even
internsearly on the long road to clearance.
Picking up the pieces
On the private-sector end, Booz Allen doesnt trumpet names of clients, though a few
engagements do leak to the press. In April 2006, fast food giant Wendys called on
Booz Allen to assess its corporate strategy and cost-cutting options after a spate of
falling sales, unsuccessful marketing operations and grumbling franchisees. And in
early 2006, when it was revealed that the latest round of SAT testing was fraught with
scoring errors, the beleaguered College Board called on Booz Allen to perform a
comprehensive review of its test scanning procedures and recommend areas for
improvement. The firm has reportedly worked with R.J. Reynolds Tobacco Holdings
to help the faltering cigarette business review its strategic options, and Boeing, Ford,
MTVand BP-Amoco have also been named among Booz Allens commercial clients.
A corporate diagnosis
Booz Allen isnt shy about flexing its intellectual muscle, and its research and experts
are often cited in the mainstream business press. Awidely circulated study published
in November 2005 showed that most organizations have unhealthy traits and
behaviors, as indicated by a metric called the OrgDNAProfiler. Using this tool, Booz
Allen researchers diagnose an organizations personality, assigning it to one of
seven categories, such as passive aggressive (an organization that seems to be
pleasantly free of conflict, yet resists any meaningful change). The organizational
health approach is discussed in greater detail in the book Results: Keep Whats Good,
Fix Whats Wrong, and Unlock Great Performance, by Booz Allen Vice President
Gary Neilson and Bruce Pasternack, CEO of Special Olympics, published in October
2005.
Tracking turnover
Each year, Booz Allen publishes a survey of CEO turnover within the worlds 2,500
largest publicly traded corporations. The surveys findings allow for analysis of the
relationship between CEO tenure and corporate performance. In 2005s report, the
firm concluded that underperformance, not ethical breaches or power struggles, is the
number one reason CEOs get the boot from large companies. Another 2005 study,
which surveyed 1,600 senior financial executives, demonstrated how CFOs are
taking an increasingly prominent role in corporate governance. Other recent research
published by Booz Allen includes a study of executives attitudes toward information
security and how their views of security affect their selection of outsourcing partners,
and a survey analyzing the role of marketing officers in Australian companies.
To keep all of its insiders abreast of the latest developments, Booz Allen uses a
Knowledge On-Line (KOL) databasealso known by insiders as Live Linkto
pool the knowledge its consultants pick up on engagements. Implemented in the
1990s as part of the Vision 2000 plan, KOL has earned recognition as a leading
example of an intranet resource for employees. The firm also keeps alumni
connected through a password-protected web site that lists job announcements and
other networking opportunities.
The Booz Allen family
Having been named among Consulting Magazines best firms to work for, Booz
Allen has developed innovative strategies to retain female consultants. AMay 2005
New York Times article described how the firm adopted a ramp up, ramp down
approach to projects in order to promote work/life balance. In short, this approach
unpacks the elements of a project, divvying work up into pieces that suit employees
individual needs, such as those that require less travel or that allow for
telecommuting. The article also discusses Booz Allens efforts to encourage its best
and brightest women to stay onthe firm even has tracked down women after they
left for family reasons to offer them contract work and encourage them to rejoin the
fold.
Giving their all
Booz Allens corporate identity is closely aligned with its involvement in charitable
causes. The firm has donated $450,000 toward funding for a memorial honoring the
184 people killed during the September 11 terrorist attack on the Pentagon, including
three of its own staffers. The firms work on behalf of ALS, or Lou Gehrigs disease,
earned it the first-ever Corporate Philanthropy Award from the ALS Associations
DC/MD/VAchapter. Booz Allens contributions to the association include volunteer,
financial, pro bono and in-kind support, mostly jump-started by Booz Allen
employees in honor of a colleague who was diagnosed with the disease in 1999.
In March 2006, the firm announced that it would be stepping down from its
sponsorship of Washingtons annual PGATour golf tournamentknown as the Booz
Allen Classic since 2004after the 2006 tournament. The firms sponsorship of the
event raised around $3 million for local charities in the greater Washington, D.C.
area. Booz Allen cited the PGAs decision to reschedule the tournament from its
usual June date to October as a major reason for the withdrawal of its sponsorship,
which cost the firm around $30 million over the last three years. The firm still plans
to stay involved, however, with a more modest sponsorship of around $1 million.
Booz Allen staffers contribute to their communities worldwide in other ways,
supporting causes including the American Cancer Society, the United Negro College
Fund, the Special Olympics and pro bono work overseas for the Bundesgartenschau-
Germanys national horticultural fair, as well as Romes Teatro dellOpera.
GETTING HIRED
Online openings
Booz Allen hopefuls should first head to the Web, where the firm maintains a wealth
of career-oriented information, along with openings broken down into categories
such as cleared intelligence, college, European, experienced professional, MBA and
Middle East. The firm also lists internship opportunities, including its strategy
consulting-oriented summer associate program for MBAs, an emerging leaders
internship designed for disabled candidates, and an undergraduate technology and
public management internship. Summer and academic-year opportunities are
available for undergrad and grad students who have completed 30 hours of course
work, declared a major and have a GPAof 3.0 or higher.
The firm encourages candidates to create a profile on its careers web page. Booz also
can be found on the best and brightest campuses, including top undergrad and elite
B-schools such as Columbia, NYU, Chicago, Carnegie Mellon, Kellogg, University
of Michigan, Harvard, Northwestern and Wharton in the U.S., and INSEAD and
Bocconi in Europe.
Case and fit, an even split
According to our sources, both undergrads and MBAs can expect two rounds of
interviews, with two interviews each, usually a case and a noncase interview in each
round, a source says. The first round typically involves associates and senior
associates, while principals and officers get involved later on, a consultant adds. One
insider warns that for those not coming straight from school, the industry hire
process takes forever, as recruiters try to bring you in at one level below where you
should come in.
What to expect
Expect cases! an insider advises. Its smart to spend some time preparing for them,
too, of course, though cases often tend not to be your usual off the shelf market-
sizing, brain teaser-type questions, a source suggests. Brain teasers are not
popular, though some interviewers may still use them (theres no real policy), a
colleague agrees, adding that cases are generally based on actual client work. Cases
for undergraduates tend to be nonquantitative and instead are focused more on an
open-ended discussion of a problem and the business forces that are involvedits
more of a conversation to see if you get the way business works. MBAinterviews
are more quantitative, but still, rigid frameworks are largely frowned upon in favor
of showing a broader understanding of the forces at work.
Some sample cases from our sources include: What are the trends in the outsourcing
business? How many gas stations are in the U.S.? and How would you break
Apples hold on the MP3 player market? But keep in mind, an insider advises, that
most important is showing self-confidence and the ability to establish
relationships.
OUR SURVEY SAYS
Diverse staff, diverse cultures
Booz Allens culture receives rave reviews from consultants worldwide. The firm
features a very open culture, which allows colleagues from different backgrounds
to integrate quickly, and values diversity, mutual trust and positive attitudes, a
source says. Thats not to say that the culture is homogenous, consultants point out
as one California-based insider tells us, It really depends on where you work
because the European culture isnt the same as the U.S. or the Middle East. Out of
those three, I prefer the U.S. as it is more long-term focused, encouraging and better
suited for mentoring. Acolleague agrees that culture varies among offices, adding
that Dallas, in particular, has a strong culture that fosters camaraderie and
dedication. Attrition in the Dallas office in my tenure has been virtually
nonexistent.
Go, team Booz!
One running theme among all offices is an appreciation for the genuine team spirit
found within Booz Allen walls. One source cheers, I work with a great group of
extremely bright, friendly people. Its a nonhierarchical place where all ideas
count, says an insider. In an excellent atmosphere that fosters teamwork, a co-
worker reports, project managers, principals and [officers] all sit in the same
cubicles as everyone else and low- to high-level interaction is constant. The firm
features a true meritocracy, a consultant agrees, and people are willing to
intellectually engage, but it is about ideas, not politics. Still, one insider grumbles
that the firm is very hierarchical, [but] they do not think they are, which makes it
worse.
One insider gives a perspective on the group dynamic at Booz over time: Booz Allen
seems to have a somewhat older culture than other consulting firms, in part because
the commercial side of the company did not hire undergraduates [in the U.S.] for a
few years after the economic downturn. Now that consultants are being hired again,
this may change, but people are still expected to be mature and responsible. Overall,
I would say that Booz Allen is much more straightforward and honest than other
firmsespecially in the recruiting process, when we are very upfront with candidates
about the pros and cons of accepting a position and about the work we do. Other
companies seem to be glossing it over more.
A difficult balance
To put it another way, Booz Allen consultants know to expect a heavy workload
and managing a balance between work and life is really hard, given the amount of
business we get, frets an associate. Projects are very often understaffed, and/or
scope is enlarged, another consultant says. Acolleague agrees, I currently am not
able to balance it that well. The source adds that its particularly challenging for
those on the former WCB side of the firm, where more traditional management
strategy consulting hours prevail: The firm really encourages work/life balance but
it is fairly difficult to achieve, especially if you are in the old CB now strategy
structure. One insider reports that a work/life balance is possible, but most of the
time by working a baseload of 12 hours a day. And employees seem to agree that
workloads become more demanding the higher up you goas one consultant
explains, Once you hit senior associate there is a great deal of pressure to do more
outside of the normal work, such as helping out with recruiting and marketing
projects.
Others give more insight into the schedules demanded of Booz Allen consultants.
We stick to the 5,4,3 policy: five days working for the client, four days at the client
site and three nights away. This makes travel for work manageable and allows me to
have a life outside of work, says a source. You do get most weekends off, but
during the week you are the firms for 24 hourseven if you are not working, you
are certainly not sleeping in your own bed, an insider notes. Another consultant tells
us that the firm is demanding, but very respectful of work/life balance choices. The
onus is more on the individual to manage his work/life balance, for the firm will suck
every available hour out of you if you let them. But on a positive note, another
source reports that weekends are sacred at Booz Allen; I do not know of a job
manager who would ever ask someone to work over the weekend except maybe the
weekend before a major presentation. Aco-worker agrees that work on weekends
is only requested if absolutely unavoidable; reasons are explained and effort is
recognized.
Everyone stays late
As for work hours, they can fluctuate wildly based on project, business segment and
many other factors, sources suggest. Says one consultant, Work hours vary; in the
week before a project wraps up it is not uncommon to work 80 hours (or very rarely
more). But the average workweek is more in the 55- to 65-hour range. Perhaps this
piece of information will offer some solace: There is not a lot of pushing down work
onto lower-ranking staff; some partners stay just as late as consultants (though
probably not as often), the same individual explains. Another insider thinks the
hours are not bad for consulting. Comparing notes with friends at other firms, I
think I have it somewhat easier.
Most employees report that Booz Allen can be flexible when necessary, with work
from home and reduced hours arrangements available for those who request them. I
am allowed to telecommute two days a week, a consultant says, adding, I received
a lot of understanding and exceptions since I just had a baby. Another source notes
that the firm goes the extra mile, explaining, I recently got married to a non-U.S.
citizen. As a result, I had to attend immigration interviews overseas. The firm not
only facilitated my necessary travel abroad but also made sure I was staffed on a local
project to ease my wifes transition to the U.S.
The travails of travel
At Booz Allen, Project staffing is not done based on minimizing travel
requirements, an insider notesand the firm is split equally between those who love
the frequent-flying lifestyle and those who simply tolerate it. Generally, out-of-town
trips are four days at a stretch, with Fridays back at the home office, sources report.
Such a demanding travel schedule requires real commitment and dedication, one
associate notes. Aheavy travel load makes life difficult, I feel like a foreigner in my
home base, sighs a colleague. Traveling is the worst thing that can happen to your
personal life, a source agrees. Another jetsetting Boozer laments, It makes having
a life difficult; you spend your time at home trying to rest up for the week ahead and
do the errands you couldnt accomplish during the week.
But some consultants put a rosier spin on all the travel: Travel brings me closer to
the clients that I serve; its necessary, one insider avows. And another source claims,
I like the travel a lotits nice to be able to separate my personal life, which takes
place in New York, from my work life, which usually takes place elsewhere, and its
not so bad working long hours if all Ive got to go home to is a hotel room. We
definitely travel in styleexpense accounts are generous, we stay in nice hotels and
all meals are covered when traveling on business. The frequent flyer miles and hotel
points earned make it easy to take awesome vacations. However, Im also young and
single; I can see how someone with a family would find this harder.
Up, out, over?
The firms transition from what one consultant calls a bipolar WCB and WTB
model to the One Firm approach is reflected in promotion policies, an insider
suggests. The policy for the old CB style will most likely remain up-or-out, but
the firm is developing other models to seek out better retention and career models.
The source adds that consultants can advance quickly, but they have to be
exceptional to pass by the standard model of two to hree years. On the whole, the
firms evaluation criteria happens every year and is very rigorous and fair.
A colleague provides the inside scoop on the complex process of advancement at
Booz Allen: Promotions are up-or-out on a cohort basis, meaning that, for example,
undergrads enter as C-1s (consultant first-years) and after one year are either
promoted to C-2s or asked to leave. After C-2 is senior consultant-1, then SC-2.
Most consultants stay two or three years and then go to business school. After four
years one would have to go to B-school, although there is an almost-never-used
mechanism to become an associate without B-school. This individual adds that
associates can stay on for up to 30 months, and must be promoted either at 24 or 30
months to senior associate or they have to leave. Promotions are selective, often
surprisingly sofewer summer associates receive offers than one might expect (last
year about 65 percent were made offers).
The whole process can be head-spinningly rapid, another associate reports. While
consultants tend to advance at their up-or-out point, he says, it is a real challenge
to go from doer to manager to leader/salesperson over a three-year transition period.
Sharing the profit (lots of it)
Compensation at Booz Allen remains a bit bifurcated between the old WCB and
WTB divisions. While there are no bonuses for the old TB group unless you are
a senior associate and above, an insider says, bonuses are available to those in the
strategy track. Generally, insiders report satisfaction with their salary packages at
Booz, which include signing bonuses, relocation payments and a generous travel
expense policy. But one source worries, I have a feeling that the compensation is
not equivalent to the market at Booz Allen and they can get away with it because the
training is so rigorous and many people want to come to the firm. Still, insiders are
big fans of the firms retirement package. As one consultant explains, The firm pays
out to our 401(k) plans in a form of profit sharing; it is not a matching program;
rather, everyone gets a certain amount based on seniority and salary regardless of
how much contribution you make to your 401(k) yourself. Recent years have seen
record 401(k) payments as the firm has been doing very well.
Leveraging time off
The firm also provides some attractive perks to balance out all that hard work.
Consultants who like to travel particularly enjoy the firms leveraged weekends,
which permit them to enjoy the cities in which they work by allowing an employee
to expense weekends in lieu of traveling home, provided the cost is less than the cost
of travel to the employees hometown, a source explains. Others appreciate Booz
Allens relatively generous paid time off policies: U.S. associates get 23 days of
paid time off a year, which is downright European, says a satisfied employee, who
adds, Unlike in I-banking or law, vacation is not just a theoretical idea; if you let
people know in advance that youre taking a vacation, then 90 percent of people will
respect that. Theres also the opportunity to have unpaid time off after youve been
with the firm for a year or more, adds a colleague. Other consultants rave about
excellent health benefits, generous gifts at career milestones, team meetings in fun
locations, a home office allowance and IT support, and even a sky box at a local
entertainment venue.
Phenomenal training
In addition, the firms approach to formal training is described by one consultant as
phenomenal. There are full-time, dedicated staff to teach and design training
courses. The three courses Ive attended were terrificvery practical and useful.
And as another source explains, There are a lot of formal training opportunities
available, and the firm is good about letting people travel (sometimes even abroad)
to take training courses as needed. However, most of the stuff you actually need to
know comes from informal training, through a strong mentorship programeach
person has an assigned junior and senior mentor, plus any informal mentors they may
take onand the team structure of projects, in which job managers often mentor and
train junior staff on the job, as needed. We take mentoring seriously, says one
associate, and in general, Booz Allen employees give credit to the firms informal
training. In the words of one senior consultant, the informal mentoring has been
great, and on-the-job learning has been incredible. Overall, insiders feel that the
company strikes a good balance between official and unofficial training.
Money for salaries, not desks
As for offices, theyre said to be good across Europe, though the London and New
York offices could stand some refurbishing. (One insider notes that in New York, at
least, the focus is on putting money into partners and staffs pockets over lavish
office space.)
In Berlin, consultants enjoy modern settings and very good equipment, and
lounge areas facilitate the casual chat with colleagues, a source says. Cleveland
reportedly boasts a nice space [thats] very well organized and very pleasing to work
in, while San Franciscans enjoy a spectacular bay view. Over in Chicago, a source
says, the space was recently reconfigured to be reservation-based. It seems to work
well and creates a different dynamic, but I believe it will result in positive outcomes.
But many Booz Allen consultants echo this sentiment shared by one associate: [I]
dont often spend much time there, so it doesnt really matter.
Mingling in the executive suites
At Booz Allen, consultants get the opportunity to work with the cream of the crop at
client sites: Even at the senior associate [level], I am developing trusting
relationships with C-level clients of Fortune 500 companies and presenting to the C-
suite of many Fortune 100s, one insider reports. Acolleague chimes in, On one of
my first projects out of business school, I had the opportunity to lead a presentation
to a clients board of directors.
But experience with supervisors and senior clients can vary at Booz Allen, insiders
suggest. Everybody is so busy that it is difficult to get access to partners. On the
other hand understaffing leaves room for leadership roles, another source observes.
One consultant gripes, Leadership focuses on making senior personnel successful.
But a colleague feels that he can easily connect with his supervisors, and reports, I
really like the depth and breadth of my supervisors and they are easy to access and
discuss ideas, work, life, etc., with and they provide great guidance. Senior staff
are extremely accessible, even to the most junior employees, another associate says.
They routinely take time to explain industry jargon and innovation as well as
provide career advice.
One consultant lays it all out: Generally, in the commercial practice, there is a good
deal of opportunity for junior people to interact with senior level staff; in some cases,
on small projects consultants or associates may be working with just one other person
and a partner, which is a great way to get exposure to the senior staff. Some offices
are better for this than others: Cleveland has a reputation for having lots of partners
but relatively few junior people, meaning that the junior staff there gets tons of
exposure to the higher-ups. New York is more balanced, but everyone takes seriously
the need to develop connections up and down the hierarchy.
Pushing toward partner
Booz Allen is said to hire tons of women in recruiting cycles. Says one insider, In
my class, women consultants in New York outnumbered men consultants 2-to-1.
But the source adds that in higher ranks, women become much more rare; there are
only a handful of women partners versus over 100 men. I think this is in part due to
Booz Allen not always having been so diversity-friendly, and also due to the demands
of travel and the lifestyle perhaps being harder on working moms than working dads.
Still, I would expect the portion of senior women to increase in coming years, as
plenty are coming in, and I have never heard of anyone suspecting discrimination in
the promotion process. Acolleague feels that the firm is doing just fine in the realm
of gender diversity, urging that Booz Allen features the highest share of women in
the workforce I have experienced so far among consultancies, and another
consultant adds that the firm is highly proactive in recruiting and promoting
women. Over the past few years, an insider says, weve launched many initiatives
focused on women, including training for mentors of women on womens needs, and
a womens leadership network to coordinate events for women.
An associate explains that the situation for minorities is similar to that for women;
many are hired now, although they are currently not well represented in senior ranks
and probably havent always been hired in such numbers in the past. There are strong
diversity organizations for various ethnic groups, though, and the firm strongly
supports such organizations. Theres a strong, board-level focus on diversity, a
co-worker agrees, adding, With the movement to a combined firm, well benefit
from the tremendous diversity in our public sector.
Acceptance is a core value
For gay, lesbian, bisexual and transgender staffers at Booz Allen, the environment,
broadly speaking, is tolerant, says an insider. The source, who is involved in the
leadership of Booz Allens GLBT organization, GLOBE, says the firm provides
ample support to our programs, as well as provides sponsorship to groups like Out &
Equal and the Reaching Out for Your MBAconference. Still, the source says, One
concern is that Booz Allen does a lot of work for the military, which can require some
discretion on the part of GLBT individuals, and there has been some concern that
increased hiring of former military staff into Booz Allen may have put a damper on
the accepting culture. However, all staff are required to agree to Booz Allens core
values, which include acceptance of GLBT individuals, and there are strong
advocacy links to deal with any problems that may arise between any GLBT
individuals and former military people.
Helping globally
Opportunities to make a difference in the community are plentiful at Booz Allen,
insiders report. According to one consultant, the firm provides formal sponsorship
in the form of two paid days off and $10,000 per project team per year for a charity
project Consultants participate in office-specific community service
opportunities, employees say, such as a small business initiative in Harlem, pro
bono consulting for the University of Manheim and the German sports federation,
support for the British Red Cross, and pro bono support for small companies in
Mexico, to name just a few efforts around the globe.
There are a lot of formal
training opportunities
available, and the firm is
good about letting people
travel (sometimes even
abroad) to take training
courses as needed.
Booz Allen employee
Two Canal Park
Cambridge, MA 02141
Phone: (617) 252-2000
Fax: (617) 252-2100
www.monitor.com
LOCATIONS
Cambridge, MA (HQ)
PRACTICE AREAS
Competitive Strategy
Corporate Finance
Corporate Strategy
Innovation
Marketing/Growth Strategy
Operational Strategy
People & Organizations
Public Sector Strategies
Regional Competitiveness
THE STATS
Chairman: Mark Fuller
2006 Employees: 950 (consulting staff)
2005 Employees: 850 (consulting staff)
UPPERS
Individually tailored professional
development
Because of the group company
structure, we can work on a
variety of engagements
Were growing and theres an
excitement around that
Flexible approach to all things
DOWNERS
The compensation and training are
below par for a top consulting
firm
50/50 model ensures that you are
always working
We work for a lot of great clients,
but few people know about
Monitor
Lack of variety of clients in
smaller offices
EMPLOYMENT CONTACT
www.monitor.com/cgi-bin/iowa/
careers
Monitor Group
V A U L T
P R E S T I G E
R A N K I N G
5
THE BUZZ
More innovative, creative
thinkers; first out of the box
firm
Touchy feely; nurturing
Frustrating interview process
Has been going downhill since
the bust
THE SCOOP
May the Forces be with you
Monitor Group is an academics dream consultancythe firm is known for drawing
high-level ideas from academia and think tanks and putting them into practice in the
real world of business. Based in brainy Cambridge, Mass., Monitor was founded in
1983 by a group that included some Harvard Business School alumni and professors.
One of its most notable co-founders, Michael Porter, is a strategy star, having created
the competitive analysis framework known as the Five Forces.
All in the family
As the name implies, Monitor Group is actually structured as a closely integrated set
of business units linked by shared ownership, management philosophy and assets,
which focus on a wide variety of areas, from regional competitiveness to innovation
to marketing. These units are broadly divided into the strategy-oriented Action
Group (TMAG) and the private-equity oriented Monitor Merchant Banking.
Through TMAG, a team of approximately 950 consultants tackles projects including
corporate finance and competitive strategy, innovation and growth strategies, and the
assessment of new technologies and markets for clients. Of these engagements,
approximately 40 percent are strictly categorized by the firm as marketing/growth
strategy projects, but the firm characterizes much of its client work as growth-
related. Monitor aims to help clients build their organizations capabilities to face
future challenges, not just to provide counsel on solving a current need.
Other TMAG organizations include the Global Business Network, which offers
specialized advisory services focused on using scenarios to manage uncertainty, and
Monitor Innovation, which combines management consulting with technology and
innovation services. The client list for these units includes Fortune 500 companies,
international firms, state, national and international government agencies, as well as
nonprofit organizations.
Monitor Merchant Bankingwith approximately $2 billion under management
encompasses Monitors global investment funds in both private equity and venture
capital, as well as its M&A advisory group. Both the private equity fund (Monitor
Clipper Partners), and the venture fund (Monitor Ventures), utilize Monitors
advisory resources to provide strategic support to their portfolio companies.
Monitor Group
No boundaries
Despite the presence of all these units, Monitors consultants actually move fluidly
between the firms businesses as needed, working out of 29 offices from Amsterdam
to Zurich. In fact, rather than working from an office-based model, the firm
explains, it prefers to organize itself globally based on key assets, using global
recruiting and project allocation, as well as a global profit pool. The firms
organization gives some sense of Monitors nontraditional approach. Monitor says it
prefers to work holistically with a select number of projects, focusing only on the
specific resources required to get the job done, rather than relying on traditional
vertical industry groups. In fact, the company refuses to even define itself as a
consulting firm, arguing that its breadth of services makes it much more than
that.
From its inception, Monitor was designed to be a global firm, opening international
offices within five years of its founding. These days, TMAG gets about 40 percent
of its business from North America; roughly the same amount comes from Europe,
with the rest divided between the Asia-Pacific, Latin America and Africa regions.
Engaging the public sector
As a privately-held firm, Monitor keeps tight-lipped about its engagements and sales.
Reports suggest that recent work has included some clients outside the corporate
sphere, where Monitor supports business and government leaders on national,
regional and cluster competitiveness and institutionalizes best practices for managing
uncertainties. Arecent engagement involved working with the government of Libya
to create a long-term economic plan. The project included a comprehensive
assessment of Libyas competitiveness, with focused assessments on oil and gas,
trades and agriculture clusters, as well as the training of the future leaders of the
nation. The firm also worked on the China Entrepreneurship Initiative where it
engaged the China Academy of Science to compare Chinas entrepreneurship policy
to 12 top-benchmarked countries in order to influence policy-setting initiatives.
Additional recent projects include a strategic segmentation of illicit facilitators, a
framework for perceiving border threats, and a study of open source resources.
Always thinking
Monitors stable of thought leaders isnt shy about the influential ideas they churn
out and apply in their engagements. In addition to Michael Porter, who remains a
professor at Harvard, Monitor boasts technology guru Bruce Chew; former
Monitor Group
University of Southern California professor Bernie Jaworski; valuation expert Tom
Copeland; futurist and business strategist Peter Schwartz; e-learning specialist
Jonathan Levy; Katherine Fulton, head of Monitor Institute, Monitors advisory
business focused on social change; and former Harvard prof Michael Jensen. These
intellectual heavyweights often are cited for their innovative ideas. In 2005,
Marketspace Chairman Jeffrey F. Rayport was cited in the Harvard Business
Reviews annual list of 20 Breakthrough Ideas, for his theory of demand-side
marketing. To ensure competitive advantage for the long run, Rayport argued,
companies need to shift their innovative energies to the demand side, the area where
they interact with customers.
This brainy bunch consistently churns out studies, reports and books aimed at the
management level. The firms most recent books include Michael Porters
Redefining Healthcare, co-authored by Elizabeth Olmsted Teisberg (May 2006); The
Strategy and Tactics of Pricing, written by Tom Nagle and John Hogan (November
2005); Chairman Mark Fullers discourse on the turnaround in Japans economy,
Japans Business Renaissance, co-authored by John Beck (October 2005); and
Eamonn Kellys Powerful Times: Rising to the Challenge of our Uncertain World
(September 2005).
Crusading for change
In a June 2006 BusinessWeek article, a first-year Monitor Group consultant based in
San Francisco said the firms social entrepreneur leanings were part of its appeal.
In fact, Monitor has developed quite a reputation in the world of corporate social
responsibility for the past few years, teaming up with the magazine Fast Company to
offer the Social Capitalist Awards. These awards honor 25 organizations using
creativity, business smarts and hard work to invent a brighter future. The list of
Change Masters regularly includes organizations devoted to growth in developing
countries, improving schools, investing in local nonprofits, building affordable
housing and more. In an accompanying essay to the 2006 awards, Monitor notes,
Just as nonprofit organizations must achieve social impact while sustaining ongoing
operations, corporations will be asked to have a positive impact on society and the
environment while satisfying shareholders.
Monitor Group
GETTING HIRED
The three Cs
Do you have what it takes to join Monitor? First off, the firm says, it wants all
candidates to demonstrate three key characteristics: capabilities, capacity to learn and
commitment. Monitor gets a sense of these characteristics through its interview
process, encompassing case interviews, fit interviews, group exercises and more.
On its web site, the firm describes these activities in detail. An insider notes that
through the group exercises in particular, We explicitly test peoples abilities to
interact with otherswhich means we recruit individuals who are more mature and
better able to develop and learn at an accelerated pace.
On its site, the firm also advises Monitor hopefuls to check with their schools career
services office for campus recruiting eventssources tell us that while the firm
draws from the top 20, Harvard and Penn are most commonly represented.
Crunching the numbers
Monitors approach to hiring is described by insiders as elaborate, rigorous and
intense. All told, the candidate can meet five different consultants through the
interview process, who all have a say on how to rate their performance, says a
consultant. As one insider describes it, Our process is very unlike other firms, as we
use written case studies that were adapted from actual case work. In the initial
interview, the candidate receives a packet of data to help answer a few questions, and
has time to think through the questions and answer them using the data on their own.
The recruit then walks through the answers with the interviewer, followed by a more
traditional fit-type of interview. The source continues, The final round interview is
a group case study, in which candidates all receive a packet of data and are given a
chance to work through the problem together as a group. There are elements of
presentation and group participation, both of which are evaluated.
Indeed, insiders emphasize the complexity of Monitors case interview process,
noting that there are no brainteasersWe dont ask how many tennis balls fit in
Yankee Stadium; we give people a real business problem with real numbers, says a
source. Describing the written case study as quite challenging, another source
admits, I would say most Monitor consultants would have trouble getting the test
100 percent correct.
Monitor Group
That said, a colleague adds, Monitor does not expect incredible business acumen
(particularly at the undergrad level), but does hope candidates have creative ideas
about the case.
OUR SURVEY SAYS
E pluribus unum
Though Monitor is a firm made up of a host of different businesses, the firm strives
for a consistent culture, insiders tell us. As one puts it, There is a strong sense of
camaraderie at all levels of the firm (and between junior and senior consultants as
well). The source adds that each office also has its own unique quirks and
characteristics, creating strong subcommunities within the firm. The group
companies also have strong communities, particularly the marketing group (M2C).
The only downside to this is that the generalist consultants, particularly in the large
headquarters in Cambridge, can sometimes feel a little lost. That, however, is a
minor issue. Overall, the people are smart, fun and supportive.
Other consultants attest to the team spirit at Monitor. Through our interviewing
process, we tend to put a lot of emphasis on hiring people who play well in groups,
says a source. Youve got to have the smarts, but if you are awkward to
communicate with, or overly competitive, youre not going to fit in well on a case
team at Monitor. Thats not to say theres a specific personality type at Monitor,
colleagues suggest: We are an extremely diverse firm and one in which everyones
interests and quirks are embraced, says an insider, while another source calls
Monitors consultants a dorkily lovable bunch. As another staffer sums it up,
This is a truly special place. For a company that has its deepest roots in academia,
the amount of humor and fun that can be found here is really impressive and unique.
From burrito-eating contests to American Idol rip-offs, Monitor has a very healthy
dose of quirkiness and fun.
Monitor is also a supportive place, employees say, with an extremely open and
honest culture. According to a consultant, I truly believe that people here want the
best for others and the degree of cutthroat-ness in Monitor is considerably lower
than what I perceive to be the case elsewhere. In addition, says a colleague, Monitor
is learning-oriented, meaning that managers are evaluated on how well they
develop people who work under them. The best managers in the firm are not only
thought leaders but great mentors and teachers, as well.
Monitor Group
Fair and flexible
Work/life balance at Monitor is facilitated, for the most part, by the firms easygoing,
flexible approach, insiders suggest. There can be long hours at Monitor, like any
strategy consulting firm, but the biggest difference Ive found from another firm I
worked at is the flexibility of your schedule at Monitor, says a consultant, who adds,
There is no strict schedule of what time you must be at the office by or stay until,
you can work from home if you like as long as youre responsible about staying on
top of e-mails and voicemails, etc. The firm trusts you to figure out how and when
youll get the work done. There will definitely be stressful periods and late nights,
but its nice to know that you can make up for those by having some flexibility to use
your time as you choose during the down times.
In addition, notes a colleague, Managers at Monitor are, more often than not,
sympathetic to their teams and try not to overwork them. I have personally received
feedback from managers that I should not always burn the wick at both ends and
should take time for myself. Another insider adds that managers at Monitor are
very thoughtful in how they use the time of their junior resources. Vacation time is
sacred, and weekend work is minimized as far as possible. Even more importantly,
if someone makes prior nonwork commitments known, managers are great about
working around them.
Another source notes, however, that while the majority of Monitorites really value
their lives outside of the office and seek that balance both for themselves and those
they work with, its still the case that those that place work above all else are
rewarded for their efforts. And one overworked staffer claims that its up to
individual consultants to hash out their own work/life balance, stating that it takes
significant willpower to turn down work and risk slight underperformance.
Few four-days
Monitor does help to ease the workload by placing only reasonable travel demands
on consultants, most insiders attest. Unless the client is located far away from the
home office, Monitor stays away from a Monday to Thursday travel approach.
Generally all travel is same-day, and tied to specific meetings. As a result, disruption
to personal lives is minimal, explains one consultant. A colleague agrees: The
longer Im a consultant, the more I appreciate Monitors policy of not traveling to the
client unless theres a specific purpose (i.e., we do not base our consultants at the
client for six months at a time, having them fly out on Mondays and back on
Thursdays). There are definitely weeks where I dont travel at all and then there are
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some weeks where Im gone four days. But on average, Im usually [traveling] one
day a week.
In addition, a source comments, The firm makes an effort to place you on nontravel
projects if you have been on traveling projects for a while. And for those who do
enjoy getting out and about, another insider reports, When I decided I wanted to
travel, the firm facilitated great opportunities to work in Asia and Europe. I was
surprised how easy it was.
Half-and-half
The firms relative lack of long travel stretches also has to do with the fact that
Monitor has a work model where we spend 50 percent of our time on one project
and 50 percent on another project, a source explains. This has its ups and downs,
employees say, especially when it comes to hours. As one consultant puts it,
Because we work on a two-case system, more than likely, youre always assigned
to a client. There may be periods (one to two weeks) where you may have 50 percent
free, but allocations are fairly efficient and youll be placed soon on another
assignment. Still, the absence of face time requirements in the office means that
Monitorites put in reasonable workweeks, on average, insiders report, with the
occasional 80-hour weeks balanced by 50- to 60-hour weeks.
Monitoring meritocracy
Theres a general consensus among staffers that you wont find an up-or-out
promotion policy at Monitor. In fact, says a source, Consultants can advance as
quickly as their skills and abilities let them. It is not atypical to find non-MBAs
managing MBAs and younger people managing people older than them. As another
insider tells us, We treat everyone as an individual, and think it is wasteful to fire
people who are contributing just because of how they compare to their peers. We also
believe that this creates destructive internal competition. Because consultants at
Monitor have a highly individualized career path, top performers can advance much
more quickly than at other firms that have a designated pace of progress and
promotion.
Many employees seem to appreciate this approach to promotion. According to one,
This meritocratic system is great for two reasons. First, we know that we can grow
at our own pace and dont have to worry about some artificial time constraint (e.g.,
get promoted in two years or get fired). The source continues, explaining that some
individuals begin managing junior resources after one year, while others may take
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two years to do so. In either case, as long as the individual is growing and learning,
there is no pressure from the firm. Second, we are given as much responsibility as
we can handle and, as a result, we are able to learn even more. As a relatively new
hire, I find that the meritocracy incentivizes me to learn as much as possible and take
more active roles on case teams.
Still, some Monitorites confess that they would like to see just a bit more structure
around the career path at the firm. According to an insider, since everyone essentially
shares the same consultant title, the firm has been trying to clarify the progression
from case team member to module leader to case team leader. As it stands now, the
source explains, consultants progress in roles and compensation based on the
Customer Service Rating (CSR) score. There is no minimum or maximum that a
person at any given tenure length can receive so, in theory, if you performed really
well and served clients really well, youd get a high CSR. In practice, your CSR
ceiling can be set by the type of role you get. The firm notes that to address some
of this feedback, it has recently introduced a new way of looking at and thinking
about career paths that gives some guidance about key milestones of progress and
development along the path to partnership.
Performing for pay
Earning that high score is critical to Monitor consultants, since the firms
compensation structure is heavily weighted to strong performers, a consultant
reports. The source explains, The base salary is kept fairly conservative, as Monitor
expects strong performers to have a large part of their total yearly compensation
come from their bonus. While strong performers can get upwards of 50 percent of
their salary in their bonus, it is not uncommon for weak performers to get nothing.
This is Monitors way of managing out underperformers. Acolleague agrees, If
one is a strong performer at Monitor, the compensation system will
disproportionately reward that level of performance and offer a salary and bonus that
is above our competitors. However, the source adds, for the majority of
consultants here, compensation is below levels at comparable firms.
In fact, more than one Monitorite frets that he or she may be missing out on a higher
salary elsewhere. In the words of one consultant, Monitor is very secretive about its
compensation, which leads to some speculation about where we stand both versus
each other (internally) and versus competitors (externally). And several insiders
gripe that Monitor doesnt offer a 401(k) matching plan.
Monitor Group
Party on!
The firm does offer its share of perk to staffers, however, from free personal mailing
privileges and dry-cleaning pickup in the office to unlimited snacks, breakfasts and
sodas. According to one insider, Monitors best perks and benefits relate to its
culture and people. The offices each have their own snacks and food (popcorn in
Cambridge, jars of healthy snacks in L.A., sodas and bagels in New York). The
Cambridge office has monthly teamed office parties, ranging from watching the Red
Sox to karaoke to burrito-eating contests. In addition, says a source in one of the
smaller offices, We have a winter party, ski party and summer party. These events
are all big overnight trips, where the whole firm (from most senior partners to the
newest summer hires) come out for an all-expenses-paid trip somewhere great.
Another insider appreciates that the firm is extremely gracious about granting
transfers and exchangespretty much anyone who has been with the firm for 18
months can apply and be granted a transfer to any Monitor office. The firm
comments that another perk is the ability to transfer offices more easily than at other
firms, which owes to Monitors global P&L structure. The firm explains that
transfers are granted when a business need exists, and are given to employees with
strong performance track records.
But because we spend much more on people and perks than on infrastructure, a
source says, some of our offices have a slightly dated mid-1990s feel to their decor
(green and purple carpet swirl combinations, anyone? Maybe that was cool when
Waynes World was released). However, most consultants are able to look past the
dcor to appreciate the firms no-cube approach: Monitor invests a lot of money
making sure that every consultant (at least in North America) has an office with
walls. This is true even for people who dont spend a lot of time in the office, because
they serve clients in other cities or frequently work from home, a consultant
explains. It also helps that we have some of the best real estate in the country, adds
a colleague, noting that the L.A. office is right on the beach in Santa Monica.
Chicago is right on the river and is steps from the lake. The New York City office is
a block from Central Park. London is in an upscale neighborhood, while the Paris
office is supposedly to die for.
Mentoring managers
For many Monitor staffers, the valuable relationships they have with their
supervisors rank high among the firms benefits. Monitors culture of feedback and
learning results in an environment where my supervisors explicitly allocate time to
help me develop new skills, and encourage me to raise concerns and issues. I find it
Monitor Group
difficult to contemplate working elsewhere when I realize the trade-off I would have
to make in sacrificing these close mentoring relationships, says a source. A
colleague chimes in, My supervisors are all very approachable people. Whats great
is that they are extremely brilliant but humble at the same time; they make it a point
to provide timely feedback and create development opportunities. And Monitor is
a place that takes good management skills seriously, another insider notes: At the
firm, a consultants performance is measured not only by client service, but also by
how well he or she manages junior resources. Providing upward feedback to
managers is a critical part of Monitors review process, and most managers take it
quite seriously and work hard to become even better at their jobs.
Since theres no substitute for learning by doing, says a consultant, Monitor gives
its young consultants (undergrads in their first year) access to senior clients almost
immediately. Agrees a colleague, Im relatively new to my firm, but Ive already
been allowed to run meetings with CIOs, COOs, EVPs, you name it. If you show
you can do it, and the client takes you seriously as an intellectual force, then they
definitely let you go for it.
Picking up training
While learning by doing is nice, some insiders tell us theyd like to see a bit more
attention to formalized learning at Monitoras one source quips, Id say our
training is in need of development, adding, We have some very good training
courses and some that arent as good. I think we could use more formal training to
level set the skills the associates are coming out of college and MBAprograms with.
According to a colleague, Most training is picked up by asking peers. Any
pretension to a useful training program at Monitor is a joke. Undergrads without
business backgrounds are not even taught Excel or PowerPoint, just expected to pick
it up. In addition, grumbles a source, Time for training is not allocated as time
away from a case. If there is casework to be done, you either have to skip out of
training (a tough thing to do) or commit to staying up all night to complete your
casework you couldnt do during the day because of training.
Still, some consultants applaud the informal approach to training; in the words of one
insider, I strongly believe formal training in general is overrated and under-
effective. Monitors philosophy of doing most of our training on the ob means that
we actually learn by doing and, consequently, the learning sticks. There is a
considerable amount of informal training that takes place as you progress, and its
usually done in the course of a project, a colleague chimes in. You are usually
offered roles on the case that will require you to learn new hard or soft skills from
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your team or supervisors. Formal training is usually not that relevant (for hard
skills), or that prevalent (for soft skills).
Many moms at Monitor
Monitor is described by insiders as being slightly ahead of the curve in the area of
women in the workplace. As one insider puts it, One of the things that struck me
most when coming to Monitor from another consulting firm was the number of
women in the company, many of whom are in very senior positions and have been
with the firm for a long time, often returning to the firm after having kids. I think
Monitor does its best to accommodate mothers by offering nontraditional 20 to 50
percent allocations so mothers can work part time. Another employee concurs that
the firm is very supportive of women and womens advancement, with active
womens networks in multiple geographies and strong female representation at the
partner and board levels.
The firm scores high marks when it comes to ethnic diversity, too. Says one
consultant, As a minority myself, I am aware of the racial diversity of the firm, says
a consultant, and adds, It is heartening to see ethnicities at all ranks, including
partner. The firm is clearly committed to diversity. For instance, when I started in
Chicago, over half of the new hires were minorities. Still, another insider notes,
Monitor only started a formal minority support network this year. Its getting a lot
of support internally, but its still got a long way to go.
When it comes to support for gay and lesbian staffers, Monitor really shines, sources
say. We have an amazing GLBT network. Some of our most senior managers are
openly gay (Im talking in the top-10 people at the firm), and they have taken a broad
role in promoting this at the firm. From day one, our training goes through the
support systems and the people you can turn to, says a source. A colleague adds,
The network within the firm is visible and supportive to anyone, no matter how out
he or she is (the confidentiality policy is quite strict). In addition, an insider reports,
Weve sponsored the Reaching Out MBAconference for a number of years and have
been a lead sponsor for the Out for Undergraduate Business conference since its
inception. In fact, we are the only consulting firm to have board representation on
the Out for Undergraduate Business Conference. In addition, we sponsor GLBT-
specific recruiting events at many schools. Our GLBT network has a diverse
representation across the globe and we host informal events in many of our offices.
We also perform pro bono work in the service of the GLBT community.
Monitor Group
Community service, corporate mission
Monitor invests in nonprofit causes in a big way. For starters, sources say, at the
office-level, consultants take part in a host of activities ranging from silent auctions
to food drives and even charity poker tournaments. At the corporate level, Monitor
covers nonprofit issues through its Monitor Institute, and is partnered with New
Profit, Inc., a venture philanthropy organization, which shares office space and to
whom Monitor lends many consultants to provide strategy advice, explains a source.
Another insider notes that weve teamed with Bain and Parthenon to create a pro
bono consulting group called Inspire, and our summer interns are encouraged to
participate in a community involvement project as a class.
Monitor Group
Monitor Group
Managers at Monitor are
very thoughtful in how
they use the time of their
junior resources.
For a company that has
its deepest roots in
academia, the amount of
humor and fun that can be
found here is really
impressive and unique.
Monitor Group staffers
1166 Avenue of the Americas
32nd Floor
New York, NY 10036
Phone: (212) 345-8000
Fax: (212) 345-8075
www.mercermc.com
LOCATIONS
New York, NY (HQ)
PRACTICE AREAS
Business Design Innovation
Customer & Brand Strategy
Operational Excellence
Organizational Transformation
Portfolio Strategy
THE STATS
Employer Type: Subsidiary of Marsh
& McLennan Companies Inc., a
Public Company
Ticker Symbol: NYSE (MMC)
Managing Director & COO: Bob Fox
2005 Revenue: $3.8 billion (all
Mercer consulting divisions)
2004 Revenue: $3.6 billion (all
Mercer consulting divisions)
UPPERS
Has the culture and feel of a small
company, but is backed by the
resources and infrastructure of
Marsh & McLennan
Genuinely interesting cases for
high-profile clients
Opportunities for development are
second to none
DOWNERS
The lack of brand hurts us
Occasionally poor diversity in case
work
Lack of formal training
opportunities as you advance
EMPLOYMENT CONTACT
E-mail: recruiting@mercermc.com
Mercer Management
Consulting
V A U L T
P R E S T I G E
R A N K I N G
6
THE BUZZ
Good work, friendly culture
Not above getting their hands
dirty and digging into a problem
to really understand it
Mercer=branding chaos
Struggling to be perceived as top
tier
THE SCOOP
Small but mighty Mercer
Though Mercer Management Consulting has just 1,000 staffers worldwide, the
Mercer name is well recognized in the consulting industry, and for good reasonits
a subsidiary of a powerful corporate parent, Marsh & McLennan, which in turn
operates other consulting arms under the aegis of Mercer Inc. Mercer Management
Consulting resides under Mercers Specialty Consulting division, which also
includes Mercer Oliver Wyman (financial services and risk consulting), Mercer Delta
Organizational Consulting (organizational architecture and change consulting),
Lippincott Mercer (brand, image and identity consulting) and NERA Economic
Consulting (microeconomic consulting).
As for Mercer Management Consulting itself, the firm entered the strategy arena in
1990, formed by a merger between Temple Barker & Sloane and Strategic Planning
Associates. The firm proceeded to expand through acquisitions worldwide, operating
25 offices at last count. In 2005, the Mercer Consulting Division posted a revenue
of approximately $3.8 billion, up from $3.6 billion the previous year.
Mercer says its services are distinguished by its outside in approach to strategy, as
the firm harnesses its understanding of current and future customer priorities to gain
insight. The firm breaks its strategic services into four key areas: business design
innovation, customer and brand strategy, operational excellence and portfolio
strategy. Mercer consultants cover an array of industries, including aerospace,
automotive, aviation, chemicals, pharmaceuticals, communications, consumer goods,
defense, financial services, health care, media and entertainment, manufacturing, oil
and gas, retail, technology, transportation and utilities.
Parent trap
Parent company Marsh & McLennan was the subject of unflattering headlines in
2005, following some aggressive scrutiny by New Yorks Attorney Generals Office.
As a result of allegations that Marsh overcharged clients, the company was forced to
cough up an $850 million settlement. (The brouhaha had nothing to do with the
companys consulting arms, but rather with its insurance business.) Mercer
Management Consulting staffers werent immediately affected by the drama, though
there was some worry that consultants who had invested in the parent companys
stock may have felt a pinch as share prices plummeted.
The art of business books
In fact, Mercer consultants have produced reams of business best-sellers on growing
value. Strategy guru and Mercer Managing Director Adrian Slywotzky, named one
of the most influential people in business management by Industry Week, has led the
Mercer pack with his timely publications. Slywotzkys 2002 book The Art of
Profitability, which uses a fictional master of management, David Zhao, to walk
readers through 23 lessons on improving profitability without breaking relationships,
caused a buzz in business circles. Slywotzky retooled his message to match the
shifting economy in 2003 with How to Grow When Markets Dont, co-authored by
Mercerite Richard Wise. This book counsels businesses on how to break through
the growth wall using an approach called demand innovation, which focuses on
customer needs in the spaces surrounding a product.
Mercer Management Consulting also enjoys a high intellectual profile thanks to its
Mercer Management Journal, featuring articles written by Mercer consultants on a
variety of management topics. The firm publishes a diverse array of studies and
surveys, including an April 2006 report on the growth of outsourcing in the airline
industry and a September 2005 report on the future of automobile sales in Europe, to
name a couple.
On the rails
In January 2006, the firm acquired MultiModal Applied Systems, Inc., a Princeton,
New Jersey-based market leader in railway systems planning and service design
software. MultiModal is behind the industry standard software system for freight and
passenger railway operations and schedule planning, and also offers operating plan
design, railway merger and privatization analysis, and other services in the railway
sector. Since Mercer counts many of the worlds largest surface transportation
providers among its clients, the buy was a natural fit for the firm. In August 2004,
Mercer purchased c.r.m. Concord, s.a., a strategy and operations consulting firm
based in Madrid. The Spanish firm had clients in the energy, transport/infrastructure,
financial services and health care industries.
Continental expansion
In July 2006, the firm acquired DiamondCluster Internationals consulting practice in
Europe, South America and the Middle East. In a $30 million transaction, Mercer
assumed companys operations in Paris, Munich, Madrid, Barcelona, Dubai and So
Paulo. The merger was intended to boost the firms IT and telecom capabilities
globally and, in Europe, the newly merged group will become the second-largest
consultancy serving this sector. Mercer also gained about 150 new strategy and
operations consultants in the deal.
Serving Shanghai
While many strategy consulting companies are still waking up to opportunities in
China, Mercer has had a strong presence in the region for over 15 years, serving an
equal mix of large Chinese firms (both state-owned and private) and large
multinationals. One of its more recent Chinese openings was an office in Shanghai.
Mercer also recognizes the industries it serves, through initiatives such as its first-
ever Strategy Prize for Mechanical Engineering, awarded in Berlin in October 2005.
The prize, arranged in conjunction with the business magazine Produktion, was
meant to underscore the growing importance of systematic strategy development in
mechanical engineering.
A helping hand through B-school
Mercer Management Consulting offers its consultants a clear path to advancement
as well as options for those who want to take their careers elsewhere. The firm offers
sponsorships for advanced B-school degrees, and says that historically, nine out of 10
of its consultants are accepted into a top-five business school program. The firm
offers support through the entire MBAprogram application process, including office
visits by top school admissions officers; information sessions; advice on GMAT
preparation, recommendation gathering and other steps; a digital library containing
information on the top schools; and a network of Mercer alumni to talk to.
But the firm doesnt require an MBAfor promotion to associate or partnerin fact,
it says that many of its partners started as analysts (without advanced degrees).
Those who have chosen to exit the consulting world have gone on to enter medical
school at Duke, foreign policy and law programs at Harvard, Oxfords doctoral
program, Whartons PhD marketing program and other ivy-covered halls. Mercer
alumni can be found in the upper ranks of top companies like GE, Cisco, American
Express, Bertelsmann, Citibank, AOL, MTV Europe and Capital One, while others
have gone the venture capital or Internet startup routes.
Generally strategic
Mercer Management Consulting staffers below partner level are expected to be
generalists, working on one or two cases at a time. Projects typically last from two
weeks to over a year, with teams of two to 10 people involved. Mercer outlines its
career ladder in detail on its web site. The firm starts newbies out as analysts; they
carry out essential research and data collection, conduct complex quantitative,
strategic and financial business analysis, and work directly with client teams on client
sites. Consultants at Mercer are typically promoted from the analyst position, though
graduates with relevant work experience or advanced degrees may qualify.
Associates have MBAs when they join Mercer. Theyre responsible for research,
analysis and packaging their findings, and will eventually manage and develop other
case team members. Senior associates, on the next rung are typically promoted from
associateand take on even more leadership roles; of course, this is a significant step
on the way to becoming a partner. The firm also offers a worldwide summer
associate program, allowing interns to join actual project teams. Mercer believes in
giving its people stretch roles and provides extensive feedback (including a 360-
degree review system) and training (with online resources).
GETTING HIRED
Play moneyball!
In addition to rounding up college students from the finest universities, Mercer
Management Consulting uses some interesting recruiting tactics to draw in talented
people from outside the sanctum sanctorum of the countrys top colleges. An insider
reports that Mercer has adopted some unique recruiting strategies that are akin to the
Oakland As scouting system in the book Moneyball. The head of recruiting has
turned some traditional ideas on their heads, and is focused on data-driven hiring in
places where there is less competition. The source continues, Some nontraditional
candidates are coming through a process called off-cycle, and many of them are
absolute stars. While you still see Mercer at the major Ivy League campuses, a major
shift is going on that is paying massive dividends. For example, a large number of
last years analyst class are former disgruntled investment banking analysts, who
jumped at the chance to move into consulting.
The firm chooses the picks of the litter from best-of-breed schools. As one consultant
states, We hire students from top-tier schools and experienced candidates from
industry or competitors. We are very selective both in terms of the expectations on
consulting aptitude and personal/cultural fit. Associates are drawn from Yale,
Dartmouth, Princeton, Harvard, Northwestern and their ilk, while MBAs have put in
their time at Tuck, HBS, Wharton, Kellogg and Stanford GSB, according to an
insider. The firm helpfully provides a list of schools at which it recruits on its web
site.
Fun, like only interviews can be
Insiders call the interview process at Mercer very intense. One consultant
describes the gauntlet aspiring Mercerites must run: For undergrads recruiting on
campus, there are three rounds. The first round is on campus, and is a quick case
interview and a quick resume interview (about 30 minutes in all). The second round
takes place either on campus or else in an office, and consists of one 45-minute case
interview, and one 45-minute fit interview. The third round takes place in the office,
and has two 45-minute case interviews and one 45-minute fit interview. A co-
worker notes that for MBA-level associates, [applicants] typically enter via a
summer internship that requires three case and two resume interviews. Aglutton for
punishment adds, The hiring process was lots of fun. I sometimes thought that there
was too much pressure from the consultants assigned to be my buddies. But the
interviews themselves were fantastic. The people were great and the firm takes good
care of you as you advance through the interviews. Impatient candidates will be
happy to know that Mercer makes and communicates decisions quickly, usually
within 24 hours of the interview, according to a source.
Case in point
Answering the case questions at Mercer requires creativity and an ability to think on
the fly. Each interviewer uses his/her own case, often based on real work
experience, says an associate. Examples include: Explore the market opportunity
for a new invention for a consumer products company, and What would be the
impact of lowering price by 10 percent on profitability for client XYZs business?
(Respondent needs to understand and calculate the price versus quantity trade-off and
realize the difference between revenue and profit by asking for or assuming cost
data), insiders tell us. I usually like to choose the persons favorite hobby, discuss
growth ideas, choose one, create a business model and do a market size around it,
says an analyst. If you had to start a business, what would it be? What would you
need to start it up? What does the market look like, etc? The rest of my cases were
different. In one, a director handed me a series of graphs and asked me to analyze
them and provide a recommendation based on the graphs, recalls a consultant who
successfully weaved his way through the process.
OUR SURVEY SAYS
Accentuate the positive
Employees are happy with the MMC working environment. Mercer puts a lot of
effort into creating a good firm culture. It varies from office to office, but I would
say its quite strong across the board, according to an analyst, while a colleague
labels the atmosphere as open, nonhierarchical, entrepreneurial [and] merit-based.
Another source explains, The culture is very much driven by the junior staff.
Mercer is a very entrepreneurial place where getting involved and taking ownership
are encouraged and rewarded. In addition, The analysts are very helpful to one
another and not out to compete against each other, notes one analyst. People take
their work very seriously, but not themselves, adds a member of the Boston office.
In such convivial environment, its no surprise that colleagues enjoy spending time
with each other out of the office. The culture is outstanding at Mercer. As an office
and on client teams, we take several fun trips to let off steam and for general
bonding, says a consultant. Even management finds time to play, sources tell us:
Partners doors are always open, and staff really enjoy spending time in the office
and socializing outside of work, according to an associate. While it is somewhat
of a personal decision how involved to get in the social life and culture of Mercer, I
think people that choose to be involved will be very pleased with the culture, an
insider opines.
Growth and development
Mercer emphasizes the professional development of its employees through its
evaluation process and open interaction with The Powers That Be. One insider
appreciates that he gets direct mentorship from our most senior partnersthey
actively take an interest in my career and development. A co-worker adds, We
have an open-door policy at my firm. Forming personal relationships with senior
members such as Adrian Slywotzky (voted one of top five management thinkers) is
easy and can be done by people of all levels. One newbie reports that he has had
some fantastic managers who have really helped me grow professionally. I feel like
I know my managers on a personal level as well, and would consider them friends,
not just colleagues. Ive gotten great exposure to high-level clients, including C-level
executives at Fortune 500 firms. Not bad for a new analyst. And another source
echoes the fact that even new analysts get great client contact. Mercer sets itself
apart in this regard.
Train now, apprentice later
Mercer consultants have good things to say about the training programs at their firm.
One consultant explains that new hires go through a one-week Toolkit program that
focuses on general tools and methodologies, and a one-week case simulation
exercise. In addition, the source says, Ongoing training is held in the office with
regular sessions on topics such as advanced Excel techniques, facilitation skills, etc.
However, insiders tell us that as you move up in the ranks, official training is less
pronounced, and on-the-job training steps in as the primary module of education. An
employee explains that training is very good at lower levelsbut as you approach
and pass the partner level, training becomes much less deliberate. Another
Mercerite notes that for principals and above, we have formal selling training that
takes place every month, but in general, most sources feel that a learn as you go
model is the best way to learn the tricks of the trade. The source continues, saying,
At the same time, principals have advisors and other more experienced members of
their teams that can mentor them, and a colleague agrees, asserting that on-the-job
training, however, drives most of what you learn at Mercer. There is no substitute for
actual live experience, and the firm realizes this. Many people who have risen
through the firms ranks believe in the apprentice approach, where you learn by
doing. Also, many people at the firm do a very good job of mentoring and teaching
on an informal basis.
There are those employees, however, who lament the absence of formal training
opportunities for higher-ups. The official training programs are quite good if a bit
rushed (which is understandable, since taking people away from clients is quite
expensive), a consultant reports, and one employee says that he would like to see
greater emphasis on analyst level trainingparticularly around corporate
finance/valuation. These programs may in fact be in the cards, as another staffer
remarks, Efforts are currently underway to enhance the formal training to make it
more directly relevant for new analysts.
Go ahead and stretch yourself
Given the firms emphasis on career development, Mercerites are proud of the
absence of an up-or-out policy at their firm. Mercers promotion policy is among
the best, if not the best in the industry. There is no strict policy around anything,
making it very easy to advance quickly. The fastest movers will go from new
analysts to associates (MBA-level) in about two years if they choose not to go back
to business school. This move is entirely merit-based, not based on how long you
have been with the firm. This is a major draw to Mercer for prospective new hires,
and is truly one of the best aspects of the firm, enthusiastically explains a consultant.
A colleague adds, If you are capable of taking on more responsibility, the firm is
more than willing to let you stretch yourself. According to another insider,
Professional development is a main emphasis of our firm and we invest heavily in
staff progression. We aggressively support through-the-ranks promotions from
analyst all the way to partner. Many of our current partners started with the firm as
analysts.
And, were told, analysts (those hired with a BA) can progress to partner without
getting an MBA, though, as one staffer remarks, We also encourage junior resources
who are interested in their pursuit of MBAs and frequently sponsor their tuition.
Our firms policy is not up-or-out, explains a co-worker. I have seen undergrad
hires (e.g., analysts) promoted to associate (post-MBA position) within a year. It is
based on merit and capabilities, a co-worker concurs. The transparent evaluation
process is also widely praised: A source explains that skill levels are measured
through an extensive evaluation process that takes place on every project and is
reviewed by the entire partner group within the office every six months.
On the beach
Getting ahead at such a clip might seem to require extraordinary efforts, but hours at
Mercer are comparable to those at other consulting firms, sources say, reporting an
average of 60 hours per week. However, these hours tend to fluctuate widely,
depending on the project. One consultant explains his typical workweek of
probably 60 hours, on average. But when Im on a case, I usually am closer to 70
hours. I have spent a decent amount of time on the beach, when I work closer to 40
hours a week. I am a little dissatisfied with the hours, because I would much rather
have it be standard, than fluctuate so greatly.
MMC staffers may find themselves working a little more than usual these days. An
analyst explains, The firm is growing very fast, so right now the hours are a bit
worse than average. Were trying to hire more to ramp up enough staff to keep up
with demand. One factor that may make these hourly requirements more tolerable
is that the firm does not have a face time requirement. Work hours tend to be fairly
flexible (e.g., you can do work from home); the focus is on getting your work done,
not spending time in the office, says a source.
Burn time
Flexible work arrangements notwithstanding, Mercer consultants face similar
work/life balance issues as the rest of the industry, employees report. Consulting is
hard to balance with life, says one master of understatement, and a co-worker
agrees, saying, I would say that there are times when it is difficult to balance work
and life, but I think most of this is more due to the nature of consulting (short
deadlines, etc.). While I do not find myself typically working long hours, or many
weekends, I would also say that it is difficult to predict when long hours or weekend
work will come. This makes it difficult to plan outside activities (e.g., social,
vacations/weekends away, volunteer work, etc.).
Despite long hours, short deadlines and demanding clients, Mercer has several
programs to make it possible for consultants to occasionally have something that
might resemble a life outside of work. Mercer has some formal programs to try to
adjust for this. They sponsor nonprofit fellowships (leave for three- to six-month
stints with nonprofits, and still receive 40 percent of your salary) and leaves of
absence (many people take advantage of these one- to two-month breaks that you can
take without pay, but you receive some benefits and have a job to come back to when
you are done, explains one consultant. He adds that most people use these
[opportunities] to apply to business school, travel or just relax for a while.
In addition to these formal programs, MMC makes efforts to listen and respond to the
personal needs of its employees. One insider reports, I have always found mentors
and office leaders to be receptive and sensitive to any complaints that I have had
about work/life balance. They try to do their best to make sure that after a burner,
you are put on a more slow-pace case, or receive some beach time. Flexible work
arrangements also helpas one associate states, We are free to work from home,
and senior staff respect the weekends. Crunch times require some weekend work, but
that happens rarely. Indeed, sources report working an average of 10 weekends per
year. There is also a mechanism in place to regulate employees hours. An associate
notes, Mercer monitors hours worked to make sure staff are not putting in too many
hours and makes a conscious effort to rein in excess hours. Also, new case feedback
tools allow you to, on a monthly basis, anonymously identify when you feel the hours
on your case are too heavy. The firm is also willing to respect employees
boundaries when it comes to their personal lives. Mercer is very amenable and
accommodating, but you should establish expectations about work and life balance
with your colleagues well in advance, before it becomes an issue, advises an
associate.
Changes of scenery
Some of Mercers perquisites help employees to balance life at the firm and outside
interests. Instead of free lattes in the office, Mercer gives its employees time to catch
up on sleep. Employees give high marks to the 10/11 work yearwhich enables
consulting professionals to take one or two months leave, according to an insider.
A co-worker adds: I think the formal programs they have set up are really the best
perks. These programs are: business school sponsorship (pay for tuition if you agree
to come back for two years); nonprofit fellowships (three to six months, at 40 percent
of current salary); 10/11 month year (leave of absence for one to two months);
externships (rare, but its possible to shift over to a clients organization and work
there for a period of time.
The firms perks arent just designed to get employees out of the officethere are
also perks in place to make staffers time in the office more enjoyable. In the New
York office, events include one major event every quarter (summer cruise, winter
holiday party, and then fall and spring parties). Additionally, there are more casual
events on a monthly basis (e.g., company sponsored ski trip, pub crawls, recruiting
events, etc.), and then the weekly Friday drinks that most people in the office
participate in, says a Manhattanite. According to a member of the Boston office,
they get fresh fruit delivered for lunch. The company pays for an airline club
membership (so you can use the lounge when you travel), and also pays to help you
with your taxes (since you may have to file in multiple states). Another source
enjoys the very reasonable, almost generous, expense policy that the firm provides.
Mercerites still maintain that their firm is not as extravagant with the perks as other
firms, though insiders dont necessarily begrudge this. A source describes the
strategy as very business-focused, so money goes into your bonus versus a lot of
small perks. The company maximizes profit for the individual to spend as they see
fit.
Typical travel
Travel is a necessary evil of the consulting industry, but MMC tries to mitigate its
effects on employees as much as possible. Travel makes my work/life balance more
challenging, but Ive found that when I travel extensively for a while, the firm is good
about trying to keep me home for a while, says an analyst. An associate adds, The
travel is manageable and in line with the rest of the industry. Mercer understands that
travel is demanding and works to make it as easy as possible for the consultants (very
reasonable expense policy, good deals with hotels and airlines, and facilitates
working remotely). With regard to specific travel requirements, a consultant
explains that travel varies. For six months, I traveled four days a week. For the rest
of my time, I have only made day trips for meetings. However, I would say that even
when I was traveling, I didnt mind it. The benefits are greatearn lots of
airline/hotel miles, have all expenses covered and it is firm policy that everyone
returns to the office on Fridays. I could see how traveling to a rural location or far
away would be bad, but I have not had to have that experience. Another associate
comments, I spend a fair amount of time on the road but it is typically not an every
week thing.
Even with relatively moderate travel requirements, some find it to be too much, but
again feel that this is just a typical challenge of the industry, not specific to their firm.
Traveling is one of the toughest aspects of this job, but it is not unusual for a
consulting firm. So long as you come into the job knowing that you will be expected
[to travel] for at least two-thirds of your time with the firm, you will be all right,
cautions an analyst. Determine a way to have less travel, suggests an employee.
Travel requires a lot of adjustment. You get used to it after a while but it never is
easy, says a colleague.
Plush, posh and prestigious
Mercer office spaces receive such generous marks from employees that its a wonder
theyre able to tear themselves away from their cushy surroundings long enough to
pay a visit to a client site. The firms offices are usually quite niceone of the
benefits of being part of Marsh McLennan, says an associate, and they are in the
best locations in the best cities! gushes a consultant. Another source notes, Prior
to 2003, we had miserable offices in Lexington, Mass. Since then, the Boston office
has moved to a newly redesigned office in the John Hancock Tower, one of the most
prestigious addresses in town. The office design and culture have improved
drastically ever since. And a colleague describes the most notable attributes of that
office: flat panel TVs, nicest building in Boston, free coffee, breakfast on Fridays,
etc. And one denizen of the Lone Star State claims that the Dallas office is
incrediblea great group of CCG [Core Consulting Group] partners and support
staff. The office space is commodious and new.
With a clear bonus, you can see forever
Another plus of working at the firm is the compensation, with which Mercerites are
generally pleased. Mercer has been at the high end of compensation, says one
consultant, who adds that if you are promoted quickly, you can receive very high
levels of compensation. Bonuses are all based on your progression. The comp
policy is 100 percent transparent and tied directly to your performance, so there are
no surprises, explains an insider. An analyst notes that the stock purchase plan
(though not as good as it used to be) can still make you some money. The firm also
offers 401(k) matching after the first year and reimbursement for commuting
expenses.
More diversity, please!
When it comes to women in the workplace, MMC is very receptive and respectful
of women. We just dont have enough working at our firm, says a consultant. An
associate adds, Unfortunately, despite strong efforts to reach out to women, we still
lack a large number of women, particularly at the most senior levels. A co-worker
disagrees, however, stating that MMCs gender diversity is not too bad when
compared to the top three management consulting firms. ATexan reports, Within
the Dallas office, we have recently started a womens group dedicated to mentoring
and advising new female CCG. We have informal dinners, a speaker series and
shopping trips to improve female bonding across the office.
While the firm is open to recruiting and hiring minorities, it has been less than
successful in gaining and retaining them. Employees observe that the firm is not
very diverse at all. An insider observes, Much like with our womens hiring
efforts, there has been significant focus on hiring minorities, but with somewhat
limited success. The situation regarding the diversity of sexual orientation at MMC
is more favorable. I would say sexual orientation is really a nonissue at the firm,
which I think is great, says a member of the Boston office. Aconsultant notes that
several of our recent hires fit this category, though an analyst suggests that GLBT
diversity needs more effort from the firm, especially when compared to the top-three
management consulting firms. And, despite the general feeling that diversity at the
firm could stand some improvement, one analyst says, Theres a greater diversity of
backgrounds in our offices than many of our peer firms, which makes the firm culture
slightly less unified, but also provides you with exposure to a much more diverse
group of co-workers, which I believe is a good thing.
Consultants with hearts of gold
Mercer has a strong commitment to giving back to the community. An analyst
reports that we have a monthly firmwide service event, and consultants frequently
donate their leaves of absence to pursue charitable projects. We aggressively
support a wide range of community and charity activities and also give consultants a
number of options for time off (such as a 10-month year) to pursue such activities,
says one of the firms bigwigs. Active community involvement is encouraged,
including externships at nonprofits. In my office, we had one person go to Ethiopia
to work with AIDS patients, and one go to Seattle to develop a supplemental
education program for inner-city children, says an insider. Mercer also donates
employees and billable hours to charitable causes. The firm does a great deal of pro
bono work and sponsors people who do externships for nonprofit organizations,
notes an associate.
For those who choose to conduct their charitable endeavors closer to home, another
consultant adds, Mercer encourages individuals to organize events. Akey feature in
Boston is the yearly charity auction. The auction raises money for volunteer
organizations in the cities in which the firm has offices. A consultant mentions that
the Boston office alone raised $50,000 for a local charity[which is] impressive on
a per professional basis. Another Boston insider lists some of the additional
activities in which his office participates: We do pro bono cases for nonprofit
organizations, host an annual charity auction that raises thousands of dollars, serve
meals as an office at local soup kitchens, and a host of other community endeavors.
We are currently in the middle of launching a new firmwide philanthropic strategy
initiative, which will help unite these efforts to make them more effective. One
service-minded employee remarks, As with every good thing, [we] can always
continue to do more.
99 Park Avenue, 5th Floor
New York, NY 10016
Phone: (212) 541-8100
Fax: (212) 541-8957/8958
www.merceroliverwyman.com
LOCATIONS
New York, NY (HQ)
PRACTICE AREAS
Corporate & Institutional Banking
Corporate Strategy Enterprise Risk
Management Finance & Risk
Insurance Retail & Business
Banking Strategic IT
THE STATS
& McLennan Companies Inc., a Public
Company
Ticker Symbol: NYSE (MMC)
President: John P. Drzik
2006 Employees: 950
2005 Employees: 820
2005 Revenue: $909 million (Mercer
Speciality Consulting division)
2004 Revenue: $774 million (Mercer
Speciality Consulting division)
UPPERS
Smartest, wittiest, most diverse
group of people I could possibly
work with
Balanced lifestyle compared to
competitors
Truckloads of responsibility
(sometimes before you think you
can handle it!)
Travel to major cities and financial
centers
DOWNERS
If youre not up for traveling, this
probably isnt the place for you
Narrow industry
Underdeveloped management
processes (e.g., performance
appraisals) and support
infrastructure
Youve got to get used to not
being the best. Everyone is a high-
performer!
EMPLOYMENT CONTACT
Recruiting North America
E-mail: recruitingna@mow.com
Additional recruiting contacts by
country available at
www.merceroliverwyman.com/en/Ca
reers/ContactUs/Default.xml
Mercer Oliver Wyman
V A U L T
P R E S T I G E
R A N K I N G
7
THE BUZZ
Good work/life balance
Exceptional financial services
strategy
Lacks breadth
Dull work, better to work at a
bank
THE SCOOP
The Mercer clan
Mercer Oliver Wyman is part of the consulting division of Marsh & McLennan
Companies, Inc., a publicly-traded firm with a big presence in the insurance sector.
Other Marsh & McLennan siblings include Mercer Human Resource Consulting,
Lippincott Mercer and Mercer Management Consulting. The firm was formed in
2003 when Oliver, Wyman & Company merged with MMC subsidiary Mercer
Management Consulting.
Mercer Oliver Wymans expertise in financial services strategy and risk management
can be traced back to Oliver Wyman, a firm founded in 1984 by a group of Booz
Allen Hamilton and Boston Consulting Group veterans. At the time, Oliver Wyman
was the only major consulting firm focused exclusively on the financial services
industry. Following the Marsh & McLennan acquisition, Oliver Wyman was
combined with Mercer Managements financial services strategy practice, as well as
the actuarial consulting unit of Mercer Inc., maintaining its high profile in the
financial sector. John Drzik, the president of Oliver Wyman through the merger, has
subsequently become head of all of Mercer Specialty Consulting, a $1 billion
business.
Currently, the combined Mercer Oliver Wyman boasts around 950 employees
working out of 27 offices in 13 countries. Its strategy and risk management areas
include corporate and institutional banking, corporate strategy, finance and risk,
insurance, retail and business banking, and strategic IT; the firm also offers risk
management services through its enterprise risk, actuarial and strategic finance
practices, and serves more than 80 percent of the worlds top 100 financial
institutions, global Fortune 1000 enterprises across all industry sectors, as well as
governmental organizations, regulators and trade associations.
On the move in Asia
Headquartered in New York, Mercer Oliver Wyman has an international flavor, with
a majority of staffers hailing from Europe. Two major European hubs are the London
office, which covers the U.K. and other Western European markets, and the Frankfurt
office, which also works with major European financial companies. The firm
expanded its global reach in October 2005, moving two of its most senior directors
to its offices in the Asia-Pacific region to spearhead its ambitious growth plans in the
Mercer Oliver Wyman
area. In fact, MOW head John Drzik has called the Asia-Pacific region the firms
fastest-growing area over the next five years. The firm established its Sydney office
in 2004, and in June 2005, it opened an office in Seoul, noting that Mercer Oliver
Wyman was poised to help Korean companies emerge from the Asian financial crisis
with long-term organizational and business restructuring services. It also plans to
open an office in Shanghai in late 2006.
Family ties
Mercer Oliver Wyman can draw on its broad Marsh & McLennan clan to provide a
wider range of offerings to clients. In an interview with the Journal of Management
Consulting in September 2003, President Drzik noted that the partnership between
Mercer Oliver Wyman and two other Mercer consulting entities, organizational
design and change firm Mercer Delta and Mercers HR and benefits practice, creates
three sister companies that maintain their own specialties and cultures while
serving the same client space. In 2005, consulting revenue contributed $3.8 billion
to Marsh & McLennans total earnings, with the parent company noting that
consulting divisions such as Mercer Oliver Wyman were driving positive growth for
the firm.
In 2005, Marsh came under the gun of New Yorks aggressive attorney general Eliot
Spitzer, accused of overcharging clients through its insurance business. Marsh was
forced to settle for $850 millionbut more significantly for Mercer Oliver Wyman
consultants worldwide, Marsh saw share prices tumble as the headlines played out.
Take a risk
Mercer Oliver Wyman Corporate Risk Consulting, now over one year old since its
launch in March 2005, focuses on providing the chief financial officer and other
senior executives within the finance function of large corporations with a range of
services aimed at addressing their evolving role, needs and priorities. These services
are housed within three practice areas: enterprise risk consulting, strategic finance
and actuarial consulting.
Corporate risk consulting clients include global Fortune 1000 clients in all industry
segments. Dedicated senior teams with specialized knowledge adapt its approaches
within oil and gas, aerospace and defense, commodities, utilities, retail and consumer
products, chemicals and pharmaceuticals, metals and mining, and technology
companies.
Mercer Oliver Wyman
Read around the world
The firm publishes various annual reports, including annual State of the Financial
Services Industry reports covering various markets. In February 2006, the firm
published a study showing that chief financial officers have a higher-profile
burdenmaintaining corporate credibilityin the era of tighter regulations such as
Sarbanes-Oxley. Other publications have covered the future of business banking in
Europe and the integration of IT into financial services, among other topics. In 2006,
the firm helped produce a report presented at the World Economic Forum held in
Davos, Switzerland, on global risks faced by major corporations.
MOWfound its name in the news in the spring of 2006, as a battle heated up in the
Senate over a bill that would allow business and trade associations to band together
to offer affordable group health insurance to employees through small business
health plans. The firm was tapped by the National Small Business Association to
study the issue, and prepared a report indicating that the legislation would reduce
health insurance costs for small businesses by 12 percent, or about $1,000 per
employee, along with reducing the number of uninsured Americans by around 1
million.
Big on balance
Mercer Oliver Wyman says it differs from its main competitors in the way it treats
consultants, from a commitment to work/life balance to a nonhierarchical
organizational structure. The firm claims to be output, not input, oriented,
eschewing the concept of long hours for their own sake. That said, MOW staffers
can expect to work an average of 55 hours per week, accompanied by plenty of office
socializing such as weekly happy hours, frequent director-staff dinners and
international firm gatherings, and strategy consultants can expect to travel about 50
percent of the time.
The firm describes its consultants as smart, intellectually curious, proactive and
supportive of one anothers efforts. Of its current staffers, 42 percent have BAs, 32
percent have MAs, 9 percent hold MBAs and 16 percent have PhDs. In addition,
another 1 percent hold some other advanced degree, such as a JD, though the firm
notes that it once had a brain surgeon on staff. Regardless of background, all entry-
level new hires start their MOWcareers as generalists.
On-the-job training through an apprenticeship model is preferred over formal training
at Mercer Oliver Wyman, though the firm does offer both. New consultants go
through an orientation program, and further training is available further down the
Mercer Oliver Wyman
road on industry issues and consulting skills. The firm is big on feedback, with job-
end reviews for consultants at the end of each project, as well as annual reviews and
360-degree reviews.
GETTING HIRED
Cash in at MOW
If Mercer Oliver Wyman sounds like the place for you, pay a visit to the firms web
site, where you can find campus recruiting dates as well as an online application.
According to sources, the firm doesnt emphasize MBAs, and does most of its
recruiting from top-tier undergraduate schools. The Ivy Leagues are the biggest
feeder institutions for the firm, says an insider, though recruiters have been
expanding to the West Coast lately, too.
The firms hiring process is said to be very rigorous. Candidates can expect two
rounds of interviews, with campus recruits going through one case and one resume-
based interview on campus, and three cases and two resume-based interviews at an
MOW office, typically New York, a source says. Another reports that for
experienced hires, candidates meet in a first round with local directors, and in a
second round with higher-ups at the New York office.
Meet the chiefs
Employees have plenty of advice on what to expect from an MOW interview. For
starters, be prepared to meet with all ranks, a source says: One should expect a mix
of directors and consultants doing the interviewingand dont be surprised if our
CEO, COO or other very senior partners are sitting across the table from you. The
insider adds, The process is designed to test the knowledge, aptitude, professional
maturity and potential of our candidates. Those who demonstrate ability and interest
are likely to get a second-round interview. Ultimately, one must not only perform
well on case interviews, but be deemed a good fit for the firm to get an offer. The
firm notes that it also looks for candidates to demonstrate a strong set of professional
skills. A colleague adds, Besides doing well on the cases and showing your
engaging personality, you should demonstrate convincingly your interest in both
consulting and in financial serviceswhy Mercer Oliver Wyman?
Mercer Oliver Wyman
Enjoyable cases
Many interviewees have commented over the years how unique and enjoyable
MOW cases arethey are not mundane estimation problems or brain teasers, a
consultant notes. Another insider concurs, stating, The case interview is not really
a brainteaser type (i.e., why is a man-hole cover round), but more of a real-life walk
through of a typical case a consultant might encounter. According to a colleague,
Expect a market sizing portion to each case, in addition to a strategy-based case
comparing a client and its competitors, and something that requires a mathematical
graph somewhere in the case. I would say that we focus on the quantitative side more
than other firms.
OUR SURVEY SAYS
Academicwith an edge
At Mercer Oliver Wyman, youll find a culture thats described as irreverent,
creative, intellectual, extremely laid-back, fun and casual, a great blend of an
entrepreneurial culture and teamwork environment, and one that boasts an open-
door policy with open-minded people, sources report. Perhaps one consultants
comment sums it all up: Mercer Oliver Wymans culture lies somewhere between
19th century Harvard and Animal House. The insider continues, MOWconsultants
are a worldly bunch with a diverse range of professional, cultural and academic
interests. At the same time, the average age hovers in the mid- to upper-20s. Our
culture tells you to work hard and produce excellent results while having a good time
and enjoying the company of your co-workers.
Even as a rapidly growing subsidiary of a large corporate parent, MOW has
maintained a small-firm culture, another source notes. I think MOW has been
extremely successful at maintaining a loose and nonhierarchical corporate culture,
even as the firm has grown in size, agrees a colleague. According to an insider,
Many more experienced people here, especially directors, actively seek to strike a
relationship with lower people in the office, whether they be first-year consultants
or support staff. It stands to reason, as its quite common for [senior] level people in
the firm to be working with entry-level hires directly on major projects. Indeed, the
firms commitment to lack of hierarchy is reflected in the fact that all the members
of the firm (including the CEO down to first-year consultants to support staff) share
the same flight/accommodation policies, another source observes.
Mercer Oliver Wyman
Sharing and caring
Theres also a team spirit at work in the firm, insiders suggest. One consultant
reports that each of the domains has a listserv on which people post key questions
related to methodology/best practices on their specific casework. For every question
posed, at least 10 people tend to respond globally with advice and suggestions. A
colleague adds, While the firm is full of high achievers, most people are very easy
to work with and do not have big egos. And MOWboasts a diverse crew, another
source says: The average person here often speaks two or three languages, and it is
often the case that as a U.S. citizen, I am outnumbered in a meeting by Europeans.
Monitoring WLB
Work/life balance is more than just an ideal at MOWits an acronym (WLB), and
one of the firms core values, sources say. We have monthly staff surveys about
WLB. Those flagging bad WLB are contacted by HR to see what can be done to
improve the situation. Sometimes additional team members are added to help.
Directors compensation is affected [when] their teams have bad WLB, one insider
reports. Another source asserts, I dont know any other place where directors pay
actually gets docked if the individuals on the project consistently work too many
hours. My immediate boss actually put it in my objectives this year that I get home
three nights a week in time to put my young children to bed, a co-worker tells us.
I can drive 55
All this adds up to manageable workweek for most MOWconsultants. Late nights
happen occasionally, but the firm sticks to a 55-hour average workweek, and its
absolutely true in practice. Sure, there are weeks that its worse, but there are just as
many weeks that its better, a source says. It is almost a given that consultants do
not work on weekends, with exceptions for intense projects, reports a source. A
colleague adds that there is a very strong culture principle [that] output, not input
is what matters so people do not need to worry about face time.
MOW consultants do enjoy their face time with colleagues, thoughespecially on
Fridays, with work usually coming to an abrupt halt for mandatory office happy
hour at 5 p.m., a source says. While some consultants are granted the option of
telecommuting on Fridays, generally all staff are encouraged to be present, which
most sources approve of. As one insider puts it, I love MOWs policy of having all
New York staff back in the New York office on Fridaysit makes Fridays much
Mercer Oliver Wyman
more relaxed, while allowing consultants to catch up on the latest intellectual capital
being developed on other projects.
The cosmopolitan set
On average, MOW consultants report traveling about half of their time, generally
spending four days at the client site. As one insider explains, Consultants are to
expect travel 50 percent of the time (whether this means traveling to another country
and staying there or traveling during the workweek depends on the project). In
addition, the director on my project allows my team to travel on Sunday nights (and
stay at a hotel) so that we do not have to be groggy from traveling early on Monday
mornings. Also, a colleague notes, the firms flexible travel policy allows you to
fly another person to your location in lieu of flying to your home base. And you can
opt to travel to another location besides your home office if the fare is comparable.
Another staffer says the travel itself can be a perk: Given that our clients are in the
financial sector, the travel tends to be to interesting placesLondon, Paris, Zurich in
Europe, or Chicago and San Francisco in the U.S.
No MBA elite
Getting ahead at MOW happens on very individualized tracks, sources tell us.
Because we dont hire aggressively from the MBApool, we do not have a strict up-
or-out policy, a consultant says. Rather, individuals tend to either make partner in
a six- to nine-year time frame, or self-select out of the firm. Top performers can
expect significant raises and rapid promotion. Those without the desire or motivation
to advance in the firm usually go on to top business schools, other graduate schools
or go work for our clients in management positions. The firm comments that it has
been known for consultants to make it to partner in five years. Another employee
calls the firms approach to promotion softly up-or-out, with no systematic
culling of the ranks. According to a colleague, since MOWhires basically for the
path to partner, it is seen as a failure of the firm, rather than the individual, if a
person does eventually not make the grade. While traditionally, most of MOWs
directors began at MOWimmediately after college, a source adds, more recently,
we have been hiring more external job managers and directors in order to
accommodate our fast-paced growth.
Mercer Oliver Wyman
Paycheck perks
Of course, a chance to noticeably boost their pay packages each year gives many
MOW insiders plenty of incentive to climb the ladder. There is a wide dispersion
in pay raises (from 0 to 25 percent per year) that serves as a clear signal as to ones
performance and perceived value to the firm, a source says. We have among the
most differentiated and aggressive compensation trajectories in the industry, another
insider observes. Top performers can experience 25 percent annual growth in
compensation between joining and becoming a director (partner), and even faster
after that.
Bonuses are nothing to sneeze at, either, a consultant suggests: For consultants
below the director (partner) level, we have a shared bonus pool [based on firm
performance] that is the same percentage of base salary for all consulting staff
(obviously, more senior staff have higher base salaries). We target 50 percent to 65
percent in a typical year. This year, the bonus was 70 percent of base salary. Support
staff also participates in a bonus scheme that has a different structure. In addition,
a colleague explains, Due to being a part of the Marsh McLennan family, we
participate in a number of profit-sharing plans. These include matching contributions
into our 401(k)s, as well as a stock purchase plan. Another insider grumbles,
however, that the plan was modified so much its benefits are irrelevant now.
Jetsetting in style
MOWinsiders are an adventurous bunch, so they tend to rave about perks associated
with travel. We try to take advantage of the weekends to really see the countries
where we are working, and since the teams we work with are always extremely fun,
it is always a very good time, a consultant says. International Firm Day every year
is an interesting way to meet the firm and a fun change of pace. Travel to exotic parts
of the world (South Africa, etc.) can be a perk if youre interested, another source
reports. Plus, due to the great travel rewards, such as frequent flier miles and hotel
points, youll never pay for a vacation again, cheers a consultant.
MOW also doesnt skimp on the vacation days, as new consultants [in the U.S.]
receive 15 vacation days and can easily roll over unused days into subsequent years.
In addition to this, we receive two personal days and the option to defer any federal
holidays through which we work, a consultant explains. The firm adds that longer-
serving consultants get an extra five days of vacation.
Mercer Oliver Wyman
Yes, a wine refrigerator!
For those working closer to home, there are the best snacks and drinksplenty of
sugar to keep the consultants happy, along with about six director-staff dinners per
year, for which it seems like directors spare no expense to allow the consultants to
have a good time, a consultant claims. In New York, theres even an espresso
machine and wine refrigerator, and consultants dont have to pay for anything
during the workweek when youre staffed on a project out of your home office,
insiders say.
New age hot desking
Offices also get the thumbs up from staffers, especially the New York office. Those
based in the New York facilities praise the design of their digs. They describe the
office as avant-garde, New Age with a relaxed atmosphere, and they appreciate
the very open loft-like feel of officevery hip for [the] dot-com era. One insider
notes, Our offices are perfect for consultants. We have no dedicated desks allowing
for hot desking when in the office. Further, our office amenities and open plan
create a very social atmosphere that creates a sense of firm unity. New York-based
staffers also enjoy the location of the Midtown office. One insider states, [The]
office location near Grand Central is excellent and convenient. Lots of places to eat
nearby! while a colleague agrees that the Midtown location is ideal.
The one complaint about the Manhattan office is that since it is in an expansionary
phase at the moment, the space is experiencing growing pains, and plans are in
the works to change locations in the next couple of years. Others dont mind the
squeeze, especially on Fridays when consultants return from client sites. According
to one consultant, the office gets a little cramped on Fridays, but makes for a nice
social buzz. As for the other MOWoffices, one manager generalizes, saying that
the offices are never plush, but all are efficient, reasonably fitted out and well
located.
Superb supervisors
Of course, having a decent relationship with your manager is perk enough for many
staffers. Directors are very friendly and down-to-earth. And theyre expected to be
so at our firm, a source reports. A colleague notes that for all firm events, all the
directors show up, and stay and interact with all employees at all experience levels.
There is a lot of interaction between the consultants and directors. One downside to
supervisor relationships at MOW, an associate notes, is that the firm is growing
Mercer Oliver Wyman
rapidly, which means that at times, there is less internal communication with
executive management than would be ideal, but it is workable. The interaction and
access to clientsat all levelsis superb. In general, sources claim that the firm
feels fairly free of hierarchy. The firm notes that it facilitates internal dialogue
through regional gatherings and office-based town halls.
Sources also report being satisfied with interaction with management at client
organizations. As one higher-up claims, exposure to client management is entirely
based on aptitude without concern about number of years in consulting and/or the
firm. One newbie consultant emphasizes this fact, stating, Consultants interact
with directors, managers and clients from day one. They are really treated as equal
members of the team. Another recent hire agrees: My job manager has given me
incredible stretch opportunities to interact with the client and essentially manage my
own work streamall of this within my first year at the firm. If you are capable, you
will be given every opportunity to take on more responsibility and learn.
Bringing back the formalities
After years of mainly relying on an apprenticeship model, with the belief that you
learn faster by doing, MOW has recently turned its attention to formal training,
sources report. In addition to a five-day orientation in your first week, there have
been training sessions on finance/statistics, modeling, Excel, Access, professional
maturity, production [and] research to name a few just in the past six months, an
insider states. And, the firm reports, emerging project managers and more senior
project managers receive three-day training programs off-site. A colleague explains
that MOW is currently undergoing a comprehensive review of our training
practices. Incoming classes will benefit tremendously from a full set of reworked
training materials and a very well-designed training agenda. Adds an insider,
Training is conducted mostly by senior consultants or directors who can convey
experience and skills specific to our business model. In addition, MOW claims,
training is increasingly being rolled out to directors, who can now participate in a
range of leadership and rainmaking programs.
Females in finance
Employees report that MOWhas taken steps to encourage gender diversity. Were
a consulting firm. Furthermore, we specialize in financial services. This historically
has been in the sweet spot of gender bias, a coonsultant notes, adding that despite
the odds, MOW does an admirable job at combating this historical reality and
Mercer Oliver Wyman
pushing the trend in a new direction. The source observes that incoming classes
have been about 50 percent female, and early attrition is no higher among our
female consultants than male consultants. A female consultant tells us that
although we do have a relative minority of women compared to other consulting
firms, probably partly due to our focus on financial services, women are treated
equally throughout the hiring process and afterwards. She adds, The firm also has
a new and active womens group and makes a lot of effort in this area.
As for minorities at MOW, Race simply does not seem to matter. Its about how
good you are, says a source. Most project teams feel like a mini-UN meeting, and
lets just say that teams made up of solely white males are very uncommon, other
insiders add. Though there is no formal group/organization for gay MOW
employees, the firm reportedly does extend benefits to same-sex partners.
Some service
Community service at MOW gets fair-to-middling reviews. We are trying to get
more involved in the community (through breast cancer walks, local tutoring
programs), but we have been moving very slowly on this issue, a source reports.
According to a colleague, One can generally find an MOWcontingent at the larger
charity events in New Yorkthough that involvement is not always directly
sponsored by the firm. Another staffer notes, We sponsor community involvement
activities for our summer interns, and are in the process of developing a pro bono
consulting program for charities. The firm, however, notes that it has been
improving in the area of community service. Some of the global offices have created
community service committees that plan and organize both charity and community
service events. There were also community service events that occurred in each of
the International Firm Day locations this year, and MOWs New York office also
recently kicked off a partnership with a local youth organization.
Mercer Oliver Wyman
New York, NY 10036
Phone: (212) 345-7000
Fax: (212) 345-7414
www.mercerHR.com
LOCATIONS
New York, NY (HQ)
Offices in 41 countries and
territories
PRACTICE AREAS
Communication
Health & Benefits Consulting
Human Capital Advisory Services
Human Capital Product Solutions
Mercer Investment Consulting
Mercer Global Investments
Mercer HR Services
Retirement Consulting
THE STATS
& McLennan Companies Inc., a
Public Company
President & CEO: E. Michael Caulfield
UPPERS
Flexibility and independence
Opportunities for advancement are
great
DOWNERS
Not enough formal training
Outsourcing will be the name of
the game
EMPLOYMENT CONTACT
www.mercerhr.com/joiningmercer/
home.jhtml
Mercer Human Resource
Consulting
V A U L T
P R E S T I G E
R A N K I N G
8
THE BUZZ
Good niche player
Better than their reputation
Work staff exceedingly hard
Marsh affiliation has hurt their
reputation
THE SCOOP
Reigning over HR
A subsidiary of Marsh & McLennan Companies (MMC), Mercer Human Resource
Consulting has carved out a powerful position in the HR sector. As the largest HR
consultancy of its kind, Mercer HR employs more than 16,500 people in 41 countries
and territories. The firm has grown through a steady stream of strategic acquisitions,
partnerships and mergers. Founded in 1937 as the employee benefits department of
Marsh & McLennan, the company took the name of William M. Mercer when its
parent company acquired the Canadian consultancy William M. Mercer Limited in
1959. Mercer became a wholly-owned subsidiary of MMC in 1975, and in 2002, the
human resources firm was rebranded as Mercer Human Resource Consulting.
Mercer HR draws from the strength of its massive corporate parent, a $12 billion
company. Within Marsh & McLennan, Mercers consulting businesses are managed
as two business areas, Mercer Human Resource Consulting and MMCs specialty
consulting businesses.
Mercer HRs menu of services includes communication consulting to help clients
with effective employee communication; health and benefits services; human capital
services, such as performance measurement, executive pay and sales effectiveness;
investment consulting, working with pension funds, foundations, endowments and
other investors in more than 35 countries; HR administration and outsourcing
services; mergers and acquisitions; and retirement consulting.
Changing leadership for changing times
In September 2005, former Mercer HR President and CEO Brian Storms became
chairman and CEO of Marsh, Mercers sister company specializing in risk and
insurance services. Taking over the lead role at Mercer HR was former COO E.
Michael Caulfield. Caulfield, who boasts more than 30 years of experience in the
financial services sector, assumed leadership on the heels of a turbulent time for the
firm. In 2004, Mercer was implicated in a lawsuit filed by New York Attorney
General Eliot Spitzers office against former New York Stock Exchange chief
Richard Grasso over executive pay. Mercer, which had advised the NYSEs board
on Grassos pay packageconsidered excessive by manyagreed to a settlement to
bring the matter to a close that year. Caulfield is now focused on leading the firm
through a period of intense change characterized by new competition and the global
acceptance of HR outsourcing as a business solution.
Mercer Human Resource Consulti ng
But the courtroom drama didnt entirely disappear for the firma January 2006 Wall
Street Journal article noted that Grasso was launching a quest for testimony and
internal documents related to Spitzer. Though this challenge was seen as an uphill
battle by observers, Grasso wasnt going down without a fight. His lawyers argued
that internal reviews completed by the NYSE were biased because the companies
had incentives to blame past managers and protect current ones, the WSJ reported.
Part of the problem, court documents revealed, had to do with how Spitzers office
obtained the settlement agreement with Mercer HR. Mercers settlement with the
Attorney Generals office had involved admitting it provided the NYSE board
inaccurate or incomplete information about his pay, according to the article, which
also noted that Mr. Grassos lawyers want to question Mr. Spitzer about whether he
pressured Mercer to cooperate by noting that Marsh & McLennans mutual fund
management unit and insurance brokerage also faced regulatory scrutiny.
Investing in outsourcing
Courtroom clashes aside, 2005 proved to be a pretty successful year for Mercer HR,
with revenue at $2.708 billionjust a hair higher than the firms 2004 revenue of
$2.704 billion. At least some of the firms success has come from its moves into the
lucrative outsourcing arena. In January 2004, the firm acquired Synhrgy HR
Technologies, a provider of HR technology and outsourcing services to Fortune 1000
companies. The acquisition added over 375 employees and extended the firms
capabilities in the U.S. to include retirement and health and group administration,
employee relations, absence management, payroll customer support, compliance and
data management. The business, which was renamed Mercer HR Services, joined
with sister company Putnams defined contribution administration business in June
2004 to create a cohesive full-service human resources outsourcing organization.
With outsourcing of services like HR becoming an increasingly popular choice for
profit-minded corporations, the division has expanded steadily. These days, Mercer
HR Services employs more than 4,100 staffers in service centers located in
Melbourne, Toronto, Dublin and London, while another 1,600 staffers work in four
U.S. service centers. The firms HR services business continued to thrive well into
early 2006. During the first quarter of the year, the division added 11 major clients,
bringing the total number of clients since the 2004 launch to over 70. Notable names
added to the client rolls in 2006 included MGM Grand, Unisys, Chevron Phillips
Chemical, Wheaton Franciscan Healthcare, Magnum Coal Company and Hillenbrand
Industries.
A helping hand
While outsourcing is primarily used for administrative functions that require little
ongoing employer involvement, co-sourcing is an option for strategic areas like
compensation, which require more hand-holding with the client. After launching co-
sourcing services in the U.S. and Europe over the past few years, the firm has begun
moving these services eastward. In February 2006, the firm expanded its
compensation management co-sourcing services in the Asia-Pacific region, focusing
on the countries with growing compensation challenges, such as Singapore, Greater
China, India and Australia.
Down under, across the pond
In September 2005, the firm completed the acquisition of Watson Wyatt New
Zealand, solidifying its position in the region. The deal followed its April 2005
acquisition of the Australian operations of Mellon Human Resources and Investor
Solutions. Over in the U.K., Mercer combined its employee benefits business with
that of Marsh in September 2005, expanding Mercers U.K. staff count to 3,000. The
firm also has announced its ambition to become the HR consultant of choice in the
Asia-Pacific region. In May 2006, Mercer HR announced a number of appointments
in its Hong Kong office aimed at strengthening its position there. In November 2005,
the firm opened its sixth China office, in Dalian.
Tracking the money
The firms investment consulting division publishes an array of regular performance
surveys tracking results for corporate, public and foundation/endowment plans
targeted toward specific audiences. One growing division within the investment
consulting business is responsible investing, which helps investment organizations
integrate environmental, social and corporate governance considerations into their
investment decision making and ownership practices.
Audis and avian flu
Mercer HR keeps its name in the news with widely read surveys and studies touching
on employment and benefits trends worldwide. A May 2006 study showed that
maternity benefits vary widely throughout Europe, with Denmark and Norway
topping the list of the highest level of maternity benefits, and the U.K. and Ireland
ranking at the bottom. Another study, published in April 2006, looked at the
popularity of company cars for execs in Europethe Audi A6 and Mercedes E220
ranked at the top. On a more serious note, a March 2006 survey found a striking
gap between companies concern about the impact of a human avian flu pandemic
and actual pandemic planning.
Coming in first
The firm also gets plenty of attention in the industry for its dominance in areas such
as pension management. In January 2006, Mercer HR was named Benefits
Consultant of the Year in the annual Global Pensions Awards for the second
consecutive year by a panel of 20 judges made up of pension funds and consultants
globally. In April 2006, the firms U.K. division was named Pensions & Benefits
Consultancy of the Year in the annual Professional Pensions Awards. In addition, the
readers of Business Insurance voted Mercer HR the best overall employee benefits
consulting firm in 2005.
GETTING HIRED
Check the web site
Mercer HR seeks to hire candidates who have graduated from advanced degree
programs in math, statistics, economics, business, HR management or actuarial
science. The firm also offers a summer internship program, typically available to
students entering their junior or senior year of college, but some opportunities may
also exist for rising sophomores or MBA candidates. Atypical junior position is an
analyst in consulting or actuarial services. The company often conducts campus
recruiting events. Interested candidates can check the companys web site for
information on which schools the firm will visit. Candidates are also invited apply
for specific positions on the web site.
Focus on analytics
Candidates who go through campus recruiting can expect one on-campus interview
and a second round of multiple interviews in the office. One source reports that the
process isnt too drawn out: Whenever possible, we try to limit to one round of in-
office interviews. And case questions arent given in every instance, says a
consultant: Well sometimes give cases to assess analytical skills if we are unsure.
OUR SURVEY SAYS
Culture of independence
Insiders give high marks overall to the Mercer HR culture. As one source remarks,
Generally, people at Mercer HR are very friendly. Individual freedom is also a
positive point of the firms culture. Once youve proven yourself to senior
consultants, you generally are able to work with very little oversight. This means
coming into the office when you want, having a lot of input on final recommendations,
being able to set your own research or IC development agenda, etc., expresses an
insider. And another concurs, adding that the firm is very open-minded about changes
for employees, i.e., lots of telecommuting, part-time [arrangements].
Busy, not burdened
While consultants at Mercer HR admit to staying busy, they dont seem to feel
overworked; sources say a 50-hour workweek is normal. We work on multiple
engagements at once (typically a senior associate in my line of business will manage
three to seven projects at any time). Atypical project lasts six to eight weeks, but we
have many ongoing client engagements, a manager details. But despite the
seemingly lighter workload, consultants dont have to deal with much downtime,
according to an insider who claims, We are almost always billable or working on
intellectual capital developments.
Associates at Mercer HR are also pleased that heavy travel isnt a part of the job. A
manager explains, Most of my clients are local, and we do not do on-site work
anyway, so we generally only have to travel for meetings, interviews and internal
training.
Balance assured
The firms flexibility and lack of travel contribute to a satisfactory work/life balance
for Mercer folks. One insider happily states, I have been working part-time from
home for eight years (before high-speed Internet access). Another source comments
on having to juggle client commitments while trying to maintain a steady balance:
Because we dont have to travel as much as other consulting firms, I would say we
generally have a better work/life balance. But, at least in my line of business, we
have to manage the competing priorities of many different long-term and project-
based clients, which at times can be difficult.
Training drawbacks
Sources agree that the firms training is not its best feature. I think we could
improve our formal training processes. Alot of training is on the job or varies based
on the office you work in, a manager reveals. There is a combination of on-the-job
and formal training, though one source says a lot [is] done via town halls. A
colleague reports that this lack of training has had a negative impact on his
experience at Mercer HR: For me, making the transition from an individual
contributor to a people manager has been tough. And since my supervisors are not
the best role models in this arena, I feel like I could have used more formal training
in this area.
Grow a career
We do not have an up-or-out policy, but we do have a grow-or-go policy, explains
an insider. In general, Mercer HR is very open to all kinds of career paths. [The
firm] provides new opportunities for people who want them, and is also responsive
to employees who want to do other things, asserts a colleague. But the firms
expectation is that consultants will naturally advance in their chosen area of
specialization at the firm. According to an associate, Consultants are not
encouraged to leave to get their MBAs (although many do), but we are expected to
continuously learn new thingsbe it developing an in-depth understanding of
regulations, mastering board presentation skills or learning about other business lines
to increase the likelihood of cross-selling. As for advancement itself, insiders say it
takes initiative to move up quickly. Consultants in my business line (human capital-
executive remuneration) can advance quickly if they are proactive. But you do reach
a bit of a ceiling at the senior associate/principal level, because you need a little gray
hair before you can work directly with Fortune 500 boards.
Competitive compensation
Compensation at Mercer HR earns positive reviews from respondents. I have a
specified target and maximum bonus structure that increases by level, explains one
source, who adds that there have been occasions when I have received a bonus that
exceeds the maximum for my level. In addition to bonus, the firm gives generous
annual pay increases, according to a senior member of the firm: I have received
greater than a 10 percent pay increase every year I have been at Mercer, and in about
six years of service, my pay is now 300 percent higher than when I started. I wish
the comp plan was more highly leveraged, but they actually increased upside
opportunities this year. My story is not typical, but there are good opportunities for
star performers at Mercer.
Broken-down benefits
But while overall compensation receives high marks, employees are down on
benefits at the firm. One source reports, Our retirement and health and welfare
benefits, which we receive through our parent company, MMC, have been decimated
in recent yearsthe pension plan was gutted, our employee stock purchase plan
discount was essentially turned into a savings account, the stock investment plan
match was changed to be performance-based, and my health insurance premiums and
co-pays have probably increased by 400 percent since I joined the company.
Perhaps this explains why sources delight in the little things offered. Says one
associate, Im easy to pleaseI look forward to breakfast every Tuesday.
Insiders also enjoy the Mercer HR facilities, with the San Francisco office held in
especially high regard. Sources love working out of the fabulous San Francisco
office. One Cali-based consultant raves, We have a view of Alcatraz and SF Bay
from my office. Fantastic! We probably have one of the best offices in the country,
though.
Equal treatment, not representation
The firm is doing well maintaining a diverse consultant population. We have a lot
of strong women leaders at Mercer. [Its] definitely something you recognize as soon
as you arrive here, an employee notes. And when it comes to other types of
diversity, respondents say all groups are treated equally at the firm. One manager
declares, I may be biased living in San Francisco, but we hire and promote a lot of
gays, lesbians and bisexuals in my office.
But with regard to minority representation, the firm has no official programs of support,
however insiders claim it is working to change things. We hire a lot of people with
Asian ethnicity, but dont rate so well on our Hispanic and African-American diversity,
especially among the senior ranks within the company. We have taken some actions to
try to improve this, but progress is slow to come, laments a consultant.
Although no specific efforts are mentioned, colleagues insist that Mercer HR is involved
in community service. Every office has its own charity efforts. Our office collectively
decides what causes we want to direct our efforts toward annually, explains an insider.
200 State Street, 14th Floor
Boston, MA 02109
Phone: (617) 478-2550
Fax: (617) 478-2555
www.parthenon.com
LOCATIONS
Boston, MA (HQ)
San Francisco, CA
London
PRACTICE AREAS
Business Strategy
E-Strategy
Merger Integration
Principal Investing
Startups
THE STATS
CEO: Bill Achtmeyer
2005 Employees: 150
2004 Employees: 150
UPPERS
Small firm with good reputation
DOWNERS
Localized
EMPLOYMENT CONTACT
Eileen McBride
The Parthenon Group
200 State Street, 14th Floor
Boston, MA 02109
E-mail: recruiting@parthenon.com
See additional recruiting contacts on
the firms web site
The Parthenon Group
V A U L T
P R E S T I G E
R A N K I N G
9
THE BUZZ
Smaller version of Bain
Friendly, collegiate
Undiversified
Competitive internally
THE SCOOP
Boston boutique
The Parthenon Group, a self-styled boutique consultancy puts an emphasis on
quality over quantity. The Boston-based firms mission statement is to be the
strategic advisor of choice for CEOs and business leaders worldwide. Its an
ambitious goal for Parthenon, a company that has traditionally been very selective
about the clients it chooses. Since the start of the new millennium, Parthenons head
count has remained stable at 150 staffers and, in fact, world-domination does not
seem to be its main focus. Rather, Parthenon emphasizes personalized service and
life-long commitment to its small, but noteworthy list of clients. Established names
like American Express, Bear Stearns and McGraw-Hill rely on Parthenon for
strategic advice; and within the dressed-down side of the party, Parthenon also does
business with companies such as Ebay, Artic Cat and the recently resurrected Indian
Motorcycle Company.
Greek history
The Parthenon Group was founded in 1991 by Bill Achtmeyer and John Rutherford,
two ex-Bain heavyweights. The firm first specialized in business strategy and capital
investment, but as it increasingly dabbled in the financial markets, the founders
decided to split the company. John Rutherford took over Parthenon Capital and is
now the managing president of that equity firms whopping $1.1 billion capital
assets. Achtmeyer took the strategy wing of the company and began to carefully and
deliberately grow the consulting side of the business. Although these two sister
organizations are now fully and legally separate, ties between the two remainand
Achtmeyer (who specialized in mergers and acquisitions at Bain) has continued to
make financial services a core of Parthenons services, advising firms on equity
issues and potential acquisitions.
Bitter battle
The most visible example of The Parthenon Groups participation in the volatile world
of acquisitions was the high-profile HP-Compaq merger of 2002. Walter Hewlett, son
of HP-founder Bill Hewlett, attempted to prevent the deal. He hired Parthenon, and the
consulting firm found that HP would be better served increasing its high-margin printing
and imaging market share. Despite Parthenons advice, but not without one of the
bitterest proxy fights in business history, the deal went through. Parthenons opinion?
The Parthenon Group
We are confident that time will tell that this was not the best decision for HP
shareholders.
The general gist
Parthenon offers consultation for clients in more areas other than equity issues and
buyouts. The firm calls itself a generalist, but has a special eye on the
manufacturing, consumer retail, health care, medical devices and software industries.
It also specializes in advising CEOs on cost reduction, profit improvement and
product development. Much of the firms intellectual capital is divided among three
broad areas: education, macroeconomics and company value creation. Edupoints is
its umbrella term for education briefings directed toward business leaders. One 2002
example analyzed the effectiveness of cutting-edge computer-based training systems
for employees.
The firm also publishes seasonal economic reports, which it dubs Parthenons
Perspective. Adetailed spring 2005 study by Roger E. Brinner, the companys chief
economist, analyzed the near and long-term future of the American dollar. Despite
these occasional white papers, much of the companys strategy advice is dispensed
under the aegis of its Full Potential Paradigm plan, which the company
trademarked in 1992. The strategy boils down to three points: maximizing a
companys own performance; taking advantage of all growth opportunities; and
monitoring gaps in perception that can affect a stock price and company investment.
Equitable?
Continuing a practice it began in 1993, Parthenon often does not charge clients
directly. Its contracts often have risk-based fees in which Parthenons performance is
directly tied to its paycheck. A controversial practice, Parthenon also often accepts
equity rather than cash for services rendered. This has the potential to lead to
conflicts of interest, not to mention being a tricky subject to handle when it comes to
selling the stock. The firm took a million-dollar hit in 1999 when a health care
provider it was serving tanked. In an article in Inc. later that year, Parthenon CEO
Achtmeyer said, I was not the most popular guy around here after that. Taking
equity may not be a strategy for the big boys, but it has remained a decent bet for
Parthenon, whose attitude toward clients is to form close partnerships. It could
also be another reason why the company is so selective when it comes to choosing
clients. Regardless, its a crucial piece of Parthenons boutique vision of consulting
through personalized and highly involved service.
The Parthenon Group
GETTING HIRED
Boutique shopping
Parthenon prides itself on its small size and boutique status. So despite its successes,
the firm has no plans for rapid expansion and keeps its hiring selective. It comes as
no surprise, then, that successful hires have graduated from top-notch academic
institutions such as Harvard, Dartmouth, MIT, Stanford, INSEAD and the London
Business School. For those still in school, it may be a good idea to get a running start
into a Parthenon positionand the firm provides opportunities for doing so.
Undergrads can apply to become summer associates. These interns have a chance to
mix and mingle with full-time staff, in addition to getting the inside skinny with a
week of training with the Parthenon toolkit. MBA students have a similar program
in which they come to the firm as summer principals and have the opportunity make
an even deeper impressionthe firm says that many are given offers to return as
full-time members after graduation.
But, whether youre in school or out, be sure to visit Parthenons career web site if
you have any interest in the company. The site is short on specific, current job
opportunities, but includes a detailed description of each position, including what
training is provided, how quickly you can become promoted and who to contact if
you want to send along your resume. Theres even a Frequently Answered Questions
section that covers diverse topics such as, What is the company dress code? and
Do I get to choose my own projects?
If an interview is granted, the process is pretty standard, with multiple interviews
probing your business savvy and personality fit. For a final word, one insider explains
that the hiring process is comprised of two rounds of interviews: a one-hour phone
interview, then a full [interview] where I met most of the firm. He notes that the in-
office meeting included several consulting-like cases where you analyzed an
investment opportunity or business situation; the rest was mostly fit questionstrying
to understand my interest in the firm, knowledge of the industry, career goals, etc.
The Parthenon Group
1633 Broadway, 35th Floor
New York, NY 10019
Phone: (212) 492-4500
Fax: (212) 492-4743
www.deloitte.com
LOCATIONS
New York, NY (HQ)
Offices in more than 40 countries,
along with access to consulting and
advisory professionals in nearly 150
countries through the member firms
of DTT
PRACTICE AREAS
Enterprise Applications
Human Capital
Outsourcing
Strategy & Operations
CFO Services
Corporate Real Estate
Corporate Strategy
Customer & Market Strategy
Enterprise Cost Reduction
Revenue Enhancement
Shared Services
Supply Chain Strategy
Technology Integration
THE STATS
Employer Type: Subsidiary of
Deloitte & Touche USA LLP; U.S.
Member Firm of Deloitte Touche
Tohmatsu
CEO: Doug Lattner
Fiscal 2006 Revenue: $7.8 billion
Fiscal 2005 Revenue: $7.1 billion
UPPERS
Making great headway into health
care provider consulting
Respect for work/life balance
DOWNERS
Advancement depends on luck
and ability to network with the
right partners
There is some level of
bureaucracy at the firm
EMPLOYMENT CONTACT
careers.deloitte.com
Deloitte Consulting LLP
V A U L T
P R E S T I G E
R A N K I N G
10
THE BUZZ
Best culture of the big
implementers
Big, diverse, international
Overworked undergraduates
IT trying to be strategy
THE SCOOP
The spin-off that didnt spin
Patience has proved to be a virtue at Deloitte Consulting, which struggled through a
series of dramatic organizational changes over the past few years. Following the
corporate accounting scandals associated with big accountancy Andersen and its
doomed client Enron, Deloitte & Touche USAdecided to follow the lead of industry
peers like Ernst & Young and KPMG. To ease any worries about a conflict of interest
between accounting and consulting practices, in 2002 Deloitte & Touche announced
that it would separate the two businesses, spinning off its consulting division as a new
entity.
The consultancy was to be called Braxton, and its launch was slated to be
accompanied by much fanfare, along with a flashy rebranding campaign.
Unfortunately, the sinking economy got in the way of those plans, and by early 2003,
the Braxton plan made its way to the dustbin of business history. Instead, Deloitte &
Touche decided to reintegrate its consulting practice into Deloitte Consulting LLP.
These days, Deloitte Consulting operates as an independent subsidiary of Deloitte &
Touche USA LLP, the U.S. member firm of Deloitte Touche Tohmatsu (DTT), a
global business made up of dozens of smaller independent firms.
Deloitte Consulting serves clients in an array of industries, including aviation and
transport services, consumer business, energy and resources, financial services, life
sciences and health care, manufacturing, public sector, real estate and technology,
media and telecommunications. Its consulting practice is organized around five areas
of expertise: enterprise applications, human capital, outsourcing, strategy and
operations, and technology integration. Atruly global firm, Deloitte collects half of
its revenue from clients outside of the Americas, and says it plans to continue
pursuing a balance throughout the world in terms of revenue distribution.
Currently, Deloitte has offices in more than 40 countries worldwide.
Lattner takes the laurels
In December 2003, the firm named Deloitte vet Doug Lattner its CEO. Within a year,
Lattner managed to help steer Deloitte Consulting to success. In 2005, Lattners
efforts were rewarded when he was named among Consulting Magazines Top 25
Most Influential Consultants. Deloitte Consulting Principal Diane Davies also made
Deloitte Consul ting LLP
the list. Lee Dittmar and Tonie Leatherberry, two Deloitte Consulting principals,
were named to the list in 2006.
Other Deloitte consultants also enjoy accolades within and outside the industry. In
April 2006, Deloitte Consultings Vice Chairman and Deputy CEO Ainar D. Aijala
Jr., was named chairman of the board of directors of the worldwide Junior
Achievement organization. And the firm continues to attract top talentin March
2006, Deloitte Consulting tapped Patrick D. Hynes, the former Transportation
Security Administration official who led security efforts at Ronald Reagan
Washington National Airport following September 11, 2001, for its public sector
practice. Hynes, a 35-year law enforcement vet, helps support the firms public and
private clients in the areas of justice and homeland security.
Exchanging ideas
Deloitte Consulting works on many projects at the intersection of technology and
operational strategy. In December 2005, a prenatal and newborn screening system
developed by Deloitte Consulting along with the California Department of Health
Services Genetic Disease Branch was awarded a 2005 Best of California nod from
the Center for Digital Government. The states new screening system allows health
officials to screen infants for serious diseases more effectively. In September 2005,
Deloitte Consulting announced its participation as a strategic sponsor in the Radio
Frequency Identification (RFID) Research Center at the University of Arkansas. The
sponsorship will allow researchers to exchange ideas regarding the development of
RFID technologies in a well-equipped laboratory. And in November 2005, the firm
was named Oracles Titan North America Partner of the Year 2005, receiving the
PeopleSoft Award for successfully defining new markets for the application.
Reports aplenty
The research produced by Deloittes consultants is wide-ranging. Each year, the firm
releases a top-five total rewards priorities survey, tracking employee benefits
specialists attitudes toward rewards that help companies retain and attract talent.
Another annual report is the Deloitte Technology Fast 500, a ranking of the fastest
growing technology companies worldwide based on percentage revenue growth.
And in January 2006, the firms banking practice published a consumer survey
showing that banks must provide customers with convenience, value and service in
order to strengthen customer loyalty and stimulate growth.
An affinity for all
Deloitte Consulting and its sibling companies are widely recognized for their efforts
to support women in the workplace. Deloitte & Touche USA LLPs U.S. chairman
of the board, Sharon L. Allen, is the first woman to hold such a role at a professional
services organization. Allen is a booster of a formal program known as the Womens
Initiative, through which Deloitte Consulting offers networking events, career advice
and mentoring, and addresses issues of concern to women, such as breast cancer. In
2005, Deloitte & Touche USA was named one of Working Mother magazines 100
Best Companies for Working Mothers for the 12th consecutive year. The magazines
survey paid particular attention to flexible scheduling, child care options and time off
for new parents. In addition, the firm sponsors affinity groups dedicated to
African-American, Hispanic, South Asian and gay, lesbian and bisexual employees.
The firm also gets recognition for its undergraduate programs. In July 2006, Deloitte
made it onto Fortunes list of the top five places to intern in the country. The firm
was chosen based on the fact that interns often get to work directly on client cases
with a team of associates and partners. According to Deloitte, about 81 percent of
interns entering senior year start their career at Deloitte upon graduation. And a June
2006 article in BusinessWeek reported the results of Universum Communications
2006 Ideal Undergraduate Employers ranking, in which Deloitte ranked No. 5 out of
the top-10 workplaces for undergraduate business majors.
Deloitte Consulting professionals also take community service seriously. In fact,
theyre dedicated to making an impacteach year, the firm hosts IMPACT Day,
when firm members pitch in to help out their communities.
GETTING HIRED
No trick questions
Deloitte invites interested candidates to search for positions online, then create a job-
specific profile and submit a resume through the online system. The site also lists
tips to prepare for an interview and explains what to expect in the process.
Insiders reveal that the interview process differs slightly for new and experienced hires.
Candidates who take part in on-campus recruiting can expect two rounds of interviews
with managers, senior managers and partners. Round one consisted of an informational
interview and a mini-case. Round two consisted of an informational and full case
interview, an insider explains. And the questions are fairly straightforward, according
to an associate who reports that the questions are not too difficultno trick questions;
they just want to see how you think and how you work through problems, and the firm
remarks that its interviewers take a conversational approach and are more interested in
candidates thought process, rather than a specific answer to a question.
For undergrads, there arent normally case questions; however, a consultant notes,
We are asking case questions now for new-hire MBA candidates. The firm
explains that all campus hires will undergo a series of interviews that, depending on
the type of program and/or level, may consist of a business case study analysis, a
technical skills case and a behavioral based interview. On the experienced hire side,
one senior consultant recounts, [There was] one case study with a partner, and
interviews with senior managers and directors, mostly focused on my industry
knowledge and experiences.
OUR SURVEY SAYS
A fountain of youth
Deloitte consultants say the firm is a lively and social place where colleagues usually
get to know one another. Deloitte tends to promote, in their hiring and in their work
practices, a very friendly, young, single crowd. Theres a tremendous culture. For
those coming out of college, its basically a continuation of that environment,
reveals a source. Sources reiterate over and over again how youthful the crowd tends
to be. Comments a senior consultant, I would say the typical Deloitte consultant is
young, energetic and theres probably a tinge of attractiveness to people that are
there. Most people are in their 20s, young, energetic and intelligent, adding, There
are a few gray-hairs there, but thats not the norm. Even within the senior manager
and partner ranks, there are plenty of partners there under 45. That should be an
encouraging thing for people coming out of school.
Perhaps because of the youthful nature of the firm, insiders portray a very close-knit,
sociable environment that seems to hold true across regional divides. An East Coast
analyst states, [Its] a very diverse and laid-back environment. A co-worker from
the South reports that in the Houston office, you are highly encouraged to network
during working hours and many times after hours through arranged happy hours,
community tree events, and other planned events. And a Los Angeles-based
associate claims, Southern Californias culture is pretty close as a group.
Refined people skills
Consultants at the firm insist that their colleagues are pleasant to work with.
Employees generally have refined people skills compared to some competitors.
They may be a little less aggressive, as well, suggests an insider. A colleague
agrees: People are aggressive, but they are not out to kill you like at other firms.
There are type A personalities here too, but people are not very stressed out about
their work.
Highly socialized
Deloitte is big on office social events, and wants everyone to participate. One out
of every four Fridays, you spend doing some sort of office-based cultural activity,
like community service, training or interest groups. Everyone is there on Fridays,
regardless of any official activity, so happy hours and social activities are very
common, a manager notes. Another employee confirms the fact, saying,
Importance is given to participating in local office activities and promoting an office
culture.
But some insiders think there is too much pressure to take part in all of this social
hustle and bustle. As one insider points out, Deloittes culture is very networking-
oriented. Its a very collegial atmosphere. Thats great, but it can also be tough. A
source corroborates: For people like me who want to go home to their families on
the weekend, that doesnt have the same appeal. In order to survive, you basically
have to be a social butterfly. Its kind of like a college fraternity.
Balance is better
Overall, consultants feel that work/life balance is respected at Deloitte. The culture
promotes hard work, but provides more of a work/life balance than most other
management consulting firms, admits a source. Acolleague raves, The balance is
excellent! The firm shows a lot of care of employees who need to be in their home
city for various reasons, and they accommodate themthey really take care of
them.
Part of this is due to the fact that although consultants work hard, they are also given
a fair amount of flexibility. We have flexible hours; no one will expect to you to
stick around if your work is done, but you will be expected to work long hours if you
need to, comments an insider. Amanager states, There is an expectation of at least
45 hours per week on client service, plus practice development and firm initiatives.
Even with these requirements, most associates work 50 to 60 hours a week on
average, making it possible to maintain a satisfactory balance. The balance is more
positive than any other firm Ive heard of, notes an analyst.
Managers with benefits
Associates report that while access to management is generally good, the level of
interaction depends on the project. Your supervisors change with every
engagement, explains a source, who adds, At a senior consultant level, you work
very closely with them, so there is a one-on-one relationship, and that spills over to
a social network, since we go to dinners together, etc. Its a very open environment.
And as another consultant reports, When Im not on a project, I never see them, but
when on projects, my manager and I are very close.
Hands across the globe
The firms concept of global staffing means consultants can be utilized by any
manager anywhere and, as a result may be placed on a project that is nowhere near
the home office. One manager reports, Travel can be a nightmare because of the
global staffing. My local office was Houston and I spent most of my time on projects
in the Northeast, a very difficult commute. The source advises, Try not to get
staffed by the staffing manager but by local partners. As another consultant
explains, How long you are at the client site depends on the workload and what the
client wants. The manager of a project has a great deal of influence on the hours of
the project. Since Deloitte Consulting has a global staffing matrix, you could work
for managers, senior managers and partners from all over: Some of them are flexible
hours- and travel-wise, some of them are not.
Fridays for culture
The firm sticks to its policy of spending four days at the client site and three days at
home. Deloitte does a good job of bringing its people home by Thursday night; we
are never at the client site five days a week, assures a consultant. And those who
are away from home four days a week are strongly encouraged to make an
appearance at the office on Friday. There is substantial pressure to come into the
office on Fridays, but I think its actually great. Since consultants are on the road so
much, its important to try to build some camaraderie at the home office, professes
an insider. One source reports that in his office, Friday afternoon is a time for talks
from partners, senior managers, learning programs and fun.
Good mix of training
Deloittes training earns high marks from consultants. Asenior consultant comments,
Training is a good mix of classroom, off-site and e-learning. One advantage is the
great apprenticeship/mentorship model for new analysts, an insider points out.
Beyond the first year, training is up to the individual: There is a very big training
initiative, and an e-learning web site where you can get certifications for taking
online classes. Its something you decide, at the beginning of the year, how much
training you want to do. Then its determined if you met the goals you set, says a
consultant.
It helps that management at the firm prioritizes training, according to a source who
states, Focus is given to all-around development, not just client work. Participating
in office activities is important and there are enough of them to participate in.
Swift promotion
Insiders claim that the promotion path at Deloitte is laid out clearly and is driven by
annual and midyear reviews, and there are stated performance measures that
determine readiness to move up, were told. The straightforward consulting
advancement path is here: analyst, consultant, senior consultant, manager, senior
manager then partner. Most practitioners here move fairly swiftly, with many
reaching senior manager in their early to mid-30s, details an associate. Acolleague
explains that there are well-documented expectations and average time is spent at
each level. There are opportunities for early advancement based on performance.
Advancement is allegedly smooth until the senior manager level: Moving from
senior manager to partner is an extremely grueling process. For positions lower than
senior manager, its your ability to stay utilized and get good performance appraisals
that keeps you there. The average senior manager is 35 to 40 and has probably been
with Deloitte for five years, a consultant reveals.
Are you willing?
But because the firm is so large, it takes more than a glowing review to be promoted:
Unless you have someone there pounding the table on your behalf, you are pretty
much lost in the shuffle, a manager claims. Often, sources say, there is a designated
mentor who serves as an advocate. You have a counselor who looks out for you
whos assigned to you, explains an insider. Another source advises that in order to
land a promotion at the firm you need to shine. Be willing to travel anywhere,
anytime.
Several consultants assert that Deloitte is an up-or-out firm. One insider states,
Theres a strict timeline, and if they dont think youre going to make the next level,
youre gone. And the firm reportedly takes promotion quite seriously. Overall,
[its] one of the best firms Ive worked with but theres an almost a sick obsession
with promotion, and the up-or-out approach to career management will drive one to
sell his soul for the company. According to a consultant, The up-or-out policy puts
a bit of Darwinism into career planning at Deloitte. For consultants who decide to
leave, sources say the firm has an incredible alumni program. An insider boasts,
For people that leave, the firm tries to make friends; theyre not trying to make any
enemies.
Slightly behind
Sources indicate that compensation is less competitive that of other firms, but they
view it as a tradeoff for the lifestyle benefits. Salaries are lower than firms like
McKinsey or Booz Allen. But so is the work, states an analyst. One employee
notes, The compensation is strong as compared to other firms, especially in the
strategy practice, although I dont believe that were quite on par with the big-three
strategy firms. Insiders report that bonuses are between 10 and 12 percent annually,
though bonuses dont start until the manager level, but as a senior consultant points
out, The firm does well with sign-on bonus for hires coming aboard right out of
school.
Get an MBA-free
Abig plus is the firm-sponsored MBAprogram. Undergrads can work for Deloitte
for two or three years, then go to business school. They return two years later, and
if they commit to working another two years, Deloitte will pay off their grad school.
In my experience, only the better firms offer that kind of investment in their
employees, an insider remarks.
Deloitte consultants also enjoy 23 days of personal time off, among a laundry list
of other benefits such as 401(k) contribution, health, dental and eye care, flexible
spending, child care and transportation reimbursement programs, life insurance and
long-term care insurance. In addition, sources add, consultants who spend time on
the road get to keep all frequent flyer and hotel points. The expense policy is also
liberal, reports an analyst. All travel expenses are reimbursed: meals, incidentals
and mileage to and from the airport or the client. And sources are satisfied with their
office spacebut out of all the locations, insiders claim the Chicago office is notable.
One source raves, Our office is excellent. The new building in Chicago is out of this
world; its very posh. Support staff is great, [and] there is space there for hotelling.
Dedicated to diversity
Deloitte consistently garners praise from employees when it comes to diversity
initiatives. Diversity is genuinely encouraged and fostered. There are a lot of
support groups for minorities, notes an insider. The firm offers a range of programs
supporting many different groups of individuals: [There is a] strong womens
initiative and numerous affinity groups (African-American, Latin American, Asian
American, gay, lesbian and bisexual, etc.). One way the firm could improve,
however, is by increasing minority diversity in management, sources say. As one
consultant states, Still under-represented are African-Americans in senior leadership
positions.
28 State Street
16th Floor
Boston, MA 02109
Phone: (617) 951-9500
Fax: (617) 951-9392
www.lek.com
LOCATIONS
Boston, MA (US HQ)
London (HQ)
PRACTICE AREAS
Business Strategy
Mergers & Acquisitions Advisory
Services
Value Management
THE STATS
Co-Founder & Chairman: Iain Evans
2006 Employees: 650
2005 Employees: 500+
UPPERS
All the exposure you can handle
People, people, people
Short cases mean you dont get
bored
Sponsorship for B-school
DOWNERS
Excessive primary research
Less than stellar HR functions
Client interaction can be limited
Limited brand name
EMPLOYMENT CONTACT
E-mail: boston.resumes@lek.com
L.E.K. Consulting
V A U L T
P R E S T I G E
R A N K I N G
11
THE BUZZ
Great for rigorous quantitative
work
Strong position in private equity
High burn-out potential
Work like a banker, paid like a
consultant
THE SCOOP
From the U.K. to the U.S.A.
Founded in 1983 by three former partners from Bain Consulting, L.E.K now boasts
more than 600 staffers in 16 offices worldwide. L.E.K. has an international flavor,
having started life as a London-based firm, L.E.K. Partnership. A decade later, a
merger with U.S. consultancy The Alcar Group created L.E.K. Consulting, still
headquartered in London.
Loyal to L.E.K.
L.E.K. prides itself on lasting relationships90 percent of the firms work comes
from repeat customers or referrals from L.E.K. clients. Its loyal list includes Fortune
500, Eurotop 300 and the largest Asia-Pacific firms, as well as smaller up-and-
comers and government agencies. The firms consultants cover industries including
aerospace and defense, chemicals, business services, construction,
eBusiness/Internet, energy, financial services, food and drink, health care, high
technology, industrial and consumer products, leisure, life sciences, media and
entertainment, natural resources, private equity, retail, telecommunications, transport
and utilities.
L.E.K.s services are split into three areas: business strategy development, mergers
and acquisitions support, and value management. Within the business strategy sector,
which accounts for about 40 percent of the firms work, L.E.K. offers corporate
strategy, business unit strategy and commercial advice. The mergers and acquisitions
practiceabout 35 percent of L.E.K.s businessoffers acquisition strategy,
strategic due diligence and transaction support. And the value management practice,
aimed at helping executives identify the drivers of their companys value, offers
services at the corporate and business unit levels, and also works with clients in
education.
Strategy savants
What makes L.E.K. stand out among its midsized strategy consulting peers? According
to the firm, its a combination of uncompromising professionalism, responsiveness and
high-quality work. L.E.K. consultants are known for their analytical approachthe firm
promotes its ability to get down to the number-crunching level in its cases. In fact,
L.E.K. Consulting
L.E.K. characterizes its consultants as strategy experts, not industry experts, with more
emphasis on problem-solving than implementation.
Scoring returns
L.E.K. publishes reports and features such as the quarterly newsletter Shareholder Value
Insights, as well as the Shareholder Scoreboard, most recently published in February
2006, produced in conjunction with The Wall Street Journal for 11 years running. The
Scoreboard analyzes shareholder returns for the largest companies by market
capitalization as listed in the Dow Jones U.S. Total Market Index. In the Asia-Pacific
region, L.E.K. publishes a similar scorecard with The National Business Review of New
Zealand, The Australian and The Bangkok Post. L.E.K. also presents at and sponsors
many industry events, including the Biotechnology Industry Organizations annual
conference.
Making news at the movies
L.E.K. also conducts research on behalf of clients, such as a widely reported study it
conducted for the Motion Picture Association of America in 2005. Originally
commissioned as a tool to illustrate the need for governments around the world to
crack down on copyright theft, the study outlined losses due to piracy, the profile of
a typical pirate and a list of the worst offending countries. The study was released
privately but was picked up in 2006 by The Wall Street Journal, and made headlines
worldwide with its conclusion that the U.S. film industry is losing about $6.1 billion
per year to piracy worldwide. The staggering figure was much higher than earlier
estimates, giving organizations like the MPAA more ammo to go after illegal
distributors of movies.
L.E.K has received attention recently in the M&A sector, too, picking up the 2005
Due Diligence Advisor of the Year award from Acquisitions Monthly magazine. The
award was based on feedback from independent judges, interviews with key
executives, feedback from clients and votes from the magazines readers.
Far East interest
L.E.K. enjoys a powerful presence in Asia, with major clients including Singapore
Airlines, which has tapped the firm to evaluate its business processes and review its
entire organizational structure after suffering a big hit from the 2003 SARS outbreak.
L.E.K.s last major office opening was in Tokyo in 2003, when the firm took Acumen
L.E.K. Consulting
Consulting, a Japanese company formed by L.E.K. alumni, into its fold. The firm
also maintains offices in Beijing, Shanghai, Singapore and Bangkok.
Growing up the L.E.K. ladder
L.E.K. has a relatively young staff, with an average age of 29. The firm offers a clear,
five-level career path, from associate to partner, with more than half of its staff at the
associate level. Typically, L.E.K. hires undergrads as associates. Just above that on
the L.E.K. ladder, associate consultants join the firm after some postgrad or
commercial sector work. From there, successful L.E.K.-ers go on to become
consultants, then managers and partners. There are about 65 staffers in L.E.K.s top
tierbut this remains a hands-on role for the firm, with partners spending more than
70 percent of their time working with consultants on client engagements.
Associates typically return to graduate school, with many L.E.K. alum going off to
placements at Harvard, IMD, INSEAD, Kellogg, Stanford and Wharton. Meanwhile,
consultantsthose with MBAs or advanced degreescan expect to become
managers within two to three years. And organic growth is encouraged at L.E.K:
Three-quarters of the current group of partners used to be L.E.K. consultants, and a
third of those consultants used to be associates.
Just enough travel
L.E.K. is a good firm for globe trekkersits known to be unusually flexible in its
international assignments, and employees can switch easily between offices for either
short-term transfers of three to six months, or permanent transfers, depending on
preference. More than a third of the firms consultants have worked in two or more
branch offices, and about half are based in Boston or London. But consultants
typically arent expected to live out of suitcases at L.E.K.; the firm says that, on
average, employees are away on business travel less than one night per week.
L.E.K. consultants complete an average of six to eight projects per year, with typical
cases lasting about two months. On an average case team, eight staffers work
together. The firm does not require its consultants to specialize in a particular
practice area, though L.E.K. says its consultants tend to gravitate toward two or three
preferred industries.
L.E.K. Consulting
GETTING HIRED
Finding a fit
L.E.K. is involved in campus recruiting at a number of top schools across the country,
including Penn, Wellesley, Harvard, University of Chicago, Northwestern, Cal-Tech
and Stanford, to name a few. The firm also tends to rotate through a number of
schools and certainly considers candidates from other schools where we dont come
on campus, according to a source.
The first round of interviews takes place on campus or over the phone, and consists
of two half-hour interviews with associates (for the associate position) with two
separate cases studies and a brief get-to-know-you conversation. The final two or
three rounds of interviews are held in an L.E.K. office where candidates meet with
managers and partners. An insider says, The second-round interview consists of two
more similarly structured case questions, and a general fit interview with a manager
or partner of the firm to determine how the applicant will complement the firms
culture. Even grads at the top of their class must show theyd be a natural match for
the L.E.K. team: Bright applicants are dinged quickly if the fit isnt there. Most of
the people here are straight-talking with a heavy analytical slant.
Analytical horsepower
Insiders tell us that aside from fit, quant is key. Expect to be tested on your
analytical horsepower, advises one source. In addition to being asked to size the
market for golf balls, skis and premium dog food, candidates will likely be asked
questions like, Would you buy the Chicago Bulls and why? or Would you open a
McDonalds in downtown Chicago and why? Typically, a hiring decision is made
promptly, within a day or two of final-round [interviews].
OUR SURVEY SAYS
No jerks
L.E.K.s insiders cant say enough positive things about their colleagues. Sources
claim they work with a group of interested, fun-loving, hardworking people. One
insider comments that people have an excellent work ethic and very high standards
of integrity, while another adds that there are no jerks. This pleasant, light-
L.E.K. Consulting
hearted atmosphere fosters a certain cheerfulness, were told. As one source
professes, People are often smiling and laughing together during the workday.
Working as much as these folks do, they get to know each other well, which
management supports. Says one associate, We have a lot of social events (officially
sponsored by the firm) and also unofficially. Because we are in the office five days a
week you really get to know your co-workers well. Another insider praises his
colleagues, stating that they are not just talented people, but people that care about
others and like to have funthe type of people you want to spend time with.
Egalitarian environment
Consultants also give top marks to management at L.E.K. One insider boasts, The
supervisors are great. They hardly feel like supervisors at all. Sources say they
appreciate that management is very accessible and enjoy the fact that there is little
emphasis on title. Along those lines, consultants note that their colleagues are very
down to earth and not pretentious, while others note that there are fewer layers
than other firms, which at L.E.K. means little hierarchy and lots of up-front
responsibility, observes a colleague.
Stay in step
While L.E.K. employees seem to be a happy-go-lucky bunch, they also take their
work seriously. The work environment is described as collegial and supportive, but
definitely intellectually challenging. A consultant suggests, It can be intense at
timesfast-running and high-opportunity, but you really have to be in shape to keep
up at all times. One advantage of this energetic culture is the chance for consultants
to take charge of as much as they can handle: Its an ownership culture: take the ball,
run with it, and youll soon own it, offers an insider. As such, sources appreciate the
fact that they are given a lot of responsibility early in your career, and claim that
this responsibility is higher at L.E.K. compared to other consulting firms.
Brief exposure
Despite the long hours that short projects necessitate, most sources appreciate the
rapid movement from case to case; you are always learning new things and getting
the opportunity to have different experiences working with different groups of
people. Though the short cases allow for exposure to multiple topics, if youre
looking for a well-rounded consulting experience that spans several industries,
L.E.K. may not be the place for you. Asource acknowledges, In some offices more
L.E.K. Consulting
than others, people are kept working on cases within one vertical [industry] (e.g.,
biotech, health care), and there is not as much of a generalist experience for those
who might want it.
The grind
Sources at the firm agree that theirs is an environment accepting of overworking.
Associates assert that hours are a bit higher than some other firms, probably due to
the short cases that are expected to end within a certain time frame. Most report
average workweeks of about 60 hours. One insider laments, Hours can be brutal,
and it is encouraged, not discouraged. If you leave before 7:30, youd better have a
good excuse because everyone will be watching you walk through the doorway.
Another associate confirms, Leaving on time is the exception, not the rule. That is
a negative to the cultureprojects are budgeted to require long hours.
And although weekly hours are high, the payoff comes on the weekend: Hours
fluctuate in order to avoid weekend work, so they typically peak midweek for a work-
free weekend, tells an associate. And one staffer suggests that the respect for
weekends is a result of the firms European origins: As a London-based firm, L.E.K.
tries to protect your weekends much more than others. You may work longer during
the week, but two full days off trump a late night any time of year.
Brutal but balanced
Though hours are brutal, life is relatively balanced for L.E.K. consultants. The
firm does a very good job helping employees manage work/life balance. Hours for
all staff are reviewed on a weekly basis; comp days are awarded if any employees
hours are consistently over a particular threshold. In addition, senior management is
keenly aware of the importance of maintaining a healthy work/life balance,
comments a manager. Another consultant feels that compared to other firms, L.E.K.
makes it easier to have a life outside of work: The firm manages this more
proactively than others. Many of the partners here have been at L.E.K. for a long
time; they know what it takes for this to be sustainable and aim to make it so.
Another associate points out that in return for the arduous hours that employees put
in, The company has a fairly well-defined policy of awarding compensation days
(paid days off) for excessive work hours. These are defined as working more than 75
hours in a week or more than 65 hours on average over the last four weeks.
L.E.K. Consulting
Work comes first
But a number of insiders admit to being down on work/life balance at the firm. One
associate gripes, Work has to come first, at all costsor else. Another seems
discouraged by the lack of ability to manage his schedule: It is very difficult, as I
work long hours and often dont have much control of how I want to spread the work
out between hours in the day/week. Others maintain that its difficult to find time for
any interests outside of work. States one insider, The work day is 10 hours, at least,
which can create problems for going to the gym or running errands during the week,
and another agrees, saying, occasionally the hours get out of control.
Homebodies
Associates arent all stuck on the long hours, since at the end of the day, they get to
go to their own homea huge plus. Admits one, Its a lot better to do those kinds
of hours at your own office and go home to your own bed every night than it is to go
home to a hotel near the client site. According to insiders, travel is infrequent at
L.E.K., and an average associate might travel one week per year. Another
consultant confirms, L.E.K. is true to its word: Travel is minimal and the majority
of staff spend one day per week travelingand its generally a day trip. Employees
may travel for client presentations, but that is minimal, says a source: At L.E.K.,
associates virtually never have to travel, except for an occasional meeting (once
every couple months). Travel is well-funded (direct flights, nice meals, nice hotels,
etc.). In the instance of a rare on-site case, associates are given the option not to do
it.
Several insiders say they came to work at L.E.K. for that reason: I really enjoy not
traveling. It is one of the reasons I chose to work at L.E.K. versus other consulting
firms. It creates a great culture among associates and you really get to know a variety
of people. One source feels he definitely prefers working with L.E.K. colleagues to
being at a clients site, stating, You choose a firm for its great people, so why work
out in the boonies with other firms people?
Client contact
One downside to L.E.K.s infrequent travel requirements is that interaction with
clients is limited. One insider explains, Associates do not generally have direct
interaction with top client management. Projects do often involve top management
from large companies, but consultants, managers and partners do the majority of
interacting with them. An associate adds that [the] relationship with clients is
L.E.K. Consulting
typically over the phone for pre-MBA level employees. Sources, however, seem
comforted by the fact that client contact will pick up once theyve put in their time at
the firm. We get a bit less client interaction, but as you have been there longer, you
certainly get some good experience and interaction with clients, asserts one
consultant. But for the rare occasions when junior-level associates interact with
client management, one consultant offers this bit of advice: Dont swallow your
tongue when you find yourself meeting some of the top CEOs. Even associates are
expected to be poised and articulate to top management.
Baptism by fire
At L.E.K., training for new hires is a good mix of formal training and on the job.
If a brand new consultant is off-cycle, that is, enters the firm at a different time than
the rest of the group of new hires for the year, a manager confesses, It may be
baptism by fire, explaining that you might feel like youre taking a drink from a
fire hose, but youll come away knowing more than your peers. For those hired with
the rest of the group, training lasts for two weeks, and is described as informative
and fun.
Fine tuning
Beyond initial training, consultants find themselves acquiring most new skills
through practical application. According to one, there are professional development
periods in which you are exposed to various ideas and skills, but they are most often
acquired by performing them as part of a real task, a source comments. But the firm
is reportedly working on improving its formal training for all levels. The company
is actively revising the formal training program to make it even more applicable to
specialties such as life science PhDs. Another insider adds that that training is
vastly improving. I think future classes will greatly benefit from a revamped
process. However, most insiders agree that [the] best learning is on the job.
Group promotion
Consultants usually advance along with their peers, but it doesnt always have to be
that way. Says an associate, Classes tend to move up and get promoted together,
although he adds that rock stars are given great opportunities to move ahead. Other
insiders also assert that stellar performance does get noticed. The (relatively) small
size of the firm makes it very transparent. Stars shine and are awarded for their
performance. If a colleague is not doing well enough to move up with his class, the
L.E.K. Consulting
out stage is between consultant and manager in the firm. For those who arent
advancing, there is more gentle encouragement to find a new job than there used to
be, discloses one source. Another confirms, We recently have been encouraging
people to leave who do not have a future here. Biannual reviews help push the
process along. One associate notes that L.E.K.s great and thorough review process
gives you clear vision into where you stand.
Possible fast track
For those who intend to climb the ranks, There is a clear path for internal promotion
within the firm. Though an MBA is generally required to move beyond the
associate level, there are many examples in the firm of upper management who have
gone straight through the system without an MBA, according to an insider. For the
impatient, more rapid advancement is possible. Given the rapid growth of the firm,
L.E.K. offers a fast track opportunity for consultants. The hope is that consultants
are promoted to manager within two to three years and considered for partner four to
five years thereafter, a manager says.
Not up to snuff
Insiders say compensation at the firm is fair, but not quite what it should be. One
consultant expresses his disappointment in below average pay, and another
acknowledges the mediocre salary, while also considering the fact that you dont do
consulting for the moneythe upside is not there. Industry or I-banking would be
much better. Anumber of associates receive a signing bonus and annual bonuses of
up to 20 percent. One source reports that due to the recent success of the firm,
[Bonus] has averaged in the high teens for the past seven years and last year was 20
percent. Acolleague explains how it works: The bonus is actually profit sharing
and it typically ranges from 10 to 20 percent of your salary and the percentage is the
same for all employees each year. The firm adds that the historical average for the
firms profit share for the last three years is 16.3 percent.
Despite high returns on profit sharing, some consultants support a lower bonus in
favor of a higher base. Comp is fair, but theres a lot of emphasis put on the profit
sharing, which is not of the same importance as base salary!
Perks plus
Money aside, L.E.K. is big on perks, like cocktail hours, game tickets, a holiday gift
and an office-wide, all expenses paid ski trip to Jackson Hole in the winter. In
L.E.K. Consulting
addition, when working late, there is free dinner at night when staying past 8 or 9,
a source tells. At the conclusion of a case, teams also celebrate with a partner-
funded dinner. On top of all that, insiders repeatedly rave about the firms unique
swap program which provides the opportunity to spend six months in an
international L.E.K. office.
On the West Coast, the L.E.K. team has come up with its own way to end the week:
This year the L.A. office instituted the Friday afternoon Beer Kart. Each Friday at
around 5 p.m., the office winds down for the weekend, people loosen their collars,
and the office just gets fun. Other sources say they chill out with intense ping-pong
battles to relieve stress. Some associates can be caught ending a late night with ping
-pong instead of going home.
Love the view
Overall, insiders commend the firms offices, though reviews vary slightly by region.
Sources on the West Coast love their office, boasting, Our L.A. location is fantastic:
great views (ocean on one side and Hollywood hills on the other) and a great
neighborhood. Another insider says that the decor could use some improvement,
but the beach view, ping-pong/foosball and sunsets more than make up for it. East
Coast consultants offer more mild reviews of their digs. Some note their appreciation
of the open office environment. Says one, The cubicles actually offer a more open
and social environment than individual offices. The firms expansion prompted one
Boston staffer to comment that space is getting tight given recent growth. One of
his colleagues, however, admits that although the office could be roomier, it is in a
great downtown location in Bostons financial district.
Women in the ranks
According to sources, L.E.K. is doing a good job of hiring women. One new
associate indicates that our incoming associate class had more women than men,
and another claims that the firm is 100 percent supportive of women in every way.
Despite these positive reviews, sources admit that the firm could do a better job
attracting and retaining female talent. Others indicate that at the associate and
consultant level, there are a lot of women (50/50) at the firm, however very few
beyond that, tells a source. According to one associate, I have never heard of overt
sexism in U.S. offices. However, I think the firm could do more to recruit women.
Retaining women through the partner level is a challenge that many firms face, and
we could do more to focus on that. In other words, the firm does not limit
L.E.K. Consulting
opportunity (its all performance-based), but fewer women stay through to partner for
whatever reason. One insider guesses the lower number of female partners might
be because the work/life balance trade off may affect women differently.
More minorities
With respect to ethnic diversity, We could stand to have more minorities on the
consulting staff, says one insider. L.E.K. has been boosting its efforts to recruit
underrepresented minorities, however. Remarks one manager, The firm wants to
attract more and is making additional efforts to do so. AWest Coast associate notes
that though the firm is very receptive, [there are] few non-Asian minorities actually
in this office. The Boston office has a different challenge attracting a diverse bunch.
An insider states, L.E.K. has had difficulty attracting African-Americans to work in
the Boston office (my understanding is that offers are regularly made, but rarely
accepted). Otherwise, the office is fairly diverse.
Gays, lesbians and bisexuals will feel comfortable at the firm, suggest insiders.
There are GLBT employees here who are fully integrated. It doesnt really come up
as an issue, and there has been strong representation, one manager asserts. Another
source comments that GLBT employees are openly welcomed at L.E.K.: The firm
hires and promotes qualified gay, lesbian and bisexual employees. They readily
attend office functions with their partners without hesitation and, in addition, the
firms benefits extend to domestic partners.
Charitable causes
Community involvement is pretty regular at all L.E.K. locations, according to
sources. On the East Coast, a local group called Inspire helps associates get their
hands dirty. Many associates are involved with Inspire, a nonprofit, associate-run
consulting engagement with many other surrounding consulting firms, specializing in
consulting for local schools and educational programs, relates a Boston colleague.
As part of these efforts, associates can work on two pro bono cases a year. Another
Boston insider adds, We also do a toy drive every year at Christmas, and raised
money for Katrina victims.
The Chicago office gets involved in the community by teaching underprivileged
kids in inner city schools and donating toys to poor kids during Christmas. And on
the West Coast, associates say charity runs, clothing drives and Christmas gift
purchases, are just some of the ways they contribute to the community.
L.E.K. Consulting
245 Park Avenue
44th Floor
New York, NY 10167
Phone: (212) 377-5000
Fax: (212) 377-6000
www.marakon.com
LOCATIONS
New York, NY (HQ)
Chicago, IL
San Francisco, CA
London
Singapore
PRACTICE AREAS
Execution
Growth Through Acquisition
Leadership & Organization
Organic Growth
Productivity
Strategy
THE STATS
CEO: Brian Burwell
2005 Employees: 300
UPPERS
Definitely more touchy feely than
other top consulting firms
Flexibility in terms of scheduling
Lots of focus on ensuring
managers are good leaders
Small-firm feel with big-firm
clients
DOWNERS
The firm still has relatively low
name recognition
Being the best small firm is still
tougher than being a big brand
firm
Forced rotation off clients after 14
months
Lack of women managers/
partners
EMPLOYMENT CONTACT
www.marakon.com/careers
Marakon Associates
V A U L T
P R E S T I G E
R A N K I N G
12
THE BUZZ
Pure brainiacs
Very solid smaller player
Wants to be a big firm, and its
killing their employees!
Narrow focus
THE SCOOP
Advising the elite
Founded in 1978, Marakon Associates is a classic boutique consultancy. Though the
firm is relatively small, with five offices worldwide employing around 300 staffers,
Marakon is a well-known name among the business elite. As The Economist once
reported, Marakon has advised some of the worlds most consistently successful
companies. The firms blue-chip client roster has included ABN Amro, Alcan,
Barclays, Boeing, BP, Cadbury Schweppes, Cardinal Health, Gillette, Roche and
Xerox.
Marakons success is a legacy of the business savvy of its foundersthree Wells
Fargo bank executives and a University of Washington finance professorwho first
opened the firm on the West Coast before moving its headquarters to New York.
Marakon maintains its global reach with offices in London, Singapore, Chicago and
San Francisco. To date, New York and London are the firms largest offices.
Inventing value-based management
At its inception, Marakon initially focused on financial strategy, including portfolio
management, financial policy and capital investment planning. In its early
engagements, Marakon focused on showing clients where to create intrinsic value, as
well as identifying where they were losing value in their portfolios, applying new
performance measures like economic profit. But clients still needed guidance on
mapping the economic terrain laid out by forward-looking investments, so in the late
1980s the firm broadened its practice to tie strategic planning to capital investment
planning. Thus, value-based management was born.
Marakon also realized that components like resource allocation, performance
management and executive compensation had to be factored in to make strategic
planning truly work. So in the 1990s, the firm rebranded its services as managing
for value, signaling this new focus on leadership, organizational effectiveness,
strategy and finance. Simply put, a company is managing for value when its
corporate strategy seeks to maximize the companys long-term value and its
organizational structure, and processes consistently support that strategy.
Marakon Associates
Six pillars
While value creation remains a core part of the firms practice, it no longer uses one
term to describe its services. Rather, it organizes its offerings into six core areas of
expertise: strategy, execution, organic growth, growth through acquisition,
productivity, and leadership and organization. The firm works with members of the
top management teams at companies in a variety of industries, including aircraft,
banking, food, insurance, luxury goods, media, manufacturing, mining, oil and gas,
paper, pharmaceuticals and telecommunications.
Small firm, big ideas
Despite the firms small size, Marakon often makes a big splash in the business press.
In fact, Marakons thinkers often get attention by challenging commonly held
assumptions. In February 2006, the firm was recognized in the media with the
publication of a survey analyzing the widely used marketing tool of market
segmentation. The study, published in the Harvard Business Review, took a hard
look at the tool, finding that only a small percentage of companies derive real value
from using it. And in December 2005, another survey by the firm found that the
process of strategic planning, based on a traditional model, produces very few
worthwhile decisions for companies.
One of the firms recent books is The Leadership Crash Course, by Marakonite Paul
Taffinder. Published in May 2006, this updated version of a 2000 edition addresses
the growing demand for qualified leaders at organizations by outlining the skills
executives need to improve their leadership effectiveness. Taffinder, a psychologist
as well as a partner at the firm, outlines the seven most common types of leaders,
including: the Transformational Leader (e.g., John Browne), the Enforcer (Steve
Ballmer), the Deal-Maker (Carly Fiorina), the Administrator (Fred Goodwin), the
Visionary (Bill Gates), the Serial Entrepreneur (Richard Branson) and the Spin
Doctor (Bernie Ebbers).
Marakon derives additional intellectual power from its board of advisors, formed in
2002. The group consists of eminent business leaders, including Sir John
Sunderland, chairman of Cadbury Schweppes, who was most recently appointed to
the group in May 2006; Sir George Bull, chairman of J. Sainsbury, former chairman
of Diageo and former chairman and CEO of Grand Metropolitan; Arthur Martinez,
chairman of the supervisory board of ABN Amro and former chairman and CEO of
Sears Roebuck; Sir Brian Pitman, former chairman and CEO of Lloyds TSB Group;
Marakon Associates
and Frank Zarb, former chairman and CEO of the National Association of Securities
Dealers and the Nasdaq Stock Market.
Marakonites on the move
Marakon announced in May 2006 that Brian Burwell, a managing partner in the
firms San Francisco office, would be taking Ken Favaros position as CEO, effective
immediately. According to the firm, Favaro, who had served as CEO since 2000,
stepped down from his throne in order to devote more time to client work and to the
promotion of his upcoming December 2006 publication, The Three Tensions:
Winning the Struggle to Perform Without Compromise. Favaro continues to work as
a managing partner and took on an additional title of co-chairman. Marakon co-
founder Jim McTaggart became the other co-chairman.
Also in May 2006, the firm announced the appointment of a new chief operating
officer, Lori Massad. Massad, who in 2004 was named Marakons chief talent officer
overseeing recruitment, retention and alumni, continues to serve as CTO. That same
month, the firm hired Francesca Schuler, a former VP of global brand management
at Gap, Inc., to the position of partner in Marakons San Francisco office. In April
2006, Marakon co-founder Bill Alberts, the former University of Washington finance
professor, died at age 81. Alberts is credited with pioneering the fields of value-based
management and managing for value, keeping a low profile as his ideas quietly
caught on among the business and academic sectors. Marakon alumni now hold
executive positions at some of the worlds largest companies, including Avon
Products, Citigroup, Diageo, Dow Jones, Kellogg and MasterCard.
Gearing up for growth
In late summer 2006, Marakon announced plans to open a sixth office in Zurich.
Although the firm has been serving Continental Europe for 20 years, it is establishing
the office to better meet the demands of existing clients and to provide a platform for
new business growth in the region. We chose Switzerland because of its location at
the heart of Europe, its proximity to other big consulting markets, our already strong
Swiss network and Zurichs concentration of large multinational companies, said
Mike Baxter, Marakons regional managing partner for Europe. This will be the
first of a number of continental offices in select locations over the next few years.
Marakon Associates
Its your choice
Flexibility is a hallmark of the culture at Marakon, illustrated by the firms freedom
to choose mantra. Marakon allows consultants to decide how and where they will
work, what type of work they will do and how much they will work. As for the
how and where, Marakon specifies that consultants are expected to spend two
days a week at their home office and no more than three days a week at the client site.
The firm offers flexible part-time arrangements and telecommuting options where
appropriate, and a range of extended international assignments for those who like to
travel. The firm also notes that throughout their career, Marakon consultants get
broad exposure to a variety of industries and a range of issues.
But perhaps the most striking example of Marakons flexibility is its approach to its
consultants schedules. Marakon consultants have a lot of input when it comes to
how they want to work, choosing from a range of part-time options in client-facing
or firm-building roles, or even opting to work just 10 months out of the year. The
firm prorates consultants pay based on these choices.
Lively and uncommon
Marakon case teams generally are made up of between four and six people, with
projects lasting from two to six months or more. Teams go through an initial ramp-
up phase, after which they collectively establish a set of team norms covering team
lifestyle, learning and other issues. Case teams give themselves regular pulse
checks and plenty of feedback to assess progress, and take time to destress with
social events. Back in the office, Marakon describes its work environment as lively
and uncommon, with a range of office events from charity auctions to karaoke. The
firm also keeps things spirited with a series of annual conferences, including its
largest, the global C/AC conference, which brings together consultants from each
office for practice sharing and updates on where the firm is heading. At the firms
annual global Womens Conference, women from Marakon offices around the world
gather in New York and attend workshops focused on issues including networking,
effective communication and leadership. The conference also features lectures and
discussions with accomplished female executives.
Marakon takes pride in its professional development program, which includes core
training on the principles and frameworks needed to tackle complex business
problems, and skills-focused training on the tools needed to be an effective advisor.
New hires receive more than 150 hours of formal instruction within their first 15
months at the firm. Consultants at Marakon also are assigned a coach on day one of
Marakon Associates
their career at Marakon, to provide support, guidance and structure. Monthly
meetings are held with coaches, who are ultimately accountable for their coachees
career development.
What Marakon wants
Marakon reports that 50 percent of its recruits come from BA programs, while the
other half come in with MBAs. For MBA holders, CTO Massad pointed out in a
September 2005 Wall Street Journal article that the firm generally picks full-time
MBAgraduates over grads of part-time MBAprograms when recruiting. Full-timers,
she said, have been brainstorming and solving problems in teams with people who
have different skills and different styles, and they have developed a high level of
focus and intensity. However, Massad added, part-timers with experience as a
consultant or general manager working with teams, plus a broad network of business
connections, still could make the cut.
GETTING HIRED
Top-10 recruiting
Marakon accepts applications from all schools, but focuses campus recruiting on a
select few, sources report, such as Northwestern, University of Pennsylvania,
Stanford and Duke for undergrads, as well as Kellogg, University of Chicago,
Wharton and Columbia for MBA candidates. The firm also recruits MBAs at top
European schools like London Business School, IMD and INSEAD, and BAs from
Oxford, Cambridge and the University of London. The interview process consists of
two rounds. During the first round on campus, candidates face a 45-minute fit and
resume interview and answer a case study question. Final rounds are conducted in
the office and usually consist of five interviews with all levels of consultants.
Are you compatible?
All interviews place a pretty heavy emphasis on a case and fit interview to gauge
compatibility with our culture, an insider explains. One consultant gives a few
pointers on the process: Be yourself. Focus on what youre communicating about
yourself via the case, as opposed to the exact right answer. There isnt one, so relax.
Think, communicate, laughyoull do just fine. Of the case questions, he
continues, one will focus on communication skills and ability to build influence
Marakon Associates
with a client, rather than on cracking the case. Sources claim that Marakon seeks
high energy individuals who can demonstrate listening skills, creativity and on-
their-feet thinking. One associate throws out a typical case question: You work for
a company considering creating a new product in the premium water segment of the
beverages market. What types of questions would you ask to determine if this is an
attractive market to enter?
Impress the interviewers
When it comes to being choosy, colleagues admit that Marakon is extremely
selective; candidates have to convince more than one person at the firm in order to
get hired. You need to have every interviewer to champion you in the selection
meeting. There are at least seven people involved in the screening process [for
associate consultants] from junior associate to partner interviewers; all interviewers
are real Marakon consultants, notes a source. A colleague echoes this assertion:
Getting in the door is toughit usually takes high marks on all parts of the
application and interview process. One senior manager goes so far as to exclaim, I
can hardly believe I was ever hired. [It] always seems like our new recruits are
leagues ahead of me!
OUR SURVEY SAYS
Shiny, happy people
Marakons pleasant and engaging culture earns loads of praise from consultants.
According to one insider, Marakon is a friendly environment. The managers and
partners are very accessible. The support staff is part of the team. It still has a small-
firm feel, despite working with some of the largest companies in the world on some
of the toughest strategic challenges, a source comments. The group is social and
friendly, and it is said that co-workers actually care about each other. A
Midwestern consultant chimes in, The Chicago office is incredible: People are
always hanging outwe have ping-pong tournaments, play basketball on the
weekends, have an annual turkey bowl, multiple outings a month, etc. The firms
size, focus on teamwork and flexibility all contribute to an agreeable atmosphere,
sources say. Boasts one manager, I think we have a really cohesive, collegial and
unpretentious culture because of our small size, the people we recruit (very bright and
passionate but down-to-earth), the nature of the work (very demanding and stretching
Marakon Associates
but team-based), and our commitment to work/life balance (flexible work
arrangements and lots of practice-sharing and social events, some on a global level).
One New Yorker describes his colleagues as shiny, happy people.
The new crop of associates hired over the past couple of years has had a positive
impact on the firms culture. An insider explains, Marakon has made a huge effort
to make the culture amenable to different types of consultants, not only the ber
number-crunchy ones. This initiative is relatively newlaunched within the past 18
monthsbut has already noticeably improved consultant morale. Agrees another
source, The office has changed quite a bit with many new associate consultants and
consultants having been hired over the past couple of years. Its a very, very good
thing.
Open doors
Insiders give glowing reviews to very accessible senior management at the firm.
As one associate consultant states, Marakon is very nonhierarchicalI feel like I
can talk to anyone in the leadership team. A consultant on the West Coast agrees:
Marakon prides itself on an open and engaging relationship at all levels. The
partners in San Francisco leave their doors open at all times and interact all the time
with associate consultants, consultants and the support organization. It is a very
informal placedespite having more managing partners than any other office
worldwide.
Plenty of exposure
Sources also boast about the opportunity to work face-to-face with top management
at the client site. Clients are all C-levelmost of the time we are working very
closely with the head of strategy, comments an associate consultant. One midlevel
strategist adds, I could never have imagined directly advising CEOs of some of the
worlds best-run companies so early in my career. And a manager mentions that it
helps to have the support of the CEO on engagements: We work very closely with
clients at the most senior level on the most pressing strategic issues. Most projects
are CEO-sponsored. We are really expensive so clients want to maximize impact and
learning by teaming up with Marakon people.
Two nights away
The firm has a unique travel policy that insiders tout as one of the best in the
industry. Says one source, We do travel a fair bit, given that we only have three
Marakon Associates
offices in North America. However, we have explicit norms that imply that most case
teams are on the client site only three days per week. There is also a limit to the
number of consecutive trips a consultant can take, insiders explain. Its pretty much
a rule that its a three-day travel model and every four to six weeks you are supposed
to be in the home office (not travel, in order to have a break), reveals an employee.
The two nights away standard is taken seriously, according to an associate: The
firm employs strict travel guidelines; while there are errant managers that will veer
from these guidelines, partners and staff in charge of talent bring them in line
quickly. One partner reports that his chosen schedule allows him to prioritize time
with family: I leave first thing Tuesday and get back in time to have dinner with the
kids on Thursday. I dont like doing more than that. So I dont.
Globetrotters
Although the firms tenets of travel impose reasonable limits, most sources feel that
being on the road every week is difficult nonetheless. One associate admits, Travel
turns a tough job into a very challenging one, and another source comments that the
consistent coast-to-coast travel causes wear and tear. To help with this, Marakon
is reportedly trying to staff projects locally. Notes one consultant, There are still lots
of local projects in New York, London, Chicago, etc. The firm is pretty good with
allocation; you wont get shafted by HR (that often). But while Marakon does make
efforts to ease travel burden, the fact of the matter is that travel is an inevitable part
of life at the firm. The source adds that if traveling is an absolute no, Id probably
look at other options (i.e., larger consulting firms), advises a respondent.
However, if you do aim to rack up frequent flier miles, Marakon offers plenty of
opportunities. An insider states, Asmall firm with thin geographic coverage means
plenty of opportunities to travel. If you want to see the world this is a good start.
There are people who in three years have lived and worked in the U.S. (East and West
Coast), Singapore, the U.K. and Brazil. Also, new options are opening up in Africa.
So if youre a wannabe globetrotter/global citizen, this is the place to be.
Limited hours
Employees at Marakon work at least 55 hours a week. But sources seem relieved that
like travel, work hours are limited by firm norms and are monitored regularly. ANew
York insider explains, The firm has mandated that we do not work more then 60 (on
average) hours per week to promote work/life balance, while a San Francisco source
confirms that hours are closely monitored. If you consistently exceed 65 hours, then
Marakon Associates
someone will speak to you to figure out why and adjustments will likely be made.
To encourage keeping staffers hours within these guidelines, the firm provides
incentives to managers who meet the goal. Ive been pleasantly surprised by the
working hours. Marakon ties manager pay to how they manage their teams, which
includes how many hours team members are working. This has certainly brought
hours down. Managers also receive considerable pressure from Marakon partners if
their teams are consistently working above 60 hours or otherwise not being managed
effectively, notes a consultant.
One associate explains that because of the 60-hour norm in place, the culture doesnt
promote face time: There are peaks and troughs as with any project based work.
The firm makes a strong effort to manage hours down. There is certainly no culture
of face time and consultants are encouraged to take it easy when they can and to take
all of their vacation allowance. In general I find the hours hard but rewarding and
sustainable.
Cap on client time
In addition to weekly working limits, the firm places limits on the length of time a
consultant can spend on one engagement. Projects dont run much longer than a
year for consultants, according to policy. [The] firm sets a maximum of 14 months
on a single client for associates and consultants. Projects can run for as little as one
month and then up to one year, reports one associate consultant. The firm remarks
that this policy exists to ensure consultants get broad exposure to different clients,
industries and business problems.
Finding your marathon pace
All of the boundaries placed on work and travel contribute to a sane work/life balance
at Marakon, according to insiders. We have lifestyle norms in place to help
consultants manage the balance between work and life. Ultimately achieving that
balance can vary project to project but, in general, consultants who make it a priority
are able to do it, admits a source. Many sources say they work several weekends a
year, though most managers give advance warning if it will be required. An
associate comments, Although I rarely work weekendsI choose to work longer
during the weekthose that do tend to know well in advance. There are never
meetings scheduled on the weekend. So weekend work is largely choice, says a
colleague who adds, The managers and partners have a portion of their
compensation at risk based on their ability to manage people and teams. As a result,
Marakon Associates
there tends to be an open and frequent dialogue about work/life balance as part of the
360-feedback process. Overall, consultants say work/life balance is one of the top
priorities of the firm, and it shows.
Marakon aims to let consultants find a stride they can maintain long term, sources tell
us. I work 60 hours a week, and travel two nights a week on average. I work very
few weekends and I work from home once a week. Its been that way for over a
decade. Our chairman talks about finding your marathon pace, and that is mine,
expresses an insider. A colleague concurs, There is lots of flexibility on how to
define and manage work/life balance for oneself. While the firm recognizes were
all going to work hard, we want to make the job sustainable over the long run.
Freedom granted
In addition, the firm offers employees the flexibility to work at home, which
contributes to staffers overall satisfaction with work/life balance. I have a lot of
freedom and flexibility with my schedule, which helps me to balance the long days
and busy periods with my outside life and interests, expresses a consultant. A
manager weighs in, Time is very much up to the individual to determine. The
assessment is on outputs only, not inputs. Everyone is free to work at home if they
likeas long as it doesnt impede team performance. Even the newer associates
enjoy some level of control in where they work. Notes a junior-level consultant, I
can spend as many or as few hours in the office as I like. There is a lot of flexibility.
Heavy on training
Sources repeatedly mention that there is a strong developmental culture at the firm.
One insider comments, There is a focus on professional development (everyone gets
a development coach, receives extensive training and designs their own development
plan). And consultants are pleased with the way Marakon invests in formal training
for its employees. Training offerings include everything from a mini-MBA to
classes on consulting skills. One East Coast associate explains, We have incredible
hands-on training that youll use the moment you head back to the client site; [its]
like getting a degree for free. A significant number of hours are spent in training
new consultants the first year. Marakon has more training than any other strategy
consulting firm I know: over 150 hours in your first 15 months. It is taken extremely
seriously; [its] split 50 percent practice, 50 percent consulting skills, comments a
partner on the West Coast. And an insider suggests that the reason for so many hours
of training is that we have a very strong point of view on strategy and this requires
Marakon Associates
a fair amount of training that is unique to Marakon. Aside from formal classes,
sources also remark they appreciate the informal, on-the-job training and
mentoring that they receive on an ongoing basis.
Know whats expected
According to insiders, requirements for promotion are clearly laid out. Comments
one source, There is a lot of transparency, so it is clear what achievements or
experiences are needed to move up. It is up to the individual consultant to determine
how fast he wants to progress. A colleague concurs, explaining that the firm has
clearly stated competencies required for pay band increases and promotion. It is not
up-or-out, but the expectation is that consultants are working to develop their
competencies. In an average promotion time frame, a source reports that associate
consultants can advance to consultant within two years and do not need to go to
graduate school. Consultants can also advance within two years to manager. At the
manager level, it takes somewhat longer to advance to partner. Those who enter the
firm without a graduate degree, were told, can make partner in eight to 10 years
(and it occurs frequently, reports an insider). For high-performing individuals,
there is the chance to move up rapidly, or as quickly as you can meet expectations
of the next level, says a source.
Holistic approach to development
The firm no longer enforces the up-or-out tradition it used to uphold, however most
consultants who choose to stay make career progress in some way. As one insider
notes, We abolished our up-or-out policy a few years ago, and another source
weighs in, [Its] definitely not up-or-out. They give great options to either continue
working at Marakon (which many happily encourage) or pursue an MBA. The
firms promotion plan allows consultants to draw up their own progression, and
though they wont be forced out, respondents add that consultants tend to opt out if
not moving up quickly enough.
The new approach to advancement takes into account the individuals satisfaction, as
well as performance. Explains a manager, Once you get in, there is no more up-or-
out policy. Obviously, standards have to be upheld, but we now take a more holistic
approach to development. Its the quality of experience (impact but also happiness),
no longer how quick you can make it to partner. They often phrase it as different
routes to the top.
Marakon Associates
Points for compassion
Doing away with the up-or-out policy has had a marked positive impact on the firm,
sources report. Killing up-or-out was an important move, but the impact on the
culture, and what we value and how we value different contributions, has been
amazing. In some regards, this has diluted the strong culture that existed (formed by
the earlier partners) and added a good dose of the values of younger generations. I
dont want to jinx it, or declare job completebut the current balance of
professionalism and compassion seems just about perfect.
Comparable compensation
Sources report that compensation at Marakon is just right. The firm aims to pay in
the top quartile of the top-tier strategy firms, which is really good. And a partner
compares Marakons compensation to that of other big consultancies: Marakons
compensation is benchmarked to be in the top quartile of top-tier strategy consulting
firms, explains an associate. Sources say that bonus is around 20 percent of salary.
The firm also offers profit sharing, which is given out on an ad hoc basis if the firm
does especially well relative to its plan, states an insider. But there are a few who
complain that profit sharing is seldom paid out. They sometimes offer profit
sharing, but very rarelya downer at this firm, frets a consultant.
In addition to competitive salary, insiders remark that benefits are excellent. An
associate lists international medical insurance for my family and me, death in service
benefit (five to nine times the final salary to my dependant) and a sensible expat
package if you have to move abroad to work (flights, housing, moving allowances,
legal fees for visas, etc.), as part of the compensation package. Another source
comments that Marakon gives alumni tuition reimbursement for returning MBAs.
Take a break
Insiders agree their favorite perk at Marakon is the 10 & 2 policy, which allows any
consultant who has been at the firm for more than a year to take up to two months
unpaid time off annually. An associate notes that consultants really do take advantage
of this! One source says that for him, it means taking a pay cut and two months off
to miss out on the New York winter in the Southern hemisphere every year.
Staffers also give kudos to the great food in all the offices (including drinks), [and] in-
office entertainment, including ping pong, along with frequent Friday afternoon
office drinks (on the firms dime). A consultant notes, In San Francisco, we have
drinks on the terrace most weekswhere friends and significant others are invited.
Marakon Associates
Associates also report looking forward to the annual company trip, reportedly held in
glamorous locations. As an insider explains, This year it will be held in Edinburgh,
last year it was in Mt. Tremblant, Quebec, the year before in Miami, Florida. A
colleague appreciates that [the] cell phone and cell phone bill are covered by the firm.
In addition to sponsoring MBAs, an associate consultant reveals, Marakon allocates
$3,000 to 5,000 per year to spend on attending courses that will help develop my
career (e.g., language, communication, conferences in key industries).
Offices to write home about
Ahigh point for many consultants at this firm is the attractive offices. Our New York
and San Francisco offices have both won AIA awards (American Institute of
Architects). Our London office is right on Trafalgar Square. Our Chicago offices
overlook the river in the heart of the loop. Our Singapore offices are in the heart of the
action as well. In short, our offices couldnt be much better, raves an insider. And one
consultant provides a detailed description of each location: London: More ad agency
versus consultancybright, open space, colorful and fun. New York: Prada and Gucci
with slick and minimalist dcora little bit overbearing but great if youre into a chi
chi look. Chicago: More law-firm like, wood paneling and lots of walls dividing
people up. Better for hierarchical types that need their own office. San Francisco:
Often viewed as the best office of the lotamazing views over the bridge and bay,
outdoor patio, good for outdoor types. Singapore: As usual, great location and fantastic
views. A West Coast consultant agrees, delighting that his office has a gorgeous
view, beautiful architecture and fresh flowers! San Francisco takes the cake on this
one. The SF office is incredible. Where else can you have your own balcony
overlooking a great portion of the city? Offices are so over the top, in fact, that
several insiders suggest the firm probably spends too much money on them.
Committed to gender balance
Though men outnumber women here, insiders claim that the firm places tremendous
emphasis on evening out the gender imbalance. I think we are extremely eager to
hire, mentor and promote talented women, but its a constant struggle. This year, we
were able to lure back a few outstanding women alumnae, one of whom just rejoined
as a partner, comments an associate. The balance has improved recently, according
to a manager who notes, The firm has a major diversity initiative and has made
significant progress in the last three years. Fifteen percent of the partners are women,
a growing number of managers are women, and 50 percent of the incoming
consultant and associate consultant class is female.
Marakon Associates
The firm has also implemented policies that support women in terms of flexibility
and continuing education. An associate states, The flexibility around working
models and career development has even allowed us to attract back senior women
who had left the firm for industry positions or to pursue an MBA. In addition to
Marakons general emphasis on flexibility and sustainability, the firm has placed a lot
of focus on diversity as it relates to the hiring, promotion and retention of women.
Over the past few years, Marakon has implemented a number of programs
specifically aimed at supporting women in the firm. The source adds, This
includes everything from local office coffee chats to a global conference for all
female consultants held in New York each year. This two-day conference always has
an impressive roster of speakers.
Somewhat resistant to change
Despite the firms stated commitment, a few insiders maintain that Marakon still isnt
doing enough to retain its female members. Programs for womens diversity have
led to suboptimal outcomes to date. For example, a very senior woman that has been
with the company for many years has just left the firm, says one consultant. Another
source thinks the current structure, which doesnt allow for working part time, is a
detriment to female consultants: While the firm has attempted to address the issue
of women in the workforce for some time now, its unwillingness to adopt a two-client
model (and therefore allow for meaningful part-time roles) does indicate that there is
some resistance to changing.
More minorities needed
Sources agree that an area of diversity in which Marakon could improve is retaining
minorities in management levels. One insider admits, Marakon currently has no
African-American partners (although [there are] senior managers who are African-
American and will likely make partner in the next two to three years). Marakon has
no Latin partners currently. Marakon has a number of Asians [in senior leadership].
There is no formal diversity program targeted at race. I have never perceived it to
be an issuebut I am a white male. Another associate comments, Unfortunately
few minorities stay with the firm beyond the consultant level (very few minority
managers). In addition, the number of underrepresented minority consultants is
virtually zero. However, there has been a large push recently to hire and retain more
minorities, which should begin to bear fruit in a few years. And an insider points
out that all partners are white and 99 percent male. They can be carbon copies of
each other at timesintroverted and socially awkward. An associate reports that
Marakon Associates
the problem is the firms failure to focus on minority development. He states that the
firm lacks efforts to promote, mentor and lead people based on minority status. A
co-worker concurs: There are few tangible efforts to hire and promote ethnic
minorities; however, there are no obvious (or even subtle) barriers to the success of
minorities.
Receptive to all
While there are no specific efforts to further gay and lesbian diversity, the firm is
very open to gay and lesbian colleagues, say insiders. One source reports, The
firm has an openly gay managing partner, an openly gay manager and several openly
gay associate consultants and consultants. The firm has done pro bono work for the
human rights campaign. There is no formal diversity program targeted at sexual
orientation. I do not consider it to be an issueand I am gay. Another consultant
asserts that at Marakon, there is incredible receptivity to different lifestyles. We
have several openly-gay consultants who are treated with respect and acceptance.
Actively serving
Marakons offices are quite active in regional community service. Efforts are
coordinated by people in the offices that have a strong interest in leading this up, a
source explains. Habitat for Humanity, Junior Achievement, Chicago Cares, the
Dyslexia Institute and Hands on San Francisco are listed as organizations where
Marakon teams lend time and support. Each office also participates in pro bono
consulting projects. In San Francisco, a source states, We have done major pro bono
strategy projects for institutions like Kellogg School of Management and the
Stanford Alumni Association. Weve also done them for nonprofits like the Battery
Dance Company in New York and the National Museum of Science and Industry in
London. And an insider in Chicago notes, There were at least three pro bono
projects this year, in addition to our ongoing relationship with Habitat for Humanity,
various clothing drives and Christmas gifts for a classroom of underprivileged
children. One associate adds, We even helped to rebuild a baseball field in inner-
city Chicago (it was great!).
Marakon Associates
New Orchard Road
Armonk, New York 10504
Phone: (914) 499-1900
Fax: (914) 765-7382
www-1.ibm.com/services/us/
index. wss
LOCATIONS
Armonk, NY (HQ)
More than 300 offices in 160
countries
PRACTICE AREAS
Application Services
Customer Relationship Management
Financial Management
Human Capital Management
Strategy & Change
Supply Chain Management
THE STATS
Employer Type: Division of IBM
Ticker Symbol: IBM (NYSE)
Senior Vice President: Ginni Rometty
2005 Employees: 190,000
UPPERS
I like that if I wanted to leave
consulting, I could stay within the
IBM organization
Being the leader in an area where
other firms are trying to catch up is
exciting
Excellent work/life balance for a
strategy firm
Ample opportunity for
telecommuting
DOWNERS
People automatically associate us
with hardware development
Compensation a little below
average for high-end strategy
In terms of recognition, were
behind all the consulting firms
Size can be a limiting factor
sometimes; you might feel like
youre a number
EMPLOYMENT CONTACT
www-1.ibm.com/employment
IBM Global Business
Services
V A U L T
P R E S T I G E
R A N K I N G
13
THE BUZZ
Better than people think, thanks
to PwC
IT-focused, implementation
Huge teams; a try-to-do-
everything firm
Speed of a turtle
THE SCOOP
Services on the rise
You may know IBM as the largest IT company in the worldbut the firm is no
lightweight in the consulting arena, either. From its supply chain management
practice, employing more than 8,000 consultants, to its financial management
consulting practice, with 6,000 consultants, IBMs Global Services division has a
powerful presence. In fact, as Big Blue continues to gear its business toward a more
service-oriented model, Global Services has taken an increasingly powerful role in
the firm, contributing $47.4 billion of the companys $91.5 billion in revenue in fiscal
year 2005. Altogether, the Global Services division employs more than 190,000
people in more than 300 offices worldwide.
IT know-how, strategy savvy
IBMs Global Services division offers both IT services and traditional business
consulting, often combining its know-how in integrated engagements. Aside from
the aforementioned financial and supply chain management, the consulting division
also encompasses application services, customer relationship management, human
capital management, and strategy and change. Under the IT services umbrella, IBM
offers a host of services such as networking, customized training and security, though
outsourcing makes up the bulk of Global Services profits.
A boost from PwC
Of course, Big Blue is one of the worlds most recognized brands, but the firm has
had to make an effort to be recognized as a player in the services and consulting
worlds. It wasnt until 2001 that revenue from the services division outpaced that
from IBMs hardware arm. But the consulting division got a big boost in 2002, when
IBM acquired PricewaterhouseCoopers Consulting, adding some 30,000 employees
in 52 countries to the 30,000 IBM consultants already onboard. The acquisition came
about after a rocky attempt by PricewaterhouseCoopers to take PwC Consulting
public in 2002. The failure of this attemptalong with a much-derided move to
rebrand PwC Consulting under the name Mondaywere part of the reason PwC
didnt take off as an independent entity, leading to IBMs acquisition.
After the deal, suddenly IBM was a force to be reckoned with, becoming the largest
consulting services organization worldwide. Then-managing partner of IBM
IBM Global Business Services
Business Consulting Services, Virginia Ginni Rometty, aggressively pursued
former PwC clients through a win-back program, eventually winning a majority of
them over to BCS. A series of smaller acquisitions solidified IBMs lead dog
position, including the 2002 purchase of Matra Datavision, a French consultancy
specializing in product lifecycle management solutions.
Global Services biggest fan
IBM proved its dedication to the services sector in 2002, when the firm named Sam
Palmisano its CEO. Palmisanos roots are in the services sectoras former head of
IBMs Global Services, he wasnt shy about the divisions continued plans for
growth. The most obvious example of the firms new direction was IBMs decision
to unload its PC business, in a deal that closed in the spring of 2005. IBM continued
taking steps to move itself away from a commodity model (focused on selling parts
and technologies) and into a services model (selling the brainpower of its
consultants and other resident experts).
It wasnt all smooth sailing for the companys employees, however. In May 2005,
IBM began a series of shakeups in Global Services. For starters, the firm announced
planned layoffs of between 10,000 and 13,000 employees, mostly in Europe. The
reorganization was seen as a move to push IBMs business consulting strengths ahead
of its more traditional body shop computer services, analysts said. More changes
came in mid-2005, when IBM announced a big Global Services reorganization.
Company execs insisted the move wasnt a response to problems in the business, but
rather a natural evolution. The realigned group was tasked with focusing more on
high-value skills in line with those offered by IBMs original Business Consulting
Services division, formed after IBM acquired PricewaterhouseCoopers consulting
practice. The natural choice to head the group in its new iterationIBM Global
Business Serviceswas Ginni Rometty, who holds the title of senior vice president.
New services from Global Business Services
The retooled GBS division features a new line of business performance
transformation services (BPTS), which capture a market outside the traditional IT
industry, driven by clients converting more internal spending sales, general and
administrative, and research and development to external investments in such areas
as logistics management, engineering services, HR processes, procurement,
marketing, and finance and administration. An early example of this model was
IBMs work with the New York Stock Exchange, which contracted with the firms
engineering division to develop a new order management and messaging system
supported by 3,000 custom-designed handheld devices for trading floor brokers to
place buy and sell orders via a wireless network. Other new developments include a
new strategy for attracting midsized businesses to its consulting services, announced
in March 2005. The firm outlined a plan to invest $300 million in a partner
approach, aimed at forming relationships with regional consultancies catering to
smaller clients.
Worldwide delivery
As a whole, IBM raked in $91.1 billion in revenue during 2005, down slightly from
$96.5 billion the previous year. Global Services revenue, at $47.4 billion, was up
slightly from $46.4 billion in 2004. Much of this growth has come from overseas:
The firm saw growth of 55 percent in revenue from India in 2005. In fact, the firm
develops many of its technologies and solutions in consulting delivery centers
located in an array of countries worldwide. In March 2006, the firm announced the
opening of a new Global Business Solution Center in Bangalore, India, aimed at
developing and enhancing a portfolio of industry solutions that its consultants can use
in areas like supply chain optimization, banking risk and compliance, and retail
merchandising. IBM now has more than 38,500 employees in India.
IBMs presence is felt around the world (as befits a company that has International
in its name). In the Asia-Pacific region, the services division has worked with
Singapore Airlines on IT outsourcing; Esquire, Koreas leading fashion marketing
company, on IT infrastructure management; and Asias Equinix, on a range of
managed services and e-business solutions.
The firm has a high profile in Europe, too, thanks to strategic acquisitions and major
clients. In December 2004, the firm acquired Danish IT services companies Maersk
Data and Dmdata, giving the services division a foothold in the region. Major clients
in Europe have included Portugals Banco BPI and broadcast network Retevision,
brewing giant Carlsberg and Austrian insurance company Wiener Staedtische Group.
Latin America has been another success story for Big Blue, including a $6.9 million,
seven-year contract to provide IT operation and maintenance services for CorpBanca
Venezuela, following an earlier successful $6 million partnership with the banks
Chilean branch. In Mexico, the firm has been working with the countrys retailer
Omnilife to support desktop PCs running on Linux in local schools.
Public sector presence
Though IBM doesnt enjoy the same cache in the federal sector as competitors like
Booz Allen, the firm has quietly racked up some major wins in government services
recently. In March 2006, the firm won a contract valued at more than $110 million
to provide the Department of the Interior with services to standardize and integrate
the agencys financial and business management systems. The deal included the
provision of consulting services aimed at examining the best practices for these
systems in government and the private sector. That same month, the firm won a $7.4
million contract with the U.S. Armys Office of the Judge Advocate General to
provide technical support and project management services for the agencys
computing needs and delivery of legal services. In January 2006, the firm scored a
blanket purchase agreement to streamline and modernize the Department of Justices
financial management system, valued at around $150 million. And in December
2005, IBM won a contract valued at more than $270 million to provide IT support
services for the Department of Defenses commissary sales. On the state side, the
firm announced in February 2006 that it had won a $2.9 million contract with the
state of Georgia to manage its information technology assets, as well as its fleet and
facilities inventory.
High-flying services
IBMs consultants work with clients in just about every industry imaginable. In
recent years, Global Business Services has made a name for itself as a go-to resource
for airlines, who increasingly want to adopt the firms on-demand approach to IT
services. Global Services has worked with JetBlue Airways to design self-serve
check-in kiosks, and has provided similar solutions for Air Canada, Alitalia, British
Airways, United Airlines, US Airways, Southwest Airlines, KLM Airlines, Japan Air
Lines, Gulf Air and Air New Zealand.
In the private sector, IBMs engagements often are a blend of IT and traditional
consulting services. In April 2005, the firm inked a deal with Circuit City Stores to
transform the retailers merchandising and supply chain systems, integrating both
IBM software applications and Global Business Services planning, implementation
and integration services. Other major clients in 2005 and 2006 included Altria
Corporate Services and Philip Morris USA, northeastern supermarket behemoth
Pathmark Stores, Sprint and Dow Chemical Corporation.
Surveys and more
The Global Business Services division puts out reams of research and surveys. In
May 2006, the firm published a survey of both consumers and business leaders in
North America and Europe, indicating that customers think companies are
increasingly acting without an understanding of what they want. Another survey, in
March 2006, found that almost 60 percent of U.S. businesses believe that cybercrime
is more costly to them than physical crime, and that a majority believe that threats to
corporate security come from within their own organizations. The IBM Institute for
Business Value (IBV) is a group of 60 consultants that conducts research and analysis
to provide senior executives with strategic insights and recommendations. Working
in collaboration with industry experts, leading-edge clients and consultants in the
field, the IBV helps to anticipate change in industries, formulate road maps for
change and quantify the expected return on investments. It has published more than
100 studies, including the widely read Global CEO Study 2004, which polled 456 of
the top CEOs worldwide for business insights and analysis.
IBM is often recognized for its workplace practices, earning honors from the
Environmental Protection Agency for its unique solutions for commuters (such as
ridematching and telecommuting). For 18 consecutive years, Working Mother
magazine has included IBM on its the Top 10 List of the 100 Best Companies for
working mothers. And IBMs consultants shone on Consulting Magazines 2005 Top
25 Most Influential Consultants list, where they took the lead in nominations (seven)
among the group of 75 nominated consultants.
Excited about education
IBMs community service efforts have an educational spin. The firm has invested $75
million worldwide in a school reform program known as Reinventing Education. In
September 2005, IBM announced the pilot of a new Transition to Teaching program,
an effort to help employees become fully accredited math and science teachers when
they elect to leave the company. The program, the first of its kind in the U.S.,
reimburses participants up to $15,000 for tuition and stipends during the student
teaching phase. Another educational effort is the firms commitment to EXITE
(EXploring Interests in Technology and Engineering) Camps for middle-school-aged
girls, a program it has sponsored since 1999. The camps, taking place across the globe,
are meant to inspire interest in math, science and technology among young girls.
EXITE campers work in teams with IBM employee volunteers on projects that touch
on innovations in medicine, health care, agriculture, entertainment, consumer goods,
environmental preservation, and rescue and relief efforts.
GETTING HIRED
Seeking the elite
If youre looking to dive in at Big Blue, IBMs online careers pages can help with the
basics, listing career fairs, campus recruiting events and other networking
opportunities. But information on the site isnt currently geared to consultants in any
detailed waythats where our sources come in. The firm notes that a major
redesign of the web site is set to launch in late summer 2006.
Generally, IBMs consulting divisions are filled by experienced candidates or those
just out of B-school, sources suggest. I think we are becoming on the higher scale
of extremely selective, an insider reports. A big thing about IBM versus a lot of
other firms is that because we are so big, we can afford to go to market by industry
(we dont really hire generalists). But the source adds that for MBAhires, we dont
expect them to have specific experience, so its not a must, but it does help. Another
consultant echoes the firms selective leanings, noting, Theyve started to target
more elite individuals as a result of our rebranding, and they have started to bring
compensation in line to attract some of those candidates. Maybe the rationale is that
if we cant get the top 10 percent of the very best, if we can get people from the top
20 percent of the very best, thats good enough for what were trying to do.
In any case, the firm draws candidates from a pretty selective list of schools, a
source saysthe same ones all the top consulting firms are looking at now. The
insider adds that from the top down, were really stressing recruiting.
IBM makes its case
One consultant who was won over by the firm describes the experience, noting that
during a campus networking event, IBM was the last thing on my mind because its
typically known as a computer company. They talked to me about the strategy and
change practice, which intrigued me. I corresponded with the IBM representative a
few times over the summer, and he sent me some presentations explaining how the
organization is broken down. So it started looking more appealing to me, and I
decided to pursue this. I never would have thought I would work here because my
path was so separate from typical IBM engagements. Im not a techy person at all.
The source continues, After fall recruiting season started, IBM came back on
campus, and they invited me to interview on campus. I interviewed around 3 p.m.
and I hadnt even left the building yetaround 6 p.m. they had called me and told
me that I made it to the second round. A few months later, the source flew to
Cambridge for this final round. The two interviews on campus were definitely
cases, and the second round was two behavioral and two case interviews.
No Mensa tests
Sources tell us that the two-round interview process is pretty similar for both MBAs
and experienced hires. According to a source, You definitely do not have a case in
every interview. Theres more of a focus on the behavioral/fit interview. Those
behavioral questions are described by insiders as of the Tell us a time when you did
this ... formula. As for the case questions, one consultant says theyre not as mind-
blowing as they are at some of the other consulting firmswe try to use questions
from real-life experience from various projects to see how candidates would attack
the issues. Some other firms are looking for grey matter and are trying to do the
Mensa testthey want to see how smart you are. Our interviews are more practical.
Its not our job to stump you. Were not testing for intelligence, were looking for
logic. Our goal is to just see how candidates approach the issue.
OUR SURVEY SAYS
No starch, please
Forget everything you think you might know about working at IBMthe reality for
the firms consultants defies stereotypes, insiders tell us. IBM has this connotation
of Big Blue with starchy shirts, but I find that people in leadership positions in
strategy and change and in the BCS practice as a whole are a fairly diverse group of
folks, one consultant says. Its very team-oriented and also very people-oriented,
meaning that people take precedence over projects, a colleague comments. He
emphasizes that its very team-oriented both at the client site and back at the hotel
having dinner. These are very good people to hang out with. In addition, a
colleague notes, We are trying to build a small community within a big organization.
We try to make you feel a parta smaller group within a monster.
Numerous sources back up this description of IBM as a laid-back, down-to-
earth, people-first sort of place with, surprisingly, a small-firm feel. The
typical IBM consultant is a person that wants to be challenged, is pretty bright, but
doesnt want long hours, and is looking for quality of life balance, a consultant tells
us. Many people came from some sort of an investment bank or have a hard-core
financial services background and now want to use their expertise in a consulting
atmosphere; its more laid-back, and more family-oriented. Its very friendly,
supportive, no backstabbing, no ones out to get you, the insider adds. According to
a colleague, The organization overall is filled with very bright people who dont
necessarily have the superiority complex that I perceived from other firms that I
received offers from.
Change is gonna do you good
Of course, with the PwC integration, the firms consulting culture hasnt exactly been
static over the past few years. Theres also a huge transformation going on culture-
wise, an insider reports. Were remarketing and rebranding ourselves away from
being such a techy type firm. Its a transitional time. Its a very open, changing
environment. Another source admits that there has been a bit of a culture clash
with old IBM consultants against the old PwC consultants, but adds, I think,
overall, both organizations have benefited. PwC consultants may have wound up
with lower salaries than they had, but generally, the talent that came from PwC has
really benefited the overall consulting organization and has allowed it to achieve
some of the pedigree that it has been seeking.
The firm continues to work on this pedigree, another insider says, noting, We are
attempting to grab strategic-level projects and [are] successfully doing that, but we
have an inferiority complex that prevents us from realizing our full potential. We are
capable of, and we would like to be perceived as a more traditional strategy
consulting firm, and we would like to see ourselves on the same list as BCG,
McKinsey, etc. Still, a colleague reports, Its important for people to know that at
IBM, theres always a tech-operations flavor in your projects, its never just pure
strategy.
The five-day workweekreally
And most insiders agree that when it comes to work/life balance, IBM consultants
have it a bit better than some of their hard-driving strategy competitors. In general,
you meet both your client needs and your personal needs as a consultant, says an
insider. IBM has by far the largest focus Ive ever seen on work/life balance, says
another source. One huge aspect of that is how they focus on being able to be
mobileits just as accepted to be working from your home office as it is to be in the
office (not only on Fridays). This makes life so much easier and better than if youve
been on the road for four days. IBM is pretty good about listening to your needs,
another consultant reports. Were typically on the road Monday through Thursday,
and theyre very good about having us come home on Thursday. Sometimes Ive had
to stay the weekend, but for the most part, theyre good about keeping the work
limited to the week.
Work hours tend to fluctuate at IBM and are different for everyone, sources say.
According to one insider, There have been really busy weeks where you may
approach 60 hours, but other weeks 45 to 50 hours is all you need to work. Some
people in our practice rarely work more than 50 hours a week, and they do great work
and its never thought of. I work about 50 hours a week, including travel. I work
half-days [on] Friday, from home usually. I fly 11 hours a week on average, and work
about 40, another source reports. Weekend work is self-imposed, says a
consultant. There have only been a couple times where Ive had a weekend call.
But for the most part, its work Monday through Friday, and you can close your
laptop over the weekend.
Then again, there are more brutal schedules to be found at IBM: I work between 14
to 16 hours per day, says a consultant, adding, Im satisfied because were doing
good work and Im a high-energy person. This is the life I signed up forI knew
that going in, so these hours are no surprise to me, though I am being stretched thin
and am working very long hours. A colleague chimes in, saying that the amount
of hours and time Ive put in since the acquisition has actually gone up. I think that
at the associate partner/managing consultant levels, youre expected to both sell some
projects and also be utilized basically 100 percent (targets of 80 to 100, but in reality,
its close to 100). And you have to put together thought papers and white papers.
Four days away
The firms attention to balance is reflected in its approach to travel for consultants,
sources suggest. Its always possible to find the IBM consultant who travels four
days a week for months on end. The projects range from five weeks to nine months,
but most of strategy consulting projects run from five to 12 weeks. If you travel, its
for four days a week during the project, says an insider. But, as one consultant tells
us, If youve been on the road a lot and you want to stay local, theyll make [an]
effort to honor your requests. They may put you on internal projects (anther bonus
of being with IBM is that there are a lot of opportunities to consultant for IBM
internally), and also, IBM is everywhere, so they can put you on a local project.
Another source notes that in certain practice areas and businesses, such as finance
and entertainment, clients tend to center around specific locations that are the
centers of these industries (Chicago, New York, London, Los Angeles) and people get
more local work.
One insiders comment illuminates both the culture and the attitude toward travel at
IBM: When I told one of the partners at my ex-firm that I was leaving because I
wanted to spend more time in New York, he said, You live in New York? That just
showed me one, how little he knew about me after all my time there, and two, how
little time Id been able to spend where I actually live. Here, there is an effort to place
people close to their home offices.
Taking care of its own
Generally, IBM isnt seen as an up-or-out firmparticularly since the vast reach of
Big Blue allows for plenty of other places for insiders to land if they choose not to
climb the ladder. As one insider describes it, If youre in a pure strategy consulting
firm, they have an up-or-out policy and try to maintain the pyramid scheme. At IBM,
our consulting practice is considered the crme-de-la-crme of IBM. We try to keep
consultantsif they want to leave consulting, we try to keep them within IBM.
Says a colleague, IBM is an economy unto itself. Anyone with a keen interest in
solving the business problems of the worlds top companies will find a multitude of
opportunities to do that within the company. If they want to be consultants, they have
many opportunities. But if theyre using consulting as a stepping stone, they can
move around within the organization into a more management-type role. A
consultant agrees, saying, IBM is a company that encourages long-term growth. If
youre not happy in your current role, you can go into another field in the same
company. Its a door that IBM is happy to have open at all times. Its something
thats talked about, not just something thats done covertly.
As for promotion itself, a source says, I think other firms are more strict than IBM.
Its a little harder to get fired here, but also hard to get promoted. If youre really
good, I dont think you have a problem getting promoted. Indeed, an insider reports,
Some people dont want to move up because it means more selling. Most
consultants come in now with an MBA at a consultant level, then [move] to senior
consultant, managing consultant, etc; theres no time frame in place for moving
between positions. According to another source, There are promotions every one
to two years, generally, but there are rigorous processes in place for it. There are
specific criteria, categories, etc., to be promoted, clearly laid out. At the end of
projects, you document what youve done and you get comments of managers. At the
year end, all project assessments are consolidated to determine your promotability
to the next level. Promotions, in general, are good, very merit-based, and theres
no clog at the top. Its a big enough company that you can keep moving up if youre
capable, another insider says.
Stuck in the middle with Big Blue
Compensation at IBM is described by one consultant as about in the middle
compared to other opportunities for MBA grads, and by another as below other
blue-chip strategy firms. More recently, the firm has made it clear that its going to
start paying us more like strategy consultants, and there have been efforts to improve
alignment in salaries, says another source, but there has also been more pressure to
deliver a stronger quality work product in a shorter period of time, and working more
hoursthe standard has been increased. I dont think thats necessarily a bad thing.
According to another insider, We do not compensate for cost of living, so for our
MBAhires, the salary is pretty standard across the board, no matter where you live.
Lately, weve been trying to consolidate our consultants into select cities and build
those communities up.
Bonuses are doled out once a year at IBM, insiders report. Its probably not the best
bonus you would find in the industrypartly because we fall into the big IBM
machine, says a consultant, adding, The bonus is [a] combination of your
individual performance (based on yearly review), and dependent on the results of
your business unit. You can have a stellar year, but if your business unit is so-so, then
your bonus wont be as big as you would like it to be. A few years ago, if you got
the top rating in your business unit, youd get at least a 20 to 25 percent bonus. Now,
youd get at most 10 percent. Thats probably indicative of the past two years. A
colleague chimes in that bonuses are not really fair, explaining that the bonuses
are too aggregated to be about individual performance, since its more about how the
group does than how you as an individual do.
But another insider notes that other rewards make up for this on a quarterly basis: If
you do a great job on a project that quarter, youre given a monetary award. Your
project manager nominates you and the head of the practice decides which people
amongst those nominated get the prize. The consultant notes that 10 to 30 percent
of the practice gets these quarterly rewards.
Perks all around
While salary is average, a consultant admits, total benefits are better than
average, including the best 401(k) plan Ive ever seen, great vacation/sick policy.
The health benefits are also the best Ive ever had. This is on top of discounted stock
options and the Thanks programyou can give out six certificates to your
colleagues each year, and they can redeem the certificate for a gift (backpack, golf
club, etc.) available on our web site, says a source. In addition, another consultant
notes, Because of our size, we get discounts on tons of stuff, like on some of our
partner airlines, car rentals, personal products (electronics, clothing), hotels. It seems
like every company gives us perks. That said, an insider reports, We are tighter on
our own expense policy. We do not have the freewheeling consulting lifestyle that
some firms have. If youre taking out clients and schmoozing, thats different, of
course, but its not as liberal as other firms. Says a colleague, We are able to
expense everything in our home office: Internet, home phone and cell phone can be
expensed.
As befits a global tech giant, IBM is all about telecommunications, and you can go
to any office in the world and its like being at your home office, a consultant
reports. In New York, said to be one of the nicest offices, consultants work on the
hotel model and reserve a workspace ahead of time, in utilitarian surroundings,
another source says.
Likeable leadership
From the top down, management at IBM gets props from consultants for accessibility
and helpfulness. One insider praises the firms openness of leadership, noting,
They are accessible; communication is consistent in comparison to other firms
where Ive been. I feel we dont have to wonder about things because they are very
forthcoming. As big as IBM is, I find that most of the partners are pretty
accessible, pretty down-to-earth, says a colleague, adding, I have seen a big wave
of infighting, which is natural, but most of the time, if you go to a partner with a
situation or what you think is best for the client, they are very responsive. The senior
people that I deal with really do have an interest in how things are going with our
personal lives, and are very nice, which makes life a little easier.
Another insider explains that relationships here are not formalized since it is a very
matrixed organization, with a number of managers, including one who determines
engagements, one who manages evaluations, and practice and sector leaders. I may
never meet with the person who is technically my manager, the source addsMore
often, Im managed by the people I actually work with on the project, who have more
influence on my career by the evaluations.
The firm is also reportedly big on the buddy system and, as one associate reports,
Upon coming into the firm, new hires are assigned a buddy to help them through the
process. They try to align you with someone whos at the same level but can help
you navigate the firm and make it feel smaller. Individuals are assigned a manager
within their practice area, and normally thats lined up with the competency youre
in.
Making time for training
IBM provides a lot of opportunities for formal training; the only thing is the time
constraints, a source says, noting that if youre working on a project, you cant
really go to training. But the source adds that IBM is pretty strictthey highly
recommend that we get two weeks of training per year. To get promoted, you have
to show that you have a new skill set, taken from various training opportunities.
Theres also a lot of online training available. Im impressed with IBMs training,
says a colleague. You can choose certain paths and there are all types of
certifications offered. There is a lot of online training. You develop your own plan
of training with a manager.
The firms Learning & Knowledge organization, staffed with hundreds of
employees, arranges all sorts of training opportunities, another insider explains, and
the strategy classes have been really neat. The practice funds an internal transfer
cost, and they send you to the classes as part of your personal development plan.
Theyll send you to different parts of the world for five to 10 business days each
year.
Women on top
Gender diversity is very big at Big Blue, an insider says, perhaps unsurprisingly
since the head of the division is a woman. Women are represented the best out of
any place that Ive worked. Its something that I notice and definitely care about,
another source reports. Then again, IBM, like most management consulting firms,
still has a ways to go in terms of balance: My training class was 30 people, and I
was the only female hire. In the class after me, I heard there were a number of
women, though. In general, there are not a lot of females, I must say, a consultant
reports, adding, though, that they do have womens networking meetings.
When it comes to minority hiring, IBM is at least on par with other firms, a
consultant observes, while a co-worker asserts that diversity outside of women is
very diverse, in terms of minorities, gays and lesbians. He continues, Ive seen e-
mails for gay, lesbian and bisexual clubs. You can basically create your own club for
any interest. Theyll let you do most anything if you just ask. Another source
explains that the CEO is evaluated on his commitment to diversity by the board, so
that is an initiative for him. IBM definitely reaches out to minorities, says another
source. We are represented at the black and Hispanic MBAfairs. Across the board,
and in our leadership positions, we have really good diversity.
Charity on demand
For community-minded consultants, IBM offers a host of opportunities to get
involved. This includes a pretty competitive application to send consultants to work
in another country for pro bono consulting, taking about 10 to 15 people per year, a
consultant says, along with a program in place for easing the transition to being a
teacher. Another insider explains that through the IBM On-Demand Community,
each office has a designated leader that is responsible for finding local opportunities
for employees based out of that city. Everyones definitely encouraged to join the
community and you get an e-mail every time theres an opportunity in your area. Its
cool to see how many people participate in this opportunity. Each office has
different areas of interest, insiders report, which includes programs like Habitat for
Humanity. In addition, a source says, theres also an IBM drive, in which IBM
encourages us to give through our payrolls to specific charities. Other companies
give you a handful of charities to choose from, but IBM has a huge list of charities
to give to. It had most charities that Ive ever heard of. I believe the money we
donate is matched.
IBM Business Consulting Services
We are trying to build a
small community within a
big organization. We try to
make you feel a part.
222 West Adams Street
Chicago, IL 60606
Phone: (312) 648-0111
www.atkearney.com
LOCATIONS
Chicago, IL (HQ)
Offices in 30 countries
PRACTICE AREAS
Complexity Management & Innovation
Growth Strategies
IT Strategies
Merger Strategies
Supply Drive Value Creation
Transformation
THE STATS
CEO: Paul Laudicina
2005 Revenue: $798 million
UPPERS
Firm values client relationships
On a slow upswing after a tough
transition
DOWNERS
Low opportunities for
advancement
Little support for junior-level
people
EMPLOYMENT CONTACT
www.atkearney.com
A.T. Kearney
V A U L T
P R E S T I G E
R A N K I N G
14
THE BUZZ
100 percent process
improvement
Nice guys; high quality products
Too much turmoil
Not female-friendly
THE SCOOP
Consulting royalty
A.T. Kearney has noble roots in the consulting world, having gotten its start as part
of McKinsey & Company; founder Andrew Thomas Kearney was one of the first
partners to join management professor James Oscar McKinseys fledgling Chicago
consultancy in 1926. While these firms still share the same commitment to providing
high-level strategy services to top corporate clients, theyre no longer relatedA.T.
Kearney branched out on its own in 1939. Much more recently, the firm made
headlines when it shed another corporate parent, IT consulting giant EDS, from
which it split in early 2006.
Focusing on operations and the manufacturing industry, A.T. Kearney stuck close to
its Chicago home base for its first 35 years of business. In 1961, the firm opened its
second office, followed three years later by its first non-U.S. office in Dsseldorf.
International expansion was the name of the game for the next few decades, as A.T.
Kearney set up shop all around Europe, North America, South America, Asia and
Africa. With 2,500 employees (approximately 60 percent of whom are consultants),
A.T. Kearney now has offices in 30 countries around the world.
As the firm expanded globally, it also broadened its palette of services, and now
counts mergers, growth and IT strategy, as well as enterprise services transformation,
strategic supply management, innovation and complexity management, supply chain
management and supply management services among its service areas.
The Texas years
A.T. Kearneys 10-year relationship with EDS was a tumultuous one. The Plano,
Texas-based tech services giant acquired A.T. Kearney in 1995, just as EDSs own
consulting arm was struggling. A.T. Kearney brought some needed consulting
expertise and street cred to EDS, while EDS gave the firm access to some of its high-
profile clients. EDS proposed moving the relationship back to its home base, and for
the first time in its long history, A.T. Kearney moved its headquarters from Chicago
down to the Lone Star State.
A.T. Kearney profited from the marriage at first, posting industry-leading growth
figures and breaking the $1 billion barrier for the first time in 1998. But cultural
differences between the firms soon became apparent, especially as the economy
and EDSs business slowed down. Some key differences included basic power
A.T. Kearney
dynamics (EDS was much more top-down than the apprentice-oriented A.T.
Kearney) as well as the firms approach to business. While EDS was wedded to a
multiyear engagement model, with an emphasis on tech outsourcing deals, A.T.
Kearney traditionally specializes in shorter-term engagements focusing on problem
solving. EDSs sinking earnings were reflected in A.T. Kearneys declining revenue
from the peak of $1.2 billion in 1998, the firm posted revenue of $857 million in 2003,
and $806 million in 2004.
Buy-bye, EDS
In early 2005, rumors began to swirl about a possible sale of A.T. Kearney, including
a possible management buyout, led by A.T. Kearney execs. In August 2005,
negotiations by EDS to sell the firm fizzled after the sole bidder, consultancy Monitor
Group, withdrew an offer. Just a few months later, in November 2005, EDS agreed
to a deal through which A.T. Kearneys officers would buy the firm. Though
financial details were not disclosed, the buyout, completed in January, was a global
affair, with more than 170 senior A.T. Kearney staffers from 26 countries
participating. Officers then elected a global, 11-member board of directors, and
Henner Klein, who led A.T. Kearney under EDS since 2003, stayed on as CEO.
Separately, EDS sold the A.T. Kearney Executive Search division to an investment
group.
Loyal leaders
The newly independent A.T. Kearney is off to a positive start, thanks, at least in part,
to a highly motivated leadership. According to Consultant-News.com, many A.T.
Kearney managers showed a fierce loyalty to the firm during the buyout. Mark Page,
a VP in the U.K. office, told the publication in January 2006 that he had received a
number of calls from headhunters, all with the same cynical ploy. You can stay there
and pay, or come to us and get a sign-on bonus. However, the publication reported,
90 percent of the managers who were invited to invest in the buyout chose to do so.
According to the structure of the buyout, managers were able to buy in at two levels,
with partners acquiring voting stock and principals investing in nonvoting
equity. In the future, according to Consultant-News.com, anyone who makes it to
partner at the firm will be asked to invest.
Insiders like Page and his fellow directors, as well as external analysts, praised the
deal, noting that A.T. Kearneys new-found freedom gives it an opportunity to adopt
a more entrepreneurial, growth-oriented approach. Insiders also predicted a surge in
A.T. Kearney
high-level recruitment, as the cloud of EDS uncertainty finally passed. Remarkably,
after so much turmoil, the relationship between A.T. Kearney and its former parent
remained friendly, and the two companies inked a multiyear service and marketing
deal through which the consultancy will continue to provide consulting services to
EDS and its clients.
Leading the thought leaders
Aside from its engagements (which it doesnt usually publicize), the firm manages to
remain a magnet for global leaders through events such as its annual Global Business
Policy Council. Designed as deliberately small, off-the-record events, the councils
typically draw around 50 CEOs and other thought leaders to discuss issues and trends
in international locations. In 2005, the councils managing director, Paul A.
Laudicina, was named one of the Top 25 Most Influential Consultants by Consulting
Magazineand in July 2006, the firms shareholders elected Laudicina to a three-
year term as the next CEO and managing director, and he succeeded H.L. Henner
Klein in September. The firm also oversees the European CPO Club, a group of
powerful European thought leaders working in procurement and supply chain
management, which meets twice a year.
A.T. Kearney also is an influential presence among business thinkers and policy
wonks, publishing several widely read studies and surveys each year. Its annual
Global Retail Development Index tracks retail investment attractiveness among 30
emerging markets, in an effort to help retailers prioritize their global development
strategies. The index made a splash in 2006 by declaring Vietnam to be a hot new
market in the Asia region. Another annual tracking tool, the Global Services
Location Index, ranks the most attractive locations for the offshoring of service
activities such as IT, business processes and call centers. In the 2005 index, A.T.
Kearney defied expectations by ranking the U.S. relatively high, at No. 11 out of 40
countries evaluated.
In 2005, A.T. Kearney published World Out of Balance: Navigating Global Risks to
Seize Competitive Advantage, by VP and Global Business Policy Council head
Laudicina. The book argues that many global executives are ill-prepared to deal with
an increasingly complex global environment beset by challenges ranging from
natural disasters to corporate scandals. In the book, Laudicina advises corporate
leaders on how to transform their companies into value-builders that can handle
both emerging threats and opportunities with ease.
A.T. Kearney
Giving it away
Though the firms fees reportedly have traditionally been priced at the high end, A.T.
Kearney doesnt shy away from pro bono work. Recently, the firm partnered with the
New England Council on a comprehensive study of the New England economy,
identifying the regions strengths and weaknesses. The study was meant to focus
attention on areas that require the immediate attention of public and private sector
leaders.
Kearney careers
A.T. Kearney undergraduate new hires generally start out as business analysts, while
those with non-MBA masters degrees or some experience postundergrad may start
as senior business analysts. Both of these positions involve client interaction. The
next position up the ladder is associate (MBA hires), followed by the management
rungs of manager, principal and officer. The firm helps consultants along the career
path through a mentorship culture, as well as plenty of training. After identifying
desired skills with their mentors, consultants can take advantage of numerous
training opportunities both in the classroom and web-based. These programs, some
of which are invitation-only, focus intensively on the skill set required of consultants.
Still, dont mistake A.T. Kearney for a hand-holding kind of placethe firm insists
that the individual consultant is responsible for his or her professional
development, with advancement rewarding the truly motivated.
GETTING HIRED
Under attack
A.T. Kearney gets high marks on selectivity, searching for candidates at such top
schools as Sloan, Wharton, Chicago GSB, Kellogg, UCLA-Anderson and Columbia,
sources report. One insider describes a very relaxed atmosphere at the interviews,
while another calls the interview process good and fair. And while one consultant
feels that some A.T. Kearney interviewers try to intimidate the applicants to see
how candidates behave under stress, the firm claims that this behavior is not part
of the interview process and that it holds an interviewer training course every fall
before interviews begin so consultants can get the proper training and guidelines on
how to conduct interviews, both case and fit.
A.T. Kearney
Standard interview fare
Interviews at the firm are typically broken up into two rounds, a case interview and a
personality interview. One source, who had five interviews between two rounds, had
two interviews on campus with junior consultants, three interviews in the office with
senior consultants and a decision within 48 hours after that. Another employee reports
having had three rounds before my offer. The first round was a phone interview. The
second round was two 45-minute interviews on campus, both case interviews. The third
round was at the regional office with a partner, who focused on fit for about an hour, and
a manager, [who conducted a] case interview. One consultant adds that as a nice perk,
in the break of the interviews there was a nice lunch included.
Employees mostly experience typical consulting interviews: a first part of
discussing CV, and a following case interview. One source says, Cases ranged
from fixing processes to classic profits are declining cases. Another insider details
specific examples: The questions ranged from the famous estimation questions (how
many auto radios are sold in Germany per year?) to the usual case studies (e.g., a
company is in trouble, what to do; lowering costs, increasing revenue, focus, etc.).
OUR SURVEY SAYS
Our clients love us!
A.T. Kearney is filled with very smart but down-to-earth people, says an associate,
and as a result, it attracts talents. The collegial group fosters a dynamic atmosphere
that values creativity and generates some really exceptional thinking, a consultant
remarks. According to another source, One thing youll hear any A.T. Kearney person
say, past or present, is that the people make the difference. It sounds corny, but its true.
Theyre smart, hardworking, down-to-earth, fun individuals. If you want to be in a
type-A, hardnosed business environment, this is not the firm for you.
This kind of culture is why clients view our consultants as sincere, smart,
hardworking and genuinely interested in learning business, claims an insider. A.T.
Kearney consultants are not viewed as arrogant or lacking expertise like some other
big name consulting firms consultants sometimes do. Another source agrees,
When A.T. Kearneys consultants come to work each day, it is to develop and
implement ideas with impactinnovative ideas that will enable business leaders to
envision fundamental change and realize extraordinary results. A colleague
explains this notion in greater detail: Were the only high-value management
A.T. Kearney
consultants with full service capabilities. That means we can do much more than
work with clients to articulate their strategic destinations. We can also help with the
implementation that gets them there.
On the up-and-up
Some sources say A.T. Kearney has suffered a bit from lost luster in the past few
years, but one employee claims there has been a renewed commitment to
partnership and apprenticeship. Another attributes this positive mood to the recent
goings on with EDS. He states, The management buyout was key. Without it, the
firm would be dead by now. Things still arent 100 percent back to the way they were
pre-EDS, but the firm is on the right track, and the financial performance will be solid
this year. One colleague couldnt agree more: Youll hear from a lot of poison
tongues of former, or even a few remaining, employees. And I have to say, most of
it is justified. But the firm is slowly returning to its former glorya lot of the
negative people are gone, the firm is independent again and the remaining employees
are the ones who actually want to be there and are excited.
Money to live on
Sources at A.T. Kearney report standard base salaries with subpar bonus, though
as one insider hopefully adds, Bonus should be better [in 2006]. Another source,
who interned in 2005 at the Chicago office and currently has an offer, claims, This
is highest from my school (top undergrad business school) for consulting that I am
aware of, and I know students with offers from McKinsey, Bain, BCG and Booz
Allen. The firm claims that it awards analysts a 10 percent performance-based year-
end bonus, and a higher percentage for those higher up in the ranks. One source
notes, however, that bonuses seem to not be paid frequently at this firm. Another
former intern notes that the firm offers a living stipend, which was reportedly
sufficient to cover expenses. For full-time hires, the firm notes that it offers $4,000
for relocation expenses, in addition to shipment of household goods, storage up to 90
days and broker fee reimbursement up to $2,000.
Go with the consulting flow
Although compensation gets some mixed reviews, one thing A.T. Kearney
employees dont complain about is the hours. According to one associate, Working
hours can be heavy, but are OK on average. One source, who reports working 60
hours per week, typically on projects that range from six to 12 months, says, Hours
A.T. Kearney
are long but manageable. Travel requirements dont seem to be a sticking point for
A.T. Kearney consultants, either. Says one insider who travels four days a week,
Travel is just part of consulting and I dont even think about it after all these years.
And for consultants who travel quite a bit, they still seem to have time to appreciate
their office space. According to one Chicago-based insider, The offices are far nicer
than we need for the work, but I enjoy them.
Problematic promotions
When it comes to moving up in the A.T. Kearney ranks, employees have one main
complaint: they dont happen all that oftenat least not lately, insiders report.
Opportunities for advancement have been extremely scarce during the last years, says
one consultant. This is partly due to the turmoil the company is in, caused by chance
in ownership structure and some losses on the competitive side. Another source agrees,
saying there are low opportunities for advancement and salary increase since company
is uncertain about the future. The firm remarks, however, that it did have a number of
year-end promotions, in addition to a few who progressed after their midyear reviews.
Room to grow
A.T. Kearney reportedly attracts diversity and has a large percentage of
consultants not born in the U.S. According to one source, however, the firm still has
a ways to go in terms of hiring and retaining minorities. We are not an exclusive
environment at all, but were probably not yet inclusive enough, he says. The same
seems to go for gender diversity. Another consultant states that at A.T. Kearney,
Women and minorities have few prospects of career development. And as one
higher-up acknowledges, We keep working on [gender diversity] diligently. Its
always a tough balance, not from a skills perspective but from a work/life balance
perspective. This is a hard job, road construction is a hard job. You dont see many
women in either profession. When it comes to diversity with respect to gays,
lesbians and bisexuals, one source points out that the firm has had a
nondiscrimination policy and domestic-partner benefits for 10 years. Weve also
successfully promoted gays to vice president and principal.
A.T. Kearney consultants also make time to reach out to their communities: One
consultant reports that the firm has recently conducted some pro bono work for the
museums, ballet and recently Chicago public schools.
A.T. Kearney
New York, NY 10105
Phone: (917) 452-4400
Fax: (917) 527-5387
www.accenture.com
LOCATIONS
PRACTICE AREAS
Consulting
Finance & Performance Management
Human Performance Strategy
Outsourcing
Application Outsourcing Business
Process Outsourcing Infrastructure
Outsourcing
Operating Groups
Communications & High Tech
Financial Services Government
Products Resources
Technology
Enterprise Solutions Information
Management Services Infrastructure
Consulting Integration IT Strategy
& Transformation Microsoft
Solutions Mobile Solutions
Research & Development
THE STATS
Employer Type: Public Company
CEO: William D. Green
Ticker Symbol: ACN (NYSE)
2006 Employees: 133,000
2005 Employees: 123,000
UPPERS
Great learning experience
Ability to run your own business
If you are looking to get into
technology consulting, this will be
the place to be
Expanding business in Asia and
Europe
DOWNERS
It is far too easy to get lost in the
shuffle
Bureaucracy
Hard to overcome a lot of the
political aspects in order to
advance your career
Quality of hiring plummeting with
lots of salesmen coming in
EMPLOYMENT CONTACT
careers3.accenture.com
Accenture
V A U L T
P R E S T I G E
R A N K I N G
15
THE BUZZ
IT and operations focused
Good at processes and at
steering large teams
Consultants who dream to
resign
Very structured and inflexible
THE SCOOP
The elephant in the room
One cant talk about Accenture without first mentioning the firms gargantuan size
employing more than 130,000 people in more than 110 offices around the globe, the
firm raked in over $15 billion in revenue in 2005, and shows no signs of slowing
down. One of the reasons clients continue to flock to Accenture may be that its a
case study in strategy savvy itself. Established in 1989, the firm has swelled its
ranks, revenue and market share through a mix of good timing (branching into sure-
fire growth areas like outsourcing) and smart public relations.
Bye-bye, Andersen
Thanks to a successful separation and rebranding campaign, few people these days
associate Accenture with its disgraced former sibling Arthur Andersena name no one
wanted to get close to following the accounting giants connection to scandal-plagued
client Enron. Following a lengthy arbitration process in which Andersen Consulting
successfully petitioned to break away from Andersen Worldwide and, in effect, Arthur
Andersen, the company renamed itself Accenture and incorporated shortly before its
IPO in 2001. The name Accenture was the subject of some mockery among industry
wags at first, but the brand, submitted by a Norwegian Andersen consultant during a
companywide BrandStorming initiative, took off. In fact, having been ranked the 51st
most valuable global brand by BusinessWeek, and No. 1 in its industry on Fortunes
2006 Most Admired Companies list (for the third year in a row), Accenture can boast of
having established a solid name for itself in just a few years.
The company divides its business into three capability groups, focusing on
consulting, technology and outsourcing. Despite a recent aggressive push into tech
and outsourcing services, Accenture still gets the majority of its revenue (just over 61
percent in 2005) from traditional business consulting engagements. Its practices are
organized around five operating groups: communications and high tech, financial
services, government, products and resources. Of these groups, communications and
high tech takes the lions share of business, posting $4 billion in revenue for fiscal
year 2005. In the consulting arena, the company offers services including change
management, corporate strategy, customer relationship management, enterprise
performance management, finance management, human resources management,
service management, shareholder value, supply chain management and workforce
Accenture
performance, among others. Clients include 87 of the Fortune Global 100 and nearly
two-thirds of the Fortune Global 500.
Black ink galore
Fiscal year 2005 brought in a record $15.55 billion revenue for Accentureup 14
percent over 2004. The firm divides its services regionally into the Americas, Asia-
Pacific and EMEA(Europe, the Middle East and Africa), drawing the majority of its
global revenue from EMEAaround $7.8 billion in 2005, up 19 percent from the
previous year. And hiring remains strong, too: According to a January 2006
BusinessWeek article, Accenture expects to hire more than 5,500 people in the U.S.,
and 35,000 overseas, during the year.
In its early years, Accenture was faced with industry skeptics, in addition to a
spectacularly bad economy during the latter half of 2001 and 2002. Fortunately, the firm,
led by Joe Forehand, launched its $1.7 billion IPO in July 2001, just before the market
soured. Another public offering completed in May 2002 raised an additional $93 million.
However, the companys attempt to profit from the venture capital boom also
suffered from poor timinga technology ventures unit, developed shortly after the
companys incorporation, was abruptly sold in March 2002 when its investments
turned out not to be worth the $500 million Accenture had staked in the project.
The organization had to cut about 2,000 staffers in 2001, about half of whom were
consultants. But the company tried to make its belt-tightening easier for its staffers,
introducing a voluntary FlexLeave program, which allowed consultants to take
sabbaticals of six to 12 months at 20 percent of their current pay and continued
benefits, with a guarantee that their jobs at Accenture would still be there upon their
return. Though the organization trimmed its ranks further in September 2002 and
March 2003, most of these cuts affected mid- to high-level managers. The job
thinning was handled by regional managers, and recruitment continued apace. By
2003, Accenture was in the black again, adding employees at an impressive rate.
Around 20,000 staffers joined the company between 2003 and 2004.
Forehand in the background
Forehand, who was named CEO in 1999, is credited with steady leadership during
his tenure, which included orchestrating the successful conclusion of the companys
arbitration with Andersen Worldwide, rebranding as Accenture, incorporation in
early 2001 and its IPO later that year. His efforts earned him recognition as Most
Influential Consultant of the year by Consulting Magazine in 2001. Since September
Accenture
2004, the company has been headed by 28-year Accenture/Andersen veteran William
Green, with Forehand still in the executive suite as chairman. Over 18 months, Green
earned his stripes, and in early 2006, the company announced that he would take on
the chairman position as well, upon the retirement of Forehand in August 2006.
Aggressive Green
Green has made a name for himself with his aggressive approach to growing the
Accenture brand and business. According to a November 2004 BusinessWeek article,
CEO Green uses an approach he calls high-performance business to secure valuable
contracts. If the company can build services so powerful and so exceptional that they
will be required to compete in any industry, from financial services to manufacturing,
making Accenture the must-have adviser for Corporate America, Green believes it
could enjoy double-digit earnings growth, the article said. Under some contracts, such
as that with British travel firm Thomas Cook, Accenture only receives a bonus if it
achieves five metrics, including cutting costsand according to BusinessWeek, around
30 percent of contracts may include these qualitative, pay-for-performance measures.
The article also indicated that Green is putting more responsibility on the shoulders of
consultants to meet these ambitious goals: Compensation used to be based on firm and
individual performance. Now its based on the firms performance, individual
performance and an individuals collaboration with others.
Ah, those island breezes
As a company with a fair amount of U.S. government contracts, Accentures choice
to incorporate in tax-friendly Bermuda (the company has no corporate headquarters)
has drawn some scrutiny from members of Congress and other observers. But while
critics argue that a company headquartered outside the U.S. shouldnt have access to
federal contracts, Accenture counters that it indeed pays all appropriate taxes in the
countries in which it generates revenue, including the U.S. Besides, the firm says,
with more than half of its 2,500 partners at the time of its IPO being non-U.S.
citizens, as a cultural matter it chose the neutral location of Bermuda for its parent
company. Accenture, which also owns an operating company in Luxembourg, has
managed to fend off a few congressional challenges to its status, and continues to
draw contracts from the public sector in the U.S. and elsewhere.
Accenture
On the border
In the federal sector, Accenture has made headlines by snagging some huge contracts
in a highly competitive playing field that includes other consulting giants such as
IBM, Lockheed Martin, BearingPoint and Booz Allen Hamilton. One of Accentures
most recent high-profile engagements is the 10-year contract it won in May 2004 for
work on US-VISIT, a border security program, for the U.S. Department of Homeland
Security. The value of the contract was projected by DHS to be worth as much as
$10 billion. Accenture, along with Smart Border Alliance partners Raytheon, The
Titan Corporation and SRA International, won the bid to develop and implement a
new entry and exit system governing the more than 400 points of entry to the U.S.
In March 2006, the firm scored a five-year, $79 million contract with the U.S. Air
Force to design, build and operate its new Defense Enterprise Accounting
Management System, a project aimed at transforming the Air Forces finance and
accounting methods. And in March 2006, the firm signed a three-year, $179 million
contract extension with the U.S. Department of Education for continued operation
and maintenance of the Office of Federal Student Aids Direct Loan and Pell Grant
origination and disbursement processing system, which Accenture developed. On the
state level, the firm has won several contracts in the human services and revenue
industries, including projects with the Nevada Department of Revenue to develop an
integrated tax system and with the Georgia Division of Family and Children Services
to implement a statewide automated child welfare information system.
Not big in Texas
Exposure to these public dollars often means increased scrutiny, and Accenture
sometimes finds itself under the microscope of public officials. In May 2006, Texas
State Comptroller Carole Keeton Strayhorn vowed to investigate a contract awarded
to Accenture, which leads a consortium of contractors responsible for processing the
applications of low-income Texans seeking state assistance. Strayhorn (who hoped
to challenge the states sitting governor later in the year) sounded the alarm as it
appeared the states welfare system was becoming increasingly privatized under the
contract. Critics were especially concerned about a sharp decline in the number of
children enrolled in Texas Childrens Health Insurance Program, as total enrollment
in the program reached its lowest numbers since CHIPs early stages five years
earlier. Accenture notes that the Texas Health and Human Services Commission
acknowledged that CHIP enrollment numbers began declining in November 2005,
when new eligibility policies were enacted, well before Accenture took over
processing responsibilities in January 2006.
Accenture
Elsewhere in the world, Indias Tea Board grumbled about software developed for an
electronic auction system by Accenture and IBM in May 2006. And across the pond,
the firm has run into difficulty with a contract for part of the program to overhaul the
British health care systems IT infrastructure, with general program delays, including
software delays from a prime subcontractor, leading to a provision against future loss
of around $450 million for Accenture. Member of Parliament Richard Bacon stated
in February 2006 that overall program delays exhibit all the classic signs of a huge
information technology failure, according to Crains Chicago Business.
Putting ad dollars to work
In May 2006, the firm launched a new media audit and optimization service in the
U.S., aimed at revolutionizing the way U.S. media buys are made and evaluated,
in order to help companies make the most of their advertising dollars. Accenture
collects advertising data from companies that subscribe to the service, which tend to
be among the largest advertisers. This information is then aggregated and analyzed
to give subscribers a benchmark against which they can compare media-buy pricing
and optimize their positioning for target audiences. From the outset, it was clear that
Accenture had a hitthe company signed up more than a dozen companies,
including Ford and Wal-Mart, for the service, with an initial client roster that
represents about 15 percent of the $45 billion national TV advertising market.
Buying businesses
Accenture also continues to grow its business through savvy acquisitions. In May
2006, the firm boosted its strategy capabilities even further with the acquisition of
Hagberg Consulting Group, a strategic consulting company specializing in the
assessment of organizational culture and its alignment with corporate strategy. That
same month, the company purchased Pecaso Limited, a tech consulting firm
specializing in SAP human capital management services. In April 2006, the company
completed the acquisition of key assets of Savista, an outsourcing firm with a focus
on middle-market companies in industries such as hospitality. Along with the
purchase, Accenture named Savista CEO Jeff Bizzack CEO of its Accenture BPO
Services division. And in December 2005, the company completed its purchase of
Media Audits, a company that measures returns on advertising investments, with
more than 400 clients in Europe and elsewhere around the world.
Accenture
Onward with outsourcing
Accenture isnt shy about its ambitions for outsourcing, which has grown from 24
percent of revenue in 2002 to nearly 40 percent currently. Accentures outsourcing
successes have been huge, including revenue accounting for 32 airlinesamong them
six of the worlds 10 largestand finance and accounting services in 37 languages to
client operations in more than 49 countries. Recent notable outsourcing scores include
a contract with Crestline Hotels & Resorts, inked in May 2006, to provide HR, payroll,
and finance and accounting services; a $575 million human resources outsourcing
contract with telecom giant BT (February 2005); an extended IT outsourcing contract
with Caixa Catalunya, Spains third-largest savings bank, valued at more than $290
million (January 2005); and a $142 million contract to handle publishing, printing and
distribution of testing materials for Educational Testing Service (ETS), the worlds
largest private educational measurement organization (November 2004).
Developing outsourcing strength requires a big presence in India, and Accenture has
followed throughheadcount has exploded in the region, from 4,300 in 2003 to
11,000 in 2004 and 16,000 in 2005. Accenture also boasts a unique approach to
recruiting in India, emphasizing progressive policies that encourage female
employment and work to combat discrimination and harassment. According to
Business Line, as of March 2005, about 25 percent of Accentures 11,000 employees
in India were women, and the firm reportedly promotes flexible options like day care
centers and home office setups.
AJanuary 2006 article in BusinessWeek touched on Accentures ambitions elsewhere
in the world, noting that the firm is beefing up in Central Europe and Brazil, as the
outsourcing industry scrambles to find the next Bangalore. In May 2006, the firm
opened a new delivery center in Warsaw designed to provide business process
outsourcing (BPO) services in finance and accounting, supply chain management and
human resources. The center is set to employ up to 1,000 highly skilled professionals
speaking more than a dozen European languages. Elsewhere in the rapidly growing
Eastern European region, Accenture operates delivery centers in Prague, Bratislava
and Riga.
Eyeing Asia
Accenture sees a big market for its consulting, technology and outsourcing services
in the rapidly growing Asian sector. Seeing China as its big growth leader, the
company has stepped up to help many of the countrys state-owned businesses
modernize their processes, including major clients like the Bank of China and
Accenture
Chinas four major telecom carriers. The company has worked with the Shanghai
Stock Exchange on developing one of the worlds most powerful trading systems,
which can handle an array of financial products, including options and index futures.
And in September 2005, Accenture was tapped to help Koreas Dongbu Insurance
enhance its accounting and financial management operation by implementing an
enterprise resource planning system and providing change management services.
Surveying the field
Accenture steadily produces surveys, studies and reports covering global and
regional issues. Recent research includes a widely cited May 2006 report showing
that the most successful government agencies worldwide are reinventing their
customer service delivery programs to put them on par with the best of their private
sector counterparts; an April 2006 study arguing that nonprofit organizations would
benefit from adopting some of the for-profit worlds basic business practices related
to operational efficiency; and a March 2006 survey indicating that female business
executives around the world still feel they face a glass ceiling. The firms
consultants also publish popular business books, such as the 2006 CFO Insights:
Delivering High Performance. Penned by Accenture execs Michael Sutcliff and
Michael Donnellan, along with other Accenture consultants, the book argues for a
strong correlation between a high-performance business and the mastery of a specific
set of finance capabilities.
Wowing em with high-tech
Accenture also keeps its name in the news with technological innovations, such as
the headline-grabbing persuasive mirror, introduced by the firms technology labs
in May 2006. The device, designed to encourage a healthier lifestyle, is built like a
standard bathroom mirror. Embedded within the display is an array of technologies,
including cameras and software, which analyzes a users behavior, including visits to
the refrigerator, treadmill usage and time spent vegging on the couch. Once the
software analyzes this input, the device can show users a reflection of what they
will look like if present behaviors continue. In the future, the device may be
configured to show the effects of other unhealthy habits, including smoking, drinking
and even spending too much time in the sun. Another company innovation, the
Accenture Interactive Network, was unveiled at Chicagos OHare International
Airport in May 2006. On a giant screen, users can get access to the latest news,
weather and sports, with an interface that lets them decide what to watch.
Accenture
Hands around the world
Around the world, Accenture invests heavily in corporate citizenship. In 2003, the
company founded the Accenture Corporate Citizenship Council to focus its charitable
activities. Accenture employees have worked on projects including an HIV clinic for
children in South Africa; the Special Olympics World Summer Games in Ireland;
business training for young Nigerian professionals; web site development for
teachers in Brazil; and school improvement projects in Philadelphia.
Corporate kudos
The companys reputation as an employer is also stellar. In 2006, the company earned
the Minority Corporate Counsel Associations Employer of Choice Award, recognizing
its commitment to diversity, particularly within the legal division. Accentures efforts
on behalf of women are also recognized, and Working Mother magazine has recognized
Accenture for three years running as one of the 100 Best Companies for Working
Mothers. Each year, Accenture staffers around the world recognize International
Womens Day with a series of events. In 2006, events in 20 countries included
discussions with leading figures such as Dr. Mae Jemison, the first African-American
woman in space, and Dina Dublon, former chief financial officer of JPMorgan Chase.
GETTING HIRED
Nationwide campus recruiting
The company has large-scale recruiting efforts all over the country. The University
of Illinois at Urbana-Champaign, Baylor, Cal Poly, Texas A&M and Northwestern
are among the schools where Accenture sends representatives. One source
comments, They dont command degrees from the best universities, but everyone is
bright enough to know whats going on in consulting, the job market and in
business. In addition to campus recruiting, the company also occasionally recruits
at career fairsits web site gives a schedule of recruiting events.
Extensive but worthwhile
The hiring process is described by employees as extensive but worthwhile.
Candidates are given an offer after three or four rounds of interviews. One consultant
gives details: The first round is HR calling to screen candidates through the phone.
Key: HR wants to know how well you know the company and why you think it fits
Accenture
your career goals. The second round [is a] manager interview. Behavioral questions
are asked to see what experience you bring to the table, why you want to join, how
you deal with issues that concern team and management. Third round [is a] manager
and [senior executive] interview. If you have made it this far, youve got a good
chance of getting in. The purpose of this interview is, again, to see if there is a fit.
Questions will be similar to round two, but [there will] be more questions you have
from the managers and partners. Insiders report that salary and offer decisions are
made by a committee after the third round of interviews. Sometimes a fourth-round
interview with [senior executives] may take place to confirm the offer decision. A
source clarifies, The fourth round is basically [a senior executive] asking you about
your career ambitions, what you know about Accenture and what you expect. Its
pretty candid and they tell you straight up that you wont be saving the world.
How would you handle it?
Most interview questions are behavioral or situational, insiders report. Questions
included standard questions about examples of leadership, and questions about how
one would solve inter-team issues (in the past, present or future.) The interview
included a lot of situational questions. How would you do this? How would you solve
this type of problem (outline your steps aloud), a source says. One associate gives
helpful advice to candidates, saying, Things to remember: stay positive, stay
enthusiastic, argue why you think Accenture fits your career goals and make them
believe that this is what you want. Also, be friendly to the greeterstheir comments
matter.
The finer points
Several factors influence the details of an offer extended to a candidate, were told.
The interesting thing about Accenture is how analysts offers are generated. An
initial offer is usually based on a couple of points: The university that you attended,
degree received, experience and how well you interviewed. For analysts, I have
heard of salaries as low as $33,000 in some of the smaller offices and as much as
$60,000 if youve graduated from an Ivy League school with a highly marketable
degree and you live in San Francisco or New York, a consultant divulges. Several
insiders note that for experienced hires looking to make a lateral move, Accentures
not the best place to be. Notes a manager, Usually, even with experience, you are
brought in at a lower level than you might be elsewhere.
Accenture
OUR SURVEY SAYS
Insta-bond
Though the giant size of Accenture might make some consultants feel as if you are
really a number, most insiders maintain that working for a firm this huge has its
advantages. For one, theres an immediate rapport among co-workers outside the
workplace. Asource raves, Seems like everywhere you go, youll meet an Accenture
employee. You really meet a lot of people and have an instant bond with them. Even at
bars! And an analyst in New York states, Youll probably know five other people
working at Accenture from outside of work just because the firm is so large.
Defining teams
Due to the size of the firm, there is no one clear-cut way to label the culture at Accenture.
One recurrent theme among sources is the team-centered atmosphere. Accenture has a
very team-oriented and professional performance-based culture, comments an insider,
and as such, associates claim, the culture largely is determined by each project and its
team. Says one consultant, The morale overall is positive, although some individual
projects can be quite discouraging. Another consultant comments, It really depends
on the project you get staffed on. Could be a nightmare or could be awesome. And a
source in New York concurs, Working at Accenture is very diverse. Some people have
outstanding opinions, others have miserable experiences. It all depends on the project
you are staffed on and the people on your projects.
Cliquish and collegiate
Insiders give mixed reviews to their co-workers. One analyst remarks that his
colleagues are very intelligent, hardworking, outgoing self-starters. Another
associate feels, Some people are too full of themselves but the majority are very down-
to-earth and try to help you as much as they can, and a colleague claims, In general,
employees are all cool and somewhat sociable. But another source contends that the
overall culture is cutthroat, [one of] self-promotion, with very long hours; [there are]
bright people, but theyre sometimes too impulsive and reckless. Several consultants
also claim there is a cliquish feel at the firm. An insider quips that its very much
like a fraternity, and adds, People form groups and stick to one another, which
reminds me of high school. Collegiate? Yes, since most people have just graduated
from college. AWest Coast source agrees, The employee morale is high, although,
since the firm is so big, there are cliques and a different sense of morale.
Accenture
Responsive and timely
Though opinions on colleagues differ, supervisors earn positive ratings from
employees. An analyst recalls, On several occasions, I have had to reach out to
consultants and managers working in other areas of the firm for information, and I
always receive timely feedback. Another source comments, Contact with senior
management is very, very easy. Consultants also report gaining lots of exposure to
client management, though maybe not right off the bat. As you progress in your
career, you do get exposure to senior VPs, VPs and C-level executives, offers a
source.
Moving toward tech
Accenture insiders tell us that their culture has been changing as the company has
moved away from strategy towards implementation. The focus of work has
changed dramatically in the last five years with much more focus on long-term
outsourcing arrangements, as opposed to the traditional consulting projects, although
they still do exist, claims a consultant. And a colleague concurs, saying, Overall,
Accenture is moving towards technology and systems implementations. The up-and-
coming workforce seems to be primarily [comprised of] engineers instead of business
people. Most/all of the projects are tech-oriented, so dont expect much strategic
consulting work. As a result of this transition, he continues, Employee morale is
mixed. There are the engineers who love the job and work, and the business people
who want to get into strategy.
Some consultants suggest that the focus on implementation has had a positive impact
on the company. According to one source, Accentures edge is that it can also do
implementation and its available resources for some solutions are greater than other
strategy firms. But, as a co-worker warns, IT consulting versus other types (i.e.,
tax, strategy, finance) is a different animal. [Clients] need more manpower than
brainpower. Their processes are already created for you and the best practice is to
follow the process, not really question it. So if you like to think inside the box, IT
consulting is the place for you.
Phase-dependent
There is almost no average workweek at this company, with hours varying widely with
projects. A manager explains, Hours can vary widely depending on the client or
projecteverything from normal hours to excessive overtime every week. During
different phases of an engagement, hours tend to fluctuate widely. Hours are like
Accenture
taking finals in college, there is downtime and there is crunch time when a deadline
approaches, a source remarks. The nature of the work tends to evolve over the course
of the project from a relatively normal 40-hour week situation during the requirements
gathering and design phases, to a grueling schedule of nonstop work during the system
test and conversion phases, notes a consultant. And a colleague echoes, For typical
system implementation projects, it can get quite hectic when the project goes live.
Hours overload
However, most consultants complain that the job requires far too many hours.
Associates say 50- to 70-hour weeks are the norm, and one adds, If there are
deadlines, I have pulled all-nighters before. And the hours dont seem to get much
better with tenure: Asenior manager who has been with the company for nine years
claims 65 hours as the average workweek and adds that hes still pulling all-nighters
three to four times per year.
Several sources feel that the long hours are more tolerable at some times than at
others. An analyst frankly states, Consulting hours are not very good or stable. If
youre learning a lot, its more bearable than when youre being a grunt, thus it
depends on your project. If you want better hours you can certainly find projects that
will accommodate, but generally they dont like you leaving before 7 p.m. And
another consultant admits, Its a demanding work environment, but good
performance gets rewarded.
Inconsistent travel
Consultants indicate that the amount of travel required at Accenture is different for each
project, but overall its not so bad. One insider explains, It depends on your workforce
and type of work. Accenture is very flexible in respecting your wishes to travel or not
to travel. Explains a manager, It depends on client requirements. Some clients
require you to work at their site, but otherwise we work at the home office. Another
associate reports, [Over the] last two years, I have been staffed on local engagements
with little regular travel. For the previous five years, I traveled every weekwork life
was difficult as travel was exhausting. Sources are also pleased that when not staffed
at a client, the firm allows the flexibility to work at home.
With favorable travel requirements, consultants are displeased with what they
consider an unfavorable travel expense policy. If we travel, no matter how far away,
we have to fly coach (if you are assigned to India and have to catch a redeye flight,
I can assure you [it] is not that exciting). Acolleague adds, The worst part is that
Accenture
any project within two-and-a-half hours from the office is considered in town, so no
hotel or per diems are provided.
Work comes first
Accenture insiders say work/life balance is not a strength of the firm. One reason for
this, sources claim, is that there is always pressure to work more hours. One of the
things I have learned (and continue to learn) the hard way is that Accenture will take
as much out of you as you allow. If youre working 50 hours a week, they will ask
for 60, states an associate. An analyst declares, Work tends to come first,
especially when there are deadlines present. When it comes to finding a balance,
insiders agree that its up to the individual to set limits. Aconsultant comments, You
have to set your own boundaries and find a way to balance your own priorities
against those of the firm.
On a positive note, consultants report that weekend work isnt necessarily a given. A
manager asserts, The work/life balance really depends on your project, but typical
projects are Monday through Thursday and work from home on Fridays. However,
you work your butt off at on the weekdays.
Analyst boot camp
According to sources, there is a fair amount of official training for new analysts at
the company. One associate gives the itinerary: The first week analysts are enrolled
in an in-office training session called the New Joiners Orientation, where you are
immersed into the technologies the firm relies upon and standard policies within the
firm. The following two weeks is called the Solutions Delivery Fundamental course.
This is a step-by-step training session, where the new hires work together to build a
computer program matching up with a training module. For the new hires that arent
technically grounded, it may be a bit of a surprise but it isnt too difficult.
But some sources claim training isnt what it should be. One Atlanta insider weighs
in, Working at Accenture provides new hires with training that seems to be more
fluff than actual substance; and an analyst remarks, Training has diminished quite
a bit. St. Charles boot camp used to be six weeks; now it is two. Initial training can
be a time to socialize, rather than to focus on learning new skills. According to an
insider, This is a great time to meet new analysts from around the worlds offices.
The reality is you wont be getting much sleep, as there is plenty of networking going
on during the classes and during after hours.
Accenture
Beyond the analyst level training, there is hardly any continual training, sources
report. The courses offered are mostly computer-based training, but with several
courses offered in a classroom environment. On occasion we can get a course offered
by technology providers, and some certification, such as Java, notes a consultant.
Rigid promotion system
Advancement at Accenture is described as regimented and slow. The promotion
process is very rigid, which can be frustrating, and at times can be too political for
my liking, remarks a consultant. With that said, the source continues, the process
does make you strive to work your best, and to improve your overall performance.
An associate complains, The career path is not as fast as in other consulting firms.
It usually takes two to three years to move from analyst to consultant, three to four
to move from consultant to manager, three to five from manager to senior manager,
and five-plus years from senior manager to senior executive.
Measuring up
Some insiders are down on the annual forced rating system at Accenture. A
Chicago-based consultant explains, Accenture has a very standardized system for
advancement/promotion. They scale and rate you annually (September to October)
with everyone else at your level, even if you have done a different type of work.
Then there is a forced bell curve to determine who gets promoted and who does not
(based on business demand, ability to pay and who likes you.) Another source
points out, With so many employees and a strict curve, you must stand out to get
promoted. Sometimes people with exceptional ratings will get shafted just because
there are so many other exceptionally rated peers.
The consensus is that advancement is strictly up-or-out at the firm. Accenture has
an official up-or-out policy. Enforcement of that policy varies due to depth of bench
strength, demand and scarcity of those skills in the external labor force.
Schmoozing gets you far
Insiders also declare that it takes more than hard work to advance at the firm. Part of the
system relies on an ability to build relationships with people who will support you when
your name comes up for promotion. One Atlanta source says, Working hard is good, but
if you are popular because you can schmooze better [and] know how to hide the realistic
picture, it is better. One consultant is down on the system: The company is certainly
the opposite of a meritocracy, with advancement more dependent on who you know,
Accenture
rather than what you know. Although hard work, diligence and achievement can certainly
reap the rewards you are looking for, they arent requisite for promotion and successful
annual contribution assessments. But another sees the long-term benefit to building
relationships: Networking is very important to your success within the company, which
is not a bad thing, as this means that you are also kept well informed on how different
markets and organizations are performing, which is not only interesting but also makes
you more marketable when trying to get yourself assigned. As one consultant succinctly
puts it, promotion at Accenture is up-or-out, with extensive favoritism.
Anumber of associates say they arent comfortable with the self-promotion required to
earn high marks in annual reviews. One source sharply remarks that too much time is
spent competing with your fellow colleagues for the promotion. Ajunior consultant
claims that the approach to performance rating creates tension and animosity, while
another analyst grumbles, Your promotion really depends on how good you are in
keeping your boss happy and your schmoozing abilities. Shy people must die.
You are your own best agent
Though counselors are assigned to oversee consultants career tracks, insiders say
that winning a promotion takes individual effort. [The] culture is very competitive.
You must have control over your own careerno one will hold your hand or look out
for you unless you take the initiative, notes one source. A colleague advises, For
career progression, although they claim you have a career counselor to guide you,
youre pretty much on your own. You better network a lot, know some highly placed
people and make your name known across the office. Not everyone feels so
negative about the way the promotion system works. One insider notes that a
positive attitude will go far: As long as you do your work and also maintain good
relations with upper management, youll be in good shape. You have to be willing to
do all the grunt work given and still look upbeat about it.
A bit skimpy
The majority of consultants express that salaries at Accenture could use a boost. My
compensation is at least 30 to 40 percent lower than the equivalent in other consulting
firms, comments an associate, and another source confirms, I received roughly
$5,000 to $10,000 less than my classmates and incoming recruits from other colleges.
One insider points out that compensation is still a big issue inside Accenture.
However, some employees feel there is a worthwhile trade-off between working for a
Accenture
big-name firm and compensation. An analyst comments, In general, I think Accenture
is the skimpiest on salaries but they know the name will look good on your resume.
Bonuses at the firm range between 5 to 10 percent of annual salary and they are
calculated according to individual performance: Bonuses depend on year-end
ratings of: 1) needs improvement; 2) meets expectations; 3) outstanding/greatly
exceeds expectations; or 4) exceptional, explains a consultant.
Big-time benefits
Accentures big-company benefits get positive reviews from sources. For starters,
employees appreciate the stock options the firm provides: We have the option to buy
Accenture stocks 15 percent cheaper, explains one insider. As part of the
compensation package, the firm also matches 401(k) contributions after one year
with the firm, vested after two years. Consultants also rave about extras like paid
time off for community activities and gym membership discounts, and the huge
discount database for personal shoppingincluding Tiffany, Ford and all cell
carriers. Hands down, the favorite perk among employees seems to be 25 days
paid time off per year [with the] option to roll over up to 30 days each year.
Still, perks at Accenture arent what they used to be, according to an insider who
recalls, With the IPO and post-Arthur Anderson, you dont get the huge perks and
lavish parties 10 years back. Everything is much more moderated now and even
skimpy at times. Sources say the health benefits, however, are just average,
noting that coverage is 80 percent, up to a certain amount each year.
Macho culture talks of balance
Although Accenture is made up of mostly males, insiders claim that the firm is
very proactive in seeking gender balance. ABoston consultant remarks, The firm
is definitely making this a priority. There is a tremendous womens networking
and support program, according to a colleague. And a manager adds, We actually
have very organized womens initiatives in most aspects of the company.
Others feel that more efforts should be made to hire and retain women. Challenges
abound still for working moms in consulting, one insider relates, adding, I was able to
negotiate reduced travel and on-site work for a working mom on my primary
engagement. Clients were not terribly receptive, nor was an Accenture senior executive,
but the arrangement did get approved. A frustrated consultant states, Having
frequently worked on projects where Im the only woman, I have to admit that the advice
Accenture
is nice, but it can still be a hell of a day-to-day effort getting men in the firm to stop chest-
beating and posturing and start focusing on achieving the outcome were looking for on
the ground. And another colleague maintains that despite all the talk about gender
balance, its a macho cultureonly aggressive women survive.
Five diversity groups
Accenture earns praise from employees for its minority diversity efforts. Says a
manager, Diversity is very important at Accenture. There are five diversity groups:
Asian American, African-American, Latino, women and gay/lesbian. These diversity
groups are really present (I have had the opportunity to work with at least one of their
members). One insider comments, The firm still has some work to do in the diversity
(underrepresented minorities) front, but overall it is good. On that note, the firm
sponsors programs that foster a minority-friendly atmosphere, says a sourceThe firm
makes a sincere effort. And a colleague adds, [There is a] tremendous minority
networking and support programbaked into every community of practice.
Respect for all
Most insiders say the firm is doing an excellent job in diversity with respect to gays
and lesbians. We started a networking and support program for this stakeholder
population last year, says a consultant. And another colleague adds, The firm [is]
sponsoring gay pride parades in different cities. One source witnesses, I am gay
and I feel very comfortable and respected at Accenture. It has never been an issue
for me or any of my gay co-workers.
A generous bunch
Accenture is heavily involved in charities in the local communities of its offices.
Habitat for Humanity, United Way and Junior Achievement are a few of the
organizations where employees donate their time. An associate says his office has
given support for recent major hurricanes and tsunami events, while another
insider notes, There is also the possibility to work in pro bono projects in developing
countries. In addition, the firm sponsors the Accenture Triathlon, which takes
place annually in Chicago, as well as marathons and triathlons in several cities,
including New York and San Francisco. The events, which are open to the public,
raise money for the Leukemia and Lymphoma Society.
Accenture
56 Top Gallant Road
Stamford, CT 06904
Phone: (203) 964-0096
www.gartner.com
LOCATIONS
Stamford, CT (HQ)
PRACTICE AREAS
Consulting Services
Benchmarking Solutions Critical
Program Management Go-to-
Market Strategies Performance
Optimization Public Sector
Solutions Risk Management
Sourcing Execution & Management
Strategy & Architecture
THE STATS
Ticker Symbol: IT (NYSE)
Chairman & CEO: Gene Hall
UPPERS
Writing, writing, writing
Flexible work arrangements
DOWNERS
Very competitive environment
Compensation is less than ideal
EMPLOYMENT CONTACT
www.gartner.com/gartner_careers/ca
reers.jsp
Gartner, Inc.
V A U L T
P R E S T I G E
R A N K I N G
16
THE BUZZ
Dominates technology
Research hub
Smoke sellers
Should stick to research;
underwhelming when directly
involved with client work
THE SCOOP
Researchand much more
As one of the most respected names in research, Gartner is well known for tracking
trends and anointing leaders, particularly in the tech market. But the firm also
features a healthy consulting division, which brought in $301 million of the firms
$989 million in revenue in 2005. Gartner is divided into four branches: Gartner
Research, Gartner Executive Programs, Gartner Consulting and Gartner Events.
Based in Connecticut, the firm operates out of 75 countries, serving 66 percent of the
Fortune 1000 and 80 percent of the Global 500 among its 45,000 clients.
As a whole, Gartner employs over 3,700 staffers worldwideabout 650 analysts and 550
consultants are part of that number. The firm has seen a few ups and downs since its
founding in 1979 by Gideon Gartner. Then known as Gartner Group, the company went
public in 1986. After it transferred to the New York Stock Exchange in 1998, Gartner
surged forward, adding offices in Europe, Asia, Latin America, Africa and the Middle East.
Global Gartner
But the firm had to scale back its consulting and measurement services in most of Latin
America, except for Mexico, in March 2004, spinning the move as a renewed focus on
its information technology research services, executive programs and events for the Latin
America region. Still, Gartner continued to expand elsewhere, notably in Romania,
Poland, Hungary and the Czech Republic. China has been a strong area for Gartner as a
whole, and as the firm has opened research offices in Beijing and Shanghai over the past
few years. In September 2005, Gartner established a wholly foreign owned enterprise
(WFOE) based in Beijing in order to accelerate its growth in China. According to the
firm, the WFOE paves the way for Gartner to provide a broader range of products and
services to Chinese companies and multinational clients operating in the country.
Staffing blips
Along with the expansion and contraction in business, the firms headcount has
suffered some blips in the past few years. After posting some layoffs in 2003,
Gartner reached a high of 3,900 employees in 2004. By 2006, however, that number
was back down to around 3,700. Fiscal growth has remained modestly positive,
howeverthe $989 million in revenue for 2005 is up from $894 million the previous
year. And Gartner is holding steady with executive leadership installed in 2004.
Gene Hall took on the CEO position from Michael Fleischer in April of that year and,
Gartner, Inc.
that same month, Gartner Consulting got a new president, Bob Patton, formerly a
member of senior management at Cap Gemini Ernst & Young.
A META acquisition
Gartner has grown primarily through strategic acquisitions. The most recent buy for
the firm was its April 2005 acquisition of METAGroup, a publicly traded IT research
and technology firm, for around $168 million. The acquisition of this smaller rival
brought 100 META sales staffers into the Gartner fold, and boosted the firms
presence in international target markets, including the U.K. and Germany. It also
expanded Gartners industry focus to energy and utilities, insurance and government,
as well as new organizational roles such as enterprise architecture. Gartner planned
to retire the META Group brand. As part of the integration, Gartner also said the
expanded companys analysts would apply rigorous research review processes to
attempt to reconcile conflicting positions among Gartner and METAanalysts. META
Group, with 52 locations worldwide, earned $122 million in revenue in 2003.
Emphasis on IT
Gartners consultants offer a range of services, including benchmarking solutions,
critical program management, go-to-market strategies, performance optimization, public
sector solutions, risk management, sourcing execution and management, and strategy
and architecture. Though the firm isnt as well known in the government sector as some
rivals, it offers a host of IT-leaning solutions, mainly for state and local agencies.
Drawing on the brain trust
And Gartners consulting wing draws on the powerful resources of the firms
research division to offer customized engagements with an emphasis on outsourcing,
IT management and the like. Gartner consultants serve as independent advisors on
technology assessment and procurement, project development, measurement and
technology management such as total cost of ownership, CRM, IT spending
recommendations and hundreds of customized programs. However, the division
eschews offering any IT implementation services, unlike competitors, as it worries
this might compromise its independence and objectivity. In November 2005, the
consulting division expanded its IT outsourcing benchmarking solutions capabilities,
introducing an enhanced methodology that allows companies to compare their
services contracts with similar outsourced contracts in the marketplace. The service,
based on a four-point proprietary methodology, allows clients to make normalized
comparisons regardless of their outsourced contract size.
Gartner, Inc.
Security gurus
Lately, Gartners name has appeared often in the news as the firm churns out research
and reports on a very hot topicinformation security. In June 2006, the firm argued
that thanks to increasing thefts of personal data from companies and government
agencies, organizations should no longer rely solely on Social Security numbers as
proof of identity. Instead, Gartner analysts insisted, enterprises should only use a
persons SSN as part of a larger identity score made up of several pieces of
information. Gartners expertise is so widely recognized in this area that analyst and
VPAvivah Litan was invited to testify at congressional oversight hearings after it was
discovered that a laptop containing millions of veterans personal records had been
stolen from a Veterans Affairs employees home. Other research by Gartner analysts
covers topics such as outsourcing trends, along with demand and development news
on specific technologies from smart phones to semiconductors.
Big in blogging
Gartners publication expertise isnt limited to its highly sought-after white papers. The
firm took a leap into the 21st century by establishing a host of business blogs in 2002,
covering topics such as the impact of environmental threats like Hurricane Katrina and
SARS, and other Gartner research topics including communications, outsourcing and
government. In May 2006, Gartner scored big at the Webby Peoples Voice Award for
Best Business Blog. Referred to as the Oscars of the Internet by The New York Times,
the Webbies honor excellence in web design, creativity, usability and functionality.
GETTING HIRED
The Gartner Inquisition
Gartners career web site is sorted into three geographical areas: The Americas;
Europe, Middle East, and Africa; and Asia-Pacific. Once prospects select the region
theyre interested in, they have the option of searching job openings or submitting
their resume. The firm does not accept resumes via fax or e-mail.
Gartner has much pride in its interview process, says one source. Candidates
whose resumes catch recruiters eyes normally have two to three phone screening
interviews and are invited to the day-long group in the hallowed halls of the
headquarters in Stamford, Connecticut. There, candidates have about three to five
one-on-one interviews with other analysts. Next, explains another insider, Youll be
Gartner, Inc.
put in a cube with a PC and theyll bring up Microsoft Word. There, for one hour,
youll write a research note. This insider says that some analyst groups assign topics
for the research notes, while others let you pick, so be prepared for either. Atip: Be
sure to think through an outline in your mind and be prepared to writecomplete
with research detail/statistics/etc. to support the position in your report. Be sure its
no more than about 4,500 characters. Yes, characters. Brevity is key.
After note writing, Youll be put in a room with four to eight analysts who will read
your research and then will proceed to shred you to pieces. According to one
consultant, Most analysts doing group take pride in trying to one-up each other in
trying to make the candidate fall at their feet. One insider advises, Its OK if you
dont know everything, but trying to fake that you do and answering questions that
come up in the group interview can be deadly. For those who pass through the
interview gauntlet unscathedwhich one source says can feel like the Spanish
Inquisitionit can take anywhere from one to six weeks to get an offer.
OUR SURVEY SAYS
Work your heart out
Those who land a spot at Gartner will enjoy themselves, but work hard. The job is
fun, but highly, highly competitive, says one source. Regarding, analyst positions
at the firm, one insider who says the job at Gartner is the best Ive ever had, and it
allows for use of individuality, creativity and analytical ability. Acolleague agrees:
The work itself is great [and] the clients for the most part are great. And as another
insider states, The analyst job is great if you can manage to carve out an area, stay
focused and do your job. In addition, Gartner employees enjoy the responsibility
awarded to them early on in their careers. Says one associate, Be prepared to do
tons of speaking at their conferencessymposia and theme conferences. Your
presentations will be done 100 percent by you.
In such a work-driven atmosphere, Gartner consultants also describe an environment
rife with competition. According to an insider, The place can be nasty and
competitive! Depending on the research group youre a part of, the backstabbing and
competition and setups can be devastating to your career at this company.
Gartner, Inc.
Strut your stuff
Those interested in advancement should be prepared to promote yourself and every
single tiny accomplishment, says an insider. Be sure your boss knows of these or
you wont get a fair shake and you wont get promoted. Youll need to push every
step of the way. But, warns one insider, Dont try to advance too far up the totem
pole. You get nothing for it except title. Pay raises are lean and the company in
general is cheap. You get tons of admin work, in addition to your regular job, and
there are few, if any, tools to help with that stuff.
Making the cut
Insiders share some of their favorite Gartner perks: The firm provides education
reimbursement, access to great research and attendance of conferences, and a 401(k)
plan. In addition, Vacation, sick time, etc., are rolled into PTO, says one source. As
such, one insider continues, There is no way to track vacation, sick time, etc. So
essentially, you can be out and nobody will know/care as long as you do you work.
However, recent cost-cutting efforts have contributed to very low morale at the firm,
consultants report. Gene Hall, our somewhat new CEO, is a penny-pincher, one
source claims. Our on-campus store has been closed; fancy coffee makers have been
reduced to cheap pots with one type of coffee provided; vending machines have been
taken away; and the cafeteria now offers half the variety it once did. And according
to a colleague, Stock options are meager. As far as bonuses go, for analysts, there
typically is a 20 percent bonus target, although one source says, Bonus targets in
most years are just thattargets that are never fully paid out. One insider offers a tip:
Get the highest base salary you can on your way in. Raises are pathetic.
Gartner globetrotters
Gartner does provide great opportunity for worldwide travel if youre a sought after
analyst. One source says, There are tons of speaking/presentation opportunities. A
consultant who works 50 to 70 hours per week reports traveling five days a week, and
typically works on four-month long projects. For analysts who are not as in demand,
travel can be limited to one-day consulting jobs. I know some analysts who travel
100,000-plus miles per year and others who barely get on planes, says one source. The
firm also reportedly offers flexible work arrangements and puts little stock in face time.
Says one insider, Consultants can work from home or anywhere in the world, for that
matter. As long as you do the work, nobody cares where you do it from.
Gartner, Inc.
HighLight Towers
Mies-van-der-Rohe-Strae 6
80807 Munich
Germany
Phone: +49 89 9230-0
Fax: +49 89 9230-8202
www.rolandberger.com
LOCATIONS
New York, NY (US HQ)
Munich (HQ)
PRACTICE AREAS
Corporate Development
Information Management
Marketing & Sales
Operations Strategy
Restructuring & Corporate Finance
THE STATS
Chief Executive Officer: Dr. Burkhard
Schwenker
2005 Revenue: 550 million
UPPERS
Challenging assignments and
superb market position (especially
Europe and Asia)
Great career-accelerator!
Possibility to choose the field you
want to work in due to the
competence center organization
DOWNERS
Difficult work/life balance
Not enough focus on content
development
No office day on Friday
EMPLOYMENT CONTACT
www.rolandberger.com/career/en/
html/fs3.html
Roland Berger Strategy
Consultants
V A U L T
P R E S T I G E
R A N K I N G
17
THE BUZZ
Very influenced by German
culture
Huge in Europe
Not very friendly culture
Stuck on themselves
THE SCOOP
German giant
One of the largest strategy consultancies in Europe, Roland Berger reflects the fierce
ambitions and business savvy of its eponymous founder, who started the one-man
Roland Berger International Marketing Consultants in 1967 at age 30. Thanks to a
successful merger deal with the firms first client, by 1973, Roland Bergers company
was the third-largest consultancy in Germany. By 1987, the firms success had
attracted the attention of Deutsche Bank, which purchased a majority of shares,
leaving decision-making power in the hands of Berger and his partners. The partners
orchestrated a buyout of the banks shares in 1998. Due to steady international
expansion, the consultancy has enjoyed an impressive growth rate of more than 17
percent per year.
Roland Berger Strategy Consultants (as the firm is known today) was a late-comer to
the United States, opening offices in New York in 1995 and Detroit in 1998. These
days, the firm boasts more than 1,700 consultants in 32 offices worldwide. Based in
Munich, the firm is operated as an independent partnership, owned by more than 130
partners, and serving 30 percent of the Global 1000 and more than 40 percent of the
leading companies in Europe. Roland Bergers global Competence Centers,
organized along functional and industry lines, allow the firm to offer tailor-made
solutions helmed by interdisciplinary teams. Arranged by function, the firm provides
corporate development, information management, marketing and sales, operations
strategy, and restructuring and corporate finance. Industry competence centers
include automotive; energy and chemicals; consumer goods and retail; engineered
products and high-tech; financial services; infocom; pharma and health care; public
services; and transportation.
Herr Berger
As a firm, Roland Berger remains inextricably linked to the name and persona of its
founder, a well-known confidante of Germanys leading politicians and a powerful
figure in his country. Bergers influence in Germany is strong; hes a big proponent
of privatization, and the firm has been involved in the privatization of a number of
local, state and federal utilities and services. Bergers chummy relationships with
German statesmen, such as former chancellor Gerhard Schroeder, have raised
eyebrows in Germany, a country whose citizens are increasingly suspicious of the
convergence of business and politics. In recent years, competition has been heating
Roland Berger Strategy Consultants
up for the mantle of top consultancy in Germany, with hometown hero Roland Berger
ringing in a global revenue of $687 milliontrailing just behind the much-larger
McKinsey. AMay 2006 article in Consultant-News.com noted that the last German
election could have been characterized as the battle of the strategy consultants, as
Angela Merkels victorious CDU party tends to be more associated with McKinsey.
Berger has taken a backseat position at the firm since July 2003, when he moved to
the companys supervisory board and put control in the hands of an executive
committee made up of four members: Burkhard Schwenker, Antnio Bernardo,
Thomas Eichelmann and Martin Wittig. In 2004 Vincent Mercier, France, and Dirk
Reiter, Germany, were appointed to join the board as well. In October of that year,
the firm unanimously elected Schwenker as its CEO. Schwenker joined the firm in
1989, became partner in 1992 and a member of the executive committee in 1998.
Moving in the Middle East
In April 2006, the firm opened its first office in the Arab states, in Manama, the
capital of Bahrain. Having worked in the Arab region since the late 1990s, the firm
has served clients in Bahrain, Qatar and the Emirates. Before that, in September
2003, the firm opened an office in Zagreb, Croatia, an area it tapped for its growth
potential. The firms Amsterdam offices opened for business in 2002.
In 2005, the firm declared that growth is the buzzword in its Eastern and Central
European offices. The firm has set up four competence centers (specializing in
financial services, energy and chemicals, infocom and automotive) in the region, and
is actively looking to train junior consultants to work in offices in Romania, Poland,
Russia and other countries in the area. In Warsaw, where Roland Berger has a
centrally located office in the Metropolitan building, the firm has seen year-over-year
growth of 70 percent, even though it entered the Polish consulting market relatively
late. As the firm has decided to prioritize the region, it has focused on areas of
particular interest to Central and Eastern Europes burgeoning economies,
developing a special focus program for Russia.
Other growth areas for the firm include China and the U.S. In fact, the firm has said
that it believes China will be its most attractive market over the next 20 years. The
company currently has offices in Beijing and Shanghai and is considering opening a
third office. Although the company hasnt experienced as much growth in the U.S.
market, insiders report that Roland Berger has plans to beef up the number of
consultants it employs in the States.
European accolades
Roland Bergers consultancy has continued to enjoy a stellar reputation in Europe. In
October 2005, the firm was deemed as having the best reputation among all logistics
consultancies in Germany by market research firm Emnid, which conducted a
survey of 300 logistics managers on behalf of business magazine Logistik inside. In
2005, the firms executive magazine, think:act, launched in 2004, and won the Best
of Corporate Publishing (BCP) Award, beating out corporate magazines from
financial services, real estate and other consulting companies as one of Europes top
B2B publications.
In 2006, think:act received the Mercury Award, selected as the best consulting
magazine in a competition involving 940 corporate publications from 15 countries
in a competition hosted by the International Academy of Communications Arts and
Sciences in New York. The magazine, published three times a year in German,
English and Russian, focuses on key questions facing international managers.
The firm also publishes reams of studies and reports, such as a January 2006
published analysis of the steel industry in the United States. In September 2005, the
firm conducted a study on distressed debt in Germany, Austria and Switzerland, and
another that same month on branding and innovation in food retailing. Also in 2005,
the firm set out to highlight economic growth opportunities and success stories in
Europe with its Best of European Business competition, in partnership with the
Financial Times. The competition was held for a second time in August 2006 in
Switzerland. According to Roland Berger, while Europe is the largest market in the
world, it is in danger of lagging behind markets like the U.S. in terms of GDP. The
competition aims to showcase high-growth, innovative, profitable European
companies in each of Europes seven most important economies. Results of the
second competition will be discussed with leading European politicians in an
upcoming summit.
Boosting the numbers
Roland Berger has been on a recruiting kick lately, especially in Europe. In 2006, the
firm announced it was planning to hire a minimum of 150 new consultants in Austria,
Germany and Switzerland. University students, graduates and postgraduates are
often invited for workshops sponsored by the firm, allowing them first-hand
experience with Roland Bergers consultants and engagements. The firm held its
first workshop for bachelors-level students in Germany in June 2006, introducing 16
German students to life at Roland Berger through a two-day workshop. In April
2006, the firm turned its recruiting attention toward engineers with an interest in
business, announcing that it aimed to recruit up to 50 technical professionals in
Germany, Austria and Switzerland. Another workshop for interested candidates, held
in March 2006, focused on developing skills in crisis management for businesses.
And in October 2005, the firm announced its first-ever recruiting workshop
exclusively for natural scientists, aimed at cultivating a new batch of scientists with
business know-how to work on complex strategy engagements.
The firm also has taken steps to bring more women into the fold. In 2002, Roland
Berger launched the FORWARD initiative (For Women-Attracting, Retaining,
Developing) to encourage greater female participation in the firm. In January 2006,
the firm hosted a one-day workshop in Berlin for 30 selected female participants.
Women from a variety of academic backgrounds learned more about the consulting
life and how to market themselves in the field. In addition, Roland Berger is also
investing time and energy to set up events for MBAstudents at prestigious European
business schools. In April 2006, the Roland Berger International Case Competition
was conducted at IESE Business School in Barcelona. This event brought together
students from top-notch business schools around the world to compete for the best
case solution.
With a stellar reputation as an employer, Roland Berger shouldnt have too much
trouble attracting the talent it seeks. In June 2005, the firm became the first
consultancy to earn a Work and Family certificate from the Hertie Foundation, a
nonprofit organization, recognizing Roland Bergers family-friendly initiatives.
These include flexible working hours for consultants as well as telecommuting
options and day care assistance. The certificate was awarded after an intensive audit
by the foundation, which will monitor the firms work/life efforts in coming years.
Investing in education
In 1998, the firm established the Roland Berger Strategy Consultants Academic
Network, which teams consultants with thinkers at 15 universities. The firm also
sponsors the Roland Berger Chair for E-Business and Information Technology at the
French business school INSEAD, and the Internet-based Information Systems (IBIS)
chair at Munichs Technische Universitat. Roland Berger also encourages its
consultants to continue their education, sponsoring their PhD and MBAdegrees.
All new Roland Berger consultants participate in a two-week kickoff event at an
exclusive European location, involving training and social events with peers, partners
and external trainers. After that, the firm says new hires are immediately put to work
on a project. But theres still a fair amount of hand-holding from then on, as
mentoring is a key part of the learning process at the firm. According to the firm,
about 10 percent of its incoming new hire pool can expect to make it to partner, with
the average tenure of a Roland Berger consultant at around four or five years.
From arias to antiviolence
Roland Berger is a big proponent of community involvement and social change.
Culture and the arts are priorities for the firm. In June 2006, the firm announced a
new initiative with the Bavarian State Opera, the Young Leadership Program,
designed to offer up-and-coming executives a chance to experience managing a
major arts business. Roland Berger also created the Counterparts initiative. This
program supports cultural and educational projects in Central and Eastern Europe in
cooperation with the Goethe-Institut, and is currently funding projects in Croatia and
Poland. In both countries, the international strategy consultancy is involved in
cultural events as well as supporting public libraries in their efforts to expand their
collections. In this context, the firm announced its support for a new production of
Mozarts The Magic Flute in Warsaw.
In addition to this program, on an annual basis, Roland Berger staff in Munich
gathers for a day of volunteering. In 2005, the firms employees picked up a spade
instead of their laptop and pitched in to help build a playground outside a temporary
housing facility for asylum seekers. And during the 2006 World Cup in Germany,
Roland Berger invited youngsters from various childrens organizations in Munich
and Frankfurt to go to some of the games. Through its partnership in the STEP 21
program, the firm aims to promote basic democratic values in youth by bringing
young people together in Germany, Austria and Switzerland for events like
antiviolence seminars, theater troupes and anti-extremism campaigns.
GETTING HIRED
All in a days work
Roland Berger recruits at the top business schools within Europe, Asia and the
United States. Unfortunately, there are no specifics on which Stateside schools this
European-based firm hunts for talent. But with reports that the firm hires from such
prestigious overseas institutions such as INSEAD, Said, SDA Bocconi and London
Business School, dont expect to see Roland Berger stray too far from the Ivies and
other hallowed grad programs. To help make first contact, check out the firms web
site, which lists job opportunities by location.
Although the interview process will vary depending on which particular office you
apply to, there are several reports that the company wastes little time, often
completing the hiring process in one day. One senior consultant with the company
says, There are three different interviews in the morning. If you make it, you have
to prepare a presentation, with a team of three, which has to be presented in the
afternoon. At the end of the day there is a final decision. Afterward, [theres] a
meeting with your mentor. This meeting is more about personal fit and entry details
than the other interviews, although the mentor still has a veto right. Other
consultants also mention taking a computer literacy quiz, as well as a
psychological test. Sounds like quite a bit of work for one day, but hires dont
seem to feel they have been raked over the coals excessively. One staffer notes that
the process takes place in a very nice but demanding atmosphere.
OUR SURVEY SAYS
Congenial co-workers
All praise for the Roland Berger work culture goes right back to the staffers
themselvesBergerites are extremely pleased with their co-workers. One consultant
is excited about the interesting mix of intelligent, intellectual and street-smart
people, while another is high on great teams and colleagues, down-to-earth people,
no arrogance. Employees also praise the firms open atmosphere and
entrepreneurial spirit. However, be aware that with so many diverse locations, the
company may have a variety of work styles. One senior consultant from Milan
remarks, The firm culture is hugely consolidated in Germany, its not the same way
in other countries.
Hours bad, balance good
Employees report that their work hours are up there, hovering around 60 hours per
week. Accordingly, one senior consultant gripes that the biggest problem with the
company is long working hours and the attitude toward it (it is just normal, nobody
questions it). While consultants do work some weekends, were told that thats not
the norm. As one source states, the nice thing about the company is that I very rarely
have to work weekends. As a gesture of flexibility in the face of such rigorous
demands, a Munich-based consultant explains that sometimes there is the possibility
to work on Fridays from your home or the office where you live. In addition,
Working hours depend also on the country you are working in. Germany is known
for harder working hours, a colleague claims.
Putting in so many hours per week, its a wonder Roland Berger consultants can find
any time to themselves. Staffers report that, in general, they are able to maintain a
fairly positive work/life balance. A principal with the company states, Although I
face a challenging job, I am able to balance my job with my family (two kids). And
it seems to take some steps to make sure consultants are able to make time for their
families. One manager explains that the firms family programs support good
work/life balance, and a co-worker adds that Roland Berger just received an award
for excellent work/life balance and family programs. As with hours, an insider
reports that employees work/life varies based on the sector of the company in which
they work. He says, It very much depends on the project and on the competence
center you are working for. [Two] are known for very hardworking hours, especially
during the week, whereas other competence centers value a good private life very
highly. For those who have trouble making time for personal life during work, the
company offers the opportunity to take a six-month sabbatical after two years of
employment, another insider explains.
Business class eases the burden
Bergerites seem to have made peace with the fact that travel is a necessary evil of
their jobs, and most report being away from the office four days a week. One senior
staffer says, As long as your family is fine with this, its OK. Traveling is something
you have to expect in this job. And a colleague, looking at the upside of travel,
explains that it is tough for private life (which is unavoidable) but extremely
rewarding, as youre always meeting new colleagues and seeing new places. We
travel business class, which makes life easier and comfortable. Also, the company is
very flexible when it comes to picking an office location as your home base.
Loosey goosey
Advancement at Roland Berger comes on a meritocratic basis. One manager states,
Promotions are mainly performance based. Consultants are given the required time
to develop without applying an up-or-out policy. There are hints of an up-or-out
system, but its not applied too often. Several insiders comment that the up-or-out
is not very strict, and a senior consultant claims that career advancement is as
expected. As far as a time frame, new hires are happy that consultants advance
quickly, being promoted every 12 to 18 months. One consultant also mentions that
advances are competitive to other strategy consultants, and that getting ahead
really depends on your skills and the projects you are assigned to (i.e.,
responsibility, client exposure).
Get to know your clients
And, consultants report that Roland Berger is a great place to be for top-notch client
exposure and responsibility early on. One senior consultant explains that new hires
have direct exposure to clients from the start. After six months of being at the firm,
the source notes that he had direct board contact. And a co-worker agrees, saying
that even on lower levels, we have direct client contact. If possible, whole teams
attend presentations and have tasks directly in interaction with the client.
The company car is a Porsche
On the whole, Roland Berger staffers feel that they are adequately compensated, and
an insider notes that there was a nice increase of salary levels during the last year.
One Milan-based employee grumbles, however, that the pay is below the average
compared with other strategy consultants in Italy (i.e., McKinsey, BCG, Booz Allen,
Value Partners and Bain). Maybe what keeps consultants quiet is the company car.
One manager reports, Company cars are provided from junior-level onward and, as
you can expect from a company of German origins, most of them are Mercedes,
BMW, Audi and some Porsches. Besides the free wheels, there are a couple other
perks that keep staffers content, including a fully sponsored MBA and PhD
program, and exchange programs between offices.
Learning by guided doing
High marks go to Roland Bergers training programs, which begin with a two-week
kickoff event, in which new consultants gather together under one roof. After that,
most official training is based on specific courses. One project manager explains, A
large seminar program is offered, out of which you can select two to four seminars
per year based on your needs/interests. Employees seem to appreciate this program.
One staffer describes it as a substantial training program (for every level), [with]
very good content and atmosphere, while a colleague notes that some of the classes
are compulsory, a lot of them are voluntary. Most of the ones I have attended were
really interesting. With a company mantra, We do not aim for simple learning by
doing, but rather learning by guided doing, itll come as no shock that the
company also couples these educational efforts with a strong mentorship program.
Young hires are hooked up right away with a partner of their choosing. One source
says the firm offers a very good combination of official (seminars, frequent mentor
meetings) and unofficial (training on the job).
Female forward
Roland Berger consultants dont have much to say on ethnic diversity in their office,
or on the firms stance toward those of alternative sexual orientation. But the
company is getting the word across that it would like to see more successful women
in its ranks. Aprincipal at Roland Berger says, The firm is pursuing an initiative to
hire more women, with convincing initial successes. And one female consultant
explains that it is difficult for the company to gain and maintain women. Women
consultants number roughly 20 percent. Therefore an organization was created called
FORWARD, which is an internal coaching and networking program for the women
within our organization. There are different meetings organized, [and] every woman
has her personal mentor, which is great. In addition, Female consultants are
offered extra support through a special network for women. Several insiders claim
that these formal programs have not trickled down into the day-to-day affairs of the
firm yet. According to one source, although formal programs are being developed
[in some offices], there are no concrete signals at the office level.
Pro bono projects
Roland Berger frequently gives back to the community, and according to sources, this
mainly takes the form of pro bono consulting in a wide range of areas. For
example, says one Munich-based consultant, there are many pro bono projects in the
cultural environment, [and] team events in charity like helping out in kindergartens
and consulting the opera house. One higher-up explains that various initiatives
are taking place both on corporate and on local office level, and a colleague
describes the organization of these initiatives as one pro bono project per office.
100 Half Day Road
Lincolnshire, IL 60069
Phone: (847) 295-5000
Fax: (847) 295-7634
www.hewitt.com
LOCATIONS
Lincolnshire, IL (HQ)
PRACTICE AREAS
Health Care
HR Consulting
HR Outsourcing
Retirement & Financial Management
Talent & Organizational Change
THE STATS
Ticker Symbol: HEW (NYSE)
Chairman & CEO: Russell P. Fradin
UPPERS
Senior leadership cares
Solid diversity efforts
DOWNERS
Salary increases are below
market
Culture is in flux due to the firms
financial situation
EMPLOYMENT CONTACT
was4.hewitt.com/hewitt/careers/
index.htm
Hewitt Associates
V A U L T
P R E S T I G E
R A N K I N G
18
THE BUZZ
Solid reputation for pensions
Quality, responsiveness,
resources
Outsourcing overshadows
consulting
IPO killed the culture
THE SCOOP
Resourceful HR
How does a modest actuarial firm turn into one of the largest human resources
consulting and outsourcing firms in the world? Though Hewitt Associates founder,
Ted Hewitt, didnt set out to become an HR pioneer when he founded his firm in
1940, thats just what he managed to do. Among its many firsts, Hewitts firm
launched the first noncontributory employee savings and pension plan to be
registered with the IRS (in the 1940s); became the first consultancy to measure
ongoing investment performance for defined benefit plans (in the 1950s); and created
the widely used Total Compensation Measurement methodology to assess the value
of employers pay packages (in the 1970s).
Despite all this innovation, Hewitts eponymous founder initially stumbled into the
world of HR. Working on an insurance engagement with his first client, Parker Pen,
out of the firms Lake Forest, Ill., office, Ted Hewitt had a revelationwhat his client
really needed was a well-structured employee benefits package. From that point on,
Hewitt Associates embarked on a mission to augment its actuarial work with two
types of services; outsourcing and consulting.
For your benefit
These days, the firm still manages its business along those lines. The outsourcing
side handles administration of benefits, payroll and broader human resources for
companies, offering a total benefits administration technology system to integrate the
many benefits employers offer. This segment rakes in a larger portion of the firms
revenue, bringing in $2 billion in fiscal 2005, up 7 percent from the previous year.
On the consulting side, the firm advises both private companies and the public sector
with services such as health management consulting, retirement and financial
management consulting, and talent and organization consulting. During fiscal 2005,
this segment brought in a revenue of $818 million, up 6 percent from the year before.
International HR
During its early years, the firm expanded its business in the U.S., opening offices in
Minneapolis, New York City, Milwaukee, Los Angeles and Dayton. Its first
international office opened in Toronto in 1976, followed by branches in Paris and St.
Albans (outside of London) in 1985. The firm went public in 2002, and now employs
Hewitt Associates
around 22,000 associates in 35 countries, serving more than half of the Fortune 500
and more than a third of Fortune Global 500 companies.
A deal worth exulting over
Hewitt has aggressively moved into the industry of business process outsourcing of
human resources services, which it says is the fastest-growing segment of HR
services. In October 2004, the firms execs rang the opening bell at the New York
Stock Exchange to herald the completion of Hewitts merger with HR BPO firm
Exult, Inc., a deal which effectively redefined the HR BPO industry. Thanks to the
acquisition, Hewitt now enjoys a 35 percent global market share in HR outsourcing,
with 42 BPO service centers devoted to HR services in 15 locations, including the
U.S., Brazil, Canada, the U.K. and, of course, India. According to Indias Economic
Times in April 2006, nearly 20 percent of Hewitts total workforce is based in India.
The firms BPO clients have included Sun Microsystems, PepsiCo, Wachovia
Corporation, Capgemini Energy and Duke Energy. Many of these clients, like
Wachovia, which signed a BPO deal with the firm in 2005, were long-term Hewitt
clients in HR consulting services, but hadnt yet made the leap to outsourcing their
HR processes. As an increasingly large number of companies worldwide follow suit,
Hewitt has its work cut out for itself.
Expansion abroad
Europe has been a big BPO growth area for the firm. In March 2006, the firm
announced the opening of a new HR outsourcing center in Krakow, Poland,
employing approximately 300 associates. The facility provides customer service
support to Hewitts HR BPO clients in Europe, and the firm also conducts pension
administration and software development services from the center. Over in Asia,
Hewitt signed a joint venture in mid-2005 with Human Link Corporation (HLC), a
Japanese personnel administration firm established by Mitsubishi Corporation, to
capitalize on the growing demand for HR outsourcing services in Japan.
In April 2006, the business press reported that Hewitt planned to open an office in
Istanbul in the coming months, offering HR consulting services. These businesses
are expected to expand, observers said, as Turkey moves toward aligning itself with
the business practices in the European Union.
Hewitt Associates
Setting the bar
Hewitt has been lauded in the business press as an admired company and a top
employer. Its also a widely tapped source for words of wisdom about trends in HR,
including compensation and outsourcing, with its consultants often called upon to
provide quotes and stats for top business publications. Hewitt offers its industry
know-how through its own publications, including studies and surveys on topics
ranging from Swiss pension benefits to Canadian executive compensation. Other
topics include employee 401(k) saving and investing habits, and other HR matters,
along with annual rankings like the Top 20 U.S. Companies for Leaders.
Salaries under scrutiny
Not all of the buzz around Hewitt has been positive lately, however. In April 2006,
major news outlets began delving into the issue of compensation for executives at
large public companies. A New York Times article pointed out that the CEO of
Verizon Communications, Ivan Seidenberg, raked in $19.4 million in salary, bonus,
restricted stock and other compensation in 2005, 48 percent more than he did in
2004despite the fact that shares in Verizon plummeted by 26 percent, pensions for
50,000 managers were frozen and the firm reported a 5.5 percent earnings decline
during the year. The article noted that concerned shareholders were told that
Seidenberg deserved his compensation, a package devised by an unnamed outside
consultant. Though no one would come out and say it, the Times tracked down this
unnamed consultancyHewitt Associates.
The sticky part of the relationship, the paper noted, was that Hewitt serves as an
advisor to Verizon on other matters, too, including running the telecom giants
employee benefits, providing actuarial services and offering HR management advice.
In other words, the Times observed, the same firm that helps Verizons directors
decide what to pay its executives has a long and lucrative relationship with the
company, maintained at the behest of the executives whose pay it recommends. In
fact, the article added, this is all perfectly within the lawthe Securities and
Exchange Commission has no rules dictating how companies must disclose their
compensation consultants.
Change ahead?
In response, Hewitt maintained that it has strict policies in place to ensure the
independence and objectivity of all our consultants. Still, the article, along with a
similar one by Reuters that ran later that month, noted that the secretive and often
Hewitt Associates
conflicted business of compensation consulting puts these businesses in an
uncomfortable spot, one that makes them an easy target for charges of conflict of
interest. The press pointed out that this uneasy position is not unlike the one that the
Big Four auditing firms were in back when they performed lucrative consulting
services for clients at the same time that they certified their financial data. As the
Enron, Tyco and other accounting scandals made clear, this setup was destined to
lead to abuseand a crackdown in the industry. Experts predict that, with an
increasingly dissatisfied and empowered shareholder culture, its only a matter of
time before firms like Hewitt (as well as competitors Towers Perrin, Watson Wyatt
and Mercer HR) are forced to separate their executive compensation and other
consulting roles.
Fresh management
In June 2006, CEO Dale Gifford announced his retirement, after having served in that
role since 1992, and the firm appointed Russell P. Fradin to take his place in September
2006. In November 2005, the firm appointed a new chief financial officer, John J. Park,
replacing Dan DeCanniere. Park most recently served as CFO and acting president of
Orbitz. In July 2005, the firm appointed Kristi Savacool to a new management
position, senior vice president of business services, responsible for overseeing Hewitts
global internal services. Savacool joined the firm from Boeing, where she served as
vice president of workplace services. In February 2005, Hewitt tapped two leaders for
its outsourcing and consulting divisions. Perry O. Brandorff, named president of
Hewitts consulting practice, formerly managed European operations for the firm. Julie
Gordon is currently acting president of the outsourcing group.
HR heroes
Hewitt has won kudos for practicing what it preachesnamely, good HR. For six
years and counting, the firm has made Computerworlds list of the best work
environments in the U.S. for IT employees. The firm offers family-friendly perks
like maternity and paternity leave packages, unpaid leave options, flexible schedules
and an overnight dependent care plan.
Hewitt Associates
GETTING HIRED
Get em when theyre young
On Hewitt Associates web site, job seekers can look for positions according to
regionNorth America, Asia-Pacific or the United Kingdomand search for
upcoming recruiting events. Its also possible for more experienced hires to make
their way in via headhunters. I was found through use of a headhunter and plucked
from another firm, says one source. One insider notes, however, that Hewitt is a
better organization to join right out of college or with a year or two of experience. I
know Hewitt wants to change this view of the company, but I dont see the firm
becoming friendlier to experienced hires, despite its intentions.
Behave yourself
Most candidates have an initial phone interview, typically with one of the firms
recruiters, followed by a series of on-site interviews, were told. One source recalls
having four 45-minute on-site interviews: The on-site interviews were all behavioral
based, with a strong focus on getting to results. Another consultant, who had an
initial phone interview conducted by an HR associate, was mostly asked questions
that focused on people/social skills and ability to work as part of a team in the first
round. This sources face-to-face interviews were with the hiring manager, another
HR associate and at least one associate currently in the role for which they are
interviewing. In this round as well, the interviewee had very few technical
questions, again focusing on people skills/multitasking/attitude. A colleague offers
a tip to potential interviewers: A Google search on behavioral interviewing will
provide a lot of information to use in preparation.
And you probably wont need much in the way of cab fare for your interview trip.
Hewitt flew me out to the office after a phone interview, says one source, recalling
that the firm put me up in a hotel the night before and then the next day had me
picked up to go into the office. Another insider reports that for the return trip, they
had myself and another interviewee put in a stretch limo for a ride to the airport.
Hewitt Associates
OUR SURVEY SAYS
The good ole days are gone
Hewitt employees say the culture at their firm has changed in recent years.
Corporate culture was very collegial, but at the moment is somewhat dysfunctional
due to the merger with the culturally different start-up Exult, says one source,
adding that the environment is increasingly bureaucratic and policy driven.
Another consultant states, The company has gone public and that has changed the
culture quite a bit. Rumors abound that Hewitt will be bought out by the end of
2006 by IBM, staffers claim. As a result, according to some sources, Associate
engagement is at an all time low, and leadership does nothing but continue to hide
things that it knows will impact its associates. Another insider, who calls Hewitts
culture laid- back and says the people are quite nice, admits that the turnover
rate is very highits over 30 percent.
Some employees, however, are hopeful that Hewitts position as the leader in HR
outsourcing will help the company pull through the hard times. Hewitt has always
been the firm that has caused the competition to be better, says one source. Another
adds, Hewitt is a leader in the HR outsourcing industry. Its always good to work
for the leader and learn what made the leader successful. Still, a colleague notes,
Hewitt is now the leader in HR outsourcing, based on number of clients. However,
its leadership may come into question over the next couple of years because it is no
longer viewed by employees as a great place to work and, consequently, quality is
slipping.
Management to employees: We still care!
Despite their missteps, senior leadership cares about the firm and is trying to fix the
problems, say insiders about Hewitts management team. Hewitt strongly believes
in professional development, notes one source, and feedback is a cornerstone of the
employee/employer relationship at Hewitt. For those who are open and interested in
growth, sifting through the difficult messages and finding the nuggets can be
beneficial for professional, even personal growth, explains an associate
At the same time, some insiders claim that senior leadership is hugely out of touch
with what ails the firm. One staffer asserts, While senior leadership may care about
Hewitts future, they need to be replaced by people with experience running a public
Hewitt Associates
company. If the current executives stay in place, I expect to continue to see missteps
as we try to figure out how to meet Wall Streets expectations.
Hard work required
Opinions differ on advancement opportunities at Hewitt, with some sources saying
there are many, due to the attrition and new business Hewitt faces right now, and
others contending that opportunities for advancement are few, as there are few
openings, and each time an opening came up recently, those duties were absorbed
into an existing role. Regardless of the split, consultants agree that employees need
to work hard and not make waves to be promoted.
Hours also vary but, generally speaking, employees are expected to work as many
hours as it takes to get the work done, say insiders. One source says, Hours are
reasonable (45 to 50 hours a week) in my role, but I am often paged to work on issues
outside of office hours. Another reports a similar experience: My particular role
enables me the flextime that I need to be away from the office, however, there have
been hints and pleas to do mandatory overtime.
Belt-tightening blues
Employees at Hewitt arent exactly thrilled with their compensation, either.
Expectations of a raise beyond inflation adjustment are low, says an insider. One
consultant at the firm conjures an explanation: Hewitts salary increases have been
at least in keeping with the industry, if not greater, until this year. Our financial
situation, which is bad despite growth in the economy due to investing in new
business, is now causing us to give increases that may be below market. And
colleagues say that the perks, which used to help compensate for low-end salaries,
have been minimized, as well. Asource explains: This used to be a company where
the low salary did not bother you because the benefits were great, says one insider.
Well, that is the thing of the past. A lot of the wonderful benefits are going away
and they are not adjusting the salary to compensate for the lack of benefits. For
example, sources say, Hewitt is no longer giving you the Friday after Thanksgiving
off; you will no longer have Christmas Eve off; and other holidays, such as MLK Jr.s
birthday, Veterans Day, Columbus Day and Presidents Day, they never gave you
off. However, the firm notes that it has always given associates two floating
holidays so they can choose which holidays they want to take off. A consultant
remarks that Hewitt, in the past, has always said that their people come first and
foremost, however, once we went public, it all went down [hill], and adds that
Hewitt Associates
Hewitt was known for the work/life balance of its associates, but that perk is near
none now.
In addition, a subsidized cafeteria has replaced what sources call one of the most
cherished benefitsthe free lunches. Insiders point to another major change: the
removal of the Global Profit Share, which was paid into all associates retirement
plans at year-end. And, a staffer reports, They are decreasing the amount of
medical credits they are giving to help pay for the cost of medical, dental and vision
benefits.
Doing good
Sources say that Hewitt is making strides in the area of diversity. Specifically, the
firm has started mentoring programs for minorities, which groom them for future
opportunity. Insiders describe diversity at Hewitt solid and excellent. Some
detractors say, however, that there have been some concerns that nonminorities may
be left out of the equation as they are not given the benefit of a mentoring program.
Another adds, Although it is always good to bring in different cultures/minorities to
balance out and bring in other perspectives, Hewitt has gone overboard with some of
the low end hires that we have recently seen walk in the doors.
To support associates who wish to give back to their communities, the firm has its
Hewitt Time for Hewitt Concerns program, which provides up to two days of paid
time off each year for employees to volunteer for an eligible human services or
educational cause. It also has the Hewitt Foundation, designed to support associates
charitable giving. The Hewitt Foundation accepts contributions from associates and
distributes them to organizations of their choice. Finally, the firm has its matching
gift plan, which encourages support of educational institutions. Hewitt matches
employees contributions, up to $500 per year, to a college or secondary school of
their choice.
Hewitt Associates
Hewitt Associates
Hewitt strongly believes in
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381 Park Avenue South
Fifth Floor
New York, NY 10016
Phone: (212) 213-5505
Fax: (212) 213-5024
www.katzenbach.com
LOCATIONS
New York, NY (HQ)
Chicago, IL
Houston, TX
PRACTICE AREAS
Business Strategy
Change Management
Formal & Informal Organization
Leadership & Capability Development
Motivation & Pride
Performance Improvement Initiatives
THE STATS
Founders: Niko Canner, Marc Feigen,
Jon Katzenbach
2006 Employees: 152
2005 Employees: 129
2005 Revenue: $39.2 million
UPPERS
Challenging and ambitious
engagements that really require
some deep thought to arrive at the
best answer
An extremely diverse pool of talent
(ranging from the hardcore
economist to the lunatic filmmaker)
I really feel like I am personally
helping to grow our firm
Flexibility to explore; entrepreneurial
nature
DOWNERS
With growth comes growing pains
We tend to be inventing the wheel
for each new engagement
Sometimes employees find
themselves in management positions
and havent been trained all that
well
It is not very comfortable if you
dont like ambiguity or if you really
love process
EMPLOYMENT CONTACT
Kristen Clemmer
Director of Recruiting
381 Park Avenue South
Fifth Floor
New York, NY 10016
www.katzenbach.com/Careers/tabid/
56/default.aspx
V A U L T
P R E S T I G E
R A N K I N G
19
THE BUZZ
Fast growing; hot firm right
now
Takes care of its employees
Smug
Wannabe
THE SCOOP
The name says it all
From a group of just six employees at its founding in 1998, Katzenbach Partners now
boasts more than 140 employees, with revenue growing at more than 30 percent per
year. A Fast Company profile of the firm once described it as a quiet experiment
unfolding in the realm of organization building, and a lab for untested ideas, with
a sense of manifest destinyor, as one Katzenbach consultant described it, a
cathedral.
So whats so special about Katzenbach Partners? For starters, it is a consultancy firmly
tied to the larger-than-life reputation of its founder, Jon Katzenbach (or Katz, to his
acolytes). Katzenbach is a true consultants consultant, having earned his stripes at
McKinsey, where he worked for 35 years (in fact, he came in second in an election to
become managing director in 1988). His book, The Discipline of Teams has been
labeled an HBR Classic by the Harvard Business Review, which also named his
theory on peak performance one of 10 major management theories. Katzenbach has
advised some of the worlds most legendary CEOs, including J. Paul Getty and David
Rockefeller, and has penned numerous influential management books.
Aiming for the inner circle
Katzenbachs partners in the founding of the firm, Marc Feigen and Niko Canner,
have similarly stellar reputations, having co-founded both the McKinsey Change
Center and Mitchell Madison Groups organization practice. The three got together
with the aim of starting a different kind of consulting firm, one that connects
strategy and organization, direction and action, ideas and motivations, with a fierce
commitment to analytical rigor. In an October 2005 Consulting Magazine profile of
the firm, Canner said that Katzenbach Partners was beginning a second major
phase of its evolution, moving beyond its start-up years and into the inner circle of
market leaders. But Katzenbachs approach is different from that of top guns like
BCG, Bain and Monitor, Canner noted, in that the [pure strategy] market is simply
too mature to need another player of that scale.
The firm (referred to by insiders as KPL) allows its consultants to be generalists,
working across an array of industries and in different functional areas. The top
industries KPL serves include financial services, telecom, pharmaceuticals, energy,
managed care and enterprise softwaresome blue-chip client names include Pfizer,
Starbucks, Credit Suisse and Aetna. Recent projects have included redesigning the
organization of a leading food and beverage retailer to help it pursue an aggressive
growth plan; working with a major university library to develop a guiding vision of
how libraries will be used in the future; and helping an energy company understand
how to turn the unpredictability of an unregulated market into a source of competitive
advantage.
Pride and service, by the numbers
You wont find the term pride-building listed among the practice areas of many
consulting firms, but KPL counts the concept among its specialties. Based on the
ideas of Jon Katzenbach, pride-building measures increase the motivating source of
pride that employees feel in their organizations and in the work that they do. It isnt
just an airy theoryKatzenbach Partners claims it can prove that improvements in
employee pride can measurably improve business performance.
An attention to customer service can also have positive effects on a companys
business, according to the firm. In February 2006, The Wall Street Journal profiled
some Katzenbach consultants work with customer service reps at a large telecom
company. The profile gave some insight into the firms approach to performance-
oriented engagements. After observing the reps for several weeks, tracking behaviors
of average and high-performing staffers, the consultants broke them into small
groups, giving them two hours of training a week for eight weeks and soliciting
feedback along the way. In addition to monitoring and rewarding the reps behavior,
they also tracked customers, surveying them on their experiences.
Ideas break out
KPL is big on innovation, particularly in the realm of ideas. Three breakout ideas
the firm champions include China 2024, Marshall Goldsmith Partners LLC, and
Performance Leaders. The first, an independent research initiative, is following the
career path of 115 MBAs from China for two decades, until 2024, to explore the
impact these leaders have on their rapidly changing country. Founded by leading
executive coach Marshall Goldsmith along with Katzenbach Partners, Marshall
Goldsmith Partners employs a global network of coaches that apply empirically
tested methods to help leaders change the critical behaviors that most impact their
and their firms success. The firm is so confident in its approach, in fact, that it only
gets paid when its clients demonstrate a measurable change in their targeted
behaviors. Lastly, Performance Leaders provides proprietary software designed to
give leaders and teams highly tailored feedback on performance using survey data.
Innovative experiments
Innovation is the dominant theme in one of the firms most recent books, Ten Rules
for Strategic Innovators: From Idea to Execution (Harvard Business School Press,
2006). In it, Tuck Professor Vijay Govindarajan and Katzenbach Senior Fellow Chris
Trimble make an argument for strategic innovationa concept they say is distinct
from product, process or service innovation. In strategic innovation, a company
makes an investment in an unfamiliar new business that may not come to profitability
for a number of years. In the book, the authors profile these experiments in the real
world as demonstrated by companies such as Hasbro Interactive and New York
Times Digital. Finding few commonalities among their subjects, the consultants did
identify 10 rules innovators would be smart to follow, as well as three basic
challenges that face all strategic innovators.
KPL also produces innovative ideas on hot-button business issues such as
outsourcing. In late 2005, the firm produced a report defining a new metric that
measures the strengths and capabilities of outsourcing firms. The Relative Growth
Metric, as its KPL authors called it, caused a stir in outsourcing circles, as it seemed
to many readers to argue that Indian IT firms were in a better position for long-term
growth than their Western counterparts. The consultants later clarified their position,
noting that the markets were volatile for everyone involved in outsourcing.
In August 2005, the firm hired technology and strategy expert Richard Schroth as a
senior fellow. Schroth, most recently vice president and chief technology officer at
Perot Systems Corp, is the author of two books, How Companies Lie: Why Enron Is
Just the Tip of the Iceberg (Crown Business Books, 2002) and The Board of the 21st
Century (Aspatore Press, 2004). His hiring was said to mark a watershed in
Katzenbach Partners ability to work with clients interested in using technology to
transform their competitive abilities.
Giving with acumen
Katzenbach Partners gives back to the community through pro bono work, such as its
partnership with global nonprofit venture fund Acumen Fund. In January 2006,
Acumen announced that, with KPLs help, it was able to recruit 10 young
professionals for a fellowship it called the Rhodes Scholarship for the social
enterprise sector.
Keeping a jazzed team
At KPL, consultants typically follow a path from associate, to engagement manager,
to principal. Each new associate is paired with an experienced consultant who acts
as a mentor, and the firm aims to incorporate training and development into its
routines daily. The April 2005 Fast Company profile said that a typical engagement
might involve a team of one senior consultant with two junior associates. By giving
recent hires everyday experience with senior partners and principals, the firm gets a
well trained, and highly jazzed, team of talent, sources said. The article also noted
that, in keeping with the firms entrepreneurial spirit, nearly every staffer wears two
hatspitching in on consulting, as well as running the operations of the company,
from performance reviews to recruiting. A big proponent of work/life balance, Jon
Katzenbach was quoted in a November 2005 Fortune cover story, arguing that its
possible to humanize tough jobs by offering flexible career paths, rather than a
pyramid structure for everyone.
And KPL is succeeding in drawing the big namesremarkably, 16 percent of
Harvards senior class applied to work at the firm in 2005, along with 11 percent of
Yales and 9 percent of Penns senior classes (the notoriously selective firm made 34
offers and expected to take on 20 associates from undergrad and MBAprograms).
GETTING HIRED
Expect the unexpected
At Katzenbach, youll find some of your typical hard-charging consultants who were
born to tackle the biggest issues in management theory. Youll also find plenty of
more eclectic types working right alongside themconsultants with backgrounds in
the nonprofit sector, publishing, economics, film-making and much more. As one
insider puts it, We dont require specific degrees or majors, and are very open to
pushing our thinking about how unique backgrounds will round out our firm. We
take great care in selecting the class of offers and try hard to create a unique mix of
people.
On the firms web site, you can learn more about the unique traits of all of its staffers
(they each get their own profile), and start preparing for KPLs legendarily selective
hiring process. As a smaller firm, Katzenbach cant devote unlimited resources to
recruiting, so it tends to stick to the top-10 schools (or fewer!), sources say. A
consultant reports, We have to be selective in choosing the schools where we go
because we dont have as many offices and armies of employees to represent. For
example, when we go to Stanford, we fly from New York, Houston and Chicago to
be there[theres] no California office to leverage.
Campus recruits typically will go through two interview rounds, including one on-
site. Within these rounds there may be anywhere from six to 10 meetings, sources
say. These interviews are with people from all levels, says an insider, and not
always in a top-down fashion; rather, a second-year associate will interview a
candidate for principal.
Tougher than tough
One consultant describes getting into KPL as one of the hardest interview processes
Ive ever had to deal with (and thats after dealing with most of the big consulting
firms and I-banks). Everyone is friendly along the way, but you get cased like crazy.
Second-rounds are particularly tough; four to six 30-minute cases, one 90-minute
written case (with presentation) and a one-hour group case led by Niko [Canner].
This is while socializing during all the breaks. All in all, its extremely rigorous and
very much a gauntlet. I had three interviews, a mix of questions regarding my past
client successes, behavioral-based situational questions and questions challenging
my ability to analyze and see the big picture, explains a colleague.
As fun as a case interview can be, anyway
As for the content of those questions, a source says, Be prepared for interesting, off-
the-wall cases. According to a consultant, We do case interviews, but try to add a
little KPL spice to them. We give our interviewers a ton of freedom, as well, so each
conversation will certainly reflect the personality of the person interviewing you. In
fact, KPL interviewers seem to take great pleasure in participating in the recruiting
processwhich highlights their sense of humor, too. Says one insider, We once
used the Vault Guide to Case Interviews as a prop in our interview process. We asked
if [candidates] had seen the book, which we happened to pick up at the local campus
bookstore, and then we asked how many books they thought were sold this year
getting ready for case interviews. Candidates smirked when we brought out the
book, and the conversation was dynamic because we had a real-life prop to talk
about, which said that we knew about all of the standard case tricks. This helped
push the interviews, revealing much more about candidates skills at the undergrad
level.
Another insider reports, We try to tease peoples analytical skills while having an
interesting and fun conversation. As a market-sizing question, you might hear
something like, How many liters of vodka were consumed in Russia and all former
Soviet states last year? This type of question, says the source, gives people a
chance to show international interests and think out of the box (a lot of vodka is
actually used for disinfection purposes in hospitals in Russia). As a follow-up you
can talk about the influence of alcoholism on a society to test social competence.
One consultant reports a more traditional strategy-oriented case question: Your
client, a senior executive at a large company, wants his employees to innovate in
order to keep up with competition. How would you structure a program that
encourages innovation at all levels of the organization?
It all comes down to fit
Some parting words of advice from the KPL elite: Creativity is valued. Be engaged,
be intellectually curious, be structured. Culture fit is also a huge emphasisand
often is the distinguishing factor when you have so many bright and capable
candidates, says one consultant. A colleague chimes in, We have an extremely
selective process that screens for smarts and analytical horsepower, of course, but
also focuses intensively on values, personality and diversity of experience. Lastly,
says a source, if you do land that golden ticket, the firm is also remarkably flexible
regarding scheduling, acceptances (i.e., no exploding offers) and willingness to
defer/work with candidates.
OUR SURVEY SAYS
One culture, many happy staffers
Katzenbach Partners certainly talks the talk when it comes to employee
empowermentbut does it walk the walk? Survey says: Aresounding yes. KPL
takes its culture very seriously, says a consultant. Theres a set of values which are
constantly referred to. And in general, most people take them to heart. Acolleague
raves, KPL does an outstanding job of creating a unified corporate culture. I look
forward to coming to work every day and truly enjoy spending time with my co-
workers in and out of the office.
Other sources praise the firm for creating a strong identity that is consistent across
offices, including an open and collaborative environment that empowers junior
consultants and encourages innovation. We take culture extremely seriously, and
pay attention to things other firms neglect, says an insider, including a one culture
motto that doesnt isolate consultants from other company teams, from
administrative to IT. The source adds, People tend to become true believers very
early, and we work hard to create measurement mechanisms that ensure we stay true
to our intent.
Open and ego-free
Employees marvel at the lack of hierarchy and supportiveness to be found at KPL.
One would normally think that getting such bright and accomplished people
together would cause competition, but at KPL, its the exact opposite. Theres an
abhorrence of egos and a large value placed on being open-minded and respectful of
others, a consultant says. Another source observes, The culture here is quite
intellectual; its obvious that people here value independent thought and creativity
around business ideas, and that thinking pervades most of the discussions here.
In addition, a colleague describes the firm as extremely open and informal within
the office, with no face time or any of that nonsense. The best part about our
culture is the underlying expectations of respect and common sense. At bottom, I
think everyone understands that as long as you are getting done what needs to be
done, you can pretty much operate with autonomy. At the same time, notes an
insider, There is a real social life in the office and I never feel isolated. We are very
open with firm finances and client developmenteveryone celebrates when we get
a big new client.
Working on the balance
Insiders admit that work/life balance is a work in progress at KPL, but they hail the
firms real efforts to ease the burden, with a series of initiatives that recently included
a small group session with all employees and the firms managing partners in
attendance. At these sessions, a source reports, There were a lot of aha moments,
particularly at the senior levels. Even Katz said that he hadnt realized that the fact
that he catches up on his e-mail on the weekend adversely affected othersor at least
sent a message that he expected people to respond to him (or really, that people feel
compelled to respond to him) right away. He resolved to explicitly write that he
didnt expect an answer over the weekend when it was nonurgent, and to be clear if
it was something that needed more immediate attention.
Other sources report additional tangible results from the firms increased focus on
balance. Having been a confirmed workaholic elsewhere, I am astounded that
partners and principals comment when I stay late, says one staffer. According to a
colleague, Recently we initiated a no e-mail after 8 p.m. effort for a number of
months to drive down the late-night work in the office. Another insider praises the
firms support for extracurriculars like nonprofit work, while a colleague reports that
the firm continues to be very flexible in allowing people to pursue outside interests
through sabbaticals or other breaks, and tends to welcome people back warmly from
this kind of thing. For the most part, a lot of us began as workaholics and thrive
off of the thought of doing as much work as we do, says a consultant. That said,
the firm really emphasizes melding work and playFriday lunches and lots of social
events make being at work overwhelmingly pleasant.
International opportunity
Travel ebbs and flows at KPL, says a consultant, who notes that, depending on the
projects you are staffed on, you could be on a frontline project that requires you to
fly to three cities in one week, or you could be staffed on a home project and never
have to travel. We tend to travel only when the work requires it (versus parking on
the client site no matter what). Still, the work often requires itand with many of
our projects still outside of our home-office towns, theres a lot of traveling to be
done, a co-worker remarks.
We have three offices and clients in at least 10 cities, including four international
projects at the moment, which has increased the level of travel, says a source. And
many of KPLs consultants are the adventurous type, who enjoy the opportunity for
far-flung projects in Australia, Asia and elsewhere. Another bonus to travel,
according to another employee, is that traveling projects often require more hours
of work per day when on the road, but rarely require work on weekends, whereas
New York-based projects more often involve weekend work because team members
have incentives to go home at a decent hour during the week.
Most KPL-ers definitely put in some long hours, but we didnt hear too many
complaints. One source reports working between 50 and 60 hours on a normal,
staffed midproject week, and during project quiet periods, 40 to 50. A one-time
worst week was 80, but nothing else even came close to that. Acolleague notes that
theres almost zero face time here. The assumption is that you are responsible and
that you will get the work done on time and to the best of your ability. If you have a
doctors appointment or come in a little later than usual, its not a problem. That said,
it is important to maintain your relationships internally and have a presence, so
people tend to be in the office when they are in town.
Developing talent
When it comes to employee retention, a source says, Many people who have
prioritized work/life balance are still on board, even if theyre not always in senior
positions. Insiders are confident that the firms lack of an up-or-out policy benefits
everyone. As one consultant explains, People are expected to develop at their own
rate and are rarely encouraged to leave. One great side effect of this policy is that the
firms extensive conversations during review time take the tone of, how can we help
this person to succeed? [and are] almost never punitive. The source continues, As
far as timing, consultants starting out of undergrad move from associate to senior
associate after two years; after that, consultants typically work for about three years
before promotion to engagement manager.
You are told on your first day that everyone is regarded as a potential partner, and
the way development works is exactly like that, a source tells us, adding,
Associates are reviewed at the end of each year, and the feedback is never a
surprise. Still, an insider notes, The career path for consultants is generally a linear
one. There are people who have been able to diverge into more unique roles but those
are few and far between, and typically its the employee who makes the case. Id love
to see the firm make a more active effort to considering alternative career paths but,
in general, they are heads and shoulders above other places.
KPL is no culture of MBA snobs, employees point out. There seems to be no
judgment about people who choose to leave and get advanced degrees (not just
MBAs, by the way) versus those who choose to stay and work. Those who leave
should expect a pretty strong effort by the firm to get them to return, a source says.
Another staffer remarks, The fact that our managing partner does not have an MBA
sets the expectation that an MBAis not requisite for advancement.
Putting in the percentages
KPL is seen as extremely fair when it comes to compensation. Especially for
undergrads, compensation is very strong compared to other consulting companies,
says an insider, claiming that bonuses are high, accounting for around 30 to 40
percent of total compensation. Depending on the firms performance, annual profit
sharing (added to an employees 401(k) whether they participate or not) can run from
10 to 15 percent of base salary, other sources suggest. If thats not enough, theres an
annual four weeks of vacation time that we all are encouraged to take, along with
fully-paid family insurance premiums, insiders tell us.
As one consultant puts it, I dont think anyone has ever called KPL cheap. In
addition to the generous basics, the source adds, My girlfriend is astonished at how
often we get to go out for free. We look for any excuse we can find to go out on the
town. In fact, KPL has a monthly program, KPL On the Town, which covers a
staggering array of firmwide social events, from cooking classes, to rock-climbing,
from Broadway shows, to baseball outings and much more. KPL consultants also are
assigned a buddy, along with a $100 monthly budget to pursue just about any
activity they choose.
And when consultants arent near the office to partake in all this fun, an insider says,
We definitely live well when were traveling. Specifically, says a colleague,
Expense policies are remarkably generous$15 for breakfast, $25 for lunch and
$40 for dinner while on a travel policy. The firm does a good job of making sure
everyone is comfortable. In addition, families are invited to the annual off-site,
which often takes place in fun locales like Mexico and Miami.
Tear down the walls!
KPLs New York office, which expanded recently to fit the growing brood, gets rave
reviews for its great light and nice amenities. In March 2006, the Houston office
relocated and expanded with lots of input from insiders. Employees are divided on
the open floor plan, which features pods of desks, rather than cubes, for everyone
from junior associate to managing partner. Sometimes it gets a little loud, but
overall, people are considerate of working time and dont interrupt without reason,
says an insider, while a colleague notes, Working in an open office environment can
be a challenge (read: I love my noise-reducing headphones), but it is worth it for how
easy it is to make connections with people who you wouldnt otherwise work with.
Others grumble that the lack of walls is distracting.
The open floor plan does illustrate KPLs commitment to tearing down boundaries
among hierarchies. Everyone is extremely accessible here, says a source. You
may have to take the initiative to seek out those relationships, but the door is always
open (and we dont have doors because no one has an office). Given this lack of
boundaries, it comes as no surprise that consultants typically give their relationships
with supervisors high marks. My relationship with my manager is really as two
members of a team, rather than as a manager. We collaborate on virtually all aspects
of our project, says a source. But a co-worker notes that relationships vary by
managersome are great, some arent. It depends significantly on whether or not
you click; my manager now is fantastic, but the last one made me want to chew my
arm off. (In true KPL can-do fashion, the consultant adds, That said, it was a good
educational experience and taught me how to deal with people I dont necessarily
click witha valuable lesson.)
Interacting in infancy
KPL also offers plenty of exposure to its most junior staffers, in the spirit of granting
them as much responsibility as they can handle early on. I am just a second-year
and Ive worked with chief executives at four different companies on a day-to-day
basis. I think KPL is special in that, even though you are junior, you are really
integrated and involved in the project work, and are expected to present this work
to the client, a source reports. Another recent hire tells of a similar experience: As
a second-year, I had dinner with a board member of a $40 billion company my second
week on a projectyou cant ask for better client exposure than that, another insider
reports. According to a colleague, We ask people to develop client relationships
from very early in their careers, and more than many firms, ask consultants even
quite early in their career to sustain those relationships over time for the firm at an
institutional level.
Learning by doing
Historically, KPL has taken a hands-on, informal approach to training. The initial
two weeks of onboarding orientation received by newbies is described by one
insider as great for bonding, but not helpful from the whole consulting perspective,
while monthly sessions for first-years are, overall, useless and frustrating. The
source adds, Informal mentoring and on-the-job training is far better; people here
are invested in teaching younger firm members about the KPL way and about
consulting in generalIve learned far more on-site and working with my teams than
I could have in KPLs formal training.
and investing in training
But all of this is about to change, sources suggest, as KPL increasingly invests in
establishing valuable formal training programs. Our formal training program has
gotten more and more robust, says a consultant, who adds, One of our KPL
partners in Houston used to be the head of nonpartner training at McKinsey, and hes
helping to take our curriculum to the next level. Most recently, the firm put
together a two-day off-site for the large senior associate class which received rave
remarksboth for the content of the training and for the bonding experience it
provided for the group, a colleague reports.
Gender balancemostly
KPL is definitely female-friendlyin fact, Women make up the majority of the
firm, which makes us unique among the top consulting firms, an insider says. What
makes the firm more comparable to its peers, however, is its shortage of women at
the partner level. But this is just a matter of time, a source suggests, noting that
there are a few female principals in line for the top rungs. And thanks to the firms
commitment to flexibility and retention, another source says, Not one woman who
has had a child has left the firm due to difficulty in making that work.
While KPL boasts four principals who are minorities, many sources say the firm
could try a little harder to attract a diverse group. The firm treats all equally and
certainly welcomes minorities, but we have pitifully few African-American and
Hispanic consultantsand I dont see efforts to increase this number, one staffer
points out.
Out on the town
KPL gets truly high marks for its treatment of gay and lesbian employees, with one
source describing the firm as the most respectful, nonjudgmental and open
corporate/professional environment Ive ever seen or heard of. Insiders say there are
openly gay staffers at the senior levels. As one consultant puts it, Gay firm members
frequently bring their significant others to firm events and no one bats an eye. We
could do a better job of focusing on GLBT initiatives in the community; whats
strange is that the firm does a better job of actually providing a gay-friendly work
environment than promoting it on paper.
Among its many initiatives, KPL is said to be really ramping up its charitable and
community service efforts, including the development of a new group devoted to pro
bono consulting. In addition, a source says, The firm occasionally sponsors a daylong
firm event with a nonprofit, such as advising students at our local high school who are
interested in business, or spending a day with the leadership team of a New York City-
based nonprofit, helping them think about how to launch a new development program.
The firm doesnt skimp when it comes to giving, either: The tsunami and Hurricane
Katrina were wonderful examplesthe partners matched contributions up to a certain
amount and donations exceeded the amount in a matter of days, a source says.
Women make up the
majority of the firm, which
makes us unique among
the top consulting firms.
Katzenbach source
263 Tresser Blvd.
Stamford, CT 06901
Phone: (203) 326-5400
www.towersperrin.com
LOCATIONS
Stamford, CT (HQ)
71 additional offices worldwide
PRACTICE AREAS
Enterprise Risk Management
HR Program Design & Management
HR & Workforce Strategy
Insurance & Financial Services
Legacy Pension Solutions
Reinsurance Intermediary Services
Self-Insurance & Captives
THE STATS
Chairman & CEO: Mark V. Mactas
UPPERS
Flexibility and a friendly
atmosphere
There is a passion and energy to
do great work and have fun at the
same time
Little micromanaging of an
individuals time
Authentic opportunity for reward
(pay, promotion, recognition) for
performance
DOWNERS
Lack of technology and IT
support
Some cost-cutting measures have
been excessive
Balancing billable targets versus
career development
Continuing concerns on general
level of base salary
competitiveness
EMPLOYMENT CONTACT
careers.towers.com
Towers Perrin
V A U L T
P R E S T I G E
R A N K I N G
20
THE BUZZ
The McKinsey of HR consulting
Very professional
Very actuarialno distinction
between forest from trees
Face time, long hours, political
THE SCOOP
Triple threat
Towers Perrin is a triple threat in the consulting industry, with talents in human
resources, reinsurance and financial risk management. With offices around the globe,
the firm serves a powerful clientele, including three-quarters of the worlds 500
largest companies and three-quarters of the Fortune 1000 U.S. companies.
Pension pioneers
The firm can trace its roots far backin 1917, one of its founders, H. Walter Foster,
developed the first private pension plan for Union Carbide. As a company, Towers,
Perrin, Forster & Crosby opened for business in 1934, focusing on reinsurance and
life insurance. In 1949, the firms pension division published its first TPF&C
Pension Tax Manual, which was adopted as a standard U.S. Internal Revenue Service
reference source on pension tax law. The firm began specializing in HR in
subsequent decades, establishing the Human Resource Information Systems (HRIS)
to support employers complex HR needs in 1979. Several mergers and expansions
later, the company established Towers Perrin as the umbrella name for the firm in
1987. By 2003, Towers Perrin was raking in $1.5 billion in gross revenue, with more
than 5,000 staffers on board.
The firms HR services business provides services such as employee benefits,
compensation, communication, change management, employee research and the
delivery of HR services to clients around the globe. Meanwhile, the reinsurance
business serves clients with reinsurance strategy and program review; claims
management and program administration; catastrophe exposure management;
contract negotiation and placement; and market security issues. Towers Perrins third
business, Tillinghast, provides consulting and software solutions to insurance and
financial services companies and advises other organizations on risk financing and
self insurance.
Worldwide partners
All three of Towers Perrins businesses have expanded in recent years. In October
2005, the firm expanded its presence in India with an alliance partner relationship
with Indian HR consultancy Cerebrus Consultants. The deal gives the growing
number of Towers Perrin clients with operations in India the ability to draw on
Towers Perrin
Cerebrus services as needed. These services also are available to clients in Pakistan,
Bangladesh and Sri Lanka. Similar deals were struck in the rapidly expanding Polish
market in 2006, through alliance partnership agreements with HRK Partners and Trio
Management, leading Polish HR consultancies. In July 2005, the firm bought
German pensions consultancy Rauser AG, adding over 130 German staff. And in
October 2004, the firm beefed up its Tillinghast practice with the acquisition of the
staff of EPIC Consulting.
The firm got a big boost in March 2005, when it joined forces with Electronic Data
Systems in the launch of ExcellerateHRO, a human resources outsourcing business.
The new company, headed by CEO Steve Bohannon, combines Tower Perrins
administration solutions business with EDSs payroll and HR outsourcing practice.
Just out of the gate, the firm boasted global revenue of $600 million and over 400
clients. In 2006, ExcellerateHRO was selected as a leader in The Global Outsourcing
100, a list of the worlds top outsourcing service providers established by the
International Association of Outsourcing Professionals. Of the worlds outsourcing
providers, 65 were named as leaders on the list, designating larger, established
companies.
In addition, Towers Perrin expanded the capabilities of its enterprise risk
management practice by acquiring the business of Risk Capital Management Partners
LLC in June 2006. A consulting firm that provides financial risk management
services to companies in the financial services, energy, utilities and mining industries,
Risk Capital has extensive experience helping clients identify, quantify and manage
the full range of enterprise risk.
Employee engagement and more
Towers Perrin is behind many widely read research studies, surveys and reports of
interest to its clientele as well as the workforce in general. An April 2006 study
conducted by Londons Cass Business School, in conjunction with Towers Perrin,
found that the current wave of M&A deals is now generally financially successful
and creating more value for shareholders. Another survey, published in March 2006,
found that many HR executives still are not benefiting from new technological
developments that have automated HR services, instead continuing to execute rote
transactions. Yet another study, published in November 2005, analyzed the
engagement levels of employees around the globe (defined as the measure of
peoples willingness and ability to give discretionary effort at work), arguing that
Mexico boasts the largest percentage of highly engaged workers, while Japan has the
smallest. In the U.S., the firm found, engagement levels have not increased since
Towers Perrin
2003, which creates a risk for employers wishing to retain employees in healthier
labor markets.
Whats in a number?
Not all of the firms research is controversy-free. Towers Perrins Tillinghast business
got some high-profile attention in March 2006, after releasing its latest annual report
putting a dollar value on the cost of the nations tort system. According to an
article in The Wall Street Journal, Tillinghast found this cost to be $260 billion,
almost as much as the annual sales of Wal-Martand projected this figure to jump
to $315 billion by 2007. Of course, Washington loves figures like these, and tort
reform has been a rallying cry for years. But as the Journal pointed out, many critics
have argued that Tillinghasts numbers are deeply flawed, including things like
payments from insurance companies for fender-benders among the tort costs. Still,
the Journal noted, the annual reports do provide a useful snapshot of the types of
things insurers shell out for through the legal system each year.
No such thing as bad PR?
Towers Perrin found itself again the target of journalistic scrutiny in March 2006,
when media watchdogs pointed out that a video segment produced by the firm on job
dissatisfaction and workforce efficiency was run by local TV news affiliates as if it
were an independently produced segment. As media watchdogs continue to look for
evidence of conflicts of interest and lack of objectivity in journalism, the disclosure
of Towers Perrins influence behind the segment, known as a video news release
(VNR), created a stir. According to PR Watch in March, the two-minute segment,
which included advice from two managing directors at Towers Perrin, and quoted
numerous figures from a Towers Perrin workplace survey, was produced by PR firm
D S Simon Productions and distributed to newsrooms. The problem, according to
watchdogs, is that two local news affiliates, in Florida and Oklahoma, ran the VNR
as though it were a genuine report produced by the station.
Behind every CEOs wallet
Like many of its competitors that offer compensation consulting among a menu of
other corporate consulting services, Towers Perrin made headlines in April 2006,
when The New York Times examined the issue of executive remuneration. Some
companies such as Verizon, the Times argued, were overpaying their
underperforming CEOs. And at least part of this largesse was based on advice from
Towers Perrin
consultancies (in Verizons case, Hewitt Associates) that specialize both in
remuneration and other types of strategy advice. Supplying both types of services,
critics argue, creates a conflict of interest. As the media and shareholders continue
to pay attention, agencies such as the Securities and Exchange Commission are under
increasing pressure to tighten regulations covering HR consulting services, at least
when it comes to public companies.
GETTING HIRED
Storming the Towers
According to Towers Perrin, it takes more that just strong analytical and quantitative
skills to make the cut at the firm. Towers recruiters also look for candidates with a
strong sense of teamwork, an understanding of human behavior and motivation,
and good communication skills, along with an excellent academic track record. If
thats not enough, theres a whole slew of more detailed key skills and
characteristics listed on the careers section of the firms web site.
Also on its site, the firm lists campus recruiting events, noting that it visits more than
50 schools in the U.S. and Canada. But candidates at schools with no such events
scheduled are still encouraged to apply through their camps placement office or the
firms online application process. According to a consultant, For on-campus hires,
we have a dedicated recruiting expert at the corporate level. We have a senior
consultant take ownership for a given university. We have on-campus visits for initial
information sessions and interviews (each candidate gets one interview).
The source continues, We bring candidates who get through this round to local
offices for a recruiting event. We have four to eight candidates in on the same day,
have dinner with them the night before, four interviews each in the office, take them
to lunch and also have a group panel discussion with the newer staff. Acolleague
adds, MBA hires can expect several rounds of interviews and one or more case
questions. Undergrad hires are more streamlined with a single interview at the
university and then several interviews at the hiring office if the candidate makes it to
the next round.
Towers Perrin
Lots of handshakes
Insiders at Towers Perrin describe the hiring process as both extensive and
thoughtful and grueling. No matter what level a candidate is, the firm offers
numerous rounds of interviews with senior level hires, an insider says.
Standardized questions are asked, and the focus of the interview is split among
interviewers (i.e., one person looks for project management, one person looks for
business acumen, one person looks for interpersonal skills, etc.) Another consultant
adds, We often have potential new hires meet people from other consulting areas.
This broad process ensures we take many perspectives into consideration in
determining whether to extend an offer of employment or not.
Sources report that typical questions candidates might face include, Describe a time
when you voiced disagreement with someone senior to you; Describe an example
of a difficult client situation/project and how you handled and resolved conflict, both
internally and/or directly with the client; and Give me an example of a time when
you demonstrated initiative.
The long and short of it
Sources are split on just how efficient the Towers Perrin hiring process is. One
insider tells us, We always debrief promptly, and generally make a thumbs-up or
thumbs-down decision on the same day. But other sources disagree: We take far
too long in our selection process. Too many people have to interview candidates and
the approval process is a burden, says an associate. I believe we have lost
candidates because of the lengthy hiring process, another consultant agrees.
OUR SURVEY SAYS
Cooperating while competing
Towers Perrin insiders describe an organization thats friendlybut not overly cozy.
While the term collegial comes up a lot in consultants descriptions of the firm,
insiders are just as apt to describe Towers Perrin as competitive. As one source
puts it, I enjoy the balance between competition and cooperation that exists in our
firm. We are all focused on winning personally and collectively. This creates a very
intense and productive environment that drives success. The atmosphere is manic,
but not malicious, a colleague reports, adding, You just have to keep an even keel
and not take things too personally. According to another consultant, This is a high-
Towers Perrin
performance culture and the priority is on results. People dont go out of their way
to make things unpleasant, but they are focused on executing their responsibilities,
not on creating a pleasant experience for their co-workers.
Still, others insist that the firms culture is supportive, and what they really
appreciate is that theres no apparent hierarchy at Towers Perrin. Everything is
pretty open here. There arent a lot of levels of staff to navigate through, so you can
talk to anyone, a consultant says. Another insider loves that the corporate culture
at Towers Perrin tends to be one of collaboration, transparency and trust.
Autonomy granted
Flexibility is a critical factor in achieving work/life balance and, for the most part,
Towers Perrin succeeds on this front, insiders say. Although the career is
challenging and requires a significant commitment, Towers Perrin has provided
technology and has built in flexibility to respond to changing personal and work
needs, a consultant says. Numerous sources agree that the firm allows for a
flexible working schedule by giving extra time off when needed and allowing for
working at home when necessary. According to one consultant, There is a deep
culture of trust that we are not trying to manipulate the system; the firms and our best
interests are seen together. This is a very self-driven organization, a colleague
agrees. Even as an associate, I have the autonomy to schedule my time.
But the subject of billable goals also comes up, indicating that Towers Perrin
insiders are used to working hard. A few years ago it was easier to maintain a
work/life balance, says an experienced employee, but they want us to be extremely
billable and hit high sales goals.
Travelno big deal
According to one insider, Travel is probably the biggest challenge to managing
work/life balance for most consultants, and Towers Perrin is no different in that
respect. That said, Towers Perrin doesnt require the grueling travel across the
board that some of its competitors do. Travel only occurs if your clients are not
based in your area or for training purposes. It does not have a big effect on my work
life, a consultant says. According to a colleague, Travel is not a big issue for our
teams because they tend to be locally based for many of our businesses. That is one
of Towers Perrins most attractive features. For those who do make client trips, the
travel requirements do not seem too taxing. Travel is necessary but not disruptive,
Towers Perrin
a source says. And an insider agrees, saying, I get to travel enough to make it seem
like a nice break from the office, but not so much to be tedious.
Some consultants have it a bit rougher, though. Work/life balance does not exist in
the weeks that I travel, one source says. We travel outside normal business hours,
which causes very early or very late days. The downtime is hard to manage,
another insider reports, as one feels obligated to work hard at all hours to make up
for it. The increasing use of portable IT tools (e.g., BlackBerries, wireless
networking) makes this easier.
Its the deliverables
Work hours at Towers Perrin are described as highly variable, though in general
consultants average around 50 to 60 per week. I work very hard at times and have
very little work at other times. It can be nice, but work has to come first; when it is
busy, everything else has to wait, a consultant tells us. Aco-worker claims that the
number of hours is not so bad, but its the constant, urgent client requests that
interrupt work/life balance that are of issue. Another insider complains, Client
billable time aside, administrative work at the senior levels is crazy (invoicing
clients, contracting, scope of work documents, marketing initiatives, etc.). But a
colleague reports that the company is not obsessed with working hours; rather, it
is the deliverables that count. Efficient working is rewarded.
What are your goals?
As for promotion paths at Towers Perrin, most sources agree that the firm is not an
up-or-out sort of place. People can have a great career without aspiring to become
a principal of the firm, a source says. Consultants can track quickly, depending on
their career aspirations. Another insider agrees, Promotions are based on
exceeding your specified goals that are set each year. It is not strictly up-or-out.
Consultants can advance quickly by far exceeding their goals. Still, a colleague
notes, I would say the advancement rate slows down significantly as one goes up the
ladder. Most consultants that start with Towers Perrin just out of school are
promoted (on average) every two years for the first few years, reports an insider.
Another source notes that there seem to be two paths for advancement at the firm:
One, the back-office technical path, leads to a midcareer plateau for all but a lucky
few. The path with more upward potential is more client-facing. It is more stressful
and less secure, but more lucrative.
Towers Perrin
Rewarding performance
In fact, the harder you work, the more you earn at Towers Perrin, insiders suggest.
Many sources describe a pay for performance culture thats pretty popular among
the firms consultants. Towers Perrin is beginning to truly pay for performance with
high performers being rewarded well and low performers receiving a prorated bonus
and lower or no pay increases, says an insider. The firm boasts a philosophy of
high differentiation, another source remarks. Individuals who exceed their goals
are very highly rewarded. A colleague adds that bonus payouts have been
extremely high in the last two years to high performers. While my target was 20
percent of base salary, the payout in the last two years was 30 to 35 percent of base
pay. TP works to differentiate average employees from high-performers.
This is especially welcome news to the Towers Perrin consultants who grumble that
base pay itself is a little low. My company conducted an extensive survey of salaries
in our business and then decided to set our pay at exactly the average of our
competitors. It is unimpressive to tell your employees that they are making exactly
the average pay, grumbles an insider.
Who wants ice cream?
Towers Perrin also covers all the basics when it comes to benefits: a good health
care plan, a 401(k) with a good company match and profit sharing at the partner
level. As for other perks, Is having the opportunity to work with a lot of really smart
people a perk? I think so, a consultant says. This firm isnt big on cute perks,
which is fine with me. That said, a co-worker adds, The company does several
little things to make the employees feel appreciated, like bringing in Starbucks to
serve coffee on special mornings, having social outings, giving away sports tickets,
etc. Another source reports, We have ice cream from Memorial Day to Labor Day
provided for free for employees.
Free ice cream? What more could you want? Many consultants also appreciate the
time flexibility and telecommuting options offered by the firm. According to one
associate, With small children, it is very helpful to be able to leave work and deal
with family issues without having to worry about punching a time clock. As long
as sales goals and billable hour requirements are met, the firm is very flexible. I also
appreciated the paternity leave benefit when my children were born. In addition, for
those interested in nonprofit work, Towers Perrin will allow employees to apply for
a temporary leave of absence to pursue a role in a not-for-profit organization for up
to six months (perhaps 12 months). If the application is accepted, Towers Perrin will
Towers Perrin
cover up to 80 percent of the employees compensation that is not paid by the not-
for-profit group, a source explains.
Welcome to cube-land
Offices dont garner unanimous raves from Towers Perrin insiders. AChicago-based
consultant describes his office as small, small, small. Likewise, a Houston staffer
reports, We recently downsized to corporate standards and now we do not have
enough space for new hires and storage/files. In Philadelphia, a source explains,
Most people work in cubicles these days. Offices have become an endangered
species. According to a colleague, Its difficult having a senior role on clients and
dealing with them every day from a cubicle. Another insider has a different
perspective, though, noting, The Towers Perrin offices I have either visited or been
assigned to have been well appointed from a working perspective (i.e., work
stations/offices offer up a comfortable working environment and the technology
tends to work quite well).
Short-changed training
Training gets better reviews from Towers Perrin insiderswith some reservations.
As one source describes it, I would say most is unofficial, through on-the-job
training, which is what I prefer. However, the firm makes available a wide variety of
official training courses. The source adds, I typically find these to be interesting
but not of sufficient depthI usually end up wishing the course had lasted a day or
two longer. Another insider reports, When I started it was all official. Now it seems
to be very unofficial. This adds a lot of work for those of us left training the newer
hires.
Barrier-free communications
But Towers Perrin consultants do appreciate the flatness of their organization,
which helps foster relationships with supervisors. In our organization, we dont
have any barriers to communicating with our leadership. This is one of the most
rewarding aspects of my role at Towers Perrin, says a consultant. Supervisor
interaction is limited, but hes always available and willing to talk, and is very
conscientious, a colleague reports. Im just as happy not to have a supervisor
whos constantly ... supervising. We are all adults here, after all. But another insider
objects, saying, My supervisor is stretched far too thin to offer much management.
Towers Perrin
In my first year on the job, we discussed performance and management less than one
hour in total.
Contact with Towers Perrins clients is described as excellent and a priority, and
access to clients is neither guarded by senior consultants nor limited to certain
levels, an insider says. The nature of my work includes regular interaction with top
management and boards of directors, a colleague agrees.
Opportunities to succeed
As for women at the firm, one insider tells us, Current firm leadership seems light
on the number of women, but more and more women seem to be moving up the
ranks. As a woman, I can attest to the fair treatment of women in hiring,
promotions and opportunities, another consultant says. If a man or a woman
possesses the skill set and motivation to succeed, they are given the opportunity to
succeed at Towers Perrin. However, the source adds, Women who have made
decisions to work less hours have less opportunities. This reflects another comment
made by a colleague: The firm is very supportive of single women without children.
If you are a working mother, you are viewed as a liability, not an asset.
While the firm is well represented by a variety of different countries, minorities
arent widely seen at the firms upper levels, insiders suggest. I think our firm does a
good job in hiring minorities, but that is where it ends. It is very uncommon to see any
minorities in top-level management, a source says. As a colleague puts it, I think that
the firm is open to minorities, but they have very little representation in our industry.
As a result, the majority of minorities are found in administration and clerical positions.
I do not attribute that unfortunate outcome to a lack of commitment to diversity in the
firm.
Gays and lesbians at Towers Perrin are treated the same as anyone else, though the
topic is not openly discussed with much frequency, a source reports. Says a
colleague, Frankly, I think the firm doesnt care (thats not meant to be a negative
comment). The firm does not go out of its way to promote an exceptionally open
environment, nor is it homophobic, and it does not, in my experience, consider
orientation in hiring, recognition or promotion. Its a complete nonissue, just as it
should be. Still, while domestic partner benefits were easily accepted as the right
thing to do, they do come with some exceptions, and some improvements could
be made here, sources report.
Towers Perrin
Children, literacy and more
Towers Perrin is seen by insiders as a generous member of its communities, thanks
in part to the nonprofit transfer option offered to some consultants (though this
benefit is not widely publicized, sources tell us). In addition, a consultant says, the
firm does provide a corporate match program for two organizations: Save the
Children and ProLiteracy Worldwide. Another insider adds that individual
departments do participate in clothing drives and other community events.
Towers Perrin
901 North Glebe Road
Arlington, VA 22203
Phone: (703) 258-8000
Fax: (703) 258-8585
www.watsonwyatt.com
LOCATIONS
Arlington, VA (HQ)
worldwide
PRACTICE AREAS
Communication
Compensation
Government Consulting
Group Benefits & Health Care
Human Capital Consulting
Insurance & Financial Services
International
Investment Consulting
Organization Effectiveness
Pension Administration
Retirement
Technology Solutions
THE STATS
Ticker Symbol: WW (NYSE)
President & CEO: John J. Haley
2006 Revenue: $1.24 billion (est.)
UPPERS
Never boring and always
challenging
We have a great business strategy
for the next two to five years and
excellent talent to lead us there
High integrity and values, trust
and flexibility
DOWNERS
Limited career progression
Internal processes that can be
distracting from client facing
activities
Scared of failure; lack of trust
from corporate HR to the field HR
EMPLOYMENT CONTACT
www.watsonwyatt.com/careers
Watson Wyatt Worldwide
V A U L T
P R E S T I G E
R A N K I N G
21
THE BUZZ
Best of actuarial firms
Quant with personality
Lots of unhappy campers
Big guys in their field, unknown
elsewhere
THE SCOOP
The first of its kind
Watson Wyatt Worldwide is a global human resources consulting firm formed in
1995, though its roots go way back to the 19th century. Reuben Watson established
the first actuarial consultancy in the U.K. in 1878 called R. Watson & Sons.
Originally a provider of actuary services, the firm became the main government
advisor on social insurance in the early 1900s. In 1995, R. Watson & Sons combined
with The Wyatt Company, an American benefits and insurance consulting firm
established in 1946. The firm operated as two distinct groups, serving different
geographical markets until August 2005, when the groups finally joined forces.
Today, Watson Wyatt Worldwide is a global firm offering advice on retirement
benefits and compensation planning. Its main thrust is looking at things like pension
plans, benefits and hiring practices to see what types of HR policies influence
shareholder value. Watson Wyatt Worldwidenow made up of 90 offices in 30
countries and boasting over 6,000 employeeshas practices covering employee
benefits, human capital strategies, technology solutions, and insurance and financial
services.
Worldwide whirlwind
Opening new offices around the world has boosted the firms capacity to serve its
global client base. AFrankfurt office was set up in March 2006 to enlarge its German
investment consulting team, and will join Watson Wyatts German contingent in
Munich and Dsseldorf. In February 2006, the firm opened an insurance and
financial consulting practice in Shanghai. The firm also made strides in South
America with two new offices: A human capital consulting practice was started in
Santiago, Chile, in May 2005, following an opening earlier that month of a dedicated
benefits research center in Montevideo, Uruguay. And in 2004, the firm purchased
KPMGs Pension and Actuarial Group in Ireland. The acquisition put the firm right
behind rival Mercer Human Resource Consulting, the leader in the Irish market.
Like other of its consulting peers, Watson Wyatt has targeted India as a hot
development region in recent years. In October 2005, the firm announced plans for
a pan-European valuation center based in India. The center, scheduled to open in
2007, will provide pension valuations for all European clients. Though this new
operation will cut costs, the firm is quick to note that the change is not just about
cost efficiency, and adds that it will not be outsourcing valuation work. In
addition, since March 2005, the firm has offered its services to banks and insurance
companies from a regional office in Gurgaon.
Spreading out stateside
While expanding its overseas presence, Watson Wyatt has not neglected its domestic
pursuits. The firm has also been beefing up its U.S. practices with new locations and
leadership. In February 2006, Kevin Meehan, from the D.C. office, was appointed
U.S. Region Manager. In 2005, new directors were named in the Human Capital,
International Consulting and North American Investment Consulting groups. In the
acquisitions department, Watson Wyatt snapped up Davis, Conder, Enderle & Sloan,
a Chicago actuarial and benefits consulting firm in October 2005. And out West, new
offices were established in Las Vegas in September 2005 and Los Angeles in August
2004. Teams in New York, Chicago and Stamford were also strengthened with new
hires and promotions abounding in 2005 and 2006.
Tightening up
The recent burst of expansion came after the firm made moves to consolidate and
streamline. Watson Wyatt New Zealand was bought out in August 2005 by major
competitor Mercer Human Resource Consulting, and in 2004, the firm spun off its
insurance and financial services consulting group in Boston in order to focus on its
core actuarial consulting. Later, two partners bought out the Boston practice to form
Spring Consulting Group LLP in March 2004. In June 2004, Watson Wyatt
integrated its Malaysia and Singapore offices to unite the regions resources.
Revenue rebound
The 2005 merger of Watson and Wyatt, along with strategic growth has had a positive
effect on the firms bottom line. After a revenue slump in 2004, the firm showed
positive growth in 2005, with reported revenue of $737.4 million, an increase of five
percent from the previous year. The human capital group can claim responsibility for
most of the surgeits revenue alone rose 26 percent for the year. In addition, both
the international and health care groups showed strong revenue growth of 9 and 12
percent, respectively.
Keys to success
Afirm that tells other companies how to keep employees happy must know what its
talking about. In March 2005, the U.K. Sunday Times named Watson Wyatt one of
the Top 100 Companies to Work For. In terms of pay and benefits, the firm made it
into the top 20. Watson Wyatt has been included on the list each year since the survey
began in 2001. In October 2005, China Staff magazine named the firm Hong Kongs
Consulting Firm of the Year for HR Strategy and Management, a title it has earned
for the last eight consecutive years.
Global truths
In addition to consulting, Watson Wyatts surveys gather critical intelligence on
human resources practices around the globe, and the firms market-driven research
monitors the way HR trends affect companies as a whole. In 1999 the firm launched
the Human Capital Index (HCI), a study that connects HR practices with creating
shareholder value, and the firm touted the study as the most comprehensive analysis
of the impact of human capital on business. The 2005 study analyzed 147 large
North American companies with at least $100 million in revenue or market value.
The findings emphasized what the firm calls global truths in employment practices:
For example, the 2005 study showed that companies that fill vacant positions within
two weeks provide a total return to shareholders 48 percent higher than companies
who take seven weeks to fill a position. It also demonstrated that companies that
foster a collegial workplace with a lack of hierarchy deliver more shareholder value
than companies with a more rigid managerial system and tiered class structure.
Flu fears
In March 2006, Watson Wyatt conducted a survey of 90 multinational companies to
find out what, if anything, they are doing to prepare for a possible avian flu epidemic.
In Asia-Pacific, the survey found, about 32 percent of companies questioned have
plans in place should bird flu strike, compared to just 15 percent in the U.S., 11
percent in Europe, 10 percent in Canada and 9 percent in Latin America. The survey
also discovered that concerned companies are proposing everything from alternative
work arrangements to reimbursement for medical treatment in the event of infection,
while one in five companies isnt preparing at all because they doubt it will affect
their workforce.
Triple trouble
Despite the firms current upswing, it has also had its share of recent legal woes with
three lawsuits in 2005. In February, the firm faced multimillion-dollar suits brought
on by KPMG and PricewaterhouseCoopers involving the 2001 collapse of their
clients, Cotesworth Capital and Independent Insurance. PwC and KPMG alleged that
Watson Wyatt should have spotted shortfalls in reserves for paying claims when
reviewing the insurers records. Both contend that the firms negligence led to the
demise of the two companies. The troubles didnt end there, however. That same
month, Credit Lyonnais sued Watson Wyatt for allegedly over-valuing the banks
pension scheme. As a result, the bank promised employees greater benefits than it
could provide. Credit Lyonnais and Cotesworth both dropped the lawsuits in May
2005, and the firm escaped paying damages to either claimant, though it still has the
Independent Insurance claim hanging over its head.
Pick a cause
The firms numerous offices make an effort to get involved in local community
causes through volunteering. Watson Wyatt supported employees who organized a
bike ride across America to benefit a multiple sclerosis charity. And several teams in
the U.S. have built houses with Habitat for Humanity and Christmas in April, both
home repair and renovation organizations. Individuals have also provided English
tutoring and mentored high school students in the area. The firm says it offers
support to help employees manage their individual volunteering commitments
outside of work to a community of their choice.
GETTING HIRED
Worldwide recruiting
On its web site, Watson Wyatt gives guidelines for pursuing careers for both
experienced hires and recent graduates. Sources name Penn State, Concordia,
Northwestern University, University of Texas and University of Virginia among the
U.S. campuses where the firm recruits. The firm also scopes out major universities
in Canada such as the University of Waterloo and the University of Calgary. The
complete school list is set forth in a detailed calendar on the web site.
Just getting warmed up
For experienced hires in Asia and the Americas, a searchable database lists job
openings by location. For European experienced hires, opportunities listed on the
web site are classified by practice area. The firm reportedly looks for high mental
agility in its candidates and offers an interview warm-up on its web site in the form
of a Sudoku teaser. Though the company says its just for fun, candidates can
actually measure their results against those of leaders at the firm to see how they
compare.
Insiders say candidates will face approximately eight to 10 interviews with everyone
in the firm [you] would interact with. The process is a combination of one-on-one
and group interviews. Exact interviewing practices vary by location, though, since
each office does its own recruiting/hiring. One consultant comments that although
he believes there are too many people involved in the interview process, we do have
a good process[there are] competency-based assessment questions for improved
selection.
OUR SURVEY SAYS
Collaborative and collegial
Sources praise the firms welcoming, friendly culture and say its their colleagues
who make it an enjoyable place to work. Collegial seems to be the name of the
game at Watson Wyatt. One insider raves that his co-workers are collaborative and
collegial; they are positive and fun to work with; and they are very focused on
keeping our clients happy and having fun while we do it. Consultants claim to enjoy
working in a great collegial atmosphere that fosters creativity, thought leadership
and innovation. Asenior-level manager says proudly, Overall, its a great place to
work.
Balance achieved
With an average workweek of about 50 hours for consultants, employees say they are
able to maintain a fair work/life balance at Watson Wyatt. One reports that the firm
provides a lot of flexibility to associates. Balancing work and life is not an issue,
while another agrees, saying, Yes, [the] firm is very flexible and encourages
work/life balance. A manager reports that the firms flexibility gives him the
opportunity to work from home and telecommute.
According to a few insiders, however, consultants have been far too busy lately to
keep things in balance all the time. One source explains that keeping a sane schedule
is a juggling act; while the firm does offer some flexibility, oftentimes it is up to the
individual to make sure he is dividing his time well. He explains, Balance is a
matter of perspective. Being able to juggle the demands of home life with work
responsibilities is an art. Some days, one side gets more attention than the other.
Knowing when to push back and refocus is a given.
Variable and flexible
Part of the satisfaction in work/life balance probably stems from the fact that travel
is variable; some consultants dont travel at all, while those who do report that travel
is generally sporadic. One employee speaks from personal experience: I work
from home and am usually home for a three-week stretch and then I have to travel
for a full week. Busy season (in the fall) is more travelabout two weeks out of each
month for about three months. A colleague notes that travel is flexible based on
client need and consultants schedule, and as another simply states, Travel is not
really an issue.
Insiders also give positive reviews to the firms training. Employees relate that
training is a combination of official and informal programs. The firm offers new
online self-paced managerial training, and also good mentoring, according to one
consultant.
Take the initiative
The general consensus within Watson Wyatt is that consultants are promoted based
on their own merits and performance. One associate states that consultants can
advance based on their own initiatives. And a manager explains, Promotion is
competency based. There are formal yearly performance reviews but with
intermediate meetings with managers. If consultants apply themselves and are high
performers [they] can advance as quickly as two or three years.
Still, though, Watson Wyatt is always looking for the best people for the job and
wont hesitate to let go of those not performing up to snuff. At times, several
employees report, it seems that the firm follows a loose up-or-out policy. A senior
consultant shares that high-performing consultants advance. Generally poor
consultants are counseled out. And as a colleague notes, Watson Wyatt tries to
promote from within, but its really more focused on making the right hires, whether
[from] inside or outside of the firm.
Paltry pay
Insiders at the firm arent too pleased with compensation, especially when it comes
to bonuses, which are reportedly about 10 percent of annual salary, but are variable
according to the firms profit margin. One disgruntled source complains that bonuses
often suffer cuts as a result of lower-than-expected profit: This [bonus] is not profit
sharing and shouldnt be the first item hit for cost controls. It is a part of
compensation. If you do not want to pay higher bonuses, cut the target, not the
funded percentage, and he adds that this sends a very bad message to employees.
Another unsatisfied co-worker grumbles, We are overworked and not compensated
for that overwork.
Free lunch
Though consultants complain about salary and bonus, they seem satisfied with the
other benefits the firm provides. In addition to profit sharing for senior employees,
Watson Wyatt has a stock purchase plan. Sources claim they are happy with the
recreation allowance, a paid time off program, a pension plan and a sabbatical
program offerred by the firm. One analyst remarks that the health care benefits are
excellent. And another insider appreciates the weekly free lunches. They bring in
lunch once per week. I dont know of any other firm that does that. At the Houston
office, one consultant lists the great coffee as his most prized perk.
Few women at the top
Insiders report that Watson Wyatt is doing a good job of hiring and retaining women
at lower levels, where the number of women is equal to more than half. However,
the gender balance is more uneven at the manager level and above. One manager
comments that there are plenty of women at a senior consultant level, but laments
the number of women at levels beyond that, noting, We keep exactly one woman
and/or minority at a top/key management level at all times. We have yet to see a
woman or other minority at a top management level in the cornerstone practice
(retirement). And another colleague concurs that there are very few [women] in
the true upper echelon.
When it comes to other types of diversity, employees give mediocre marks to
minority balance and gay, lesbian and bisexual diversity. One manager advises,
[The firm] would benefit from more minorities in senior, market-facing positions.
Local aid
Watson Wyatt offices get involved in their communities on a regional level, and each
office chooses how to participate. A Boston consultant reports on community
involvement in his office: Charitable giving is highly encouraged via in-office
jeans day with a donation given to local charity to wear jeans. In Detroit, insiders
say colleagues participate in tutoring, womens shelters, food banks and many many
others. And a source in Houston notes that fundraisers and community outreach
programs are some of the ways employees contribute to their city.
The firm provides a lot of
flexibility to associates.
Balancing work and life is
not an issue.
Watson Wyatt consultant
50 Main Street, 14th Floor
White Plains, NY 10606
Phone: (914) 448-4000
Fax: (914) 448-4040
www.nera.com
LOCATIONS
White Plains, NY (HQ)
PRACTICE AREAS
Antitrust/Competition Policy
Commercial Litigation & Damages
Communications Employment/
Labor Economics Energy
Environment Financial Risk
Management Healthcare
Intellectual Property Market
Design/Strategy Mass
Torts/Product Liability
Regulation/Public Policy/Survey
Design Securities & Finance
Transfer Pricing Transport
Valuation Water
THE STATS
Employer Type: Subsidiary of Marsh &
McLennan Companies
Ticker Symbol: MMC (NYSE)
President: Dr. Andrew S. Carron
2006 Employees: 550
2005 Employees: 525
2005 Revenue: $3.8 billion (all Mercer
consulting divisions)
2004 Revenue: $3.6 billion (all Mercer
consulting divisions)
UPPERS
The work is intellectually challenging
and you gain responsibility quickly
Exposure to expert economists in their
respective fields
Generally, you can make your own
hours
Decent and regular raises and bonuses
DOWNERS
PhD economists arent always
master communicators, or otherwise
socially adept
Not enough client contact
Inconsistencies in how different
groups treat their staff
The underlying work is tedious
EMPLOYMENT CONTACT
US Recruiting Team
NERA Economic Consulting
50 Main Street
White Plains, NY 10606
Fax: (914) 4480-4148
E-mail: recruitingteam@nera.com
Additional contacts by country available at
www.nera.com
V A U L T
P R E S T I G E
R A N K I N G
22
THE BUZZ
Savvy, specialized
Quantitative; incredible
brainpower
Not well known outside of the
consulting world
Macho; hierarchical
THE SCOOP
From academics to economics
NERAEconomic Consulting is an economic research think tank founded as National
Economic Research Associates in 1961. The firm was the brainchild of Dr. Jules
Joskow, a former City College economics professor, and Dr. Irwin Stelzer, an
economist. Dr. Joskow had taken a break from the classroom in order to get some
real-world experience. After consulting for natural gas companies for a couple of
years, he decided to forego academia for a career in business. Starting in New York
City with 15 employees, the company was profitable from the start.
Marsh & McLennan Companies, a professional services giant, acquired NERA in
1983 as part of its consulting arm. Since then, the firm has expanded to 21 offices
worldwide with 550 employees. The headquarters moved to White Plains, N.Y., in
1983, though the firm still maintains a New York City office. In December 2005, the
firm opened its newest office in Paris which will focus on transfer pricing, pricing
strategies, assessing risk and property valuation, giving it full coverage of the main
European markets in Germany, the U.K. and France.
Getting their hands dirty
With clients in corporations, governments, regulatory and international agencies,
trade associations and law firms, NERA advises on matters ranging from telecom
policy and competition to the impact of mutual fund market timing. The firms
numerous practice areas include environment, intellectual property, antitrust and
competition, securities, communications, valuation and labor consulting. Its finance
group has provided valuation of fixed income and derivative products, while the
transport group has worked with airlines to assess the effect of airport regulations.
Though NERA specializes in financial and industrial consulting, its the firms
corporate litigation expertise that has fueled its growth.
Class action activity
In a business climate where class-action suits are rampant and both parties stand to
lose millions, expert witness testimony is becoming increasingly valuable. As
shareholder class action settlements set record highs, NERAs commercial litigation
savvy will likely continue to be called for in the courtroom. The firm advises on
dispute resolution and avoidance, analysis of economic impact testimony and
shaping litigation strategies for companies.
NERA is often retained by manufacturers who are targets of class action lawsuits.
Consultants have given expert testimony in asbestos, tobacco, chemical, medical
device and automobile cases. Whether predicting the validity of a claim or projecting
the path a line of claims might take, consultants address strategies for clients before,
during and after litigation. NERA also publishes an annual study on shareholders
class action settlement trends. The firms latest study, Recent Trends in Shareholder
Class Action Litigation: Beyond the Mega-Settlements, Is Stabilization Ahead?,
published in April 2006, showed that from 1996 to 2005, shareholder class action
value jumped from $9 million to $26 million; the firm predicts the trend is here to
stay. A 2004 study showed the average public corporation faces a 10 percent
probability of facing at least one shareholder class action lawsuit over a five-year
period. The study revealed that the average settlement value topped $25.8 million in
the first half of 2005, even excluding whopping settlements from WorldCom, Enron
and Cendant. As a firm that provides material used for expert testimony in litigation,
NERA is recognized for being independent and unbiased when it comes to hard-
hitting economic analysis.
Backed by brains
NERAs consultants are largely economics PhDs, former academics and prolific
experts in their respective fields. Staffers share their knowledge on current market
matters through monthly trade publications and newsletters put out in every practice
area of the firm. In March 2006, NERAconsultants published a study outlining the
potential for nuclear power capacity in the U.K. In the February 2006 issue of the
firms publication, Antitrust Insights, one of NERAs VPs discussed how economic
analysis can be informative in criminal cartel cases. Other industry publications such
as Energy Regulation Insights and Global Antitrust Weekly highlight consultants
latest thinking on hot button issues of the day.
In 2005, the firm named its first new president in 18 years, Dr. Andrew S. Carron,
previously chairman of the securities and finance practice. Before joining NERA,
Carron spent time at CSFB in New York and London, Lehman Brothers and The
Brookings Institution. Dr. Carron holds a BAin economics from Harvard University
and an MA in philosophy and a PhD in economics from Yale University. NERAs
prior president, Dr. Richard Rapp, who led NERAthrough six-fold revenue increases
during his tenure, took on the role of chairman in January 2006.
Going once, going twice
NERA is again ready to power up in the industry where it first got its start: energy.
The firm will run an online auction in September 2006 to offer electricity at
wholesale price for customers of Illinois utility companies Ameren and
Commonwealth Edison. The firm will manage the bidding process for procurement
of up to 28,000 MW to serve retail customers in the area to span several years. In
February 2006, the firm launched www.illinois-auction.com, a web site where power
suppliers can learn how to bid to challenge the current suppliers rates. NERA
developed a descending clock energy auction, a type of reverse auction where
participants bid to supply power instead of buy it. As the clock ticks, the price of
power drops when excess supply is offered.
NERAwas also hired by the Public Utilities Commission of Ohio in April 2006. The
firm will host an auction to secure wholesale power for Ohio customers during a two-
year period beginning in 2007. Bidders in northern Ohio will attempt to undercut the
areas current supplier, First Energy. As the energy market faces deregulation, these
auctions have the potential to spark a trend.
GETTING HIRED
Joining the economic leagues
NERA is looking for smart, statistically-savvy candidates with a yen for
microeconomics. On its web site, the firm provides information for both undergrads
looking to join the firm as researchers, and PhDs who want to try their hand at
consulting. The firm provides a list of campus recruiting events online, too, and says
it can also be found recruiting at annual AEA/ASSA events. A source notes that
while the firm typically recruits from a limited number of first-tier schools, NERA
staffers can also hail from a variety of undergraduate programs, which is a testament
to NERA HR personnels commitment to open-minded and generous consideration
of candidates with various backgrounds.
Insiders tell us that candidates at all levels can expect two rounds of interviews,
altogether meeting with up to seven interviewers for at least 30 minutes each. One
consultant sums up: For undergrad hires, we typically interview on campus and then
have a fly-out at each office for which we are considering a candidate. For new
PhDs, we will typically interview at the AEA and then at the offices for which each
candidate is considered. The source adds that for undergrads, One should expect
questions on math, statistics and/or economics, and should be able to demonstrate
that they truly mastered the areas that they studied, while at the senior level,
questions tend to focus more on the job market paper and on long-term career
goals.
Probability questions? Probably
Sources advise candidates that questions really vary depending on the interviewer.
No two people I know have had the same types of questions, an insider says. We
do not do case interviews, but you can expect to be asked about your experiences
working with data or performing some kind of quantitative analysis, notes a
colleague. Another source reports that questions tend to be more mathematically-
based than case-based; [the interviewer] might ask, for example, how you would try
to model a certain stock or event. One interesting, but common question is finding
a missing number from one to 100 in an unsorted list, an insider adds. Afinal bit of
advice for prospective NERAcandidates: Know your econometrics, be friendly and
not arrogant. Remember that everyone who interviews here is smart, so its
important to be pleasant. Know the firm well, and why you want to work here.
OUR SURVEY SAYS
Appropriately laissez-faire
If youre a student whos not quite ready to leave the hallowed halls of academia,
NERAmight be just the sort of firm youre looking for. Insiders repeatedly describe
the firms culture as academic, a place where one gets ahead by coming up with
intelligent solutions, and politics and aggressiveness get you nowhere. NERA,
although one of the largest economic consulting firms, has maintained its small firm
feel, allowing employees across all ranks to interact with upper management.
Everybody counts and everybody is recognized as a valuable team member, an
insider reports. As befits an economic consulting firm, the culture is very laissez-
faire, says another source. You can listen to your iPod while working, which is
nice. Outside the workplace, more efforts are underway to institute company social
events, but NERAhas some work to do on that front.
Nerds rule!
With a culture characterized as laid back, supportive, friendly and collegial,
NERA nonetheless operates as a two-tiered system, with a ruling class generally
made up of PhDs (referred to in NERAparlance as seniors and described by some
as a bit dorky), supported by a league of junior research analysts and associates.
The seniors at the firm are not only absolutely brilliant (PhDs, former professors,
etc.), but they are extremely friendly and accessible, comments a consultant.
According to another insider, The structure here is more academic. The 11th-hour
term paper approach prevails. The PhDs run things, and it is their credibility and
professional reputation on the line. Everyone below them works to ensure that this
is maintained.
Opinions vary about just how sociable more junior staffers are at NERA. Junior
staff are friendswe hang out inside and outside of work; senior staff, for the most
part, are very pleasant and very friendly, a source tells us. The best thing about the
culture here is the youth of the firm. About half of the employees are under 26, says
another insider, who adds, However, the junior staff do not generally get much
respect from the senior staff. Theres a general attitude that junior staff are
expendable and are not generally treated well by midlevel management. Indeed,
another NERAstaffer reports, Juniors are overworked and under-rewarded for their
work. Turnover is extremely high. Personalities are excessively economist-like. A
sense of humor is considered an undesirable quality among most seniors.
Winning the boss lottery
This may all boil down to what one NERA analyst calls the boss lottery. It all
depends on whose group youre in, a source comments. There are different groups
within each practice, and each group has its own culture, which can vary widely from
group to group. For instance, there are some that are outright unpleasant. You just
cant know these things when youre interviewing thoughso its pretty much luck.
A colleague agrees, adding that there is little interaction across practices so, on
occasion, the environment may feel cloistered. Another insider describes these
separate groups as being run like little fiefdoms, adding, You will not be doing
much work outside the group youve been assigned to, and therefore your work/life
balance will depend on what group youre in, and to a lesser extent what case(s)
youre working on at any given time.
On a school schedule
The firms academic leanings are also reflected in the pace of work at the firm,
sources say. For the most part the balance is manageable, says a consultant, noting
that because much of our work is litigation driven, however, sudden deadlines do
pop up requiring long hours. The balance is analogous to that in school. When
midterms/finals are approaching, work seems to take over; otherwise, things are
pretty good. Other sources agree, explaining that you have to be flexible about
mid-week plans, because with no notice you might have to stay late, but I rarely work
weekends, and with the exception of occasional busy weeks that occur close to
project deadlines, work/life balance is extremely stable and consistent. Sources
report an average of 40 to 60 hour workweeks. Work hours are generally good, but
if hours are minimal, generally assignments are boring, one insider asserts. Longer
hours usually accompany more interesting and pressing assignments.
As for flexibility, a source notes, Seniors are generally understanding about
important family commitments or vacation if given advance notification. Another
consultant appreciates that I could take an eight-month maternity leave and, after
that, I came back to work on a four-day week. Even though I chose what day of the
week would be my day off, I can take a different day off if I need to. I have also
never had any trouble taking vacation time whenever I wanted to, another insider
chimes in. There are always exceptions, howeveragain, depending on which group
a consultant lands in. As one overworked source grumbles, I have let
responsibilities at home (cooking dinner, cleaning, spending time with my youngster)
slip drastically since coming to work at NERA. I also have no time in my day for a
personal exercise schedule because of the time I spend at the office.
Painless travel
Still, you dont hear too much complaining from NERAconsultants about relentless
travel schedules. When it happens at all, one source says, travel comes in clusters,
and can be light for a long time, then all of a sudden youre traveling a lot for a short
period. Whenever travel is of concern, the firm has provided the basics to make
travel as painless as possible, another consultant notes. Most sources agree that
theyre lucky to spend a minimal amount of time on the road. As one insider sums it
up, The minimum amount of travel that NERA requires is just another factor that
helps the great work/life balance.
A tale of two tiers
Advancement at NERAis actually quite humane, one consultant tells us. We give
people many chances to find a niche, too many sometimes. If you cant make it work
here, odds are you arent cut out to be a consultant. The promotion path generally
reflects the firms overall two-tiered system, insiders say. As one source explains
it, There are research associates who just came out of college (mostly Ivies and good
state schools) and there are consultants who just came out of grad school (almost all
seem to be from either Harvard or Yale). Research associates rarely move up to the
consultant position without getting a PhD in economics, so as an RA, youre
essentially expected to stay for two or three years and then leave. Another source
agrees that few junior staff advance into the senior ranks without an advanced
degree, but adds that the firm is not up-or-out: Staffjunior or seniormay
plateau and stay, although compensation will stagnate.
At the PhD level, consultants are expected to move up to VP within seven years,
while good BA/BS-level employees should expect to be promoted yearly, another
insider says. But advancement up the NERAladder is not as quick as I would like
it to be, a source urges. It seems that once youve reached the analyst position, it
takes a very long time to move up, and it can take forever to become a consultant.
As another source explains it, While in the beginning, most of our staff climb the
ladder together, after a few years, certain staff start to climb more quickly. It is driven
in part by the amount of money the firm feels comfortable billing a client for an hour
of your work. The more efficient, diligent and independent you are, the more you
can bill, and thus the faster you climb.
Economically sound
When it comes to compensation, one insider describes a consulting position at NERA
as one of the best bang for your buck jobs. While salary is definitely below
investment banking and management consulting to a degree, a colleague notes, I
get to have a life, which is worth more than a bigger bonus. And research associate
positions are compensated well, in comparison to other entry positions at very well
known management consulting firms, another source contends. NERA is very
good in compensating its employees for their effort, a consultant agrees, adding, I
started at a much lower salary two years ago, and because I have been doing very
well, my salary had already gone up by 50 percent a year-and-a-half later.
Overall, theres a sense that NERA plays fair with compensationperhaps to be
expected from an economics-focused firm. Generally, in over 10 years, NERAhas
never short-changed me, an insider says. Another source reports that it is relatively
easy to anticipate your bonus toward the end of the year. So, there are typically few
large surprises.
Still, one of NERAs financial perks, the stock investment plan, is now seen as kind
of a joke since the firms parent companys shares have plummeted. Fringe
benefits compensation has eroded, a consultant grumbles. Stock option grants and
stock purchase plan benefits have been reduced, health insurance premiums have
risen dramatically, and retiree pension and health insurance benefits have been scaled
back.
Dinner and a show
But NERA does offer plenty of everyday perks, a New York-based source notes,
including free dinner up to $25 if you stay past 7 p.m. and a free car ride home if
you stay past 9 p.m. The source adds, Beyond that, through MMC, you get free
admission to all New York museums and heavy discounts to Broadway productions.
Random perks include free Knicks tickets and the like. They also pay for the CFA
exam (or any other studies related to your work), which is big. Asource in another
office appreciates the free pop, orange juice and bottled water in the refrigerators,
noting that food is always circulating around the office, and staffers enjoy random
drinking hours scattered throughout the year. In addition, theres a Friday casual
dress code in effectyes, you can really wear jeans, an insider reports.
Does NERA need a new cleaning crew? Staffers from White Plains to Chicago
complain about messy offices that could use some maintenance. To other sources,
though, These are just your average corporate offices, with cubes galore for the
researchers, offices for the seniors and offices with nice views for the very
senior. In addition, offices are found in high-profile buildings in major cities,
such as Bostons Hancock Tower.
Mentors and teachers
Consultants muster great praise for supervisors at NERA. One source raves that his
supervisor is like a mentor. He makes sure I am visible in the senior management
level. This certainly will help my upward mobility. A colleague reports, My boss
encouraged me to participate in calls with the CFO of one of our latest clients. He
seems to truly want to see you step out on a limb, try something new (even if it
involves risk), and develop yourself. Many consultants and officers are former
professors and thus have a very strong inclination towards teaching, another insider
says, adding that professional development is very highly emphasized.
Get your skills here
This professional development sometimes takes the form of training at NERA,
though the firms formal programs get mixed reviews. One Philadelphia-based
consultant says, Informal training is excellent. However, as Philadelphia is a small
office, we sometimes get neglected when it comes to formal training sessions, and
another staffer remarks that there is very little professional development after the
first year. However, a colleague notes, the firm is improving: Most of the training
is on the job, however NERAhas been working hard to improve the formal training
programs. In fact, within the last two years, the professional development team was
expanded to include a member whose primary responsibility is training. The source
adds, Different cases require different skills. For example, on an econometric case
I learned how to program in three different languages; two of which I never touched
again. Therefore, formal training is difficult because not everyone requires the same
skills (outside of the basics Excel, Stata/SAS, Access).
New NERAhires go through a one-week orientation with other newbies at a hotel in
New York over the summer, a source explains, where you dont really learn
anything, but you get to know everybody. After that, theres a two-day intensive
training session when you start the job, where you learn a ton. There are also weekly
hour-long training presentations for the first few months on the job. Beyond that, the
other researchers are all really helpful, so getting acquainted with the job is not at all
a difficult process. Personally, I felt comfortable performing all my tasks within a
matter of weeks.
Equal rights prevail
According to one insider, NERA is one of the few firms I have worked at where I
feel that women are put on an equal playing field as men. There are a lot of females
in senior positions, too, so you know that the firm is open to promoting women. A
colleague adds, I dont believe there are any formal programs, but everything I have
seen has shown that we hire, promote and mentor women equally with men. And
the firm does strive to offer flexibility for women with families, another source says:
My firm offers flexible work schedules allowing women with children to adjust
their schedules so that they can spend some part of the normal workweek with their
families.
Sources are split on just how great the minority presence is at NERA. While one
insider states, NERA needs to work on minority recruitment, but this may be an
economic consulting thing, another notes that there is a very large minority
population. In addition, the insider says, There is a general buddy program for
hires that are recruited during the regular season. The firm is especially diverse in its
recruitment of internationals. I believe that the majority of the workers here are first-
or second-generation Americans.
The firm doesnt offer formal programs for gay and lesbian staffers, either, but theres
no sense of outright discrimination among staffers. Sexual orientation has never
come up in any discussion I have ever had concerning the quality of a colleague. I
know there are gay and lesbian officers in the firm, a consultant says. Still,
homosexuality is kept pretty quiet at the firm, and no one brings a same-sex
partner to conferences, etc., an insider adds. Another consultant claims that the
GLBT community is invisible here at NERA. Although there are many gay
employees here, it seems to be encouraged by the company that this aspect of ones
life seems better left undisclosed and not talked about.
Top-down community service
Opportunities for community service are mainly offered through parent company
MMC, which also offers some corporate matching programs. MMC sponsors a
program for reading with school children, but other than that, community
involvement is not specifically encouraged, an insider reports. At NERA itself,
community service is not discouraged, a source says, but at the researcher level,
it is not promoted all that much.
The seniors at the firm are
not only absolutely brilliant
(PhDs, former professors,
etc.), but they are
extremely friendly and
accessible.
NERA Economic Consulting insider
100 Summer Street
Boston, MA 02110
Phone: (617) 457-7500
Fax: (617) 457-7501
www.cambridgeassociates.com
LOCATIONS
Boston, MA (HQ)
Arlington, VA
Dallas, TX
Menlo Park, CA
London
Singapore
PRACTICE AREAS
Asset Allocation & Investment
Policy Development
Investment Planning
Manager Selection & Oversight
Performance Monitoring & Reporting
Services
THE STATS
President & CEO: Sandra A. Urie
UPPERS
Very friendly workplace
Job security
DOWNERS
Salaries on the extremely low
end
Lots of hours
EMPLOYMENT CONTACT
E-mail:
resumes@cambridgeassociates.com
Cambridge Associates LLC
V A U L T
P R E S T I G E
R A N K I N G
23
THE BUZZ
Strong industry knowledge
Specialists
Small player
Analysis overload
THE SCOOP
Taking stock
Cambridge Associates provides its clients with advice on alternative assets; help with
complex financial transactions; access to proprietary research and databases; and
outsourcing of endowment oversight. The firm arose out of a partnership between
James Bailey and Hunter Lewis, who were Harvard roommates in the 1960s. They
were asked in 1973, while finishing their advanced degrees, to review the investment
strategy behind their alma maters endowment. The relationship between the two
proved to be so fruitful that Harvards endowment became the largest in the country
(beating out even the oil-funded University of Texas) within six years. Bailey and
Lewis, with Harvards blessing, went on to provide their independent consulting
services to other educational institutions. Most colleges endowments were feeling
the burn after the market tanked in late 1973, and they desperately needed Cambridge
Associates help. News of the firm spread between troubled college treasurers, a
trend which has continued to this day: Much of CAs business is still recommended
by established clients.
Fast forward 30-odd years: Cambridge Associates has retained its initial dozen
clients, and added a few more. Almost three-quarters of the endowment funds for
colleges and universities in the U.S. are controlled by Cambridge Associates. The
firm advises schools such as Harvard University, Mount Holyoke College, Cornell
University, and over 170 others. The firm also counsels nonprofit institutions,
foundations, and governmental and pension endowments in the U.S. and abroad on
how best to shepherd their greenbacks. Notable nonprofits the firm works with
include the Conrad Hilton Foundation, which sought CAs help in diversifying its
assets in January 2006, and the Knight Foundation, which outsourced the
management of its endowment to the firm in April 2005.
Allocation, allocation, allocation
CAis the go-to firm for people who dont want all their financial eggs in one basket.
The firms investment policy strategy stresses asset allocation, with an emphasis on
diversification with such alternatives as traditional and clean energy, real estate,
hedge funds and distressed debt. Cornell University, one of the firms clients, is
currently in the process of moving more of its endowment money into private equity
and natural resources. In addition, many institutional investors have been contracting
out the oversight of their funds to Cambridge Associates and similar firms, due to the
Cambri dge Associates LLC
difficulty of finding and retaining skilled staff and to avoid legal complications.
Although the auditing and regulation provisions of the 2002 Sarbanes-Oxley Act do
not strictly apply to most of the clients CAserves, several states have passed laws that
create more stringent rules regarding the transparency of accounting practices for
nonprofits and foundations.
Home on the range
In October 2005, the firm expanded with the addition of an office in Dallas, Texas.
The new digs will be in an area that will enable the employees to rustle up some local
business, as well as be closer to its 40 established clients there. The firm will keep a
close eye on local investment managers, many of whom are concerned with
alternative investments and energy funds. Alternative investment funds can be the
hairiest parts of a portfolio due to a lack of indexed options and large variations in
fund managers abilities; however, they can also contribute attractive returns on
investments. Despite the rising cost of crude oil, some companies in the sector still
posted healthy profits in 2005.
Many happy returns
Cambridge Associates emphasis on diversification allowed the University of
Minnesota to arrange its bucks for significant bang. The schools conservatively
distributed endowment suffered a severe mauling in the bear market and lost nearly
half its value between 2000 and 2002. In October 2002, the increasingly
impecunious university realized it had to reverse the downward slope of its
investments and put investment banker Stuart Mason on the case. Mason then hired
Cambridge Associates. Despite some resistance from the Minnesota dons, CA and
Mason eventually prevailed upon the school to move a portion of its funds into a
more aggressive investment position with significantly more money in alternative
assets. By January 2006, the endowment had again reached pre-2000 heights. The
firms accomplishments have not fallen off the radar. In October 2005, Cambridge
Associates was inducted into the Dow Jones Private Equity Hall of Fame in
recognition of its contributions to its field.
The fine art of money management
In addition to its work with institutions and nonprofits, the firm manages the
endowments for a number of arts organizations. In January 2005, the Knight
Foundation, a supporter of journalism and free press, selected Cambridge Associates
to oversee the investment of the foundations $1.9 billion endowment. CA has now
served as Knights investment consultant for 19 years. In December 2004, CAbegan
helping the Fresno Metropolitan Museum with projected costs and funding for its
new arts and sciences building. Also in 2004, the Art Institute of Chicago reported a
more than 17 percent return on its investments; the Institute and Cambridge
Associates have worked together since March 2002.
Minding the data
The firm maintains its own stable of researchers and its independent research
department churns out over 100 reports each year, in addition to maintaining
proprietary databases. Researchers calculate indices, two of which are published in
Barrons, which tracks the performance of over 2,000 venture capital and private
equity funds. They also watch, evaluate and quantify the performance of actively
managed funds, interviewing and visiting 400 hedge fund managers each year. The
research department also provides benchmark statistics for figuring returns on
venture capital funds, funds-of-funds, real estate and other alternatives to public
stocks.
GETTING HIRED
Find it online
Job seekers interested in positions at Cambridge Associates will find detailed
descriptions of what it means to work in any of the firms four business areas
consulting, research, performance measurement and support servicesin the careers
section of the firms web site. Candidates can read about the principle duties and
required qualifications for just about every position that exists at the firm. Also on
the site, there are links for submitting resumes for consulting and consulting associate
positions, and theres an FAQ section with information about Cambridges recruiting
schedule and locations. Youre likely to see some of the firms recruiters at such
schools as Harvard, Wellesley, Brown, Dartmouth and Boston College, sources
report. For those who catch a recruiters eye, the initial interview is very informal,
say insiders, while second-rounds are a little more intense and involve a small
case study.
OUR SURVEY SAYS
Good times
Cambridge Associates has a wonderful company culture, according to insiders. It
is a very young environment, says one source. Most new employees are at most a
year out of undergrad. This can make for a very friendly workplace. The flip side
of that, according to some staffers, however, is that there is a severe lack of
professionalism on the individual relationship basis. There is a greater emphasis on
drinking after work than doing great work while at work. Still, a gig at Cambridge
Associates can be a very positive experience if you want it to be, says a consultant.
Its a great introduction to every facet of the investment industry and you gain
knowledge on every possible asset class. There are also opportunities to join various
teams within the department. And, thanks to Cambridges position as the industry
leader, and because the firm continues to gain domestic and foreign market share,
sources claim, employee morale across the company is high.
Invulnerable to change
Insiders say there is a set career path at Cambridge. However, according to one
source, It is viewed that after getting the management or the senior associate
position, there is little to be gained other than headaches in the analyst role. For
those who like job security, however, this may be the place: Its nearly impossible
to get fired, says one source. If anything, they need to hire more individuals, so once
hired you can stay as long as you would like. On another positive note, The client
base also makes the company invulnerable to changing markets, says one insider,
who notes that Cambridges extremely niche focus makes it rare that individuals
leaving the company stay in the investment-consulting field.
Some insiders say the hours at Cambridge can be very stressful, with one source
stating, For a month-and-a-half out of every three, you are stuck in the office from
sunup to sundown, six to seven days a week. Despite this, one insider says, the
salary is on the extreme low end, and rather than bonuses at the end of each busy
cycle based on performance, they will bring you out to a department lunch or
something equally unmotivating.
Most new employees are
at most a year out of
undergrad. This can make
for a very friendly
workplace.
Cambridge Associates source
John Hancock Tower
200 Clarendon Street, T-33
Boston, MA 02116
Phone: (617) 425-3000
Fax: (617) 425-3132
www.crai.com
LOCATIONS
Boston, MA (HQ)
PRACTICE AREAS
Antitrust Economics Auctions & E-
Commerce Business Strategy
Capital Projects Commercial
Litigation Damages Employment
& Labor Litigation Environmental
European Competition Policy
Finance & Accounting Forensic
Accounting Forensic Computing
Intellectual Property International
Trade Market Analysis Mergers &
Acquisitions Product Liability
Survey Research Tax Litigation
Technology Management Transfer
Pricing
THE STATS
Ticker Symbol: CRAI (Nasdaq)
President & CEO: James C. Burrows
2006 Employees: 667
2005 Employees: 550
UPPERS
Nonpolitical culture
Flexible work hours
DOWNERS
Feels a bit fragmented
Very little formal training
EMPLOYMENT CONTACT
www.crai.com/careers
CRA International
V A U L T
P R E S T I G E
R A N K I N G
24
THE BUZZ
Solid competitor
On a roll, up and coming
Stab-em-in-the-back culture
Little organic growth seems to
focus on stock performance a bit
too much
THE SCOOP
Economic expertise and more
With a combination of economic smarts and legal savvy, CRAInternational packs a
powerful punch. Some of the most high-profile litigation in recent years has drawn
on the expertise of CRAs 667 consultants, from the Justice Departments antitrust
case against Microsoft Corp., to the dispute between retailers and Visa and
MasterCard over debit card policies. With more than 4,400 engagements under its
belt, the firm serves clients in law and accounting firms, domestic and foreign
companies, utilities companies and government agencies.
Founded in Boston in 1965, CRAformerly known as Charles River Associates
grew slowly but steadily until its successful 1998 IPO. In recent years, the firm has
declared its intention to grow both organically and through strategic acquisitions.
These acquisitions, in turn, have expanded CRAs global reach. In May 2005, the
firm officially changed its name from Charles River Associates to CRAInternational,
a move designed to reflect the consultancys global presence in the economic,
financial and management consulting industry.
By leaps and bounds
CRA expanded into the Middle East in 2002, following its acquisition of Arthur D.
Littles energy consulting practice in the U.K. The year 2004 saw CRA surge
forward with an ambitious growth initiative, driven largely by the acquisition of
intellectual property and commercial damages consultancy InteCap, a deal that made
CRA one of the nations leading consultants in intellectual property litigation. That
same year, CRAacquired two smaller firms, Tabors, Caramanis & Associates (TCA)
and Australia-based Network Economics Consulting Group. With just those three
purchases, CRA added 178 consultants to its ranks, as well as offices in five new
locations.
The firm continued its shopping spree in the past couple of years. In May 2006, CRA
announced its acquisition of The Ballentine Barbera Group LLC, a consulting firm
specializing in transfer pricing services, for about $22.7 million. The move, which
added 35 staffers, reflected CRAs plan to add businesses that complement its core
capabilities while expanding its U.S. and European reach, the firms execs said. In
April 2005, CRA acquired Lee & Allen Consulting Ltd., a London-based consulting
firm offering financial dispute resolution and forensic accounting services to the
CRA I nternational
corporate, legal and regulatory markets. Also in 2005, CRA completed the
acquisition of the former Lexecon Ltd. consulting firm, a U.K.-based company
specializing in economic consulting.
The firms flurry of acquisitions has been complemented by a strong demand for its
services recently, thanks in part to increased merger activity and a rise in financial,
securities and antitrust oversight and litigation. The numbers have certainly reflected
this demand: For fiscal year 2005, the firm reported a revenue of $295.5 millionup
a whopping 36 percent from 2004. Nearly all of the firms litigation and business
consulting practices saw growth, CRA said, with international revenue increasing to
26 percent of total earnings for the year. And in mid-2006, the firm reported a surge
in business, partly due to high energy prices, which led to a greater demand for
consulting work in the Middle East. But despite the cheery news, CRAannounced it
had closed its Mexico City office, which had been unprofitable.
A diversified portfolio
CRAhas served clients in every major industry. The consultancys areas of expertise
include aerospace and defense, chemicals, consumer products, energy and utilities,
financial services, health care, technology, manufacturing, petroleum,
pharmaceuticals, telecommunications and media, transportation and government
contracting. This diversity enables CRA to maintain growth despite ups and downs
in any particular areaas markets in the volatile Middle East wax and wane, for
instance, the firm can count on steady demand for its services in other industries and
regions.
The antitrust name to trust
CRAs powerful reputation is reflected in engagements. In early 2006, the firm
successfully completed its economic and transfer pricing analysis for Hallmark
Marketing Corporation, which had been engaged in a dispute with the New York
Division of Taxation. Thanks to CRAs services, the New York State Division of Tax
Appeals ruled in favor of Hallmark Marketing. The firm also proved itself in its
September 2005 work for Sprint and Nextel. While planning to merge in a $35 billion
deal, the telecom giants had to plead their case before both the Federal
Communications Commission and the Justice Department. CRAs consultants
produced reams of empirical data showing that the benefits of the merger outweighed
any antitrust concerns. The firms work was enough to sway the feds, who
specifically cited CRAs research in their approval of the deal.
CRA I nternational
Study savvy
CRAoften can be found producing research that tackles some of the hottest issues at
the crossroads of business, economics and law. In May 2006, the firm got attention
for a study commissioned by European mobile phone operators, who were battling a
proposal that would require them to charge the same amount for international calls as
for domestic calls. CRAs study found that such a plan would prove costly to the
telecom industry, forcing it to provide roaming services at below cost. In spring
2006, the firm published another study, backed by the accounting industry, showing
a sharp decline in fees charged to companies for complying with provisions of the
Sarbanes-Oxley corporate reform legislation. Though small businesses had
complained of the high cost of the law, prompting the Securities and Exchange
Commission to consider exempting some smaller public companies from the rules,
the Big Four accounting firms argued that the costs of compliance were on a
downward trend. With its controversial report, CRA went to the mat for its client,
garnering plenty of buzz in business pages such as The Wall Street Journal.
Executive moves
In June 2005, the firm announced some executive-level moves, including the
promotion of CFO J. Phillip Cooper to the new position of vice chairman and
executive VP. The firm tapped Wayne D. Mackie, a 30-year veteran of Arthur
Andersen LLP and former head of the firms technology practice in Boston, to
succeed Cooper. The creation of the new position, the firm said, highlighted CRAs
rapid growth and increasingly global reach.
CRA consultants are a brainy bunch, with over half of the firms staff holding
advanced degrees. The firm describes itself as extremely selective in its hiring
practices. Many of its consultants are nationally recognized experts in their areas,
publishing articles, lecturing and serving as sources for the business press.
GETTING HIRED
Good things come to those who wait
CRA Internationals emphasis on teamwork becomes apparent, starting with the
interview process. All current consultants must agree to interview potential hires,
says one insider, adding, Our work environment requires teamwork and team
players. The firm seeks out candidates at better colleges in locations near offices,
CRA I nternational
including top-end MBA and economics PhD programs. In trying to score an
interview, one source offers a tip: Each office is largely responsible for its own
recruiting, so make sure you target what practice you are interested in pursuing and
figure out in which office it is centered.
Recent grads are recruited on campus first through an interview with a CRA
consultant, say sources. Then, explains a colleague, Promising candidates are
brought into a super Saturday interview process of four interviews (two cases, one
quant, one fit) and lunch. Lunch is part of the interview and can be a critical
success/failure factor, as we observe how you interact in a group setting with your
peers. The firm notes that the types of interviews depend on the practice you are
interviewing with but it is usually a mix of case, quantitative and fit interviews.
Candidates for senior staff positions often have to make presentations. One source
says CRAs two rounds of interviews tend to be your usual mix of case studies and
personal interviews. Knowledge of the practice you are likely to join is important,
says a consultant. You dont have to be an expert, but you do need to be aware of
whats going on. Needless to say, your business skills have to be flawless. And
remember, an associate adds: Patience is a virtue, because total process time from
first interview to offer letter was seven months (and that is considered quick by CRA
experience). However, the firm notes that it has decided to hold second-round
interviews earlier in November so that the total process for analysts and associates
should be, at most, two months.
OUR SURVEY SAYS
CRA University
CRAhas a distinctive academic feel, insiders report. The firm is filled with bright
people who are not overly aggressive. One consultant claims, The intellectual
caliber of people working [at CRA] is very large. Almost all senior staff have PhDs
or MBAs, and many academics are associated with the firm and work with us. The
culture is collegial, but also affords its employees some measure of autonomy.
The firm has respect for you as an individual, your education and your experience,
adds a source. In addition, were told, CRA is a strong meritocracy, emphasizing
high-powered analysis, facility with data-intensive modeling and capability to write
about complex matters succinctly.
CRA I nternational
On the same team
Although CRA expects a lot from its consultants, the firm does not have the
cutthroat or eat-what-you-kill mentality of most management consulting houses,
says one source. There is a sense of real teamwork and collaboration, rather than
teamwork being a code word for how I get you to do the work that Ill take credit
for. Another insider agrees: Unlike in some companies, the feeling of hierarchy is
muted: Theres no us and them between junior and senior staff. An associate can
approach a VP whenever they like if they need to, be it for work reasons or personal
development.
Dont get moldy
CRA is not strictly up-or-out when it comes to promotions, but more, grow no
mold, an associate expresses. Sources report that subpar performers are quickly
weeded out, and average performers (average among a stellar group) will stagnate at
middle ranks. But one insider expresses his approval of that policy: People
advance at their own pace and to their own level. If someone opts out of chasing the
golden ring, that decision is respected, and if the person is a good contributor, every
effort is made to retain [him/her]. Overall, sources say the firm provides good
opportunity to stand out and a fast-track career path if one deserves it. Heres
something to keep in mind, though: CRAhires a lot of PhDs, as well as MBAs, and
in some practices, an MBA is going to have to overcome a strong bias toward PhD
staff.
Master of your domain
Employees also are largely in charge of their own destiny when it comes to hours.
There is a lot of trust in the employees, says a source. Youre expected to get the
job done on time, but how you choose to do so is largely up to you. You could come
in at 8 a.m. every day, or leave at 5:30 p.m., just so long as you deliver a top product.
Most consultants log 50 to 55 hours per week, with the average project lasting three
months. And, as one consultant says, The hours are flexible, and I can work from
home. Indeed, agrees a co-worker who relates his work/life balance to being the
master of my ship. CRA doesnt care where Im sitting as long as the work gets
done. So some days Ill work from home or a coffee shop with a wireless connection
and Im never asked where were you? the next day. Although deadlines make it
tough sometimes, most insiders agree that flexible work arrangements alleviate
some of the pressure.
CRA I nternational
The firm also empowers its employees to make their own decisions regarding travel.
One insider says the best aspect of CRA from a lifestyle perspective is that I have
broad discretion over when and how long I travel. Thus, I have the ability to block
out weeks on the calendar at home, and work rarely collapses. Plus, clients seem to
dig that we arent in their hair all the time. The number of days per week spent
traveling varies, with some saying they spend as many as four days per week on the
road and others reporting that most weeks, they dont travel at all. I may travel five
to 10 days a year, says one source, who adds that travel requirements for work have
minimal to no impact on my life. Another source, who travels more frequently,
claims, Travel enhances work life. I am often more productive while traveling.
Project pitfalls
CRA staffers really care about the work they do. I have never seen another
consulting firm truly focused on helping a client, says one source. Most other
consulting houses are more focused on just finishing the project and moving on to the
next. Others claim that CRAs fast-paced, dynamic environment can be stressful,
at times. Work on time-critical, complex litigation and similar projects can develop
into a pressure-cooker environment with inadequate project management, a
consultant reports. Another agrees, saying there can be spotty project
management. As a result, things can sometimes feel a bit fragmented because
some people dont know all the practice groups and people in the practice groups.
In addition, a colleague suggests, sometimes things are a bit slow to happen.
Sources also claim that there is not a lot of transparency around the project pipeline,
so some interesting projects are staffed before you knew they existed, which also
makes staffing your project difficult at times.
Pick up what you can
Employees give their managers positive reviews overall, despite some instances of
poor project management. Managers at CRA are supportive without forcing
conformity, says one consultant. Access to clients is reportedly variable,
depending on the project. In the litigation practices, access to clients is much more
restricted; in business consulting, [there is] variable access, explains an insider. A
colleague shares his personal experience with clients: Ive had more meetings with
CEOs in six months at CRAthan I did in three years at McKinsey (and the client base
is the same).
CRA I nternational
Those who are granted learning opportunities through clients and managers would be
wise to take advantage, since sources give the firm below-average marks on formal
training. Insiders say there is very little formal training at CRA. Instead, we
emphasis on-the-job training over formal training, a source notes. And even then,
hands-on learning during projects is variable, depending on project management, a
co-worker remarks.
Got you covered
CRAemployees seem to be satisfied with their compensation, and salary progression
at the firm is rapid, with frequent reviews, says one insider. In addition, End-of-
year bonuses can be a significant fraction of your annual salary, a consultant reports.
There is profit-sharing for everybody, a source relates, of about 2 to 6 percent of
annual salary, and vice presidents receive options or restricted stock. CRA also
offers 401(k) matching up to 6 percent, and grants employees 25 vacation days per
year, were told. One lucky consultant excitedly shares, I am able to take extensive
vacations. And employees receive full health care coverage for every dollar spent,
including deductibles. One insider says, Health care is relatively inexpensive and
has the best coverage of any place I have worked. At the vice president level,
employees explain, CRA staffers also enjoy free parking and covered cell phone
payments.
Liberally-minded
The firm is very aggressive in its attempts to hire women and minorities, but
insiders say it has had relatively low success in moving women and minorities into
the top ranks of the company. Still, sources say CRA is a very liberal company,
where sexual orientation is basically a nonissue.
And the firm takes out time for community involvement by organizing and
encouraging participation in three or four charity drives a year, including United
Way, fun runs and bike-a-thons. Sources say community grants are directed to
nonprofit organizations sponsored by employees.
CRA I nternational
124 Mason Street
Greenwich, CT 06830
Phone: (203) 629-9292
Fax: (203) 629-9432
www.marsandco.com
LOCATIONS
Greenwich, CT (HQ)
San Francisco, CA
London
Paris
Shanghai
Tokyo
PRACTICE AREAS
Exclusive Strategy Consulting
THE STATS
CEO: Dominique G. Mars
2006 Employees: 280
2005 Employees: 250
UPPERS
Open and transparent about
salaries
There is a lot of talent
DOWNERS
Minimal new hire training
High turnover of staff
EMPLOYMENT CONTACT
124 Mason Street
Greenwich, CT 06830
Phone: (203) 629-9292
Fax: (203) 629-3916
Attn. Francine Even
E-mail:
usg.recruiting@marsandco.com
Additional recruiting contacts
available at:
www.marsandco.com/index_en.html
Mars & Co
V A U L T
P R E S T I G E
R A N K I N G
25
THE BUZZ
Super selective, niche
Good advancement ops, but zero
work/life balance
Fast growing, aggressive
Cult of personality around D.
Mars
THE SCOOP
History, boutique
French-born and Harvard Business School-educated Dominique Mars left Boston
Consulting Group in 1979 to form this small, eponymous, strategy-oriented firm,
which he still runs to this day. Mars had become dissatisfied with the standard
business model of the consulting industry and was unable to steer his fellow BCG
partners toward being more selective when choosing engagements. He argued that it
was impossible to truly give a competitive advantage to a particular client when
serving multiple firmsoften in the same industryat the same time. Today, Mars
& Co calls itself the only consulting firm of any consequence to guarantee
fidelity, and claims that exclusive engagements are what differentiates it from
competitors. The firms client list is small and kept tightly under guard, but
interpolating some of the companys briefs, it can be surmised that clients number
about two dozen, and the company itself reports that most of these unnamed clients
hail from the Fortune 100 or international equivalents.
Halfway there
Although Mars & Co is small and exclusive, that does not mean it is without
ambition. Dominique Mars goal is to grow the company to serve 30 to 40 clients
and increase staff headcount from 280 to 450. The company is not shy about
reiterating this goal, and claims that the numbers show were now halfway across to
meet our goals and the winds at our back. Potential hires, take note: The company
is looking for talented grads at the undergraduate, graduate and MBAlevels.
The company began in Paris in 1979 and opened its first U.S. office in Greenwich,
Conn., in 1982, followed by London in 1986, San Francisco in 1994, Tokyo in 2000
and, most recently, Shanghai in 2005. The company has a one-office philosophy,
so theoretically, every consultant is available for every engagement; many teams are
made up of staffers based in different offices. Consultants at Mars can be staffed
anywhere around the world, either in one of its offices or sometimes at client sites.
Take me to your leader
Dominique Mars holds the reins of his company firmly, and no partnerships are
offered. The buck may stop with him, but one of Dominique Mars first moves was
to hire one of his former professors at Harvard Business School as the president of
Mars & Co
the firms U.S. operations. Dr. Malcolm Salter, who taught and helped develop a
wide variety of courses in the areas of corporate strategy, organization and
governance, brought with him his strategy expertise, as well as an impressive
corporate rolodex. Salter wrote Policy Formulation and Administration, a business
policy text and casebook, in 1985. He also has a forthcoming book, Innovation
Corrupted, about the collapse of Enron.
The art of war
Mars is a strategy consultancythough it does conduct detailed implementation
work when clients demand it. Says the firm, Mars & Cos birthright is its unique
ability to help clients clearly delineate the contours of their battlefields as well as the
dynamic positioning of their competitors. As strategists, Mars & Co focuses on
adding value to clients by helping them exploit the most attractive market
opportunities for profitable growth, gain leverage over competitors and deploy
resources efficiently.
Martian meritocracy
There are no partners or practice groups at Mars & Co. The firms hierarchy
consists of six positions, from associate consultant to vice president, and Mars is
fiercely dedicated to a meritocratic system, where those who work hardest (and best)
are promoted from within the organization, regardless of age or level of education
(read: lack of an MBA is not an impediment to advancement). All staffers get the
opportunity to work across multiple industries and functions, thus becoming well-
rounded business strategists.
GETTING HIRED
The importance of being structured
Mars takes hiring very seriously, sources say. Candidates are interviewed by
senior people, including VPs and project managers, says one insider who had six
interviews in two sessions. An associate explains that the interviews themselves
were fairly informal and did not contain usual preconceived case studies. However,
candidates should consider that interviewers often construct case studies uniquely for
each interviewfrom a CV or that days copy of the Financial Times. Because of
Mars & Co
this, states one consultant, the interviewee has an advantage, as he/she is likely to
know as much as the interviewer.
One candidate recalls a case study about a research project that I did at university
(about new forms of energy). He goes on to explain, The interviewer was asking
about the impacts on the economy of potentially everyone having access to free
energy. This turned into a very interesting chat about the world order and likely
changes in the economy. In this case, he says, the interviewer appeared more
interested in my ability to structure the argument rather than the content itself. In
a second case study, this candidate was asked to examine an article from that days
newspaper. There was an article about the Boeing and Airbus potential court battle
about the government subsidies. The interviewer was looking for me to give him a
high-level understanding of the issues, and then was asking for a high-level
understanding of different strategies of each manufacturer and potential impact on
the travel industry of adoption of larger planes. Again, the focus was on my ability
to structure an argument (rather than be 100 percent right on the content). The firm
claims that in its interviews, it is looking to understand how you think and how you
handle yourself during a case interview.
In addition to case studies, interviewers ask typical resume-related questions. We
look for capable people, says one source. And another offers a tip: Prepare quite a
few questions to ask. All the interviewers were quite engaged when asked about the
company and the future outlook.
OUR SURVEY SAYS
Numbers matter
Job seekers who arent good with numbers may want to consider a firm other than Mars
& Co (though the firm notes that it now offers analytical tool training for those in need).
One source says the culture is interesting, in a highly quantitative/analytical kind of
way. Probably the best piece of advice one can give you is: If you cant handle a lot
of numbers, stay well away from Mars & Co, asserts a co-worker. Seems like a good
tip, as another insider reports that employees at lower levels have no say in what
projects they get staffed onand any form of complaining is looked down on. This
fact may contribute to what one source says has been a high turnover of staff, which
seems to have been the story with Mars for a long time (since the mid-1990s), though
the firm adds that this is not unusual for the consulting industry. And while one
Mars & Co
consultant notes that there is a lot of talent in Greenwich, another says, High growth
is unlikely as it is very difficult to both grow the business and fill the holes left by
leaving employees.
Are you capable?
Speaking of growth, for those entering the firm, sources say, The promotions usually
come after about two years at a grade, although depending on how good the person
is, it can be as short as nine months or as long as four years. Another source adds,
Consultants advance as quickly as they are capable, and a colleague concurs,
saying, Mars is a meritocracy within reason.
Do it yourself
The high turnover rate at Mars & Co may be contributed to by the fact that new-hire
training is minimal, employees say, though the firm reports that it has been increasing
its efforts in this area, and has recently established an office of consulting services
to provide more training and support to those in need. According to one source, In
my year, we got four sessions of three hours (compared with other strategy
consultancies that get three to four weeks of a mini-MBA). Most of the education
thats offered by the firm is on the job, consultants report. Aconsultant suggests that
the trouble with this approach is that your acquiring of the skills depends on the
guys above you who you are working with. If they have not had a similar project
experience before, there is little that they will be able to teach you, as they will be
learning at the same time. More importantly, if there is a high turnover of staff in a
particular office (like it was in London), there are very few in-between senior people
who can provide detailed guidance to new starters. Another insider, apparently
happy with the level of training at the firm offers a different take: Most come to
Mars with 18 to 20 years of educational training. They should not require more. All
training is on the job.
Pay time
Salary bands, at least according to one employee in Mars London office, are quite
open and transparent. And, he continues, Every year there is an annual review with
a salary boost of about 10 percentif you are good; otherwise it can be as low as
zero. On the flip side, Bonuses are far from transparent and it is not at all obvious
how they are distributed, says another source. Mars can be quite generous and
award bonuses of 20-plus percent, says one insider, adding, More often, the bonus
Mars & Co
is in the range of 10 to 15 percent of the base salarynumbers, which, the firm
suggests, are typical for lower-level staffers. One employee received no sign-on
bonus, and insists that, the starting salaries are inflexible. As far as additional perks
go, Vacation time varies between offices and is related to local employment laws,
says one source. For example, In the U.K., it is 20 days, in the U.S. about 15, while
in France it was 35. The firm notes that it also provides fully-paid medical and
dental insuranceincluding vision and orthodontic coveragehealth club
membership and, in the Greenwich office, takes its consultants to lunch every Friday.
It depends
Hours at Mars & Co also vary. More often than not, the hours are around the 70-
plus mark, says one employee, who attributes the long hours to poor project
management skills. The source explains that this inefficiency inevitably leads to
many wasted hours of analysis to prove/disprove something that will only be dropped
at a later stage. Another source works an average of 55 hours per week if not
traveling, including about every other weekend.
And while hours seem to depend on managers and project deadlines, travel
requirements at Mars are unpredictable. You can calculate an average, but nobody
lives it. It can be 100 percent or 0 percent. This employee reports traveling one day
per week, and typically works on three-month-long projects.
Inverse proportions
One insider says that Mars & Co absolutely promotes work/life balance among its
employees: There is an inverse correlation to hours worked and quality of output,
which the firm apparently recognizes. It is interesting to note, though, that this
source also reported working an average of 26 weekends per yearnot a stellar
indicator of a positive balance. Another Mars associate contends with this source,
saying, There is an expectation that consultants put in all hours necessary (often
including weekends and sleepless nights) to get the results. Similarly, there is very
little respect for life outside the office. The firm remarks that one indicator of the
type of work/life balance it promotes is that in the Greenwich office, consultants
often take time off during the day to go to the gym.
Mars & Co
John Hancock Center
875 North Michigan Avenue
Suite 3000
Chicago, IL 60611
Phone: (312) 255-5000
Fax: (312) 255-6000
www.diamondconsultants.com
LOCATIONS
Chicago, IL (HQ)
6 offices worldwide
PRACTICE AREAS
Growth
Market Penetration New Business
Development New Growth
Operations Improvement
Execution Excellence Operations
Strategy Profit Improvement
Turnaround Management
Technology
Architecture Assessment & Strategy
IT Assessment & Strategy IT
Portfolio Assessment & Strategy
Outsourcing Advisory Security
Assessment & Strategy Technology
Program Management
THE STATS*
Ticker Symbol: DTPI (Nasdaq)
President & CEO: Adam Gutstein
2006 Employees: 449
2005 Employees: 415
* Diamond is now reporting FY
revenue and number of employees
only for continuing operations in
the US, UK and India.
UPPERS
Excellent intellectual property
Four weeks of vacation
Small, cohesive teams
Leaders are more engaged than at
most other consulting firms
DOWNERS
Staffing can be a bit of a mystery
to some
Lack of brand name recognition
Very political Highly depends
on who you know
Poor management at the project
level
EMPLOYMENT CONTACT
www.diamondconsultants.com/careers
Diamond Management &
Technology Consultants, Inc.
V A U L T
P R E S T I G E
R A N K I N G
26
THE BUZZ
Solid IT boutique
Little big man
In a downturn and high workload
Disjointed
THE SCOOP
A happy marriage
In November 2000, two firms came together to form a happy marriage of strategy and
technology consulting. The $930 million merger between Chicago-based Diamond
Technology Partners and Barcelona-based Cluster Consulting created
DiamondCluster International, a firm with a sparkling reputation for expertise in both
management and IT. In July 2006, however, the marriage effectively ended when the
firm signed a definitive agreement to sell its consulting operations in Continental
Europe, South America and the Middle East to Mercer Management Consulting.
Diamond will retain its consulting practices in North America, the U.K. and India,
which are core markets of strategic focus for the firm. Under the terms of the
contract, Mercer Management Consulting will acquire the stock of five of the
companys subsidiaries in France, Germany, Spain, Brazil and the United Arab
Emirates, in addition to the transfer of 150 Diamond staffers to its ranks.
Employing around 415 staffers, Diamond serves clients in six sectors: financial
services, insurance, health care, consumer-industrial products and services,
telecommunications and the public sector. The firm divides its services into three
categories, namely growth, operations improvement and technology.
Tough love
Like any marriage, Diamonds story has seen its share of ups and downs through the
years. As the tech services market softened, the firm lost financial ground in 2002,
while dealing with a number of challenges, including overstaffing, trouble integrating
Cluster personnel, and problems with closing a number of important deals. Pay was
reduced for staffers across the board, bonuses vanished, and between March 2002
and March 2003, the firm had reduced its consultant headcount by more than 36
percent.
CEO Mel Bergstein wasnt going down without a fight, however. Forgoing his own
pay for six months, Bergstein worked on both the firms operations and its morale,
passing out buttons that read No Whining to Diamonds remaining staff. The firm
essentially flattened its structure, placing its most senior staffers in client-facing
roles, and reducing the size and number of committees. Things began looking up as
the company reached the end of fiscal 2004 with revenue up 16 percent compared to
the previous year. Meanwhile, the firm continued to expand, setting up an office in
Diamond Management & Technology Consultants, Inc.
Dubai in February 2005 designed to serve as a base for serving fixed and wireless
telecom clients in the Middle East, with several projects already underway.
But while fiscal year 2005 brought signs of recovery to Diamond, it also saw more
scaling back. Diamond raked in $193.2 million in revenue in 2005, up 25 percent
from 2004. In September 2005, however, the firm announced an ambitious
restructuring plan designed to boost profits. The plan included the shuttering of
Diamonds offices in Dsseldorf and Lisbon, as well as a downsizing of the
Barcelona office. These cuts were expected to reduce the firms global headcount by
6 percent, but no cuts were planned for North America or the U.K. The restructuring
was expected to cost the firm $8 million to $9 million during the quarter, but save up
to $8 million annually.
Considering the alternatives
In May 2006, the firm announced that it was considering strategic alternatives for
some of its international operations, including a potential sale, in order to focus on its
core markets of North America, the U.K. and India. To that end, the firm said it
planned to highlight financial results for the businesses defined as its continuing
operations. Unaudited revenue for the year came in at around $164 million, with
quarterly results taking a hit from tax expenses.
Still, the firm put a positive spin on its position at the end of fiscal year 2006. During
a quarterly conference call, Diamond execs emphasized that the scaling back was
regional, but that its target markets were set for expansion. The firm continued to
hire several high-profile partners in industries it has targeted for growth, including
health care, the public sector and consumer packaged goods. In March 2006, the firm
tapped Chris C. OBrien, formerly the chief information officer for the city of
Chicago, as a partner in its public sector practice. In late 2005, the firm opened a new
office in Mumbai and has begun recruiting there. Another small office was opened in
New York in early 2006.
Diamond also has fresh leadership, as Adam Gutstein, a founding member of
Diamond Technology Partners, took over the CEO reins from Bergstein in April
2006. Gutstein comes highly recommendedin 2005, he was named one of the
industrys top-25 most influential consultants by Consulting Magazine. Gutstein also
assumed the title of president after reigning president and chief operating officer Jay
Norman made a personal decision to leave the firm in August 2006.
Engagement parties
Diamond keeps pretty quiet about its engagements, though the contracts it does
discuss suggest that the firm maintains a balanced mix of clients from the public and
private sectors. In the public sector, the firm has been working on a multiyear tech
support purchase agreement by the U.S. Department of Justice. The first project
under the agreement involves helping the DOJ with its Unified Financial
Management System, slated to replace multiple financial management and
procurement systems throughout the department. Other public clients include
California state and local agencies and the Chicago Transit Authority.
In the private sector, the firm has worked with large financial firms such as
MasterCard, and has completed engagements with other clients such as a major
North American insurance company and a large international bank.
Outsourcing, killer apps and more
As a resource for the latest intellectual trends in business and technology, Diamond
really shines. The firm gained a following with the 1998 publication of the bestseller
Unleashing the Killer App, by partner Chunka Mui and e-commerce expert Larry
DownesWired magazine called it a best-of-breed primer for executives cramming
for the new economy. The firms insiders have produced other influential business
tomes, such as 2001s The New Market Leaders: Whos Winning and How in the
Battle for Customers, by Fred Wiersema, a Diamond Fellow and renowned business
strategist; 2001s E-Learning: Strategies for Delivering Knowledge in the Digital
Age, by former Diamond consultant Mark J. Rosenberg; and 2002s The Venture
Imperative, co-authored by former Diamond partner Tim Rohner. Diamonds own
research includes an annual global IT outsourcing study, reporting on trends among
both buyers and providers of outsourcing services.
Smart fellows
Diamond also demonstrates its commitment to innovative ideas through its Fellows
program, through which the firm taps the intellectual power of leading thinkers for
input on business developments and fresh perspectives. Notable fellows include MIT
researcher Dan Ariely, former Grateful Dead lyricist-turned-tech-guru John Perry
Barlow and Microsoft researcher Gordon Bell. These fellows often participate in the
firms DiamondExchange, an invitation-only membership program the firm describes
as a multifaceted senior executive program that helps business leaders understand
where to use technology for competitive advantage. With events taking place
throughout the year in cozy locales like Pebble Beach and Naples, Florida, the firm
draws its elite group of senior execs from Fortune 1000 companies together to share
perspectives and cutting-edge business research. More information can be found at
the DiamondExchange web site, exchange.diamondconsultants.com.
The virtual watercooler
Diamond has applied its innovative approaches to technology and consulting to its
own workforce. The firms consultants are welcome to live wherever they like, using
a virtual office to stay connected while traveling to client sites. This flexibility has
earned the firm kudosin 2005, Diamond was named for the second time as one of
the top-10 consulting firms to work for by Consulting Magazine, earning high marks
for delivering on client commitments, its leadership, culture, compensation and
benefits, work/life balance and employee morale. And in June 2005, the firm was
honored locally by the National Association of Business Resources, as one of 10 elite
winners of the Chicagos Best and Brightest Companies to Work For award. In
addition, the firm also was honored by the organization as a Best and Brightest
company for its use of innovative HR practices.
The firm also provides plenty of training for consultants, including a new two-week
long program for all new hires, which kicked off in July 2006. Anew Fundamentals
program is also being developed, which focuses on each of the profiles (CTO, CIO,
COO and chief marketing strategy officer) that represent career paths at the firm.
The first week-long Fundamental program rolled out in April 2006 for CTOs. On top
of that, Diamond consultants may participate in a two-day program for newly
promoted or hired managers and principals; an online competency challenge aimed
at providing all Diamond consultants with a base knowledge of its key frameworks,
with new content each quarter; Fatbrain, a program that provides quick virtual
training sessions on topics ranging from payments at the point of sale to various
technology vendors the company leverages on projects; and a five-day program
called The Summit, which primarily focuses on fundamental consulting skills such as
oral and written communications, teamwork and problem solving. All Diamond
consultants are also able to attend half- to full-day learning labs prior to each of three
All Hands meeting each year.
GETTING HIRED
Prioritizing fit
Diamond recruits at a number of top campuses, including Northwestern, Michigan,
University of Chicago (for undergrads), Wharton, Columbia, UT Austin, Carnegie
Mellon and MIT. The interview process for campus recruits includes two rounds,
were told. The first round is two 45-minute in-person interviews: one fit and one
case, explains a source. Though there is a case question in the first round, it is clear
that fit is a major factor from the very beginning. According to another insider, The
hiring process at the MBAlevel consists of two rounds of interviews. The first round
is one fit interview that will be about as aggressive as a consumer packaged goods fit
interview (e.g., much more rigorous than fit interviews at Booz Allen, Bain,
McKinsey, etc.). And a colleague seconds the notion, saying, Although all firms
have great people, Diamond is the only firm that includes a fit interview in the first
round on campus, adding, This means that they do a great job of hiring people
wholl fit in here, making for a very collegial environment. To emphasize just how
important fit is, an employee chimes in: If you dont meet an interviewers standard
for fit, youre toast, no matter how smart you are.
The second round takes place at the headquarters office in Chicago and consists of
case and behavioral questions where interviewers get to see a candidates thought
process. One consultant provides some insight into the substance of the interview:
The questions feel strangely open-ended; they are very interested in approach and
thinking. You will not likely come up with a final estimation or answer, but may
discuss, for example, a diagram.
For experienced hires, the process starts with several phone screens, followed by a
visit to headquarters. One consultant reports, As an experienced hire, I had a few
phone screenings (initial [recruiter] screening and content screening) and one day of
interviews in the office (four interviews, including case interviews). I also had a
follow-up partner interview to ensure fit of background and my focal area within the
firm. Sources explain that case questions consist of prepared and impromptu
presentations: A case situation is provided two days before the interview.
Questions/problem sets are provided to the candidate at the interview. One hour is
given to formulate answers and prepare a presentation. One hour is given to present
to interviewer, illustrates a manager.
OUR SURVEY SAYS
Warm fuzzies
Diamonds positive, awesome culture garners rave reviews from insiders. Sources
attribute it to the firms people, according to one who comments, A great,
collaborative culture makes Diamond a great place to work. People genuinely enjoy
working with one another. Another associate goes so far as to assert, I have never
worked with a smarter, more fun or interesting group. Boasts another source, Its
the best group of consultants around; everyone loves the firm and wouldnt be here
if they didntthis isnt a Big Four. We love our company and it shows. And
multiple employees claim they would gladly spend time with colleagues outside of
the office: Diamond people are the type of people I would hang out with outside
work And one clever associate sums up his co-workers with a snappy acronym
People are SWANs (smart, hardworking, analytical and nice).
Aside from feeling that colleagues are like family, one manager remarks that the
culture is marked by its unpretentiousness: While the people at Diamond take their
work very seriously, they do not take themselves too seriously. Consultants at all
levels are down-to-earth, genuinely nice people. Another notes that the people here
are very approachable, and extremely open, and continues, Its a very transparent
culture; for example, every employee of the firm is treated as an SEC insider, which
is extremely unique.
Cult of camaraderie
Consultants also enjoy an extremely collaborative and noncompetitive team
atmosphere in which everyone plays a role. One of the best things about Diamond
is that you are expected to fully contribute to the team from day one. While this is
obviously stressful for a brand new analyst, you adjust to the culture quickly, and it
is great to know that your opinion is valued and important. You get to do what you
prove you are capable of, says a senior consultant. And a manager reveals the extent
of the all-for-one attitude that employees exude: People have always been
Diamonds strong point. The No. 1 example I can think of was the furlough program
of 2001 and 2002, when everyone took salary cuts and we paid a stipend to unstaffed
consultants for up to a year until we could bring everyone back full time. More than
that, its the attitude and camaraderie that are so well liked.
Relating to managers
Sources differ regarding satisfaction with relationships with management and
supervisors at Diamond. Some insiders are very pleased with the amount of
interaction they have with partners and client management. One consultant
acknowledges that management is very open to new ideas; even from junior
members. A flat structure allows for easy communication, collaboration and
success. Others appreciate the opportunity to build relationships through working on
teams at client sites. Daily interactions with partners and client senior management
provide the ability to develop close personal and professional relationships, explains
an associate.
Others contend, however, that partner and client interaction is inconsistent at best.
Some events are great, others terrible. Some managers are truly awful, others are
quite good, claims one source. And an analyst grumbles, Partners are never
around, and make no time for analysts. When they do, its bad news. The company
needs management training classes for manager-level peoplesome are promoted
with no management ability, which makes life terrible. For those who arent staffed
on a project, there is even less opportunity to interact, insiders report. A consultant
vents: With so much unbillable time and being a virtual firm, there is really no
access to supervisors. Client access highly depends on the project, but most projects
dont give nonpartners access to high-level executives in client firms.
Not 9 to 5
Insiders at the firm report that hours are pretty extreme. The typical work day is
about 10 to 12 hours, with most clocking between 60 and 80 hours per week. Asenior
associate suggests that working long hours is something any consultant should expect
and is not a unique factor of Diamond, specifically. I think you have to realize what
you are getting into when you work in consulting. If you think you are getting into a
40 or 45 hour workweek, you need to find another profession, he advises. Another
insider comments that brutal hours arent consistent, but tend to be correlated with
factors such as the type of work (e.g., research intensive, idea forming) and/or the
phase of the project (e.g., deliverable deadlines) and even the newness of the client.
Even with strenuous hours, knowing what to expect helps alleviate the pain,
according to an analyst: Long hours are a reality, but are somewhat predictable.
Weeks seven and eight of an eight-week project are going to be rough, so we do what
we can to maintain a balance during the first weeks of an engagement. Some sources
report that weekend work is very minimal, while others admit to working at least
10 weekends in an average year.
Completely mobile
Associates at the firm bemoan the considerable amount of travel required, but accede
that its a requisite factor of a consulting career. A manager admits, The general
consulting lifestyle, as much as Diamond does work to mitigate its impacts, is a
reality of consulting. As long as I choose to work in consulting, I wouldnt choose
to work anywhere else but at Diamond. Knowing this, sources still find things to
complain about. For example, one analyst sighs about time lost while getting to and
from a client site: Travel time really takes away from productivity, especially since
consultants arent given wireless access accounts or gadgets to communicate while
on the road. (The firm notes, though, that starting in spring 2006, it gave each
consultant an EVDO card for their laptop to enable Internet connectivity on the road.)
Another laments the fact that when youre traveling all the time, you cannot do
anything for yourself, while others remark that travel makes it difficult to balance
family life. To make up for the inconveniences, insiders report that the firms flexible
travel policies make things tolerable for associates who have to be on the road. Says
an analyst, The firm has been supportive of a flexible travel schedule, given that I
live in Los Angeles and have been working on cases in the Midwest.
Flex Fridays
At Diamond, weekly Monday to Thursday out-of-town assignments are common, but
Fridays can be spent at home or in the office, which also helps alleviate travel burden.
Due to Diamonds small size and virtual office policy, weekly travel should be
expected. However, strict adherence to the firms four-to-one policy helps a lot.
Consultants who live in Chicago or New York may be able to alleviate the travel
burden due to a high concentration of clients in these cities, a consultant comments.
Another source remarks that one day a week at home makes a positive difference:
Travel can be difficult, but the objective of working four-to-one (one day at home)
significantly helps me with work/life balance, and a colleague relishes the fact that
flexible Fridays allow you daylight hours to mix both work and everyday errands.
A shifting balance
Employees at Diamond say that, overall, finding work/life balance at the firm is difficult
but achievable. A senior consultant expresses that work/life balance is always a
challenge in consulting. This firm works hard to help as much as possible. And as one
associate points out, It highly depends on the partner/principal you are working for.
Some do not take work/life balance into consideration at all, while others definitely
factor it into the expectations they set for the client. Another co-workerwho
apparently has been working for the right partnersis pleased with the firms support in
this area, stating, Partners are great about providing flexibility so that a sensible
work/life balance can be maintained.
Sources also recount that over the course of an engagement, the ability to maintain
balance changes. Balance is more difficult at certain points of a project, but there
will be downtime. Over the course of a year, the schedule tends to even out, notes
one observer. Acolleague explains, The work is highly variablesome periods are
extremely busy, other times there is no work. [Theres] a lot of hurry up and wait.
One newbie analyst feels, however, that no matter where the client is, during the
week, balance isnt achievable. He claims that there is no balance at all during the
week. In-town projects are ridiculousworse hours than out of town by far.
Ironically, if they had me travel more it would be easier. Amanager attributes this
difficulty to the high priority placed on meeting client demands: Diamond seems to
have built up a mentality of satisfy the client at all costs, to the point that the scope
of work statement in our contracts is almost irrelevant. This is in part because of the
fact that the firm nearly died in 2001 and 2002, but its a bad habit that will be very
hard to kick.
Choose a city, any city
Insiders are grateful for the firms live anywhere policy, which provides significant
freedom and flexibility. The firm clarifies that this policy extends to all employees,
with the exception of first-year analysts who are required to live for a short period of
time in a city in which the firm has an office. Asource enjoys the fact that you can
live anywhere, rather than a firm telling you what office you get hired into. Thats
No. 1. Along with that, because you can fly home every weekend (assuming youre
working on the road), you can fly anywhere on the weekend (at the same rate). This
allows you to hit more special events far from home (e.g., weddings, holidays). And
another sees the benefit as economic, as well. Not having to live in a high-cost city
allows your salary to be used for living and not just paying bills!
Fatbrain
Diamonds training comes in a mix of structured and unstructured formats, though
formal opportunities seem more plentiful. As one insider explains, Official and
unofficial training is probably 50/50. Official training is very well set up. However,
no technical/management certifications are offered. Initially, new hires attend a
week of classroom training. One consultant reports, It is a very focused full-week
training on entry, ongoing opportunities, balanced approach to content and skills.
Beyond the analyst level, training is provided every two years at week-long learning
summits. During the year, there are half-day learning labs on specific topics three
or four times a year, as well as All Hands meetings and regularly occurring
Fatbrain conference calls, according to another source. As for other modes of
learning, one associate reports, Informal training is certainly available, and you can
get a lot out of it if you are willing to seek it out.
Despite the buffet of offerings, one associate insists that training is somewhat
inadequate compared to that of the firms consulting peers, but claims he is
personally working to change that. Training is excellent; however, theres not
enough of it relative to our competitors at McKinsey, Bain and BCG. I just started a
new program of biweekly or so training for analysts on specific topics. This is
helping a lot, as new hire training is inadequate for teaching actual skills (as opposed
to giving orientation, which it is good at).
Partnership path
Advancement at Diamond is described as regimented by sources who say there is
a strict yearly promotion schedule. An analyst notes that the firm will work with those
who arent ready to move up at promotion time but who show potential: If you are
not doing well, the firm is good about counseling you to improve. If there is no
improvement, you are moved out. Amanager states that the procedure is up-or-out
with the bottom 10 percent counseled out each year, adding, Arrogant consultants
who dont work well in teams dont last long here. Consultants typically spend two
years at each level. Some sources say there is a six-year track to partnership for
MBA grads, while others claim the time frame is more like eight to 10 years for a
senior associate (from B-school) to be a candidate for partner.
Transparent compensation
Insiders are pretty happy with compensation at Diamond, and they appreciate the
fully transparent compensation grid and flat structure, which contribute to a fair
salary distribution, says a source. If you are titled a senior associate you will make
just as much as all senior associates of your level. It makes for less paranoia in the
group about salaries. And it works well in our firm of overachievers. And on
another positive note, one higher-up reveals that the company recently announced a
salary grid increase for U.S. consultants that will go into effect for existing
employees in October 2006.
Gambling with bonuses
There is a downside to this pay scale, though. The same consultant adds that for this
structure to truly be fair, you need to have a bonus pool that truly differentiates based
on performance. Our bonuses are pretty small and they dont differ that much by
performance rating. So being a superstar has to be more about pride than about
compensation within the firm. Sources say bonuses are about 20 percent of salary,
and are paid in the form of equity. New undergrad hires get equal to 6 percent of
salary in restricted stock unit, remarks a consultant. One manager explains further:
We get equity in the form of restricted stock units (not options), which are actual
shares that you can cash out after six-month vesting periods spread out over a couple
years or hold and let increase in value. The purchase plan allows employees to
lock in a price for two years, which can be a plus if the stock is growing.
One employee mentions that the big downside to the equity plan is the stocks
unpredictability: The big problem with the stock is that because were small and
our business is lumpy (due to the nature of strategy work), were insanely volatile
(last I checked, the beta was three). In other words, the stock is about as valuable as
the firm giving you $10,000, sending you to Vegas and telling you to bet on black.
Others see the stock option in a positive light. Says one manager, Diamonds base
compensation is about average, but equity allocations, 401(k) matching and a
lucrative stock purchase plan make overall compensation extremely positive.
No co-pays
Associates repeatedly rave about the 100 percent full health coverage for employee
and partner where you dont pay a single co-pay. Its amazing! says a source.
An insider adds, The pharmacist still frowns when I pick up my prescription as
though it cant possibly be true that I owe nothing. Another colleague reiterates this
fact, saying, The health insurance is second to none. I have never paid a penny out
of pocket after over 50 visits to doctors, including the birth of a baby.
In addition, the firm offers travel perks that mobile folks appreciate, like daily
allowance for gym fees when on the road and free wireless high-speed Internet
cards. Other colleagues enjoy the fact that travel somewhere other than home is
reimbursed for the cost of traveling home. Another source says he looks forward to
meeting up with his co-workers in Chicago at the All Hands events three times a
year, which are described as over the top, fun, interesting and exciting. At this
meeting, employees get a chance to show off at the firms Bizarre Bazaar in which
engagement teams showcase their projects in good fun.
Hancock HQ
As a virtual firm, consultants arent in the offices much. However, most agree that
the office in Chicago is beautiful. One insider exclaims, Its awesome, on the 30th
floor of the Hancock buildingit doesnt get much better than that. On Fridays it
can get crowded there, though, since Chicago has the only real U.S. office. We
dont have enough space for all consultants because we are a virtual firm, but on days
when a lot come into the office, it can be crowded or noisy. There are plenty of team
rooms, though, and great views, offers a source. And a colleague adds, We could
just use a couple more offices, which were getting (e.g., New York and Hartford,
Conn.).
Diversity efforts
Insiders seem to agree that although the firm lacks gender balance, it does its fair
share of recruiting women and offers an excellent support system. One manager
says, We have a highly active Womens Forum for networking and a voluntary
mentoring program, as well as other ongoing events (e.g., a newsletter) to promote a
strong womens community at Diamond. A senior consultant attributes this lack of
balance to the tight competition the firm faces to win qualified female candidates.
Diamond doesnt do a great job of being diverse with regard to women, but not for
lack of trying. Were frequently bidding for women who have offers from virtually
everywhere, and as a smaller/less well-known firm, its hard for us to get them,
asserts a consultant. Several sources believe its a matter related to work/life issues
faced by consulting firms in general, and not specific to Diamond. Very few women
stay with the company and rise through the ranks due to the nature of the consulting
lifestyle, claims an associate, and another concurs, I think the lower numbers of
women in general has to do with the nature of the workI dont believe anything
about how they are treated/promoted has anything to do with that.
Opinions differ as to how well the firm has been able to achieve a fair representation
of minority employees. Though one consultant remarks that the firm is an
extremely diverse work environment, another argues, We arent exactly white
men only, but its very skewed. One consultant points out that although the firm
tries to recruit minorities, many end up choosing to work for more well-known
competitors: The firm is very welcoming of minorities, but the same problem
applies with minorities as it does with women. But Diamond is making efforts to
address diversity issues, reports an insider. We have a diversity committee that
addresses processes and awareness across the firm. Diamond states that this year, it
plans to attend several diversity career fairs and conferences, including The National
Black MBAAssociation Conference and Reaching Out.
Gl@d to be here
The atmosphere at the firm is reportedly welcoming to gay and lesbian consultants.
There are people openly gay in the firm, and its accepted, asserts an insider. The
open attitude has also extended to its recruiting efforts. A consultant explains, The
firm recently formally recognized Gl@d, Gays & Lesbians at Diamond. The group
has participated in the MBAReaching Out conference for the past few years, and is
growing by leaps and bounds due to an open culture at the company.
Chicago charities
The firms approach to community involvement is low-key and individualized. As
one consultant remarks, Diamond offers a balanced approach to charity work.
Consultants, mainly in Chicago, mention that charity endeavors are undertaken at
will, but it is encouraged. One associate notes, There are several opportunities to
help needy children in Chicago through gift drives and school supply drives. There
is also annual participation in a Chicago Cares community day. The firm also
matched donations to the American Red Cross for Hurricane Katrina victims in 2005.
Another source says her group takes part in Chicago Cares and Hustle up the
Hancock, and adds that there are informal networks of consultants interested in
community events strongly supported by the firm.
750 Seventh Avenue
Suite 1800
New York, NY 10019
Phone: (212) 314-8000
Fax: (212) 314-8001
www.us.capgemini.com
LOCATIONS
Paris (HQ)
Offices in more than 30 countries
PRACTICE AREAS
Consulting Services
Finance & Employee Transformation
Supply Chain
Transformation Consulting
Outsourcing Services
Technology Services
THE STATS
Ticker Symbol: CAP.PA (Paris Bourse)
Chairman: Serge Kampf
CEO: Paul Hermelin
2005 Revenue: 6,954 billion
2004 Revenue: 6,235 billion
UPPERS
Strong camaraderie among junior
staffers
Good reputation in the life
sciences marketplace
DOWNERS
Employee morale
Management is indifferent and
unresponsive
EMPLOYMENT CONTACT
www.us.capgemini.com/careers
Capgemini
V A U L T
P R E S T I G E
R A N K I N G
27
THE BUZZ
Very laid-back
Detailed/process focused
Unable to keep up with the
current times
High turnover
THE SCOOP
Parisian gem
Voulez-vous a bit of French flair with your consulting? Paris-based Capgemini can
help. Employing 61,000 staffers in more than 30 countries worldwide, the firm has a
distinctly international flavor. The firm offers consulting, technology and outsourcing
services. Within its consulting arm, Capgemini consultants specialize in customer
relationship management, finance and employee transformation, supply chain and
transformation consulting services. Industries served include automotive; energy,
utilities and chemicals; financial services; health care; life sciences; manufacturing;
public sector; retail and distribution; and telecom, media and entertainment.
Rebrand, repackage
Capgemini is a relatively new name on the consulting scenethats thanks to a name
change in April 2004. The former Cap Gemini Ernst & Young invested $72 million
in a rebranding campaign, shortening a clunky name that resulted from a 2000 merger
between Frances Cap Gemini and the consulting arm of Ernst & Young. That merger
wont be remembered in B-school books as a particularly smooth one. While some
say a culture clash between the French and U.S. firms were to blame for the rough
start, others pinpoint a struggling economy. In any case, the result was lots of red ink
and layoffs during CGE&Ys first couple of years.
The year 2004 saw unexpectedly low earnings, layoffs of around 1,400 and
management shakeups, including the exit of Capgeminis CFO, William Bitan (he
was replaced by Nicolas Dufourcq, a managing director). Even CEO Paul Hermelin
had to face down pressure to step aside, as analysts buzzed about a lack of confidence
in leadership.
Continental divide
While the economic outlook improved for the firm, a slight schism remained between
the companys North American consulting culture and that of the new French
corporate parent. Rumors swirled about a possible sale of the U.S. consulting
division, with Hewlett-Packard and Frances Atos Origin seen as likely bidders. But
as one analyst asked BusinessWeek Online in October 2004, Who would want to
take over Capgemini? When you acquire something, you acquire the problems, not
just the benefits. By late 2004, Capgemini had taken a stand, vehemently denying
Capgemi ni
any acquisition rumors and claiming that its focus was on improving turnover and
margins in North America.
The firm came through with an ambitious plan to right its North American operations
in early 2005. In an interview with AFX International Focus in March of that year,
Hermelin said restructuring was not enough for the firms U.S. consulting
operations, citing the divisions noncompetitive prices and high production costs as
key problems. That April, Capgemini set a portion of its U.S. business free when it
sold its health care consulting practice to Accenture for $175 million. This was
followed in May by the refocus and resizing of the firms project and consulting,
or P&C, line of business in the region. Capgemini execs predicted an annual savings
of more than $100 million through the reduction of support function costs, including
a 30 percent reduction in IT spending and greater use of offshore resources for back-
office functions.
Getting oriented
In addition, Capgemini announced a plan to change the management culture in the
region, insisting on affordability (with no more than 3 percent of revenue allowed to
go toward overhead), accountability and efficiency. In June 2005, the firm began a
transition to a geographically-oriented profit and loss model in North America,
naming four consultants to be area directors of its regions in the U.S. Tim Crichfield,
formerly CFO of Capgeminis North American strategic business unit, was tapped to
head consulting and technology services in the Midwest area; Lanny Cohen, formerly
market segment and sales leader for telecom media and entertainment, was named
head of the Eastern region; Bill Campbell, formerly North American geographic sales
leader, was appointed director of the Southern region; and Kevin Poole, formerly
supply chain leader for North American consulting services, was named head of
Western operations.
Overseeing the consulting division in the U.S. is Chell Smith, a 15-year consulting
vet. She took over the role in April 2004 from John McCain (no relation to the
senator), who has since gone on to head HPs consulting division. Smith is known
for supporting the progress of women at the firm, promoting work/life balance and
taking advantage of telecommuting herself when possible.
Laffaire Danon
Meanwhile, back at corporate headquarters in Paris, the firm made headlines in
October 2005 when Paris-based chief operating officer Pierre Danon was sacked
Capgemi ni
after his name turned up on a short list to be the new chief executive at French hotel
group Accor. Danon, who had been with the firm since March 2005, was credited
with helping to turn around Capgeminis U.S. IT operations. Observers noted that
the dramatic move was exceptional, but the firm said it had no choice, since it was
having enough problems with staff retention as it was. As one exec observed to Dow
Jones, This is the first time such a situationsuch a public affairhas occurred at
Capgemini. In Danons wake, the firm appointed Capgemini vet Salil Parekh as
general manager of the firms North American project and consulting business.
Thankfully, laffaire Danon didnt dampen Capgeminis prospects for ending the year
on a positive note. In 2005, revenue from outsourcing projects increased 33 percent
to 2.6 billion. Notable North American engagements during the year included a
seven-year outsourcing contract with Bombardier, the worlds third-largest civil
aircraft manufacturer; an outsourcing partnership in collaboration with HP; a contract
with Limited Brands to overhaul the companys IT systems at stores such as
Victorias Secret and Express; and an 6.9 million contract to design, implement and
maintain a new Oracle-based financial management system at Washingtons National
Gallery of Art. In the telecom, media and entertainment practice, the firm noted,
contracts were signed to design and develop a film distribution system for Sony
Pictures, and to create customer service representative tools for Time Warner Cable.
In 2005, the firm saw a return to positive net income, along with respectable revenue
growth of about 15 percent (6,954 billion, up from 6,235 billion in 2004). The firm
credited outsourcing wins with a lot of the growth, but also gave a nod to a
significant improvement in the utilization rate in consulting and technology services
businesses, as well as the belt-tightening measures that led to a 12 percent reduction
in sales and support costs.
On the right shore
Though Capgemini still markets its consulting services, the firm has aggressively
entered the outsourcing market. Capgemini calls its approach to global delivery
rightshoring, a term intended to convey the blend of onshore, near-shore and far-
shore locations into a single integrated, seamless service. In September 2005, the
firm was given the National Outsourcing Associations Outsourcing Service Provider
of the Year award, in recognition of its investmentand big winsin outsourcing.
According to industry watchers FAO Research, Capgemini was bested only by
Accenture in the number of outsourcing contracts signed in 2005. FAO noted that
Capgemini won the most seven-year FAO arrangements among all providers in 2004
and 2005. Outsourcing made up 36 percent of the groups overall revenue during the
Capgemi ni
first half of 2005by the end of the year, unofficial reports suggested, this number
had grown to 40 percent.
You say outsourcing, I say India
In March 2006, Capgemini execs met in Mumbai, India, to discuss the firms
business plan stretching to 2009, Le Monde reported. Observers took the choice of
venue as a strong indicator of the firms priorities for the rest of the decade. And its
no wonder: Capgemini India has posted yearly growth of 80 percent, with more than
100 clients worldwide. Early in 2006, CEO Hermelin announced that the firms
current workforce in India, then around 4,000, would be boosted to 6,000 by the end
of the year, and to 10,000 by late 2007. The firm announced plans to open a site in
Calcutta, complementing its existing offices in Bangalore and Mumbai. In March
2006, the firm opened its latest Indian location, a 500-person office in Kolkata. Other
outsourcing hotspots for Capgemini include Krakow, Poland (the firm has around
2,000 staffers in Eastern Europe), and Guangzhou, China (where the firm has around
1,000 employees).
The firms buzzed-about outsourcing capabilities have led to some notable contract
wins, including one of the worlds largest IT re-sourcing (essentially outsourcing)
contracts, signed with General Motors in February 2006. Under the contract, valued
at over $500 million, Capgemini will help GMs information, systems and services
organization support some of the re-sourcing programs key strategic elements, such
as the management of enterprise-wide application integration. The news came on the
heels of another big win in January, when Capgemini was tapped to manage a range
of finance and accounting processes for several countries of Zurich Financial
Services, one of the worlds largest insurance companies. Another high-profile tech
services outsourcing engagement came in late 2005, when the Metropolitan Police
Service of London tapped Capgemini to provide its information communication
technology services.
Booming in Britain
Capgemini has also been big in the U.K. lately. In March 2005, the firm was awarded
a five-year, 29.6 million contract with British Energy, the largest producer of energy
in the U.K. One of Capgeminis most buzzed-about outsourcing contracts was signed
in June 2004, as Capgemini took over responsibility for the IT systems of U.K.s
Inland Revenue agency. The Aspire project is worth more than $3 billion, and said
to be one of the largest outsourcing contracts in history. More recently, in January
Capgemi ni
2006, the Swansea Council of Wales announced the signing of the first phase of a
project to launch the biggest e-government program in Wales, modernizing the way
the government operates and provides services to users. The firm was tasked not
only with designing and building the new IT systems, but also with running them on
an outsourced basis for 10 years.
Tech notes
Capgemini occasionally publishes research related to the industries it serves. In
September 2005, the firm relaunched its monthly newsletter, Collaborate with
Capgemini, designed to offer executives perspectives on technology trends. In
January 2006, the firm partnered with Intel and Micro Industries to unveil Retail
Media Networks, a joint initiative to provide consumers with product information,
directions for finding products in the store, product news, complementary
promotions and services, as well as paid advertising, customizable for retail
locations, Capgemini explained. RMNs are being used by several large retailers,
offering consumers a more digitized shopping experience, replete with touchpads,
kiosks and interactive devices.
Regional help
Capgemini doesnt make a fuss about community service efforts. However, the
company did report on its efforts following Hurricane Katrina, reporting that it had
made substantial contributions to both the Red Cross and the Salvation Army, and
was working with governments and businesses in the South to help repair IT systems.
The firms employees also stepped up to pitch in on recovery efforts.
GETTING HIRED
Threes a charm
Capgemini recruits from college campuses near each of its offices. Louisiana State
University, UT Austin, UC Berkley, Texas A&M and Columbia University are a few
of the schools from which the firm seeks out candidates. The firm also invites those
who are interested in working there to register their profile on the company web site
and search online for jobs by location.
Capgemi ni
Most sources report there are three rounds of interviews for candidates: One phone
screen with a VP; the second round was in person with two senior managers, with
one behavioral and one case interview; and a third round was another phone
interview with a VP, reports a source. In some instances there is a case study, but
most questions are reportedly behavioral and might, for example, ask candidates to
describe a situation when you resolved a conflict.
Relaxed recruiting
A number of sources say they were surprised by the laid-back nature of the
interviews. One source reports, I had a day-long interview where I was rarely asked
any interview questions. I was surprised how relaxed it was. Another consultant
agrees, The interview process was remarkably simple. I have worked at other
technical firms before my time at Capgemini, and their interviews were a lot
tougher. The source describes the on-campus interview as only a filter for the
charming and personable, and he continues to explain that the second interview
was the technical interview, which to my surprise was a joke. But a colleague from
Texas has a different take: The interview lasted over six hours and covered topics
from technical, execution process, to rapport with people and presentation skills.
OUR SURVEY SAYS
Friendly culture
A number of insiders at the firm describe their colleagues as friendly and helpful.
One source comments, [Its a] friendly culturemuch better than at other
consulting firms, and a colleague agrees, saying, People tend to have a good sense
of humor, balanced by [a] work hard attitude. However, some claim that there is a
difference between the cultures at the junior and senior levels: Among the junior
associates, the culture tends to be pretty collaborative and teamwork-oriented.
Among the senior people, the culture tends to be more duplicitous and kind of
cutthroat, describes an associate.
Heavy turnover
One thing is for certain, according to insiders: Capgeminis culture has been in a state
of flux since its merger with Ernst & Young. Essentially, the core of the firm was
weakened because the smart consultants left to more growing firms such as
Capgemi ni
Accenture, Deloitte, etc. This left the type of consultants with the firm that dont
make a firm grow, but rather just stagnant, laments a source. A consultants notes,
I have noticed a very high turnover rate recently from people that have been there
over five-plus years. Another associate also mentions, [There is a] high turnover
rate in leadership and senior management.
Easygoing schedule
Sources say that hours at the firm are altogether reasonable. An insider reports that
an average workweek is 50 hours, sometimes a bit more, like 50 to 60. And a
senior consultant agrees that although there may be peaks, in general, the hours are
not overbearing. Capgemini, however, works very hard to promote work/life
balance and creates incentive for projects to be managed and sold at rates with scope
commensurate with a 40- to 45-hour workweek. Obviously, as one nears deliverable
dates you may be asked to put in some extra time. For the most part, sources claim
work/life balance is reasonable. One consultant qualifies, It depends on the
project, but generally speaking, it is respectable.
Monday to Friday
When it comes to travel, Capgemini consultants say the amount depends on the
project. An analyst claims, Travel is intense, with up to 100 percent travel in most
cases. One California-based insider shares, There are a lot of media clients in Los
Angeles, so for the most part I dont travel, but the people in other offices, like the
Cambridge office, travel a lot. Associates also report that if a project is at a clients
location, the firm expects consultants to be there for the whole week. Says one
associate, One caveat is when you travel, it is often mandated that you spend five
days on a clients site as opposed to just four.
Class in Paris
Most formal training at the firm occurs within the first few months of employment.
When people join, there are a couple of days of orientation, not really training, and
one full week in [the] Cambridge office, explains a consultant. Employees in some
practice groups rave about the annual training in France. For the strategy consulting
group worldwide, there was one week in Paris, a consultant comments. Aside from
that week, insiders report, most training occurs on the job.
Capgemi ni
Prove yourself
Sources at Capgemini say promotion is based on individual performance, such as
utilization and revenue managed. Along those same lines, employees claim that
there is no set rate of promotionit is determined by the individual. The promotion
process is pretty selective. One can advance as fast as one wants to advance. I got
promoted to a senior consultant from consultant in eight months, remarks an
associate. Another consultant states, Capgemini is a fairly flat organization that
enables employees to prove themselves in stretch roles in order to be positioned for
promotion. A manager also claims that at this firm, an MBA doesnt seem to be
required to move up.
Compensation commentary
Insiders report that salaries at Capgemini are lower than [at] other firms. Bonuses
range from 3 to 10 percent, and are dependent on the firms ability to meet profit
targets, were told. And on a positive note, Budgets have been met and bonuses
have been paid out in full over the past three years, points out a manager. The firm
also offers profit sharing and 401(k) matching as part of the overall compensation
plan.
With regard to added perks, receiving two weeks vacation time and an extra week
if you go into management, and getting reimbursed on your cell phone, as well as
other expenses if covered by your office, rank high on employees lists.
Diversity deficiency
According to insiders, gender balance at Capgemini is not great, and the firm has
a long way to go when it comes to hiring and promoting women. It is dominated by
men and, in fact, one of my close friends at the firm didnt like the way she was
treated by men on some projects, and some others also had problems, comments a
source. One analyst concurs, saying, Management is comprised mostly of older
white males.
Insiders report there are no programs to support minority diversity at the firm and that
minority representation, in general, is thin. Aconsultant from the West Coast states, On
the tech side, there are lots of East Asians, but in terms of African-Americansthere was
one guy ... As far as Latinosthere were a couple of Latinos. In short, he states, Not
a lot of diversity. In addition to minority recruiting efforts, insiders think the firm could
make more of an effort at community service. Aconsultant reports there are not really
any programs promoting charitable endeavors.
Capgemi ni
Capgemi ni
Capgemini works very
hard to promote work/life
balance and creates
incentive for projects to be
managed and sold at rates
with scope commensurate
with a 40- to 45-hour
workweek.
Capgemini consultant
1800 Sherman Avenue, 7th Floor
Evanston, IL 60201
Phone: (888) 972-4173
Fax: (888) 972-7329
www.zsassociates.com
LOCATIONS
Evanston, IL (HQ)
PRACTICE AREAS
Analytical Data Warehousing
Call Planning & Team Selling
Compensation Design &
Administration
Go-to-Market Strategy
Market Segmentation & Targeting
Mergers & Integration
Marketing Mix Optimization
Marketing Research
Sales Force Design
Sales Forecasting
Sales & Marketing Effectiveness
Territory Design
Value Proposition Development
THE STATS
2006 Employees: 825
2005 Employees: 740
UPPERS
Informal work environment
No travel
Household name for health care
companies
The projects are short
DOWNERS
Limited non pharma work
Lack of some of the showiness
that other firms have (in bonuses,
prestige, perception)
Strange instances of nonsensical
penny-pinching
Some things are kept really secret
EMPLOYMENT CONTACT
E-mail: careers@zsassociates.com
See office-specific recruiting contacts at
www.zsassociates.com/content.asp?
tid=176
ZS Associates
V A U L T
P R E S T I G E
R A N K I N G
28
THE BUZZ
Great for sales force effectiveness
work
Strong niche player
Does only one kind of work over
and over
Overworks employees
THE SCOOP
Professors gone wild
Based in Evanston, Ill., just a short distance from Chicago, ZS Associates was
founded by Andris Zoltners and Prabhakant Sinha. As young professors at
Northwesterns Kellogg School of Management, these two budding businessmen
found themselves researching the same topic: sales forces and their effectiveness in
vending products. In 1983, they took their findings public, opening the firm
headquarters just a short distance from the Northwestern campus. Client companies
liked what they sawa mathematical and analytical way of measuring their own
effectiveness in reaching consumers.
ZS has grown quite a bit since those early days, now operating 13 offices scattered
across the globe and conducting business in more than 65 countries. But, although
its grown, the firms focus has not changed much at allZS is still a specialist in
selling products.
Sales specialists
Heres a basic walkthrough of a ZS engagement: analyze the customers and analyze
the sales staff; optimize the sales staff territory in terms of geography and in terms of
numbers of salespeople; figure out the best pitch in timing and in content; determine
the proper mix of capital that should be designated for marketing purposes; find a
way to warehouse all the data accumulated by sales calls; run analytics on the data;
and provide proper incentives to the sales staff. Its quite a mouthful, but ZS has the
advantage of being a niche player. Its unerrring focus on sales makes it an attractive
consultant to companies underperforming in that area. With clients like The New
York Times and other Fortune 500 firms, its no wonder ZS sticks to what it knows.
Indian uprising
ZS has steadily become more global. The company promotes its ability to work in
multinational situations, with clients that sell products across borders. In 2003 the
company opened its first Asian office in Tokyo, and in 2004 it made a big move by
setting up shop in India and announcing that it would hire 50 new staffers to that
office. This group, in Pune, about two hours from Mumbai, has attracted
international attention. In November 2005 both India Business Insight and the
Financial Times cited the ZS Pune office opening as an example of strategy services
ZS Associ ates
(that were previously the province of American and European based consultants) now
being outsourced.
Jet-lagged but happy
Many consulting firms travel the conference and workshop circuit to mix it up with
industry insiders and newbies. But youd be hard-pressed to find two senior staffers
more dedicated to sharing their work with the public than founders Zoltners and
Sinha. Both still teach executive training classes through the Kellogg School at
Northwestern and serve as faculty at the London Business School. The transportation
logistics must be a particular nightmare for Mr. Sinha, who occasionally jets on over
to Hyderabad, India, to teach a course entitled, Accelerating Sales Performance.
The two ZS founders and other senior staffers can also be found at conferences across
the globe, from Phoenix in January 2006 (sales and marketing conference), to
Barcelona in March (sales in the pharmaceutical industry roundtable) and Anaheim
in May (discussion of compensation among sales staff). And if you cant find them
in person, you can always pick up a book. Sinha and Zoltners summed up their
theories in The Complete Guide to Accelerating Sales Force Performance, published
in 2001. If you want a more up-to-date take on their methodology, check out the
2004 Sales Force Design for Strategic Advantage, or their hot-off-the-press, August
2006 title, The Complete Guide to Sales Force Incentive Compensation: How to
Design and Implement Plans That Work.
Trophy winning
All of the hard work paid off for these two ZS top dogs in 2004, when they received some
nice hardware for the mantle, taking home the Marketing Science Practice Prize from the
Institute for Operations Research and the Management Sciences (INFORMS). Sinha
made some interesting remarks after accepting the prize, noting that, according to ZS
calculations, his firm had created 12,500 virtual salespeople throughout its 20 years
conducting business. How did they do this? By reorganizing sales forces with an eye on
cutting travel time.
Computer geeks
ZS is heavily committed to software and it should be pointed out that the firm
maintains a separate development wing in Evanston just for this purpose. Many of
the groups members are graduates of Northwesterns computer science program,
while another significant proportion hails from the University of Wisconsin at
ZS Associ ates
Madison. The firm engages in software development both internally, in the form of
proprietary analysis tools, and externally, with applications designed for specific
clients.
Maps-r-us
Way back in 1983, ZSs MAPS
software was one of the first applications to utilize

geographical data and computer map models for commercial purposes. The program
is exactly that, a map that visually shows various sales territories and results. Today,
MAPS is still going strong, and is on its sixth iterationZS developers are currently
rewriting the underlying code for the first time since 1997. Of course today, desktop
applications are out and web-enabled programs are in: eMAPS
utilizes the same

technology as MAPS, but the code runs elsewhere; users are now able to access the
interface through a browser.
In its most updated version, ZS developed a couple of extensions to its MAPS suite
of software: SmartAlign, is a tool managers can run to analyze their territoriesit
will also point out possible optimizations; and MapPix
is a service that allows

clients to print large, high quality maps to use in the nonvirtual world.
New products coming
Most commercial computer projects are awkwardly and endearingly named until
marketing gets a hold of them; the same is true for the two products ZS has in the
pipeline. Jawlensky is software focused solely on analyzing the data on call plans to
customersa data intensive task. The ZS team had to create the software so that it
would run as a grid on several computers at once. Hopefully this reduces those 1 a.m.
sales pitch phone callsa big part of Jawlensky is determining when to call and
what is appropriate to talk about. Porpoise, is another up-and-coming ZS tool.
Similar to eMaps, Porpoise is a web-based application. This program, however, is
built specifically for sales representatives, allowing them to communicate and share
information on potential clients.
Feet on the ground
Although providing rigorous analytics is what ZS has built its success upon, the firm
has not forgotten the Willie Lomans of the world. As ZS Principal Bakker Lee said
in an April 2006 Sales & Marketing Management article, Even the best data mining
cannot completely substitute for having feet on the street. In general, more data is
always a plus, but it doesnt eliminate the role the sales force plays in prospecting.
ZS Associ ates
Its not as if you could operate completely off the data without the insight that
meeting with customers brings.
GETTING HIRED
Recruiting by region
ZS concentrates its recruiting efforts on a few schools in each offices area. One
insider reports that most offices around North America concentrate recruiting at a
handful of top schools in the region. For the Evanston and Chicago offices, these are
Wisconsin, Northwestern, Illinois (Champaign), Purdue and Michigan for associates,
and Kellogg and Chicago GSB for MBA consultants. The firm notes that it
conducts geographically-based recruiting, which allows for local offices to manage
relationships with schools in its area. All interviewing is conducted by the local
office, but candidates can be placed at any of the firms offices. For example, a New
Jersey associate reports, In the Princeton office, we currently recruit from Yale,
Columbia, University of Pennsylvania, Cornell, Princeton, Duke and University of
Virginia. The ZS web site gives a complete list of schools on its recruiting schedule.
Intense interviews
Sources say candidates can expect two rounds of challenging interviews. The
first round is normally on campus or over the phone for applicants that are not from
a core school, explains an insider. One consultant details the process: The first
round contains a 30-minute behavioral and a 30-minute case (project-based), which
was the hardest interview Ive ever been through. A colleague adds, First round
interviews consist of resume discussion and some quantitative testing, typically in the
form of small mathematical puzzles and estimation questions.
If you make it to round two, a four-hour interview is scheduled and includes five
different rotations with various consultants, managers and a principal, a source
states. The second round consists of one or two cases, another behavioral interview
and a half-hour session with a current associate to find out more about the position,
says a consultant in Boston.
ZS Associ ates
Practical cases
Sources recommend brushing up on your mathematical skills prior to interviews. We
tend to hire pretty quantitative folks, so expect some quantitative element to your
interview, in addition to a typical consulting case dealing with sales and marketing
issues, an associate advises. Case questions tend to be more structured than the cases
you may encounter at other consulting firms, suggests a source. One thing candidates
wont encounter is brain teaser questions: Unlike other consulting firms, the ZS
interview process does not seek to torture its candidates with absurd brain teasers. I
actually enjoyed my interviews, because they provided me with a good idea of what I
would be doing there. I would never have to figure out how many granola bars can fit
in a Cadillac Escalade as a project, so why bother to ask the question?!
OUR SURVEY SAYS
Like an extended grad school program
Associates have great things to say about the positive culture at the firm. A Boston
source claims that the close knit and academic atmosphere reminds him of his
school days: Working at ZS feels like an extended grad school program. There are
lots of bright, young people who stop in the halls to discuss difficult problems.
Sources repeatedly claim that co-workers are helpful and the vibe is easygoing. Our
culture is informal and very collaborative. There is very little sense of hierarchy or
bureaucracy within the office. People are always willing to help others, with almost
no feeling of competition at all. Cooperation among teammates is especially helpful
in crunch time, notes a source: It sounds cliche, but it is much easier to motivate
yourself to work long hours when you are surrounded by other driven, committed,
intelligent people. However, since the firms culture highlights cooperation rather
than competition, everyone is encouraged to volunteer time and lend hands not only
to teammates but also to officemates who knock at your door.
They like each other
One consultant claims ZS-ers just cant get enough of each other: Even throughout
the weekend, a lot of the people hang out together because we have a great time
without any animosity between co-workers. I dont even know of anyone disliking
someone else in the office. Even upper management takes part in social activities.
As one consultant puts it, We plan plenty of office-wide social events, happy hours,
ZS Associ ates
retreats and intramural teams, where everyone from the newest associate to the
founding principals attends.
Insiders also rave about the laid-back nature of the firm, which in the San Francisco
office means that almost everyone wears jeans to work every day, unless you have
a client meeting. Aco-worker adds, Were an informal firmwe address everyone
(associates and principals) by their first name. Another associate states, ZS has a
very laid-back culture. You work hard, but there is no pretension about it. Overall,
sources praise the high level of respect among colleagues.
No more black list
ZS is a place where interaction between consultants and management is friendly and
respectful, says one consultant. A West Coast associate appreciates learning from
the most senior members of the firm, as partners are very accessible and very
involved with project work. Recounts one insider, My relationships with my
supervisors are extremely open and informal. I can phone them or walk into their
offices at any time, to discuss any issue (work-related or not). One insider admits
that consultants didnt always get along so well with supervisors: There used to be
a black list of managers passed under the table between associates and consultants.
Thankfully, that list has gotten much shorter over the past few years. The firm seems
to be taking people-management skills much more seriously in promoting
consultants to managers. And overall, associates seem happy about the fact that the
firm maintains a very flat hierarchy in terms of interactions among colleagues.
Getting in on the action early
Staffers at every level say the amount of client contact is excellent. I have been
working with a client for the past six months, and have already been able to attend
meetings and provide my insights to the various management teams Ive worked
with, claims one source. Immediately being involved in projects means consultants
get to show their skills to supervisors from the start. Responsibility is given to
entry-level associates right from day one, which allows everyone to take ownership
and earn respect from managers and principals, states an insider. And a manager
notes, From the beginning, even associates are visible in client meetings and other
client interactions. One junior-level analyst boasts that within three months of
being at ZS, I had interacted with three vice presidents of sales of top-10 pharma
companies.
ZS Associ ates
Peaks and valleys
Insiders say they endure roller-coaster hours at the firm. Aquiet week is about 50
hours, while a number of sources report regularly working 90 hours a week. I have
seen sustained peaks of 90-plus hours, asserts one source, while another concurs,
saying, Peaks can be brutal (more than 90 hours). All-nighters do happen on
occasion. Aconsultant states, When it rains, it pours. Ill have under 50 hours for
a month, and then a month of 85-plus. Its very variable. Sometimes we wind up
staffed on three or four projects at once and that can be really hectic. With four
projects, youre pretty much guaranteed to be working late every night. One things
for sureZS consultants dont sit around waiting for assignments. Downtime is
rare in this office, a San Francisco employee notes.
The average engagement tends to last a couple of months or more, staffers say, but
there are also plenty of long-term engagements. A source reports that short-term
projects tend to go for six to nine weeks. On the other extreme, I have been on a
continuous, periodic engagement with one client for two years now.
Intelligent travel
Travel seems to be the exception, rather than the norm at the firm. We have an
intelligent travel policy. Our offices are located near our clients, so there is little
need to travel to or work at the client site, tells an insider. The policy is working,
according to a source who comments, Travel at ZS is great. In 15 months I have only
spent 10 nights away from home. Another Chicago associate notes that ZS
typically does not work on-site, so all of my travel is for occasional client meetings.
At the upper levels, however, traveling for on-site work becomes more frequent,
were told. Amanager explains, ZS makes an effort to build client work that is local
to a ZS office. Alarge part of the decision on where to open a new office is based on
where existing clients are located. However, at the manager level and above, travel
becomes a more required part of the job. This heightened travel for higher-ups is
expected, the firm comments, because those in the senior levels are managing
accounts and need to interact face-to-face with the clients senior leadership.
Balance preserved
Though respondents spend many nights and quite a few weekends working, most
claim that being able to spend nights at home makes work/life balance possible. A
manager remarks, We dont travel very often at all, so that makes it much easier. I
get to eat supper with my family four days per week even though I will have work in
ZS Associ ates
the evenings. And another insider states, On those occasions when I do work
extended hours, it is usually fairly predictable, and staffers take these long hours in
stride, accepting them as a fact of the consulting life. According to an East Coast
consultant, Working late and/or on the weekends is sometimes inevitable, as
projects demand such hours when a major deliverable is due soon. For the most part,
the balance is preserved. And in general, consultants report that they dont feel
obligated to stay at work when work is finished. An insider professes, When my
workload is heavy, I can choose to work late during the week and leave the weekend
free, or vice versa. When my workload is light, there is no feeling that I need to stay
at the office late or on weekends.
Outside hobbies
Consultants also add that flexibility in hours allows time for pursuing personal
interests. An analyst reports, I typically leave work at a normal hour to go running
and eat dinner. Then, if I need to, I can pick up my work later in the comfort of my
home. A junior level consultant also appreciates being able to make time for
exercise: The majority of the time I have planned ahead with my project team, I
have been able to stick with my own schedule. This even includes being able to hit
the gym in the afternoon with the understanding that I may have to stay later to finish
my days work. One San Francisco source claims that her manager is supportive
when it comes to personal activities outside work: When you sign up for a sports
league, class or any other extracurricular, managers/your project team are usually
pretty understanding and allow you to keep your extracurricular activities as much as
possible.
Its the managers call
But when it comes down to it, associates state, work/life balance is largely
determined by the manager. As a consultant reports, It depends very much on the
style of the project manager. This variance often displays itself in terms of face time
requirements at the office. One source explains that some [managers] are very good
and respect other peoples schedules and work/life balance. Others do not care and
expect you to be in the office whenever they are, and a colleague affirms that some
managers will push back at unreasonable clients; others will just expect you to work
through your weekend. A consultant who must have run in to one such manager
suggests that at ZS, there is a culture of having to be in the office, even when [its]
not important for the job.
ZS Associ ates
One source claims, however, that work/life balance does vary from project to project
and manager to manager, and from what I hear, [its] not much worse than other
consulting firms. However, it only takes a couple of back-to-back, 90-hour weeks for
you to seriously reconsider why you put up with such a life. And one respondent
warns, If not managed carefully, [work/life balance] can get way out of whack. A
Princeton-based associate seems to have gotten lucky in the manager pool, and
expresses that from his experience, Managers are very considerate about associates
time. Generally they do not require you to do unnecessary work.
There when you need it
Consultants rave about the firms amazing focus on training, and claim both
official classes and on-the-job learning as part of the deal. ZS offers a good mix of
formal training courses and informal mentoringand places due importance on both
in development of talent, comments a manager. Another source agrees that training
is a good mix of formal and informal. There is a very heavy emphasis on reviews
and feedback. The only problem is getting the time to attend. Everyone is super
willing to help out.
For new hires, the firm offers New Employee Orientation, which provides a good
basis for your first projects, explains an insider. ZS also offers ongoing classes
which are set up by training coordinators. Asource in San Francisco reports, There
are almost weekly formal trainings on programs/new skills in addition to a six-month
mentoring program on top of project team guidance. The firm even has a plan in
place for getting consultants up to speed immediately on a new skill. As one
consultant says, If desired, every new project can begin with Just-In-Time Training,
where the project team can request training from the experts within that practice area.
ZS has a very helpful culture; when training is urgently needed, experienced
employees are always willing to share their knowledge.
On the way up
Sources at ZS indicate that the firm is truly a meritocracy with regard to promotion:
You are promoted when you demonstrate the necessary abilities and skills for the
next level, one consultant claims. Advancement normally follows a set time
schedule according to an associate who explains, At the junior levels (associate,
associate consultant and consultant), promotions tend to occur every two years. At
the senior levels, promotions take longerfour or more years. The firm notes,
however, that while promotion from the junior levels can be every two years, it can
ZS Associ ates
also take three or more years to move up. And while most attest to the meritocratic
basis of promotions, one consultant claims that there is an unwritten rule that you
must spend a minimum [amount] of time at each position before progressing, no
matter how good your performance. Insiders say that officially there is no up-or-
out policy, but those who arent advancing usually dont stick around. As one staffer
puts it, Its not quite up-or-out policy, but my company knows how to make
undesirable people quit. And a colleague admits, People are promoted when they
are ready is the policy. However, the pressure does increase, at least personally, on
people who have fallen behind the norm on timing for promotion to the next level.
For associates who were hired straight from undergrad, it is possible to move up
without an MBA, a manager tells us, stating, An employee can work his/her way up
internally without returning to school. And as one source concedes, Non-MBA
hires have a less definite need for promotionthere are a number who are happy at
the middle ranks, and have been there for three to five years.
Mixed bag
Employees give mixed reviews to the firms compensation. Associates at ZS are
generally satisfied with salary, especially upon first joining the firm. An insider
states, We are very competitive on starting salary, adding, but bonus and raises do
not seem to keep pace. And another source comments, I think we are a little on the
higher end, but not blowing anyone out of the water. Though most consultants
bonus is around 10 to 15 percent, received on an employees one-year anniversary,
associates seem to think that it could improve. One respondent feels that high
performers are not adequately recognized and rewarded. Aside from complaining
about bonus, another source gripes about the firms rather miserable 401(k) plan
with a six-year vesting period. On a positive note, insiders say ZS gives a signing
bonus and a cost of living adjustment based on rent differentials for city offices.
Cubs games and higher learning
Compensation aside, the firm does dole out some cool perks, were told, which vary
depending on the office location. A Chicago source reports, There are social events
organized by the firm: baseball games, summer barbecues, holiday parties, pub
quizzes, poker tournaments. The people here genuinely enjoy each others
company. As for day-to-day perks, a New Jersey consultant raves about free
Snapple and 25-cent sodas! And the office manager also has good snacks (e.g., candy,
granola bars) in her office.
ZS Associ ates
Insiders say another real benefit is the firms support for those who decide to pursue
an MBA. There is help for the business school application process, says a
manager. And according to another source, those in the Executive Education
Program have the ability to take graduate classes at Kellogg. One consultant is
currently taking advantage of these opportunities: They are paying for my part time
MBAtuition.
Sufficiently functional
Satisfaction with the office facilities varies from office to office. Some offices
(Boston, London, Paris) are very well located, some (San Francisco, Milan) are not,
reveals a source. Another employee notes that most offices give consultants a
shared office, while all managers and above have individual offices. In Princeton,
a consultant mentions that he has poor working conditions, and a co-worker objects
to the fact that there isnt any place to relax, or even sit with a client. Youre either
in a small office, in a meeting room, or youre in the windowless kitchen. A San
Francisco associate admits, The lack of some useful equipment can damage
productivity and desire to be at the office. However, in San Mateo, a consultant
states, We (San Mateo) have offices, not cubes, free drinks and snacks, and adds
that the office is in a decent building.
For some, its all a matter of perspective. A source remarks, Every time I visit a
client site, I realize how spoiled we are in terms of office space. Most people move
into a two-person office (with a door, and most with windows) after two years at the
firm. But a colleague describes the place differently: Its adequate, but very
utilitarian. The firm buys only the cheapest pens and pads; I purchase many of my
own supplies for this reason. Its somewhat drab. Another Chicago source laments
that there is old furniture with no style.
Women opt out
Employees give positive reviews to ZSs diversity efforts regarding women, though
they admit that a gender imbalance does exist at the firm. In 2005, the firm
promoted six managers to principal (ZSs partner level). Three of those promoted
were women, including one who was at the time on maternity leave, comments a
source. Several insiders remark that the imbalance is due to the fact that fewer
women in general choose the consulting career path. An associate explains, Since
many (if not most) of our employees have a background in engineering or math, there
may be some inherent imbalance in the number of applicants we get from either
ZS Associ ates
gender in a given year. And another colleague claims that the firm is doing a good
job promoting women, but that women often decide to leave when they start families:
I dont really feel that there is a glass ceiling at ZS. There are fewer women in
higher-level positions, but I believe that this is due to the fact that many women
eventually opt for jobs with better work/life balance due to family obligations. ZS
seems flexible about maternity leave and part-time options (though part time at a
consulting firm can be a lot more than part time at a 9 to 5 sort of job).
Rounding out diversity
Though there are some underrepresented groups, insiders report that the firm does
make an effort to hire and recruit minorities. Amanager states, I have seen no bias
whatsoever in our recruiting, hiring, promoting or mentoring programs. Still, the
firm lacks even representation of African-Americans, according to sources. Most
minorities are well represented, particularly Asians, and to a lesser extent Latinos.
African-Americans are very poorly represented in the consulting staff, one
consultant reports. I think the firm is very receptive to minorities and Asians and
Hispanics are well represented at ZS. Unfortunately, the same is not true of African-
Americansdespite ZSs desire to hire African-Americans, we have not had much
success attracting qualified candidates to interview. Another source agrees, ZS
needs to recruit more black men and women to join the company. We are severely
lacking in this area. Still, another associate claims that the hiring system is fair,
asserting that the company does a good job of hiring based on skill, not skin.
Respect for all groups
ZS is supportive of gay and lesbian employees, though sources suggest that policies
may not be officially stated. We have openly gay employees, but I am not sure how
committed the firm is in terms of office-wide respect. Several GLBT employees
have built successful careers, including some in the HQ group, where they have daily
contact with the firms leadership, admits one manager. Another insider says, As
far as I know, the company has no (formal or informal) policy on sexuality. No
questions are asked, and no consideration is given at any point. I know that such
diversity exists within the firm, but I do not believe that it is recognized in any way.
That said, the firm does extend health benefits to same-sex domestic partners who
have lived together for more than one year.
ZS Associ ates
Spotty community service
Community involvement claims participation on an office-by-office basis, sources
explain. One consultant claims, It depends on the local managing principal.
Another source reports that most community involvement comes from individuals
taking initiative and recruiting colleagues to take part in events such as middle and
high school tutoring, and several charitable leadership events in the summer. The
firm itself, however, does little direct community involvement.
At the Chicago office, Toys for Tots and a canned food drive are among the ways
employees contribute to community initiatives, and a consultant adds, Various
efforts throughout the year include tutoring at a local elementary school, raising
money for needy families during the holidays and food drives. Last year we all got
together and built an entire playground from scratch. A Boston staffer notes, We
have a monthly volunteer program at a soup kitchen for the homeless, and a San
Franciscan says co-workers participate in a lot of charity work. Reporting from the
New Jersey office, a source describes a less-involved office: [We have] occasional
charity drives. Not enough emphasis is placed on community involvement.
ZS Associ ates
2000 Powell Street, Suite 600
Emeryville, CA 94608
Phone: (510) 985-6700
Fax: (510) 653-9898
www.lecg.com
LOCATIONS
Emeryville, CA (HQ)
PRACTICE AREAS
Antitrust/Competition Bankruptcy
Claims Services Electronic
Discovery Energy Entertainment,
Sports & Media Environment &
Insurance Claims Finance &
Damages Forensic Accounting
Healthcare Intellectual Property
International Arbitration Labor &
Employment Life Sciences
Mergers & Acquisitions Petroleum
& Chemicals Property Insurance
Claims Public Policy Strategy &
Telecommunications Transfer
Pricing Transportation
THE STATS
Ticker Symbol: XPRT (Nasdaq)
Chairman: David Teece
2004 Employees: 875
UPPERS
Fast growing firm with a lot of
advancement opportunities
Friendly atmosphere
DOWNERS
Inconsistency in hiring practices
Working weekends is normal
EMPLOYMENT CONTACT
www.lecg.com/website/lwcareers.nsf/
OpenPage/Careers
LECG
V A U L T
P R E S T I G E
R A N K I N G
29
THE BUZZ
Economic consulting powerhouse
Academics
Lacks mentorship
Little upward mobility
THE SCOOP
Berkeley born
LECG provides litigation support, expert testimony, regulatory analyses and
management consulting to public and private companies. Launched in 1988 by a
small group of prominent economists and professors at the University of California
at Berkeley, LECG is now staffed with over 1,000 professionals in 10 countries.
Having served clients from the Fortune 500, the firm provides legal advice on
everything from competition and antitrust cases to industry regulation and labor laws,
and its clients are made up of airlines, law firms, Fortune Global 500 companies, and
government and regulatory agencies. LECG went public in 2003 and is traded on the
Nasdaq under the symbol XPRT.
Can I get a witness?
The demand for expert witnesses is booming and LECGs recent annual 20 percent
growth attests to the trend. An October 2005 New York Times article revealed that
lawsuits over who can profit from ideas and innovation have upped the demand for
expert witnesses. With increasingly complex cases in patent disputes as a result of
an IP lawsuit surge, companies are now clamoring for scientists or economists who
can break down a sophisticated issue on the stand. As the stakes are raised, the
challenge to find the best experts to offer independent, objective analysis of cases has
heated up.
In position to compete with other litigation consulting firms, LECG covers an array
of practices and industries, including antitrust and competition, bankruptcy, claims
services, electronic discovery, energy, entertainment, media and sports, environment
and insurance claims, finance and damages, forensic accounting, health care,
intellectual property, international arbitration, labor and employment, life sciences,
mergers and acquisitions, petroleum and chemicals, property insurance claims,
public policy, strategy and performance improvement, telecommunications, transfer
pricing and transportation. LECG experts frequently testify before agencies
throughout the world on matters such as antitrust liability, damage assessment and
cartel investigations.
LECG
Growth spurt
Over the past few years, the firm has been increasing its assets by snatching up
privately held expert services firms. In December 2005, it acquired Houston-based
Beach and Company and Lancaster Consulting LLC in Phoenix. In August 2005, it
purchased Portland firm Bates Private Capital and Neilson Elggren LLP, in Los
Angeles. These acquisitions are in addition to its 2004 pickups: Los Angeles-based
Economic Analysis LLC; Toronto firm Low Rosen Taylor Soriano; Washington
Advisory Group in Washington, D.C.; California-based Silicon Valley Expert
Witness Group; and J. Philip Cook & Associates based in Salt Lake City. The firm
also beefed up its talent pool in February 2006 with 16 new director-level hires, and
in February 2005, a new office in Milan expanded the firms expert pool abroad.
The firms recent expansion mode has fueled robust growth. Revenue in 2005
increased 32 percent to $286.7 million from $216.6 million in 2004. Net income for
the year was also up 31 percent from 2004. In February 2006, LECG President
David Kaplan resigned to focus on his expert services work. David Teece, the firms
chairman, stepped up to become more actively involved in managing the firms
operations.
Free agents
Staying true to its academic roots, LECG operates by combining industry pros with a
staff of PhDs or MBAs to lend guidance and provide expert testimony. These experts
academics, former senior government officials, experienced industry leaders and
consultantsenjoy a high degree of independence. They are autonomous and often
hold positions with other organizations such as universities or research labs. However,
the experts compensation is based strictly on performance, so they are not rewarded
until they bring in work. The data collection, statistical analysis, research and
preparation are contributed by the rest of the firms professional and administrative staff.
Playing fair
LECG industry authorities have frequently testified before the U.S. Federal Trade
Commission, the U.S. Federal Communications Commission and the European
Commission, examining mergers, IP and regulatory standards. The firm has provided
testimony and research in cutting-edge litigation relating to music and the Internet,
including the Napster and MP3.com lawsuits.
LECGs consultants are also sought for their expertise on the relationship between
copyright, innovation and fair marketplace competition. In March 2005, the firms
LECG
competition law experts were called in during a Microsoft lawsuit. The European
Commission claimed that Microsofts bundling of the operating system Windows,
with features like media players and search engines, blocks out fair competition from
other software providers like Apple and RealNetworks. After a five-year
investigation, the European Commission fined Microsoft $613 million for violating
competition laws by abusing its market position. LECG put together evidence to
show that with players like Apple and Sony still in the game, the digital media market
is indeed viable and competitive. Because of the unfavorable decision given by the
Commission, Microsofts appeals will likely keep it coming back to court for the next
few years.
GETTING HIRED
Be prepared for anything
At LECG, insiders say, There is a lot of inconsistency in hiring practices. One
source says that some candidates have to actually interview, while others get hired
on managerial whims. One consultant, commenting on undergraduate hiring
remarks, If you dont know somebody or do not attend the recruiting events (where
they directly recruit from), it is hard to break into the firm. The source adds, though,
that even with a connection, knowledge of accounting is a must. At the senior
level, many come in as already self-sufficient professionals, so LECG is much
more selective in hiring for those positions, a staffer explains.
The interview process itself is detailed, says one source. Candidates endure a
technical interview (finance, accounting and economics), case study with a written
analysis and presentation, [and] a behavioral interview, finally followed by an
interview with the senior principal/director to gauge culture fit. Although involved,
one insider says the whole process took place in a single day, including lunch.
Another source agrees that LECG gets to the point when it comes to interviews: The
interview was comical in its brevity. Since the office was extremely short-staffed, I
was basically hired on the spot. My resume was reviewed, I worked hard entering
data for two weeks as a temp and my academic credentials did the rest.
LECG
OUR SURVEY SAYS
Do your thing
LECG trusts its employees to be the best they can be. At least for more senior
people, there is much independence and very little management, says one source.
Another notes the firm fosters a culture of individualism. In its focus on finance,
accounting and economics, sources report that LECG is analytically intense, and
they appreciate the opportunities to work on intellectually challenging and diverse
projects with brilliant people.
Put in your time
Overall, LECG consultants describe an environment that promotes advancement. To
get ahead, though, staffers must prove themselves from the beginning. It is a fast
growing firm with a lot of advancement opportunities, says one source, and another
reports that opportunities for advancement are good if you work really hard for a
few years. In such an environment where upward mobility is possible, employee
moral is reasonable, and people are always excited and looking for the next big
learning opportunity, says an insider. However, employees say LECG does not offer
a lot of career development and, as a result, junior hires often stay a few years and
then go back to school or off to something else.
Striving for balance
Sources say the firm is attentive to making sure its employees enjoy work/life
balance, but that this can be more difficult for junior staff. According to one
insider, Hours can go really late when there are deadlines (as usual in consulting)
and working weekends is normal. Yet, another points out that the firm has much
flexibility in its schedules, subject to the demands of the clients. The number of
hours varies from person to person, with sources reporting an average of 50 per
week and some traveling two days a week.
Bonding time
Regardless of the hours worked, LECGers tend to have a good time at work, though
the firm notes that the culture in each LECG office is different. Everybody helps
out and the atmosphere is really friendly, says one source. Every Friday, the office
gets pizza or lunch provided and eats together, and there are monthly office wine
LECG
tastings and events. A consultant in another office appreciates that the dress code
is business casual, unless clients are involved. In addition, another employee
reports, The office is very diverse culturally and there are tons of women.
With regard to compensation, insiders say, At senior levels, its eat what you kill.
One source reports receiving a salary, plus a performance bonus. LECG offers
health, 401(k) and stock benefits, pays travel expenses and grants exempt employees
three weeks vacation.
LECG
68 Fargo Street
Boston, MA 02210
Phone: (617) 443-0309
Fax: (617) 443-0166
www.adlittle-us.com
LOCATIONS
Boston, MA (US HQ)
PRACTICE AREAS
Environment & Risk
Operations Management
Strategy & Organization
Technology & Innovation Management
THE STATS
Employer Type: Subsidiary of Altran
Technologies
Ticker Symbol: ALTKF (Nasdaq)
CEO: Richard Clarke
UPPERS
Outstanding focus on innovation
Very reasonable travel
requirements
DOWNERS
No specific program to encourage
diversity
Salaries are lagging behind other
consulting firms
EMPLOYMENT CONTACT
www.adlittle-us.com/careers
Arthur D. Little
V A U L T
P R E S T I G E
R A N K I N G
30
THE BUZZ
Since the beginning of time
Good reputation, little visibility
Not much left after their yard
sale
No clear market positioning
THE SCOOP
Endure and emerge
Based in Boston, Mass., Arthur D. Little is known as the worlds first consulting firm.
Founded in 1886 by chemist Arthur Dehon Little, the MIT dropout who patented
rayon, the firm was the first to contract out research, pioneering the consulting
concept. The firm made a name for itself with technology consulting and research,
conducted at over 100 independent labs. Its R&D efforts led to the patent for the first
synthetic penicillin, the invention of fiberglass, the creation of experiments for the
first moon mission and the design for Nasdaq stock exchange system in London and
Tokyo.
After a bankruptcy overhaul in 2002, the firm auctioned off portions of its business
to firms eager to own a piece of the venerable name. The giant Paris-based
technology firm Altran beat out competitors for the rights to the Arthur D. Little name
with its core management consulting business. The ADL that remains after
rebuilding the practice has more than 1,000 employees working in 30 countries
around the globe. The recreated group offers services in strategy and organization,
technology and innovation, operations, risk management and environmental
consulting. Its clients are largely Fortune 500 clients in automotive, chemicals,
consumer goods and services, energy, TIME (telecommunications, information
technology, media and electronics), transportation and utilities industries.
A new chapter
When a planned spinoff and IPO of its telecom consulting venture collapsed, ADL
was forced to declare Chapter 11. In 2002, the firm sold off parts of the company in
an auction to five buyers for $96 million. TIAX, a private company, was spun off
from the group that had carried on the chemical heritage of its founder, the
technology and innovation group. This sector had been responsible for building
devices used in NASAs Mars Exploration Program and developing products like
sugarless chewing gum. Virginia-based IFC Consulting purchased the global
environment and risk division and public sector program groups, and CRA
International bought the chemical and energy division. Competitor firm Navigant
acquired the advanced energy systems and the technology and innovation
management practices. In August 2002, Arthur D. Little School of Management
(ADL SOM) was taken over by education company, Kaplan Inc. Founded in 1964,
Arthur D. Li ttl e
ADL SOM had been the groups own corporate university, providing all of the
companys internal training.
Reduced, rebuilt
The largest part of the firm went to the French consulting conglomerate Altran
Technologies. The global environmental and risk management offices in Europe and
Asia and the core management consulting operations worldwide were snapped up for
$43 million. ADLs subsidiary, Cambridge Consultants, went to Altran for $13
million. In what was actually a management buyout, Altrans financing allowed local
ADL managers to take over their own practices. Though the firm emerged smaller
after the buyout, the takeover gave clients access to a huge number of resources from
the combined capital of the three companies. Altran reportedly has no plans to
consolidate its companies into a giant conglomerate, but the worldwide branches are
able to take advantage of a massive partnership.
Up and coming
Richard Clarke, a 16-year veteran of the firm, and former managing director of the
Cambridge practice, was appointed CEO in December 2004. Clarke heads up global
leadership at the firm and plans to enlarge its presence by capitalizing on ADLs
brand recognition and strong equity. Clarkes focus is on expanding markets in North
America and Asia-Pacific, and escalating operations in Europe and Latin America.
And in the past few years, ADL has been increasing its international activity. In
March 2006, the firm served as a knowledge partner in the fourth European Business
Summit, a congress and networking event held in Brussels for business people and
European policymakers aiming to heighten competition and innovation in the
European market. The firm is also an annual partner of the World Economic Forum
in Davos, Switzerland, and hosts a Cool Jazz Cocktail Dinner where the economic
elite sip and schmooze. The Korean Foreign Ministry hired ADL in 2004 to conduct
an operational overview and improve labor efficiency. The firm also formed an
alliance in 2003 with Terra, a consulting company in Kazakhstan, to offer
environmental consulting and promote modern scientific techniques in the energy
market. The reemerging ADL seeks to outpace its recent annual 10 percent growth
rate by ramping up its global presence, especially in Asia and Londonareas which,
according to Clarke, are ripe for opportunity.
Arthur D. Li ttl e
Stumbling statements
Though the bankruptcy aftermath has settled, the firm isnt completely in the clear.
In March 2005, ADL agreed to fork over $6.5 million to settle a civil claim with the
U.S. Attorneys office. The government alleged that the firm falsified claims and
inflated its fees for contract work, though the firm did not admit any wrongdoing.
Parent company Altran has also been plagued by a French investigation into claims
that the company created ficititious invoices and fuzzy financial statements. In
September 2004, Altran Founder and VP Hubert Martigny resigned along with two
other executives involved in the claim.
Partners in practice
ADL coined the side-by-side principle to describe its involved approach to a
clients business. The approach is collaborative and means engagements are staffed
with a director, a manager and two or three consultants, to combine a range of
experience and expertise.
To cover the latest projects and relevant developments in the field of management,
Arthur D. Little publishes Prism, a journal of strategic thinking. The firms experts
also publish industry-specific studies, such as the annual Global Broadband Report,
which follows market growth and is archived on the firms web site.
GETTING HIRED
Know your stuff
Arthur D. Little is on the lookout for talent. The firm doubled the size of its London
office last year, and is still recruiting in 2006, sources say, and the Altran group
(which owns ADL) has invested heavily in growing the London and U.S. offices.
Just because the firm is growing, however, doesnt mean job seekers can get away
with not knowing their stuff. If you even try [finagling] your way in, you will be
laughed out of the building, says one staffer. For consultant positions, most
candidates have a telephone interview, followed by a half-day interview consisting
of two interviews, a case study and a presentation on a subject of your choice, a
consultant explains. Applicants for more senior positions are likely to have more
interviews, were told. One source recalls the telephone interview being a 15-minute
review of [my] CV. In-person interviewers, says another insider, will check your
thinking and your analytics, but no need to memorize pi to 10 decimal places.
Arthur D. Li ttl e
OUR SURVEY SAYS
Not your average consulting shop
At ADL, You get to work with a bunch of really creative and driven people, says one
source. Acolleague remarks, Compared with the other consulting firms I have worked
at (or with), ADL seems the most collegiate and supportive of development. Another
agrees: ADL is a little bit better than the usual drab consulting company; this one has
real people. Sources say work is tough, but the colleagues are very supportive, and no
one is killing themselves at work. And thanks to open office spaces, says one source,
you can end up sitting next to the managing directorthis creates a very informal and
creative atmosphere. One employee adds, The focus on innovation here is
outstanding.
Balls in your court
The firms understanding culture, insiders report, is one in which employees have
freedom to act, decide and influence [their] own work. Although directors are
keen to have managers and senior managers develop client relationships, sources
say BAs and consultants are encouraged to develop client relationships with minor
clients.
ADL works its consultants hard, but ultimately, pressure to perform has to come
from individuals, says one employee. There is no up-or-out policy. Promotions
at the firm are based on merit, an associate explains, and are doled out to those who
exhibit sustained performance and contribution to the overall business. In addition,
the source adds, If you do good work, but dont want to take on extra
responsibilities, you can stay at the same grade. The norm? You can typically
expect to go from BAto consultant in 18 months to two years. Consultant to manager
takes two to three years. Manager to senior manager takes two to four years.
All within reason
Sources at ADL are happy to report that there is no culture of face time in the
office. One insider reports, Ive had a few crazy assignments, but only hit the 100-
hour-per-week barrier once in two years; most of my peer group has never hit it.
And, he continues, There is time off in lieu if you work throughout the weekend.
The number of hours per week varies a lot, say sources, with most consultants
logging between 50 and 60 hours per week. Length of projects also varies, and can
Arthur D. Li ttl e
range anywhere from two- to three-day projects to two years. One insider says the
majority of projects are three months, part time.
Travel is very reasonable, says one insider, with the average consultant traveling
about two days per week. And, Our director encourages us to work from home up
to one day a week, a colleague notes. Another points out that because each office
has its own P&L responsibilities, there is less international cooperation across
international projects. It also means you will probably not be sent to Nigeria or
Mongolia (unless you work for the energy practice).
Worth it
Insiders give average ratings to compensation at Arthur D. Little. Salary is not as
high as other firms, and this is a problem for recruitment of fresh MBAs, says one
source. However, this same source adds, The value-for-money I get and the quality
of life I have in terms of work/life balance are outstanding compared with other
international consultancies. Indeed, ADL employees are granted 25 vacation days
per year, plus bank holidays. In addition, sources tell us that the firm offers a very
generous pension plan: 10 percent contribution to personal pension fund, rising to
13 percent after three years with the company, and 15 percent after five years
employment. Health care coverage is also standard, says one source. And some
employees receive a bonus, which one insider reports is 15 percent of your base
salary.
International flavor
ADL has very good representation of women at BA, consultant and manager levels,
including some who came back after maternity leave, says one insider. However,
one London-based consultant notes that the firm has no women at senior managers
or above in the two U.K. offices. Another source remarks that there is no specific
program to encourage diversity. When it comes to minority hiring, an associate
comments that the culture is quite international and there is no racism; there is a
decent representation from minority groups, says a consultant. And with regard to
receptivity to gays, lesbians and bisexuals, one insider says, I am not aware of any
issues.
Arthur D. Li ttl e
615 North Wabash Avenue
Chicago, IL 60611
Phone: (312) 573-5600
Fax: (312) 573-5678
www.navigantconsulting.com
LOCATIONS
Chicago, IL (HQ)
PRACTICE AREAS
Construction
Corporate Finance
Discovery Services
Disputes & Investigations
Energy
Financial Services
Government Contracting
Health Care
Insurance & Claims
THE STATS
Ticker Symbol: NCI (NYSE)
Chairman & CEO: William M. Goodyear
2006 Employees: 2,300 (est.)
UPPERS
Growth is highly encouraged, so
its an exciting place to work
DOWNERS
Has some work to do before it is
widely known as a premium
consulting brand
EMPLOYMENT CONTACT
www.navigantconsulting.com
Submit resume in the Careers section
Navigant Consulting, Inc.
V A U L T
P R E S T I G E
R A N K I N G
31
THE BUZZ
Thought leader
Diversified
Large gap between partners and
consultants
Noncohesive group; just acquire
groups but dont integrate
people
THE SCOOP
Navigating change
Named as one of Forbes 200 Best Small Companies in 2004 and 2005, Navigant
Consulting is often called in to help companies steer through regulatory or structural
change. This strategy consulting firm offers corporate restructuring, claims
management, litigation support, technical analysis, discovery services and
bankruptcy management for clients facing risk, distress or major transformation. The
firm is organized around two main client channels: dispute, investigative and
regulatory advisory services; and business, financial and operational advisory
services. Navigant Consulting serves clients in health care, insurance, construction,
financial services, the public sector and energy industries.
Growth chart
Navigant Consulting was named one of Fortunes 100 Fastest Growing Companies
in 2005and for good reason. Originally known as the Metzler Group, NCI has
steadily increased its knowledge and financial capital by buying out small firms with
complementary services. After the initial IPO in 1996, it made several acquisitions,
including Peterson Consulting and the Barrington Consulting Group. The firm took
on the name Navigant Consulting in 1999, and has since acquired over 15 other
firms.
The past year has seen a continued stream of acquisitions, some of which have
amplified the companys presence on the global front. In March 2006, Navigant
Consulting purchased U.K. firm Precept Programme Management, a dispute
advisory and program management firm for the construction industry. The
acquisition added 46 staff and offices in London. In February 2006, the firm acquired
Inkster Group, a Canadian corporate investigation firm. These followed an earlier
stream of buyouts in 2005. In August 2005, the firm strengthened its international
investigation practice by acquiring the Canadian forensic accounting, litigation
consulting and investigations company Kroll Lindquist Avey, a Marsh & McLennan
subsidiary. Prior to that, the company purchased A.W. Hutchison & Associates, a
construction consulting firm, in July, and its fourth health care acquisition, Tiber
Group, in April. February saw the addition of Casas, Benjamin & White, a financial
advisory firm.
Navigant Consulti ng, I nc.
Going global
As a result of its aggressive growth plan, the firm now boasts over 1,700 consultants
and a presence in Canada, China, the Czech Republic and the U.K. In the U.S., the
firm operates out of offices in 34 cities. With consultants utilization reaching 70
percent in 2005, and revenue at $575.5 millionup 19 percent from 2004
the firm is poised to outperform, analysts say. Navigant Consulting received high
ratings in early 2006, with analysts predicting it will exceed financial expectations
for the year.
Out West
Navigant Consulting has often been sought out for energy expertise by the state of
California. The company assisted the state with conservation and demand response
programs in the middle of the power crisis. In February 2004, the firm won a $2.9
million, 18-month California Public Utilities Commission contract to help local
governments develop and implement energy conservation programs. This Local Energy
Efficiency Program will use the firms services in planning, pilot and outreach. The firm
also plans to devise strategies that local governments can adapt to their own energy needs.
Medical contract malaise
A $13.2 million contract to take over the management of failing hospital Martin
Luther King Jr./Drew Medical Center was awarded to Navigant Consulting by the
city of Los Angeles in August 2005. The hospital had been blamed for deaths and
injuries due to lax patient care, and had lost its accreditation. In an LA Times article
at the time, one of the firms top executives said that although Navigant Consulting
had been hired to improve conditions, the firm itself had also lapsed in reporting
incidents of delayed patient care in two cases.
Navigant Consulting has continued to bring in health care consulting contracts. Recently
it has been hired by health care organizations in North Carolina, Ohio, Virginia and
Washington to revamp operations, assist management and turn around losses.
GETTING HIRED
Big man on campus
Navigant Consulting has a pretty extensive campus recruiting systemif youre a
student, its a good bet that the firm will be tabling at your schools annual job fair.
Penn State, Rutgers, Berkeley, UCLA, Baylor, Indiana and Wake Forest are just a few
of the institutions frequented by Navigant Consulting representatives. The full list is
too long to quote at length, but check the firms web site to see if the company will
be at your school. NCI also offers a summer internship for current studentsone
great way to get your foot in the door.
After passing the initial phone screen, expect two rounds of interviews. The first will
involve management right off the bat. For the second, one new hire who experienced
a quick turnaround reports, I was called back for a second-round interview. During
an office super day, I experienced five interviews, including a case study. I heard a
decision a week later. One senior-level employee nonchalantly remarks that from
his experience, overall, it wasnt too challenging.
OUR SURVEY SAYS
Appreciating autonomy
If being micromanaged is not your cup of tea, Navigant Consulting may be the place
for you. Insiders agree that it is a very entrepreneurial workplace and highly
meritocratic. Heres a lengthy report from one consultant: The company is a very
young, friendly culture. Many of the employees are 27 and under. This is both good
and bad. It is a lot of fun to work here, but at the same time, you are not exposed as
often to older, more knowledgeable people. You really have to be self-motivated to
learn on your own and to push yourself ahead. Young consultants are generally
excited that quality work leads directly to advancement and increased
compensation.
Less is not necessarily more
As far as travel, it comes with the job, but Navigant Consulting workers arent die-
hard road warriors. One source says, Travel is quite prevalent ranging from 0
percent up to 100 percent. The average, I would estimate at 40 to 50 percent. If you
express a strong distaste for travel, the company will try to work around it, however,
it is frowned upon. Work hours are said to be relaxed compared to other consulting
firms, but one consultant complains that hours are highly unpredictable. One week
I might be out of the office at 5:30 every day, and then the next I might work a 70-
hour week. Whenever work revolves around litigation, strict deadlines create
frequent time crunches. The good thing is that such time crunches are short-lived.
The same source seems to suggest that the hours even out in the end. He continues,
Twenty-four hours of straight work is not uncommon, but then the next day is
usually a relaxing one. On average, I would say one should expect to work from 8:30
to 6:30 on a daily basis. You rarely have to work on weekends, which is nice.
Navigant Consulting is a
highly meritocratic and
very entrepreneurial
place to work.
Navigant Consulting insider
1676 International Drive
McLean, VA 22102
Phone: (703) 747-3000
Fax: (703) 747-8500
www.bearingpoint.com
LOCATIONS
McLean, VA (HQ)
PRACTICE AREAS
Enterprise Agility
Enterprise Solutions
Finance Solutions
Managed Services
Management Consulting
Outsourcing
Search Solutions
Strategy, Process & Transformation
Technology Infrastructure & Integration
Industry Focus Areas:
Financial Services
Commercial Services
Public Services
THE STATS
Ticker Symbol: BE (NYSE)
CEO: Harry You
2006 Employees: 17,000+
UPPERS
Entrepreneurial feel
Teamwork is excellent in the
company
Visibility to the top management;
very little micro-management
The people are great, top-notch
DOWNERS
No pay increases for a number of
years
Difficult to change roles
Not enough communication about
strategy
Were still transitioning to being a
public company and everything
that entails
EMPLOYMENT CONTACT
bearingpoint.recruitmax.com/eng/can
didates/default.cfm
BearingPoint
V A U L T
P R E S T I G E
R A N K I N G
32
THE BUZZ
Strong IT and public sector
On the rise if management gets
it together
Kings of mediocrity
People business that does not
care for its people
THE SCOOP
Moving forward, challenges remain
BearingPoint is on the move, but still has growing pains to work out as it completes
its evolution from a partnership to a public company. The McLean, Va.-based firm
boasts a huge profile in the government world, working with agencies from the local
to the federal level on civil and military-oriented projects. At the same time,
BearingPoint is no slouch in the private sector, serving more than 700 of the Global
2000, including all of the Fortune 100s software, electronics and pharmaceutical
companies, as well as nine of the top 10 global wireless carriers and the top 10
banking and finance companies in the U.S. While BearingPoints business is strong
in the U.S., the firm also has a truly international interest, with major practices in
Europe and Asia, and working on far-flung global projects such as helping to
establish Afghanistans new economic playing field.
BearingPoints biggest challenges can be found in its own finances. As of early 2006,
the firm was recovering from a messy few fiscal years, fraught with earnings
restatements, unhappy shareholders and an inquisitive Securities and Exchange
Commission. At the same time, the firm continued to rake in contracts and attract
blue chip talent in many of its sectors. As the firm gets its financial house in order
under the leadership of new CEO Harry You and a host of new management figures,
BearingPoint seems poised to turn its many impressive contract wins back into
profits for the long haul.
Finding its bearings
BearingPoint is one of a handful of consultancies that split its strategy arm from a
Big Five accounting firm a few years back. The trend of dividing consulting from
accounting businesses can be traced to corporate scandalsEnron, anyone?when
the business world realized that it needed to avoid the appearance of conflict of
interest by having different entities handle financial controls and business strategy
advice. After it was spun off from Big Five heavy KPMG in January 2000, the firm
now known as BearingPoint operated as KPMG Consulting. In 2002, it rebranded
with its new name, designed to reflect the concept of setting direction to an end
point.
These days, the firm employs more than 17,000 staffers in around 40 offices
worldwide. BearingPoints business is divvied up among North America, Latin
BearingPoint
America, Europe, Middle East, Africa (EMEA) and Asia. In the near future, the firm
says, it plans to align all of its geographic units more closely with its North American
industry groups. Currently, BearingPoint arranges its lines of business into three
divisions: commercial services, serving consumer, health care, industrial, technology
and communications clients; financial services, serving banks, brokerage houses,
insurance companies and other large financial institutions; and public services,
covering federal, state and local government clients. The latter group generally
contributes the largest share of BearingPoints revenue pie, as the firm enjoys a
healthy stream of contracts from the public sector.
Fun with finances
BearingPoint has taken steps to right its financial ship over the past couple of years,
but it hasnt been easy. Back in 2002, signs of financial trouble appeared when the
firm began a series of layoffs, restructurings and bonus reductions that dampened
employee morale. Shareholders got their own dose of the blues soon thereafter, when
BearingPoint announced that it needed to restate its earnings for the first three
quarters of fiscal 2003, cutting profits by $10.8 million. The firm blamed the glitch
on complications associated with its many acquisitions throughout the yearmost
notably its May 2002 acquisition of most of Andersens global consulting operations,
a deal worth up to $284 million.
The numbers only grew more complicated, however. In November 2004,
BearingPoint announced that it had miscategorized $92.9 million in assets,
attributable to a clerical error. Soon thereafter, the firm disclosed yet more
problems, reporting that it would take a restructuring charge of as much as $67
million, as it planned to eliminate some office space. BearingPoint also disclosed
that it was evaluating whether to reduce or sell some overseas operations. In March
2005, the firm delayed filing its annual report, citing a need to ensure compliance
with accounting practices as it implemented a new financial accounting system. The
firm said it was undertaking a thorough review of its statements and had found that
its internal controls over financial reporting as of December 31, 2004, were not
effective. In addition, BearingPoint said it had identified certain items that would
probably require it to restate earnings for at least the first three quarters of fiscal year
2004.
BearingPoint
The waiting is the hardest part
Delay piled upon delay, and by late 2005 the firm still hadnt reported its required
earnings statement for fiscal year 2004 to the Securities and Exchange Commission.
Shareholders grew antsy, and the inevitable rash of class-action lawsuits began.
Some holders of subordinated debentures issued by the company asserted that the
firm was in default because it failed to make the SEC filings on time. Law firms
representing plaintiffs have begun demanding that the firm repay its Series A and
Series B debentures immediately. But while the firm continues to be plagued by
lawsuits associated with the late filings, it has rejected them as meritless. The legal
trouble doesnt end there, however. In December 2005, as expected, the firm had to
enter a $15.5 million settlement agreement with the Department of Justice over
allegations of potential understatement of travel credits to government contracts.
And in October 2005, the firm reported that the SEC, which had been looking into
BearingPoints earlier earnings restatements, had decided to launch a formal inquiry
into the matter. According to BearingPoint, the SEC has subpoenaed the firm for
certain financial information and documents associated with the earnings
restatements, and the company continues to cooperate with the investigation.
Sweeping the corner offices
While this financial drama played out, a corresponding management shakeup was
taking place at the firms highest rungs. In November 2004, BearingPoints chairman
and CEO, Randolph Blazer, who had led the firm since 2003, bailed unexpectedly
and without giving a reasonthough he did leave with a cool $2.5 million severance
package. The firm had barely recovered from the surprise when, a week later, CFO
Robert S. Falcone stepped down. In January 2005, the firm replaced Falcone with
Joseph Corbett, an exec with long ties to the company through KPMG (Corbett,
however, only stayed on until May 2005).
In March 2005, industry observers hailed the news of fresh leadership at
BearingPoint. Harry L. You, a former CFO for Oracle and, before that, for
BearingPoint rival Accenture, entered the firm with guns blazing. Calling
BearingPoints fiscal follies embarrassing and inexcusable, he announced that the
firms first order of business would be to reestablish financial credibility and
consistency with an unswerving commitment to transparency in disclosure and
rigorous financial processes.
Yous arrival was followed by a string of appointments and new positions in
BearingPoints executive suites. On the accounting end, in July 2005, the firm
BearingPoint
appointed Judy Ethell as executive VP of finance and chief accounting officer.
Ethell, a CPAfor 23 years, was charged with completing the firms internal audit and
helping it get its financial transformation efforts in order. In December 2005 the firm
named a new corporate controller, Thomas McHugh, a 20-year financial management
vet who reports to Ethell. That same month, the firm also boosted its profile on the
shareholder side, appointing two seasoned execs to its global investor relations
department. James Hart, named director of investor relations, joined the firm from a
similar position at AT&T. The firm also snagged former Accenture investor relations
director Francesca Luthi to head up global investor relations and communications, as
well as industry analyst relations in the EMEA regions.
Other areas of the firm also saw plenty of management change. In September 2005,
BearingPoint announced a few adjustments designed to help the firm better focus on
larger, more complex client engagements. These included the appointment of former
PricewaterhouseCoopers Managing Partner Robert Glatz as executive VP for
corporate development and global capture, new positions for the firm; former A.T.
Kearney VP Andrea Bierce, to the newly created position of executive VP for global
capture; BearingPoint and Andersen vet Michael Lyman, as executive VP and chief
strategy officer; and former PwC Partner Michael Reuschel, as senior VP of the
communications and media practice. And in June 2005, the firm announced the
appointment of Connie Weaver, an industry veteran, as executive VP and chief
marketing officer.
Positioning itself for success
In early 2006, BearingPoint further boosted its high-tech credentials with the creation
of a new position at the firmsenior VP of technology consulting. S. Singh Mecker,
who previously served as CEO (and founder) of software startup Valdero, was tapped
for the role. Mecker also did time at KPMG, PeopleSoft and Oracle. In December
2005, the firm created an executive VP of technology solutions position, hiring Joni
Kahn to fill the role. Kahn joined the firm from software company Business Objects.
In January 2006, the firm announced another new positionchairman of EMEA
appointing 30-year Accenture vet Keith Burgess to the role. Appointed to work
closely with Burgess as executive VP of EMEA was Peter Mockler, a BearingPoint
consultant who joined the firm in 1989. The firm made another appointment in
February 2006, tapping Laurent C. Lutz as its general counsel and secretary.
Formerly associate general counsel for Accenture, Lutz reports directly to CEO You.
BearingPoint
Extra! Extra! Read all about it!
All of this change at the top is finally making a difference at BearingPoint. The firm
published its long-awaited 2004 Form 10its annual report of the years earnings
in January 2006. The late filing, the firm said, was due to a variety of factors,
including the need to go back and review its internal financial controls and contracts
and to assess its compliance with the reporting regulations mandated by the
Sarbanes-Oxley Act. Though the firms revenue, at $3.4 billion, showed a healthy
increase of 7.8 percent from 2003, BearingPoint still saw a net loss of $546 million
for the year. In March 2006, BearingPoint provided an update on its 2005 annual
report, noting that it had filed a motion to extend the deadline to July 31, and
extended the deadlines for its quarterly reports for 2005 and the first half of 2006.
Previously, the firm announced that it expected fiscal year 2006 to bring between
$3.5 and $3.7 billion in gross revenue, marking a return to profitability for the
company.
In its 2004 earnings report, the firm announced several ways in which it planned to
right its ship, including improving service offerings, engagement profitability and
project management, and reducing the cost of corporate services. Part of these
improvements, BearingPoint said, will come from increasing the targeted use of
lower-cost resources offshore in places like India and China, as well as domestically.
Bulking up in India
BearingPoint is no stranger to outsourcing, taking a strategic and focused approach
to the practice. The firm concentrates on the applications management and vertical
BPO segments, steering clear of the crowded infrastructure outsourcing and
horizontal BPO markets. The firm laid out ambitious expansion plans in India and
China in 2003 and 2004. Analysts hailed the move, noting that the firms lack of
presence on the subcontinent was weakening its position in the competitive
consulting market. Meanwhile, in China, BearingPoint has an Asian hub in Shanghai,
along with offices in Beijing and Guangzhou. In April 2006, the firm announced
plans to boost its Indian headcount to 1,000 over the ensuing two years.
BearingPoint execs said they aimed to build a senior-level team in the region,
focusing on ERP, SAP and enterprise application services. The firms new global
development center in Bangalore has the capacity for 600 staffers; another global
development center in Chennai is a partnership with Covansys.
BearingPoint
Outsourcing at home
The firm also has invested in less costly areas back home. In March 2005,
BearingPoint announced that it was opening a software development center in
Hattiesburg, Miss., near the University of Southern Mississippi. The initial aim of
the center was to provide government clients with access to highly skilled, cost-
effective resources for applications development and testing, technical support and
managed services; after it has ramped up, the center will serve commercial clients as
well. To sweeten the deal, Mississippi offered an aggressive incentive package,
including tax credits and workforce development grants. In February 2006,
Mississippi Gov. Haley Barbour helped inaugurate the new Global Development
Center, which is expected to add up to 250 high-tech jobs in the community.
A healthy presence
BearingPoint has taken steps to raise its health care consulting profile recently,
building a client roster that includes all of the health care agencies associated with
the federal government, as well as six of the 10 largest health care systems. In
December 2005, the firm scored a $9.8 million contract from the National Center for
Public Health Informatics (NCPHI), an organization within the Centers for Disease
Control and Prevention. BearingPoint was tapped to provide an array of services,
including supporting the continued development and operation of the NCPHI
program management office, as well as providing program management services to
support critical CDC health services.
In August 2005, the firm won an engagement valued at up to $15 million from the
CDC, its largest contract ever from the group. The firm was contracted to help the
CDCs Coordinating Office for Terrorism Preparedness and Emergency Response
(COTPER) with a range of services, including strategic planning, business process
improvement and web development. Since November 2001, the firm has been
working with the U.S. Department of Health and Human Services to implement a
new centralized financial management system, known as the Unified Financial
Management System (UFMS) project, which may become the single largest civilian
financial system in the world. On a phased-in basis, BearingPoint is replacing
redundant and outdated financial systems at agencies such as the Food and Drug
Administration and the Centers for Medicare and Medicaid Services.
As if these health care credentials werent enough, in October 2005, the firm hired
another marquee name to its health services practice, appointing Dr. Michael L.
Cowanformer senior VP of health care solutions at Oracle and surgeon general for
BearingPoint
the U.S. Navyas its chief medical officer. In August 2005, the firm appointed Dr.
Barry Chaiken as its associate medical officer. Chaiken, a medical researcher with
over 20 years of experience working with the National Institutes of Health and other
high-profile organizations, was tasked with helping to enhance the firms visibility
and thought leadership in the health care sector. As payoff for all of its health-
boosting efforts, in August 2005, industry magazine Modern Healthcare named
BearingPoint No. 8 on its list of the top 10 health care consultants.
Homeland helpers
Thanks to its strong ties in the public sector, BearingPoint has been tapped for a
variety of homeland security projects. In the public sphere, perhaps the biggest
recent win is the firms September 2004 deal to serve as the prime contractor for the
Department of Homeland Securitys eMerge2 Program (which stands for
electronically managing enterprise resources for government effectiveness and
efficiency). Under a blanket purchase agreement valued at up to $229 million, the
firm is working to implement a DHS-wide solution to deliver accurate, relevant and
timely information for the departments decision makers. In August 2005, the Port
Authority of New York and New Jersey awarded BearingPoint a $5.2 million contract
to continue its work on the Operation Safe Commerce (OSC) project, a program
designed to improve security procedures for cargo containers entering the country.
The project involves implementing a range of best of breed technologies in order
to monitor containers along the supply chain. The firm has also brought in
multimillion-dollar contracts to help the U.S. Navy with various program
management and IT-related projects.
BearingPoint also lends its skills to other government agencies. In March 2006, the
firm was awarded a $69 million contact to implement a new payroll and personnel
system for the State of California. Working with SAP Public Services, BearingPoint
was charged with replacing an obsolete, 30-year-old system with a state-of-the-art
solution. In November 2005, BearingPoint was selected as one of 15 large firms
eligible to compete for certain Internal Revenue Service contracts, valued at up to $3
billion over five years. Under the contract, the firm may be selected to provide
strategic business services and systems security services. The firm got another vote
of confidence from the Federal Deposit Insurance Corporation (FDIC) in August
2005, in the form of a $23 million contract to help consolidate technology security
self-assessment and monitoring activities.
BearingPoint
Too close for comfort?
But like many of its consulting peers with public sector ties, the firm has come under
pressure in the U.S., largely through its work in Florida, which has caused some
critics to carp about its close ties to Governor Jeb Bush. In late September 2004,
BearingPoint was cut from a $126 million contract to run the data center for the state,
following an investigation that turned up alleged improprieties with the bidding
process (rival Accenture also was taken off the project). And in December 2004, after
more than a year of escalating grumblings over the firms work in Florida, the Justice
Department and Veterans Affairs Department launched criminal and civil
investigations into one of the firms previous engagements, a computer system at
Floridas Bay Pines VAMedical Center.
International aid
None of these disputes have hindered BearingPoints success on the international
levelin fact, the firm has become a go-to source for countries overhauling and
modernizing their economic and other structures. In a three-year, $45 million
contract offered in November 2005, the U.S. Agency for International Development
(USAID) tapped BearingPoint to continue its support of economic policy reform in
Afghanistan. The firms duties under the contract include helping USAID in
upholding its mission to support the rapid transition of Afghanistan to a more stable
and productive state through the promotion of democracy, rule of law and sustainable
economic and social development that is responsive to citizens needs. The
engagement follows an earlier USAID contract the firm won in Afghanistan in 2002.
BearingPoint also works with Afghanistan directly, having been awarded a nearly $7
million contract for work in the republics ministry of finance in September 2005.
BearingPoint has taken on these types of projects in Iraq, Kosovo and Southern
Sudan, using local workers where possible.
The firm also works with USAID elsewhere in the worldin October 2005,
BearingPoint was awarded a $125 million contract to help implement a broad
program of economic, financial and private sector reform in Egypt. The firm has
deep experience in the country, having worked for 15 years on Egyptian economic
policy development. This latest engagement tasks BearingPoint with helping USAID
on Egypts trade environment, financial services modernization, policy reform,
human resources issues and more. USAID also extended BearingPoints contract for
work on economic policy reform in Montenegro in September 2005, the final stage
in a seven-year engagement in the country. And in July 2005, the firm won a $10
BearingPoint
million USAID contract to help Turkish Cypriots improve their business practices in
Cyprus, helping to create a climate that will support the reunification of the island.
Of course, BearingPoint serves the private sector, too, often through tech-heavy
engagements. In August 2005, BearingPoint was awarded a managed services
contract from Hawaiian Telecom Communications, covering a broad enterprise
system implementation. And in May 2005, the firm signed a three-year, $18.9
million contract with Purdue University to serve as the prime system integrator for
OnePurdue, the schools initiative to modernize the systems that support student
services, human resources, research administration and finance.
Google it
In January 2006, the firm announced that it was partnering with forestry giant Stora
Enso to develop a next-generation radio frequency identification solution,
PackAgent, designed to identify and track products throughout the supply chain. But
BearingPoint really made a splash in the tech world in February 2006, when it
announced a partnership with search engine empire Google for a new search
solutions practice group, established to deliver search solutions to major enterprise
clients. The tool offers customized search technology tailored to specific business
environments in industries such as pharmaceuticals, banking, brokerage, high-tech
and aerospace. By delivering integration assistance along with tech solutions like
application plug-ins, BearingPoint expects to cash in on the heavy demand for
enterprise search solutions (Googles enterprise business more than doubled in 2005).
In March 2006, BearingPoint announced an exclusive partnership with Archon
Technologies, to jointly pursue tech-driven solutions for vehicle registration, drivers
licensing and revenue management services to motor vehicle departments in the U.S.
and Canada.
Empowering readers
Research is another of BearingPoints strengths. In October 2004, the firm
announced the launch of its first-ever custom magazine, Business Empowered, a
quarterly publication designed to cover emerging business and technology trends and
issues facing chief executives. The publication, part of a larger marketing partnership
with Forbes, Inc., had an initial circulation of 50,000. In April 2005, the firm
launched the BearingPoint Institute for Executive Insight, a professional knowledge
and research organization geared toward C-level executives on critical business
challenges. The firm shares reams of research on its web site, covering an array of
BearingPoint
industries and topics. A white paper discussing how broker-dealers can prepare for
the SECs new National Market System regulations was issued in March 2006. In
February, the firm offered another white paper on the credit derivatives crisis,
geared toward financial services companies. And in November 2005, the firm
published a feasibility study aimed at helping airlines and airports quantify the
potential business benefits of using RFID for baggage handling systems.
Sharing the wealth
BearingPoint staffers arent shy about community service. The firm committed an
estimated $1 million for in-kind contributions to clients dealing with the effects of
Hurricane Katrina, in addition to thousands contributed to the Red Cross by the firm
and its employees. Consultants also gave up thousands of hours of paid leave to help
fellow employees affected by the disaster. The firm offered a similar employee
matching donation following the tsunami in Southeast Asia in late 2004.
BearingPoint has also been active with professional golfer Phil Mickelsons work
with the Special Operations Warrior Foundation, an organization dedicated to
funding college education for the children of Special Operations personnel killed in
operational or training missions.
Oh, wont you stay?
Attracting and retaining consultants has become a pressing concern for BearingPoint
in recent years. In 2005, consultant turnover reached around 27 percent, up from 22
percent the year before. To tackle the brain drain, BearingPoint introduced some
employee retention programs. These include streamlining the management structure;
reducing excess management layers while focusing on retaining managing directors;
revising compensation to raise the variable component (such as bonuses) while
reducing the fixed percentage of salary; encouraging stock ownership by
nonmanaging directors; and using better metrics for employee evaluations, rewards
and advancement. In January 2006, some employees received a 1.5 percent cash
bonus; in January 2007, the firm said, the same amount would be put into employees
stock purchase program accounts to allow for the purchase of BearingPoint shares at
a 15 percent discount.
BearingPoint is also on the hunt for fresh talent. In a 2005 BusinessWeek feature,
BearingPoint recruiters said the firm was finally returning to campus recruiting after
staying away for a few years during the fiscal downturn. The article said 50 MBAs
BearingPoint
were hired by BearingPoint during the 2005-2006 academic year, and the firm has a
formal summer internship program in the works.
GETTING HIRED
Individual paths converge
BearingPoints online Career Network allows you to describe your ideal job, and
matches you up with openings once youve created a profile and posted your resume.
The firms hiring practices are all over the map. Some consultants report multiple
rounds of interviews with personnel from every level, while others were hired after
just one or two. It depends on the level for which you are applying. You can expect
to be screened by a recruiter, then your info is given to the hiring manager.
Depending on the size of the team and the level, you can expect at least two more
up to four or five moreinterviews after speaking with the recruiter, explains one
source. An insider tells us, There are several interviews conducted, starting with the
manager, co-workers, director or managing director and also the executive sponsor.
According to another colleague, I had five interviews over two sessions, no written
test or skills demonstration (like being given time to prepare on a topic then
presenting back to the interviewers).
On the flip side, others experienced a speedy hiring process. I had two interviews
and was hired, an insider says. And another source, who had a foot in the door,
reveals, I was recruited by an old boss so I only really had one interview.
OUR SURVEY SAYS
At least they have each other
Insiders tell us that BearingPoints culture has yet to be defined. Many consultants
attribute this lack of solid structure to the state of transition the firm has been in since
2000. According to one, Our culture has been changing so much in the past year
that were really in a state of flux (in terms of culture only). The one thing consistent
is our high-performance culture. A consultant reports that things are noticeably
changing since the new CEO stepped in: While there hasnt been a strong culture
here in the past, you can see the new executive management team building one, and,
BearingPoint
as another source confirms, Its actually getting much better since weve been under
Harrys managementless feeling of hierarchy, more communication at all levels.
But the years of changing management have taken a toll on the firm, as one insider
comments: Many of our internal systems and processes are broken, which puts an
additional burden on all employees. The light is at the end of the tunnel, but were
not there yet.
Even in this state of flux, consultants remain positive about their colleagues: Were
still dealing with old partnership attitudes and, in some respects, lack a culture of
cooperation and teamwork as a whole. The people, however, are wonderful and a
pleasure to work with, says a source. Another insider adds, The one thing that
unites us is that we are all motivated, intelligent and autonomous individuals. And
as a colleague exuberantly states, I really take pride in working here because the
people are so bright, hardworking and impressive.
No clock watchers
Consultants at BearingPoint are hardworking, but seem to aptly juggle their time to
accommodate personal needs. Most report working an average of 50 hours a week,
with the typical travel schedule being four days and three nights away. The firm
offers the flexibility to work where I want and to keep the hours that I want as long
as I complete my tasks, said a source. Our culture is to be available at any time,
but there is a strong understanding that we need to take time off and to attend to
personal items. ALondon consultant adds, the culture is grown up and not a clock
watching approach, which is very healthy.
Find your own balance
Several consultants boast that one of the firms best perks is its flexible work
arrangements. One professes, BearingPoint is great in its flexibility for
telecommuting. Im not sure I could find this much flexibility at many companies in
my area. Another manager found that what works best is a job-share position
where I work part time. And one source says that the key to an accommodating
schedule is to not be shy about asking for it, stating, The firm is not very open about
its policy of work/life balance, so many people feel intimidated to ask for the
flexibility.
While one employee grumbles that there is lots of lip service to work/life balance,
not a lot of reality, on the whole, the firm gets kudos from employees on this issue.
But insiders explain that finding the balance is up to the individual. Work/life
BearingPoint
balance is a challenge, but Ive been realizing this may have more to do with my
personality than with the requirements of the job. If I didnt work so hard, there may
or may not be consequences, but its not my nature to give less than 100 percent.
Another source comments, I do selective e-mailing and other work on the weekends.
Rarely is it required. [And] BearingPoint does allow me time to get my MBA part
time, which Ive been doing for almost two years.
A real family firm
This flexibility is good news for those family folk, who are able to find time at home.
I have the flexibility to work from home. I have a small child so I need to leave
before 5 to get to day care, one working mom remarks. And as a manager explains,
BearingPoint leadership has been extremely flexible as I try to find a work/life
balance. I recently returned to work from maternity leave, and am able to work a
flexible schedule, allowing me to be successful both at work and at home.
Alternative working arrangements are also an option, according to another female
consultant, who appreciates the job-share opportunity for a working mom.
Making headway
BearingPointers voice concerns that the path to promotion is not well defined, and
would appreciate a more clear, demonstrated career path. According to a source,
Theres no clear direction on whats expected for promotion, especially for those
who work in infrastructure. Another member of the infrastructure team notes that
infrastructure is relatively flat, so promotion is difficult and infrequent. Confusion
over promotion may vary by group, though, as one colleague suggests that different
teams have divergent paths to the top. There is still a great deal of variety in the
promotion policy by team and business unit. But generally, an employee who is
performing at or above expected levels will have opportunities to advance. Another
consultant agrees, asserting that there is plenty of opportunity to move up.
Sources agree that BearingPoints promotion policy is not up-or-out. I would not
say its up-or-out. The promotion policy is you must be operating at the level to
which you will be promoted. Others, observing the same merit-based promotion
schedule, note some natural up-or-out movement, based on personal motivation. One
insider explains, Promotion is based on performance. If you dont perform well,
you may not stick around because you will not be promoted or compensated. The
same seems to be true overseas. One U.K. source comments, People tend to
advance very quickly or leave in the London office.
BearingPoint
Learn as you go
Training requirements at BearingPoint seem to vary by office. One insider notes,
Training is official. We have over 2,000 online courses and many instructor-led
courses to choose from. We are required to take 40 hours of training a year. On the
contrary, several consultants contend that while BearingPoints official training exists
in the form of web courses, the real learning comes from day-to-day assignments.
One reports that the online courses are usually pretty good. Training was pretty
much on the job. Amanager agrees: On-the-job training is the best sort of training
we have. I have done several CBT courses heretheyre pretty minimal in value.
Another consultant agrees, but suggests that we should have more instructor-led
training, and there should be more of a commitment from leadership for us to
complete training.
Wheres my raise?
Salary isnt BearingPoints primary strength, according to insiders, and the quality
and frequency of bonuses is a source of concern for many. I would say
compensation is the least attractive [thing] at BearingPoint. Since I have been with
the company, I have not received one bonus and it has taken many years for my salary
to meet the industry standards. One consultant remarks, Id be happy with
anything at this point, since I havent seen a healthy [raise] since I first started with
the firm in 2000. Another source boldly states, Like most firms, if I want a solid
raise, Im going to have to leave, or threaten to leave, the company. An insider
echoes these frustrations, but in the end seems to feel that money isnt everything.
Im frustrated that my raises havent been adequate for my performance, but Im
pleased with the flexibility and caliber of people I work with on a daily basis.
Perks for pets
Coming up shy of its consultants monetary expectations, reviews of the firms
additional perks are mostly positive. Pet insurance stands out, but I think flexible
work arrangements are the best, comments a colleague. The firm also gets high
marks for its liberal time-off policy. An insider remarks, The vacation benefit is
excellent, while another adds that the firm is very generous with vacation time. I
get five weeks vacation, which Im never able to use up. Another consultant praises
the comprehensive medical plans with fairly low employee payments and free back-
up child care. And sources add that there are the occasional goodies like free
tickets for events and activities, sports and social clubs.
BearingPoint
One perk at BearingPoint is its stock purchase plan, which some declare hasnt been
a big plus of late. Weve had some special programs this year to promote employee
ownership, but they dont make a big impact to the average employee, says an
insider. Acolleague, noting the recent stock option policy change, adds, Employee
stock options were given when we first went public but they have not been worth
much. Recently, BearingPoint implemented a new program that gives us 6 percent
of our salary in stock. Among other benefits is a very modest 401(k) match.
Another source suggests, It would be great if they helped fund employees getting
advanced degrees.
In the mix
Most consultants give BearingPoint favorable reviews for diversity, though some
believe it still has a long way to go, especially with regard to women. Despite its
favorable work/life balance reviews, some maintain that further initiatives need to be
taken to accommodate working moms. We dont really have good programs in
place, so its difficult when women have to make the choice between families and
work. Weve expanded our contingent of executive-level women recently, which is
good, but its disappointing that they were brought in from the outside instead of
being promoted from within, explains one manager. A colleague says the firm
should consider more benefits for working moms, suggesting that it would be
helpful to have assistance with parenting issues such as day care subsidies, nanny
placement/day care placement assistance. Still, an insider notes definite progress at
BearingPoint, saying, I actually see the promotion of women and minorities
happening more and more. I think it comes down to [the] firm looking for the best
employees.
When it comes to minorities, the firm gets high marks. With respect to hiring gays
and lesbians, an insider tells us, I dont think we have any defined commitment in
this regard. I dont think we discriminate, but I dont think we do anything to openly
welcome this demographic. The firm must be doing something right: One source
observes that we seem to have a sudden influx of openly gay team members. And
a colleague explains that our benefits are offered to life partners as well as
employees.
Denim days
Insiders report that BearingPoint actively supports employee efforts to donate time
and money to community charities. One consultant comments, They have gotten
BearingPoint
much better about making community service easier for busy professionals. If I
wasnt so busy myself with a small child, I would do more. Theyve really done a
nice job making it easy to participate. Employees at the firm can get involved
through connectivity teams that plan events for each office on a local levelas one
consultant points out, Local offices support local charities. Another source
explains, Each office has an active community service committee, which plans
blood drives, clothing drives, participation in the Relay for Life, etc. A colleague
adds that his office has sponsored Jeans Days, where about once a month you can
wear jeans on Friday for a $5 fee supporting a local charity that was submitted by a
co-worker. The firm will back up employees efforts to give to causes of their
choice. Another insider adds, We currently have a foundation that secures grant
money for charities of interest to employees.
BearingPoint
BearingPoint
The firm offers the
flexibility to work where I
want and to keep the
hours that I want as long
as I complete my tasks.
BearingPoint consultant
599 Lexington Avenue, 43rd Floor
New York, NY 10022-7642
Phone: (212) 605-5000
Fax: (212) 759-3045
1000 El Camino Real, Suite 250
Menlo Park, CA 94025-4327
Phone: (650) 853-1660
Fax: (650) 324-9204
www.cornerstone.com
LOCATIONS
Boston, MA
Los Angeles, CA
Menlo Park, CA
New York, NY
San Francisco, CA
Washington, DC
PRACTICE AREAS
Accounting Antitrust Auction
Strategy/Game Theory Energy
Financial Institutions General
Business Litigation Intellectual
Property Real Estate Securities
Valuation
THE STATS
CEO & President: Jim Malernee
2006 Employees: 320
2005 Employees: 270
UPPERS
Meaningful responsibility for
analysts
Steep learning curve
Excellent preparation for graduate
school (MBA, PhD or law school)
Flat, dynamic environment
DOWNERS
Compensation should be more
performance-based
Growing company makes future
analyst role uncertain
Possible plateau in developing
skills depending on
casework/managers
Lack of exposure to international
issues and cases
EMPLOYMENT CONTACT
www.cornerstone.com/fram_car.html
V A U L T
P R E S T I G E
R A N K I N G
33
THE BUZZ
Key player in econ consulting
niche
Very receptive to work/life
balance
Good support work, but not a full-
service firm
Impossible workload
THE SCOOP
Litigation support
Law firms involved in high-stakes commercial litigation often turn to Cornerstone
Researchwhich specializes in economic and financial analysisfor guidance.
Clients have included nearly all major securities firms and other financial
institutions, top consulting and other professional advisory firms, leading
pharmaceutical and biotech companies, major participants in energy markets, over
100 Internet and other high-technology firms, and large telecommunications
providers.
May I have a witness?
A big part of the Cornerstone game is selecting the best expert witness to take the
stand. The firm has a partnership with over 200 industry and academic insiders at
its disposal for providing expert testimony. The list is heavy on the intellectual side,
with Harvard, Columbia and Stanford professors frequently tapped by Cornerstone.
Stanford connection
Cornerstones connection with Stanford runs especially deep. The firm sponsors and
works closely with the Stanford Law School Securities Class Action Clearinghouse,
an institution dedicated to keeping track of federal class-action securities litigation.
The groups research was, not surprisingly, in heavy demand during the dark days of
the Enron and WorldCom debacles, and has proved useful in tracking the impact of
government legislation in this new age of heavy regulations. In January 2006, the
Cornerstone and Stanford annual report made financial headlines when it reported
that the amount of money paid to shareholders to settle securities litigation in 2005
had risen to an all-time high of $9.6 billion. The bulk of this came from the notorious
WorldCom settlement and Cornerstone did, in fact, come to the conclusion that fraud
is actually on the declinethe number of lawsuits in 2006 has decreased 17 percent
and investors in 2006 are now losing less money due to corporate delinquency. In a
January 2006 Businesswire article, Cornerstone VP John Gould stated, This trend
suggests that the securities litigation market is now even more focused on the validity
of financial results.
Cornerstone and Stanford also came up with this interesting factoid in their 2005
report: The median settlement of the average shareholders claim in securities class-
action suits between 1997 and 2004 was a measly 3.8 percent of claimed damages.
CNN and The Associated Press quoted the numbers and came to the immediate
conclusion that shareholders arent benefiting from filing suitthe lawyers are.
Playing hardball
Cornerstone consultants have spoken up in some big-time cases in their day. The
firm had a hand in the headlining WorldCom trial, which covered the mishandling of
some unlucky WorldCom employees retirement plans. During the trial, Cornerstone
was brought in to advise the Merrill Lynch defense teamand had to prove that
Merrill Lynch advised its clients properly and hadnt turned a blind eye to
WorldComs shady dealings. Cornerstone called in one of its expert witnesses, John
Peavy, and in February 2005 Merrill Lynch was found not liable. Cornerstone was
also involved in the Exxon-Mobil mega-merger of 1999, which also underwent heavy
antitrust scrutiny. Cornerstone was the support team for expert witness Janusz
Ordover, an intellectual heavyweight in the arena of economic theory.
Oddball auction
Experts in competition analysis, valuation and financial research, Cornerstone
consultants provide expertise in most aspects of corporate litigation. Their one
oddball offering is their services in auction design and competitive bidding strategies.
The firm is partnered with academic heavyweight Robert Wilson of Stanford
University, an expert in game-theory. Wilson was instrumental in the U.S.
governments auction of frequencies for personal communication services (used by
mobile telephones and handheld electronics). Cornerstone had a hand in the software
used to demonstrate the feasibility of such an auction, then served as an advisor to
Pacific Bell once the bidding started.
GETTING HIRED
A firm foundation
Consultants agree that Cornerstone is highly selective about whom it chooses to hire.
Potential Cornerstoners are encouraged to send their resumes to the office of their
choice. For undergraduate recruits, the firm usually looks to the usual Ivy League
suspects, but also to MIT, Stanford, Chicago, Northwestern, University of Michigan,
Berkeley, UCLA, USC, UVA, Duke and top liberal arts colleges such as Williams,
Amherst and the Claremont colleges. One insider suggests that the firm has select
top schools it hires at, but now that we are growing and hiring more people, we are
targeting more schools. Another source adds that the firms recruiting list now has
expanded to most top-tiered universities and liberal arts colleges. Promising
candidates from other colleges are interviewed by phone. For those who have hung
around academia long enough to accumulate letters beyond BA, a source explains
that MBAassociates are recruited through on-campus resume screening followed by
interviews in the office, while most PhD candidates are recruited at the annual ASSA
meetings, with a second and/or third round in the office.
Rounds and rounds you go
The interview process itself is quite extensive and can wander into the range of 10-
plus interviews per candidate hired, although some job seekers are ushered in with
a mere total of seven interviews. The first round generally takes place on campus,
with subsequent interviews in one of the firms offices. According to one source,
candidates meet staff at all levels and have the opportunity to discuss the types of
cases we work on during the interview process. Potential hires should brush up on
which fork to use, since final interviews may include a lunch with analysts so the
candidate can ask any questions that he or she may have about Cornerstone and relax
over a delicious meal. Bon apptit!
Casing the joint
Insiders reveal that the interview process relies heavily on case interviewsfor both
undergraduate and graduate hireswhich are intended to test general analytic
intuition and ability to articulate complex [economic] concepts. Candidates will be
happy to learn that there are no brain teasers or trick questions to worry about, but
case questions involve a 20- to 30-minute discussion of an actual case on which the
interviewer has worked. Questions relate to Cornerstones areas of expertise, and
examples include how to estimate damages from the alleged infringement of a
patent, or how one determines that firms in the industry are colluding, and how
one would determine damages from collusion. Be forewarned: It will not be your
typical consulting case question.
Once hired, analysts become part of a team, which may include professors and senior
consultants. Working closely with team members, analyst responsibilities include
financial modeling, industry and market research and presentation of findings.
OUR SURVEY SAYS
Family ties
Cornerstone consultants frequently cite their co-workers as one of the firms selling
points. The atmosphere at the firm is frequently described as academic/intellectual.
According to one employee, the firm consists of generally caring, nice humansas
opposed to all those other firms staffed with aloof wombats. A colleague echoes this
sentiment, stating, Cornerstones culture was a major factor in my decision to join the
firm. We have an extremely collegial and supportive culture. Employees from all levels
interact with each other, and the atmosphere is cooperative rather than competitive.
People truly seem to care about one another. Management considers maintaining the
unique culture to be a priority, setting aside time for every member of the firm to attend
workshops dedicated to discussing the preservation of our firm culture as the firm
grows. Associates also praise the flat management structure, mentioning their direct
access to top-level management and frequent interactions with attorneys and experts
as especially positive aspects of firm culture.
Friendly at the top
In such a chummy environment, employees have positive things to say about their
managers. One consultant explains that one of the perks of working for a smaller
company is that you have direct access to top-level management, and, as a colleague
explains, Cornerstone is a very nonhierarchical company. All employees get the
opportunity to directly interact with the partners. Many of our analysts have even
worked directly with our CEO and other managing directors. Most employees,
including analysts, also get regular opportunities to interact with clients and experts.
In addition, supervisors serve as role models for those on the lower end of the totem
pole, and adhere to an open-door policy with regard to dispensing advice.
According to one source, supervisors set by example a high bar for performance and
quality of work. [They are] very encouraging with a focus on mentoring while
working on case issues.
Levels of busy
While not working 30-hour days and nine-day weeks like some of their competitors,
Cornerstoners certainly arent lacking for things to do. Casework can be highly
cyclical. The typical weekday is 10 to 11 hours, with some additional weekends
required, says an employee. And several sources point out the variability of work
hours. Levels of busy vary a lot per person per month, a consultant observes.
Litigation consulting is unpredictable and we can get really busy when we are
working on cases that are going to, or are in, trial, an insider agrees. Still others call
attention to the fact that there seems to be an abundance of work recently, with not
enough consultants to go around, which also contributes to longer hours. An
associate notes that the firm needs to be a bit more aggressive about hiring.
Business is growing rapidly, and there are never enough people to staff all of the
cases, so most people are working more than is optimal. Others are a bit more vocal
in their criticism, as one co-worker demands that management hire more personnel
or turn away cases that we cannot man in order to keep hours down.
A fine balance
Recognizing how much time staffers put into their work, the firm is willing to
acknowledge that people may have obligations outside of the office. According to
one consultant, The firm is also very appreciative regarding personal sacrifices.
They are definitely recognized. Another source claims, It is bred into the culture
that we all have to make personal sacrifices sometimes, but that everyone should do
their best to minimize those sacrifices. It works pretty well. In addition, it helps
that the hours are more flexible in our industry than in other areas such as banking,
and analysts rarely travel for work. Consequently, analysts have the opportunity to
balance work with personal activities, explains a colleague.
Sources say that in response to these personal sacrifices, Cornerstone is willing to
create some opportunity for flexible work arrangements to ease the work burden on
its employees. One consultant observes, The firm tries to allocate resources to avoid
burdening the people as much as possible, while another exclaims, It is surprising
how well the work/life balance turns out. There have been many times when a team
leader or another team member has gone to extraordinary efforts to help me make
some personal event. In addition, some employees take advantage of part-time
schedules. Cornerstone gives its employees a tremendous amount of flexibility,
says an associate. Anumber of consultants at the firm work less than a 100 percent,
full-time schedule, observes another consultant. Not only moms with young
children but also dads with young children take advantage of this.
Mark your territory
That said, the firm can only do so much to ease the work/life balance when the nature
of the industry makes it hard to attain. One consultant maintains that having a life
outside of Cornerstone requires being proactive about boundaries, and being willing
to work harder in certain periods to ensure the flexibility to pursue things outside of
work. According to another associate, one factor that makes this somewhat easier
is that analysts are not required to have BlackBerries and, as a result, they can easily
separate their personal lives from work. In my three years at Cornerstone, I never
had to reschedule vacation plans, as long as I made sure that I gave prior notice to my
case team managers.
Home sweet office
One factor that improves Cornerstoners work/life balance is its minimal to
nonexistent travel requirements for consultants. An analyst helpfully explains, For
the most part, work is done in the office. There is very little travel required (and I
have never personally had to travel for work). There are times when you might get
to travel somewhere to prepare an expert for deposition or do research. However, the
work-related traveling that Ive done always relates to either training or social
events. Acolleague also observes the very low travel obligations. At senior levels,
one to two single-night trips per month are typical. And a New York-based associate
reports that all of my clients are in New York, so travel for me usually involves
walking a few blocks across town to a meeting.
A little perk me up
When Cornerstoners do hit the road, its arguably more for pleasure than business.
The firmwide retreat is certainly a huge perk and one that I havent heard of
anywhere else, says one employee. A manager adds, Everyone in the company,
even non-consulting staff, goes to a high-end resort in Palm Springs every third year
for a corporate off-site. This last year we had our own private fireworks display over
the desert. The coastal offices have their own events in fun and exotic locales
between the company-wide retreats.
Since Cornerstone employees spend most of their time in the office, they have time
to enjoy the perks on offer. And the firm certainly seems to have found the way to
its consultants heartsthrough their stomachs. Theres a lot of food at
Cornerstone, from lunches with mentors and advisors to monthly office meetings to
presentations and happy hours, says one analyst. Her co-workers corroborate the
fact that theres lots of food and rave about the limitless supply of great, free
snacks and drinks. In order to keep its employees svelte despite the snacks, the firm
offers reimbursement for gym expenses, one consultant observes. In addition,
there are dinners and cab rides home when working late, according to a colleague.
Precious stones
The general consensus among consultants at chez Cornerstone is that they receive
sterling salaries. My expected 2006 salary is extremely competitive, purrs a member
of the Los Angeles office. In addition to being generous, the firm doesnt play hardball
with employees over their paychecks. My sense is there is little room for negotiation,
the upside of which is that I dont feel like I have to play games in order to get my fair
compensation, observes one consultant. Insiders remark that the compensation
structure rewards collaboration, which may be another factor that adds to the overall
friendly vibe at the firm. One source says, Analysts really help each other out (since
we arent competing with each other for promotions), and associates and managers will
take the time to explain concepts and theories to analysts, which is a great way to learn.
In addition to their regular compensation, employees receive bonuses in recognition
of their efforts. A consultant says, Cornerstone also offers an extraordinary hours
bonus to compensate analysts who have had to work long hours for extended periods
of time due to extreme casework demands. One consultant in the higher ranks
boasts of an expected 2006 bonus of 50 percent of my salary. The bonus is adjusted
for excessive hours and outstanding work. Other benefits of working for the firm
include widely lauded medical insurance, a money purchase plan for analysts
staying three years or more and 401(k) matching.
A steady advance
Employees can look forward to fairly standardized promotions throughout their
tenure at the firm. A consultant states that there is a pretty regimented promotion
pace but people can lag behind or move more quickly depending on performance and
prior experience. Theres no up-or-out policy, either, as one associate puts it: The
analyst position is a job, not a programyou can stay around as long as you want.
The career path involves nominal promotions from analyst to senior analyst to
research associate, after entering the firm with a BA, but getting to the next step,
associate, is hard. Generally, folks with graduate degrees (MBAs, PhDs) are hired
for those roles. But it is possible to advance straight from the analyst level, although
this is not a quick process.
Edifice complex
As far as the facilities go, the offices are well appointed and comfortable, says one
employee. The office space is great. Analysts in D.C. typically share a real office with
one other analyst. Some have their own real offices, adds another. The real offices that
Cornerstone consultants boast of here stand in contrast to the cubicle arrangement typical
of most consulting firms, which they proudly shun. Our offices generally have very few
cubicles. Even analysts are usually in (shared) offices with windowsand tremendous
views in New York. Associates typically get their own windowed office. The favorable
office setups seem to be true of Cornerstone locations across the board. Analysts typically
get their own offices; no cubes! chortles a denizen of Menlo Park. Sources are also
pleased with the locations of the offices. ABoston analyst observes that the firms offices
are located optimally in the center of their cities. And in New York, the firms offices are
very conveniently located in Midtown right by the subway.
Laid-back learning
Although they rarely travel for client matters, consultants occasionally venture out of their
offices for company retreats and training sessions, which are as much fun as they are
work, one employee claims. Cornerstone gives its employees both formal and informal
opportunities for training. One Cornerstoner gives a bit more insight into the matter:
Theres a good mix of official training and training on the job. Analysts go through
numerous training sessions when they first start working, in addition to a one-week
module that brings them through a standard securities case. There are training sessions
every year (for first-years, they are held in Menlo Park; for experienced analysts, they are
held in New York City). There are also presentations given by professors who work with
Cornerstone as experts and, of course, a lot of learning is on the job. Finally, you can take
classes that relate to your casework (think finance, economics and statistics), go to SAS
boot camp to learn about programming and prepare for the CFAexaminations.
For the most part, though, employees agree that the firm weighs more heavily on the
side of informal trainingand they seem satisfied with this arrangement. Most
training is unofficial on the job. Although there is formal training, the informal
training and mentoring is much more successful, says an analyst. A colleague
concurs: While there are regularly scheduled training events, most training still
comes from colleagues. I think that this makes sense for a consulting environment.
And an insider adds that people are also very friendly and willing to help out in
general. You learn most things on the job and often through team members.
Leading ladies
Gender equality at the firm is a point of pride for many Cornerstone consultants.
Two of the three founders of the firm are women, several insiders volunteer.
Nearly half of the firms top management are women. [Gender] is definitely not an
impediment to career progress, adds another. An associate points out that the firm
allows consulting staff to work part time without jeopardizing ones career track, and
many female associates and managers with children take advantage of this. One
notable thing Cornerstone ladies lack, in the estimation of one employee, is
mentorship programs for women that provide them with an opportunity to network
with other female consultants.
Comfortable at Cornerstone
The firm has a welcoming attitude to its gay and lesbian employees, as well. A
member of the New York office says, Cornerstone has several openly gay
employees who appear to feel comfortable here. ASan Francisco source adds, We
have gay and out employees and they share their family life with co-workers in the
same way that any straight employees would.
But when it comes to minorities, a consultant feels that their numbers could be
better. The firm has many Asians, but other than the admin staff, does not have many
other minorities. The firm does have a large number of foreign nationals. The
source adds, Basically, although the firm does not discriminate on the basis of race,
it does not affirmatively seek out minority hires.
Community building
Community service initiatives take place regularly at the firm. We have a committee
that organizes charitable events, according to an insider. One Californian explains
further: CROP, Cornerstone Research Outreach Program, consists of a group of
consultants who develop opportunities for Cornerstone staff to give back to the
community. Says another consultant, We have an extremely active community
outreach program. We have roughly one fundraising event (jeans day for charity) and
one hands-on event (e.g., soup kitchen, Habitat for Humanity) each month. And a
resident of the Big Apple adds that in New York, projects have included reading to
school children, participating in Saturday clean-up days at city parks and consulting staff
participating in races for breast cancer, for example.
2000 Pennsylvania Avenue, NW
Suite 6000
Washington, DC 20006
Phone: (202) 777-5000
Fax: (202) 777-5100
www.executiveboard.com
LOCATIONS
Washington, DC (HQ)
Gurgaon
London
PRACTICE AREAS
Corporate Communications
Corporate Finance
Financial Services
Human Resources
Information Technology
Legal & Administration
Operations & Procurement
Sales & Marketing
Strategy, Research & Development
THE STATS
Ticker Symbol: EXBD (Nasdaq)
Chairman & CEO: James J. McGonigle
UPPERS
Raises and bonuses are merit-
based
Healthy work/life balance
DOWNERS
Thinly staffed
Some office politics
EMPLOYMENT CONTACT
Corporate Executive Board
Recruiting Department
Fax: (202) 777-5100
E-mail: jobs@executiveboard.com
V A U L T
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34
THE BUZZ
Interesting work, smart people
Every day is a day-long happy
hour
Transient staff
Bad work conditions
THE SCOOP
Merchants of knowledge
When CEOs want to know the secrets of a successful overseas launch or read up on
Sarbanes-Oxley compliance, Corporate Executive Board can help. Rather than
traditional strategy consulting, the firm offers research collected in the form of
confidential details from senior execs about operations and management. The firms
consultants look at practices of corporations, analyze information and draw
conclusions, then sell the case-based studies through research, on-site training and
reports. When striking out on an unfamiliar path, CEBs research provides a way for
clients to find out what has worked and what hasnt by learning from practices tried
and tested at other companies.
Dating back to 1979, the D.C.-based firm began as the Research Counsel of
Washington, which rebranded itself as the Advisory Board Company in 1983. The
financial services and corporate research practices then split off in 1997 to form what
is now Corporate Executive Board. From the original group of 400, CEB has
mushroomed to 1,400 employees now working in four offices in D.C., one in London
and one in India. The firm has woven a web of senior peer executives in charge of
functional areas of the organization. These execs serve as members of the network
and contribute to the firms knowledge base. CEBs roster of over 2,400 member
firms claims more than three-fourths of the Fortune 500 and over half of the worlds
top 300 financial companies as members. Companies such as Shell, Wal-Mart and
GT subscribe to the firms library of research on corporate strategy, operations and
general management.
Members only
How does membership work? Subscriptions are broken down by practice areas, then
divided into specialty groups, depending on the members role in the company.
There are 36 membership programs, each serving a particular business area, such as
the Council on Financial Competition, Information Risk Executive Council, Supply
Chain Board and Human Resources Leadership Roundtable. For an average annual
fee of $36,000, members buy a subscription that allows them to access reports
relevant to their business, request new research and attend a yearly meeting with their
peers at other companies.
Who needs consultants?
CEB has built a library of best practices research and offers executive education and
decision support tools so corporate management doesnt have to reinvent the wheel
when venturing onto new territory. I think we found a huge hole in the market
between what people could accomplish with their own staff and Rolodex and hiring
a consulting firm to come in and do a project for millions and millions of dollars,
said James J. McGonigle, former CEB CEO, in a 2004 Washington Post article. In
fact, the firm claims it can help companies shorten or avoid consulting
engagements. With a 92 percent client renewal rate and solid membership growth
in 2005, signs are that CEB is indeed meeting a specific need.
CEBs annual growth has impressed observers. Revenue in 2005 was up almost a
third from 2004, reaching $362.2 million. Profits have risen annually by 20 percent
every year except one, and analysts expect earnings to grow 27 percent for the next
few years. In 2005, several publications took note of the firms success: CEB was
named one of Forbes top 200 small companies and came in 11th on the magazines
list of Hot Shots/Entrepreneurial Companies. And BusinessWeek placed CEB at No.
40 on its list of Hot Growth Companies based on growth of earnings. Even with
favorable results this far, CEO Tom Monahan is still thinking in terms of expansion:
His goal is to hit $3 billion in extra revenue, according to an August 2005 MSN
Money article. To hit the target, the firm plans to reach out to new markets. In
February 2006, the firm launched an initiative targeting middle-market companies in
North America and Europe with annual revenue of $100 to $750 million. But even
with these expansion plans, CEB still plans to stay focused on what has worked for
thus farbest practices research.
Cashing in
Annually, CEB gives its higher-ups an opportunity to exercise their options. In
March 2006, eight officers and directors of the firm sold their stock for a record sale
of shares totaling $58 million. McGonigle had the biggest gain from the sale,
pocketing $36 million. The companys stock price has gained more than eight times
its original value since its IPO in 1999. CEB says its generous stock option grants
allow it to attract top talent to its leadership.
At the core
ServiceCorps is CEBs network of volunteer opportunities for teams, individuals and
the firm as a whole to benefit the community. In 2005, the staff contributed over
14,000 hours of activities such as tutoring, mentoring, preparing meals and hosting
birthday parties for homeless children. The company encourages a volunteer culture
with extra paid time off for staff who log significant hours serving a cause of their
choice. Firmwide, CEB hosts a blood drive every two months and organizes a
service Saturday twice each year.
GETTING HIRED
Busy on campus
Although sources say Corporate Executive Board is hiring more people from the
outside at higher levels than it did before, the bulk of new hires come through
campus recruiting. According to CEBs web site, it hired over 150 recent graduates
this past year through on-campus recruiting efforts. Every year, the firm recruits for
interns, undergraduates and graduate students. Recruiters visit over 25 campuses
throughout the U.S. and U.K., as well as a small group of top-tier advanced degree
programs. On the careers section of CEBs web site, candidates will find detailed
information about each level of hiring, as well as internship qualifications, recruiting
calendars and a list of currently available positions.
Do you have talent?
The interview process starts with a screening interview with HR, which is referred
to internally as Talent Management, sources report. If you get past the screen, you
interview with the two levels of management that youll be reporting into. Insiders
say the interviews [are] largely to determine if you fit the CEB culture. One
consultant recalls his own experience: The interviews were behavior-based, with
one or two case questions. Astaffer explains that CEBs case questions are not like
the BCG, McKinsey-type questions, but rather, a little simpler and more around how
you think, rather than based on specific business knowledge. Another source says
interview questions are very situational, such as What would you do in a situation
where ... ? Many candidates are also asked to complete a writing exercise before
the second round.
To candidates who make it successfully through the interview process, one insider
offers a tip: The quality of work at an entry level is no different from any other
consulting firm. However, there is definitely a lack of analytical work. Ask yourself
one basic question: Do I like locating data and then presenting it in a coherent,
structured manner? If your answer is positive, this is the job for you.
OUR SURVEY SAYS
Keeping things light
Overall, Most employees are generally pretty happy, a CEB staffer suggestsa
state of mind no doubt enhanced by a laid-back dress code. According to one source,
Youll rarely see suits or ties unless there are clients in-house. Jeans are more the
norm. And although hours can be incredibly long, a consultant explains that they
also can also be flexible. Its not a clock-watching culture; you stay until its done.
Acolleague agrees: Work hours are not as crazy as other consulting firms, adding,
Only on a rare occasion does one have to work on weekends; it is a healthy work/life
balance. Although some say politics within CEB can be petty and raw, most agree
that this young group of peers ensures a light-hearted environment.
Questionable model
But even these light and lively staffers have their gripes. Some insiders claim that
the companys economics model, which is based on scalable resources, causes it to
run incredibly leanly in terms of staff. As a result, says a consultant, Every
function and every department and every program is severely understaffed, resulting
in increased workload for those who are left. Every year, the goals are set higher, but
resources are not increased proportionately.
Another common complaint among employees is regarding CEBs promotion policy.
Until about a few months ago, the firms policy permitted anyone with at least nine
months experience in the firm to apply for open managerial positions, an insider
explains. A (wise) shift in policy has laid out a more structured career path: Now,
employees have to cross three levels to get to a managerial position. Sources call
this a wise decision, but grumble that it throws open the possibility of a ridiculous
situation whereby a lot of far more tenured and capable employees will be reporting
to relatively new, inexperienced youth. A co-worker concurs, noting that there are
managers aged between 21 and 26, and with (total) experiences ranging from nine
months to three years, [which] can get very frustrating.
Benefits improve with time
Insiders say bonuses, which can be up to 20 percent of your salary, are based on
performance evaluations. These evaluations also determine which staff are eligible for
merit-based compensation increases of up to 4 percent annually. There are no signing
bonuses or stock options at the lower levels, says one consultant, but there is an
employee stock purchase plan (after six months tenure, you can purchase stock at 85
percent of market price). For the first two years of employment, were told, employees
are granted 19 days of paid time off, to use either as sick days or vacation. After two
years, the allowance jumps to 24 days per year. Employees report that CEB does a lot
for its employees, including happy hours, bowling trips, some sponsored lunches and
potlucks. Other benefits include health [insurance], gym, vacation and 401(k)
matching (25 percent). One source adds, If you stay at the office until 8 p.m. or later,
the company will reimburse you for a meal and a taxi ride home.
90 Park Avenue, 18th Floor
New York, NY 10016
Phone: (212) 557-0500
www.fmcg.com
LOCATIONS
New York, NY (HQ)
Melbourne
PRACTICE AREAS
Corporate & Line of Business Strategy
Marketing Strategy & Solutions
Risk Management
Technology Strategy
THE STATS
President: James McCormick
2006 Employees: 72
2005 Employees: 70
UPPERS
Lots of exposure to clients and
senior managers
Small size of the firm means more
personal interactions and one-on-
one work with industry experts
Really fun projects
DOWNERS
The lack of internal
communication (official or
otherwise) to employees
sometimes makes it feel as though
theres no one at the helm
Working from our office rather
than the clients offices
Its very easy for junior staff to
fall through the cracks
EMPLOYMENT CONTACT
www.fmcg.com/careers/overview.htm
First Manhattan Consulting
Group
V A U L T
P R E S T I G E
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35
THE BUZZ
Great in financial services
Competitive as a small firm
Paid like a consultant, worked
like an I-banker
No culture; dissatisfied workers
THE SCOOP
Executive focus
First Manhattan Consulting Groups mission is to be the consulting firm of choice
for senior managers of financial services firms. Headquartered in New York, the
company was founded in 1980, and it hasnt deviated much from this original
statement since. Although its engagements are in such diverse locations as Australia,
Canada, South Africa and Mexico, its clients all share one quality: They are all
senior-level executives at major financial institutions. FMCG organizes its services
with that in mind, dividing its offerings amongst different job descriptions. For
example, CEOs can expect FMCG advice on corporate strategy, mergers and
organizational design, whereas CFOs can get help with risk management, advanced
profitability methodologies and cost structure. FMCG has made it standard practice
to use small project teams, rarely putting more than six consultants on an
engagement.
Lots of room for improvement
FMCG may make a fine living off of financial institutions, but it is not shy about
pointing out where the industry has deficiencies, e.g., in the area of client-customer
interactions, an area where several banks perform quite poorly.
FMCG secretly organized a two-year mystery shopping project, sending
customers on more than a 1,000 banking jaunts to experience this firsthand. The
results were startlingfrom the banks performance point-of-viewcausing FMCG
Manager and VP Gordon Goetzmann to claim that 50 percent of customer attrition in
the industry could be easily prevented with decent customer service. His
recommendation for these institutions was to install permanent staffers (as do Disney
and the Ritz Carlton), whose sole purpose is to keep their eyes open for potential
customer snafus. The firms results were published in the December 2005 issue of
Bank Technology News. Goetzmanns bottom-line conclusion was, When you look
at the interaction among call center, online and the bank, I would suggest the
experience is far from ideal. FMCG now offers specialized services to help banks
with this problem, and its findings have been referenced in many publications and
speeches.
Read the manual
Another bad sign according to FMCG: 65 percent of banking sales representatives
need to refer to their own companys brochure when customers inquire about existing
products. A February 2006 article in Gallup Management Journal quotes this
communication gap between product makers and front-line sales staff as one way
banks frequently ruin a product launch.
Its the little things that count
For those following the recent spat of bank mergers (like the March 2006 Capital One
purchase of North Fork), be advised that FMCG is conservative in the area of
mergers and acquisitions. FMCG has conducted significant research on market share
trends among banks; the firm claims that from 1997 to 2004, banks with a greater
scale of customers were no better at raking in profits than their smaller, more local
counterparts. FMCG stands behind this principle and, in a February 2005 US Banker
article, FMCG Founder and President Jim McCormick advised banks to hunker
down, do a good job store-by-store, and youll find thats more important than the
presumed advantages of a large share position.
The dreaded automated call center
FMCG also does significant work in improving banking call centers. Customers
often have a bad time with call centers: They get lost in the maze of automated
menus. They linger on hold, with no clue to how long they will wait. They are
bounced from agent to agent, waiting each time in the back of the queue. They are
asked to repeat information already provided. They get wrong or conflicting
answers. So said senior FMCG consultants Gordon Goetzmann and Theo
Moumtzidis in a March 2006 issue of American Banker. Coming from FMCG, this
is an obvious criticism, as it follows the firms main tenet that banks are too obsessed
with financial risk and number crunching, forcing customer service to get lost in the
shuffle.
Banking gurus, not grumps
All this criticism of the banking industry may lead you to believe that FMCG is a
dour placenot so. The firm simply wants to differentiate its clients from the
competition, and doing so means letting go of poorly conceived practices. As
McCormick says, You have to be willing to invest in your strategy while saying no
to the things that dont fit. And the FMCG style is not to simply criticize its clients
and then leave them to sort out their own solutions. Rather, the firm emphasizes a
collaborative approach and is fond of long-term engagements, with collaboration and
deep industry expertise forming the foundation of its approach. The firm has proof
that its method is working: FMCG has served several institutions more than 100
times and three-quarters of FMCG engagements are directly at the request of
preexisting clients.
The personality of finance
First Manhattan is also big on advanced segmentation. In other words, the firm
makes it a priority to understand banks customers in the most individual way
possiblebeyond simple demographics of region, gender and income. FMCGs
calls this proprietary approach Financial Personality
. Combining its own research

with customer surveys, FMCG claims to have an advanced jump on what customers
want, going so far to say that most clients receive two to three times their return on
marketing investment once applying the methodology.
Thats a big statement, especially since customer surveys are nothing newmarketers
in the finance world have been doing similar work for years. What sets FMCG slightly
apart from the pack is the way it takes action in response to this information, working
with e-mails, banner ads, call centers and other marketing channels. For example:
Youve only paid the minimum on your credit card bill three months in a row; FMCG
software picks up on this and makes sure that the next offer in the mail is for a service
to pay down credit card debt. Not only that, but the letter will be particularly worded
for the customer.
Help for higher-ups
Other than its marketing services (which really get down to the nitty gritty) most of
FMCGs work is high-level strategy. Most of FMCGs expertise is directed towards
big issues, such as capital allocation, benchmarks for potential return on investment,
and increasing the productivity of clients bank-wide. The firm has several thought
leaders, self-dubbed brain surgeons, to make some noise in these areas: In addition
to McCormick, Theo Moumtzidis, Gordon Goetzmann and David Tetenbaum are just
a few FMCG names that make frequent appearances at industry conferences and
publish in trade publications such as The Wall Street Journal, Fortune, Crains, The
Economist, American Banker, ABA Banking Journal and Money Magazine.
American Banker cites 260 FMCG quotes over the last five years.
White paper mania
If you want to read up on FMCG philosophies, an easy place to get started is its
publicly available thought leadership set of white papers, which you can order on
the firms web site. FMCG breaks these up based on job description, just as it does
with its services. Some new titles for CEOs include Keys to Winning in the Zero
Growth Deposit Market, Deposit Share Shifts, Who is Winning David or
Goliath, and Evolution and Opportunities in the Internet Payment Space.
Examples for CFOs are Has Liquiditys Time Come? and Winning the Credit
Cycle Game. In an April 2006 in-house survey of C-level and other senior
executives, FMCGs white papers were rated as significantly more insightful and
useful compared to writings of other consulting firms. Hundreds of senior executives
have asked to be put on FMCGs mailing list, including CEOs, CFOs and vice
chairmen.
FMCG consultants are also frequently invited to be keynote speakers at major
industry conferences, for example at the BAI CFO Roundtable in June 2005, the BAI
Retail Delivery Conference in November 2005 and the October 2005 American
Banker Financial Services Marketing Symposium.
GETTING HIRED
Step by step
The firms web site gives exhaustive information about the application process and
the various career paths available. For starters, the firm highlights Five steps to
position yourself for an interview with the firm, one of which encourages applicants
to think about what issues engage you intellectually. Experienced applicants or
those whose school isnt on the recruiting schedule can apply the old fashioned
wayvia e-mail. Highly qualified college juniors are also eligible to apply for the
firms 10-week summer internship program in the New York City office.
Insiders report that the firm recruits undergrads only (not MBAs) from the Ivy
League and other top schools: Harvard, Cornell, Penn, Georgetown, Princeton and
MIT are at the top of the list. As an analyst explains, We interview extremely bright
and motivated people. From those, we look to recruit the ones that have the interest
in financial services and the necessary additional skills to excel in the long term in
consulting and at FMCG. After the first round of interviews on campus, candidates
attend Super Saturday with four to six rounds of interviews with analysts,
consultants and partners, and face a combination of fit and case questions, sources
tell us.
OUR SURVEY SAYS
Work-centered
At FMCG, you will find colleagues to be cooperative, academic, hardworking and
intellectual people with diverse backgrounds, but dont expect to hang out with
them after workthere are few happy hours or social events at this firm. One source
laments the fact that culture is severely lacking. Another insider expresses the
same disappointment: Most of firms culture centers around work; not a lot of
socializing goes on. The firm, however, notes that, starting in April 2006, it
introduced Friday consulting lunches for the consulting staff to get to know one
another.
Parties aside, an analyst comments that people are not friendly and there is very little
cohesion/socializing that takes place either in or outside of the office. Employees
that are outgoing or have personalities end up leaving (due to stifling culture). This
same consultant also argues that the lack of socializing is very damaging to the
professional environment: Culture is very closed door and professionals are not
informed of happenings at the firm (i.e., hardly any internal communication).
Dive right in
Since theres no socializing to distract them, FMCG employees find themselves
immersed in an academic and hardworking environment. One consultant notes the
strong work ethic that pervades the offices. As such, insiders appreciate being
given interesting projects from the very start. Sources comment that even junior-
level consultants are entrusted with a tremendous amount of responsibility right off
the bat. One consultant comments, Our organizational structure really makes us
unique, especially for incoming analysts. We dont hire MBAgraduates, so analysts
are in a very unique position with a great amount of responsibility.
Blended well
Employees give high marks to the firms training opportunities, which they say are a
good mix of formal instruction, mentoring and on-the-job learning. An insider
reports, First-years have a week of formal training at the start, with formal sessions
about once a week for the first few weeks, but adds that the majority of most
helpful training comes from on-the-job training.
Colleagues at FMCG report that exposure to management is the best part of the
ongoing training at the firm. Top-level management takes strong interest in aiding
the personal development of analysts, notes one. As for outside training, that
doesnt happen until a higher level, says a source. A colleague states that [there
is] tons of exposure to top-level partners. They often work right alongside
consultants and everyone down to first-year analysts.
Skys the limit
Sources also enjoy the firms outlook on promotion, which is generally awarded only
when consultants are ready. We dont have a set two- or three-year program so there
is no glass ceiling for analysts or others to continue upward progression. Promotions,
compensation, etc., are all merit-based, so the sky is the limit here if you want it to
be, claims one analyst. A colleague announces that he is very proud of the merit-
based system in place, and explains how it functions: Do good work and you will
see more responsibility, client interaction, etc., and be promoted. Another insider
confirms that there is no strict up-or-out, though he claims that it becomes so by
default. After the senior analyst level, consultants can advance as quickly as possible
and it becomes a true meritocracy.
Putting in time
Employees at FMCG are a busy lot, working 70 to 80 hours a week on average. But
there is no average project length, and the fickle workflow can be frustrating. A
consultant gripes, This can be unsatisfying at times because you end up waiting for
certain partners just to call or end up with a lot of work being dumped at the end of
the day (after being idle), rather than a planned out, consistent work stream.
Colleagues say weekend work is occasional but not all the time.
Only for good reason
Though the hours are long, insiders report that when their work is done, there is no
need to hang around. According to one junior-level analyst, There is no face time.
Partners are extremely understanding of the large amounts of time spent at work, and
when there is nothing pressing to do, there is absolutely no pressure to stay at work.
It is just not a part of the firm culture whatsoever.
Thankfully for these folks, travel also isnt a given at FMCG. Depending on the
engagement, it ranges from none to extensive. One consultant states that travel is
extremely manageable, while another explains that some employees travel
extensively, while others have not traveled for several years. The redeeming factor
to travel at FMCG, says a colleague, is that no one at the firm travels just to travel
like some other consulting firms; if there is not a good reason to be on-site at the
client, then we will typically work from New York City.
What life?
Work/life balance is not a high point at FMCG, according to sources. Life? What
life? questions an associate. Work/life balance is very poor. Very little regard, if
any, is given to holidays or weekends. I worked on Christmas this year, vents one
insider, continuing, The combination of poor culture and long hours can oftentimes
make life very unenjoyable. Another consultant suggests that there is a trade-off
between getting in on exciting but demanding projects and having free time: The
amount of personal responsibility is great and the learning curve is unlimited. The
bad side is the time commitment it requires.
Second-rate salary
When it comes to salary, sources are only somewhat satisfied. One employee
complains that compensation does not adequately reward staffers for good work. As
part of its ongoing self review and the competitive consulting environment, the firm
notes that in early 2006, its salary/bonus structure was benchmarked against other top
consulting firms. As a result, the firm adjusted its compensation program effective
April 2006, with new salary and bonus ranges. The new bonus program was
implemented retroactively for the 2005 bonus year payouts.
Cube-less
Aside from an excellent 401(k) benefit, the firm offers a profit-sharing plan which
allows employees to be fully vested after five years. Associates also appreciate that
the office space isnt terrible. And, of interest to those who shudder at the thought
of working in a cubicle, the firm puts analysts in an officetwo to each, remarks
an insider. A colleague suggests the surroundings could be improved if the firm
would replace solid office doors with windowed ones. FMCG consultants dont
see much in the way of additional perks, though. One source addresses FMCG
management on this subject, saying, Show employees you carecould be small
perks for employees (e.g., health club memberships) or other ways to show that
employees matter.
Not very diverse
At FMCG, diversity isnt a huge priority. One source divulges, We just hired a
number of women into the lower levels of the firm, however, there is still no female
partner at the firm. This is disconcerting. The firm is working on bringing in more
women, reports an associate who claims that there have been large improvements in
recent years; the newest analyst class is almost entirely female. Diversity with
respect to minorities and gays, lesbians and bisexuals also gets mediocre marks from
FMCG staffers.
The firm however, attests to its diverse population, citing a recent review of the
languages spoken by members of the firm. These include Spanish, Hindi, French,
Turkish, Greek, Gaelic, Ukrainian, Italian, Vietnamese, Korean, Mandarin, Russian
and Thai.
Service shortage
FMCG doesnt place community service high on its list of priorities. In fact, a source
notes, there is only one half-hearted attempt to participate in the JPMorganChase
corporate challenge race; no pro bono consulting or tutoring or charities or
community involvement. Another analyst concurs, and praises the efforts of one
employee to rally the troops: During Christmas-time, there is a toy drive put on by
one of the executive assistants.
We dont hire MBA
graduates, so analysts are
in a very unique position
with a great amount of
responsibility.
FMCG staffer
1355 Peachtree Street, NE
Suite 900
Atlanta, GA 30309
Phone: (404) 892-0321
Fax: (404) 898-9590
www.kurtsalmon.com
LOCATIONS
Atlanta, GA (HQ)
PRACTICE AREAS
Consumer Products Division
Corporate Finance-KSA Capital
Advisors
Growth & Profitability
IT Strategy
Supply Chain
Health Care Division
Facilities Services
Information Technology Services
Strategy Services
THE STATS
CEO: William B. Pace
2006 Employees: 600
2005 Employees: 600
UPPERS
Small company feel
Culture! Culture! Culture!
Retail focus means never getting
stuck on a telecom project!
Ability to create your own
opportunities for advancement
DOWNERS
Compensation/bonuses are
subpar
Vacation policy is weak
High travel should command a
more premium salary
The firm is slow to
recognize/promote talent, so we
are losing good people to other
firms
EMPLOYMENT CONTACT
Americas
ksarecruiting.kurtsalmon.com/Prospe
ct.aspx
Asia-Pacific
E-mail: RecrAPAC@kurtsalmon.com
Europe
E-mail: RecrEU@kurtsalmon.com
V A U L T
P R E S T I G E
R A N K I N G
36
THE BUZZ
Retail gurus
Niche
Fluffy, not well grounded
Value chain? Seems vague
THE SCOOP
From stockings to strategy
In 1935, German immigrant Kurt Salmon started his namesake consulting firm from
the basement of his Tennessee home five years after coming to the U.S. A former
stocking factory worker trained as a textile engineer, Salmon hoped to boost his
income serving as a consultant to the apparel industry. From its outset, Kurt Salmon
Associates served retail and apparel clients and focused on implementation rather
than pure strategy for its clients. Having celebrated its 70th anniversary in 2005, the
firm has seen plenty of change over the years. To the original retail and consumer
products practice, the firm added a health care consulting division 15 years later. The
Atlanta-based firm now has 600 employees and 25 offices around the world.
Raising the bar on retail
The consumer products and retail practice specializes in global supply chain
management and technology solutions and has joined with several like companies
over the years. KSA teamed up with Cleversys, a Paris-based IT consulting firm,
MM Consultancy Group, a U.K. supply chain and logistics firm, and Swander Pace
& Company, a food and beverage consulting firm in the U.S. The firm also bought
KSA Technopak, a consumer products consulting company in India, in 1992, to
expand its knowledge of the Indian retail and products industries. In addition, the
firm has formed alliances with IT companies such as SAS, PeopleSoft and Consumer
Insights to expand its retail technology service capabilities. These strategic ties have
strengthened the firms position in the packaging and retail products markets.
KSAs retail practice helps clients identify and implement the right software and find
solutions for moving merchandise through the pipeline. Consumer products
consultants may determine a strategic marketplace position for a product or help a
retailer tighten its margins by streamlining logistics. Recently, the firm helped a
womens and childrens clothing retailer and cataloger expand opportunities. The
client wanted to break into the menswear market but didnt know if it had enough
brand equity for a different customer base. From choosing fabric to colors and sizes,
KSAs job was to help the client develop a mens product line to cater to new
customers. Consultants came up with a fitting brand strategy that would build on the
companys established reputation. The firm also detailed a catalog launch, targeted
retail stores and came up with a multichannel financial plan to make the venture
viable. Finally, building on 15 years of private equity consulting in the areas of
strategic due diligence, transition planning and operating performance improvement,
KSA formed a dedicated practice in 2004. Since that time, the practice has worked
on deals totaling $13 billion and participated in approximately 70 percent of all U.S.
retail deals.
Tagged
Making its mark in apparel technology, KSAhas been involved in helping companies
use new RFID (radio frequency identification) tools to boost their competitive
advantage. In December 2005, the firm, along with the Voluntary Interindustry
Commerce Standards Committee (VICS) and the American Apparel & Footwear
Association (AAFA) released a report on RFID and apparel. The report, a result of
a four-month study, demonstrated how adding radio frequency tags to individual
items can provide value to sellers. The study found that the tags proved most
valuable in a retail store setting, where footwear and apparel were individually
tagged. These tags have proven to be a worthwhile investment, as retailers who
implemented the technology benefited from improved inventory management,
operations and loss prevention.
Healthy growth
If a hospital wants to evaluate the cost of going paperless or pinpoint critical gaps in
patient care, KSAs health care practice can assist. With 50 years of experience, the
division has become one of the largest resources to U.S. health care providers. The
group has grown and established itself through mergers with Hamilton Associates in
1986, Healthcare Management Counselors (HMC) in 1997, Space Diagnostics in
2000 and, most recently, with Philadelphia-based firm The Katz Consulting Group in
2006. The firm helps clients plan facilities and develop strategy and IT solutions for
multiple hospital systems, community and childrens hospitals, academic medical
centers and physician group practices. Principal consultants have worked with all of
the top 20 hospitals on U.S. News and World Reports Americas Best Hospitals list
for 2006.
Worldwide expansion
Since 2005, Kurt Salmon Associates has been showing some leanings toward
overseas expansion. In October, KSApartnered with Soft Solutions, a French leader
in merchandise and marketing solutions, to provide business process engineering and
best-practice consulting for clients implementing Soft Solutions ibs Suite in France,
Germany and the U.K. Soft Solutions and KSAplan to eventually expand into other
major retail markets in North America. After gaining expertise in the Chinese retail
market, in September 2005 the firm opened an office in Shanghai to support local
retail and consumer clients. KSA also opened an Amsterdam office in May 2005 to
better serve its Benelux clients.
Leading the pack
Also over the last year, Kurt Salmon Associates has been changing the face of its
upper ranks In December, Kathryn Cullen, an IT strategy and retail veteran, and
David Hetzel, the firms chief administrative officer were appointed as VPs. In
January 2005, the consumer insights and marketing srvices areas came under new
leadership when Wendy D. Farina joined the firm as principal of its North American
growth and profitability practice. And in December 2004, Betrand Jauffret, head of
the European global technology practice, and Scot Latimer, the national director of
facility services, also earned VP titles.
The mind of a shopper
Want to know what percentage of customers will go into a retail store to buy versus
just ogle the merchandise? KSA publishes a wealth of reports that analyze buyer
behavior and shopping trends. For example, the firm publishes Soft Goods Outlook,
a report that focuses on the current and future status of the soft goods industry
(anything you wear or carry). The firm also conducts surveys of shoppers to project
how much money buyers will spend online in a given year. The firms December
2005 report, Seven Shopper Strategies, told retailers what consumers were going to
buy and how they would shop during the holiday season.
The firm also distributes its findings in a variety of other publications. KSA
Connection features case studies of the firms work in all three of its service areas.
These case studies highlight how the firm was involved in helping clients implement
solutions. KSA Outlook is the firms newsletter designed for health care leaders,
which address hot issues in the industry, such as the consumer-driven health care
trend and government-issued electronic health record (EHR) software.
Soft skills
KSAalso showcased its soft goods industry expertise through a web cast for apparel
companies in September 2005. The firms consultants collaborated with MatrixOne,
a software provider, to discuss industry trends and best practices. Featured was a new
automated web-based system intended to help companies go from the design of a
new product to packaging to manufacturing, all in one integrated approach.
GETTING HIRED
Target list
Kurt Salmon has a yearly recruiting calendar, directing its efforts to specific
campuses where it sends representatives from each practice area. For example, the
supply chain practice recruits undergrads from Cornell, Virginia Tech, Berkeley and
Georgia Tech, while the growth and profitability practice looks for undergrads and
MBAs at Columbia, NYU, Duke and Emory. The expanded list of each practices
targeted campus is available on KSAs web site. Most recruiting takes place in the
fall, but the firm also maintains recruiting efforts in the spring.
Getting to know you
Sources label KSAs interview process as demanding and thorough. Altogether, a
candidate faces about eight interviews, the first few taking place on campus or at a
job fair. One manager explains the process: Round one is a resume screen and fit
interview. Round two is focused on team and leadership experiences. Round three
is an office visit with four to five interviews. The firm notes that depending on
which group youre interviewing for, you may receive a case interview as well.
There is a wide variety of questions aimed at finding out as much as possible about
a candidate, according to a manager who states that there are three roundstwo
interviews in each of the first two rounds (one behavioral and one case) and six
interviews on the final round including three cases, a principal interview, a behavioral
and a lunch. The candidate gets to know lots of people and many members of the
firm get to know the candidate, so decisions are not skewed.
The firm also makes use of standardized tests, including the Wonderlic testa
standardized, timed exam that assesses aptitude for learning a job and problem-
solving ability. The test is taken quite seriously at the firm. Reports a source, If you
dont pass the test, you dont move on. And another insider notes that KSAis quite
stringent in selecting the best candidates. But the rigorous process has apparently
served the firm well. As one senior consultant comments, It is an intense process,
but one that has worked for KSAfor over 60 years. It enables us to hire the best and
brightest.
OUR SURVEY SAYS
Amicable atmosphere
Insiders praise the close, friendly culture among associates at the firm. On the whole,
sources report its a place of openness and camaraderie. Everyone is very easygoing
and great to work with. Even as a first-year consultant, everyone treats me as part of the
KSA family. [There are] little or no barriers between principals, senior managers and
entry-level staff, explains a newcomer. On the other end of the totem pole, one senior
staffer rages, It is the most unique and special working culture Ive ever seen. People
are close, principals are accessible and really bond with consultants. Another
consultant emphasizes that he appreciates the lack of competitiveness within ranks. Its
a team atmosphere. Not cutthroat like other consulting firms. The people I work with
are some of the most intelligent that Ive ever met.
Aside from these gushing remarks, a few insiders are more cynical about the idea of
a cohesive firmwide culture and argue that this is changing with the new generation
of consultants. Says one associate, Old timers place more emphasis on the
difference in culture versus peers than newer recruits. These newer recruits see it
more as similar stuff, different place. Another source expresses the same
sentiment: Old timers will wax on about the firms great culture, but I sense that
things have changed. KSA hires great people, but there is not a strong, cohesive
culture binding us together as a group.
Open door
The high level of comfort among peers also applies to relationships with supervisors.
My supervisors are extremely accessible and make an unparalleled effort to get to
know and bond with consultants. I feel I can talk to my supervisors about anything,
boasts an analyst. Another source agrees, saying, KSAdefinitely has an open-door
type policy. I feel any question I ask of my supervisors or the companys leadership
will be taken seriously. One Atlanta-based employee also appreciates the fact that
most of the leaders I work with give me a lot of responsibility and opportunity to
grow.
Not overworked
KSA consultants work an average of 50 to 60 hours a week, which most sources
consider to be generally reasonable. That said, the hours vary according to project,
and some are more brutal than others, depending on the clients expectations,
reports an informant. A midlevel analyst observes, People are very understanding
and willing to accommodate your schedule. However, you still often have to work
late during the week and sometimes on weekends. Even if hours run longer than
normal, though the emphasis is on results, not putting in face time.
Steady balance
Overall, work/life balance is promoted by the firm, and consultants acknowledge its
efforts. The culture is very accommodating of peoples personal lives in as much as
that is possible in consulting, says a source. Acolleague agrees: Its a priority. The
firm encourages work/life balance and principals monitor consultants to make sure
they are doing OK in this arena. Another manager gives credit to the firms efforts
to balance consultants personal life: Compared to other consulting firms, KSA
work/life balance is probably bettermore flexible, etc. However, in consulting,
work/life is always a challenge. But, even with a strong emphasis on balance,
consultants schedules are always subject to the whim of the client. An insider states,
Partners are fast to add, Client interests first! to any sentence that also addresses
work/life balance.
Fair flexibility
A few associates comment that achieving a flexible schedule depends on the
engagement manager as well as your own ability to set boundaries. It depends on
the project and the management team. It also depends on if you take control of your
own balance, an insider tells. One consultant explains the how hes able to arrange
his schedule to suit his needs: KSAprovides a very flexible work/life balance where
they concentrate on: 1) having a happy client, and 2) getting the work done. I use
this flexibility to work half-day Fridays and add the extra time on the weekend.
The lighter side of travel
Several associates agree travel requirements are more favorable at KSA than other
consultancies. Travel is less than other consulting firms. This, in conjunction with
a results-oriented, team-based culture, enables a healthy lifestyle for a consultant,
affirms an analyst. And to one manager, its worth taking a lower salary for the
reduced amount of travel she now has: I came from a place that did three nights per
week standard. I took a cut in compensation for a better lifestyle. [Its] tough to
quantify the joy of being home more, especially with a young baby.
Still, though, travel at KSA is inevitable. While some sources lament the fact that
travel makes for long days after working 10 hours on a client site, others suggest
that the firm does its best to ease the load. Asenior consultant reports, I travel very
often, but the firm is good about balancing my scheduleif I have heavy travel for
a couple of weeks, they will try to schedule me a light travel week here or there.
Also, the firm makes every effort to ensure that a consultant who has just finished a
heavy travel project will next be staffed on a light travel project, etc.
Weak training
Formal training isnt the firms strongest point and, beyond junior levels, most
learning takes place through on-the-job training. And one insider claims that it
takes personal initiative to get informal training from upper-level colleagues. He
states, KSAoffers reasonable formal training opportunities. You have to push hard
to get informal mentoringmany people are just too busy on projects to go this
extra step. Another source suggests that KSA consultants definitely need more
training, especially analytical.
Self-paced promotion
Advancement opportunities at Kurt Salmon garner high marks from employees. An
associate explains that you advance at your own pace[they] dont force you out at
all. They actually expect you to stay at KSA. Entering the firm after B-school,
consultants say it generally takes three to five years for an MBAcandidate to move
from senior consultant to manager. From there, sources relay, it takes two to four
years to be promoted to senior manager, and partnership comes another two to four
years more. This schedule isnt set in stone, though. People are promoted when
they acquire the skill set necessary for advancement, notes an insider, while another
concurs, saying, Consultants advance as quickly as their performance allows. And
as performance capability is the name of the game at KSA, sources agree that the
promotion track isnt strictly up-or-out, as long as performance is up to par. It is not
up-or-out. If someone is ultimately unable to acquire the necessary skills, however,
they will be let go, states one consultant.
Log jams
While sources appreciate the promotion mechanism in place at KSA, there is some
frustration when it comes to the pace of advancement. In the past few years, sources
have noted that the speed of promotion has slowed somewhat due to the growth of
the firm. One manager states, Its not strictly up-or-out, although there are log jams
in the manager and senior manager ranks. As a result, advancement rates have
slowed, as have roles. Another consultant notes that compared to other firms,
promotion at KSA takes longer, stating, Advancement in responsibility is very fast,
but in title is not as fast as competitors. Acolleague forewarns prospective KSAers:
We do not promote quickly, and promotion paperwork process is more tedious than
college applications.
Its a trade-off
A number of insiders report that compensation at KSA is lower than some of its
competitors, but that reduced salary may be a function of the firms favorable
work/life balance, which they appreciate. I believe we are slightly below the
industry average, but I believe it is in part due to the fact that have lots of work/life
balance. We dont make as much as consultants at some bigger firms, but I dont
think we put in the kinds of hours that they do either, explains an insider. Another
colleague agrees that its relatively fair considering the amount of time worked.
Sources say that bonus is based on profit sharing and is usually around 10 percent,
depending on the employees rank. The firm also has a buy-in benefit. A manager
explains the breakdown: There are ownership options at manager level that mature
in five years after being a manager for two years. Partners are required to buy a
certain number of shares within the first five years of making partner. But the stock
options dont mean much to one consultant, who says, Stock options in KSAstock
(private firm) are not much the motivator they were intended to beessentially
worthless.
Weekends are yours
Though insiders say the firm doesnt offer any fancy perks and the medical benefits
are not spectacular, KSAdoes have a liberal travel policy, allowing freedom on the
weekends. If I am on a travel project, I have the ability to travel wherever I want
on the weekends, or stay at my project site and fly out a visitor, reports one source.
Another benefit mentioned is a pensiona rare thing these days. Some associates
also enjoy discounts from clients. But one satisfied source comments that it
doesnt take all the extras to keep him happy, boasting that culture is the greatest
perk in KSA.
Last on the list
Comments on office space vary by location. ANew York source says the space is a
tight fit if many people come in, but since I dont spend too much time there it isnt
an issue. Also, since most of the people are off-site, it isnt too much of a problem.
And one colleague comments [Its an] expensive space but not necessarily nice.
[Id] rather be in cheaper loft setting. One insider moans about the state of things
in his office, The Atlanta office has not been redone since the early 1980s. There is
nothing inspiring about it, and all windows are blocked behind partners office doors.
New York and San Francisco offices are much nicer office spaces. And another
Atlanta colleague agrees the office is last on the list of expenditures. The Princeton
office seems to have the best setup, according to one source: Each person gets
[his/her] own office. No cubicles and no sharing.
Mixed on diversity
Insiders give mediocre reviews when it comes to diversity at Kurt Salmon. Sources
report that the firm isnt doing all it can be to retain women, though it is very
receptive to hiring and promoting women. One associate says there are a lot of
women at junior levels (50 percent), but [this number] thins on the way up, and
another seconds that the firm is great at hiring and promoting women at lower
levels, but has deplorable lack of women at partner level. Despite the flexibility
offered for balancing work and personal life, women havent necessarily chosen to
remain for the duration of their career. They try to be flexible to accommodate
womens schedules but none of the partners in my office are women, says a San
Francisco consultant. But one manager explains that he thinks the lack of women at
top levels is an industry-wide problem, rather than one specific to KSA: It is harder
to hold onto women long term in the consulting industry, in general, due to the
lifestyle. That would be the only reason that the number of women is not equal to
the number of men.
Sources give similar criticism regarding other types of diversity, and suggest that the
firm boost its efforts in that area. The firm would benefit from greater diversity,
especially at the partner level. Amanager comments, [There are] very few women,
minorities, gays/lesbians/bisexuals. It needs to do both a better job attracting them
and retaining them. And although the firm could improve its diversity hiring and
retention efforts, an insider explains that when it comes to promotion, the
opportunities exist for all: People are given opportunities to advance regardless of
color and sexual preference.
Spotty service
Reports reveal that KSA isnt big on community service. Several insiders comment
that service initiatives are carried out by people within the firm, though not
officially supported by the firm itself. In the New York office, a source concurs that
its up to the individual to independently pursue those activities. It seems that this
inactivity is not the case in all offices, however. The Atlanta office is quite involved
in the United Way, March of Dimes and Junior Achievement. For a number of
years, KSAhas supported the Junior Achievement program at Inman Middle School
in Virginia-Highlands. KSAers have taught over 1,000 seventh graders about
personal economics and the international marketplace, an associate proudly states.
Travel is less than other
consulting firms. This, in
conjunction with a results
oriented, team-based
culture, enables a healthy
lifestyle for a consultant.
KSA analyst
780 Third Avenue, 6th Floor
New York, NY 10017
Phone: (212) 261-0600
Fax: (212) 581-6420
www.sternstewart.com
LOCATIONS
New York, NY (HQ)
12 offices around the globe
PRACTICE AREAS
Corporate Financial Policy
EVA-Based Solutions
THE STATS
Managing Partner: Joel M. Stern
UPPERS
Wide exposure in the finance world
DOWNERS
One methodology, over and over
again
EMPLOYMENT CONTACT
E-mail: careers@sternstewart.com
Stern Stewart & Co.
V A U L T
P R E S T I G E
R A N K I N G
37
THE BUZZ
Niche focus
Good at analytics but tough to
engage in strategy discussions
One-trick pony
Past its prime
THE SCOOP
Corporate finance-r-us
Stern Stewart is a corporate finance advisory firmand a prominent one in the
business worldwith the sole goal of increasing shareholder value and driving up a
companys stock price. Based in New York, the firm has 12 worldwide offices and
is growing internationally. An estimable client list includes such names as Bausch &
Lomb, Best Buy, Coca-Cola, JC Penny, Sprint, Toys R Us and the U.S. Postal
Service.
Stern Stewart advises clients on mergers and acquisitions; valuations, financial
strategy, restructuring, raising capital; incentive plans and litigation support. But by
far the most key offering Stewart hasand the lens through which it sees all the
aforementioned servicesis its proprietary management concept and measurement
tool, EVA.
Ubiquitous EVA
EVA stands for economic value added. In short, its a method that revamps the
traditional means of assessing a companys value to look at things from a
shareholders perspective. The true value of stock ownership in a company should
be measured by comparing it to other investments the shareholder could make, which
means that (according to Stern Stewart) for a company to be worthy of investment, it
must not only make money, it must make more money than other potential
investments.
This concept sent many consulting firms shaking their headsEVA does not
outwardly seem like a way of helping companies succeed. But stockholders were
smitten by the new theory, as it let them hold their corporate governance boards to
new standards of fiscal responsibility. These days, more than 300 companies use
EVAto evaluate their financial well-being. The tool is used to evaluate mergers, and
especially to analyze the best use of available capital. Stern Stewart also crafts
management programs that utilize EVA milestones as incentive-based compensation
for executives.
EVA to the rescue
A typical Stern Stewart engagement is fairly straightforward. EVA is introduced to
the board, senior management is given EVA training, a financial reporting system is
Stern Stewart & Co.
set up and then EVA-based incentives are created. Then reinforcement and check-
ups are periodically conducted to make sure the client begins aligning its strategy
towards the goal of positive EVA growth. Stern Stewart has developed numerous
software-based tools to make this process easier: FINANCEER is the firms desktop
monitoring system; EVA Training Tutor is its online instructional course; and
EVAntage is an extension to Standard & Poors research used by financial
companies who want to investigate the EVA performance of publicly traded
companies.
EVA in the news
Today, EVAhas become ubiquitous as a measure of a companys value. It is not only
used by Stern Stewart during engagements, but staffers are tapped frequently by
sources such as Fortune, Money, Business Wire and The New York Times to explain
industry successes and business heartbreaks using the EVAmethodology.
Critical opinion
Being popular isnt always all its cracked up to bewith such great exposure within
the industry EVA was bound to find some detractors. Business guru Gary Hamel
came out against the formula as early as 1997, claiming that innovation and new
markets were potentialities EVA penalized. As he said back then, No one measure
can capture all the dynamics of corporate performance. Today, this line of criticism
continues. A January 2006 Business Line article lamented the amount of interest
lavished upon EVA. The article claims that mergers and stock buybacks are ignored
by Stern Stewarts methodology, and the article also delves into mathematics, making
the case that the formula erroneously uses capital invested as one of its terms,
rather than market assets. The author also finds puzzling the use of annual
numbers. A project or, for that matter, even a company being EVA-negative in the
early years is hardly indicative of the overall value.
Perhaps the abovementioned criticisms are why high-tech and other startup
companies have been leery of adopting EVAlarge investments in knowledge
capital add up to big minus signs in the accounting books and, consequently, a low
EVA. Emerging markets have also been more cautious about adopting EVA. India,
in particular, is treading carefully; a December 2005 India Infoline article, entitled
Economic Value Addeda Myth? is generally favorable toward the formulas
adoption, but makes several warnings, stating that EVA should never be used by
itself for any decision. And in 2002, the Indian policy magazine General
Stern Stewart & Co.
Management Review worried that too much reliance of EVAmay be anti-growth and
anti-risk.
Proprietary control
Despite the nay-sayers, EVAadoption has remained strong, and today the formula is
everywhere. If there were any major hangups along the way, they had to do with
EVA being too popularcompanies quickly treated it as public property and not a
proprietary methodology. This came to a head in 1995, when accountants KPMG
(Stern Stewarts auditors at the time) began peddling a theory remarkably similar to
Stern Stewarts own. Stern Stewart claimed that intellectual property was stolen and
the case eventually wound up in court. In 1997, the dispute was settled, and these
days, Stern Stewart successfully walks the fine line between preaching about and
publicizing EVA, while at the same time maintaining firm control over its proprietary
methodology.
EVA overseas
The adoption of EVA overseas in established economies is growing. In Italy, Pirelli
Tires recently became a Stern Stewart client. Down under, the National Australia
Bank and Telstra began using EVA, and in South Africa, Super Group and Viamax
were early adopters.
Other consulting firms are also working with Stern to grow the methodology. In
April 2006, GreenBiz reported that Trucost, a London-based firm, had developed a
spinoff of the formula, called TRUEVA, that factors environmental costs into the
equation. TRUEVA takes into account the harmful waste and emissions of a
company, its environmental costs and litigation damages, before providing its final
evaluation.
More tricks up its sleeve
In addition to EVA, Stern Stewart has developed a number of other measurement
tools. For example, the consultancys Market Value Added (MVA) application
measures the difference between a companys market value and the total capital
investedloans, retained earnings, paid-in capital. More simply stated, MVA is the
difference between cash in, what investors have put in, and cash out, what they
could get by selling at current prices. If a companys MVA is positive, the business
has created wealth and vice versa. On an annual basis, Stern Stewart publishes two
databases that rank the top 1,000 U.S. companies and the top 3,000 U.S. stocks in
Stern Stewart & Co.
terms of MVA. The report gets coverage in publications such as Fortune, The Sunday
Times, Capital and The Financial Post.
As of September 2004, Stern Stewart also offers a stock rating system called PRVit,
short for Performance-Risk-Valuation investment technology. The tool, three years
in the making, rates stocks based on the relationship between their market value and
their underlying EVA performance. Stern Stewart, in partnership with Matrix USA,
a New York brokerage firm, founded Matrix Investment Research to distribute
investment research that is based on the PRVit ratings. The rating system seems to
be gaining some street cred. In January 2005, for example, a UBS tech analyst used
the method to support its recommendation of software firm Hyperion. Amonth later,
Fortune magazine featured a PRVit based analysis of Dow Chemical, Georgia Gulf
and Terra Industries.
Another tool, Customer Value Analytics, or CVA, is the outgrowth of a partnership
forged in March 2004 with Acorn Systems. The solution combines EVAwith Acorn
Systems consumption-driven costing to identify opportunities to increase economic
profit.
Preacher Joel
Managing partner Joel Stern has been leading the company since it was founded in
1982. Co-founder William Bennet was the intellectual force behind EVA, but these
days seems to prefer to govern away from the public spotlight. Stern, however, has
been an evangelical whirlwind, spreading the gospel of EVA across the globe. No
intellectual slouch himself, he often gives detailed macroeconomic forecasts ala Alan
Greenspan or Warren Buffet. Annually, he gives a speech on the future of the U.S.
economy from the University of Chicago campus, his alma mater. In his 2006
oratory, Stern was generally optimistic about the American economy, saying First,
at long last, U.S. business spending on capital expenditures is in high gear,
contributing mightily to GDP growth. He then proceeded to offer such concerns as
worrying what will happen if Federal Reserve Board Chairman Ben Bernanke makes
mistakes due to rookie jitters, and bemoan the state of affairs if the democrats should
run the White House in 2008. Stern garners substantial respect in the industry, and
people are listeningnewspapers worldwide, from Australia to Malaysia and
Europe, quote Sterns annual address in their analysis of the American economy.
Stern Stewart & Co.
GETTING HIRED
Doing the numbers
You wont find recruiting information on Stern Stewarts web site, but sources report
that the firm tends to draw primarily from University of Chicago, University of
Rochester and Columbia. Other schools are considered, however, and candidates
from Michigan, NYU, MIT and UVAhave made the cut in the past.
Insiders say the firm looks for well-rounded candidates who boast a solid grasp of
applied corporate finance theory and corporate accounting. In practice, this means
that most of Stern Stewarts associates have backgrounds in finance or accounting
and knowledge of credit and capital markets. MBA hopefuls are advised to take
courses in corporate finance and cases in financial management. The more
valuation you know, the better, a staffer tells us.
Fiercely financial
Candidates can expect to face two rounds of interviews, including either a phone or on-
campus interview, followed by an all-day round at one of the firms offices. The very
technical questions definitely focus on finance, insiders suggest, from the
straightforward (If you had to value a company, what would be the different valuation
methods youd use?) to the more complex, such as debt versus equity, when to use
convertible debt or the cost of financial distress. Other sources claim that the cases
arent so tricky, noting that cases are simplified for campus interviews.
Stern Stewart & Co.
2445 M Street, NW
Phone: (202) 266-5600
Fax: (202) 266-5600
www.advisoryboardcompany.com
LOCATIONS
Washington, DC (HQ)
Mountainview, CA
Portland, OR
PRACTICE AREAS
Executive Briefings
Installation Support
Strategy Services
THE STATS
Ticker Symbol: ABCO (Nasdaq)
CEO: Frank Williams
2006 Employees: 810
2005 Employees: 681
UPPERS
A great experience in corporate
drive, health care
Potential for early promotion
A leader in serving a sector that
desperately needs guidance
DOWNERS
Does not understand the
technology sector as much as the
health care/business sector
Corporate culture is like a cult
Long hours for low pay
EMPLOYMENT CONTACT
www.advisoryboardcompany.com/
public/careersabc/home.asp
The Advisory Board Company
V A U L T
P R E S T I G E
R A N K I N G
38
THE BUZZ
Heavily oriented toward
research
Dynamic, young,
Local, disorganized
Hands-offrecommend, but dont
do
THE SCOOP
Join the club
1.8 trillion dollars? No, that isnt the size of the United States current budget
deficitits the astonishing value of the American health care market. The Advisory
Board Company specializes in the health care industry, serving all 14 of the top U.S.
hospitals (according to a 2005 U.S. News and World Report survey), 90 of the largest
health care delivery systems and 20 of the worlds biggest pharmaceutical
companies.
The Advisory Boards business model is a bit different than your average consulting firm.
Rather than charging clients directly for its services, the firm offers annual memberships.
Clients pay a one-time contribution per year to gain access to the companys array of
consulting services: executive education, strategic planning, decision facilitation, process
redesign, research and benchmark data. Members also share access to the Advisory
Boards industry research and the firm takes, at least publicly, a nonexclusionary stance,
sharing its findings equally with all of its members: Our shared interest is maintaining
a permanent board of the worlds preeminent institutions, each benefiting from the
others experience across extended periods of time. Our intention is to serve members
so fully that there is little question of long-term commitment. This collaborative
approach has proven successful for the company: In 2005, it posted its highest member
renewal rate in its history, 92 percent. Among its 1,500-plus members are several big-
time health care names, including the Mayo Clinic, Memorial Sloan-Kettering Cancer
Center, Amgen, Merck, St. Jude Medical and Kaiser-Permanente.
A healthy focus
Founded in 1979 as the Research Counsel of Washington, this Washington, D.C.-
based firm began business on Capitol Hill with the mission to answer any question
for any company for any industry. Luckily for its 810 employees, the company has
narrowed its scope significantly. After entering the 1980s studying European
fountain pen sales and child adoption in South Africa, the company began, in 1983,
to specialize in research for the financial services industry, adopting The Advisory
Board Company as its new moniker.
In 1986, the firm initiated a strategic division dedicated to the health care sector,
which quickly earned a solid reputation among industry leaders. Growth exploded
from there, with over 1,500 hospital and medical-affiliated members joining the
Advisory Board network over the next 10 years. In 1999 the company split. The
health care division retained the Advisory Board Company name, while the financial
services side became autonomous and renamed itself The Corporate Executive
Board. CEB utilizes the same membership method as its corporate sibling, but
focuses instead on questions of executive strategy and general management.
The split has been amicable and profitable for both sides. Revenue for CEB has
skyrocketed, growing by more than $50 million per year since 2002, and currently
approaching the $300 million mark. The Advisory Board has seen similar continued
financial growth: In March 2003 the firm topped $100 million in revenue and this
number has increased quarterly ever since. Its publicly traded stock has doubled in
price since 2002, and in 2004 the company reported $122 million in revenue,
followed by $142 million reported in March 2005.
Diaspora of truth
A stand can be made against invasion by an enemy; no stand can be made against
invasion by an idea. So said Victor Hugo in 1852, and so says the epigraph to the
Advisory Boards 2005 letter to its shareholders. Ideas, studies and researchor
economies of intellect, as the firm likes to sayare at the core of what this health care
consultancy provides for its members. Another Advisory Board catchphrase, diaspora
of truth, refers to the firms belief that no one organization in health care holds a
monopoly on progress. Rather, they are all working together for the good of the
industry. As the firm claims, there exist compelling intellectual advantages to large
numbers of health systems, corporations and physicians working together to document
best practices. As such, the Advisory Board looks to gather companies together and
leverage their shared research. In other words, the firm offers advice for all its members
and is not looking for exclusive engagements; institutions may be vying for competitive
advantage, but the Advisory Board is looking to trim the shared fat of the health care
industry in general.
One notable example of this can be found in its Original Inquiry Research program,
a throwback to the companys origins, in which the Advisory Board offers on-
demand answers to industry questions for its members, who can then request a short
answer research report on virtually any health care topic. All reasonable research
requests are granted except for one: competitive intelligence research. The company
seeks to spread the word, not to provide specific advantage to particular members.
Members only
Heady quotes excluded, the best way to describe the Advisory Board is as a cross
between a best-practices publisher and a research institute. The company splits its
expertise into different membership plans. The most recently launched membership
group on the firms ever-growing roster, is the Surgery Compass, established in February
2006. Members of that program have access to research and tools that enhance the
profitability and efficiency of operating rooms. Membership also includes access to a
web-based application that analyzes members performance and profitability. There are
more than 25 different membership plans spanning most facets of the health care
industry. These include a group dedicated solely to cardiovascular medicine and
reducing clinical costs; the Nursing Leadership Academy, which focuses on
standardizing nurse training and assessment; and a Health Care Industry Committee,
which reports on innovative technologies and speculates on future market forces that
impact health care providers.
Walking the walk
Despite its consistent production of an avalanche of research, there are signs that this
health care consultancy has its eye on the implementation side of the business. The
firm has continued to promote its H*Works programinitiated in 2000which is
designed to help hospitals install the best practices uncovered through the firms
research. H*Works uses performance improvement teams to investigate the root
causes of problems and develop strategies to help hospitals perform up to the gold
standard of high-performing peers. For example, one service offered is specifically
tailored to reduce wait times, relieve overcrowding and improve the triage process in
emergency rooms, while another directly addresses inefficient bill collection and
leaked revenue to improve the financial outlook of health institutions.
Certifiably high tech
In February 2006 the company was certified, retroactive to January 2004, as a Qualified
High Technology Company (QHTC) under the New E-Conomy Transformation Act.
In the short term, certification required a one-time $5.5 million entrance fee from the
Advisory Board; in the long term, it reduces the firms statutory income tax rate and
makes the firm eligible for Washington, D.C., income tax credits and other benefits.
More significantly, it demonstrates that the Advisory Board will be using technology to
overhaul the health care industry. This followed the announcement in May 2004 that
the company would partner with MedeFinance, a California firm that provides revenue
cycle analytics based on business intelligence, to improve the financial viability of
income-leaking hospitals. MedeFinances web-based system would be used to extract
data from Advisory Board member networks and process the data into usable, real-time
information.
A hospitable environment
Housed in seven floors of the infamous Watergate suites of Washington, D.C., the
Advisory Board enjoys its solid reputation as an agreeable place to work. In
November 2005, it was named by Washingtonian magazine as one of the citys top
firms for employeesthe second time the company has made this biennial list.
Snacks, daily breakfast and a grand piano were cited as reasons to visit the companys
common room, while others enjoy the pool table and wall-size television. Two
weeks paternity leave and Friday happy hours in the common area dont hurt either.
The firm also is heavily committed to in-house training. The M.B.A.B.C. morning
program is designed to bring non-MBA staffers up to speed on basic business and
analytical concepts. In addition, there is a variety of skills training courses offered in
areas such as public presentations, statistics and specific software primers. There are
also sessions at The Academy, where senior company managers lecture and
shepherd staffers through educational team activities.
GETTING HIRED
Marathon sessions
Right from the start, the Advisory Board divides its jobs into five distinct roles:
research, executive education, marketing, the firms H*Works program and internal
services. Would-be consultants should look closely at the research and H*Works
sectors of the company, as these groups seem to offer the majority of typical
consultant/analyst positions with the firm, although the executive education and
marketing wings of the company have some opportunities, as well. Sources say that
the first interview will be with an HR or career management worker. After that,
reports are that the process is grueling and a marathon, with several employees
going through three rounds. One hire says he had seven interviews (excluding the
initial HR screening). Reportedly, the firm is looking for fit, drive and an ability
to work hard. They also look for well-rounded people who have a good grasp of the
English language. If you make it past HR, one insider tells us that the second round
of interviews is more of a where would you fit if you were here session where
multiple people interview you, usually from different divisions, and look for a bit
more drive and creativity. Final interviews are with senior staffers. One employee
says that this last round occurs if they feel like you are good enough but want to
really make sure. Its usually going to be interviews with potential bosses. The
source gives this bit of advice: If they like you enough, youre in. Be really spotless
on this one, have your spiel polished and ready to impress.
One last thing: just to cover your bases, you may want to clear some time to study. A
consultant explains, At least one interview is a case analysisthey give you one of
their studies ahead of time and you need to prepare. Expect to spend five to 10 hours on
preparationyou will be grilled. Often, the case deals with financial flashpoints
early indicators of hospital failure and what to do to prevent/stem the chaos.
OUR SURVEY SAYS
A cool atmosphere
Advisory Board employees are a young, hardworking bunch. One consultant says,
Its a cool atmosphere, very young, and can be a lot of fun for someone just out of
college. Their culture is very strong and the pillars they teach you about when you
first start are very decent corporate values that all companies should strive toward
(extra value in every interaction, no substitute for ROI, etc.). Another hire tells us
that the firm is filled with lots of smart, young, good looking people; you learn a lot
in a short amount of time. The source also describes Advisory Board as a high
pressure environment [that] helps you bond with co-workers.
Youth rules
Apparently theres a lot of work to be done at the Advisory Board: Staffers mention
that the load can be heavy at times. One employee who rose through the ranks tells
us, As an associate, you will be worked very hard, pushed to very high goals, and if
you excel, be prepared for even more work if you get to be a senior manager. Some
consultants gripe that theyre underpaid for these long hours. An insider suggests that
the employees are, in general, a fun group, but are underpaid for the work that they
do and the hours that they work. Most people put in amazing amounts of overtime
for no greater compensation.
And although staffers are psyched about the companys youth movement and the ability
to move through the ranks quickly, the downsideto several insiders, at leastis that
too many kiddies are running the show. As one source explains, employees can climb
the ranks with remarkable speed: People are promoted to senior associates after about
seven months and to manager after 10 months. Consequently, one staffer states that one
major downside of the firm is young, inexperienced managers. A colleague agrees,
noting that the main issue at the Advisory Board is that they promote extremely
inexperienced people into managerial positions.
Its a cool atmosphere,
very young, and can be a
lot fun for someone just
out of college
Advisory Board source
111 Huntington Avenue
10th Floor
Boston, MA 02199
Phone: (617) 425-8000
Fax: (617) 425-8001
www.analysisgroup.com
LOCATIONS
Boston, MA (HQ)
Chicago, IL Dallas, TX Denver,
CO Los Angeles, CA Menlo
Park, CA New York, NY San
Francisco, CA Washington, DC
Montreal
PRACTICE AREAS
Accounting Litigation Services
Antitrust Commercial Litigation &
Damages Energy Entertainment &
Media Environmental Economics
Financial Institutions Health Care
Consulting Innovation Management
Intellectual Property Labor &
Employment Securities & Financial
Instruments Strategy & Analytics
Telecommunications Transfer
Pricing & Tax Valuation
THE STATS
CEO & President: Martha S. Samuelson
2006 Employees: 330
2005 Employees: 315
UPPERS
Apolitical work environment
Very limited travel
DOWNERS
Unclear promotion path from
midlevel to senior positions
Occasionally boring or routine
work
EMPLOYMENT CONTACT
www.analysisgroup.com/careers.htm
E-mail: recruiter@analysisgroup.com
Analysis Group, Inc.
V A U L T
P R E S T I G E
R A N K I N G
39
THE BUZZ
Lean, smart company
Diverse
Academic, not business savvy
Few in-house experts takes away
from the learning experience
THE SCOOP
A bridge to the brains
Analysis Group, Inc., assists law firms with litigation and advises corporations and
government clients on any issue that might require economic and financial analysis.
The Boston-based firm was founded by former Arthur D. Little consultants and PhD
economists Michael Koehn and Bruce Stangle in 1981. The pair started the firm to
build a bridge between business and academia by providing economic research. With
16 practice areas, the firms forte is its ability to provide independent, fact-based
assessments to companies involved in legal disputes and complex business
challenges. Analysis Groups consultants represent 40 countries and 37 languages
and hold advanced degrees in economics, law or business. The firm deepens its own
cerebral capacity by partnering with outside academic affiliates, several of whom are
Nobel Prize winners. Consultants at the firm develop economic models for litigation
and disputes involving antitrust, fraud, intellectual property and tax issues across
multiple industry sectors, and provide expert testimony on liability and damages
assessment. Whether assessing causality in the decline of a companys stock price in
a securities fraud case or calculating damages related to patent infringement of digital
media technologies, Analysis Groups consultants come up with an analytical
approach for it.
Samuelsons savvy
Headed by CEO and President Martha S. Samuelson, Analysis Group is the sixth-
largest woman-led business in Massachusetts, based on a 2005 study conducted by
The Center for Womens Leadership at Babson College and The Commonwealth
Institute. Samuelson holds an MS in management from MITs Sloan School and a
JD from Yale. She joined the firm in 1992 and became president in 1998. In an
interview with the Harvard Law Bulletin in 1998, Samuelson stated that even as
CEO, she fosters a balanced approach to work and family responsibilities by keeping
a flexible schedule. She has played a central role in the growth and diversification
of employees at the firm.
Demand curve
The firms early work came from mergers and acquisitions. Since then, the demand
for litigation consulting work has driven up the firms revenue annually for the past
few years, resulting in double-digit growth. The mounting demand for expert
witnesses comes at a time when business problems that often result in litigations
have just become more complicated, harder to understand, said Samuelson in an
August 2005 New York Times article. The firms relatively small group of 330
professionals has contributed its brain power in antitrust, securities and intellectual
property to cases involving corporate giants such as Microsoft, AT&T and the Walt
Disney Company. In addition to its litigation work, the firm undertakes strategy
consulting engagements for Fortune 500 and mid-size companies, focusing on areas
such as pricing, product development, innovation, product and portfolio valuation,
and policy and market analysis. In June 2006, Analysis Group opened its 10th office,
in Chicago, to expand its client service in the Midwest.
Taking the stand
In 2005, Analysis Group helped clients prevail in three major jury trials. In April, the
firm provided damages analysis for Ernst & Young in a rare securities fraud trial that
went to verdict. Shareholders of Clarent Corporation, a Voice over Internet Protocol
(VoIP) company, accused the audit firm of accounting irregularities and overstating
revenue, causing a stock price plunge, claiming that E&Ywas liable for $125 million
in damages. Analysis Groups team critiqued the way the plaintiff calculated the
losses and the firms damages expert testified that the stocks decline was due to
market forces, not the auditors miscalculations. After three weeks of testimony, a
jury found E&Y not guilty of securities fraud and found no liability for damages.
That same month, the firm drew on its network of external experts to help attorneys
at Clifford Chance win a landmark trial victory for their client, Alliance Capital
Management, in a case involving investment management. Alliance, the Florida
Retirement Systems pension fund manager, had invested part of its stock in Enron.
When Enron collapsed, the investment lost value and Alliance was accused of
mismanagement. Analysis Groups affiliates testified that Alliance couldnt have
been expected to detect Enrons accounting fraud, and attested to Alliances
compliance with guidelines, rendering the defendant free of the $1 billion in damages
claimed.
Analysis Group also supported MCI WorldCom in a winning defense in March 2005
against plaintiff Twister Communications, a calling card and long-distance services
company. The plaintiff sued to the tune of $478 million, claiming MCI had usurped
its operations and destroyed the business. The firms consultants evaluated the cash
flow model Twister had used to forecast losses and provided testimony to show that
the plaintiffs projections were flawed. In each of these cases, Analysis Group
staffers worked closely with case leaders and expertsboth from within firm and
from leading academic institutionsto research and analyze relevant data, develop
and run models, and provide consulting support.
Getting the word out
Analysis Groups prolific professionals and academic affiliates have authored studies
on such varied topics as hedge fund returns, the impact on energy resources of
Hurricane Katrina, the future of U.S. telecommunications and the efficiency of the
stock markets. They regularly give seminars on a variety of litigation and business
topics, and are published frequently in prominent magazines and newspapers. A
February 2006 New York Times article cited a mutual fund pricing study Analysis
Group co-authored with a firm affiliate. Another of the firms academic affiliates
published a January 2006 article in The Wall Street Journal recommending complete
disclosure of executive salaries, discussing the effects of inadequate disclosure and
proposing additional reforms. The firms health care economists also produce health
outcomes research and analysis on topics such as cost of illness and impact of
medical technologies, which is frequently published in leading peer-review journals.
In addition, the firm publishes Analysis Group Forum, a semiannual newsletter to
report case updates, and new methodologies and research, as well as news on staff
and affiliates.
GETTING HIRED
Recruiting: handled with care
Recruiters from Analysis Group go after MBAs from Sloan, Chicago, Harvard and
other top programs, says one source, and lots of PhDs from a much larger group of
schools. Another adds, We tend to hire a lot of economics/finance PhDs and MBAs
from the nations top universities. Once recruiters have identified viable candidates
from these schools, the interview process is fair and impartial, according to
insiders. Most candidates go through two rounds: two to three interviews in the first
round, four to six in the second round, with no special tests or other tricks, a
consultant reports. One insider says the firms recruiting process is not clearly
defined, leaving large room for oversight and questioning, but most agree that
Analysis Group takes great care to ensure that people who are hired will fit in and
will have successful careers.
OUR SURVEY SAYS
Depends on where you work
On the whole, Analysis Group fosters a very collaborative, supportive
environment. One insider states, Of all the places I have worked, this is the only
one where people really matter. Indeed, says a colleague, The working atmosphere
is very pleasant and very supportive. The firms intellectually curious group of
people is encouraged to work together. One source notes, however, that the culture
of each office heavily depends on the partners who are running the office, with some
offices run by consultants with little management experience. Another sticking point,
according to one staffer, is that employees at the analyst level are not given much
responsibility beyond their immediate duties and generally do not identify with the
firm.
Capped opportunities
Analysis Groups policy on promotions is not strictly up-or-out, say insiders,
although the firm hasnt particularly figured out how to deal with the folks who
dont go up or out. One consultant reports that there is an unclear path from
midlevel to senior level, while a co-worker adds, Opportunities for advancement
are capped at the senior analyst level (analysts are expected to go back to graduate
school) and, as a rule, employees are encouraged to come back after getting their
graduate degree.
Supervisors at the firm are smart and good people, but they dont go looking for
ways to help people, says one source. But another claims that the principal group
is a very supportive, very intelligent group of people who care deeply about the
people, as well as the clients/work. Regardless of who your manager is, though, one
insider points out the bottom line: Its consulting, which means that clients call the
shots.
Homebodies
Sources report that at Analysis Group, there is much less travel than [at] most
consulting firms, and another insider notes that the travel requirements are heavy
at the principal level, but below that, travel requirements are flexible and minimal.
Number of days per week on the road varies, with some employees reporting three
days a week and others saying they dont travel at all most weeks. Project length also
varies, from a few weeks to a few years per project, says one source. Work hours
arent too shabby, either, were told. Most people go home by 6:30, with occasional
fire drills that go very long, one employee remarks. Insiders agree that the average
number of hours per week is around 55. In addition, most consultants claim that the
firm helps them attain work/life balance. The flexibility to work around personal
commitments exists and people are encouraged to put family first, explains one
source.
Consultants probably dont mind putting in some extra hours here and there, since
sources claim that Analysis Groups offices are top-notch. We work in a shiny
new office building that is in a mall, explains one Boston-based insider. Consultants
in Denver also seem pleased with their facilities: Everybody here has his/her own
office, which provides significant privacy and the opportunity to work without
distractions, a consultant relates.
On par
Compensation at Analysis Group is competitive with the major consulting houses,
say staffers. Employees also have the flexibility to take care of personal needs
without penalty. The firm offers very good health and 401(k) benefits and
regular company-sponsored events. One source says the perks are nothing over-
the-top, but acknowledges that the social events are well done. Insiders say they
get three weeks of vacation time and $30 a month toward a gym membership.
Employees are not offered much in the way of training-related perks, though, as
sources say most training is on the job. The firm notes, however, that it does
provide frequent training sessions on research tools and technical applications.
Egalitarianism prevails
Analysis Group has a very diverse workforce in some respects, say insiders. However,
while hiring is very solid when it comes to women, their numbers thin out as you go
up the food chain, and as a consultant admits, We could have more female partners.
With that in mind, sources do suggest that the firm is very friendly to women, including
the opportunity to work part time when children are young. Still, insiders point out:
Our CEO is a woman, and many of the top execs are women. With regard to ethnic
minorities, sources say Black Americans are not strongly represented at the firm. We
have more Romanian analysts than black American ones. Another consultant notes,
We have many Asians and Russians but few other minority groups.
Most Analysis Group consultants feel, though, that this firm is color blind, as well
as blind to gender and other personal characteristics. What matters is whether the
person can get the work done. The same applies to gays, lesbians and bisexuals,
insiders agree. I dont know if any of our employees fall into this category. It is not
relevantwhat matters is whether the work is done properly and whether the person
fits into the culture, an analyst states. Another source reports that there are few
openly gay employees, but notes that the firm fosters a very open environment.
Another calls Analysis Groups people a pretty libertarian bunch.
The travel requirements
are heavy at the principal
level, but below that, travel
requirements are flexible
and minimal.
Analysis Group insider
901 F Street, NW
Phone: (877) 242-5587
Toll Free: (202) 715-3030
Fax: (202) 715-3041
www.gallup.com
LOCATIONS
Washington, DC (HQ)
PRACTICE AREAS
Brand Management
Customer Engagement
Employee Engagement
Executive Performance Coaching
Marketing Research
Performance Evaluation &
Development
Performance Reward &
Compensation
Performance Strategy
Sales Force Effectiveness
Strengths Development
Succession Management
Talent-Based Hiring
THE STATS
Employer Type: Private Company,
Division of the Gallup Organization
President & CEO: James Clifton
2006 Employees: 2,000+
2006 Revenue: $240 million (est.)
UPPERS
A company that believes in what
it sells and wants every employee
aligned with what it is they do
best
A network of like-minded, whip-
smart colleagues
Consultants are able to set their
own schedule and work their own
hours
The work is always fresh and
interesting
DOWNERS
The pay plan is a little out of
whack right now
Family-run management; opposing
opinions not always embraced
Expense reports so cumbersome
that travel is a hassle
No structured promotion system
EMPLOYMENT CONTACT
www.gallup.com/careers
Gallup Consulting
V A U L T
P R E S T I G E
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40
THE BUZZ
Small, but impressive
Great work/life balance
We do surveys
One trick pony, you do the same
project over and over
THE SCOOP
Survey says
Odds are good that if you polled a handful of people, most would associate the name
Gallup with pollsnot consulting. But the fact is, consulting activities make up a
large and profitable part of the firms business. In 2002, the latest year for which
percentages are available, Gallup derived just 3 percent of its revenue from polling
activities, while almost all of the rest came from research-based management and
marketing consulting. The firm employs over 2,000 people, working out of 40
offices worldwide.
As befits an organization devoted to analyzing human behavior and preferences,
Gallup Consultings approach centers around people. Specifically, Gallup
differentiates itself from others in the management consulting pantheon by focusing
on pulling additional revenue and profits out of a clients continuing operations. This
organic growth, as the company calls it, stems from developing highly engaged
customers and employees. Theres a science to all this, according to Gallup, which
draws from the latest research in economics, management and psychology to help
leading companies worldwide.
From the Beltway to Tinseltown
The firm was founded in 1935 by Dr. George Gallup, who started it as a public
opinion tracking agency following a stint with New York ad agency Young &
Rubicam. Eventually, the company evolved from simply quizzing consumers about
preferred products to get a read on other issues, like politics. This led to a big break
for Gallups political polling in 1936, when the firm correctly predicted Franklin D.
Roosevelts presidential election victory over Kansas governor Alfred Landon,
contradicting the opinion of the nations leading poll at the time, the Literary Digest.
But the firm faced its share of high-profile slip-ups, too, most famously its 1948
prediction that Thomas Dewey would defeat Harry Truman in the presidential
electiona mistake that was duplicated by many newspapers and political pundits.
Still, the firm used the blunder to further refine its polling methods, and managed to
survive with its reputation intact.
Gallup continued to stretch beyond politics, making a name for itself as a provider of
must-have insights for a variety of industries and organizations. The firm became a
star in Hollywood by essentially inventing the practice of using scientific market
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research to produce movies, testing story lines and other elements on audiences
before release. The company grew its brand worldwide as it was tapped to conduct
opinion polls in foreign countries.
Keeping it in the family
When the firms patriarch, George Gallup, died in 1984, he passed the firm along to
his two sons, Alec and George Jr. In 1988, the brothers sold the firm to Nebraska-
based Selection Research Inc. (SRI), though Gallup continued to be a family affair.
Both Alec and George Jr. remained with the company, and SRI opted to retain the
better-known Gallup name for the newly combined organization. Selection
Research, which was founded by current Gallup CEO James Cliftons father, Donald
Clifton, specialized in conducting personality profiles that are used during the hiring
process to analyze the potential fit of prospective employees within an
organization. The merger with SRI marked the beginning of a period of rapid growth
for Gallupone that would see professional services like consulting gain increased
emphasis. In September 2003, Donald Clifton, who founded SRI in 1969, died at age
79. He received a lifetime achievement award from the American Psychological
Association, who called him the father of strengths-based psychology.
Gallups professionals hail from fields such as psychology, sociology, management
and economics. In recent years, the firm has established a new headquarters in
Washington, D.C. Activities that fall under the firms consulting purview include
organizational performance strategy, executive performance coaching; recruiting and
hiring advice; customer and employee engagement; employee strength development;
performance appraisal and review; succession planning; compensation; and sales
force effectiveness. But Gallup doesnt limit its servicesin addition to polling and
consulting, the firm also has divisions devoted to management education (Gallup
University), research (Gallup Panel), publishing (Gallup Press), the government,
health care and education sectors. The firm also has a less widely publicized faith
division, which works with religious congregations to help measure and increase
their members engagement.
Follow the Path
Gallup bases these services around a well defined approach to performance
enhancement developed by CEO Jim Clifton, known as the Gallup Path. The Path
proceeds in logical steps, first by identifying a companys strengths, making sure the
right people are in the right jobs and hiring great managers. This, in turn, according
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to the Path, leads to engaged employees, who inspire engaged customers, which
drives sustainable growth, leading to profit and, ultimately, stock increases. The
firms people-centric approach is also reflected in its new model for business
success, outlined in the book Follow This Path, by Gallup consultants Curt Coffman
and Gabriel Gonzalez-Molina. According to the authors, todays businesses must
learn to thrive in an emotion-driven economy. Strong organizations connect to
their customers on an emotional level, they argue, creating clients who arent just
loyal, but emotionally engaged.
Spreading the word
Gallup publishes ideas like this through widely-read books that manage to hit their
mark with the general public as well as the management ranks. Its 1999 winner,
First, Break All the Rules (Simon & Schuster), and Now, Discover Your Strengths
(Free Press, 2001), each boast over 1 million copies in print and have been translated
in over 20 languages. Based on these successes, Gallup launched its own imprint in
2004, and these days the Gallup Press produces books on business, management,
education, the social sciences, religion and current affairsall using the firms
rigorously scientific approach. The press also took on the publication of the firms
Gallup Management Journal, an online monthly founded in 2001 that currently has
more than 100,000 subscribers.
Positive reinforcement
Gallup Press first book was a nod to the organizations co-founder, Donald O.
Clifton, who died a year earlier. Co-authored by Tom Rath, 2004s How Full Is Your
Bucket? Positive Strategies for Work and Life is a short book meant for a wide
audience, and outlines the profound effect that interpersonal interactions can have on
relationships, productivity, health and longevity. The presss latest offering, Tom
Raths Vital Friends: The People You Cant Afford To Live Without (August 2006),
draws on the social themes the firm specializes in, arguing that employers should
encourage close friendships at work and advising readers on how to identify the
friendships that make their work and home life more positive and productive. In
2005, the firm published Married to the Brand: Why Consumers Bond With Some
Brands for Life, by William J. McEwen, analyzing what makes a successful brand
from a consumers perspective.
Other Gallup titles focus on education, another one of the firms specialties. Building
Engaged Schools: Getting the Most Out of Americas Classrooms, by Gary Gordon,
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with Steve Crabtree, argues that its time for students, teachers and schools to reorient
the learning process around better understandingand useof the strengths of
individuals. The 2005 Teach With Your Strengths: How Great Teachers Inspire Their
Students, by Rosanne Liesveld and Jo Ann Miller, with Jennifer Robison, collects
insights about what great teachers do differently.
Happy offices, happy workers
Meanwhile, the firm continues to feed the popular business press with workplace-
oriented surveys, such as a 2006 poll that showed the less satisfied employees are
with their physical surroundingssuch as the acoustics, ventilation or look of their
officesthe more likely they are to be disengaged with their jobs. Interestingly,
Gallup noted that a key factor in making employees happier on the job is allowing
them the ability to personalize their workspace to make it more their own.
Another 2006 survey showed that supervisors play a critical role in employee
happiness and engagement, and employees who feel their supervisors focus on their
strengths and positive attributes are more likely to describe themselves as engaged on
the job.
Getting a Gallup education
Gallup University serves as the firms virtual and physical outlet for the
dissemination of its performance management solutions. The firm opened a
corporate training campus in Omaha in August 2003a location choice influenced
by Cliftons ties to the state. Classroom courses are also held in Washington, D.C.,
and Irvine, Calif. The university provides online training through the Gallup
University Web portal, which provides access to self-paced e-learning courses,
reports and other learning resources. Gallup has teamed up with the University of
Nebraska-Lincoln to offer an MBA/MAin Executive Leadership.
Gallup is set to launch a second mastersthis one in Global Leadershipwith
much of the programs content built around another 2006 development, the Gallup
World Poll. The World Poll is a multimillion-dollar investment in creating the first
truly global, ongoing measure of what the world is thinking. Already in progress in
over 100 countries, the World Poll measures what how each countrys population
feels about a host of economic, social, political and personal issues, including its own
well- being. The ongoing discoveries from the World Poll are expected to be of great
value to leaders of large companies and governments who are trying to navigate an
increasingly complex world. The firm also offers regular summits that aim to
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introduce business executives, managers and sales professionals to its research
discoveries and best practices.
All about development
Though Gallup has strong ties to the American heartland, its actually a very diverse
company, with a staff that looks like the United Nations and has one of the highest
percentages of women in executive roles of any large U.S. company. Given its
specialty, its no surprise that Gallup also emphasizes personal development for its
consultants, giving them opportunities to analyze their strengths and refine them over
time. The firm offers a 50 percent tuition reimbursement for eligible associates
pursuing advanced degrees. Gallup says the majority of its associates receive a base
salary as well as Formax, Gallups pay for performance system that is based on
individual productivity and contribution.
GETTING HIRED
The Gallup gauntlet
If Gallup sounds like the place for you, be sure youre ready for a hiring process
described by insiders as unorthodox and completely unlike anything else Ive
seen. As part of its initial online application process (required of all applicants),
Gallup gives hopefuls an online assessment, which helps Gallup learn about each
applicants talents and potential within a variety of Gallup positions. These
questions, described by insiders as unusual, are designed to reveal aspects of a
candidates personality.
Personalities, not degrees
And thats just the beginning of a gauntlet of tests and activities designed by the firm
to find the right consultants for the job. After all, as one insider explains, One of
Gallups core consulting practices is selection. Thus, we employ our own principles
and are very selective with those we hire. As a colleague puts it, We dont just treat
upper echelon MBAschools like a Wal-Mart and take whatever theyre offering; its
still extremely selective with only approximately one in 40 referrals getting hired.
Students who think they might have what it takes should visit the firms careers web
site, which lists recruiting events at campuses nationwide. Gallup specifies that it has
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no preference when it comes to majoror even the level of a degreebut one insider
tells us that the firms recruits usually are primarily business and psychology
students.
Plenty of profiling
Candidates who clear the online application hurdle typically will face a series of
scripted phone interviews designed to find out whether or not you fit the
psychological profile of our best performers in a given role. You dont fit the profile,
you dont get hired, says a source. Successful interviewees can then expect one or
two video conference interviews and then one or two rounds of face-to-face
interviews in your regional office, another insider says.
Throughout this process, its important to be willing to share who you are, says a
consultant, and understand that the metrics used are there to help ensure that you
will be successful and fulfilled in the role you are applying for. Another insider
adds, I think people who know themselves very well, have a clear direction of where
they want to go and how to get there can do well. I recommend reading [Gallups]
First, Break All the Rules and Now, Discover Your Strengths for any interview and
just to readthey are fantastic books.
OUR SURVEY SAYS
Positive vibes
Open, incredible, very positiveall these accolades and more are used by
Gallup consultants to describe their firms culture. Indeed, Gallup really seems to
live the performance-enhancing values it espouses to clients: All of our philosophies
are based on positive psychology, which also plays out in our own environment,
says a source. Its a culture that focuses on strengths rather than weaknesses, and
emphasizes recognition on measurable performance metrics, a colleague adds.
Another insider pipes up, claiming that Gallups outstanding culture is a huge
advantage. The average tenure of the group I lead (over 50 consultants) is over 10
years. I believe our culture is the biggest factor leading to strong retention of talent.
One key to the firms culture is its people-oriented approach, reflected in the strong
relationships consultants have with each other. Its truly like a family atmosphere
at work, people are encouraged to share opinions and collaborate, and I would
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say I work with some of my best friends, insiders tell us. However, a source notes,
the growing firms culture is shifting from tight family business environment to
more of a global company.
No clock-punching
Another defining aspect of Gallups culture is its commitment to autonomy. In fact,
the firm treats consultants more like free agents, with the ability to set their own
hours and make their own work lives, so long as the job gets done. (Gallup even
eschews traditional vacation and sick days, giving staffers the freedom to take
time when needed). I determine where I work, when I work and how I work, so long
as I meet the needs of my clients, says an insider. I commit to giving excellent
service to my clients and it is up to me to do so, agrees a colleague, who adds, The
how and when I do it is not dictated to me. The truth is, on average I probably take
less vacation time under this scenario. However, when I need it, I have it.
Indeed, despite their freedom to come and go as they please, most Gallup consultants
are self-described overachievers. As one puts it, We all pretty much take on as
much as we can possibly handle, but it is our choice. Sure, I work a lot of
weekends, but that is because I love what I do and we are pay-for-performance, so I
choose to work those weekends. The great thing about this company is that you can
choose how to balance your life. The net result is on end performance, not how you
necessarily get there, but what your net result is. That way, you are free to balance
your own schedule and we are held accountable for performance, says another
insider.
To travel or not to travel
The firms dedication to self-direction means it does not have as rigorous travel
expectations as some of its management consulting peers. The firm explains that
travel assignments are more a function of certain roles, and are also strategically
reduced by having offices located near clients. There are exceptions, of course, but
for most jobs, travel requirements are really varied based on personal preferences,
says a source, who adds that for some roles, such as consulting specialists and
analysts, there is usually very little travel required. The major demand for travel is
set by your clients so I have certainly known some people [who] choose not to work
[for] certain clients based on their locations and possible implications for travel. As
there is a continued push to have more on-site presence with clients, I can see this
changing a little, though. Acolleague adds that travel averages out to two days per
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week on approximately half of the weeks. Because of the free agency system, where
we choose our work based on our client interest and need, this is up to each
individuals discretion.
Time flies when youre having fun
You wont find too many of the busy beavers at Gallup complaining about their work
hours. Thats not because they have it easy, but because they like to work hard: I
dont keep track, of hours, says one consultant, who adds, I measure my
performance in progress made toward client objectives. At times that is not a
significant workload, at other times it makes for long days. Another consultant, who
reports an average of 65-hour workweeks, tells us, Not everyone has to work as
much as me, but I just really like what Im doing and I choose to work this much.
Also, its pay-for-performance, so Im getting paid for all the extra work I do. What
this all comes down to, sources suggest, is the firms flexible approachThe
company is not enforcing the hours, [but] rather, looking at the outcomes, one
insider says.
Most Gallup consultants report juggling multiple assignments at once, with
ongoing projects that can last for months or even years. A staffer explains,
Engagements usually last the whole year and then client retention is very high. So
you may work with 10 clients at a time, all year round, with different intervals of
intensity for each client. Half your clients may need heavy work in the spring, while
the other half [need work] in the fall.
Growing in your role
Since performance management is one of the firms specialties, its no surprise that
consultants arent forced to trod a narrow path upward to advance at the firm. In fact,
explains an insider, Were broad-banded and hire people into the role we expect
them to thrive in throughout their career. Advancement is generally about more
responsibility and higher visibility, and you can do so as fast as you show mastery of
what you do. However, low producers will always find their way out the door. A
colleague chimes in, You are hired through a rigorous, globally validated, scientific
selection tool. The philosophy is that you are hired for what you are doing because
it is something you inherently enjoy. The firm then rewards your performance at that
level without forcing you to move up to increase your remuneration. Often, our
best consultants dont aspire to management, but to be more productive and valuable
consultants, adds a source.
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Pay to the max
At Gallup, even compensation is governed by a unique structure, a pay for
productivity system we call FORMAXFOrmula for MAXimum productivity, a
source explains. Insiders generally appreciate the pay-for-performance approach; as
one consultant puts it, Since a lot is done to make the environment conducive to
performance, and people who work there like to perform, I think the vast majority
who work at my firm are happy with their performance. That said, the system does
lead to vast variation among compensation packages: For example, in one group I
manage, the top performer is paid more than double the salary plus bonus when
compared to the bottom performer in the same role, a source tells us.
Though Gallups compensation used to be below the market at the early 2000s,
another insider says, now, its getting more competitive. In addition, a consultant
reports, the firm provides small incentives for strong ratings from internal and
external customers. The chance for employee stock ownership is also a plus for
staffers, as stock has grown at a significantly faster rate than the Dow Jones, an
insider observes. In fact, says a colleague, Company stock has outperformed all
other investments in my portfolio by over 25 percent, resulting in significant growth
that would have otherwise been unavailable.
Though some insiders grumble about benefits that leave something to be desired,
such as poor health coverage and low 401(k) matching, the company does provide
some unique perks. The firms on-site child development centers are a boon to
parents, and for the fitness-minded, there are two amazing personal trainers who
help us with our fitness goals. In addition, Our biannual conference is always a big
draw, reports an insider, noting that this years speakers were Paul Bremer and
Deepak Chopra. One source raves about the firms spectacular offices in major
cities around the world, and another consultant insists that the firms most valuable
perk is its almost complete freedom, adding, It would be very hard to go back to
a regular workday with regular vacation, sick days, etc.
Supervisor? Whats a supervisor?
Gallups approach to supervision is best reflected in the kicky name it has for its
managerstheyre known as Go Tos, not supervisors. As a consultant puts it,
Sure, your supervisor is there to support you and recognize you and encourage your
development. But a big part of the culture is that you are your own free agent, if you
will, an entrepreneur, and responsible for your own actions. Everybody has a goal to
meet, and your supervisor, or Go To, is there to help you reach that goal. So its not
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like theres a boss, but rather a support system. According to a colleague, Were
very flat and highly matrixedthe lack of an obvious hierarchy often confuses our
clients and consultants from other firms. The level of independence afforded here is
great, though. The firm is so flat, in fact, that one source tells us there are less than
four to five layers from a new hire to the CEO.
In addition, a source explains, you wont find many managers at Gallup who focus
exclusively on managing: Very few people actually just manage others; most of
them mix the supervisory responsibilities in addition to their regular roles, so this
means that there is very little time for micromanagement. Still, one insider
complains that this type of matrix organization allows for zero accountability, since
no one takes responsibility for their actions or mistakes. It takes an act of
Congress to get something corrected, and nonstandard solutions are near impossible
due to all the bureaucracy.
Ask your friends
Training at Gallup also meshes with the firms autonomous, do-it-yourself culture.
There is some formal instruction, the firm states, but training is more reliant on peer
networking and developing mentors than at other firms. An insider explains,
Consultants begin their careers with a two-week session at our company
headquarters, and then have individualized training throughout their careers. As one
consultant reports, Although they are making moves to correct this, much of the
training is informal and based on your network of people. In the first couple of years,
you really end up relying heavily on those friendships internally to help you through
the learning curve. You have to be able to pick it up without a lot of hand-holding,
agrees a colleague. However, this may be changing, a source says, as we have
recognized the need to create more official training programs. The firm also
comments that its continued training for consultants involves focusing on an area of
specialty, and developing a mentor relationship with a more experienced consultant.
Woman-powered consulting
Gallup gets props from insiders for its strong representation of women. Although
the partner (read: sales) side of the organization is largely populated by men, the
consulting side is very female driven. This strong female representation is reflected
in the new promotion of a female to head up the consulting team and represent us in
the exec level, a source says. We probably have more women than men in more
senior roles, agrees a colleague.
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As for minority hiring, its a work in progress, insiders suggest. We are much more
diverse than the cities within which we operate. Our largest office is in a city that is
not very diverse, but our workforce is intentionally much more diverse than average,
says a source. Another insider observes that there is recognition of the benefits of
diversity.
Sexual orientation isnt a big deal at Gallup, a place where most people feel
comfortable enough to introduce partners into everyday conversations, whatever
their sexual orientation, a consultant says. I am gay, and have been out at work
here for my entire tenure, a staffer reports, adding, I havent experienced any
outright discrimination. I do feel a little alone as a gay man at Gallup, however.
According to another insider, the firms CEO has openly stated that companies, ours
and others, need to be supportive of GLBT issues if they want to be competitive in
the marketplace. I couldnt agree more and know at least two GLBT hires in the last
year. In addition, a colleague says, Our benefits package supports domestic
partners in the same way, as allowed by law, as married couples.
Building communities
Gallup is a big booster of community service through its Community Builders
program, which provides an easy mechanism to donate money to a community
involvement fund directed by the local office, says a source. Each office has a
team that coordinates community involvement activities for the entire staff. They
help make decisions about which activities to fund and add our support to. For
instance, we are heavily involved in Special Olympics in our area, and over
Christmas we supported a secret Santa for the less fortunate. Another insider cites
involvement in lots of pro bono volunteer teaching/training, and job shadowing with
Junior Achievement, while a colleague points to significant work in schools at a
lower rate and other nonprofits such as the Thurgood Marshall Foundation. In
addition, says an employee, Leaders in our company are encouraged to serve on
several boards. I serve on a board appointed by our state governor, and any time off
necessary to serve in that role is supported by my organization.
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8065 Leesburg Pike, Suite 500
Vienna, VA 22182
Phone: (703) 506-3900
Fax: (703) 506-3905
www.dean.com
LOCATION
Vienna, VA (HQ)
PRACTICE AREAS
Investment Analysis
Strategy Consulting
THE STATS
Chairman: Dean Wilde
2006 Employees: 75
2005 Employees: 60
UPPERS
Interesting and analytically
challenging case work
Emphasis on whats best for the
client rather than whats politically
expedient
Good mentorship opportunities
when you proactively seek them
DOWNERS
Lack of investment in intellectual
capital and marketing
Small firm issues (limited case
diversity, uneven client contact
across cases)
Lack of cohesiveness across
different business lines
EMPLOYMENT CONTACT
www.dean.com/careers_overview.htm
Dean & Company
V A U L T
P R E S T I G E
R A N K I N G
41
THE BUZZ
Great work environment
Very smart, very quantitative
Veering away from core
consulting
Think A Beautiful Mind
THE SCOOP
Quality not quantity
Dean & Company was founded in 1993 by Dean Wilde and James Smist, both ex-
Mercer Management heavyweights. The firm is unabashedly proud of its petite size
and slow growth, and highlights its ability to be selective in choosing its clients, as
well as future Dean staffers. Indeed, selectivity is a big part of Dean & Company
the firm is quite picky with engagements. There is little middle ground here: Clients
are either big Fortune 500 behemoths or itsy-bitsy startups. What seems to motivate
Dean & Company are complex problems whose solutions provide lots of upside. For
this reason, the large companies on its client roster tend to be in industries facing
tremendous change: telecom, financial services and life sciences, for example.
Focus on strategy
This Vienna, Va.-based firm does have a growing investment advisory practice, but
otherwise is focused solely on strategic problem solving for business leaders. Dean
does not target any particular industry; its strength is its ability to understand,
structure analytic approaches and develop solutions to critical business issues that
affect many industries. These issues run the gamut of typical business problems,
including determining prices, dealing with mergers and acquisitions, targeting
customers, determining the suitability of potential markets and handling the
introduction of a new product.
Delta, Delta, Delta
Any discussion of Dean & Companys methodology cannot go very far without
mentioning the Delta Model, an organizing strategy meant to facilitate the
implementation of business strategy. It was developed in the late 1990s by Dean &
Company founder Dean Wilde and MIT professor Arnolodo Hax. Heres their
reasoning for adding another corporate manager handbook to the pile: It grew from
our conviction that the world of business has been experiencing transformations of
such magnitude that the existing managerial frameworks have become either invalid
or incomplete. Once Wilde and Hax realized this, they gathered a group of
influential CEOs (from companies such as Merck and Siemens) to figure out what
elements these current business frameworks were missing. They then got the faculty
and students at MIT Sloan School of Management on board with studying the issues.
Dean & Company itself chipped in by adding research from its own engagements.
Dean & Company
The resulting Delta Model lays out a fairly standard approach (i.e., being open to
creativity, executing strategy, measuring performance and analyzing those
measurements), but puts two little twists on these tried and true approaches. The first
twist relates to the high-tech revolution. The Delta Model puts an emphasis on
carefully using networked solutions to improve infrastructure, as well as execute
strategy. The second revolves around creating an extremely close relationship with
customers, a concept Wilde and Hax call customer bonding. If you want to know
more about the Delta Model, make sure you check out the 2001 book by Wilde and
Hax, The Delta Project.
Investing changes
Dean & Company is not reticent about its desire to grow the investment advisory
segment of its practice. The roots of this can be traced back to 1998 when the
company entered into a partnership with Lindsay Goldberg & Bessemer, a New York-
based investment firm with over $2 billion in committed capital. Back then, Dean &
Company maintained a focus on due diligence, providing objective quantitative
research on prospective investments. But eventually the firm made the natural leap
into strategy consulting for those very same companies it was researching. Today,
Dean will actually invest in startup firms that it feels have potential, and then offer
its consulting services for a combination of fees and equity.
The world is flat
Dean & Company prides itself on its collegial culture and nonhierarchical structure.
The firm claims to throw seniority out the window when rewarding employees
individuals are promoted purely based on performance. As the company puts it, We
have a speedometer approach, rather than an odometer approach. Career reviews
are detailed and conducted frequently so that feedback is forthcoming to junior
staffers. Upward reviews, when the tables are turned and senior management is
critiqued by those lower in the food chain, are also a part of life at Dean & Company.
Utah utopia?
Dean & Company keeps its engagements quiet and enjoys a low public profile. But
in 2004 the firms name began cropping up in conjunction with an interesting case,
quite off the beaten path. Several municipalities in the Brigham City area of Utah
had come up with a novel idea: Rather than rely on, and pay for, a telecommunication
network built by a corporate giant, why not build one themselves? And why not let
Dean & Company
the network companies bid on providing services to the 724,000 customers in their
region, thereby lowering prices? The municipalities began small trials, laying faster
cable than what the big boys use, and hired Dean & Company to see if their venture
(with taxpayers money) was going to be feasible in the long term. Dean came down
in support of the project, named UTOPIA, saying the project showed promise and
was sufficiently profitable. Today, other communities in California have begun to
copy the UTOPIA approach. UTOPIA may have been a small engagement, but it
does demonstrate the firms desire to work with clients in atypical environments that
have the potential for high growth.
GETTING HIRED
The few, the elite
The list of schools at which Dean & Company recruits looks like a whos who of
undergraduate institutions. Drawing from the top of the college ranks, consultants
are recruited from Harvard, MIT, Dartmouth, Cornell, Yale, Princeton, UVA, UNC,
University of Chicago and Duke. And it seems harder to get hired by Dean than it is
to break out of a maximum security prison. One analyst says, The HR manager told
me when I was hired that only one in 100 people are offered jobs. The firm only
selects people from the very top schools.
In order to become that one in 100, a consultant explains that a candidate will
undergo two to three rounds of interviews, all case interviews, [with] no real resume
review/fit questions. A recent hire notes that the process begins on the college
campus with one 30-minute case interview in the first round, and then two 45-
minute case interviews in the second round. We also meet candidates at a reception
before interviewing begins. The source continues, Ad hoc recruiting varies. First
round is a half-hour resume interview and two 45-minute case interviews. After that,
it is two to five more interviews with various levels of people at the firm.
Other employees describe the interview process as rigorous and analytically
challenging. Expect two-plus interviews with cases that involve a significant
emphasis on analytical skills. A colleague reports having gone through a similar
interview process: I had one resume interview and four case interviews. Case
interviews are highly quantitative in nature. Once the rounds are completed, Dean
& Co. has a snappy comeback ready. Aconsultant says that the companys decision
is usually made within a week of the interviews.
Dean & Company
OUR SURVEY SAYS
Energy is more than get-up-and-go
Lately, an employee explains, The firms focus has moved away from consulting.
Its successful energy trading firm has become the priority for management and many
new analysts hired for consulting have been assigned to be energy traders (with the
programming requirements of that side of the business). Because of this shift
toward energy, the interior workings of Dean seem to be in flux. In addition, one
insider gripes that there is a tendency to be staffed at 100 percent billable due to our
ability to shift people to DC Energy, our energy arbitrage firm.
An analyst states that the firm has evolved into having three distinct cultures: the
energy arbitrage group, the private equity group and the more traditional
management consulting group. Each is evolving and finding its place within the firm
as a whole, but has led to somewhat of a rebuilding of the consulting side, which both
provides increased opportunities and increased stressors, as resources are oftentimes
very tight. In addition, a colleague remarks, there is a disjointed feeling across
different lines of business.
Cross-pollination
The increased stress of restructuring doesnt get in the way of staffers interpersonal
relations, though. Dean is reportedly populated by friendly analysts without
hierarchical borders. One consultant says that all employees are very helpful,
qualified analysts, and that there is no sense of inter-analyst competition or
tension. A colleague remarks, The culture is very collegial and theres
encouragement for opinions regardless of seniority, as long as theyre backed by
some intelligence. As one employee notes, not only are people friendly between
different levels, but fellow consultants are very helpful, even across cases. Dean
consultants also have opportunities to bond outside of the office. As one insider
explains, The firm is excellent in providing social outlets and opportunities for
analysts and associates. The only drawback is more senior people at the firm do not
participate as much.
The tight-knit nature of Dean & Co. might have to do with the small size of the firm.
One consultant explains, Because of our small size, there is a premium placed on
being able to handle responsibility early on, and part of that is having a lot of
interaction with senior clients and senior management within the firm. Your ability
Dean & Company
to do so is conditional on your assignment and which manager/VP you are working
with.
Free to be you and me
Employees at Dean & Co. report that they probably [have to do] less work and travel
than other top consulting firms. One outlying employee feels pressure to work a
lot of hours, but most feel that overburdening employees is avoided. One consultant
notes that the emphasis is less on face time and more on getting things done. Overly
stressful weeks are balanced with comp time.
Asource explains, The workload really varies from case to case, tending upward on
weekends for consulting cases and downward for energy cases. Other consultants
report that they do average anywhere from five to 20 weekends per year doing work.
But, in general, Dean consultants enjoy flexible work arrangements, and most feel
that there is a positive work/life balance at the firm. Aconsultant confides that much
freedom is given to allow you to complete your work in the manner you deem most
efficient.
And travel at Dean tends to be on the lighter side but, like workload, has significant
variability by case. One consultant reports, Travel is light; if anything, I wish we
traveled more. While most consultants at other top firms spend lots of time on the
go, a colleague corroborates that at Dean, employees rarely travel. At any given
time, approximately 90 percent of the employees are in the office.
Getting on the bicycle
Apparently, training used to go more smoothly, but now, one consultant confesses,
most training is unofficial. Quality of training has declined for consulting as start
dates have become more staggered. If you start on-cycle, the training is two weeks,
including a mock case; if you start off-cycle, its more haphazard. Continued training
is sporadic at best. Colleagues agree that most training is on the job, but one
employee says that from his experience, There is a week of initial training and short
modules a few months after joining.
While Dean & Co.s training process is, perhaps, a little haphazard, an employee
boasts that managers are excellent mentors. And while on-the-job training may be
informal, a colleague believes that, in this sense, the firm is good at easing people
into the work and providing a lot of guidance early on. Another insider also notes
Dean & Company
that senior management is always available and willing to talk about career
development.
The promotion speedometer
Perhaps its their interest in energy that leads Dean consultants to make automotive
analogies, but one summarizes the thoughts of many when he explains that the firm
likes to advertise itself as evaluating people on a speedometer, rather than an
odometer, in terms of promotions, allowing employees to advance if they show
ability, regardless of their tenure. But in reality, promotions seem to be tied closely
to tenure.
Thats all well and good, but the metaphoric driver has his foot on the brake. The
firm does not have an up-or-out policy, an employee says, but the pace of
promotions has slowed down in recent years, although the firm is again on a growth
trajectory. A colleague concurs, saying that promotion has significantly slowed,
and adds that the firms recruiting message has been updated to reflect this more
realistically than in the past. Time from analyst to associate is roughly three years,
associate to manager is approximately five years, [and] manager to VP is long.
Weve had no promotions to VP on the consulting side (independent of our energy
arbitrage group) in the last five years. Another source views the situation with a
more positive spin, suggesting that the firm provides the ability to grow and develop
at your own pace.
Dean angst
According to sources, Dean seems to have slowed its pace in other areas, too. Most
employees seem tolerably happy with their pay, and one consultant grumbles that
Dean & Company has become increasingly not competitive on associate salaries
versus peers, but remains competitive for analysts. Dean & Co. will match up to 4
percent on employee 401(k), though one employee expresses dissatisfaction with this
plan. He remarks, The one thing I was disappointed about when I joined the firm
was the retirement planthe only thing is a contribution to a 401(k), and you have
to be vested over four years.
Dean & Co. in the D of C
Employees may be on the fence about salary, but there are some definite perks to
working at Dean & Co. One consultant loves the great office communityanalysts,
management and staff get along. Support staff is invited to all eventsthats great.
Dean & Company
And a colleague mentions monthly events, at an analyst level as well as an entire
firm level, such as golfing, wine tasting and salsa dancing.
When theyre not out on the town, staffers enjoy a cushy office space, described by
one analyst as beautiful. A source appreciates the good IT equipment and nice
office location with parking, even though two analysts share each office. A
colleague does note that Dean & Co. is getting cramped, but we are going to expand
this summer. Maybe when they expand, theyll take into account one employees
suggestion that the dcor needs a refurbish, [since it] doesnt reflect the high value-
added consulting market that the firm serves.
Nestled in the D.C. suburbs, Dean & Co. does little to reach out to the surrounding
community. The firm does not encourage [community service] directly, but is open
to it. It would be great if we did more, remarks a source. The firm does, however,
make room in its hectic schedule of golf and gaiety for the occasional clothing
drive.
The characters
Dean & Co. is open to people of different backgrounds, but doesnt have much in the
way of diversity, were told. As one consultant acknowledges, Our firm is
disproportionately male, though not through any structural reason. And a recent hire
observes, While there is no discrimination against women, the quantitative nature of
the candidates we seek creates a natural filter. The firm does realize the imbalance
and has put forward some effort to alter this, but there is still a lot more to do. That
sentiment seems to be the consensus among employees. The firm is very receptive
to women, a colleague says, but seems to attract few. There are no women above
the analyst level. Employees said similar things about minority representation at the
firm.
Women may not have the run of the town at Dean, but people of different sexual
orientation feel right at home. [The] firm seems open to gay analysts, an employee
states, and consultants bring partners to events. One openly gay consultant reports
that there are no issuesI am gay, and feel that I am not treated, nor should I be
treated, any different from anyone else.
Dean & Company
5 Times Square
New York, NY 10036
Phone: (212)931-7300
Fax: (212) 931-7310
www.giulianipartners.com
LOCATIONS
New York, NY (HQ)
Atlanta, GA
PRACTICE AREAS
Corporate Strategy
Crisis Management
Emergency Preparedness
Investment Banking
Private Equity
Public Safety
Risk Assessment & Mitigation
THE STATS
Chairman & CEO: Rudolph Giuliani
2005 Employees: 55
UPPERS
Name recognition
DOWNERS
Little transparency
EMPLOYMENT CONTACT
Phone: (212) 931-7300
E-mail: info@giulianipartners.com
Giuliani Partners LLC
V A U L T
P R E S T I G E
R A N K I N G
42
THE BUZZ
Solid reputation
A noble firm in purpose and
foundations
Riding the coattails of Rudy
Weaker junior staff
THE SCOOP
Showing its strength
From the firms inception in 2002, Giuliani Partners has had the benefit of a recognizable
figure at the helm: Rudolph Giuliani, former two-term mayor of New York City.
Giuliani, Consulting Magazines 2002 Consultant of the Year, established the firm in
collaboration with Ernst & Young. The practice specializes in corporate strategy,
security, emergency preparedness and crisis management. From its outset, the firm was
poised to stand out as a safety and security advisor, as a result of the reputation Giuliani
gained while managing the crisis in the aftermath of the September 11 terrorist attacks.
Its founder, having been known as a law-and-order mayor, its no surprise that Giuliani
Partners attracted several former public security heavyweights. Pasquale J. DAmuro,
26-year veteran of the FBI and noted counterterrorism expert, was named CEO of the
security and safety division in March 2005. Michael Hess, a founding member of the
firm, was a prior chief of the Civil Division in the U.S. Attorneys Office, and
represented the U.S. in some major cases, including The Pentagon Papers case against
The New York Times. Other execs in the security division include Thomas Von Essen,
former Commissioner of the New York City Fire Department; Richard Sheirer, former
Emergency Management Commissioner and Director of New York City Homeland
Security; Daniel Connolly, former Special Counsel to the Corporation Counsel of the
City of New York; Laurence Levy, former Deputy Counsel to Mayor Giuliani; Maureen
Casey, former Deputy Commissioner of the New York City Police Department; and
Christopher Rising, former Inspector and Special Counsel to the Police Commissioner.
Former police commissioner Bernard Kerik was a founding partner and head of the
firms security division, but left in December 2004 when a scandal surfaced after he was
nominated to head up the newly established Department of Homeland Security.
From boss to banker
In 2004, Giuliani Partners formed an I-banking division, Giuliani Capital Advisors, LLC,
to give advice on restructurings for clients in aerospace and defense, automotive, airline
and transportation, health sciences, industrial products/manufacturing, retail and consumer
products, and technology/communication. To beef up the banking venture, the firm
simultaneously acquired Ernst & Youngs corporate finance arm, adding six offices with
140 staff throughout the U.S. Steven Oesterle, a partner at Giuliani Partners, was chosen
as chairman and CEO of the new division, still in its early stages. The company has
already snapped up lucrative engagements from Delta and US Airways.
Consultants clean up
In January 2004, the firm collaborated with Sabre Technical Services, the company
that developed technology for anthrax clean-ups and provides decontamination
services, to form Bio-ONE. The venture was formed to roll out Sabres chloride
dioxide gas delivery technology to kill bio-organisms. Bio-ONE specializes in
biological and chemical preparedness, response and remediation. The company was
hired to scour the anthrax-laced American Media Inc. building in Boca Raton, the
first facility found to be contaminated during the bioterrorism threats in 2001.
A marked connection
In March 2005, Giuliani Partners signed a $2 million deal with Applied DNASciences,
a Los Angeles-based company, to market the companys DNAmarking technology. The
company, which created a way to use DNA technology for fraud-protection and
anticounterfeit services, is backed by investors with a laundry list of run-ins with the law.
The deal would potentially make Giuliani Partners the largest shareholder of Applied
DNA, potentially giving it 21 million shares of the companys stock. Since its inception
in 2002, Applied DNA had shown annual losses, no cash for operations and no
customers, according to SEC documents. Questions were raised when the stock, traded
on the Nasdaq, rose 265 percent after disclosure of the deal. In an article in USA Today
in March 2005, former federal prosecutor Lee Rubin said the small number of
shareholders and the stocks steep climb are red flags that will likely invite the SECs
attention. In the article, Steven Oesterle, a partner at Giuliani Partners, said that Applied
DNAhired Giuliani Partners to turn around and resuscitate the company.
Powerful partnerships
Speculation remains as to whether Rudy Giuliani will again play a role in politics.
Regardless, the firm has not shied away from publicly unpopular clients, including
the Indian Point nuclear power plant in Buchanan, N.Y., one of several nuclear plants
owned by Entergy Nuclear Northeast. Giuliani Partners was hired to advise on
planning and risk management for the power plant. The New York plant has faced
opposition from those who want to replace it with a conventional power plant,
claiming the plants proximity to New York City poses too big a terrorist threat.
Giuliani Partners was also tapped by TransCanada Corporation and Shell US Gas &
Power Company to provide security and strategic consulting services for their
Broadwater project, a proposed offshore liquefied natural gas facility on Long Island
Sound. The plan to anchor a natural gas storage vessel the size of the Queen Mary 2 in
the Long Island Sound has drawn criticism from some locals who believe it could start
development of an unwanted industrial park in an area that has been historically pristine.
Border patrol
Giuliani Partners was hired by the Pharmaceutical Research and Manufacturers of
America (PhRMA) to conduct a study of drug importation safety in 2004. The
results, published in April 2005, called for an immediate moratorium on drug
importation legislation. The study found that to consider importing non-FDA
approved drugs would provide an opportunity for terrorists and open U.S. borders to
threats when in all other aspects we are searching for ways to tighten the security of
our borders, Giuliani stated in the report. The study prompted backlash as
supporters of importation legislation say Giuliani is a hired gun for money-hungry
drug companies who dont want the competition. The firm was also hired by Purdue
Pharma in 2002 to advise the company after its blockbuster drug began facing stricter
federal regulation resulting from reports of its increasing misuse.
Going off in new directions
Giuliani also seems to be expanding its reach. Apartnership with Dynacity, a Japanese
corporation, was forged in February 2005 to speed up the firms investment in the real
estate industry. Along with Sage Capital Global, the firm invested a combined amount
of $85 million to acquire real estate and attract investors. Dynacity has sustained
pioneered urban compact condominiums as an innovative way to propel market
growth. Though Giuliani Partners has conducted investment activities in Japan since
2004, this is its first foray into the Asian real estate market.
GETTING HIRED
Network your way in
Giuliani is made up of quite an elite bunch of characters. The inner circle is pretty tight
and the company is not exactly forthcoming on how to break into the firm.
Unfortunately, theres also scant information on Giuliani Partners web site regarding job
opportunities and application procedures.
1050 Winter Street
Suite 3000
Waltham, MA 02451
Phone: (781) 434-1200
Fax: (781) 647-2804
444 Castro Street
Suite 600
Mountain View, CA 94041
Phone: (650) 967-2900
Fax: (650) 967-6367
www.prtm.com
LOCATIONS
Waltham, MA (Atlantic Region HQ)
Mountain View, CA (Pacific Region
HQ)
PRACTICE AREAS
Business Technology Innovation
Customer Experience Innovation
Operational Strategy
Product Innovation
Supply Chain Innovation
THE STATS
Regional Chairs: Michael Aghajanian
& Gordon Stewart
2006 Employees: 575
2005 Employees: 500
UPPERS
The open culture where you can
reach out to everyone
We are known for producing
results that matter
I am continually challenged to
step outside my comfort zone
One of the highest retention rates
in the industry
DOWNERS
The lean mentality seems to go
a bit too far at times
Not enough in-person interaction
at the office
Most people have never heard of
our firm before
Projects tend to be small (only
two to four people usually)
EMPLOYMENT CONTACT
Western U.S.
Attn: Recruiting
4695 MacArthur Court
Suite 1200
Newport Beach, CA 92660
E-mail: uswest@prtm.com
Eastern U.S.
Attn: Recruiting
1050 Winter Street
Suite 3000
Waltham, MA 02451
Fax: (781) 466-9853
E-mail: useast@prtm.com
Other contact locations available at
www.prtm.com
PRTM
V A U L T
P R E S T I G E
R A N K I N G
43
THE BUZZ
Strong in IT strategy
Very smart, get stuff done!
Traditional and stodgy
One trick pony-PACE
THE SCOOP
Outsized reputation
With over 500 employees, PRTM may be small compared to the big boys, but with
its select client list, highly regarded corporate culture and contributions to the
literature of business management, it enjoys a reputation that exceeds its modest
presence.
The firm has 16 worldwide locations spanning Europe and North America, and Far
East operations in India, Japan and China. With such a high ratio of offices to
personnel, PRTM keeps its staffers busy. In its 30th year of business, PRTM has
6,000 engagements under its belt and claims a repeat business rate of over 90 percent.
Changing of the guard
PTRM stands for Pittiglio, Rabin, Todd and McGrath, the four men who started the
company in 1976. Michael McGrath was the last holdout among the original
founders, serving as president and CEO before his retirement in July 2004. An expert
in product development and product strategy, McGrath was awarded the Product
Development & Management Associations inaugural Lifetime Achievement Award
in October 2004. Gordon Stewart now manages the companys Atlantic region
which includes its European operationswhile Michael Aghajanian oversees the
Pacific and West Coast offices.
With the old guard moving on, PRTM has done some noteworthy hiring over the past
year. Jeffrey L. Holmes, a director in PRTMs U.S. government practice based in
Washington, D.C., joined the firm in September 2005. Mr. Holmes, sporting a 20-year
career as an officer in the U.S. Army, brings with him expertise in logistics related to
government and national defense. In the same month, PRTM hired Dietmar Ostermann
as a director in its automotive practice, based in Frankfurt, Germany, and Detroit, Mich.
An A.T. Kearney vet, Ostermann headed up the firms German office, led its Detroit
automotive division and had a turn in the CEO chair. Coupled with the hiring of
Ostermann, PRTM opened a second office in Germany (Munich)a move that
signaled its commitment to compete in the global automotive market.
Acronym advances
PRTMs business is largely centered on operational strategy in the areas of product,
supply chain, customer experience and business technology innovation, as well as
PRTM
competitive benchmarkingand it has developed a number of patented business
methods to achieve these ends. PACE
, or Product And Cycle-time Excellence, is a

framework developed by PRTM in the mid-1980s to help businesses get their ideas
off the ground. The idea behind PACE is that innovation is out there, but companies
are failing to get their products to market in a timely and prepared fashion. PACE
concepts have evolved over a 20-year period; PRTM continues to utilize them
because they continue to produce results. Biotech company Affymetrix was awarded
an Outstanding Corporate Innovator award in September 2004 from the Product
Development & Management Association; the associations newsletter notes that
Affymetrix adopted PRTMs PACE framework to great success, and PRTM aided the
brainy company in getting its product to market.
Another handy acronym in PRTMs toolkit is SCOR, The Supply-Chain Operations
Reference-model. SCOR is a blueprint for describing supply chain architecture, a big
piece of PRTMs contracts. The concept was developed in collaboration with the
Supply-Chain Council and Advanced Manufacturing Research. In 2005, PRTM
directors Shoshanah Cohen and Joseph Roussel wrote a book on the subject called
Strategic Supply Chain Management: The Five Disciplines for Top Performance.
Close partners
Although the firm has 30 years of experience, PRTM does much of its business with
new technologiesPRTM counts Sun Microsystems, Inktomi, Nextel
Communications, 3Com, Texas Instruments, Amersham Pharmacia Biotech, Cisco
and the U.S. Navy among its clients. In an effort to stay on top of emergent
technology within the consulting world, PRTM signed a partnership with Agile
Software Corporation in August 2005. Agile is an enterprise software solutions
company focused on product lifecycle management. In February 2006 the
companies announced the availability of PRTM Inside, a best practice solution that
combines dashboard type controls for executives, task flow charts and two weeks
of on-site PRTM staffers, who personalize the solution.
Another group working closely with PRTM is the Performance Measurement Group.
Formed in 1998 as a PRTM subsidiary, this team provides detailed benchmarking
studies based on years of data amassed by PRTM. Ed Salley, former president of The
Salley Consulting Group, joined PRTM to run the group in March 2005. PMG
focuses its data collection on identifying performance targets, cutting costs and
targeting potential growth areas.
PRTM
Results not reports
Amidst the above-mentioned PMG group benchmark studies and PRTMs regularly
published Voice of the Customer surveys, PRTM also publishes publicly available
surveys that measure such diverse topics as product innovation and supply chain
complexity. PRTM employees have also published books, including Strategic IT
Portfolio Management: Governing Enterprise Transformation by Jeffrey Kaplan,
and Voices into Choices: Acting on the Voice of the Customer by Gary Burchill and
Christina Hepner Brodie. Thought leadership is PRTMs self-monikered
catchphrase for this plethora of research and intellectual property.
Employee satisfaction
PRTM is a regular honoree among Consulting Magazines annual ranking of the top
consulting firms to work for, and 2005 marked the fourth year in a row the company
has been in the top 10. PRTM topped the employee morale category with a 98
percent mark, and was also at the top in the meeting-client-needs category with a 64
percent approval rating. PRTM employees love the 4.5:1 ratio of employees to
partners and the six- to eight-year track to partnership. It is truly a meritocracy
where you can grow and develop as fast as you can personally accommodate, stated
PRTM Director Beth Shaw, in the October 2005 Consulting Magazine article. Three
weeks of vacation and the occasional Friday off dont hurt employee morale either.
On the downside, the Consulting Magazine rankings noted that some PRTM staffers
did bemoan having to make their own travel arrangements.
GETTING HIRED
Making the rounds
PRTM focuses on recruiting from top MBA programs including MIT, Harvard,
Stanford and Berkeley, but also considers resumes of experienced candidates from all
schools. After a campus meeting, an initial phone interview is followed by two to
three rounds of in-person interviews with as many as seven partners. One source
reveals, [The] number of interviews varies but will, at a minimum, have at least two
rounds with multiple interviews (at least three) per round plus a screening interview.
The firm notes that all candidates are interviewed by consultants of all levels.
PRTM
All about fit
Paramount to other qualifications, the firms recruiters look for candidates who will
be a natural match for the firms culture. We look for consultants who do not need
training and are primarily concerned with fit. Another source strongly affirms this
claim: We have a significant backlog of work, but we simply wont hire someone
that doesnt fit into the culture at our firm. The firms attitude is that they hire
everyone with the intention of making them a partner. Period.
As such, the typical case questions dont find their way into PRTM interviews;
instead, candidates are asked questions that provide insight into the candidate and his
or her interests. Questions to foster discussion are common, such as, What is your
understanding of supply chain, and how would you improve the supply chain of a
manufacturing company? Another consultant advises, You should be able to
clearly articulate how (and how much) you have added value during your career.
OUR SURVEY SAYS
Best-kept secret
Insiders rave about PRTMs team-oriented culture. As one employee puts it, PRTM
is a very strong, growing mid-size consulting firm with the feel of a small
entrepreneurial company. Its small size seems to make employees feel that each is
able to play a part in expanding the business. As one associate reports, The firm
runs lean (not a lot of extra staff), so everyone is involved in running the firm, while
a director notes that there is a plethora of opportunities to contribute to the firms
growth and feel like your efforts make a big difference. According to insiders,
consultants at every level are encouraged to get involved.
Colleagues also rave about their co-workers, whom they classify as bright people with
positive, uplifting attitudes. One insider simply adds, People are, for the most part,
nice. And another satisfied source has quite a list of things that keep him happy:
Collaborative culture, meritocracy, manageable egos, great work, A-list clients, good
compensation. I tell everyone we are the best-kept secret in consulting.
Open-door policy
The access to management and a high staff-to-partner ratio contribute to the firms
democratic nature and emphasis on candid communication. Another agrees: The
culture is incredibly open. I often forget the levels of the people I am talking to. Talk
PRTM
in the office tends to be more about your weekend activities than pushing for more
output, notes a junior consultant. And one source is pleased that PRTM is a flat
organization, continuing, No one pulls rank on one another, and its not a white
boys club.
Because of the open communication and interactive culture, employees give top
marks to supervisors at PRTM. From the beginning, the firm helps new hires get
acclimated to the way things work. Every associate is also assigned a responsible
director, someone who serves as a mentor and helps you throughout your career at
PRTM, reports a junior associate. And a D.C. employee boasts, All of the 10 DC
partners know me by name. It makes for a tremendous learning environment for a
junior consultant. Insiders also appreciate the fact that those in charge welcome
questions from colleagues. I have complete access to my supervisors/directors,
even with those for whom I have not worked, and feel comfortable making inquiries
(client-driven or otherwise) as I encounter the need, a manager attests.
No beach time
Associates at PRTM dont spend much time waiting around for assignments. With
55- to 60-hour workweeks as the average, staffers utilization rates remain high. An
insider comments, I have never seen the beach. However, this is also very positive
because there is plenty of work to go around. Another employee maintains that
although the hours are long, he doesnt feel that they are wasted on busywork: The
atmosphere and the results we create make the work very rewarding; I feel my time
is well spent.
When it comes to weekends, some sources claim they never work, while others spend
half of their weekends on projects. One associate explains that our policies do not
encourage weekend work and we can opt out of long-haul travel if we have genuine
family reasons, but admits that short lead time and high expectations on client
projects mean weekend work is often the norm.
Better than average
For the most part, the firms work/life balance earns high marks. In general, sources
say they are able to make room for a life outside of the job. One manager observes
that the firm is doing better than the average [firm] in consulting in this area, while
a colleague adds, PRTM does a good job of encouraging us to do the must-do work
today, but leave the less important work until tomorrow.
PRTM
Family first
Sources are quite pleased with the way family needs are respected at the firm. A
manager explains, Ultimately the firm recognizes that people are the greatest asset
and that we work to live. Therefore, the firm recognizes that, in all cases, important
family events come first. This same source relates his own experience when his
wife gave birth and the firm basically told me to take off the entire month of
December for my family. Another analyst claims, The directors set a good
example of going home at night. While youll see late night e-mails, they make it
very clear that being at home with family and having other activities is important
and they set an example of it.
Feeble on flexibility
There is no formal flexible work arrangement at the firm, so finding a balance is up
to the individual. At PRTM, you are responsible for managing work/life balance.
There is always more work to do than time to do it. Project managers and directors
will work with you but you must be proactive, advises a source. One insider
suggests that taking the initiative to balance personal life is essential for long-term
job satisfaction: [It] is always a challenge. Consulting work will consume as much
of your time as you let it. There always will be the pull to devote more time to
creating perfect strategies and solutions. But if you invest too much time and energy
to the detriment of the time you need for personal renewal, then consulting will not
be a lasting career choice.
However, not everyone at the firm agrees that a nontraditional work schedule is
attainable. One dissatisfied colleague groans, [A] flexible work arrangement is
unheard of here, which may explain why we have very few female staff consultants
with young children. And a female associate emphasizes the lack of flexible work
arrangement, which may force me to leave the firm when I start a family.
Manageable travel
Most associates at PRTM dont exactly relish the travel aspect of the job, but seem
content with the firms policy of three nights away, four nights at home. Monday
through Thursday is spent on the road, while Fridays are reserved for working at
home, which makes it livable. As a junior consultant asserts, The partners
understand the importance of only spending three nights on the road per week. Still,
associates bemoan the inevitable need to spend the majority of time out of town.
The firm gives very little notice when it comes to travel, which can make it difficult
PRTM
to keep up with personal life commitments, complains one source. A colleague
comments that travel is tough, no matter what, but part of the game, and admits,
In my experience thus far, PRTM has been reasonable about being flexiblewhen
you have a reason to need to be home.
Employees indicate that travel schedules depend on the particular assignment, and
some are lucky enough to be staffed on local engagements. According to one insider,
If the client is a local client (requiring no travel), it is much easier to balance work
and life. If it is a travel projectand depending on the distance and inefficiency of
the travelthere is an inherent imbalance to the lifestyle.
Frugality first
According to sources, the real downside to travel at the firm isnt the frequency, but
the lack of a fat expense account. Rants one insider: The worst part of our travel
policy is that were cheap! We have no corporate travel office and each have to take
care of making our own travel arrangements. We are required to book economy even
when taking trans-Atlantic or trans-Pacific flights that are more than eight hours.
Another consultant offers a somewhat more somber message. In his words, the firm
needs to tone down the message of frugality first. I see the resistance to spend
money on some things that dont have immediately tangible results as providing a
glass ceiling on the firms upward capabilities. Employees also grumble about the
conservative hotel rate limit imposed upon them, and being expected to share
resources like rental cars.
Industry days
Insiders say that 95 percent of training is on the job, though there has been a
recent resurgence of formal trainings in the offices every other Friday, and the online
course catalog is very extensive, claims an analyst. ABoston-based consultant also
acknowledges some formal training opportunities, recalling the firms industry
days held every six months, where you go to a location and have training all day
long that is relevant to your industry.
Learn by observing
Though there isnt a lot of formal training at the firm, insiders feel that PRTM is a
good learning environment. As one associate exclaims, You cant learn consulting
by sitting in a class! Other sources say they benefit most from the daily interaction
with partners that takes place in small teams of two to four people. Project directors
PRTM
(partners) are more mentors than generals. Thats a big difference, offers a source,
while another agrees, saying, This is absolutely an enhancement to the training and
professional development processes, and allows consultants to develop formal and
(even more importantly) informal mentoring relationships. Another insider
maintains that this is what separates PRTM from other firms: The strength of the
firms training remains the interactions between partners and consultants.
Performance for progression
PRTMs promotion policy can best be described as personalized. A manager
clarifies, [It] is not strictly up-or-out. Consultants advance based on their ability to
demonstrate growth in their own skills and capabilities. The rate of promotion is
solely dependent on the individuals performance. Generally, associates advance to
the next level every two to three years but, as one analyst explains, There are many
examples that suggest that associates become managers in two-and-a-half years or
less, and can make it to director (partner) in seven years. One junior analyst states,
The directors allow everyone to take as much responsibility as he thinks he can
handle. And another source echoes, It all depends on you and your goals, and the
firm supports you in your development efforts.
Median money
The firm receives middle-of-the-road reviews when it comes to satisfaction with
compensation. Some insiders reflect positively on PRTMs compensation in relation
to other firms. We are pretty close to other consulting firms, says one, and another
adds that the firm is very competitive in pay, especially when considering the
work/life balance. One source goes so far as to document this claim: When you
look at salary surveys from Consulting Magazine (January/February 2006 issue, page
46), our consultants fall into the lower end of the salary range, though we are
competitive with regard to median salary.
Although some PRTM employees feel their salary is on par with other firms, a
number of sources argue that compensation in the lower ranks just doesnt match up.
Based on other consulting firms, [PRTM] compensation at the lower levels is
notably lower, claims an insider. Another consultant agrees, stating, Directors are
well compensated, but it gets quickly diluted the further down the ranks you go.
PRTM
Belittling bonuses
Across the board, PRTMers are down on the firms bonuses. One explains that
salaries are probably within average range, [but] the bonuses are evidently a bit
lower. And while some consultants admit that bonuses should be improved, one
unhappy consultant offers a tangible method by which to achieve this: The
compensation at the lower levels is comparable salary-wise to other firms, but the
bonuses here are a bit lower. This could be rectified fairly easily if the directors took
home less than the purported million-plus that they currently take.
Others are less cranky when it comes to bonuses. A source reports that the bonus
ranges from five to 10 percent of your salary and is received every six months.
Most associates dont report having received a signing bonus, but one notes, I did
receive a two-year forgivable loan of $18,000 in 2004 when I joined.
Mix and mingle
PRTM is liberal when it comes to providing opportunities for colleagues to mingle in
the workplace. One insider boasts, They organize regular social events like dinners,
picnics, parties [and] retreats, and another adds Christmas parties with the
families to the list. Employees also get revved up for the company-wide retreat:
This year they are taking everyone on a four-day all-inclusive retreat to celebrate the
30th anniversary of the firm. PRTM also gives out free sodas, juices and Red Bull
in the offices and, in some locations, a case of wine every Christmas.
Employees also report being satisfied with the great medical plan and yearly profit
sharing put into a 401(k) account. And though associates have taken issue with
booking their own travel, they dont seem to mind traveling to interesting work
locations around Europe and earning their own frequent flier milesas one admits,
The perks (rewards programs) from that are nice. As for the offices themselves,
the one that stands out is the fabulous new office in Washington, D.C., according
to a source, who calls it nicely decked out.
Women on board
According to insiders, PRTM does well in the gender diversity category. An
associate reports, Some industry groups have more women than others (for instance,
life sciences is fairly evenly distributed, but communications is very male
dominated). Another urges that we actively encourage diversity, and the ratio of
women reflects the average of the high-tech industries we serve.
PRTM
While there are more men dominating the partnership level, this might be a matter of
individual choice rather than firm practice, according to a source who claims, There are
very few female partners compared to male partners, but I suspect this is more because
of women opting out due to the challenges of work/life/travel balance, rather than the
firms position on hiring, promoting and mentoring women in the firm. But women
arent completely absent from upper levels. As a colleague observes, Several partners
are female, adding that They are also among the most successful. Still, there is room
to improve: Although my company is diligent at recruiting exceptional talent across a
variety of criteria, I would like to see more visible female leadership (i.e., directors)
throughout my regional office, one manager states.
Global representation
Sources claim minority equity is one of the firms strengths. From new hires to
directors, employees represent all races [and] genders, remarks a source. Another
concurs: [Diversity is] truly a strength. My current project team has folks from all
over the globe in my practice area. Depending on the schools where the firm
recruits, there may be a higher percentage of whites and East Indians, but one
analyst notes that in his practice, minorities and women comprise more than 40
percent of the practice.
The firm also gets high marks on its diversity with respect to gays and lesbians.
Though no specific outreach programs are mentioned, a source confirms that there
is absolutely no sense of discrimination against any group of individuals, be it gender,
race or sexual orientation. The diversity is reflected in the firms partnership.
Strengthening its efforts
Quite a few PRTM associates are involved in grassroots efforts like food and
clothing drives and donations to shelters in their local communities, though the firm
itself doesnt promote any community initiatives. We are encouraged to engage in
extracurricular activities of our choice. The firm doesnt endorse any specific
organization, comments a source. One consultant notes that individuals in his office
are actively involved in their communities: I regularly get e-mails when folks are
doing community service/charity events, asking if I would like to participate, and
another remarks, I did receive enthusiastic participation when I did a fundraiser for
SPCA last year.
Recently there has been a push to make those endeavors firmwide. A Boston
associate says, PRTM is currently kicking off the Make an Impact program to
PRTM
formalize and support our community involvement. This program will cover
initiatives like the Walk for Hunger or cancer research organizations that employees
have been involved with in the past.
PRTM
735 Emerson Street
Palo Alto, CA 94301
Phone: (650) 475-4400
Fax: (650) 475-4401
www.sdg.com
LOCATIONS
Palo Alto, CA (HQ)
Boston, MA
Houston, TX
New York, NY
London
Mumbai (joint venture)
Tokyo (joint venture)
PRACTICE AREAS
Energy & Chemicals
Life Sciences
Technology & Communications
THE STATS
CEO: Robin Arnold
2006 Employees: 100
2005 Employees: 130
UPPERS
Free-market staffing system
allows SDGers to choose the
projects they are interested in
working on rather than being
assigned to projects
Strong reputation in the industry
Flexible career managementyou
can do just about anything that
makes sense
Approaches problems differently
from others
DOWNERS
Hours have gotten longer and
projects shorter
Narrow focus (decision science)
Limited resources for information
gathering, internal development
Promotion is fuzzy and political
EMPLOYMENT CONTACT
www.sdg.com/home.nsf/sdg/Careers
Home
Strategic Decisions Group
V A U L T
P R E S T I G E
R A N K I N G
44
THE BUZZ
Stat freaks
Good niche player in energy
Might be getting too esoteric
Limited
THE SCOOP
Seven deadly sins
AStrategic Decisions Group January 2005 briefing relayed the following message to
executives of companies that let down their shareholders: When organizations fail
to implement strategy that maximizes value one sees the same behavior, or sins,
occur over and over. These sins include delusion, pride, incognizance, indolence,
wimpiness, oversimplification and groupthink. Such tough talk apparently goes
over well with CEOs, as quite a few Fortune 500 firms lean on SDG for advice in
formulating business strategies. Small, California-based SDG counts Dow
Chemical, DuPont, Bayer, British Petroleum, Chevron, Pfizer and Philips Electronics
as stars on its roster of clients. With close to 90 percent of the firms revenue
stemming from repeat business, its fairly certain that SDG must be doing something
right.
Stanford strategists
SDG was founded in 1981 in Menlo Park, but its California roots and its core
philosophies extend even further into the past. It all began in 1964, when Ronald A.
Howard, who left MIT to become a professor in the Department of Engineering-
Economic Systems at Stanford University, first defined the profession of decision
analysis. The decision analysis he invented is a statistical method used for figuring
out various outcomes by determining the probabilities of each option available at
each point where a decision can be made. Howard has been studying methods and
tools that facilitate decision making and developed several formulas, such as the
Value of Imperfect Information, that measures the reliability of data on which
decisions are based. Much of the work was also centered on graphical
representations that helped to automate and take some guesswork out of decision
making, breaking the process down into component parts and comprehensively
listing all options available. After accumulating 17 years of research, Howard and
others involved with SRI International (formerly Stanford Research Institute)
founded SDG, just a few miles from the Stanford campus. Today, the firms ties to
Stanford remain strong, indicated most recently with the February 2006
announcement that SDG is partnering with the university to provide a new certificate
program in strategic decision and risk management.
Strategi c Decisions Group
The approach
SDG has remained focused on strategy and decision making since its founding, and
has specialists in a variety of industry fields, including pharmaceuticals,
biotechnology, energy, software, real estate and financial services. Of the
aforementioned seven sins, SDG counts incognizance as its clients top offense.
Translated, this means that companies often suffer from a lack of information, or
simply misinterpret the data they do have as they traipse their way through bad
business decisions. Across all the industries it serves, SDG attempts to remedy this
situation.
SDG projects are collaborative, involving corporate decision-makers, line
executives, business and technical experts, and cross-functional teams, and SDG
staffers look to realign and reprioritize clients business strategythis includes
selling off low-profit ventures, optimizing investments, carefully directing research
and development, entering new markets and applying new technologies. Throughout
all of this, SDG emphasizes the financial bottom line, applying brainy leading-edge
decision theory to uncover the proper path for companies to take so as to maximize
shareholder value.
Branching out, a little
SDG is a niche, boutique firm with a stable history, but the company has made small
moves here and there to keep itself on top of the changing times. It still operates a
joint office in Mumbai with ECS Limited (formerly Eicher Consultancy Services), an
India-based management consulting firm, which has been open for business since
1998, and in February 2003 the firm partnered with Mizuho Securities to form
Industrial Decisions Inc. in Tokyo. SDGs latest movein October 2004was
entering a joint marketing and staffing agreement with Synaptic Decisions, a
Houston-based firm founded in 2004 with expertise in improving margins on
company contracts and assessing risk more accurately.
Train, teach, publish
SDG puts new hires through the paces with a three-week training and orientation
program. This includes two weeks of a case study that mimics a typical project, with
the final exam being a presentation to a board of senior SDG partners.
Clients are also not exempt from training, as SDG offers numerous education courses
that range in duration from one-day events to two-week long workshops. These
sessions focus on decision-making skills and cover such topics as quantifying
uncertainty, generating alternative solutions and communicating results. SDG also
publishes in a variety of industry magazines. One of the most recent articles
Pharmas Next Modelwritten by SDG consultants Jerry Cacciotti and Bill Shew,
appeared in Pharmaceutical Executive in March 2006. One April 2005 article in
Financier Worldwide reviews the top 10 mistakes made by those who suffered from
the Nasdaq bubble burst of 2000. SDG staffers also offer up some of their findings
in the occasional book; if youre interested in their strategy, you may want to check
out their latest (2003) release, Solving the Corporate Value Enigma: A System to
Unlock Shareholder Value, by Raymond L Manganelli and Brian W. Hagen.
GETTING HIRED
Looking for fit
SDG looks for candidates from top academic institutions, though it doesnt do a lot
of active recruiting (focusing mainly on Dartmouth, Stanford and INSEAD). Hires
generally come with prestigious degrees from other colleges as well, such as MIT,
Berkeley, Rice and Harvard. The interview process is pretty par for the course.
Heres the inside scoop straight from a senior staffer: We have three rounds of
interviews. Asuccessful candidate will have had seven interviews by the end, and all
but two of them will have been fit interviews. Cultural fit is the most important thing
for us. In the second round, PhDs and MBAs will receive both a standard business
case interview plus an analytical case interview that is significantly more challenging
in terms of problem structuring and quantitative analysis.
Other SDG employees agree that fit is really crucial when the firm looks at new hires.
According to one analyst, Fit is very important at SDG. It seems like SDG shies away
from hiring the run-of-the-mill econ or business undergrads. SDG likes people who
enjoy thinking outside of the box and people who the interviewers feel could one day
reach the partner level. The hiring of junior staff is looked at from a long-term
perspective, not a Will I be able to work this person for two years until he/she is burned
out? perspective. The source also adds that SDGs hiring is quite selective given that
it is a mid-sized firm and only looks to hire about zero to four undergrads each year.
Insiders offer several pointers on how to impress interviewers. First, be prepared to
educate. Several consultants report posing a simple teach me something test, asking
candidates to explain anything under the sun. Second, a major point in your favor
would be to show interest in SDG specifically; a principal at the firm tells us, To be
successful, it is important to help us understand why you are interested in our firm in
particular.
OUR SURVEY SAYS
Support system
SDG staffers are pretty high on their office culturea majority of consultants report
that the attitude of co-workers makes coming to work a pleasure. Flexibility and an
eagerness to help also top the list of qualities that SDG consultants appreciate. One
source says, The culture is great, supportive and open. It is a very relaxed, flexible
working environment. No one checks up on you, everyone just knows what has to
be done. We also have open staffing, which gives consultants the flexibility to work
in areas of their choosing from time to time. An analyst explains, The culture of
SDG is collegial and cooperative. All of the junior-level staff are extremely
supportive of each other. Teamwork is emphasized (not just talked about), especially
on projects, and competition is virtually nonexistent. The quality of your work
always trumps politics and other minutiae. And one recent hire suggests that its a
friendly and appreciative environment. [It has a] relatively flat structure, and
everybody is accessible, willing to listen or to help. Looking for and giving learning
opportunities is highly promoted.
There are some rumblings regarding the stiffness and formality of the culture,
though. One consultant says the work atmosphere can be very professional, to the
point of stifling sometimes, while an insider high up on the totem pole notes, One
downside is that we can be very bad about formal policieswe only use them when
necessary, and sometimes are overly formal about it. But to keep the focus on the
bigger picture, its safe to say that SDG employees dont run into these policies too
often and, in the majority of cases, SDG employees report that they are quite happy
with their corporate culture.
Tough
Averaging about 60 work hours per week and dealing with the lulls and rushes of
work during engagements makes balancing life and work a tough proposition for
SDG consultants. One weary staffer claims, There is no way to separate work from
the rest of your life. No matter how much you try, work will invade your weekends
and your family life. AWharton grad new to the industry who also feels the crunch
says, Its always a struggle. You have to accept that weekdays will be full day/full
evening dedicated to work.
but flexible
Others tell a different story. Despite this tough workload, many insiders report that
flexible managers greatly ease the burden by giving them greater autonomy over their
lives. Asenior staffer explains that SDG supports an extremely flexible work style.
After several days of traveling, folks often work at home to balance home life with
the work day. Taking time out during the day for a doctors appointment is never an
issuepartners and senior managers know that the work will get done regardless,
and will call it out if the work is insufficient. Co-workers agree with this vet, but
many point out that its up to the individual consultant to strike his own balance.
Management will listen and often be supportive of work/life balance, but you have to
ask for it, were told. A top dog at the company states, Each person chooses how
they want to approach balance, and they have the freedom to choose projects and
work styles (within a reasonable set) to meet those personal needs. If you want to
work out every morning, or make a class on Thursday nights, or whatever else you
want to do, you can make it work. However, you have to set the goals and find a way
to make them happen.
SDG employees who have already figured this out seem quite satisfied in their
positions. One family man says, I use the flexibility of the project world to my
familys advantage with travel and many mini vacations. And on the other end of
the social spectrum, a young single consultant tells us, My work and life balance is
very good. When I am on project work I travel quite a bit and I do enjoy the non-
deterministic style of work I do. I certainly manage to take enough time off to relax.
Acolleague provides another example of SDGs willingness to go the extra mile for
employees who take charge of their own work/life balance: I am currently taking a
three-month sabbatical to take some courses and recharge a bit. There was no
question about me doing this, and I was able to manage my client relationships and
project responsibilities with the partner team. I designed what I wanted to do, and
how that would be accomplished with minimal effect on the firm and on my clients,
and everyone chipped in to make it work. There has been no push backquite the
contrary, everyone has been very encouraging.
Suitcases on the ready
For most consultants at SDG, travel is a given, though travel demands depend on the
individuals expertise and which projects he/she chooses to work on, sources say. A
principal at the firm explains, Our work is very collaborative, and therefore we
spend a fair amount of time on the client site. Some projects lend themselves to
remote communication, some do not. It varies a great deal, but an average of three
days per week is about right. East Coast-based consultants generally only travel on
the East Coast or Midwest, so its pretty easy to manage. Day trips are possible if you
work at it. And again, because of the autonomy granted at SDG, staffers have some
control over their own travel demands. One senior staffer remarks, Travel varies
greatly by the project, but because you have some control over which projects youre
on, you can manage this sometimes.
Here are two different viewpoints to give you an idea of the range of possibilities. A
Boston-based consultant tells us, Because my travel has been minimal, I have been
able to maintain activities outside of work. There are many weeks during the year that
I am staffed on a client strategy engagement but do not travel there at all. We only go
as necessary. But a counterpart in New York claims that travel is extensive, but that
is the nature of our industry. You must be face-to-face to build client relationships.
Revolving offices
The firm has several offices and although each is quite different, SDG staffers review
each office in a similar manner. In general, they say the offices are in good locations,
but the insides could be nicer. An analyst tells us, The firms offices are very
different. The Boston office is generally considered the nicest and most spacious
(given the amount of employees based there) while plans are in the works to move
the space-constrained New York office to a nicer, larger location. And reviews of
the New York office reflect the need for these changes, garnering the weakest marks
of the bunch. A senior firm member there says, Most offices are good, but the
physical office in New York City is terrible. The culture and people are great, but the
actual office is quite bad, and a co-worker insists that the offices could be a little
higher-end regarding furnishings. Consultants based in London may fare a bit
better. Heres the report from across the pond: Great location; medium facilities.
Most people have an individual office (its not open plan).
Up (or out) atop the ladder
As one insider explains, SDG is a meritocracy. Consultants choose to drive their
careers at a pace that accommodates their life priorities and professional development
objectives. But, as additional sources report, meritocracy is the story only for
rookies. Another analyst gives us this more detailed glimpse at the career track for
young folk: There is no official up-our-out policy at the junior levels. Most junior
staff stay with the firm two to four years before moving on. Promotion to associate
consultant from business analyst is usually possible after two to three years. Once
you get beyond these junior levels, things change. A senior staffer tells us, We are
implementing an up-or-out policy at the senior consultant and senior engagement
manager levels. While we will only hire MBAs or PhDs whom we expect would
make a great SDG partner, not all of them will make it through. By all reports, this
up-or-out policy has been instituted and continues all the way through from the senior
consultant level to partner.
Bonus babies
Consultants at SDG seem content with their salaries, though there are hints that the firm
is a little stingier than the big boys. But employees seem to take this in stride,
recognizing the differences between their company and others. We pay less than the
other leading strategy firms because (1) we are less pyramidal in structure, which
lowers margins and decreases payouts to employees, and (2) we make explicit trade-
offs about quality of work and quality of life that are worth a small discount to the
major consulting firms pay, says one employee. Promotions helpone staffer with
seven years at the firm claims, Salary tripled since I started as an analyst. On the
whole, though, consultants at SDG seem much more concerned about their bonuses
than their salaries. Says one analyst, The firms financial health has been subpar
recently and, as a result, bonus payments are being made in arrears. This seems to be
frustrating some of the more senior consultants who rely on bonuses for a larger portion
of their total yearly compensation. SDG explains that bonus allocations depend on a
consultants level in the firm and, at senior levels, are tied to performance.
Training talk
Sources are quite enthusiastic about training programs at their firm. One insider
reports, There is very well-structured formal training to acquire the core
competencies of the firm, but there is also a culture of constant training, mentoring
and mutual learning. This is a place where you cannot complain of not having
opportunities to learn! A co-worker recounts his first few weeks at the company:
We had a one-month official training upon joining SDG, and were then assigned to
development coaches who are partners in ones home office. People meet with their
coaches regularly to go over their development plan and progress. Acolleague notes
that during the worldwide staff orientation for new hires, held at one of the SDG
offices, New staff members are acquainted with the firm, its history, project work,
organizational model, etc.
Training opportunities are also given to experienced employees. An analyst explains
that SDG offers many official training courses through its executive education arm.
Many of the courses involve both SDGers and clients. SDG encourages its
employees to attend the courses that are appropriate for the individual employees
level. The same SDG partner, also a professor at Kellogg B-school, teaches most of
the courses. He is an engaging and experienced teacher and always does his best to
ensure that the courses are enjoyable. Some of the courses are quite rigorous while
others are 8 a.m. to 6 p.m. with no homework.
An account all your own
When talking perks, all SDG consultants mention one thing in particular: their
Professional Development Account of tax-free dollars put at each employees
disposal, which allows workers to be reimbursed for non-SDG courses, periodical
subscriptions, books, cell phone, etc. The firm notes that the amount paid into the
PD Account varies by position. In addition, many employees enjoy the discounted
gym membership. One analyst states, The firm will also cover half of your gym
membership, up to $400 per year. All of the perks from traveling (hotel points, airline
miles) accrue to your personal accounts. Also, since you are not given a corporate
credit card, you can use personal credit cards to pay for business expenses and thus
receive additional mileage or hotel points. And for those who cant turn down
freebies, be advised that there are bottled drinks in the office kitchens and
occasional office lunches, which dont hurt either.
Come on in, stay a while
Insiders agree that there are plenty of females in the lower levels at SDG, but that the
firm could use a few more women in management. One manager notes, There does
not seem to be a bias in hiringthe proportion of women in lower levels is
reasonable and growing. This pattern clearly changes as you go up, with women
being a progressively lower proportion and women with kids a rarity! Still, I dont
think its a firm deficiency in terms of promoting or mentoring women, but rather a
consequence of the demands of consulting life. And another bigwig opines,
Perhaps due to the relatively high travel requirements, we have a hard time retaining
women beyond four to five years. We do not have a formal mentoring program for
women at this time, though we are considering setting one up. Informal mentoring
is common. The women themselves arent complaining about their lot, theyd just
like to see more females piloting the corporation. Heres a thought straight from one
female staffer: The firm is very friendly towards women and I dont feel we are
treated any differently. Womens special needs such as maternity leave are taken
seriously, although I think women are underrepresented at the partner level.
As for the presence of minorities in the office, an analyst remarks, There is a
noticeable lack of African-American and Latino consultants. Many employees
support this observation and, despite the lack of these two ethnic groups, numerous
employees report a decent Asian contingent. One consultant says, We have very
strong Asian representation, however could improve in the hiring of black
consultantsthe issue is lack of candidates, not that they do not make it through.
Open and proud
One avowed heterosexual claims that SDG is definitely the firm for gays, lesbians
and bisexuals. Colleagues agree that the company is exceedingly open. One source
points out that there are several gay senior managers and partners at the firm, and
this sets the tone for what kind of environment we have in terms of sexual
orientation. And a newbie reports, Sexuality is not an issue in the workplace. The
firm treats everybody equally from my vantage point.
Give as you wish
When it comes to giving back to the community, insiders feel that theyre mostly on
their own. One insider states that theres no formal sponsorship. Individuals in each
office frequently put together programs. Christmas food and clothing drives are
reported to occur during the holidays. And despite testimonies to the contrary, there
is one formal program that the firm pushes: the Decision Education Foundation,
founded by SDG. A consultant explains that this program fosters rational decision
making at the junior high and high school levels.
244 Madison Avenue, Fourth Floor
New York, NY 10016
Phone: (646) 479-7127
www.occstrategy.com
LOCATIONS
London, UK (Global HQ)
San Francisco, CA
Abu Dhabi
Brussels
Dsseldorf
Hamburg
Mumbai
Paris
Rotterdam
Shanghai
PRACTICE AREAS
Consumer Goods
Financial & Professional Services
Industry & Utilities
Private Equity
Retail & Distribution
Technology, Media & Telecom
Travel, Transport & Logistics
THE STATS
Worldwide Managing Partner:
Michael Jary
2006 Employees: 300
UPPERS
The company size results in a
good culture and respect within the
firm
The people are smart and
switched on
Global presence and
opportunities
Much exposure to directors and
senior principals
DOWNERS
Sometimes stuffy
Something as simple as expense
reimbursement has not been up to
par
Constraints of a smaller firm
The brand name OC&C still has
to become more established
EMPLOYMENT CONTACT
www.occstrategy.com/recruiting
OC&C Strategy Consultants
V A U L T
P R E S T I G E
R A N K I N G
45
THE BUZZ
Small, dynamic firm
Highly analytical and quantitative
Disorganized
Arrogant
THE SCOOP
Out with Outram
OC&C is a strategy oriented consulting firm with a focus on retail, consumer
industries, media and entertainment. Founded in 1987 by Chris Outram, the firm
opened its first office in London. After 18 years serving as OC&Cs chairman,
Outram stepped down in February 2005, making room for fresher blood and letting
Michael Jary (only 41 at the time) take the helm. The general ethos of the firm hasnt
changed much in the interimOC&C is still dedicated to maintaining its modus
operandi as a business strategist.
OC&C looks to provide creative and practical ideas that come from a keen
perspective on larger business issues, rather than a detailed exhumation of nuts and
bolts data. Engagements are concentrated on increasing shareholder value but, to
do so, OC&C tries to differentiate itself slightly by thinking outside the box, and
coupling this with a cutthroat mentality, honing in on how its clients can win their
competitive battles.
The most notable change at OC&C over the years has been its increasingly global
presence. The firm has fully staffed offices across Western Europe and both coasts
of the United States. Offerings are the same at all locations and include product and
channel strategy, organizational and operational optimization, and mergers and
acquisitions support. In addition, OC&C does do a brisk business with private equity,
telecommunications and technology companies, as well as travel companies and
financial services firms.
Global grocer
OC&C has consultants specializing in all of the aforementioned range of industries,
but it is clear that the firm has especially deep roots in the consumer goods
categoryspecifically in the food and beverage sector. Product pricing, whether to
target marketing campaigns towards the luxury or discount consumer, and how to
compete against imports are all typical issues faced in OC&C engagements. The firm
also plays an active and public role in the industry, publishing the annual Grocer
Index, a study that ranks firms in the food industry and looks to summarize trends in
the marketplace. 2005 marked the 19th consecutive year OC&C has conducted the
study.
OC&C Strategy Consul tants
The firm has large clients in the food and beverage industry, including inBev and
Cadbury-Schweppes, but it also pays attention to the little guys. In April 2003,
BusinessWeek discovered a surreal scenario after the U.S.-led Iraq invasion: Demand
for Coca-Cola was high, but so was anti-American sentimenthence the rise of
Arab-oriented knock-offs like Mecca Cola, Muslim-Up and the popular Zam-Zam
Cola. OC&C was right there to offer business advice to would-be investors, seeing
an explosive short-term growth for the market, but warning that the future was dim
for these upstarts.
Going Dutch
According to an April 2005 Consulting News article, OC&C believes the strategy
consulting market is booming and plans to roll out a program to add up to 60 new
staffers. Ironically, in another Consulting News article written just weeks later,
OC&C is listed as a participant in an industry survey that demonstrates that staff
retention amidst strategy consulting firms is at an all-time low, partly due to a
buoyant market and headhunter encouragement. Apparently, decent wages and job-
security are not sufficient to keep employees happy. If thats true, OC&C may have
a leg up on the competition for top talent. In a May 2005 article of Londons
Financial Times, the OC&C Netherlands office is included on the list of best
European workplaces. In order to create a positive environment, the article
explained, Rotterdam staffers are strongly encouraged to take biannual, company
sponsored ski trips with their spouse or significant other. The office also holds a
deluxe Christmas dinner to which employees are allowed to invite eight guests. Now
thats a party!
Mingling session
OC&C offers an annual international strategy workshop for bright undergraduate
business students. The workshop is both a showcase for OC&Cs approach and a
recruiting session. There is an application and selection process to join the
workshop. Invitees also go through a real-life case study under the watchful eye of
OC&C senior staff and the client. The last location for the event was Barcelona, and
between company sponsored wine tastings and tapas outings, some attendees
managed to stay clear-minded enough to impress the hosting firm, snagging offers for
positions in European offices.
GETTING HIRED
Top schools
OC&C recruits at a few U.S. schools, including UC Berkeley, Wharton, Columbia
and Caltech, though the majority of the firms recruiting takes place at top European
campuses: Oxford, Cambridge, INSEAD, LBS, University of London and University
College Dublin. The firm is quite choosy when it comes to candidates straight out of
schoolas one source notes, The selection process at entry-level is quite stringent.
Battery of tests
The interview process consists of two rounds, with several fit and case interviews in
each. An insider says candidates can expect verbal and numerical reasoning tests,
as well as a combination of case studies (with a focus on quant skills) and questions
about personal achievement. One consultant clarifies the process: There is a
numeracy competence test lasting 35 minutes, two 30-minute interviews in the first
round and two 45-minute interviews in the second round.
According to sources, there are two kinds of case interviews givenone to be solved
with a group, and one on your own. One associate explains, Group cases are given
occasionally in the final round to gauge group dynamics. A Los Angeles-based
source notes another kind of task that may be given during an interview at his office:
The candidate is given a specific strategy question, and we provide a long
PowerPoint deck with no headers, but [with] data. The candidate has to put together
and present a story selecting the slides he/she considers relevant.
OUR SURVEY SAYS
Down-to-earth
OC&C staffers proudly claim that it would be hard to find a friendlier place to work.
Its the most open, honest and friendly consultancy I know or have worked for,
without a doubt, boasts a senior consultant. Another source raves, Most people at
our firm posses the right combination of intelligence, entrepreneurship, cordiality and
sense of humor. People here are very bright and down-to-earth. We are not only
colleagues but also friends with extremely interesting backgrounds. A New York
consultant adds, Its an entrepreneurial team; a great group of very smart people who
are also down to earth. If you ask most insiders, the culture seems to contain just
the right mix: The firm manages to combine a relaxed and formal atmosphere,
avoiding stifling hierarchy and enhancing easy team communications, whilst
remaining professional enough to make you respect your colleagues, an insider
states.
Ministry of Fun
OC&Cs small, friendly, collegiate culture promotes socializing outside of work,
and even has a designated group to plan events. There is a strong social culture and
employees regularly socialize outside workthis does, however, lead to some
pressure to take part. The Ministry of Fun committee frequently organizes events for
the company, and there are other community activities set up by individuals, reports
one colleague. There is no lack of occasion to socialize at this firm, according to a
consultant who raves, Its a fantastic culturea collegiate atmosphere among peers
evidenced by company-sponsored events such as year-end group dinners. Also, there
are plenty of opportunities to mix work with pleasure, such as after work drinks on
Fridays and parties to celebrate the annual bonus. Another insider agrees that co-
workers are a fun bunch of people to have a chat with or drink after work.
Approachable management
Insiders give positive reviews of supervisors, who seem to be easily accessible. One
Londoner claims, The firm has an extremely open management structure. The
newest members of the firm have an open door to the leading directors about any
issues, be it work, personal, etc. A New York consultant has similar things to say:
Directors are approachable and generally get involved in projects, providing good
opportunity to learn from senior staff. The relatively flat structure at the firm also
means that even consultants at lower levels get to take on major projects. There are
only five levels: associate consultant, consultant, manager, associate director and
director. That means more exposure and more responsibility for junior staff, claims
a consultant. Even brand new consultants get plenty of chances to interact with client
management, according to one rookie who shares, I have had CEO-level exposure
from day one.
A long-hours culture
Consultants dont deny the fact that hours are intense at OC&C, but sources say that
given the industry, the workload is not as bad as it could be. The consulting job is
demanding in terms of effort and working hoursbut our company is moderate
compared to industry examples, a staffer states. Consultants mention that the hours
are widely variable, since they change with every engagement. Explains one
associate, It depends on the type of project. Working hours range from 45 to 70 per
week, with an average of approximately 55 hours per week. Most sources say
working 50 to 60 hours a week is about average.
It is a long-hours culture, an insider claims, adding that there have been some
good recent efforts over the last year to bring this down. A colleague reiterates that
the firm has taken note and is trying to lessen the burden: OC&C has made a real
effort to reduce the numbers of hours that people work. Hours are now closely
monitored, and directors and job managers get called to account for their teams
hours. Also, there is a strict toil policy, where days are awarded if you work two
consecutive weeks of excessive hours. This system, in addition to flexible work
arrangements, seems to keep consultants happy with hours overall. Generally,
offers a manager, the firm is quite flexible about when the hours are worked,
enabling people to trade off later evenings against weekends/particular out-of-work
engagements.
Flexibility with seniority
Anumber of sources claim that although hours are variable, over time they even out.
It is extremely variable, some weeks are quiet and some are extraordinarily busy.
You have to be prepared to put in long hours when required, says a manager. They
are very flexible in terms of working hours, with efforts made to accommodate non-
work commitments, another consultant chimes in. Also, with seniority comes a
little more leeway with hours, were told. Initially it can be tough, as we work with
tight deadlines and when you are new, you need to prove that you deserve the job
managers trust, explains an insider, adding, Once gained, you get much more
flexibility: Rather than checking in with your manager every day, it will change to
every week (or similar)which makes it far easier to juggle work and social
commitments.
Gone but not for long
Travel, sources say, is bearablemost of the time. From a single persons
perspective, you simply get used to the travel schedule and the perks. You typically
take the first flight on Monday and the early evening flight on Thursday. Neither our
firm nor our clients expect people to travel during the weekends, and that is a big
plus, explains a West Coast source. Additionally, after a project away from the
home office, the firm tries to staff you locally so that you can have an easy commute
for a while, the source continues. Consultants get to spend some time in the home
office and appreciate that they are not sent away for four out of the five-day
working week. One insider suggests, Typically its structured to have one or two
days a week in the officegreat for not disconnecting with office life/friends. The
firm notes that project managers make a real effort to make sure consultants get back
to the office for at least one day a week, usually on Friday.
International assignments
Some OC&C sources arent affected by travel at all if they are lucky enough to have
clients close by. Aconsultant in New York reports, I have been staffed locally thus
far, though travel anywhere in the country/world is possible. For those who do have
their sights set on overseas journeys, the firm offers the opportunity to work in other
countries. [There is] cross-border staffing; in other words, explicit encouragement
to take international assignments. Depending on who you are, this can or cannot be
considered a perk, explains a San Francisco insider.
Shaky balance
Reports on work/life balance are somewhat inconsistent, depending on who you talk
to. A consultant in New York claims that although there is a lot of travel, it is easy
to be flexible around your personal schedule and to work from home when need be.
Aco-worker has figured out a system that works for him: As long as your life is as
much a priority as your career, you will find time to do all the things you like without
dropping any balls at work. Sure, you may need to make some sacrifices such as
waking up earlier to go to the gym, going to the movies at 10 p.m. or having French
lessons on Saturdays; but these are only minor adjustments. The harder I work, the
more I want to (and can) accomplish in my free time. And in my opinion, that is a
very fulfilling way of living.
Still, others claim that demands of the job are such that its hard to find time for much
else. I have not had to work weekends yet, but I do find it very difficult to plan any
personal activities (even dinner with my wife) during the week. This is a departure
from my prior experiences, offers an insider. And a colleague moans, Multiple
projects, business development and constant travel leave little time for personal life,
while another source claims that encouragement in this area is limited, partly as a
result of the firms small size, and partly as a result of its strong work ethic.
Well-rounded training
Sources say that training is a strong point at OC&C. The firm has a formal training
program already in place. A lot of time is devoted to associate consultant training,
and the quality is very high indeedthis is one of OC&Cs key strengths over its
competition. Within five months, you will experience a one-week intro to consulting
course, a one-week basic finance course and several half-day sessions covering
miscellaneous associate consultant skills, a source explains. Along with official
training, unofficial training takes place on a daily basis, according to a consultant
who suggests that there is a combination of both. Formal training is generally good
and relevant to the job. The supportive culture of the firm makes it a great place to
learn on the jobpeople are always willing to answer questions. One insider
reveals that he prefers the official training over on-the-job mentoring: Im quite
happy with the formal training receivedit has exceeded my expectations. The
informal training has been spotty at best, and pretty much a sink-or-swim approach.
But another source has the opposing view, and believes that consultants get more out
of informal learning: There are specific training courses but, as with most consulting
firms, you really learn by doing.
Stateside, staffers say firmwide training takes place once a year, and most other
training is informal and on-the-job, a source in Los Angeles reports. Again, U.S.-
based training is just starting. Mostly its on-the-job training, confirms a source.
Proceed with speed
Advancement at OC&C follows a straightforward path. A Londoner suggests that
clear feedback and development give all a chance to succeed. Most new hires
spend two to three years as an associate consultant before promotion to consultant.
Acolleague remarks, You would expect to be promoted to consultant in two or three
years, then to manager in another two years. Evaluations and clear feedback are
given regularly as part of the promotion process, sources say. An insider explains
further: You are appraised every six months and progress at your own rate. We only
take on people we think are excellent, so theres no policy of cutting people out
along the way. But the individualized assessment allows you to stretch your legs and
receive recognition for your own personal achievements.
There is no strict up-or-out policy at OC&C, but insiders maintain that most
consultants do progress if they intend to stay at the firm. If someone will not
proceed to the next promotion, they are encouraged to look at other options, points
out a consultant. Another source claims, We tend to give new hires a chance, but
there is not much growth if you are not good. With only five layers of consultants,
there is the opportunity to move up rather quickly within the firm, were told. But
one Los Angeles insider remarks snidely, [There is] quick advancement if you drink
with the right people, otherwise [its] very slow.
Highly competitive
Sources report that they are generally satisfied with compensation at OC&C. For
strategy consultancy its the best in the market. Much better than similar levels at
Bain and McKinsey, a source points out. For most consultants, bonus starts at 10
percent. An insider explains, Were given a firm performance bonus plus a personal
performance bonus. In a good year, if I perform well, this initial 10 percent can
comfortably go up to 20 to 30 percent. One associate says that the only downside
to compensation is that the company does not provide retirement plans of any kind.
Trips to Europe
Insiders get excited about the annual away weekend for the entire office, and one
boasts that the trip allows them to socialize somewhere warm in the south of
Europe. In addition, there is a firmwide training trip that sources also appreciate.
We have an annual international training where all OC&C personnel from the U.S.
and Europe get together for a week, a New York consultant notes. For those who
want to extend their time abroad, the firm offers an ambassador program that allows
U.S. consultants to work in one of the European offices.
Another perk at OC&C is the time off program: The firm allows consultants to take
four weeks unpaid leave each year. Insiders also enjoy plenty of case team
dinners, post-assignments and a subsidized gym membership. One Londoner
comments that a real plus is the free fruit in the office.
Not too spiffy
The firms offices dont win many cheers from employees. An insider grumbles that
the Los Angeles office is cramped and ugly, though the firm highlights the new
offices it recently opened in San Francisco and New York. In London, a source
highlights the ups and downs of his office: The building is not the most modern, but
the split of the workforce is over six floors, creating small groups on each floor. This,
together with the fact that everyone works mainly in the office, leads to a pleasant
community-like atmosphere.
Improving gender balance
Though the firm is very receptive to women, gender balance is uneven at the firm,
sources say. As an insider claims, We are receptive to and keen to employ women.
There is a relatively low proportion of women, but [its] increasing rapidly. The
balance seems better in the U.S., according to a source: In the U.K., there is a small
number of women at the top two levels (out of five levels). The U.S. is much better,
but can be improved. And another consultant admits, I see lots of women at the
associate (entry) level, but very few at higher levels. I have not witnessed anything
to say the firm is not receptive to more women.
Many consultants seem to think the imbalance can be blamed on the disproportionate
number of women in consulting altogether. There is still a large male majority in
the firm, despite the proportion of women increasing in recent years. This is at least
partially due to self-selection; in line with the industry, we receive a lot fewer
applications from women than men, expresses an insider. A colleague concurs,
stating, There is very little that the consulting industry can do; it is inherently limited
by the demographic of quality students that emerge from the countrys best
universities. Once that becomes more representative of the population, then
consultancies will be able to start addressing the imbalance.
A long way to go
OC&C could certainly improve its ethnic diversity efforts, according to sources.
There is little diversity in the firm with respect to minorities, especially at the director
level. Efforts to correct this are bearing fruit, but there is a long way still to go, a
consultant remarks. A New York-based staffer comments that when it comes to
minority representation, the U.S. has a great track record. The U.K. office is much
less diverse. Despite the numbers reflected in its ranks, sources say they dont observe
discrimination at the firm: Its hiring depends on talent and appears genuinely
meritocratic, asserts an associate.
Little community involvement
OC&C consultants in the U.S. claim they arent active in charity endeavors with the
firm. Community involvement exists in the European offices, but certainly not in the
U.S. offices as of yet, says a Californian. In London, the firm is reportedly involved in
pro bono consulting. Asource mentions that the firm is formally committed to regular
pro bono projects with Impetus, venture capital philanthropists. Consultants typically
get to work with the management of a wide variety of charities.
550 West Van Buren
Chicago, IL 60607
Phone: (312) 583-8700
Toll Free: (866) 229-8700
Fax: (312) 583-8701
www.huronconsultinggroup.com
LOCATIONS
Chicago (US HQ)
Boston, MA
Charlotte, NC
Houston, TX
Los Angeles, CA
New York, NY
San Francisco, CA
Washington, DC
PRACTICE AREAS
Financial Consulting
Business Dispute Analysis Corporate
Advisory Services Economic
Consulting Forensic Technology &
Discovery Interim Management
Investigative Services Valuation
Operational Consulting
Healthcare Higher Education
Legal Business Consulting
Performance Improvement Pharma
& Health Plans Shareholder Value
Transformation Strategic Sourcing
THE STATS
Ticker Symbol: HURN (Nasdaq)
Chairman & CEO: Gary E. Holdren
2005 Employees: 773
2004 Employees: 612
UPPERS
Our CEO cares about his people,
and he lets you know that
A general feeling that were
building something great
Empathy for the difficulty of the
job goes a long way
Lots of exposure to employees of
all levels
DOWNERS
Inadequate raises and bonuses
Hiring process should be much
more competitive and restrictive
Our travel department is awful
Our leadership is a little
disorganized and reactive
EMPLOYMENT CONTACT
www.huronconsultinggroup.com/
careers
V A U L T
P R E S T I G E
R A N K I N G
46
THE BUZZ
Impressive growth
Strong lifestyle focus
Less academic
Unknown market presence
THE SCOOP
Andersen expats
Based in Chicago, Huron Consulting Group boasts a staff of nearly 800, providing
Fortune 500 and other clients with financial and operational consulting services. The
relatively young company went public on the Nasdaq in October 2004barely two
years after its founding in 2002and its track record of shareholder success and
industry acclaim so far is a rare happy story arising from a scandal-ridden period in
the American financial sector.
Hurons founders, a group of roughly 200 consultants with the former Big Five
consultancy Arthur Andersen, jumped the Andersen ship in May 2002. The timing
was fortunatetwo months later, a jury found Andersen guilty of obstructing justice
in association with energy giant Enrons declaration of bankruptcy. Thanks to the
Enron scandal, the business practices of outside auditors like Andersen, along with
other consulting/accounting giants with close ties to troubled companies, were called
into question. Clients began looking for help with financial and operational
consulting from smaller, more neutral firms, and Huron fit the bill.
Show them the money
Huron divides its business between operational and financial consulting. The
financial arm offers business dispute analysis, corporate advisory services, economic
consulting, forensic technology and discovery services, investigative services and
valuation. These services remain in high demand, thanks to a climate of increased
scrutiny among businesses, particularly publicly traded ones. Since the corporate
accounting dramas associated with Enron and their ilk, publicly traded companies
now have to comply with stringent requirements such as the Sarbanes-Oxley Act,
which essentially holds a firms execs responsible for certifying the accuracy of
financial statements. To help clients facilitate compliance, Huron specializes in
forensic accounting, a combination of accounting, auditing and investigative skills.
Over on the operational side, Huron offers services for health care and higher
education, as well as legal business consulting, performance improvement and
strategic sourcing services. This side of the business brings in slightly less business
than its financial counterpart (the split hovers at around 60/40), but some recent
acquisitions have bolstered its profile.
Boosting the portfolio
In April 2006, Huron bought the assets of Galt & Company, an advisory firm
specializing in corporate-wide programs to improve clients shareholder returns.
Huron paid about $20 million for the company (plus additional considerations tied to
performance over a four-year period), which had a 2005 revenue of around $17
million. Huron said it expected Galts services to complement its own portfolio
and the firm scored some additional high-powered clients in the deal, too. Notable
names benefiting from Galts corporate revitalization services in recent years
include Gillette and Alcan. Galt, with offices in New York and Chicago, employs
around 30 staffers, all of whom are expected to join Huron. In May 2005, the firm
acquired consulting firm Speltz & Weis LLC for $17 million. With an annual
revenue of around $20 million, Speltz specialized in providing interim management
and other crisis management services to health care providers such as hospitals. With
the deal, about 30 Speltz & Weis consultants came on board at Huron.
Getting the phones to ring
Success didnt come immediately to the firm. In a June 2005 interview with
Entrepreneur magazine, CEO Gary Holdren recounted that, even after securing $100
million in equity commitment to get the firm off the ground in 2002, the phones
were not ringing. But the industry broke wide open for the firm following its first
major get, consulting for United Airlines during its bankruptcy. Thanks to an
increasing profile in the media and in the industry, Huron took off, growing faster
than anticipated, Holdren said.
Growing the numbers
Ahuman resources strategy has been a big part of Hurons growth. Though the firm
has had to battle attrition, its hiring and recruiting practices have been aggressive, and
the firm prides itself on scoring big names in the industries it serves. As Holdren told
Entrepreneur, We were always hiring overqualified people for the size of our
organization, and the HR department put systems into place for the small firm that
were just as good as those Id seen for 80,000-person organizations.
Indeed, Hurons headcount has grown exponentially since the firms inception. By
late 2005, Huron had 773 staffers working out of offices in eight locations, including
Boston, Charlotte, Chicago, Houston, Los Angeles, New York, San Francisco and
Washington, D.C. Hurons billable headcount (the total number of consultants) also
has skyrocketed, up to 632 in 2005 compared to 2004s total of 483.
Breaking away
Despite an initial worry that Huron may be tainted by its Andersen connection, the
firm has been on solid footing for the past few years. In 2005, the firm posted a
revenue of $207.2 million, up nearly 30 percent from the previous year. Financial
consulting made up $118.2 million of the total, while operational consulting earned
$89 million. Both segments grew at a fairly comparable rate, with the financial sides
business increasing by 28 percent, and operational consulting by 33 percent.
Huron doesnt publicize the names of its clients but has conducted more than 2,500
engagements for more than 1,400 clients, and has worked on engagements with the
nations top law firms as well as Fortune 500 companies. The United Airlines
engagement raised the firms profile as a bankruptcy expert, and since then Huron has
been tapped to work with struggling airlines ATAand Northwest.
Winning acclaim
In the summer of 2003, just a year after the companys founding, Consulting
Magazine named Holdren one of the Top 25 Most Influential Consultantshe made
the list once again in 2005. In 2006, David Speltz was added to the roster of top
consultants. The firm was also named in 2004 as one of the magazines Seven Small
Jewels of the industry. And in 2005, the firm placed first among Entrepreneur
magazines 11th Annual Hot 100 for 2005, a list of the fastest-growing new
businesses in America. Huron took the top spot again in 2006.
Keeping HR busy
During 2005 and early 2006, Huron posted a slew of new hires and promotions.
Beginning in August 2005, Huron snagged John R. Curry, the executive vice
president at the Massachusetts Institute of Technology, to serve as a managing
director in its higher education practice. In January 2006, the firm appointed
strategic sourcing expert Jeffrey D. McLaren as a managing director to specialize in
health care supply chain management. That same month, the firm promoted 11 of its
own directors to the role of managing director. In February, Huron hired Suzanne E.
Hawkins, a legal expert, and Scott R. Willoughby, a pharma industry vet, as
managing directors. In April, it added Stanley N. Logan as vice president of strategy
and business development. That same month, Huron brought on pharma industry
experts Mark A. DeWyngaert and Paul J. Silver, followed by performance
improvement expert Gary Long in May. And in the following month, Huron tapped
accounting and valuation experts Joseph A. DiSalvatore, Kenneth J. Evola and Jason
M. Sevier.
Council of experts
In April 2005, the firm formed an Academic Council, chaired by Edward A. Snyder,
dean of the University of Chicago Graduate School of Business. The council, made
up of leading professors of economics, accounting and finance from nationally
acclaimed universities, was established to provide commentary on matters of
importance in economic litigation and related academic research, as well as to
provide expert testimony for Huron during economic litigation. In June 2006, Huron
added economist Jeffrey S. Gray, PhD, to lead the companys economics and
quantitative analysis group. He will be actively involved in the council, as well.
GETTING HIRED
Calling all lateral hires (and some new grads)
Thanks to extremely aggressive growth targets, Huron Consulting Group is very
open to hiring. Because of drastic turnover as of late, there is widespread hiring
at the lower levels, insiders report. Most say the firm is selective in who it hires,
but due to high demands, Huron has opened up the filter more than we should, in
order to get bodies, according to one source. Another agrees, saying Huron has
become less selective, because we are selling more work than we can staff. One
insider adds, The firm is extremely focused on experienced hires now, most of
whom come from industry instead of consulting and dont fit the culture nor are as
productive. More focus needs to be placed on campus hiring and long-term
development of those resources, as they historically are the top performers. Another
source calls human resources the weakest link among Hurons support
departments. We should be doing a much better job here. It seems that our best
hires are those that we hire away from other consulting firms such as Accenture,
PwC, Deloitte, etc., where the candidates have already been vetted through the larger
firms better hiring processes.
Huron does do some on-campus recruiting, though. Targets schools tend to be
practice-specific but, generally speaking, the firm goes after top MBAschools and
select undergrad institutions, sources say. Huron looks at MBAcandidates from the
University of Michigan, Wharton, Chicago GSB, Kellogg and University of
Indianas Kelley Graduate school. And undergrads are likely to spot Huron recruiters
on such campuses as Notre Dame, DePaul, Miami of Ohio, Boston College,
Berkeley, Lehigh, Rutgers, Texas A&M, the University of Illinois and Northwestern.
Whether coming from a competing firm or fresh out of school, Huron is looking for
people who are smart, talented, analytically skilled, good communicators and already
motivated to succeed, an employee explains, and a colleague adds that strong
leadership skills, deep industry knowledge, exceptional academic performance,
strong community involvement, exceptional analytical skills, demonstrable
teamwork and diversity of experience are also important qualities.
Case closed
The amount of interviews will vary depending on level, were told, but all
candidates are advised to brush up on their abilities to vocalize their talents. In
general, the firm does not have candidates complete any case studies, and conducts
interviews that focus primarily on whether a person will be a good fit. Interviews
are behavioral in nature, with an emphasis on personality and work ethic, stresses
a consultant. One source recalls that interviewers primarily asked various questions
from my resume. Another remembers being asked a selection of questions on a
variety of topics, including consulting skills, teamwork and professionalism.
Despite occasional technical questions, most interviews at Huron are not of a
technical nature, but rather about determining who is qualified, but would also be
a good fit/team player. In a typical interview, the candidate may be asked to
Describe a situation when you were working within a team, and were given an
ambiguous task, says one source. How did you approach the task? What role did
you assume? How did you manage dissonance within the team?
Hurons rigorous, but not exhaustive interview process, an insider explains,
typically involves three in-person interviews, with some candidates having as few
as two or as many as four. Most experienced candidates have one or two phone
interviews, before being invited to Hurons offices to interview with three-plus
people, while campus hires go through two on-campus interviews and three in-
office interviews. Candidates meet with interviewers from a variety of levelsfrom
consultants to HR representatives to managing directors. Normally, interviewees
meet consultants first, and then, after the candidates are narrowed down to the
finalists, they meet with the managing directors of our office for final hiring
decisions, a source reports. Although the most senior interviewers tend to come at
the end, one insider offers a tip: A single interviewer, regardless of seniority, can
eliminate a candidate.
OUR SURVEY SAYS
Little big firm
Huron is a young company, so the culture is still evolving, says one source, and as
an entrepreneurial company, it is fluid and open-minded to change, insiders
remark. An associate claims that the culture is similar to that of a Big Four firm, but
much more personable to employees due to the smaller size. One source calls the
firms culture a great mix of professionalism and familiarity. And consultants
appreciate the fact that Huron is a place that rewards hard work, where there is a
lot of room for you to impact the company. Because Huron is not a huge firm,
according to one source, the work you do as an individual gets noticed. Indeed,
Huron is a place where youll have the ability to take control of your career and
experience very quick advancement opportunities.
Employees enjoy all the little things that get missed at bigger companies, says one
source, including lots of happy hours and free drinking events. In short, while
employees at Huron are referred to as bright, driven and dedicated, and experts at
what they do, insiders explain that they also know how to have a good time and
have a lot of energy. Huron consultants frequently describe their firm as both fun
and very collegiate, and one source reports that co-workers hang out on the
weekends. Another insider recalls his first days with the company: I didnt feel like
the new kid on the block because everyone made a point to introduce themselves
right away. It was sort of similar to marrying into a family. Another agrees that
there is a very young, fun and nonintimidating vibe around the office. For those
that are looking for a temporary home, this is a great place!
Development drawbacks
But while many consultants seem delighted with the firms culture, others see its
downsides. Along with the benefits of working at a firm that is growing by leaps
and bounds, comes constant change and new people all over the place,
consultants report. One source says this sometimes makes it hard to create
processes and procedures. Another agrees, saying there is a lack of structure at
Huron, and a volatile approach to business development due to the firms small
size. And one insider claims that culture seems to have taken a backseat to
financials since weve gone public.
Fast track
With regard to personal development, once youre in the door at Huron, consultants
advance fairly quickly at the staff levels, explains an associate. We have managers
who are 25 to 28 years of age, states one source. If you perform well, it is very
easy to get promoted to the next level. Insiders say there is a strong push for
promotion within at Huron, and success is nurtured from the day you start, says
one consultant. In fact, another notes that the firm is so promotion-friendly that
advancements can sometimes happen a little too quick for peoples skills.
The firm reportedly promotes based on a combination of experience and
performance. Despite Hurons keen attitude toward promotion, the key, says one
source, is still building a track record of performance. Sources say consultants
can advance at the pace at which they show they are capable of handling the
additional responsibilities. One consultant, who compares Hurons promotion
policy to the old Big Four model says, Time of service may be more important
than performance. Both are considered, but tenure is most important. And although
top performers are rewarded with upward movement, those who are not promoted
are not out, remarks an associate
The typical time frame for promotions at the firm is analyst to manager in about five
years, according to one source. You will spend roughly two years as an analyst and
roughly three years as an associate. Insiders say the promotion pace gets much
slower as you advance in the organization. Managers at the firm expect results,
says one source, but you dont feel the pressure to get promoted year after year.
Its not up-or-out at Huron, reiterates another.
Doing time
Hours at Huron reportedly vary by position and group, but most employees fall
within the range of 40 to 55 per week, with a few reporting 60-hour workweeks.
According to one source, You will always work as many hours as you want. It is
rare for someone to say stop and go home. The average number of weeks per year
spent on client work varies by project: Some projects have a deadline four weeks
away and some last for a year or more, says one source. Insiders note that those who
work on shorter engagements can experience fairly crazy hours due to frequent
deadlines, but as one source adds, there tends to be a small break before the next
project begins. Some employees complain of unpredictable scheduling, but
acknowledge that its the nature of consulting. Staffing is unpredictable and often
results in periods of long hours followed by periods of waiting for the next project to
begin, says one source, and another grumbles that it can be frustrating when there
is no work to do; it happens pretty frequently.
I command you to balance
On the whole, Huron is known for keeping a close watch on work/life balance.
Huron supports employees personal lives and makes accommodations whenever
possible, says one source, noting, Several colleagues in my group moved to
flexible work arrangements and/or part-time schedules after having children, and an
analyst adds that all employees are able to work from home when necessary.
Managers at the firm understand there is more to life than work, says one
employee. I have worked the last three weekends in a row, says another insider,
and today, I got an e-mail from my managing director telling me he forbids me to
work this weekend. Acolleague reports a similar experience, saying, I am actually
forced by management to focus on these issues. I would not do [so] if my managing
director and coach did not keep me cognizant of the importance of balance.
Pack your bags
Huron also has its eye out for employees when it comes to traveling. The firm offers
a travel recognition benefit, which offers a nice quarterly bonus and expense
allowance for those spending 25 nights a quarter in hotels, says one source. More
specifically, frequent travelers are allowed $750 per quarter on their travel accounts.
We can charge virtually anything through to this account, says one insider.
Qualifiers can expense dinner/entertainment with friends/family, and other items
included in the program are cell phone bills, pet sitting, first-class tickets, massages,
house cleaning and luggage purchases. And, If you are on an out-of-town
assignment and you havent been home in a couple of weeks, they will fly someone
in to spend a couple of days with you. I heard of a guy who was in New York for
three weeks in a row and on the third weekend, the company flew his roommate out
for the weekend, reports a consultant.
These allowances are greatly appreciated by frequent flyers who express that it is
difficult to balance life when traveling most of the time, in the words of one source.
A colleague explains that travel requirements at Huron are purely pursuant to your
specific engagement, which in some cases means being on the road 100 percent of
the timeanother consultant insists that there is an expectation to travel 90 to 100
percent of the time. Others, however, claim to have minimal requirements when
it comes to being away from home. The rule of thumb, say insiders, is be flexible.
Sources say travel requirements cause minor problems in personal life, but no
detriment to work experience. Although it can be stressful at times, Huron does
its best to make it livable.
The beauty of overtime
While travel time is not billable, the blow of being away from home is softened by
Hurons overtime policy for hours spent at work. The firm pays analysts and
associates overtime on a straight-time basis for any hours over 40 per week, which
can add up on time-consuming projects. One source says the benefit usually gives
about a $5,000 to $10,000 bump in salary for the average analyst. Overtime pay is
not one-and-a-half time, but based on the hourly rate calculated from each
employees base salary, adds an insider. Although most consider the overtime perk
a blessing, one associate states, Certain groups cap the number of OT hours. This
is a very sensitive issue in certain groups and has caused consultants to switch to
groups that pay out all the OT hours you work. Some people have left the firm
altogether.
Better with age
Overtime aside, employees give average marks to compensation at Huron. One
consultant says that pay at the firm is comparable to the Big Four, but significantly
under strategy firms. Another says Huron pays sub-median market prices to
analysts and associates. One employee, who agrees that salaries may be below
industry average and competitors, also notes that compensation is less fixed, with
large potential upside.
Bonuses at Huron are performance-based and, according to one employee, can
range from zero to 140 percent of target. Still, on the whole, bonuses tend to
improve with seniority. One insider says the typical rate is 10 percent of base
compensation for junior staff and 50 percent for the managing director level, and
a satisfied colleague reports that 2005 bonuses, paid in early 2006, were very good.
Because base is probably at or slightly below median, bonuses at the firm are a
valuable part of compensation. And to supplement income, one source adds that the
firm offers spot bonuses for consultants that do an outstanding job on an
engagement.
Added perks
Huron recently made available an employee stock purchase program to all
employees, except managing directors who already participate in an equity award
program, were told. Employees who remain at the firm for one year after their
bonus is paid are entitled to 25 percent of the stock you purchase with a part of your
bonus, explains a consultant. Insiders also report that the firm also has a 401(k)
matching program, a very good benefits packet and a lawyer consultation
program. Employees, on average, are allowed four weeks vacation. You dont
accrue vacation time at Huron. You get four weeks and can start using it
immediately. The most notable benefit, though, is Hurons work/life balance
program, which pays for health and wellness goods/services, such as sports
equipment and health club memberships. Employees are entitled to reimbursement
of $25 a month. Other perks include a free business book each month and dinner
if you work past 7 p.m. in the office. Huron also pays the fee for employees to
enroll in the American Express Rewards program and offers a tremendous amount
of social activities where we get to have fun. One associate goes so far as to claim
that Huron has the best benefits of any firm that I or any of my friends have worked
[at] thus far.
Equal treatment
Huron does a great job of creating an atmosphere where everyone feels equal. As
one source says, We arent even allowed to have our positions on our business
cards. Employees describe Huron as a very flat organization, where juniors
work directly with top-level management. Managers at the firm rely heavily on
their junior staff, says one source. Managers genuinely care about how analysts
and associates are progressing, listen to ideas and offer quick turnaround on
tangible feedback, insiders report. Sources call Hurons executive management
team an excellent, focused, capable and approachable group, and for those
individuals who are willing and able to take on more responsibilities, there are a
myriad of opportunities, a consultant states.
Its what you make of it
Huron employees most appreciate of their supportive supervisors, since most training
at Huron is informal. The firms entrepreneurial vibe means that a lot of employees
self-train, says one source, so youre bound by your own motivation. Although
official training is both offered and encouraged, according to some sources, the
consensus is that the training infrastructure at the firm is under development.
Employees feel as though the firm could use a better balance of technical
development and consulting skills training. One consultant says, The new hire
programs are nowhere near as good as other, larger firms. And another describes
company training at Huron as cursory, calling group training superficial and late.
More specifically, new hire training was more of an orientation/information session
about the firm, says one employee. It did not really [incorporate] in-class lessons
or technical skills. But Huron does allow for attendance to outside programs, and
sources note, the new manager and new director training programs are excellent.
But new hires at the consultant level should expect to gain most of their knowledge
from on-the-job training.
Although there is some pressure to learn on your own, insiders do recall some formal
training opportunities. Huron offers classes on business writing, beginners Excel,
client-interviewing skills and professional speaking, notes an associate. One source
says Huron offers many in-house training programs, but for the most part they are
in Chicago and there can be budget issues with sending everyone there. Generally
speaking, employees at Huron are not offered excessive guidance when it comes to
training. The overall program is for you to decide what youre interested in and look
for training opportunities to meet those interests.
Push over, would ya?
Employees who work from Hurons main office in Chicago say there is not enough
space, which can make it difficult to get stuff done. One source claims the firms
rapid growth has caused the Chicago office to run out of space every two years, at
which point people are working on the floors or dont come in at all. Storage also
is limited, and employees complain of loud cubicles and a configuration thats not
conducive to travelers. Insiders note, though, that Huron is making necessary
improvements to adjust to its growth spurt, including relocating two offices in key
markets this year. According to one source, the new offices look impressive on the
plans.
The firms offices differ significantly by city. In the San Francisco office, employees
enjoy free drinks and free food, says one source. The Washington, D.C., office,
where only directors and managing directors get offices, is relatively new. The
Houston office space is beautiful, with incredible views of the city. And Hurons
Boston contingent enjoys a new, top-quality space, while a New York-based
associate reports, were getting new office space in a few months.
Ground to gain
Sources say that Huron is fairly diverse with regard to women. Consultants explain
that there are plenty of high-ranking women leaders at the firm, with an
overwhelming amount being mothers. As one insider reveals, My coach/boss is a
part-time mother who was just promoted to managing director at age 32 and works
three days a week. It doesnt get much better than that! Some employees note, You
tend to see more women in support roles at Huron, but agree that on the whole, the
firm employs exceptionally talented and strong women who are in high demand in
the marketplace. And, according to one associate, there are more and more women
showing up.
Huron also is gaining ground when it comes to hiring and promoting ethnic
minorities, but sources say the firm could use some improvement in this area.
There is an unfortunately small percentage of minorities in the company, says one
source, with an especially low number at the executive level. Employees report that
Huron is receptive to ethnic minoritiesthe firm recruits at Howard University, for
examplebut insiders say it definitely needs to do more to promote diversity. One
source adds that the firm has no real statement on its minority vision.
Nor does the firm have any real statement on its vision for promoting gays and
lesbians in the workplace. I am not aware of any diversity initiatives with respect
to gays, lesbians and bisexuals, says one source. Another adds that Huron doesnt
really promote GLBT diversity, adding, This is not to say GLBT employees wont
feel supported here. Its just not an initiative. However, one openly gay employee
says, I am out, and have several colleagues in my group who are, as well. I have
noted no significant issues or challenges in this area. GLBT individuals are covered
by the firms nondiscrimination policy and have access to DP benefits.
Thats the spirit
Huron is extremely active in the community, employees tell us, and encourages its
consultants to participate, especially on nonprofit boards. Huron has dozens of
opportunities to get involved with the community, says one source. In addition to
its pro bono consulting services, the firm encourages volunteering and offers a wide
array of civic activities in which employees can participate. An insider explains that
the firm lets employees submit ideas for volunteer opportunities and we track
memberships and related involvement by individuals with charities and related
organizations. The firms Huron Helping Hands program rewards employees for
their work in this area. For example, if you are doing Habitat for Humanity on a
Saturday, they will give you Friday off, says one source. Other organizations to
which Huron employees donate time include Junior Achievement, United Way,
American Red Cross and Toys for Tots, as well as clothing and food drives, and
inner-city mentoring programs. An associate adds, The firm recently donated a lot
of money to Hurricane Katrina victims.
25 Burlington Mall Road
Burlington, MA 01803
Phone: (781) 273-5480
Fax: (781) 273-5484
putassoc.com
LOCATIONS
Burlington, MA (HQ)
London
PRACTICE AREAS
Biotechnology
Diagnostics
Medical Devices
Pharmaceuticals
THE STATS
Managing Partner: Kevin Gorman
2006 Employees: 45
2005 Employees: 40
UPPERS
Good work/life balance for
consulting
Superior opportunity to take on
more responsibility and take on
leadership roles early on
Minimal busy-work
Strong alumni connections to
business schools and industrygood
career path potential
DOWNERS
Currently no women in the senior
staff
15- to 20-minute drive from
downtown Boston, which is irksome
Lack of flex-time schedule
Constantly being mistaken as a
subsidiary of Putnam Investments
EMPLOYMENT CONTACT
putassoc.com/careers/index.html
Putnam Associates
V A U L T
P R E S T I G E
R A N K I N G
47
THE BUZZ
Solid in health care, but very
small
Top-notch boutique
Recognized but unknown
Not a great working environment
THE SCOOP
A shining example
Putnam Associates is a boutique health care strategy firm founded in 1988. Out of
200 small, specialized consulting companies, Consulting Magazine says Putnam
shines as one of the industrys Seven Small Jewels selected in 2005. The Burlington-
based firm consults for pharmaceutical, biotechnology, diagnostics and medical
device clients. Putnam offers product strategy, portfolio management, organizational
strategy and economic analysis.
The firms founder and managing partner, Kevin Gorman, was formerly President
Carters Assistant to the Undersecretary of Energy. Gorman and the firms three
other partners are consulting and pharma veterans, with an average of 16 years of
consulting experience among them. With 40 consultants working out of offices in
Burlington and London, the small firm is making its mark in health care consulting.
Slow and steady
The firms size hasnt kept it from competing with giants like Bain and McKinsey.
Putnams tactic has been to keep a narrow industry focus, while offering as wide a
range of services as the larger strategy firms, Gorman noted in an April 2005
Consulting Magazine article. He explained that to pursue growth at all costs would
have diluted the firms DNA. Instead, the firm prefers to grow internally by
developing consultants over a period of time and pursuing long-term client
relationships. With the average tenure for consultants at seven years, even the firms
greenest consultants have a chance to become proficient specialists.
Size it up
The firm has served some of the top global pharmaceutical companies in projects like
product launches and patent expiration strategies. With over 225 industry-specific
projects in the last five years under its belt, the firm can help a biotech startup decide
which products to outlicense, or take stock of the competitive landscape before a
product launch.
Often, Putnam consults on competitive market strategy for pharmaceutical or biotech
companies. As a case in point, one of Putnams clientsa diagnostic company
hired the firm to determine the best way to position its newly developed molecular
identification and analysis system. Putnams consultants honed in on analyzing
Putnam Associates
potential customer needs and assessing competitors. The firm then developed pricing
recommendations and sales messages to address competitive threats. As a result, the
client was able to identify which product traits were most valuable to researchers, and
distinguish its product from existing technologies.
GETTING HIRED
Super schools and statistics
Prospective applicants from campuses across the globe are encouraged to apply to
Putnam, but the firm only actively recruits from the crme de la crme of East Coast
undergraduate universities. Dartmouth, Harvard, MIT, Princeton, Duke, University
of Pennsylvania, Yale, Middlebury, Vanderbilt and Swarthmore are on the listplus,
many consultants come from top Boston-area schools. Boston College, Boston
University, Wellesley and especially Tufts, provide a pipeline of talent to Putnam.
The firm also looks to top MBA programs such as Harvard, Wharton, Sloan, Tuck
School of Management, Stanford, Columbia and Kellogg for talented candidates.
What is Putnam looking for? Being comfortable with numbers is a must, the Putnam
hiring office says: Candidates will have proven analytical skills, as well as a strong
quantitative background. Strong computer skills and an understanding of statistical
methods are essential. If you meet these criteria, the hiring process is par for the
course, with insiders reporting a standard procedure of a phone interview followed
by a day or two of in-house interviews. Despite the firms focus on health care, not
all case study questions will pertain to the industry, and one associate says that case
interviews generally are not brain teasers, and tend to focus more on strategic
problem-solving skills. Apart of this is explaining your thought process effectively.
One Putnam vet offers this tip: Putnam is looking for people that can break down
the questions in smaller steps and walk the interviewer through the approach that they
take. So, be methodical and be ready to demonstrate how you got from A to B.
Putnam Associates
OUR SURVEY SAYS
Younguns and open doors
Lots of young analysts and a nurturing, open environment between the vets and the
newbies make for a collegial environment that has Putnam staffers beaming. Arecent
Princeton grad just entering the business says, I feel completely comfortable talking
to any member of the firm, from analysts all the way up to the partners. Outside of
company sponsored events, many of us Putnamites have become good friends and
often hang out after work exploring Bostons social scene. And its not just first
lovethose with more time under their belt agree with this rookie. One associate
comments on Putnams excellent open-door policy; even the partners are almost
always accessible (and approachable). Putnam is a very young company. Roughly
half of the employees are in their mid- to early-20s. People get along extremely well
and frequently socialize and become friends outside the office setting. And heres a
note of appreciation from someone whos been around the block: Its a great place
to work. Putnam is far less hierarchical than other consulting firms I worked at (Booz
Allen and L.E.K.).
Sacred weekends, standard workweeks
Putnam employees are pretty happy with their lives, and they dont even seem to
mind the monster workweeks that range anywhere from 50 to upwards of 70 hours
per week. The fact that some weeks are busier than others, is echoed by Putnam
staffers of all levels. Says one associate, Hours can be extremely variable.
Deadlines are deadlines, and there may be a time where you spend 80 hours a week,
and another where you spend 40. Most often though, it ends up being around 50
hours a weekthough most sources report logging in an average of 55 to 60 hours
weekly. Most Putnam employees agree, though, that while the hours can vary per
week, [its] nothing out of the ordinary for consulting.
Insiders also bask in the satisfaction of work-free weekends. One analyst tells us
that, In general, Putnam does a good job of work/life balance. Most of the people
at the office will occasionally have to stay late during the workweek, but weekends
are typically considered sacred. You wont be asked to work weekends unless you
absolutely have to (i.e., when a presentation is due). Another consultant reports
having enough free time to enjoy a little extracurricular funit is not rare at all that
many of the analysts and associates will go out for evening drinks or have a football
game/BBQ on multiple days during the week. And a female co-worker with happy
Putnam Associates
feet reports, I participate in many community activities, including a dance company
on the weekends and have a good amount of time to see my friends. Insiders, for
the most part, feel that at Putnam, respect for personal time exceeds the norm, and
deem the life at Putnam sustainablePutnam does not burn through its employees
in two years like some other firms.
Face time follies
So the hours are pretty good for the biz, but unfortunately Putnam has a few rules that
have stuck in the craw of several staffers. The problem, as reported by one analyst,
is that Putnam has specific face time rulesyou are expected to be in the office
between 8:30 a.m. through 6 p.m. This policy causes one consultant to lament, I
think overall the 8:30 a.m. to 6 p.m. face time requirement is somewhat of a
disadvantage, as some days it would be nice to be able to leave a bit earlier. Another
warns, The one thing to keep in mind is that Putnam has set hours, which can be
difficult for people looking for flexibility when on the beach. Being in the office
regularly is a must at Putnamthere is no official flex-time; even so, it does seem
that at least management is reasonable about allowing employees to steal out every
once in a while. One recent grad tells us that he has some leeway: If I have to step
out for a doctors visit or to go pick up my car at the garage, it is never a problem,
he says.
Kids in the crib
One major point raised by a number of Putnam insiders is that if youre new to the
job, you probably wont travel. Says one associate, Travel does not become an issue
until the senior associate level and above. Even then, travel is generally for the
purpose of presenting to the client. Work is almost never done on-site, but rather in
our office. The firm notes that it makes this point known during the interview
process, but many sources seem to want to drive this particular point home to
potential candidates. Most trips tend to be day trips. It is important for new hires
out of undergrad to know that travel is extremely limited during the first one to two
years of employment, comments one source. But dont mistake these remarks for
complaints. Arecent hire reports, You dont spend large amounts of time away from
home. Personally, I find this very attractive, as it allows for me to spend time with
my friends on the weekdays after work.
The home office is also a strong selling point for staffers, who seem happy with their
recently refurbished halls, equipped with gym and cafeteria. The facilities are
Putnam Associates
described as spacious, clean and comfortable, and as an added bonus, all
consultants receive their own private office. However, the offices suburban
location is a low point for many consultants. Says one young staffer, The location
is the largest drawback for junior staff. We are located 20 minutes outside of Boston,
which requires you to have a car. The commute is reverse, so you wont sit in traffic,
but happy hours after work are a little tough. This is repeated by much of the under-
30 crowd who, to quote one Gen-Y member, think, it would be nice to be in the city
of Boston or even Cambridge.
Launching pad
Afew Putnam employees seem to have their eye on a bigger prize. If youre looking
for a little introductory experience to the industry, these consultants report that
Putnam is a great place to be. According to one source: Especially for people
coming straight out of undergraduate, Putnam is a great place to start a career. The
level of responsibilities that are given is far beyond what most people expect. For
people thinking of going to business school after three to four years of work, Putnam
can be a very good place to get some solid experience. In addition, Putnam has a very
strong track record of getting people into top business schools. And if business
school isnt in the cards, one consultant notes that because Putnam focuses on health
care strategy work, the two or three years then business school route is not the only
one taken by analysts. Some decide to go into industry (pharmaceuticals/biotech),
while others may go to medical school.
Annual automatic
At Putnam you wont be forced to move on if youre not the star junior staffer.
Insiders report that the first promotion may come easily, but after that youre on your
own: its a strict merit-based system, and individuals can stay at their current
position until theyre ready to get promoted. An associate tells us, Putnam has no
up-or-out policy. Those that perform well at Putnam will advance more than others,
and the management works with those who are struggling to figure out the problems
they are having and how they can work to improve. All analysts are promoted to
associate upon completing their first year, which virtually eliminates the cutthroat
atmosphere that permeates other consulting firms. Beyond that, there seems to be a
sophomore slump; co-workers express that it gets tougher to achieve the higher
ranks. APhD holder tells us that, Promotion from analyst to associate (and to senior
associate) happens relatively quickly. This is one of the great things about Putnam
top performers are immediately recognized and rewarded through promotion. It takes
Putnam Associates
considerably longer, however, to achieve consultant status (unless the candidate
arrives with an MBAor consulting experience). And according to one second-year
associate, People have been known to stay at the associate or senior associate level
for years. Employees are generally asked to perform the tasks that will be required
of them at the next level before being promoted.
Less than the rest
Take home pay and bonuses get high marks from consultants at Putnam. And
although theyre aware of making a tad less than the big boys, no one seems too
riled up about it. An associate explains that his salary is par for strategy consulting.
Its slightly less than Bain, BCG or McKinsey, but not by too much. A colleague
feels that it all balances out in the end: The compensation is lower than the major
consulting firms, but this is compensated by significantly less hours and travel.
Another interesting thing to note, according to an associate with a couple years at the
firm, is that our projects are rarely formally based on billable hours, so neither is our
compensation, which is less stressful than at other consulting firms.
Does anyone really like PowerPoint?
Putnams formal training program gets high marks from new hires but, as with many
other firms, the majority of staffers agree that the best experience comes from being
on the job. An associate reports that Putnam has been developing a more significant
training program, and it covers many of the key areas that you will need as you begin
your career as a consultant. These areas include business concepts and frameworks,
health care industry overview, software training and more. Much of your training at
a firm this size will be on the job, and the senior staff is always looking to help you
grow professionally, and invites questions. The junior staff is also a great resource,
as the environment is collegial, not competitive. Another consultant concurs, stating
that due to the open-door policy and relaxed office environment, it is very easy for
new hires to gain knowledge from employees that have been at Putnam for a while.
Aco-worker adds that there are formal training modules for key skills such as Excel,
Access, PowerPoint, financial calculations, etc. In the past year, a practice mini-
case was introduced, where the new analysts were asked to work through and present
an analysis in their first few weeks on the job.
Putnam Associates
A little help from your friends
This may seem obvious if youve read how Putnams people view their office culture,
but it bears repeating: Putnam staffers love their higher-ups and the open-door policy,
which, for some, makes official training seem like a mere formality; in a crunch,
Putnamites think their best resources are often their fellow employees. Several
suggest that its the close proximity of employees ages that helps build the
atmosphere of camaraderie and trust. An analyst says, We are managed by the
senior associate, an employee who generally is roughly two to three years out. Senior
associates are often only a few years older than analysts, and thus we have a very
congenial relationship with each other. The consultants and partners are slightly
more distant, but still extremely approachable and friendly. Afellow consultant tells
us that since the company is so young, new analysts have a large group of easily
approachable early- to mid-20s associates who have recently been through the
analyst experience.
Fever pitch
Get yer Red Sox tix heah! No perk is as popular with Putnam consultants as rotating
access to a set of box seats at Fenway Park. A Costco membership, free late-night
takeout and a new gym in the office all score high on their list. Planned corporate
outings are also a part of the package and consultants low and high appreciate the
companys efforts to let their hair down every once in a while. Heres the inside
scoop from a Putnam vet: Putnam has three outings a year, a golf outing, Christmas
party and bowling outing. Besides that, they try to have a wine and cheese at least
every four to six weeks. These activities are meant for people to blow off some
steam, to relax a bit and to mingle with some of the people you might not have
worked with for a while. All outings and activities tend to be very informal. Case
team events take place after the end of every case, which tend to be dinners at some
of the nicer restaurants Boston has to offer.
Industry trends represented
Its a trend in the industry and Putnams no exceptionwomen are manning seats in
the cubicles, but not in the corner offices. Putnam actively recruits female junior
staffers. One analyst explains, Women are extremely well represented at Putnam
with roughly half of our last few incoming classes being made up of women, while
another says, The male female ratio is roughly split 50/50 for analysts and
associates. However, there is currently a lack of females in senior positions within
Putnam Associates
the firm. This doesnt appear to be due to lack of receptivity to female hiring, as
Putnam does appear to be actively attempting to fill this void.
At least the women already at Putnam are approving of their environment. One
female employee reports, Women that are at the firm are treated well and with
respect, and promotions are offered equally to men and women. Perhaps its the
lack of work time flexibility that is hampering women from getting to the top.
According to another female associate, I think Putnam has a hard time getting senior
women because of its culture of rigid work hoursmore so than any other issue. I
think they actively try to recruit women, but it hasnt worked out to date.
Putnam mirrors the status quo consulting biz demographics in other areas of
diversity, as well. Comments such as, We have a few minorities in this office, but
since we are a small specialized firm, I think our numbers are pretty indicative of the
industry, and, Minorities are represented fairly well at Putnam given the lack of
representation in industry, are echoed by many Putnam staffers when the question
of an office minority presence is posed. And as far as gay, lesbian and bisexual
representation, one analyst remarks, Though Im sure people would be friendly to
people with alternative lifestyles, there are no openly gay men or women at the firm.
Do-it-yourselfers
Putnam is not an initiator or active sponsor of charitable causes for its employees.
That being said, the company does look kindly on good works carried out by staffers
on their own time. One associate explains that the firm is small and does not have
the capacity to support local charities. Charitable involvement is encouraged, but not
well supported. If youre willing to start it up though, Putnam will helpa
colleague states, The firm does not actively sponsor community involvement, but
there are many internal activities by employees. This year some employees started
up a large charity group to help Katrina survivors.
Putnam Associates
Putnam Associates
Those that perform well
at Putnam will advance
more than others, and the
management works with
those who are struggling
to figure out the problems
they are having.
Putnam consultant
17 State Street, 22nd Floor
New York, NY 10004
Phone: (212) 605-0141
Fax: (212) 605-0142
www.mitchellmadison.com
LOCATIONS
New York, NY (HQ)
Los Angeles, CA
London
Manila
PRACTICE AREAS
Business Strategy
Cost Optimization
THE STATS
CEO: Rolf Thrane
2006 Employees: 127
2005 Employees: 81
UPPERS
The cultures very open-minded;
you can say whatever you want
At MMG you immediately get
client access
Diversity in clients and projects
Its run more like a team than like
a big corporation
DOWNERS
Still some organizational bugs to
work out
Very little downtime between
projects
A lot of mind-numbing and
redundant work
I am not located in the home
office of NYC where all the action
is
EMPLOYMENT CONTACT
Jim Quallen
E-mail: recruiting@mitchellmadison.com
A calendar of campus visits and
interviews is available at:
www.mitchellmadison.com/careers
sub2.html
Mitchell Madison Group
V A U L T
P R E S T I G E
R A N K I N G
48
THE BUZZ
Come-back, laid-back
Reforming; still some brand
recognition
Snooty for no reason
Fallen recently
THE SCOOP
Off to a great start
The story of Mitchell Madison Group, as the histories of consulting firms go, is
somewhat more eventful than most. In 1991, consulting firm A.T. Kearney formed
a strategy group of ex-McKinsey consultants. Three years later, in 1994, this band
of consultants, led by Thomas Steiner and Rolf Thrane, bought itself out to establish
its own firm, Mitchell Madison Group. The companys name was derived from
Mitchell Street, the location in upstate New York where Steiner, sitting in a bar,
decided to leave McKinsey, and Madison Avenue, the location of Mitchell Madisons
first office.
Steiner was determined that this company be a top-tier consulting firm, able to
compete with top-dogs such as Bain, Boston Consulting Group and McKinsey. In an
economy flush with funds from the dot-com boom, the fledgling consultancy was
able to grow exponentially. MMG recruited from the top undergraduate and business
schools, and wooed partners from other firms with cushy deals. The firm brought in
more than 800 employees in 11 offices between 1995 and 1999, and revenue more
than tripled, finally topping out at over $200 million per year in 1999.
A long and winding road
Thomas Steiner was achieving his goal far more rapidly than even the economy of
the roaring 1990s could support. Partners had to defer their year-end bonuses several
times in order to provide the firm with enough cash to support its hiring spree. The
firms headlong gallop was suddenly and sharply reined in by tight financials. In
1999, after several years of strong growth, MMG retracted its job offers to recent
graduates and fired 10 percent of its workers due to an inability to follow through
with salary offers. Ironically, that same year, the firm was ranked No. 39 on
Fortunes list of 100 Most Desired Employers, above both Lehman Brothers and
BMW.
To raise the capital to fund the precipitate growth of MMG, the board decided in the
summer of 1999 to sell. In September 1999, USWeb/CKSan advertising and web
services company with already more than two dozen companies in its pocket
stepped up with a $500 million offer for the company. It seemed like a brilliant idea
at the time: one-stop shopping for firms seeking advertising, web presence and
consulting. Within two years, the company went bankrupt.
Mi tchell Madison Group
That December, USWeb/CKS merged with yet another entity, an established
computer consulting firm named Whittman-Hart, in a deal valued at $8 billion.
Robert Bernard, Whittman-Harts CEO, proudly announced during the merger that
the company would be uniquely positioned to serve enormous demand for computer
consulting services. Investors were not nearly as optimistic. When the merger was
announced, Whittman-Harts stock price fell by nearly a third and USWeb/CKSs
dropped by 14 percent. Despite investors visible lack of confidence, the
USWeb/CKS-Whittman-Hart union went ahead, and the new firm was christened
marchFIRST, for the official merger date in spring 2000.
Spring fever
In March 2000, the Nasdaq peaked as investors collectively decided that the New
Economy was old news. The markets plummeted. With insufficient funds to cover
its liabilities, the holding company distributing marchFIRST stock to MMG
shareholders was declared insolvent. The company limped along for another year,
but by March 2001, it had kicked the bucket. In April 2001, with its stock trading at
31 cents per share, down from a high of over $80, the company declared bankruptcy.
Back in the game
The story, of course, does not end there. In 2002, some of the MMG founders,
including present CEO Rolf Thrane, bought the rights to the name in hopes of
reviving the firm. A growing economyand perhaps a lesson learned the hard
wayhave resulted in positive growth in the company. The firm notes that it has
grown from four to 130 employees in three years, with strong plans for the future
well ahead of the old MMGs growth trajectory.
Today, Mitchell Madison Group is a performance enhancement services company
whose primary focus is improving client profitability. The company uses a model
that leverages its strategic sourcing and outsourcing skills, combined with
reengineering and business strategy services to return clients to stronger performance
in a reduced time frame. MMG is unique in that the company puts its money where
its mouth is. The firm operates on the usual fee-for-service model, but the company
prefers that its consultants take a stake in their clients success and are
compensated only after they have achieved their desired results.
GETTING HIRED
Picky, picky
Mitchell Madison consultants agree that the firms hiring process is highly
selective. MMG cherry-picks from a list of schools, mostly top-10 MBA, top-20
undergrad, [and] mostly U.S., though open to non-U.S. nationals. Caltech, MIT,
Princeton, Brown, Harvard, Columbia and Yale (School of Management) all
routinely make their way onto the firms recruiting schedule. For hires straight from
college, there are typically two rounds of on-campus interviews followed by an
office visit for those who are to receive formal offers. Interviews include case
questions testing both quantitative and business acumen, according to an insider.
For candidates who arent part of on-campus recruiting, the interview process is
slightly different, a source tells us. If a submitted application is accepted, you are
called in for the first round of interviews. These are usually conversational, and
meant to get to know the prospective employee as a person. If you are called back
for the second round of interviews, they are usually case interviews, designed to test
your strategic analysis skills.
One consultant cautions that an interview gives true insight into the way Mitchell
Madison consultants are treated by clients. You might want to expect a little
rudeness at the interview, but if you cant handle that, youll never be able to handle
a client.
Questioning reality
The firm doesnt get its case questions from a textbook, were told. Questions
actually reflect real-life challenges on our projects, a manager says. One insider
adds that there could even be brain teaser questions to assess a candidates thought-
forming process. Examples of such questions include How many yellow cabs are
there in NYC? or Under what circumstances can lottery tickets be an attractive
investment?
OUR SURVEY SAYS
Where everybody knows your name
Employees agree that MMG feels like a big, happy family, complete with group
dinners and other activities. The collegiate atmosphere might be a bit too much for
some, though, according to one consultant who states that the culture is very
collegiate ... It sure feels like a male-dominated frat house! But, the friendly spirit
means that people who enjoy actually knowing their colleagues names will likely
feel at home here. MMG has the advantage of a small firm in that many of the
consultants know one another, which translates well into a good working
environment.
The close-knit culture also means plenty of interaction among all levels, which most
consultants say is a real benefit of life at MMG. Associates and analysts are given
the opportunity to work closely with the partners from the very beginning, notes a
source. Agrees a colleague, Being in a small firm gives lots of opportunity to
business analysts to have interactions with partners. Another insider points to an
additional advantage of MMGs close-knit nature: Low partner to staff ratio means
a great deal of interaction with experienced consultants, so a faster learning curve.
All work and (almost) no play
MMG is a place where 60- to 70-hour workweeks are the norm. One source reveals,
I only work about 45 hours per week, but that translates to 86 hours per week away
from home, since Im traveling four out of five days. In keeping with the all-for-
one attitude MMG consultants rave about, the extensive hours are somewhat easier
to take when everyone contributes. The managers and partners work just as hard as
the associates and analysts, so its not difficult to put in the long hours (because you
see everyone working together), comments an insider.
In addition to hectic weeks, MMG employees often find themselves with spillover
work on the weekends. Insiders estimate that they work 10 to 15 weekends out of
the year. But as a consultant notes, even when we work weekends, its usually not
full time. And although weekend work isnt always obligatory, respondents add that
it still takes effort to turn those two precious days into your own time. The job is
such that Monday through Friday are almost entirely devoted to work. You really
need to make time for your life on the weekends. I try to get away, preferably
without my cell phone, on the weekends, reports one associate.
Light at the end of the tunnel
According to junior hires, the workload is expected to be heavier in the beginning.
One first-year consultant laments, Relationships are impossible. Routine exercise is
tough but achievable. The long hours are put into perspective, however, after the
initial stressful period as a new hire. For the first few months, work was quite
intense, but became more manageable as I got over the initial learning curve. I
havent quite achieved the work/life balance Id like, but Im getting there. Im
happy to say I almost never work weekends, a source tells. Still, another colleague
claims that compared to other firms, MMG does fairly well when it comes to
breaking in newbies: My first five years in consulting were at a different
management consulting firm and the balance was extremely unfavorable there.
Just part of the package
Insiders at MMG arent thrilled with work/life balance at the firm, but realize its just
the nature of the job. Many sources say they know what theyre getting into when
they sign up for the job, so the extreme travel comes as no surprise. One consultant
states, I dont like traveling, but its part and parcel of consulting, while another
adds, Its hard to balance work and life when traveling, no matter how many hours
per week youre actually in the office.
The firm can be flexible with demands for those who speak up, however, and one
insider offers a bit of reassurance: Consulting is consulting. That said, MMG is
willing to work around personal situations and were almost always home on
Fridays. Amanager concurs, explaining that the firm was helpful in providing me
with options to reduce the east-west travel, and more opportunities to extend into
other areas of interest to me, says a manager. But a junior associate adds further
insight into the matter, and states, Balance between work and life is not a major
concern of most of the management. As such, the ability to balance work and life is
highly dependent on the demands of each project.
Crash course
Those who make the cut at MMG are expected to learn the ropes without step-by-
step instruction. Training at MMG is entirely on the job with a sink-or-swim
attitude, a consultant reveals. The firm acknowledges its historic lack of formal
training opportunities, but suggests that the employees it recruits are more inclined to
learn by doing than through classroom instruction. An insider corroborates this
assumption, stating that the candidates we recruit are typically very independent and
thrive in an on-the-job training environment versus classroom setting. MMG notes
that in May 2006, it inaugurated a training program to help new consultants come up
the learning curve on analysis and client soft skills.
A train-as-you-go plan may work well for a firm that intends to stay small; but as
MMG grows, this policy will need to change. One employee explains, As with any
growing company, this is an area that can always be challenging. Overall, the
employees of MMG work strongly as teams to help each consultant progress
throughout their career, but a Consulting 101 course would help eliminate some of
the unknowns as new hires begin their first engagements. Aprogram is currently in
the works. One manager reports: I am actively involved in developing the training
program. The goal is to have the correct balance between on-the-job orientation and
formal training. We have a successful mentoring program in place already.
Satisfied with supervisors
Employees generally give glowing reviews of MMG management, and several
insiders note that a favorite perk is the access to senior executives that MMG
affords them. Afirst-year associate explains, Immediate face time with the partners
makes it so the people at the top of the company know your name and the quality of
work you do. And though there is plenty of interaction with the top dogs, insiders
appreciate managements hands-off style. Supervisors encourage us to build and
manage our own client relationships, providing support when necessary, notes a
source. And junior consultants get client face time from the startWhile I dont
interact with top-level management, I am happy with the level of client interaction I
get. Even as a brand new analyst I got to interact closely with client contacts, says
one consultant.
Stepping up
Most MMG sources agree that advancement at the firm doesnt follow a strictly up-
or-out structure. As one insider reports, Being a small firm, the career track and
promotion process within MMG is highly personalized, and another concurs,
explaining that its not necessarily up-or-out; you are given responsibility you can
handle. As a colleague explains, Promotions are assessed at the end of each
calendar year, and based on performance reviews by your direct superiors.
But while up-or-out does not have an official position at the firm, insiders indicate
that there is certainly a promotion timetable in place for high achievers. One source
states that consultants advance fairly quickly, and another lays out a progression
map, while simultaneously insisting that MMG does not enforce an up-or-out policy.
Its not up-or-out: one to two years analyst to junior associate; another one to two
[years] to associate; [and] three to four to manager, he says. Yet another colleague
urges that while top performers are aggressively promoted, the notion of up-or-out
is not a big part of the development path here. Still, the expectation is that the firms
consultants are the ambitious, eager type who continually vie for more responsibility
(or they wouldnt be at MMG in the first place). As one claims, Employees who
arent promoted are not asked to leave, but most do leave anyway.
Up for discussion
Several insiders attest to the firms fairness when it comes to salary and bonuses,
which range from none to 100 percent (for managers), depending on seniority and
performance. In addition, according to sources, salary is not a closed subject and
claim that the firms management is quite fair in determining individual
compensation. A junior consultant states, Partners are flexible in discussing bonus
and compensation, depending on performance. My experience is that they are very
fair in assessing merit and contribution. The salary at junior levels seems on par
with other firms, according to insiders, and one analyst claims that his pay is slightly
better than [my] peers. Pay is standard at analyst/associate level but much better
than industry at manager/partner level, reveals another source.
Vino and victuals
In addition to great medical benefits and a 401(k), the firm gets props for cool
perks, like having an ex-Olympian as a personal trainer, who is available free-of-
charge at the company gym. One MMGer boasts, the company provides funding for
analysts and associates to organize functions (e.g., baseball games, dinner in wine
country) very regularly. Even traveling has an upside: consultants get to keep the
frequent flyer miles and hotel points that can add up to first-rate travel deals for
personal vacations. Acolleague adds that his office sponsors Friday happy hours,
and team dinners are also very nice, especially on special occasions such as
birthdays or holidays.
Out of the office
MMG associates based in New York seem to be enjoying the new digs that they
moved into in April 2006. [The] new offices will be much less crammed than our
[previous] setup, so this will definitely get better. But with a travel schedule like
these folks, who cares what the office looks like? The office space is adequate. I
almost never use the firms office space since Im either working on a clients site or
working from home, says one insider. An analyst concurs: The firms offices
[were] not optimal, but our employees almost entirely work from client locations. I
have only been to my home office four times in the last year-and-a-half.
Fair and balancedalmost
Most insiders say they are satisfied with the support for diversity at the firm. As an
associate reports, There are no specific programs geared towards minorities,
however, we are extremely diverse when it comes to minorities. MMG is very
committed to assisting overseas expats with visa concerns and other needs. Another
consultant chimes in, claiming, The firm is incredibly diverse and respects the
individual needs of different cultures, and another adds that a high percentage of
the partners and managers are minorities.
Diversity with regard to women, though, is one area in which where the firm could
improve. According to one consultant, On my last project, I was the only American
on the team, but adds, we just need to recruit more women. We tend to skew
heavily male (75 percent). Amore equal distribution would always be better, asserts
a colleague. And a manager confirms that MMG is very receptive, but has not fully
balanced yet.
With respect to gays and lesbians, benefits extend to domestic partners and the
overall tone among employees is impartiality. As one openly gay team member tells
us, Domestic partner benefits are offered. The executive team has several gay and
lesbian members. There are no specific programs geared towards this group; again
performance equalizes everything. I support this. And another consultant observes,
Several of our senior consultants are openly gay and this is, as it should be, no big
deal, while a colleague affirms that its a nonissue.
Motivate yourself
At MMG, community involvement generally isnt high on the priority list. Sources
suggest that its more of a personal endeavor. As one explains, Many people do
these types of activities on their own, but the firm does not encourage them.
Another insider tells us that firm does donate to a few charities and there are several
partners and managers who regularly organize/promote events for their pet
projects, but still, any significant charitable initiatives are left up to individuals.
Immediate face time with
the partners makes it so
the people at the top of the
company know your name
and the quality of work
you do.
Mitchell Madison employee
4601 North Fairfax Drive
Suite 600
Arlington, VA 22203
Phone: (571) 227-9000
Fax: (571) 227-9001
123 Buckingham Palace Road
London
SW1W 9SR
United Kingdom
Phone: +44 20 7730 9000
Fax: +44 20 7333 5050
www.paconsulting.com
LOCATIONS
Arlington, VA (North American HQ)
London (Corporate HQ)
Offices in over 35 countries
PRACTICE AREAS
Business Operations Consulting
Business Process Outsourcing
(Finance & Accounting, HR Advisory
Services) Information Technology &
Systems Integration Managed
Services/ eProcurement Market
Analytics People & Organizational
Change Program & Project
Management Sourcing Advisory
Services Strategy & Marketing
Technology & Innovation
THE STATS
CEO: Bruce Tindale
UPPERS
Generally not a lot of internal
politics, which is refreshing
A company for self-starters
Very enterpreneurial since the
business in U.S. is growing
Diversity of challenging
assignments
DOWNERS
Not enough brand recognition in
the U.S.
Competition between consultants
can be counterproductive
The one size fits all policies from
corporate
Salary could be higher
EMPLOYMENT CONTACT
www.paconsulting.com/join_pa
PA Consulting Group
V A U L T
P R E S T I G E
R A N K I N G
49
THE BUZZ
Big Four-esque
Solid in pharma and bio
Occupy odd ground between
strategy firms and IT firms
Cookie-cutter
THE SCOOP
Owning a piece
London-based PAConsulting Groups unique company structure places ownership in
the hands of its 3,000 associates. The firm prides itself on its independence and being
answerable only to itself and its clients. The ownership structure means salary
weighted toward 10 to 30 percent bonuses. PAbelieves the payment structure means
members will respect each other and work to make each other successful, rather than
seeking to be hailed as lone heroes. The firm counts financial services, government,
energy, life sciences and telecommunications among the industries it serves. Practice
areas span strategy and marketing, business operations consulting, sourcing, IT and
systems integration, technology and product development, people and organizational
change, program and project management, decision sciences and market analytics.
In October 2005, PA added two new practice areas: defense and security, and health
care delivery.
Founded in 1943, PA has steadily grown to become one of the U.K.s largest
consulting and IT services firms, with offices in more than 35 countries. Through the
1960s and 1970s, PAwas a profitable company. The firm shrank and saw financials
in the red through the recession in the 1980s and early 1990s. Jon Moynihan, the
current executive chairman, was brought to PA in 1992 and began an overhaul,
trimming management and changing the hierarchical structure. In 1993, profit began
to turnaround and PAagain became a contender in the consulting marketplace. Since
1997, the firms goal has been expansion and growth. Although the firm has offices
around the world, sector growth rather than geographical expansion remains
important. PA plans to focus on niche markets and build a reputation based on a
deep, rather than broad, understanding of industries.
PA adVentures
PAhas made itself stand out as a consultancy that runs its own startup ventures in the
post dot-com age. In a September 2005 Financial Times article, Moynihan said he
believes a consulting firm should be a role model for making viable businesses out
of ideas, since this is what it does for clients. He sees new ventures as a conduit for
generating original technology ideas, of which consulting companies have plenty.
Employees at PA also have a stake in venturing; annual partner bonuses are 5 to 8
percent lower than they would be due to the money going into ventures. Moynihan
PA Consulting Group
said that starting companies based on original ideas is a way to create jobs in a time
when they are increasingly being outsourced to China and India.
In 2006, PAlaunched ProcServe Managed Service through its subsidiary, PAShared
Services Limited, as an e-procurement system designed to facilitate trade between
the public sector and suppliers in the U.K. Prior to that, the firm spun off a mobile
technology venture, UbiNetics, in 1999, which it subsequently sold it for $82.5
million in May 2005one of Europes largest technology deals. The September
2004, $125 million sale of Meridica, PAs asthma and respiratory drug delivery
company, to Pfizer has led to more ventures in the health care industry, notably with
its latest addition in October 2004, Aegate.
Aegate, based in London, won the Frost & Sullivan 2005 Best Practice Award for
Entrepreneurial Company, for its innovative solution to fight pharmaceutical fraud.
The company invented a scanning process using bar codes and radio frequency
identification (RFIDs) that can test a drugs authenticity and lower the risk of sources
dispensing fake, illegal or incorrect drugs to patients. The custom-built technology
reader allows pharmacists who dole out drugs to identify counterfeit or stolen meds
and recall products quickly.
Keeping it real
Although PAhas had success with some ventures, it has no intention of funneling all
of its talent and resources into experimental endeavors. Since the dot-com rush to
pour capital into new ideas that didnt always prove viable, corporate venturing has
been seen as a risky bet for companies. This means that PAs approach is to be
especially prudent when it comes to choosing where to invest capital and resources.
According to Moynihan, what has made the firms ventures successful is employing
the same strategies used with its clients, as he stated in the September 2005 Financial
Times article. An ability to provide support functions, such as human resources and
compensation, for spin-offs allows venture heads to concentrate on growth until the
business becomes self-sufficient. Knowing when to sell is also crucial. We dont
want to hold on to a venture for the sake of it, he says.
Though the trend for consulting companies to outsource is also prevalent, the firm
plans to keep its focus on management consulting. PA prides itself on being a real
consultancy, as opposed to a firm whose bread and butter is creating and selling
companies or software implementation. Moynihan explains that the firm will never
grow to be an outsourcing-only outfit or have consultants who solely do IT delivery
work. To compete with other IT consultants, PAis creating intellectual property and
PA Consulting Group
business intelligence software to add value to its client services. In September 2005,
Alec MacAndrew, a partner in the global technology group, told the Financial Times
that the firm must never lose sight of having to do consultancy and mustnt let the
tail wag the dog.
Senior shuffle
In October 2005, the firm announced major changes in its management structure for
2006, which follow a plan of phased succession in senior management positions.
In January 2004, Bruce Tindale, former chief operating officer who had spent 26
years at PA, was appointed CEO. He replaced Moynihan, who stepped down as CEO
but still serves as executive chairman for the firm. Andrew Hooke became the COO
in January 2006.
In November 2005, the firm appointed Barbara Thomas Judge, chairman of the U.K.
Atomic Energy Authority, as nonexecutive director. Lady Judge was one of the first
women to sit on the British Securities and Exchange Commission and holds several
other nonexecutive positions in the U.K. Additionally, six new group heads and two
new practice heads were promoted from inside the company to lead strategy and
industries, government services and other practice areas. These high-level changes
reinforce PAs focus on growth through deepening expertise in priority industry
sectors.
Home turf advantage
When it comes to British government contracts, the firm continues to rake in
engagements. In February 2006, the firm was selected to partner with OGCbuying
solutions.com, an agency of the Office of Government Commerce, to develop ProcServe
Managed Service, aimed at streamlining e-commerce for the public sector. ProcServe,
named after the spice markets on the Indian Ocean island, is expected to make it easier
and more cost-effective to link buyers and sellers, and give one access point to the public
sector marketplace.
In May 2004, PA won a bid to design a new biometric identity card slated for release
in 2009 in a contract likely to be worth $33 million dollars (or 19 million) over 18
months. The controversial ID program has received criticism for the possible security
risk and high cost. Academics at the London School of Economics and Political
Science published a report in March 2005 arguing that an integrated national system of
such large scope inherently carries too much risk of technical failure as well as potential
to become a target for terrorists. The U.K.s Home Office proposed the ID scheme as
PA Consulting Group
a way for citizens to simply and securely prove identity while carrying out
transactions or traveling.
Across the channel
While the firm is already entrenched in U.K. markets, it is looking to make a similar
splash in the U.S. With nine U.S. offices, it has already served major clients like
Universal Music, Sony Picture Entertainment, AstraZeneca, Pfizer, Nissan, AIG and
Cisco Systems. Now PAis buoying its ranks with some big-league American players.
In March 2006, the firm hired Claus A. Friis, former Citigroup Global Innovation
director, to the U.S. financial services management team to further enhance its
financial services capabilities within the retail and commercial banking sectors.
Pharma exec Blair Hough was brought on board to work in the Princeton, N.J.-based
process and product engineering practice. Dr. Roger Edwards, who spent over 20
years in academia, the health care industry and government, joined the life sciences
and health care practice, and will be based in Cambridge, Mass.
In August 2005, Government Executive magazine named PA one of the top 200
contractors for the U.S. government in 2004, with contracts totaling $2.2 million that
year. A five-year contract extension was awarded to the firm in 2004 for a General
Services Administration engagement won in 1999, worth a potential $950 million.
PA will provide consulting, project management and survey research work for the
U.S. Agency for International Development (USAID) field missions in developing
countries. Federal and other governmental agencies worldwide will continue to draw
from the firms expertise in water, energy and environmental consulting through a
contract that has already brought in over $20 million since 2001.
Consulting in the Caucuses
In addition, PA is the only international consultancy to hold three infrastructure-
related contracts with USAID. Retained by the agency, PA has worked jointly with
government agencies and donors in the Americas, Europe, Asia and Africa to support
local governments, sustain the environment, carry out energy reforms and eliminate
poverty. In 2005, the firm worked in Armenia to generate access to water and heat,
and increase energy resources. The firm also ran an exit poll in Azerbaijans
parliamentary elections in November 2005 as part of the USAIDs strategy to
maintain stability in a traditionally contentious election environment. The exit polls,
however, drew criticism from local media outlets as both the opposition and the pro-
government questioned the objectivity of the polls, alleging they could be biased in
PA Consulting Group
favor of the rival camp. Some disapproved of PAs local polling partner, SORGUS,
referencing family ties between pollsters and the opposition party. Though PA
conducted polls in 65 constituencies, discrepancies between election results and poll
results were reported in only 10. The criticism also seemed unfounded when the
results showed 85 percent of the poll coincided with official election results.
Recognition and rankings
At the April 2006 Management Consultancies Association Management Awards, PA
strut its stuff, claiming six of the 19 top prizes, including the platinum prize of
Overall Winner for the best consulting assignment of the year, for its work with the
Government of Georgia and USAID for transforming the United Energy Distribution
Company of Georgia, the state-owned electricity company. The firm also received
five Gold Category Winner Awards.
In the October 2005 Sunday Times HSBC Top Track 250, a comparison of Britains
top private firms based on sales, PA came in at No. 8. The firm also continues to be
recognized for outstanding client work in the Management Consultancies
Associations annual awards, which are judged by an independent group of business
people, journalists and academics. In 2004, PAruled the awards, winning seven for
Best Practice Management.
GETTING HIRED
The crme de la crop
PAConsulting looks to hire people from pedigrees that rival any top show dog. The
London offices recruit from the top 10 universities in the country, and U.S. offices hit
up the Ivy League and MIT for candidates. Its really quite tough getting into PA,
one British consultant confesses, which I think is a good thing, as it means we hire
the best caliber people. Theres no set career path we look for when hiring, just a
good, solid CV. A colleague adds that, in addition to an impressive CV, on the
whole, PA selects only those with natural intelligence and a very strong work ethic.
PA expects a commitment from its consultants.
And while PA wants commitment from its employees, it also looks to invest in and
commit to its new consultants. After culling through recent graduates with top
honors, PAtries to hang onto the harvested hires. One employee says, Another thing
PA Consulting Group
I love about PA: You can make a career here. They dont hire undergrads for just two
years but, instead, with the intention of cultivating their talents and retaining them as
long-term employees.
Assault and test battery
Its no wonder they want to hang onto the best of the best, since finding them requires
such rigorous testing. In the U.K., candidates take the PAPI test and various aptitude
exams, and in the U.S., candidates participate in assessment days that evaluate
mathematical, verbal and comprehension, as well as a group exercise that evaluates
and emphasizes teamwork, which is a core aspect of consulting. Some employees
also report having to complete a presentation exercise and a group exercise. In
addition, PAassesses candidates character and IQ.
One consultant relates, An applicant has an initial screening interview with a
member of the HR team, then by a consultant, if the first interview is successful.
Finally, before an offer is made, the applicant must be interviewed by a partner
(usually the practice or departmental head). Other colleagues went through
anywhere from two to six separate interviewsover the phone, written and in
personin a span of two or three days. A portion of the interviews are one-on-one,
but its not unusual for candidates to encounter multiple interviewers at one time.
Before making a formal offer, interviewers must give a recommendation to proceed
on a consensus basis, and the final decision is made by the senior management. The
rigorous interviewing process may be intimidating, but it works, one employee
admits. We have hired some very good people, he continues, and recently, no low
performers, to my knowledge.
Asking around
Once the firing squad is lined up for the interviewing ordeal, candidates can expect
to be faced with pretty standard case questions, as well as some behavioral
questions. A source elaborates that typical questions are factand competency
based, focusing on the following qualities: drive, communication,
selling/influencing, problem solving and cooperation.
Specific questions depend on the interviewer, explains an employee. Typical
would be to ask the candidate to go through the analysis of the shock loading of a
mobile phone dropped on the floor. Another consultant recalls sample questions:
Can you please describe the most difficult problem you had to solve with a group of
more than three people? Please describe a situation where you had to tell a co-worker
PA Consulting Group
that he should do more. Case questions often revolve specifically around mobile
phones and video games, another insider reports.
OUR SURVEY SAYS
Across the pond
Whats so great about working at PA? As an insider states, its a well-recognized
company [that has] client confidence and a first-class staff. Acolleague elaborates,
saying that she likes the diversity of projects and consulting experience, as well as
fantastic colleagues, all working towards the common good. And while PA
consultants are hard workers, they also know how to have a good time. Says one
higher-up, PA is focused on providing a challenging but friendly and fun work
environment. In addition, the source notes, PA has extremely supportive staff
policies that are designed, and indeed effective when the time is needed.
Bridging the oceanic divide, PA has recently expanded out of its U.K. offices to
explore the U.S. consulting industry. Populated by very proactive self-starters from
both areas, Americans and Brits form friendships and butt heads. PA has an
interesting mix of British and American cultures, one employee says, and the mix
can be very entertaining at times, and caustic at others. For the most part, the people
are very talented and it makes them more enjoyable to work with than [personnel] at
other firms. ALondoner comments that the people at PAare hardworking, laddish
and committed to getting things done. They will try anything, he adds, which is
both a plus and a minus.
Regional divide
The British offices are well established, having been around longer. But in the U.S.,
PAis still developing its role on the American front, and is a horse of a different color.
Since the U.S. practices are relatively new and growing, one consultant says, the
culture is entrepreneurial in nature. Consultants are rarely stopped from taking up
additional responsibilities but they may not always be rewarded monetarily for that.
The U.K. might have been importing from the U.S. ever since the colonial days, but
to start off its U.S. division, the U.K. firm put the shoe on the other foot by
transplanting British colleagues to the States. Although pleasant, an employee
reflects, the culture of the organization is not international enough in some offices,
with a strong number of British employees (even in the U.S.).
PA Consulting Group
Top dogs
One PA analyst claims that he works with great people in an environment that is
very horizontal, alluding to PAs nonhierarchical management style. In general,
a source reports, PAhas a very good line management structure and culture. There
is no sense of hierarchy and everyone gets on as equals. PA employees also enjoy
comfortable interpersonal relationships with their co-workers and bosses. A
consultant reports that all senior managers are very open to suggestions and
encourage feedback. A colleague further explains, Project-based organization
means that managers can end up working for their direct report on assignments. This
is interestingand usually ensures good relations have to be maintained.
Some employees disagree, though, and one consultant thinks that, At a corporate
level, PA has a micromanagement approach, but this is felt a lot less within the
consulting practices, where practice heads tend to have a much more mature
approach to consultants. Another employee believes that the nonhierarchical nature
has its negatives, remarking that PA has no meaningful high-level strategy, and so
supervisor advice is often necessarily directionless.
Time is on my side (yes it is)
Though they work hard and travel their fair share, PAemployees enjoy their 45 to 50
hour workweekno better, no worse than the average consulting firm, remarks a
source. One consultant describes the work schedule as very flexible, and one that
allows you to focus on doing the best job, not [on] how many hours you work.
Despite the relatively moderate hours, PAconsultants still have their sticking points.
At PA, there is a strong emphasis on utilization rate, one consultant explains, and,
though they only spend about 45 hours at the office, an employee says that many of
his colleagues consistently keep on trucking and often put in more hours at home.
One employee gripes that the continual demand to work extreme hours in very
demanding environments, and then for this not to be recognized because of
inappropriate internal policy is frustrating and counterproductive.
The workload is more volatile in the less established U.S. offices, sources tell us.
One employee has noticed that PA is still small enough in the U.S. for there to be
big swings in work (feast to famine)sometimes everyone will be working hard,
then there will be periods of no client work. This is becoming better as PAgrows and
builds a smoother pipeline of work. Regardless of distribution of work, a colleague
echoes the thoughts of many peers, stating that he has no problem being able to
work as many hours [as] I feel are necessary on every assignment, so far.
PA Consulting Group
Hitting the road
Across the board, PA consultants feel the burdens of travel. When pressed on the
matter, one employee blandly remarks, Eh. Its a struggle. Often on the go, a
colleague agrees that, Its hardgenerally the worst thing most people say about the
company. One day a week in the base office makes it easier, however. Another
consultant elaborates: I have been traveling with only two weeks in the home office
(and three weeks vacation) for the past 15 months, I have no life to speak of at home
and I have spent more nights in a hotel room than in my own bed. PAis unwilling to
allow me to just remotely work to date, so I have to maintain an expensive apartment
in a place that I rarely see, this is the single worst part about working for PA.
Travel seems to be a heavier burden on U.S.-based consultants. A Massachusetts-
based employee complains that, for U.S. staff, where I normally work, travel is very
strenuous, as our offices are thinly scattered and some of us also have to work
assignments in Europe and Asia. But he suggests that things may be easier across
the ocean. The majority of staff is based in Europe and there is hardly pressure at
all as they mostly work in capitals where we have offices. His European
counterparts would beg to differ, however. One Londoner observes that consultants
are expected to travel on [their] own time. And other overseas sources reports that
travel at PA is no luxury cruise. PA encourages employees to focus on low-cost
travel, rather than convenience or comfort of the consultant, with a colleague noting
that a tight expense policy doesnt help matters. A nomadic lifestyle comes with
the territory and can be a major inconvenience, though an employee notes that travel
varies considerably from one assignment to another. And, looking on the bright
side, a colleague says that, as far as travel goes, I think were pretty average, but a
lot of our work is focused in cool cities (Ive worked in London, New York,
Copenhagen, Hong Kong, etc.). Better than traveling to Nebraska.
Curriculum, curricula
Employees report that PA has excellent training plans for softer skills, and even
opportunities to give training. PA has five days of formal training every year, and
one consultant notes that, in addition to good training curriculum, we often get to
travel to headquarters in the U.K. for training. PAs curriculum reportedly offers a
good range of courses covering all aspects of consultingtechnical and general
work.
With all of the travel demanded of PA consultants, though, its hard to find time to
squeeze in some training. One consultant explains that client activities always seem
PA Consulting Group
to take precedence, so I have seen rare training opportunities. Another insider who
hasnt had the chance to take advantage of many of these programs doesnt seem to
miss the formal training, though, claiming that the best training is still on the job,
and adds that official training courses are improving rapidly and actively. All new
consultants undergo formal training. But, with travel and client-oriented activities
to answer to, a colleague confesses that, Sometimes newbies are out on a limb.
Just say no
Acolleague agrees, and notes that, My company is very aware of the importance of
family and life beyond the workplace. I have often been thanked, personally and via
additional bonus for work above and beyond the call of duty. That helps. Some
employees who travel a great deal report that they dont spend enough time at home
but, on the whole, PAconsultants are pretty happy with their work/life balance. One
colleague says balancing home and office is not that bad for a consulting firm.
And, according to another insider, PA accommodates employees with flexible work
arrangements when extenuating situations arise. He remarks that traveling is a part
of a consultants life; however, since I broke my leg, the company has been extremely
empathetic and has allowed me to remain in my local home office to work until I am
fit to return to normal duties.
Some colleagues balance work better than others, but this, they say, is always a
personal choice. You have to learn how to say no, one consultant says, since there
is always more work to be done. A co-worker concurs: I choose when it is
important to put work ahead of family. So far my career has benefited by making the
right choices, and my family life is very good. Another employee says hes very
rarely asked to work weekends, claiming that its more a personal decision.
Not all employees find it so easy to just say no. Amoderate dissenter says that the
work/life balance at PA is passable, although much of a consultants spare time is
spent conducting internal, admin work or attending team meetings just to be
noticed. Without considerable effort to attend, you risk being lost in the promotion
pool as people dont know you, even if the quality of your work is high and you work
away from home five days a week. A colleague adds that practice get-togethers,
which are welcome events, are always over the weekend and means lost utilization
for the Friday beforehand. But generally, an employee summarizes, PA has a
very relaxed approach to the work/life balance. So long as the individual manages to
produce what is needed within the required timescales, your life is yours to run.
PA Consulting Group
Up and up, not out
Promotions at PA are purely based on merit. If you are good enough and perform
against set metrics, you get promoted, and another labels PAa performance driven
organization. A colleague expands on this, saying that promotion happens when
you demonstrate success at the next level. Positions are typically two to four years,
though a co-worker recognizes that speedier promotions are possible, and an
excellent performer can be promoted twice in a two-year period. If you play by the
rules (which are not that onerous), another consultant postulates, and manage to
meet you personal targets, PA lets you do pretty much what you want. Also, in the
U.S., PA is on a strong growth curve so there is a sense of greater and better
opportunitiesgood people can expect to be promoted quickly to the higher ranks.
But speed is not always the name of the game at PA. Says one consultant, Good
people advance quickly, if they want. Other good people have remained at levels that
are good for them, if they continue to maintain utilization. And one source explains
that speed of promotion is highly variable, determined equally by performance of
individuals and the business unit they belong to.
Nevertheless, all that glitters isnt indicative of a promotion. One PAassociate points
out that lately, there has been high attrition and a lot of layoffs in the past few years.
Morale is much less [positive] now than five years ago.
Carpe dime
Overall, sources are down on PA compensation. An insider shares that company
policy is to be at the market median, although we may be slightly below. He adds,
however, that in the U.S., there has been some rank inflation that may reflect
upwards salary pressure. A U.K. source misses out on that possible upward
movement, and feels that the firm provides limited compensation for extensive time
away from home.
To make up for any disappointment in compensation, PAoffers a share options plan.
Several consultants appreciate this offer, and take pride in the fact that the company
is employee-owned. One insider expresses the plan as a major plus, while another
reports that although trading is restricted to twice a year, the share prices rise
consistently above market rates. But the plan also rouses significant grumbling. An
associate expresses that PA makes a big deal of its bonus scheme, but overall, it
rarely meets individual expectations. The bonus is communicated to individuals as a
gross figure, so when you actually receive the cash in the bank, you are usually
disappointed, as so much as been removed in employers taxes, restricted share
PA Consulting Group
allocations, etc.! Others explain that the shares cannot be accessed if you leave the
firm within three years, which results in forfeiture of the profits. PA also offers
excellent health coverage, dependant care and flexible spending accounts. In
addition, the firm notes, it contributes 6 percent of eligible earnings into employees
401(k) plan at the end of each year.
Two apples a day
Some consultants feel that PA offers very few benefits in comparison to other
organizations. As one source bluntly puts it, Its really a money thing. Were pretty
minimalist elsewhere. An associate complains that the home office is rarely
occupied by more than administrative staff, so all office parties are thusly focused on
them. In addition, office parties are apparently scheduled during the workweek, so
that those of us who travel are never able to attend.
Other PAinsiders find reason to smile. In the Cambridge, U.K., office, the firm pays
100 per head on fresh fruit twice a day. A New Jersey-based consultant delights
at the free chocolate at the reception desk, while another grateful source adds that
the firm has only recently allowed alcohol to be expensed by employees. PAalso
makes sure its consultants are well clad. One associate is happy about the business
sports clothing provided for employees taking part in sports events. Others
appreciate that paid time off is one of the highest in the industry at 22 days.
Employees also have the opportunity to buy additional annual leave (up to seven
additional days).
PA consultants are also lucky to have recently refurbished offices in prime, prime
locations, even though some claim they dont have enough office space. One
employee reports being embarrassed that theres not always enough space at the
office to make clients comfortable, but most colleagues are excited that the offices
have been remodeled and redecorated and they are bright, modern and have a
wonderful energy to them. A source states that individual space is limited (space
= money), but it is individual, i.e., not hot desk. This is a major plus point.
An international feel
PA has been busy implementing a new program to get a leg up on diversity, and the
U.K. office seems to have the issue covered. One source states, We have a broad
range of all minorities, and most colleagues agree with that assertion. An insider,
however, notes that in his specific division there are very few ethnic or other
minority people, and continues, I dont think this is anything to do with policy, in
PA Consulting Group
fact Im certain its notthere are just very few applicants with appropriate
qualifications and/or experience from minority groups. In other groups, people feel
differently. PA has really made positive strides over the last two years, reports an
associate. He continues, Updated diversity and support policies have really
delivered cultural change to the firm.
The U.S. is still lagging a bit behind in the diversity category. Apparently, hiring is
very much white male-focused in the U.S., [but] not so much in Europe. A
colleague concurs that PAneeds more diversity, especially in the U.S. Between the
two landmasses, though, PA has a fairly continental look at minority hiring, [and]
race does not seem to be a negative factor in any way, nor a positive. The same
seems to go for sexual orientation. As one consultant states, People are judged on
their ability to perform in the job, not on their sexual preferences.
Femme fatality
Receiving high marks for acceptance of employees of differing race and sexual
orientation, women at PA seem to get the fuzzy end of the lollipop. One flippant
consultant blurts out that PAhas very few women partners, but hey, how many firms
can boast of women partners? A less dismissive colleague remarks, I have not
observed any sexual prejudice in hiring or promotion policy or practicethe number
of women in higher ranking positions is increasing as more filter through from top
class universities. The number of women graduates applying is probably equal to the
men now. PA might be promoting more women now than previously, but one
female consultant discloses that, There is still an element of a boys culture further
up the scale, which makes it more difficult to get recognition for your work as a
woman. However, the company is making an effort to promote women in the higher
ranks, although any change will take a while to be reflected.
A common complaint among PA employees is that there are not enough senior
women in the firms upper echelons. PA is actively undertaking a diversity
program to improve female/minority/disability representation in the workforce, a
consultant explains. But, a colleague believes that this implemented diversity plan
has no real teeth. There is a general consensus that mothers will not stick with the
firm long and [there is] no real attempt to combat this.
A new mother, however, has a different view. Some real strides have been made
over the last two years to improve our diversity policies. Afew years ago, I wouldnt
have considered it a possibility that I could work part time as a mother, she says.
This view has now changed completely. Another consultant agrees that, PA has
PA Consulting Group
really made positive strides over the last two years. Updated diversity and support
policies have really delivered the cultural change required in the firm, and I can
honestly say that I believe that PA generates a culture of trust, empowerment and
support.
Sweet charity
While some employees nickel and dime, PAs trend of improvement and
implementation of new programs applies to charity as well. We are due, one
consultant says, to set up a volunteering/giving back scheme soon. A colleague
concurs that corporate social responsibility initiatives have been developed over the
last two years and we have a significant number on the go at the moment. As one
employee explains, All consultants are permitted to spend up to three days per year
of company time on charity efforts. Larger pro bono [work] would have to be
negotiated case by case, and some return would be expected. A colleague notes
that, PAis becoming more relaxed about people working for charities, but the basic
policy is you can do whatever you like on your own time (this is improving, but
slowlycorporate is finding it hard to relinquish this control). Improvement is in
the air, and many employees reported using these three days to do pro bono
consulting for local schools and charities.
PA Consulting Group
PA Consulting Group
Since the U.S. practices
are relatively new and
growing, the culture is
entrepreneurial in nature.
PA Consulting source
500 East Pratt Street
Suite 1400
Baltimore 21202
Phone: (410) 951-4800
Fax: (410) 951-4895
www.fticonsulting.com
LOCATIONS
Baltimore, MD (HQ)
PRACTICE AREAS
Corporate Finance
Economic Consulting
Forensic & Litigation Consulting
Technology
THE STATS
Ticker Symbol: FCN (NYSE)
President & CEO: Jack B. Dunn IV
UPPERS
Negative politics are minimal
Hands down, the people
It is one of the best places to
learn the restructuring businesses
A very entrepreneurial place to work
DOWNERS
The upper-level people fail to
communicate sometimes vital issues
Limited focus on work/life balance
The person who requires recognition
will not be fulfilled at FTI
Sometimes consultants feel they
are left to sink-or-swim
EMPLOYMENT CONTACT
www.fticonsulting.com/web/about/
Careers.html
FTI Consulting
V A U L T
P R E S T I G E
R A N K I N G
50
THE BUZZ
Getting their act together
Several very reputable practices
Varies widely by location
Disjointed conglomerate
THE SCOOP
Bad times business
FTI serves corporations, financial institutions and law firms that are looking to avert,
or at least minimize, future risks. Regulation compliance and advice during litigation
proceedings make up the bulk of FTI engagements, but the firm also specializes in
business red-alert areas such as mergers and acquisitions, interim governance,
restructuring and company turnarounds.
Based out of Maryland, the firm focuses much of its work in the U.S., but also
maintains overseas offices in London, Melbourne and Hong Kong. Founded in 1982
by Daniel Luczak and Joseph Reynolds, the firms roots lie in the field of accounting
forensics, hence its strong offerings in the world of corporate trial support. FTI deals
with a lot of misbehaving companies; in May 2006, for example, the firm was
appointed as examiner in the U.S. Attorneys office case against the Bank of New
York, which had been recently tarnished by a Russian money laundering ring that
managed to clean more than $7 billion through ties to the banks senior
management.
Restructured
FTI did some restructuring in early 2004 and now divides its offerings into more
distinct segments. The firm splits its work into four main categories: corporate
finance, economic consulting, forensic and litigation, and technology consulting.
Within these categories are several subdivisions worth noting. FTI Capital Advisors
is a wholly-owned investment banking subsidiary that also provides due diligence
and IPO services. FTI Palladium Partners is FTIs team of interim management
professionals specializing in placing high-level senior management (CEOs, CFOs,
CTOs, etc.) with companies in need of a turnaround or searching for new leadership.
Flush with success
FTI has been doing quite well of late, but it wasnt always this way. The firm made
a name for itself in the dark days of 2001 to 2003 when Enron, WorldCom and other
corporate malfeasance cases made its services quite popular. The firm capitalized on
this early success by acquiring PricewaterhouseCoopers business recovery division.
But once the economy turned around and corporations got a grip on their
FTI Consulting
rambunctious CEOs, FTIs business flaggedin early 2004, FTIs annual revenue
dipped severely and staff attrition was high.
But this fallow period did not last long, as Sarbabes-Oxley and new regulations led
to a shift in FTIs business. Demand from law firms decreased, but engagements
from corporate boards began to rise. Today, law firm engagements make up only 30
percent of FTIs work. As FTI Chairman Dennis Shaughnessy stated in a December
2005 Investors Business Daily interview, Prior to Sarbanes-Oxley, boards were
willing to go down with the ship. Now theyre not willing to do that, so theyre hiring
people like ourselves to help solve problems faster.
Since 2004, FTI has seen quite a turnaroundrevenue rose $113 million to $540
million in 2005, and it looks like 2006 will prove to be another promising year. The
firms technology business is approaching $100 million in yearly sales, led by an
electronic document search product for Fortune 500 companies looking to satisfy
regulation compliance or in the midst of litigation.
Big names
On a high from its recent financial success, FTI has been on a hiring spree, acquiring
senior-level talent at a whirlwind pace. In September 2005, the firm made headlines
by snagging Energy Ventures Group Founder and Chairman Andrew Weissman, who
has been a rising star in the oil and natural gas industry. Despite airing several
unpopular predictions since 2002 (in the summer of 2005, he predicted oil prices per
barrel would smash through the $40 range and hit $65), hes been dead-on almost
every timemaking his advice some of the most sought after in the business. And
Weissman didnt waste too much time getting used to his new digs, in February 2006
he created FTI Energy Business Watch, an in-depth, subscription-based advisory
service with sole focus on the energy markets and short-term and long-term
forecasting, aimed at energy producers, traders, investors and users.
In November 2005, FTI Palladium Partners opened its first London office. To lead
the new facility, the firm went high-profile, eventually hiring Mark Palios as head of
U.K. operations. Palios was formerly chief executive for The Football Association,
the English soccer league containing such athletic titans as Manchester United,
Chelsea and Liverpool. Palios also has 20 years of experience in the turnaround
industrya skill he is going to need, as his office is dedicated to interim leadership
and turnaround services for companies in trouble. FTI also hired several prominent
U.K. executives in the retail sector to support Palios as he endeavors to expand FTIs
success in Europe.
FTI Consulting
Big numbers
Those are two of FTIs more newsworthy hires, but its worth noting that the firm has
been hiring senior managers right and left, beefing up many of its practices. The
April 2006 hiring of Adam Cohen as a director for FTIs technology consulting
services will strengthen the firms position on data management and litigation cases;
Cohen wrote one of the seminal books on the subject, entitled Electronic Discovery:
Law and Practice. The firm made a similar move in its tax practice, hiring taxation
guru Joseph Doloboff to its L.A. office later that month.
FTI has not been sneaking up on anyone with all these movesas early as December
2005 the Baltimore Daily Record reported that the firm was leasing office space in
downtown Maryland to accommodate 25 senior staffers it didnt have room for in its
Annapolis office.
Acquisitions, too
FTI has also been in an acquiring mood. In January 2006, FTI purchased
Competition Policy Associates in a deal worth $70 million. Competition Policy is
based in the D.C.-area and specializes in the financial and economic analysis of
regulatory matters. And in February 2005 the firm made a vertical move when it
acquired Ringtail Solutions Group for $35 million. The Virginia-based company
develops tools for litigation support and data management.
In August 2005, FTI bought Helios Consulting, a strategy adviser that specializes in
assisting senior executives to improve their companies when profits are sluggish.
And in May of that year, FTI picked up Cambio Health Solutions, a change
management and turnaround services provider to hospitals and clinics that specializes
in assisting senior executives when company profits need a boost.
GETTING HIRED
Getting in
FTI isnt big on campus recruiting, though some offices, such as those in California,
do pull candidates from a list of top area schools. Most candidates can simply submit
a resume online. For applicants who have been screened, there is typically a phone
interview followed by two or three face-to-face interviews. One colleague reports,
FTI Consulting
there are no tests or psychological evaluations, though general fit and behavioral
questions are to be expected.
Certain FTI insiders report having gone through more regimented hiring routines
than others. As one associate notes, [The] hiring process is lax, however, you have
a limited amount of time to make an impression once you have an interview, while
other offices report having more stringent hiring routines. AWest Coast source says,
We tend to do preliminary interviews on campus or by phone and then bring people
in for four half-hour interviews and a lunch. There are usually some technical
questions. After that, if you qualify, we will schedule an in-office interview. In the
office you should expect to be interviewed by four people, each 30 to 45 minutes.
Also two to three consultants or senior consultants will take you to lunch. FTI does
not have case study questions during the interview.
OUR SURVEY SAYS
From boho to stiff-necked
The firms culture is as wide-ranging as its numbers. An associate remarks, Because
our company is an ever-growing collection of boutique type firms, the culture varies
from office to office. The range is from bohemian to starched collar. And due to
the firms recent acquisitions, some employees think new FTIers still identify with
their old companies. Since groups have been acquired in several large chunks from
other firms, there seems to be some cliquish behavior between the various groups,
one admits. Another insider also acknowledges this tendency, but sees it changing in
the future. He says that individuals who come to FTI from the same company are
very cliquish; they are very selective about who they let in. I think this will be
changing as people grow and are promoted within the company and identify
themselves as an FTI employee not an ex-Andersen employee.
Despite cultural gaps within the firm, one analyst explains that little is done to unite
dissonant groups: The culture varies. Additionally, management and regional
leaders do little to build a united culture or team. And another echoes this sentiment,
claiming that not much is done on a social level to bring co-workers together.
However, it seems that these efforts differ from office to office, as consultants in
other cities enjoy the company culture, one even noting that his office environment
is extremely collegial. Another source says, There are a number of social and
community activities that bring employees together, and another goes so far as to
FTI Consulting
claim that it is the most cohesive and collaborative work environment Ive worked
[in].
A fine imbalance
Afew staffers praise FTIs flexibility when it comes to putting in time. The firm is
extremely flexible with personal engagements, providing an opportunity to work
remotely, and vacation time is valued, says a source. One junior consultant concurs:
This firm is one of the best in addressing work/life balance issues My manager
has been extremely flexible and has never given me a hard time or made me feel
guilty for needing to leave early for a doctors appointment, etc.
But these reviews would certainly come as a shock to the majority of FTI sources
who insist that the work/life balance at the firm is off kilter. An analyst complains,
Achieving work/life balance is a struggle at FTI. There is a feeling that each
employee is expected to be on call for the company, getting last minute work
requests on Friday evenings and often flying out to see clients on Sundays and even
holidays.
At a clients disposal
Several insiders attribute this unfavorable work/life balance to the firms billable
hour goals. An associate grudgingly states, The main focus at the firm is billable
hoursbillable hours take priority over any career development, training or
work/life balance. Others assert that the lack of flexibility can be blamed on the fact
that consultants have to be at the clients beck and call, which holds true for the
consulting industry as a whole. In consulting, the clients needs come first,
explains a director, adding, You can balance work and life, it just takes more
planning. Another insider agrees, It is difficult to balance work and life at FTI
because we are held to the demands and needs of our clients. Agood portion of our
work is in restructuring, bankruptcy or litigation work, which obviously are critical
situations.
Director-dependent
As might be expected for a firm with 32 offices, consultants hours vary across the
board. Most report that the average workweek is 45 to 55 hours, while some clock
70 hours or more on a regular basis. As one analyst puts it, There is no average
assignment. Asource agrees, They vary tremendouslypeaks and valleys. Some
weeks are very intense, but in general, the pace is very manageable. For a junior-
FTI Consulting
level consultant, scheduling largely depends on the demands of the manager and
client. Essentially, a staff-level employees life is dependent on the director or
managing director for whom he or she is working. I have been on many engagements
where the director chooses to work 15-hour days, eating lunch at his or her computer
and with no break for dinner; the staff is expected to do the same, confesses a
manager.
On call for clients
Weekend work is also split between consultants who arent required to put in any
time on the weekends and those who work at least 20 per year. One manager who
puts in over 25 weekends a year rants, I feel as if Im always working. Other
sources acknowledge the excessive work, but seem to take it in stride, attributing it
to the nature of the industry, rather than to an internal problem. Another colleague
moans, Directors have absolutely no qualms about calling staff late in the evening
or on weekends if there is a client need. I would assume, however, that this is the
case at most consulting firms. Again, client need dictates the schedule here. As
with any consulting firm, when deadlines draw near the work demands longer hours
and weekend work. However, during the normal course of business, [hours are] very
reasonable and the people respect each others personal lives and responsibilities, an
insider comments.
All or nothing
Travel is also hugely variable at the firm, depending on the office or the project.
Some individuals at FTI do not travel at all; others, however travel 100 percent of
the time. There is no general rule of thumb or guarantee on travel, according to a
source. Another consultant remarks, Travel is usually feast or famine. Occasionally
you get staffed on large projects that are not based in your home office and you will
travel for two to six months at a time. There are also more times when you are
working out of your home office for long periods of time with only short trips for
client meetings, etc. Some offices are known for sending consultants out more than
others, according to an insider who says, The Chicago office, for example, is known
for traveling the most, about 100 percent of the time, while the L.A. office is known
for traveling the least, maybe 40 percent of the time.
When consultants are on the road, there is no set schedule. One colleague reports that
formally, we have a 5-4-3 policy. Five days of work, four days out of town, three
nights out of town. However, given our client focus, we are only able to stick to this
FTI Consulting
policy if the client allows it (generally not the case). A source agrees: You never
know when you are going to be traveling or for how long; it is almost always longer
than you are originally told. Whether an employee is away from home one week or
12 months a year, insiders realize that travel is just the nature of the business. As one
employee acknowledges, Travel is a part of corporate finance consulting. If you
dont want to do it, dont become a consultant.
While you work
Contacts at the firm say official training is generally nonexistent. As one source
states, Most, if not all, learning is unofficial on the job. And an insider reveals that
training is somewhat ad hoc, but there is recognition that it is important. In the last
year some formalized training has been developed with the addition of two new
courses, Financial Modeling and Database Fundamentals, for associates. But even
with formal courses in place, FTI employees say learning as you go is the best way
to get familiar with the broad range of assignments. Says a director, My firm
provides specific training in modeling and financial statements and encourages
outside courses in related topics. But the work varies so much that you really learn
70 percent of what you will know on the job.
Depending on the location, some offices offer new hire orientation lasting from four
days to two weeks. Some locations also hold monthly bag lunches for staff
development. And a consultant notes, We also have very good training budgets
that allow for us to attend third-party training courses.
Friends and acquaintances
Employees relationships with management are either congenial or completely
absent, depending on whom you ask. Several insiders remark that they appreciate the
regular interaction with firm partners and client management. AMidwest consultant
says, We work very closely with top management, while a senior employee agrees
that partners are not only approachable but initiate relationships with staff and
frequently attend and sponsor happy hours [and] sporting events.
But many insiders argue that there is not a lot of conversation between upper
management and the rest of the firm. Amanager says, At least in my area, there is
a serious lack of communication among management levels. Other sources describe
the communication gap as an information bubble around the lower levels, and feel
that the firm is too much of a silo environment. These sources urge that top
management should do more to stay in touch with the individual offices, and more
FTI Consulting
importantly, Managers need to identify with FTI as a whole and relay the message
to everyone that they care about FTI and its people, not just themselves and their own
projects.
Talk to me
In contrast to their own management, insiders feel that the higher-ups within client
companies are usually willing to lend an ear, since FTI consultants are often brought
in during a time of crisis. An associate explains, Over the course of an assignment,
we develop strong business relationships with our clients senior management. A
colleague concurs, stating, Offices tend to be small enough to develop good
relationships with the entire team, including top management. My experience is that
there is an open-door policy and you can walk into anyones office to discuss matters.
Since we work in distressed situations, we usually have top managements attention.
Steadily paced
Promotion at FTI usually moves along at a predictable rate. Insiders say that
although the advancement policy isnt set in stone, most people who dont progress
every two or three years dont stay at the firm. I wouldnt call it strictly up-or-out,
but most people are expected toand expect toadvance (or they leave). There are
some special situations, though. Promotions generally occur every two to four
years, says a manager. One associate claims that the promotion schedule is a bit
more flexible than at other firms: [Its] mostly up-or-out, but not as rigid as a Big
Four firm. New consultants become managers in five to six years, on average. And
although it isnt essential to moving up, an advanced degree is helpful. As another
source reports, There is high emphasis on having a graduate degree of some kind,
so those with undergraduate degrees only are generally expected to leave after a few
years. Coming out of grad school, advancement can happen as quickly as skills and
experience warrant.
Another associate regrets that promotion also hinges on billable hours. The
promotion process is such that an employee whose time is 100 percent billable, but
spent working on a rather meaningless assignment, such as document review, will be
promoted over another employee that has been less than 100 percent billable, but
working on higher level analysis, he laments. And still, for those whose firms were
acquired by FTI, the promotion policy is vague. According to a consultant, I, like
most people, dont really know the promotion policy. Most people were promoted
when their company was acquired by FTI. Just this last year the company promoted
FTI Consulting
a lot of people. As a consultant, I see all the new in industry hires starting as senior
consultants or as consultants with the promise of being promoted at the end of the
year.
Not too shabby
Most junior to midlevel associates arent impressed with the firms compensation,
though it receives slightly higher marks from upper management. A source
comments, Compensation is on the low end of the premiere specialty restructuring
firms, which is not to say it is bad.
Yearly raises are standard at FTI. One associate reports, Average raises among my
peers this year were 12 to 20 percent. Several senior members at FTI report having
received a signing bonus, but thats not the norm. As for annual bonuses, there are
two separate bonus programs: One based upon chargeable hours, the other
discretionary, claims an insider. Another associate observes, The bogey isnt
always easy to hit and even if you do, the bonus hours usually arent substantial
enough to result in a meaningful bonus. There is a year-end bonus, which appears to
be for the more senior employees.
Purple cow perks
Like a lot of things at FTI, most perks depend on where you are based. However,
across the board, the firm has a stock purchase plan where employees are offered
the option to purchase stock at a 15 percent discount on the lowest offering price
during a six-month period and chargeable hour bonuses. According to a
consultant, working more than the target number of hours can be rewarded via the
CHIP program (charge hour incentive program), where after meeting a certain
requirement of billable hours, you receive a premium rate per hour paid to you
(senior consultants$35 per hour). Another employee raves, The PTO (personal
time off) plan is very flexible and generous. We get 20 or 25 days (based on level)
to use as we wish, plus another six specific holidays and four floating holidays. In
addition, there is a liberal 401(k) matching program but unlike most firms, we are
fully vested in their matching every pay period, notes a source.
Aside from these incentives, reports from all over the country tell of the different
perks employees receive in their respective offices. One employee says a favorite is
the Purple Cow Award for promoting a better office culture. Remarks an analyst,
There a number of perks that are office-specific. My office provides access to a
local health club, continuous snacks and drinks, occasional parties [and] parking for
FTI Consulting
senior people, while another also appreciates the free soft drinks and water that
his office offers.
Bursting at the seams
FTIs offices all seem to be struggling for space after the firms growth spurt. Were
growing quickly and running out of space faster than we can rent it, remarks a
manager. One insider grumbles about the state of things in the Houston office: Our
space in Houston is awful. It is ugly and not well planned. But the company is aware
of it and is working to improve the situation in the short-term future. Yet some
contend that the problem relates to organization rather than space. This is an issue
that was sort of swept under the rug. There are a lot of more important things senior
managers need to deal with and fix, but in my office the space is completely
disorganized. It doesnt matter if you need paper, ink, stapler, etc. No one can find
anything. It is very frustrating walking around the office just to find printer paper,
a disgruntled employee asserts. However, a Boston colleague is notably happy in his
corner of the world, boasting that his is a great office space in scenic Harvard
Square.
Women in the workplace
FTI insiders say the firm could do better when it comes to retaining women. Asource
reports there are very few women in upper-level positions, and another agrees that
there are many directors who are women, but at the managing director and senior
managing director level, most are men. The drop in the number women at the top
could be a result of a conflict between family goals and job demands, some suggest.
A colleague explains that the firm is very receptive to women. However, not a lot
of women want to do the required travel after children. Another manager suggests
creating a formal retention/mentoring program for women as a way to get women
to stay on for the long haul.
A female consultant claims that she is quite satisfied with the way the firm handles
diversity: As a women, I have never felt discriminated against, nor have I ever seen
any discrimination on any basis (race or otherwise). I think that promoting a
thoroughly gender-, race- and orientation-netural culture by far gives the best
impression, because everyone knows that they were hired because of their merit and
not for some quota.
FTI Consulting
Open but not proactive
When it comes to sexual orientation, employees agree that the firm successfully
promotes an open and accepting culture. Based on my observations, the firm has
been very supportive of diversity with respect to gays, lesbians and bisexuals,
affirms a source. An associate remarks, I am a gay man, and I know of no other gay
men or women at the company. Im out at work and it does not seem to be a problem.
I dont think that it is an issue. Acolleague confirms, [I have] never witnessed any
type of bias during my tenure here.
And with respect to minorities, an insider says, The firm seems to be receptive, but
not terribly proactive, and another reports, We have a minimal ethnically diverse
workforce.
Giving back
Some sources are unaware of the community service involvement going on in the FTI
offices. One insider says, During the summer, some offices organize volunteer
events, but the firm does not promote charity work, pro bono or tutoring at all, and
another states, I believe the firm is open to it, but does not actively seek these out.
Some offices seem to be more active in the community service arena than others, and
one consultant lists Light the Night for the Leukemia and Lymphoma Society, NY
Cares and various breast cancer charities among the organizations receiving firm
support. And a manager notes that every manager and above in my office is on a
charitable board, [and there are] several office-wide charitable events every year.
FTI Consulting
xxxx
THE BUZZ
THE BEST
OF THE REST
Abt Associates Inc.
55 Wheeler Street
Cambridge, MA 02138
Phone: (617) 492-7100
Fax: (612) 492-5219
www.abtassociates.com
LOCATIONS
Cambridge, MA (HQ)
Bethesda, MD (2 offices)
Chicago, IL
Durham, NC
Hadley, MA
Lexington, MA
PRACTICE AREAS
Behavioral Health
Biostatistics & Epidemiology
Business Research
Child & Family
Clinical Trials & Registries
Community & Workforce
Education
Environment
Health Economic Research & Quality
of Life Evaluation Services
Health Policy
Health Research & Consulting
Housing
International Economic Growth
International Health
Public Health & Epidemiology
THE STATS
Chairman: John Shane
President & CEO: Wendell Knox
UPPERS
Possibilities to make a difference at
work
DOWNERS
Government work can be tedious
at times
EMLOYMENT CONTACT
E-mail: webmaster@abtassociates.com
2006 Vault Inc. 602
THE BUZZ
The best general policy wonks in
the business
Better work/life balance
Not always the most practical
Geeky
THE SCOOP
Consultant in civvies
Abt Associates has been in business a long time; Founder Clark Abt started the firm
back in 1965 with one tiny office above a machine shop in Cambridge. His idea was
to apply a rigorous research-based approach to tackle government concerns and
industry problems. Abt had served time with the United States Air Force, as well as
with technical defense company Raytheon, and wanted to take some of the high-level
technology the military pioneered and adapt it to the civilian world. This strategy
eventually mixed with a dose of the social sciencesAbt had steered the company
into taking on big societal projects involving aid programs, housing and education; a
methodical approach to human problems became essential to the firms success.
Today, thats exactly where Abt Associates standsa firm that mixes research, social
sciences and technology to solve problems. Abt Associates applies this approach to
studying the roll-out of pharmaceuticals, the prevention of disease, the effectiveness
of environmental regulations and the practicality of new education programs.
Making money, and a difference
Abt Associates engagements set it apart from rivals. In fiscal 2005 revenue from
international business was roughly equal to domestic business for the first time. That
fact should come as no surprise, really, since Abt Associates tends to go where the
trouble is, and has worked in Iraq, Afghanistan and other hot spots. For instance,
the firm signed a $10 million contract with USAID in 2003 to revamp Iraqs
inadequate health system. Indeed, Abt Associates list of engagements reads like a
roll-call of current social problems.
But despite its work in some of the troubled and impoverished regions of the world,
it would be incorrect to lump the firm with nonprofit humanitarian groups; Abt is a
hired gun with a conscience, and making money is a part of the deal. In fact, almost
80 percent of Abt Associates work comes through government contracts.
Still based in Cambridge, Mass., Abt Associates consultants work out of seven
corporate offices in the U.S., but the company maintains 40 project sites in 31
countries in places as far-flung as Azerbaijan, Ghana, Kazakhstan and Tanzania. The
research and consulting firm covers four major marketsdomestic public policy,
international development, clinical research and business solutionsand its clients
include U.S. federal, state and local governments, international organizations,
foundations, nonprofit associations, and business and industry. To serve these varied
Abt Associ ates Inc.
interests, the firm offers cost-benefit analysis, economic analysis, evaluation, large-
scale survey research, strategic planning, clinical research, performance
measurement, policy analysis, program monitoring, statistical analysis, training and
technical assistance.
IBM buy
Abt Associates made a big move in March 2006, acquiring IBMs public sector
business consulting unit. The IBM team (which, up until 2002, had been a part of
PricewaterhouseCoopers) focused on services for the U.S. Agency for International
Development. USAID was created to bring economic growth and democratic
institutions to developing countriesAbt Associates already had significant
contracts with the agency, but adding the IBM group gives it even further penetration,
and an immediate $10 million boost to its revenue. Money aside, the deals
importance stems more from the nature of the contracts inherited from the IBM team.
As Abt Associates CEO Wendell Knox said in a March 2006 Washington Post
interview, they are contracts with very large ceilings. Knox also noted that about
75 to 80 percent of Abt Associates business is with the federal government and that
its annual business with USAID totals about $80 million to $85 million.
Engaging engagements
Many of Abt Associates international engagements come through the Partnership for
Health Reformplus (PHRplus) and other USAID programs. In December 2005, the
firm was sent to Ghana to prepare the country for a possible outbreak of avian
influenza (bird flu). Earlier, the World Organization for Animal Health had found a
lethal strain of the disease in nearby Nigeriawith millions of people keeping
poultry in their backyards, the threat of an epidemic loomed. In a March 2006
NewsRx article Abt Associates Disease Surveillance and Response Specialist Jim
Setzer said, We looked at the capabilities of various services and agencies in Ghana
to deal with an outbreak of AI. Our objective was to clearly define the actions and
resources necessary to further strengthen the existing capacity in the wildlife,
veterinary services and human health sectors so that they can adequately prepare for,
and respond to, the threat of AI by strengthening existing structures and coordinating
activities in an efficient, timely manner.
Doing domestic good
Not all of Abt Associates projects are overseas, though. In February 2006, the
company won a contract through the U.S. Environmental Protection Agency to
implement stratospheric ozone protections. Donald McCubbin and Ellen Post, two
2006 Vault Inc. 604
Abt Associates PhDs conducted the study, which estimates the benefits from
enforcing existing regulations governing ozone levels. In June 2006, they were
awarded the EPAScience and Technological Achievement Award for their work. The
firm also won an earlier EPA contract in September 2005 to assist in protecting the
nations water supply from a terrorist attack.
Another domestic project was summarized in a January 2006 Abt Associates report
entitled, College as a Job Advancement Strategy: Final Report on the New Visions
Self-Sufficiency and Lifelong Learning Project. The report, part of a three-and-a-
half year project funded by the U.S. Department of Education (which began in April
2005), criticized a government community college training program for welfare
recipients. The firm will further investigate the effectiveness of government-funded
student mentoring programs and how successfully mentoring programs use allocated
funds. The group will also examine the impact of such programs on behaviors, such
as drug use, delinquency, school dropout and gang involvement.
PhDs aplenty
In January 2006, Dr. Junius Gonzales joined Abt Associates as an expert in mental
health. Gonzales is a heavy in the industry, formerly serving as acting director of the
National Institute of Mental Health. Dr. Richard Kulka was added to the team in
August 2005 as VP of strategic business development, after serving as a senior
manager for RTI International. Note that both recent hires hold advanced degrees
a scan of Abt Associates employee profiles shows that this is no rare trait: PhDs are
plentiful.
Balance and employee owners
Abt Associates was singled out by the American Marketing Association in 2005,
which placed the firm 18th on its list of top 50 U.S. market research firms, and 25th
among global research firms. According to Consulting Magazine, Abt Associates is
also a great place to work. In 2005, the firm was ranked by the magazine as one of
the top 10 consulting companies in the category of Work/Life. Abt Associates
made the list for scoring high with its staffers in terms of personal perks, health and
well-being. Abt Associates is one of the largest employee-owned companies in the
U.S., perhaps one contributing factor to employees reported satisfaction.
GETTING HIRED
Point and click
Abt Associates web site contains an online form that allows you to paste a resume
right into your browser and send it to the home office. Doing so may lack a personal
touch, but its awfully convenientand its the method Abt Associates prefers.
While online, make sure you check out the firms employment opportunities
section; the link is tiny and can be hard to spot, but is definitely worth a click. Once
there, youll have access to an impressively comprehensive list of postings. Detailed
job descriptions are provided, and advertised positions range from IT guru, to finance
expert, to senior manager, to rookie consultant.
Once you get your foot in the door, reports are that the interview process is pretty
standard, with a half day of interviews with a variety of managers. One hire says
these sessions tend to be low key and informal. Also, dont be surprised if the firm
acts fast if it needs to fill a position. An insider who experienced quick turnaround
reports, I had one half-day interview with about six people. During lunch they told
me that I would receive the offer that I was looking for (I did). Then I paid a second
visit and accepted.
2006 Vault Inc. 606
Affiliated Computer
Services, Inc.
2828 North Haskell Avenue
Dallas, TX 75204
Phone: (214) 841-6111
Fax: (214) 821-8315
www.acs-inc.com
LOCATIONS
Dallas, TX (HQ)
More than 750 offices around the
world in nearly 100 countries
PRACTICE AREAS
Business Process Outsourcing
E-solutions
Information Technology Outsourcing
Systems & Integration
THE STATS
Ticker Symbol: ACS (NYSE)
CEO: Mark King
UPPERS
Health care biggie
Worldwide presence
DOWNERS
Still building name recognition
Niche
EMPLOYMENT CONTACT
www.acs-inc.com/career/index.html
THE BUZZ
New, fast-growing player
Takes care of their people
Not a great fit for large national
firms
Merger hell
THE SCOOP
Big-league BPO
Affiliated Computer Services is an outsourcing company with over $4.35 billion in
revenue. It offers a suite of IT-oriented services such as data center management;
disaster recovery, network management, security services, storage solutions and
transition services for human resources. The brainchild of Darwin Deason, ACS has
built quite a name for itself since its founding in 1988. Deason created the firm when
he rallied in IT pros to work with clients on IT outsourcing projects and systems and
integration services. In fact, ACS claims to have pioneered the concept of providing
BPO services on a grand scale. At first, the firm gained clients in the financial
industry, followed by engagements in the communications, education, energy,
government, health care, insurance, manufacturing, retail and transportation sectors.
The company has amassed a client roster of top commercial and government
organizations, and specializes in business process outsourcing, information
technology outsourcing and systems integration. ACS is a recent addition to the
Fortune 500 list, coming in at No. 460 in the July 2005 rankings. Headquartered in
Dallas, Texas, ACS employs over 55,000 people worldwide and serves clients in 100
countries.
Newly crowned King
In October 2005, Mark King took the reins as CEO after Jeff Rich left ACS to pursue
other ventures. Rich, a 16-year veteran, had served as CEO since the founder,
Deason, stepped down in 1999. He left the company with a $4.1 million payout and
a contract to conduct future business with the company. King, who had been serving
as president and COO, still retains his presidential role. An employee of ACS since
its founding, King continues to work closely with Deason, who now serves as
chairman of the board.
Big fish eat the little ones
The firm built itself up through a several strategic buys in the 1990s. In 1996, ACS
became the largest outside provider of data processing services in the nation when it
purchased Genix Group for $135 million. Other acquisitions during the decade
include BRC Holdings Inc., a developer of computer and management systems for
health care organizations and local governments; Boston-based Unclaimed Property
Services, a division of State Street Corp.; and Medicaid software and services
specialist Consultec. By early 2001, the firm had consumed around 50 companies.
Affili ated Computer Servi ces, Inc.
2006 Vault Inc. 608
Wheeling and dealing
In 2000, ACS changed direction somewhat, selling off some units to balance its
business portfolio with commercial and government clients. But it didnt stop its
spending spree entirely: In August 2001, the firm bought both the business
processing unit of National Processing Co. for $43 million and IMS Corporation, a
Lockheed Martin subsidiary, for $825 million in July 2001. As part of a plan to
expand into the student loan processing business, ACS acquired FleetBostons
Financial Corp. education services unit for $410 million in June 2002. The company
started 2003 with the purchase of CyberRep, a customer care and customer
relationship management services provider. Meanwhile, the firm enjoyed financial
favor while racking up long-term, multimillion-dollar contracts with high-profile
customers like Blue Cross, American Express, General Motors and the Department
of Education. Also in 2003, ACS made an interesting swap with Lockheed Martin,
when the two firms agreed to sell separate IT services units to one another. Lockheed
purchased ACSs federal government tech services business for $658 million, and
ACS bought Lockheeds commercial information technology business for $107
million.
The firms 2004 acquisitions included Patient Accounting Services Center, a billing
and collections services provider to the health care industry; Truckload Management
Services, an online document management processor for the trucking industry; and
BlueStar Solutions Inc., which oversees e-mail messaging systems. In mid-2005
ACS completed its purchase of Mellon Financial Corp.s HR consulting and
outsourcing business for $405 million. The firm made a few more acquisitions in
2005, including the $32 million purchase of LiveBridge, a global customer services
company, and the $104 million transport revenue division of Ascom AG, a Swiss
communications company. The firms latest strategic acquisition came in July 2006,
when it announced plans to purchase Primax Recoveries, a health care recovery firm.
The $39 million acquisition will enable ACS to expand its payor services.
Pulling off profits
ACS pulled off a profitable 2005, posting a revenue of $4.35 billion, up 13 percent
from 2004, excluding revenue associated with 2004s divestitures. The firm seems
on track to continue its winning streak in 2006, announcing that by midyear, it had
set a record for new business, signing $251 million in annually recurring revenue.
Rumors began to swirl in late 2005 and early 2006 that ACS may be put up for sale.
In January 2006, the firm broke its silence on the matter, announcing that it had called
off unsolicited discussions with a group of private equity investors angling to buy
the firm. However, the firm said, it was still considering ways to enhance value for
shareholders. A few weeks later, ACS announced a plan to borrow money to buy
nearly half of its outstanding shares, delighting investors who sent ACS stock
skyward. In February 2006, the firm filed papers with the Securities and Exchange
Commission, indicating that it planned to cut up to 1,700 jobs and reduce operations
in one of its Mexican near-shore services centers. According to the documents, the
positions to be cut were mainly in offshore processors and related management.
The firm said it also planned to cut costs by selling a corporate jet.
Superior yesterday, ACS today
ACS Healthcare Solutions is the newly minted consulting group that formed in January
2005, after the firm completed its December 2004 buyout of Superior Consultant
Holdings. This division serves hospitals and health systems, other care providers,
payers and health plans, as well as state and federal government agencies. Prior to the
Superior purchase, ACS already had a strong presence in the health care industry. It is
the nations largest pharmacy benefits manager for the U.S. government and processes
more than 450 million Medicaid claims annually. ACSs entrance into the health care
consulting world was seen by industry insiders as a move to help push its already
successful IT outsourcing services by coupling them with business advice. According
a February 2005 Health Data Management article, Superior had the expertise in
helping hospitals select and implement information systems that ACS lacked.
Outsourcing and?
So far, it seems that ACS Healthcare has been leveraging the outsourcing capabilities
of its parent firm and throwing in a bit of old fashioned business strategy advice for
good measure. The consulting wing is able to offer traditional ACS services, such as
NetLinc, a remote, networked help-desk, and secure data warehousing in ACSs
Michigan processing center. Those are just a couple of examples; really, ACS has a
whole gamut of IT-related services available for outsourcing, and is able to meet most
IT needs of hospitals and health care networks. As far as its business strategy
offerings go, ACS specializes in HIPAAcompliance (the Health Insurance Portability
& Accountability Act, passed into legislation in 1996), facility planning, patient
safety, general operations improvement and financial improvement.
A preferred provider
Since its inception, the health care group has been raking in lucrative contracts in the
private and public sectors. In May 2006, ACS Healthcare was awarded contracts
with OhioHealth and New Mexicos Presbyterian Healthcare Systems, both nonprofit
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state health care providers. In October 2005, it signed a multimillion dollar contract
with UMass Memorial Health Care, Inc., a prominent care network in Massachusetts.
Later that month, the firm inked another big deal, this one for $58 million, with
Princeton HealthCare Systems.
And ACS brought home some hardware in its first year on the job, being awarded the
Highest Scoring Professional Services Firm prize by KLAS, a consumer report-type
information service focused on the health care industry. In 2005, ACS also claimed
the No. 2 spot on the Healthcare Informatics list of 100 top health care IT service
providers. The health care solutions division reported 27 percent growth, with $1.5
billion in revenue in 2005.
State of the art in Medicaid
The firms federal business has been on the wane in recent years, and the firm
divested a good portion of this business in 2003, including contracts with the Air
Force. But ACS retains a solid relationship with many states, helping them handle
the tech side of programs such as Medicaid, and has recently been able to rev up its
business in this arena. ACS made headlines in July 2006 when it signed a $12 million
contract with the state of Floridas Health Care Administration, and in May, it won a
$100 million contract renewal with the state of Mississippis Division of Medicaid.
In January 2006, the firm entered a 20-month, $11.6 million contract amendment
with Louisianas health department to expand its Personal Care Services operation,
which helps state residents request long-term home care. ACS was also awarded an
$82.5 million contract with the state of New Mexico Human Services Department in
October 2005 for full fiscal agent services, covering administrative duties such as
Medicaid system management. And in January 2005, ACS signed a five-year, $65
million contract to develop New Hampshires Medicaid system. The firm also is the
largest government program pharmacy benefits administrator in the nation, serving
26 states and the District of Columbia.
An Rx for outsourcing
ACSs recent IT outsourcing wins include a December 2005 contract with DriveTime
Sales and Finance Corporation, valued at $4.8 million. The firm will help install new
loan servicing and collection technology for DriveTime. An even bigger win came
in August 2005, when ACS was tapped by GlaxoSmithKlinethe second-largest
pharmaceutical company in the worldto provide remote server management and
monitoring services under a deal valued at more than $100 million. The firm has
worked on IT projects with GSK since 2003.
ACS has been making similar headway with its business process outsourcing
contracts. In February 2006, the firm was awarded a three-year BPO contract to
provide call center services for Johns Hopkins Health Care. The firm inked another
$56 million BPO agreement in January 2006 with Aetna, an ACS client since 1999,
covering document preparation, imaging, storage, management and retrieval services
for medical, dental, disability and other types of claims. Another BPO win came that
same month, when the firm announced a three-year contract to process student loans
with KeyBank National Association.
Passing the Buck
ACS also provides HR and benefits consulting services through its subsidiary Buck
Consultants. In February 2006, the firm signed a contract with the Pension Benefit
Guaranty Corporation (PBGC) to continue providing benefit consulting and
administration services, as its done for the past 15 years. In January 2006, Buck was
tapped to provide actuarial and consulting services for the state of Alaskas retirement
plans. In June 2006, one of the groups principal consultants, Paul Sailor, was named
to Consulting Magazines Top 25 Most Influential Consultants list for 2006.
Tickets to ride
ACS also derives a healthy portion of its revenue from innovative solutions for
transportation through its recently acquired transport revenue group. It is the largest
provider of transportation services to governments worldwide and provides toll
collection, transit fare collection, parking fare collection, transportation safety
enforcement, transportation violation collection and port management, among other
services. In January 2006, the Metropolitan Transit Authority of Harris County
(MTAHC) in Houston, Texas, tapped ACS to install a new contactless ticketing
system for the areas bus and light rail transportation network, a contract worth $14
million. The firm has deployed similar solutions using smartcard technology in
international locations, including one up and running in Lyon, France, and another on
the way in Zurich, Switzerland.
Due east
Along with its acquisitions-driven growth, the firm has spread its workforce to far-
flung places around the globe. In May 2006, ACS opened a technical development
center in Kuala Lumpur. The facility will provide network and desktop engineering
solutions, system engineering services, mainframe support, application management
systems, customer care and human resources services. ACS plans to employ 700
workers in the center by 2007. In January 2005, a new global services center was
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opened in Tianjin, Peoples Republic of China, with an initial workforce of around
200. The center supports BPO and IT services. And in November 2003, ACS opened
an outsourcing services center in Fiji as part of a larger plan to expand operations in
the Asia-Pacific region.
Legal skirmishes
In recent years, the firm has had its share of legal woes. According to a February
2006 article in the Edmonton Journal, ACS was charged by the Royal Canadian
Mounted Police with offering secret commissions to two Edmonton traffic officers
in a scheme involving a traffic photo ticketing system. According to the article, ACS
has a $3.2 million-per-year contract with Edmonton that includes an annual fee and
bonus for photo tickets issued that catch speeders and red-light runners. The case is
slated for trial in Canada later in 2006.
In another scuffle, the firm faced an SEC investigation in early 2004 for its contract
procurement practices in Florida. A report compiled by the Inspector General of
Florida revealed that ACS was paid $7 million in total fees, with $1.4 million of the
fees from performance-based payments, during the 2002-2003 contract period. ACS,
which vowed to cooperate with investigators, said the report also identified
examples of possible false job placements and wage manipulation which could have
resulted in certain performance-based payments.
Superior lingering, Aquarius descending
ACS keeps public tabs on the industry, publishing two newsletters on health care
perspectives. Both retain the Superior moniker of the companys previous
existenceexpect that to change in the future as the company becomes fully
integrated into ACS. SuperiorView takes an outside-the-box approach, with articles
focused on future possibilities and larger trends in the industry. For example, an
article entitled Implementing Clinical Information Systems Takes a Cultural Shift,
puts forth the brazen idea that an older generation of doctors is holding the medical
world back by its reliance on traditional pen and paper for record keeping.
SuperiorHealth has a more nuts-and-bolts stance, with briefs on regulations
compliance and pertinent new legislation. ACS staffers are also encouraged to
publish and are given wide latitude in the variety of their opinions. Jeff Bauer, a
senior VP at the company, in a March 2006 issue of Healthcare Information
Management, tackled science fiction, Easy-Rider and Bob Dylan in his assertion that
we have not entered the Age of Aquarius, but an IT-supported team is a vast
improvement over uncoordinated practitioners using paper records.
GETTING HIRED
Seeking experienced hires
The ACS web site is the first place to go for information on available positions.
Openings with the company are searchable by title, category, division, keyword and
location. Applicants can also build a profile and post a resume online. Though the
firm seeks mostly experienced hires for consulting roles, it offers internship
opportunities for undergraduate and graduate students (with a minimum 3.0 GPA)
working toward a degree in business, computer science, management information
systems or computer engineering. These positions typically run from May through
August.
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Alvarez & Marsal
600 Lexington Avenue
6th Floor
New York, NY 10022
Phone: (212) 759-4433
Fax: (212) 759-5532
www.alvarezandmarsal.com
LOCATIONS
New York, NY (Global HQ)
London (European HQ)
PRACTICE AREAS
Business Consulting
Customer & Channel Solutions
Financial Leadership/CFO Solutions
Human Resources Solutions
Information Technology Services
Outsourcing Advisory Services
Strategy & Corporate Solutions
Corporate Finance
Dispute Analysis & Forensic Services
Healthcare Services
Public Sector Services
Real Estate Advisory
Tax Advisory
Transaction Advisory
Turnaround Management &
Restructuring
Crisis & Interim Management
Debtor & Creditor Advisory Services
THE STATS
Co-CEOs: Tony Alvarez II &
Bryan Marsal
2006 Employees: 800 (worldwide)
2005 Employees: 600 (worldwide)
UPPERS
There is plenty of opportunity
here to show your stuff
Variety and breadth of experience
Thorough annual performance review
process
Morale!
DOWNERS
Not a huge consulting name to
put on the resume
No clear path to the next level
No formal training
Knowledge-sharing resources and
infrastructure still poor
EMPLOYMENT CONTACT
E-mail: hr@alvarezandmarsal.com
THE BUZZ
Excellent turnaround consultancy
Up and coming
Aggressive
For wannabe investment bankers
THE SCOOP
A&M to the rescue
Alvarez & Marsal first appeared on the consulting scene in 1983, specializing in
helping troubled companies with debtor management and advisory services. The
corporate turnaround game is still a primary focus and core business of A&M, though
these services now encompass operational, financial and process consulting, as well
as a comprehensive mix of professional services. Now a global professional services
player, the firm maintains offices in the U.S., Europe, Asia and Latin America.
A&M, which doesnt publish its internal numbers, reportedly employs around 800
professionals.
Mr. Fix-Its take on the big guys
Privately held and owner-operated, A&M is very much a reflection of the
personalities of its founders and co-CEOs, Tony Alvarez and Bryan Marsal. Alvarez
was formerly a partner in a Big Eight accounting firm and then a VP at Norton Simon
Inc., where he worked with Marsal, who previously served as a VP in the loan
recovery division of Citibank. Both served as in-house Mr. Fix-Its at their previous
jobs, and decided to join forces over a round of golf, vowing to challenge the legions
of consultants who got bogged down in details and were afraid to radically change
the companies they were trying to save, according to BusinessWeek. The firms
founders have described A&Ms approach as tactical, rather than strategic,
noting, our view is from two feet, not 20,000 feet.
A&M formed its business consulting division in 2004, hiring a slew of industry vets
from high-profile positions at BearingPoint, Answerthink, Accenture and other firms.
Under its business consulting arm, A&Ms services include strategy and corporate
solutions, information technology solutions, finance solutions geared toward
improving processes overseen by the office of the CFO, human resource solutions,
supply chain solutions, customer and channel solutions, and outsourcing advisory.
Through other divisions, the firm offers a broad range of services, including
turnaround advisory, crisis and interim management, performance improvement,
creditor advisory, corporate finance, transaction advisory specifically geared toward
private equity firms and hedge funds, commercial and not-for-profit health care,
public sector, dispute analysis and forensics, real estate and tax advisory. Its
professionals consult across a wide range of industries, including
telecommunications, retail, health care, transportation, apparel, technology,
manufacturing, financial services, power and utilities, and the public sector.
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A five-point plan
Still, the firms founders are most well known for the art of the corporate turnaround.
The firm practices a five-step approachoriginally honed in restructuring
assignmentsthat has been adapted across other service lines for consistent speed-
to-execution: stabilize, diagnose, plan, facilitate and lead. In the first step, A&M
helps stabilize a client by securing cash where needed and supporting or
supplementing the clients management team. To diagnose a clients situation, the
firm practices a thorough operational and financial due diligence processsuch
skills come in handy in the days of increased corporate oversight through regulations
like Sarbanes-Oxley. Next, the firm develops a strategic turnaround or performance
improvement plan, addressing challenges and building on the clients core strengths.
Finally, A&M works to forge a consensus among interested parties to implement the
plan, and helps the existing management team implement it, or even steps in to
provide interim management itself where needed. The firm profits from turnarounds
that work, often receiving success fees that are typically calibrated based on a
clients improved metrics over a period of time.
Corporate saviorswith attitude
An October 2004 BusinessWeek article profiling the firms cocky and intense
founders gave a sense of their hard-charging style. At the time, Alvarez was hard at
work helping to turn around bankrupt Interstate Bakeriesfamous for its Wonder
Bread and Twinkies. At the outset of the companys still-ongoing restructuring,
Alvarez was appointed as interim CEO of the baking giant, with other senior
members of the firm serving as key managers and advisors as well. Meanwhile,
down South, Marsal was recovering from a 15-month stint as chief restructuring
officer of troubled rehabilitation services and outpatient hospital chain HealthSouth,
which was flirting with bankruptcy; Marsal and his team later managed to avert a
filing and restore the company on the road to health. HealthSouth founder and CEO
Richard Scrushy, whose name has joined the ranks of Ken Lay and Jeff Skilling in
the annals of corporate malfeasance, left Marsal with quite a mess to clean up,
including a $2.7 billion fraud. As Alvarez put it, We [in the restructuring division
of A&M] come to companies at their worst moments in life, and we save them.
Maintaining objectivity
The firms direct approach, involving strong, quick decision making, is not without
controversy, the article noted. A&M consultants are committed to shaking up the
status quooften, its these old habits that got troubled companies into quicksand in
the first place. Additionally, competitors have charged the firm with cozy industry
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deals, such as hiring six former top turnaround specialists from Arthur Andersen at
the same time Marsal was helping to dismantle the crumbling accountancy. But
A&M actually prides itself on independence and objectivity; in the case of Andersen,
Marsal contended, A&M bought out a select group of Andersen staffers contracts
with the boards blessing, as the firm was exiting all its existing businesses. The firm
also faced criticism in 1996 when it crafted a plan that allowed an investment firm to
buy a bankrupt apparel maker without a public auction, providing an extended CEO
position for Marsal and an equity stake for A&M. Since then, however, A&M has
instituted a rule that bars it from investing in either client companies or in investment
firms that may be interested in buying distressed clients.
This wasnt the firms only brush with controversy. A March 2005 Wall Street
Journal article described the case of a former Ernst & Young tax accountant who
joined A&M after facing increased limitations at the accountancy on the types of
client she could serve. Along with 12 other Ernst vets who left the firm for A&M,
the accountant became the center of a lawsuit filed by Ernst, which has since been
settled out of court to the mutual satisfaction of both firms. The suit had contended
that A&M raided its tax and real estate divisions for staff, taking valuable client
information. A&M countered that the suit was Ernsts desperate reaction to the post-
Enron climate for accounting firms, who face limited business opportunities thanks
to increased scrutiny for conflicts of interest. Instead of addressing the broader
business issues Ernst & Young faces between audit and consulting services, A&M
said in its court filing, it is trying to force its consultants to remain at a firm with
which they can no longer afford to be associated, one which does not offer a clear
path forward for its conflicted businesses. More colloquially, Marsal told the WSJ,
If Goliath wants to take on David, thats fine. Weve got a slingshot and a couple
rocks.
Distressed denim
A&Ms turnaround of fabled denim developer Levi Strauss is a notable example of
the firms performance improvement work in a nondistressed setting. In late 2003,
A&M was brought onboard to help the jeans maker reverse a slump, which included
falling sales and piles of debt. As part of the turnaround, the company had to cut jobs,
close factories and improve the profitability of its product lines. By late 2004, Levi
Strauss had begun operating in the black again, posting a quarterly profit instead of
its trend toward red ink.
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Chapter 11 poster children
Another one of A&Ms better-known success stories involves its work with Spiegel,
a retailer covering Spiegel Catalog, Newport News and Eddie Bauer. By early 2003,
the company, saddled with high customer credit card default rates, as well as
plummeting sales and high corporate overhead, was forced to file for bankruptcy.
A&M was appointed to the restructuring effort, taking over the CEO and other key
management roles. The firms turnaround plan included revamping the money-
losing credit card program, reducing Spiegels overhead, closing underperforming
stores and improving merchandising. The firm sold off the Spiegel Catalog and
Newport News businesses to outside investors, creating a standalone business around
Eddie Bauer. By the end of the project, the case was lauded as almost a perfect
poster child of what Chapter 11 is designed to be by the bankruptcy court judge, and
in September 2005, the firm was recognized by the Turnaround Management
Association with the Large Company Turnaround of the Year award for its
restructuring of the retailer. A&M won the same award back in 2003 for its work
with troubled company Warnaco, best known as the maker of Calvin Klein Jeans and
Speedo swim suits.
Flying high
In March 2006, bankrupt automobile hauler Performance Transportation Services
(PTS) hired Detroit-area based A&M managing director Timothy Skillman as its
chief restructuring officerpart of its effort to regain solvency. The firm also has
performed turnaround work internationally, helping out with the restructuring of
Germanys fifth-largest drugstore chain, Ihr Platz, and appointing two A&M
consultants to serve in executive management roles. The past few years have been
tumultuous for the airline sector, and the firm has stepped in to help distressed
airlines including U.S. Airways and AeroMexico. Also in March, Latin Americas
largest airline, Varig, tapped A&M as its chief restructuring advisor, working with the
companys management and board to help the airline get back on its feet. While
serving Varig in Brazil, A&M worked alongside the airlines president and managers,
rather than assume interim management roles.
After the flood
The firm also has applied its turnaround know-how to the public sector. In mid-2005,
A&M was tapped for a challenging assignmenthelping to turn around the troubled
New Orleans Public Schools system. The system was already known as one of the
worst in the nation when A&M came onboard, with the firm predicting that the
schools would run out of money in September. And that was before the nations
Alvarez & Marsal
worst natural disaster in decades landed on Louisianas shores. In the wake of
Hurricane Katrina, A&Ms job was transformed from securing financing for the
schools to handling the unusual complications associated with a giant natural
disaster, such as setting up payroll funds for more than 7,000 public school
employees at Western Union, while trying to track down payroll information from
flooded buildings.
AMarch 2006 BusinessWeek profile followed A&M Managing Director Bill Roberti
as he pursued the challenging task. His team faced astonishing hurdles, including
fierce political opposition and court challenges from corrupt district insiders who
hated the idea of bringing an outside firm in to shake things up. During the nine
months they were on the job, living in a rented house in Algiers, near New Orleans,
some of the A&M consultants tasked with working on the project had developed a
case of Katrina cough, a hacking wheeze caused by airborne irritants in the region.
But by the time the article was printed, their efforts were beginning to bear fruit
over 10,000 students were back in the 20 Crescent City schools, which were up and
running.
Schools in session
Roberti came armed with an excellent track recordin mid-2004, A&M completed
an unprecedented turnaround of the near-bankrupt St. Louis Public Schools, bringing
much-needed changes to a system struggling with operational and financial woes.
Under Robertis leadership, the school district appointed an A&M managing director
to serve as acting superintendent, instituted dramatic organizational reform, slashed
overhead costs and redirected resources into the classrooms. Other districts have
taken notice of A&M, tooin April 2006, the New York City school system, using
$5 million in private donations, brought the firm onboard along with a team of other
consultants. The group was tasked with evaluating everything from the textbook
supply chain to training for teachers.
Though A&M isnt widely known for working with the defense industry, the firms
real estate advisory services arm scored a contract in October 2005 with the U.S. Air
Force. As part of a four-firm, $88 million contract, A&M was tasked with helping
the Air Force implement its Military Housing Privatization Initiative, which transfers
ownership and operation of government-owned military family housing to the private
sector.
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2006 Vault Inc. 620
A distressed future (thats a good thing)
So long as there are underperforming companies and others in distress, A&M should
continue to grow. While other firms struggled through a terrible economic slump,
A&M ambitiously expanded its reach at home and abroad in the early 2000s. In July
2002, A&M opened five new offices simultaneously in Atlanta, Chicago, Houston,
Dallas and San Francisco. A&Ms first European headquarters office in London was
established in 2001, followed by offices in Paris, Milan, Frankfurt and Amsterdam,
and the firm is now looking to double its staff in Europe to 100 professionals over the
next six to 12 months.
A South China Morning Post article in October 2005 outlined the firms efforts to
expand in Asia. We are determined to become a global company and you cant do
that without being in Asia, Alvarez told the paper. In mid-2005, A&M hired an 80-
person team from Hong Kong accounting firm RSM Nelson Wheeler, boosting its
Asian presence considerably. In November 2005, the firms Asian branch announced
an exclusive alliance with MWM Corporate Services Ltd, a provider of insolvency
and forensic services in the British Virgin Islands. Together, the two firms planned
to offer an extensive range of turnaround and restructuring, supply chain, insolvency
and forensic services to the BVI and Asian investment business communities. The
deal allows A&M to provide services in the BVIunder new legislation in the
country, joint appointees working with distressed companies must include one party
licensed and residing in the BVI. There are more than 635,000 registered BVI
international companies, half of which operate in Asia, opening a valuable market for
A&M.
Latin flavor
Over the past few years, the firm has steadily been raising its profile in Latin and
South America, opening an office in So Paulo in late 2004. Its Latin American
clients have included AT&T Latin America Corp., Parmalats regional operations and
Rio de Janieros public utility, Light S.A. As a U.S. gateway to the region, Miami is
another A&M hotspot. In August 2005, the firm announced it had acquired
professionals of Initium LLC, a Miami-based boutique business improvement firm
serving mid-cap and mature companies in the U.S. and Latin America. The firm has
since expanded its capabilities in the Miami office, one of three other A&M offices
in the Southeastern U.S., along with Atlanta and Charlotte, to include professionals
in its tax advisory, dispute analysis and forensics, and restructuring groups.
Alvarez & Marsal
GETTING HIRED
Connections matter
Alvarez & Marsal is relatively new at hiring undergrads, primarily because the
turnaround and operational heritage of the firm has traditionally, up until 2003, rested on
a deep bench of senior staffers able to provide leadership, problem-solving and
ultimately value creationaccording to the firms own mantrain difficult situations.
With the advent of the firms service line expansion into consulting disciplines, this is
changing, and the firm has been scoping out campuses for new recruits.
For the most part, the firm hires almost exclusively based on personal
relationships, insiders agree. New consultants are hand-selected by executives for
their unique combination of skill, experience and cultural contribution, says an
insider. Sources report that the screening process is tough, as the firm only hires
people who share its values and who can handle the work. One associate says that
although A&M, as a growing firm, is in staff-up mode, it still is only allowing
certain candidates into the filtering process. Our hiring process for anything other
than fresh graduates is informal, and handled based on referral only, explains a
consultant, who adds that even on-campus hires are dominated by referrals from
recent graduates.
Those with less job experience are typically drawn either from previous working
relationships or top-tier, Ivy league business schools, says an insider. Specifically,
A&M Business Consulting looks at students from the University of Illinois, Indiana
University, University of Texas, Texas A&M, Wharton, Columbia, Harvard, Yale and
NYU, among others. From a Texas university, for example, A&M recruiters received
approximately 400 resumes. The firm accepted and scheduled 50 interviews, and
extended offers to approximately 15 of those interviewed, an in-the-know associate
reveals. The consulting division only considers students with a 3.5-plus GPA, plus
significant extracurricular activities. Above all, though, Someone within the firm
must know you and your background. One insider notes, It is pretty hard to make
it through the process if you are not a perfect fit. The firm notes that it is
undertaking a coordinated, multidivision campus recruiting effort in 2006 to meet a
broad mix of client needs for tax, real estate, investigatory and corporate finance, as
well as operational and consulting services. The firm will be looking for suitable
postgrads and MBAs to fill its ranks in these areas.
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Culturally compatible
Candidates for the firms business consulting division typically go through three to
four interviews, a combination of phone and in-person, often followed by a live,
full-day case study. One experienced hire with personal internal references reports
that he went through about four to five phone interviews and two to three in-person
interviews. The experience, according to another source, is probing but informal,
and well organized. Initial interviews tend to be behavioral, with questions
geared toward understanding what kind of person the candidate is. One source
says, They drill down into specific CV examples, so be prepared with solid work
experiences and stories. Another says technical knowledge is important, but a
match on culture and chemistry is key. For the case study portion of the process,
Finalists go to a current client, who presents a live case, says one source. The
recruits break up into teams and then have a few hours to come up with a solution
and presentation. Later stage, in-person interviews at A&M, say insiders, are more
of a chance for the new hire to interview the firm.
OUR SURVEY SAYS
The value experts
Overall, employees at A&M are thrilled with the atmosphere at work, and
specifically, the emphasis on its core values. The firm places a strong emphasis on
values and integrity. A key principal is mutual accountability to each other, says a
satisfied source. The firms leadership is religiously devoted to A&Ms values of
taking care of clients. The focus is on value to client rather than just billing hours,
says one source. And that attitude carries over to how the firm cares for its own
people. Leaders at the firm place great emphasis on loving your work and caring
about those you work with, explains a colleague, while another agrees that the
culture of mutual accountability means there is a high level of integrity among
employees. This firm could write the book and teach the class on values and
ethics, says one source.
A&M does not mess around when it comes to its culture, which is described by many
employees as like a family. Part of our annual review focuses on what you did to
participate in promoting the firms culture, says one source in the firms consulting
division, pointing specifically to things like happy hours and golf outings. This
intense focus results in much out-of-work socializing. I know everyones
significant other by name, says one consultant, and a colleague emphasizes the
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firms intimate feel, saying that at A&M, you are not just a number. Culture is not
treated like an extracurricular activity at A&M. It is measured and evaluated with
every hire, adds another.
Keeping it close to home
Thanks to A&Ms regional model, consultants enjoy much less travel than other large
consultancies. Our focus on regional business development helps considerably in
comparison to our industry-focused competitors, an insider notes. The firms goal is
to staff regionally so you would not normally be outside of your regional area, explains
a co-worker. A&M, employees claim, really wants everyone to work where they live,
but it is consulting, so sometimes you have to travel outside your region. Still, It is
not like an Accenture/PwC, where they really dont care where you go as long as you
are staffed. One source sums it up: If youre in consulting, youre going to travel. This
firm is very good about keeping you close to home if at all possible.
When clients are out of town, the firm adheres to the new consulting industry
standard of Monday through Thursday travel. However, certain engagements
require extended travel in excess of the standard Monday through Thursday off-site
week, says one consultant. These can be grueling, but are managed to ensure that
it is the exception, rather than the rule.
Mainly manageable
Like travel, hours and length of projects at A&M really vary by client and by the
type of service being delivered. According to one source, My last client was very
respectful of my personal life. Sometimes, however, when youre under the gun, you
have to put in some tough hours. Most consultants in the business consulting
division average 45 to 55 hours per week, and work on projects in the three- to six-
month range. There are exceptions, with some sources clocking 70-plus [hours] at
the beginning of an engagement and 60 to 65 when things settle. One source
notes that if youre on a restructuring project, the hours are longer. On the whole,
though, everyone seems to be consistently staffed and, as a result, hours are very
manageable, with the typical roller-coaster effect depending on client and timing of
deliverables. And even though hours may skyrocket at times, insiders say that they
rarely, if ever, work weekends.
Making time for family
As far as consulting firms go, when it comes to achieving work/life balance, A&M
is about as good as it gets. The firms regional focus, which allows many employees
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to do much of their work in the region they live in, is a manifestation of its overall
mentality and culture. Says one Houston-based associate, Even though travel is an
innate part of management consulting, our firm doesnt make us road warriors.
Local projects are a priority, and family time is always emphasized. As long as the
work gets done well, theres a lot of flexibility. At A&M, Work/life balance is
valued and not scoffed at, says one source, and personal needs are easily met as
long as you have the ability to manage client expectations, another consultant
remarks. We are encouraged not to let our work interfere with our family and
personal life, a colleague adds. One insider points to an example: I am able to
coach my sons sports team. And, according to a co-worker, Even while on the
bench, our [divisional] CEO would take off Friday to take his son out golfing. This
means a lot to someone that wants to have kids in the near future.
In charge of your own destiny
A&M is very transparent in publishing salary bands and outlining compensation
calculations based on individual performance, an insider indicates. Employees give
average to above-average marks to their compensation. Sources are pleased to report
that pay is on par with the large consulting firms, and lies in the top percentile of
the industry. In fact, one insider says, I left Accenture after 17 years and actually
experienced a small increase in total compensation. Another adds, Its a pleasure
to work for a firm where they actively attempt to be in the top 1 percent of
management consulting firms in terms of compensation, so that compensation
doesnt have to be an item that you concern yourself with.
For those concerned few, A&M insiders tell us that they have a great deal of control
over the final outcome. Bonuses are fairly lucrative for someone who owns their
career, says one source. For example, cites one member of the business consulting
divison, You know your target collections for the year and you receive a high
percent (ranging from 20 to 30 percent in a good year). Some say the base salaries
are low, but all that changes when bonuses pay out, reports an associate. They tell
you how the bonus structure works and how it pays out, but until you get your first
bonus, you are probably a bit wary as to if it pays off. It does! The firm also offers
401(k) profit sharing, which is calculated based on total compensation and typically
made at the maximum allowable level.
Promotions earned (so far)
Consultants at A&M also have some control over their advancement within the firm.
But because those in A&Ms nonrestructuring divisions are relatively recent arrivals to
the firm, it remains to be seen how promotion policies among those groups will shape
Alvarez & Marsal
up. Insiders say that, so far, the firm uses a merit-based system for promotions and
does not foster an up-or-out mentality. Consultants advance with excellent analytic,
client and team skills, says one source, and promotions are based on economic and
cultural contribution to the business, explains another. Acolleague reports that there
is no predetermined pace for how quickly an employee should move through the
ranks, but consultants are expected to show progression towards increasing levels of
responsibility. They also must demonstrate significant leadership skills. In the end,
sources say that advancement at A&M is truly up to the individual.
Healthy attitude
A&M reportedly offers nothing special in the way of additional benefits and perks,
but employees rave about the firms extremely excellent and affordable health
insurance. Sources are also pleased with A&Ms extremely flexible vacation policy.
Rule of thumb: If you need vacation, then take it. As one consultant states, We trust
that we hire the best of the best and that policy wont be abused. Most employees are
also afforded the flexibility to work from home when not traveling. Half-day Fridays
in the home office really help the weekly traveler, notes one source.
Most employees at A&M also are given BlackBerries with liberal cell phone usage
for business and personal calls, and occasional baseball and football tickets.
Mostly, though, the firm does not satisfy its employees with fancy extras. Insiders
say, The culture is absolutely the most valuable aspect of Alvarez & Marsal.
Easy access
Supervisors at A&M are extremely visible, and make it a priority to connect with
every level of employee. Insiders say the down-to-earth management team is
inspiring, open and engaging. In addition to being mindful of investing the time
in the younger staff, managers at A&M create numerous opportunities to get
together professionally and socially, adds a source. Overall, superiors at the firm are
very approachable, were told.
No hierarchy here
Making that access possible is the flat structure of the firm, which reportedly allows for
phenomenal exposure to top-level managers. The entrepreneurial, startup feel of
the firm makes it a place where there is an opportunity to stand out and be noticed by
senior management, even at the consultant level, explains a consultant. You are in
charge of your own future at the firm, adds another insider. Titles are not emphasized
at A&M, because the firm is rapidly growing and very action-oriented. Bosses are
Alvarez & Marsal
2006 Vault Inc. 626
less impressed by level of experience than they are by your ability to spread your wings
as far and as wide as possible. One source says there are no big egos allowed.
Some say this informal approach has caused some growing pains, though.
According to one associate, During startup mode, things can be reactionary at
times, rather than strategic. Another says that the firms lack of infrastructure,
which is viewed as a lack of bureaucracy, eventually will become a true burden.
Early exposure
A&Ms business consulting market focusclients in the $500 million to $1.5
billion in revenue rangeallows for consultants to interact with C-level executives
on the client side as well. Within four months of starting with the firm (and within
five months of graduating from college), I was given the opportunity to present my
work to top client executives, including the CEO, CFO and COO, says one satisfied
consultant. Another adds, In other consultancies, the relationship with the C-levels
was shielded by the managing directors; with A&M, you are encouraged to be a part
of it. Indeed, the firm is significantly higher on the client value chain than most
large consulting firms heavy focus on IT and outsourcing, an associate claims.
Want space? Move to Houston
Job seekers who prioritize office space may be best suited to A&Ms Houston office.
The location is newly renovated and in a good building, and has plenty of space,
were told. One source says that in Houston, they could actually decrease the amount
of space we have. Houston employees also rave about the support staff at their
location, saying, They will do anything you ask of them. They are constantly stocking
the kitchen with snacks and breakfast food, simply because they view it as their job to
make your job a little more enjoyable. The only complaint about the Houston
location? It is always almost empty. Insiders say Houstons consultants are almost
always on a client site, rather than in the office, regretfully unable to enjoy the space.
Sources in other cities are less exuberant about their facilities. A&M employees in
Dallas say their offices are functional, but some complain that there is not enough
space. In Chicago, offices are in a great building, great location and are extremely
functional, says one source. New Yorkers also work from a good location
(Midtown Manhattan) with great support. Sources point out, though, that A&M
strives for low overhead and, as such, we are mostly all in unassigned cubes.
Alvarez & Marsal
Officially unofficial
Training at A&M is unofficial and mostly on the job. Sources say that training is a
priority going forward, but that currently, learning takes place primarily through
mentoring. The firm is currently putting together a more comprehensive training
program, says one insider, who adds that for now, what substitutes are a lot of
senior consultants who take a personal interest in teaching more junior staff as they
work on consulting engagements. Although most agree that formal training
programs at the firm are lacking, a good number see it as an opportunity: Because
[in the consulting division] we are smaller, were still developing training programs,
mentor programs, and some of the other necessities that the bigger companies already
have in place, an employee asserts. But on the plus side, if youre interested in
helping develop these initiatives, you can really take some ownership! Sources also
say that the firm encourages consultants to attend outside training courses when
youre not working for a client. One employee says that A&M has supported me
in taking courses to keep my CPA& CFE current.
Women on the rise
A&M is slowly adding more women to the consulting staff. On the whole,
consultants report, the firm is receptive to hiring and promoting women, but
currently, there are not a lot at the senior level. Although there is an overall good
male-to-female ratio, A&M does a better job with new-hire women than with the
more senior levels, says one source. Acolleague adds that in the business consulting
division, There arent women at the managing director level yet, but notes, There
are quite a few women doing very well at the director and manager levels, though,
and its foreseeable that there will be promotions in the near future. The firm
comments that it maintains a gender-neutral stance toward its employees, and
claims that it places greater emphasis on performance factors, achieving client results
and maintaining family-friendly valuesconditions under which both women and
men thrive in the workplace.
Cookie-cutter crowd
One insider who has no reason to believe that the firm is not open to increased
diversity, notes, the fact remains that the firm is not terribly diverse at present. As
a matter of policy, A&M does not bend GPA requirements for minorities, says one
insider. But, for those minorities who do qualify, we recruit them very
aggressively. Because competition for these minorities is very high, however,
sources say the firm has not been successful in recruiting a large number of
Alvarez & Marsal
2006 Vault Inc. 628
minorities. Another asserts, We go for talent, not looks. Despite its lagging
numbers, one Hispanic employee says she has not encountered any problems.
A&M also has some ground to gain when it comes to embracing gays, lesbians and
bisexuals in the workplace. Although one source says, Our benefits plan covers life
partners, insiders emphasize the fact that the topic is not discussed. In my year at
the firm, this topic has not come up once in any forum and I believe thats a good
thing, says one source, who insists that it has no bearing on acceptance, respect or
performance within the firm. Another says, This has never come up as a discussion
topic. We may have gay people in our organization and I would never know.
Lending a hand
A&M encourages its employees to become active in their communities and
participate in a variety of charities, though the firm remarks that contributions of
time and money require express approval by division leaders on a case-by-case basis.
In some instances, employees report that their leaders have allowed time off to
participate in events and meetings, and cite their participation in the March of Dimes
and volunteering time in Houston to displaced victims of Hurricane Katrina. The
New Orleans Public School System was a client of our firm before Hurricane Katrina
hit, explains a source, and the firm notes that the school system continued on as a
client even after the hurricane.
And while most agree that A&M is very open to and supportive of engaging in our
local communities, some say there are few formal programs. One community-
minded consultant says, This is probably one area that I would like to see our firm
improve. I am involved in a number of local charities and our firm doesnt seem to
have an overt interest in this. Another claims, though, that when it comes to
community involvement, A&M is pretty good for a small firm. A&M officials note
that the recently formed Alvarez & Marsal Foundation has been working to develop
rigorous processes and policies for charitable giving of money and time, and to
encourage its employees around the globe to contribute to causes individually. The
A&M Foundation administers a restricted fund to benefit students and their families
displaced by Hurricane Katrina, and has also supported charitable groups and causes
promoting education, freedom from hatred and oppression, health care and womens
issues.
Alvarez & Marsal
Aon Consulting
200 East Randolph Street
Chicago, IL 60601
Phone: (312) 381-4800
Fax: (312) 381-0240
www.aon.com/hcc
LOCATIONS
Chicago, IL (HQ)
117 consulting offices worldwide
PRACTICE AREAS
Human Capital Consulting Services
Communication Consulting
Executive Compensation
Global Benefits
Human Resources Outsourcing
Research
Retirement
Talent Selection, Development &
Rewards
Specialized Consulting Services
Global Financial Advisory &
Litigation Consulting
Global Management Consulting
THE STATS
Employer Type: Subsidiary of Aon
Corporation
Ticker Symbol: AOC (NYSE)
Executive Chairman (Aon
Corporation): Patrick G. Ryan
President & CEO (Aon Corporation):
Greg Case
CEO (Aon Corporation):
Andrew Appel
2005 Employees: 6,800+(Aon
Consulting)
2004 Employees: 7,000 (Aon
Consulting)
UPPERS
Pretty good opportunities for
advancement
The company is growing and
making many smart and positive
changes
DOWNERS
Too laid-back to be truly
competitive
A few very talented consultants
but far too many dinosaurs
EMPLOYMENT CONTACT
www.aon.com/about/careers.jsp
2006 Vault Inc. 630
THE BUZZ
More relaxed
Niche insurance guys
Limited in certain areas
Disjointed; brokerage mentality
THE SCOOP
Big and bigger: the Oneness
Aon Consulting is one of the worlds largest human capital consulting firms, advising
on specific issues such as employee benefits, outsourcing, mergers and acquisitions,
workforce strategies, talent selection and process improvement design. According to
a March 2005 Business Insurance magazine study, Aon is the third-largest employee
benefits consultant worldwide and the second-largest in the U.S. With $1.255 billion
in revenue in 2005 and nearly 7,000 staffersbig numbers in their own rightAon
Consulting is a piece of a larger puzzle, Aon Corporation.
If youre curious about Aons consulting wing, you cant go very far without butting
into the business of its rich daddythe companies are firmly intertwined, and
intentionally so. Indeed, Aon means oneness in Gaelic. Aon Corporation is the
second-largest insurance broker in the world and employs more than 46,000 staffers
in 500 offices. It was founded in 1982 when the Combined International Corporation
merged with the Ryan Insurance Group. Aon began acquiring smaller firms right
after its inception, starting with the venerable Hudig-Langeveldt, a business that had
been insuring cargo ships since 1680, and moving on to other insurance notables,
including Rollins Burdick Hunter and Alexander & Alexander. The firms early
focus on the insurance industry naturally led it to take an interest in employee health
plans and subsequently in human resources issues. In the mid 1980s, it finally split
off its HR consulting business. But, if youre going to work for Aon Consulting
youre going to run into the corporate wing sooner or later, as the company itself
states, Aon companies, wherever their location, operate closely with each other to
provide the best resources for our clients needs, whether they are a multinational or
a strictly local business. Today, Aon Corporation attempts to be a one-stop shopping
source for risk assessment, human resources and insurance needs.
Ups, downs and shake-ups
The company has been doing well throughout the past decade, despite some tough
circumstances thrown its way. Aon Corporations New York offices were on the
92nd and the 98th through the 105th floors of the south tower of the World Trade
Center, and the company had to rebuild its risk-management business after suffering
devastating personal losses. The company also weathered the dot-com bubble burst
with aplomb. But past resilience means little in the what-have-you-done-for-me-
lately business world and today, Aon, including all of its subsidiaries, finds itself on
the slippery slope of a market. Aon Consulting has consistently found itself lagging
Aon Consul ting
behind Mercer Human Resource Consulting, a subsidiary of Marsh & McLennan
Companies, in terms of total revenue. But in 2004, it seemed that things were about
ready to get shaken up. Marsh & McLennan was accused of price fixing and
collusion, and its consultants were charged with rigging executive pay packages,
embroiling the company in scandal. In the end, Marsh & McLennan was forced to
pay $850 million in damages.
Aon Corporation could not escape some headlines of its own. In March 2005, Aon
reached a comprehensive agreement with five agencies in three states (including the
office of the New York Attorney General Eliot Spitzer) to settle investigations
relating to contingent commissions and other business practices that may have
created actual or potential conflicts of interest. Although Aon admitted no
wrongdoing or liability, it created a $190 million fund to provide compensation to
eligible U.S. clients with policies incepted or renewed between January 1, 2001, and
December 31, 2004. Despite this setback, Aon seemed relatively clean compared to
its rival.
Gunning to meet expectations
Industry insiders and analysts, such as Keefe, Bruyette & Woods, predicted that Aon
would jump right into the fray and take on market share, but it hasnt happened.
Revenue for the parent corporation has not lived up to expectations, rising just
slightly between 2004 and 2005. A February 2005 Dow Jones article claimed that
this sluggish performance was a direct result of Chairman Pat Ryans decision to
acquire more than 100 companies through the decade; as a result, Aon had inefficient,
redundant resources and the new companies were not integrated well. Aon
shareholders noticed the numbers, and in April 2005, the firm appointed Gregory C.
Case, a former McKinsey consultant as CEO. He promptly began a three-year
restructuring plan, with the goal of eliminating 3 percent of Aons workforce. The
Associated Press reported in November 2005 that this would begin with 750 of the
companys British insurers.
Cases next big move, in July 2005, was to appoint Andrew Appel as CEO of Aon
Consulting. Appel had also been at McKinsey, where he was a senior partner in the
firms financial services and technology practices. Then, in February 2006, Aon lifer
Roger Vaughn, previously top dog of Aon Consultings U.S. operations, was tapped
as second-in-command after the firm announced that it was creating two new
positions. Vaughn became vice chair and the chairman position was granted to
Michael Gulotta, who had previously served as CEO of Actuarial Sciences
Aon Consul ting
2006 Vault Inc. 632
Associates before it merged with Aon. Are we at oneness? No, Case said in a 2005
Dow Jones interview. We havent pulled together all the things we need to.
Assess me, please
Aon Consultings services run the gamut of HR issues, such as dealing with
employee health plans, advising on outsourcing, and dealing with conflicts arising
from mergers and acquisitions. The companys global presence, with 117 consulting
offices (and more than 500 Aon Corporation offices) makes its advisors attractive to
multinational corporations. A sampling of the firms client list includes many
international firms, including AT&T, Anheuser-Busch, DuPont, Chevron Texaco and
Sysco.
To accommodate its roster of clients, Aon Consulting has developed an array of in-
house services. Global Benefits Manager serves as a singular repository of
employee benefits data to help companies around the globe organize and manage
their operations. In addition, Aon Consulting offers personalized communications
services through its Benefacts
program, which helps management and HR teams

communicate total rewards and other benefits information to employees. The firm
also has some quirky takes on how to manage employees; for example, its Absence
Management Self-Assessor
TM
helps employers evaluate their current absence
programs in areas such as disability, sick leave, return to work, workers
compensation and claims management.
GETTING HIRED
Multiple paths for new recruits
Aon Consulting recruits at a diverse set of campuses, including UC Berkeley,
Brigham Young, Cornell, University of Georgia, Notre Dame, St. Johns and the
University of Wisconsin. For those still grinding out their school years, the firm
offers a 10-week business internship program in several major American citiesa
great way to get your foot in the door. For recent graduates, Aon has two interesting
options for those interested in trying out the consulting business. One is the
Rotational Development Path, which allows participants to test their fit with three
different business units (staying with each for six months) before settling on a
particular area. The other, for those who know what they want to specialize in, is the
Direct Development Path. Both programs couple formal training with a mentor
relationship. Whatever your career path, be sure to check out the firms web site,
Aon Consul ting
which includes a nifty tool called the Concept Search, that lets you type in a
description of your dream job and then your browser automatically brings up Aons
closest matches.
Run-of-the-mill interviews
As far as the interview process itself, sources claim that its your basic couple of
rounds of interviews with different people. One insider explains that Aon puts a
lot of emphasis on personality and interaction with others, i.e., I was taken to lunch
and observed [for] how I interacted with the team. Another source says, We
typically look for applicants that could handle themselves in the consulting world and
not melt down under the pressure. Computer skills are essential. We often give an
Excel test, a general balance sheet question and answer quiz, and a case study torture
session. Though he doesnt mention the torture aspect, a colleague confirms the
case study portion, saying, In addition to the interview, I had to give a presentation
as if I was presenting some fictional project results to a client.
OUR SURVEY SAYS
Self-starters thrive
Aon Consulting employees look around and see many friendly faces. One consultant
says he finds the company made up of nice people with a rather laid-back attitude.
But even with this casual atmosphere, go-getters and out-of the-box thinkers reap the
rewards. An insider reports, Good and innovative ideas are valued and do receive
attention. Being a self-starter helps, too. One accounting specialist says the firm is
a good environment for people who take the initiative to advance in their career.
Aon has an entrepreneurial culture where you are in charge of your own career path
and, depending on the type of manager you have, lots of training opportunities
available to take advantage of.
Disjointed units
One oft-mentioned downside to the company is its size. One insider complains that
Aon is very large and can be bureaucratic at times. It also seems that various
groups within the firm are not tightly knit, with quite a heterogeneous mix of offices
and working groups. Aconsultant says, Aon has so many subsidiaries and so many
different departments and specialties so its really hard to describe each one. I find
that different offices departments operate pretty autonomously, while another states
Aon Consul ting
2006 Vault Inc. 634
that morale within Aon varies widely among various locations and business units.
There is great variance even within my business unit. High-performing units are
great to work in, underperforming units are a drag. Hours also vary pretty widely
depending on business units.
As far as workers compensation, staffers arent jumping up and down for joy over
their paychecks, but are pleased that Aon has good benefits, including 401(k), stock
purchase plans and bonuses. In addition, a consultant claims that the vacation time
is competitive.
Things are looking up
Employees do see some problems to be overcome at Aon, but in general are positive
on the companys future. An assistant VP says, Aons overall outlook is quite good.
Given the recent shake up in the insurance brokerage industry, Aon has emerged
stronger. Our new CEO is doing a fantastic job and our stock has been rising steadily
over the past few months. Its a great time to join Aon. A VP sees the situation
similarly: The firm grew exclusively through acquisitions, without any business
strategy in place for years. All new management has just been put in place in the past
year, most from McKinsey, so the long-term outlook is quite good, as reflected in the
recent stock upswing.
Aon Consul ting
Applied Value LLC
One Cranberry Hill
Lexington, MA 02421-7943
Phone: (781) 778-1800
Fax: (781) 778-2009
www.appliedvaluegroup.com/value
LOCATIONS
Boston, MA (HQ)
Detroit, MI
New York, NY
London
Stockholm
PRACTICE AREAS
IT Efficiency
Marketing & Sales
Operations
Research, Development &
Engineering
Strategy, Finance & Organization
Sourcing & Procurement
THE STATS
Director: Bruce Grant
2005 Employees: 65
2004 Employees: 60
UPPERS
Small workforce means a lot of
opportunities to contribute
DOWNERS
Limited name recognition
EMPLOYMENT CONTACT
U.S. Recruiting
E-mail: USrecruiting@appliedvalue.com
Europe Recruiting
E-mail:
Europerecruiting@appliedvalue.com
2006 Vault Inc. 636
THE SCOOP
Good timing
Bruce Grant and a small cadre of senior executives left the prestigious consultancy
Arthur D. Little in 1997, just before the dot-com boom. It was good timing on their
part: Although most everyone prospered during those heady times, once the bubble
burst, many major players went down, and poor Arthur D. Little left a messy corpse,
with most of its subdivisions cannibalized by large international firms and
bankruptcy the only way out for its remaining core practice. Grant dubbed his new
company Applied Value and began to slowly grow the firm to its present size of 65
staffers with offices in Europe and the United States. The firms name reflects the
key philosophy behind all of its engagements in which the firm emphasizes value
creation. Applied Value is bent on a singular focusimproving its clients bottom
line and boosting profits.
A diversified portfolio
Applied Value is a small company, but its scope and interests are broad. It styles
itself as a boutique firm with global reach. In its short history, Applied Value has
gathered together a diverse list of clients, with a scattering of ubiquitous international
mega-corporations mixed in with some smaller corporations. Its client roster boasts
familiar names such as Coca-Cola, Daimler Chrysler, Viacom, Lotus Cars, MTV and
Readers Digest. The telecommunications and automotive industries are especially
well represented, as are process-based industries such as paper, metal and chemical
manufacturers. What does Applied Value offer its clients? With its emphasis on the
bottom line, Applied Value sticks its nose in all corners of a business. To break it
down, its services cover corporate strategy and finance organization; sourcing
management; marketing, manufacturing and inventory management; and IT and
technology improvements.
Branching out
And if that list of services isnt broad enough, note that Applied Value has two sibling
organizations that offer even more business support. These additional segments of
the company work in tandem with one another and serve the same clients as Applied
Value. Applied Transactions is the firms mergers and acquisitions group, advising
on general strategy as well as more dicey topics such as divestitures and leveraged
buyouts. Applied Training is, not surprisingly, the firms training regiment, offering
to assess competence and supplement the education of employees in areas like
Applied Value LLC
general management, IT and business strategy. Altogether, the three segments
comprise the Applied Value Group that promises to provide management consulting
and hands-on implementation support to corporations worldwide.
Nordic chieftains
A quick look at Applied Values senior staffers will leave you visualizing fjords,
pickled fish and ski jumping. Seven of the eight highest management positions are
served by those with extensive roots in Sweden and Norway. And the eighth, Partner
Steve Bergson, is also no stranger to Northern Europe: He previously served as North
American president of Brussels-based human resource company ARINSO.
University of Gothenburg (Sweden) alumni also seem to be particularly in favor at
Applied Valuehalf of the top-boss spots have gone to MBA graduates from that
program.
Value papers
Applied Value publishes snippets of its general advice as Value Papers. The
papers, printed in limited editions and exclusively available to senior management
of world-class organizations, are divided into three series: Revenue Improvement,
Cost Efficiency and Capital Efficiency. A perusal of these articles gives an idea of
what Applied Value is all about. Some examples include a January 2006 report
analyzing which sectors of the telecommunications industry would benefit from
outsourcing; a December 2005 piece documenting the usefulness of sales
representatives in providing input on customer needs; and a October 2005 briefing
that advises chemical companies on how to deal with the threat of low-cost
competitors from emerging markets overseas.
GETTING HIRED
PDF you way in the door
If you surf Applied Values web site youll find some invaluable and specific advice
on what the firm is looking for and what youll encounter during the interview
process. Look for two PDF files, one providing a detailed look at the interview itself
and the second offering tips on how to ace the case study questions that will
undoubtedly be thrown your way. The firm conducts two rounds of interviews. In the
first, you will be asked to take a numerical reasoning test followed by some analysis
on several different cases. And if youre invited back after the first, youll spend
Applied Value LLC
2006 Vault Inc. 638
some time with senior management and go through a few more cases for good
measure. One bit of advice: Remember that Applied Value is all about the
shareholders. Make sure youve crafted an approach for the case studies that allows
you to answer the question, How does your solution/recommendation enhance client
companies shareholder value?
Applied Value LLC
Archstone Consulting
Four Stamford Plaza
107 Elm Street, Sixth Floor
Stamford, CT 06902
Phone: (203) 940-8200
Fax: (203) 940-8201
www.archstoneconsulting.com
LOCATIONS
Stamford, CT (HQ)
Chicago, IL
New York, NY
San Francisco, CA
Amsterdam
London
Toronto
PRACTICE AREAS
Brand Innovation
CFO Advisory Services
Consumer Products & Retail
Life Sciences
Manufacturing
New Product Development
Operations
Outsourcing & IT
Strategy
THE STATS
CEO & President: Todd D. Lavieri
2006 Employees: 250
UPPERS
Opportunity to grow with a new
firm as it makes its mark
DOWNERS
No reputation in the industry to fall
back on
EMPLOYMENT CONTACT
E-mail:
recruiting@archstoneconsulting.com
2006 Vault Inc. 640
THE BUZZ
High potential
New kids on the block
Not well known
Mini Deloitte
THE SCOOP
New kids on the block
If you havent heard of it yet, were not surprised; Archstone Consulting is relatively
new to the scene. But be on the lookout for the namethis youngster has got an
ambitious streak and is on the rise. Founded in September 2003, the firm has almost
quadrupled in size since its inception and has added offices to support engagements
further afield.
Were different!
Archstone Consultings original founders were, in large part, former Deloitte &
Touche staffers and in just a short period of timein June 2004 Consulting Magazine
named Archstone Consulting one of seven small jewels in the industrythe firm
has grown large enough that it can no longer rightly claim boutique status. Nor
does the firm seem content to become a niche player. Given these facts, you might
think Archstone Consultings future template for success is to mimic the megaplayers
in strategy consulting. Not so. Archstone Consulting may want the market share of
the big boys, but its consultants are vehement in their distaste for the current state of
consulting, saying Companies are growing disillusioned with consulting firms,
finding them too large, too bureaucratic, too expensive. How do we know? Because
weve worked for some of the largest consulting firms out there, and consulted to
some of the biggest and best companies.
The anti-consultants
Archstone Consulting embraces its position as the anti-consultant, but if all the
rhetoric seems a bit extreme, the firms angle really boils down to some simple ideas.
First, independence is crucial to Archstone Consulting; the firm does not believe in
pushing any specific products or selling anything other than advice, stating, We will
never be compromised by corporate directives to pressure clients into buying
proprietary products like software, hardware, financial services or outsourcing.
Secondly, the firm emphasizes execution of strategies, believing that other
consultants leave their clients too early and that the implementation of an idea is just
as important as the idea itself. And lastly, although Archstone Consulting believes in
sticking with an engagement, dont expect protracted services: We do not want to be
disruptive to our clients business, so our projects are focused and when our job is
done, we leave. Archstone Consulting President and CEO Todd Lavieri is
especially supportive of this last concept, as he said in a Fortune October 2003
Archstone Consulti ng
article, Clients are terrified that consultants are a modern-day Trojan horse: If you
let them in the door, theyll take over your company.
Vertical expertise
Archstone Consulting is focused on business strategy and operations improvement
management, and its engagements are high levelthe firms advice is given directly
to corporate executives. CFO advising makes up a chunk of its work, as well as
consulting on outsourcing and supply chains. Although Archstone Consultings
practice is growing at a good clip, the firm has not branched out from the original
industries it began serving, and emphasizes its vertical expertise in those main
segments, which include consumer products and retail, life sciences, manufacturing
and service industries.
Growing inward
Archstone Consultings first full year, 2004, was marked by acquiring a bevy of
talentVPs, partners and principals from such names as Booz Allen Hamilton,
BearingPoint and A.T. Kearneyas well as establishing offices. San Francisco,
Chicago and New York were all added to the roster in 2004. Eventually, the senior-
level hiring frenzy slowed and the new Archstoners began to exert themselves and
get their teams in gear.
Subsequently, 2005 saw Archstone Consulting deepen its already existing suite of
services. In July 2005, the company expanded its outsourcing services to include risk
mitigation from low-cost country sourcing. In May, Archstone Consulting
introduced CFO advisory help for dealing with Sarbanes-Oxley and other challenges
facing CFOs. Later that month, the firm introduced its first trademarked piece of
intellectual capital: Connect the Dots, a method for marketing pharmaceuticals.
Said Archstone Consulting Principal Chris Franck at the time, There is significant
evidence that brands in crowded therapeutic areas can break out and dominate their
categoriesnot based on their products efficacybut on marketing effectiveness.
And in March 2005, the firm expanded its life sciences expertise to include strategies
for dealing with the Medicare Modernization Act, a bill that is affecting sales for all
prescription drugs in the U.S.
and expanding outward
In June 2006, Archstone Consulting acquired the Hazelton Group, a Toronto
research-based brand development consulting firm. This union provided the firm
with a Canadian footprint, along with enhanced services offerings in global brand
2006 Vault Inc. 642
development, brand rejuvenation and positioning. In October 2005 Archstone
Consulting made the big leap over the pond, opening its first overseas office in
Amsterdam. This was followed in January 2006 by the addition of an office in
London. The firm hired former Capgemini VP Alasdair Mackintosh (who brings
with him 12 years of experience consulting for the life sciences industry) to run the
U.K. operation.
Repeat success
Outsourcing is one area in which Archstone Consulting distinguished itself early on,
making its mark in the industry with its 2004 study conducted in conjunction with
Duke Universitys Center for International Business, Education and Research
(CIBER). Archstone Consulting must have been pleased with the results, as it has
made the study an annual affair. In October 2005, the firm published the results of
the second go-around, which contains interesting tidbits regarding the offshoring
behaviors of companies, and where they are positioning their offshoring operations.
Making headlines
Archstone Consulting staffers have also begun to appear on some notable soapboxes.
In July 2006, the results of Archstone Consultings Supplier Relationship
Managmeent survey was covered in a variety of publications, including
IndustryWeek, Supply and Demand Chain Executive and Logistics Today. And in a
December 2005 Forbes article, Mark Mozeson took big pharmaceutical companies
to task: Why is an industry that prides itself on innovation struggling to respond to
the writing on the wall? Asales model that is exorbitantly expensive and marginally
productive cannot exist ad infinitum.
GETTING HIRED
Building a career
According to its web site, Archstone Consulting is seeking analysts to build the next
great consulting firm. The firm seeks out analysts and associates mainly through its
campus recruiting process. The firm also continues to seek experienced professionals
at all levels. Recruits should be professional, ethical, passionate and driven
individuals who take initiative, follow through and deliver results. The firm is
especially looking for experienced hires with expertise in strategic sourcing and
procurement, business process improvement, process improvement in drug
development, pharmaceutical manufacturing, supply chain and finance transformation.
If you think you would be a good match for the firm in any of these practice areas, head
on to the companys siteit may seem spartan, but it is clear and easy to use. The We
Are Hiring section has a painless interface for would-be analysts, associates and
managers applying to the firm.
2006 Vault Inc. 644
Bates White
1300 Eye Street, NW
Suite 600
Phone: (202) 408-6110
Fax: (202) 408-7838
www.bateswhite.com
LOCATIONS
Washington, DC (HQ)
San Diego, CA
PRACTICE AREAS
Antitrust
Commercial Litigation
Consumer Finance
Corporate Finance
Energy
Environmental & Product Liability
Intellectual Property
International Arbitration
Labor & Employment
THE STATS
President & Senior Partner: Dr.
Charles E. Bates
UPPERS
Great compensation and working
spaces
Firm listens well to junior staff
Interacting with the most valuable
academic experts in any area of
economics
People take their reviews seriously
here, and really try to improve
DOWNERS
Theres a bit of a spoiled child
mentality
The absence of 401(k) matching
at any level
Much of management is
inexperienced
Having to turn down business
because we are too busy at times
EMPLOYMENT CONTACT
E-mail: careers@bateswhite.com
THE BUZZ
Fast and growing
Good in its niche
Overworked, overpaid
Inflated self view
THE SCOOP
A brainy bunch
Offering quantitative, economic and financial advice, Bates White is a boutique
consulting company with strong D.C. roots. The firm emphasizes applying
econometrics analysis in its consulting for law firms, Fortune 500 companies and
government agencies. Educated and cerebral, many of the firms team of over 150
employees are economists, econometricians, strategists, financial analysts and
information technology consultants with PhDs or masters degrees. Consultants,
many with economic or statistics backgrounds, apply data and theory to antitrust,
commercial litigation, consumer finance, corporate finance, energy, environmental
and product liability, intellectual property, international arbitration, and labor and
employment cases. In addition to full-time consultants, the firm maintains a network
of thought leaders and recognized experts in their fields.
Bates Whites brain trust of consultants is often invited to present ideas and expertise
at high-level conferences, including the Federal Trade Commission (FTC), the
Department of Justice, and universities and economic panels internationally. In July
2006, Partner Dr. Jonathan Lesser addressed the Southwest 2006 Conference on new
directions in energy markets. In November 2005, the FTCs Bureau of Economics
invited Dr. Robert Marshall, a Bates White partner and professor at Penn State
University, to speak on the economics of Internet auctions. And Bates White Founder
Dr. Halbert White, also a professor at the University of California, San Diego, spoke
at the FTC on oil industry mergers in January 2005. As a recognized econometrics
guru, White has a textbook named for him in honor of his contributions to the field.
Trial by jury
The firms antitrust division has been active in several prominent cases. Bates White
assists clients through all phases of litigationclient support, data management,
discovery support and expert testimony. In addition, the antitrust team works on case
development and strategy, assesses strengths and weaknesses of economic
arguments, and gives analysis and advice to determine the best strategies.
Bates White consultants served as the lead economic experts in one of the largest
price-fixing cases in U.S. history, In re Vitamins Antitrust Litigation, which began in
1999. In the case, primary vitamin manufacturers admitted to participating in cartels
throughout the 1990s. Bates White Founder Charles Bates led a team in an economic
analysis of the scheme, resulting in one of the largest settlements in U.S. antitrust
Bates Whi te
2006 Vault Inc. 646
history. As an outcome of this case and other competition work, Dr. Robert Marshall
and Dr. Matthew Raiff, both Bates White partners, were invited to share their
research on detecting cartels at the University of Amsterdam.
Playing FAIR
In response to the proposed FAIR act (Fairness in Asbestos Injury Resolution), The
American Legislative Exchange Council engaged Bates White to conduct a study in
2005 exploring potential asbestos claim amounts over the next 50 years. The study
forecasted potential claims of workers who might suffer diseases as a result of
asbestos exposure. The results, presented to the Senate Judiciary Committee,
estimated the cost at $300 billion to $695 billion over the next 50 years, a significant
hike from the Congressional Budget Offices proposed amount to compensate
victims. As a result of the firms findings, senators rejected the act, stating the
proposed $140 billion would be inadequate to cover expected victims claims.
Modeling a merger
In March 2006 the firm offered its economic analysis and expert testimony in the
largest utility transaction to date: the merger between utility companies Exelon
Corporation and Public Service Electric and Gas Company. Two Bates White
partnersBoris Steffen and Dr. Jonathan Lesserplayed a part in the proceedings
by quantifying and verifying synergy of the two companies and doing a cost-benefit
study to support the union.
Support for scholars
In 2006, Bates White expanded its graduate fellowship program with Penn State to
offer three doctoral candidates a grant, providing a stipend for tuition and fees for a
full academic year, as well as a full-time summer position in its Washington, D.C.,
office. The firm also announced that its 2006 fellowship program would establish the
Bates White Research Experience for Undergraduates (REU), which will allot
individual research grants to eight juniors at Penn State and four at Canisius College.
The firm also lends a hand in community service endeavors through its BW
Community Connection program, which keeps employees connected to the local area
in Washington, D.C., and San Diego. Bates White staffers regularly hold clothing
and food drives, in addition to preparing food at the DC Central Kitchen and
participating in other community activities. And Charles Bates annually contributes
fine wines for the firms holiday wine raffle; proceeds are matched by the firm and
then given to Bread for the City, which supports low-income residents in the
Bates Whi te
community. In 2005, employees also reached outside of the D.C. and San Diego
communities and made a monetary donation (also matched by the firm) to Rebuilding
Together, a nonprofit involved in rebuilding homes in New Orleans and other
hurricane-affected areas.
GETTING HIRED
Two recruiting tracks
There are two separate recruiting procedures for new hires at Bates White. For PhDs,
recruiters screen applicants at the American Economic Association meeting. Next,
these candidates are invited to the office for a day of interviews and a seminar. On
average, a prospective candidate meets about a dozen people, plus [those] attending
the seminar (about six to 10 people), says an insider.
For its undergraduate track, the firm looks for candidates at Princeton, George
Mason, Howard, Caltech and Wellesley, to name a few. After an initial interview on
campus, candidates progress to an office interview, usually lasting around six
hours. A source notes that everyone at the firm gets involved in hiring decisions,
explaining that the interview includes case studies, behavioral questions and a
lunch. It is conducted by a number of employees from all levels, thus giving the
candidate an idea of what kind of people work here. It also contributes to the
democratic atmosphere of the firm, where a committee decides if a candidate should
be hired, rather than leaving it in the hands of a select few. In our last recruiting
period, [there were] over 50 employees participating. Another consultant mentions
that written feedback and a meeting of interviewers of all ranks are used to
determine whether to make an offer. Significant emphasis is placed on fit with the
firms culture of teamwork and inclusion. Other qualified candidates are invited to
apply through the firms web site.
Work it out
The firm is looking for a wide range of candidates, some with an interest in public
policy questions relating to competition policy, both in the U.S. and abroad. During
the interview, were told, candidates who ask intelligent questions and show a logical
thinking process will make an impression. One insider explains, The important
thing in the case interviews is to be inquisitive and communicative. In my case
interview, I did not get the sense they were looking for someone who was perfect
and knew all the answers, but for someone who was able to work through a problem
Bates Whi te
2006 Vault Inc. 648
on the spot and be able to frame the problems and communicate with others possible
ways to work through them. Typical puzzle-type questions arent asked; instead,
questions are posed that tend to involve a business or litigation context, in which the
candidate must show familiarity with basic economic concepts, a consultant reports,
adding, We dont ask the how many blades of grass are there in Central Park kind
of question.
Make an impression
Bates White hires the cream of the crop, applying stringent standards in its selection
process. We are very, very selective. As we succeed to attract better and better
candidates each year, we are getting increasingly more selective. I am not sure, for
example, if some of our more senior-level people would be able to get a job offer
from us if they came through this year, divulges a source. One insider attests to the
uncompromising standard imposed and the attitude needed to get an offer from the
firm: Its a rigorous process. We require a transcript (3.5 GPA is the cutoff, and
nearly all our hires are 3.7 or above), resume, writing sample [and] cover letter. [For
undergraduate applicants,] the on-campus interview has two parts, case and
behavioral; youll need to show us youre quick-witted on the case, really
comfortable with math, able to develop a methodology and execute it, etc. And
impress us with your candor, professionalism, communication skills and enthusiasm
on the behavioral interview. Interviewers are known to take note of everything in
an applicants record. A source warns of a sure-fire way to blow it: write a cover
letter or conduct the interview as if we wont notice the glaringly negative stuff in
your transcript (failing grades, repeated courses, tough courses taken pass/fail). Trust
me, we notice everything. Confronting the negative stuff honestly can reflect well on
you (if the negative stuff is truly unreflective of the real you, or if you have a great
overcoming-my-weaknesses story). Ignoring it or sugarcoating it will doom you.
Were looking for standouts. People who leave us thinking, Wow, we need her. If
we have to think about whether youd be right for us, or whether you can handle the
intellectual rigor of our work, the answer is no.
OUR SURVEY SAYS
Too damn smart
Part of what distinguishes the culture at Bates White is the academic background of
many of its associates. Insiders call Bates White an interesting mix of the corporate
world and academia. As one manager puts it, This is also a culture of smarts: We
Bates Whi te
value and reward people who are bright, who learn new things quickly, who adapt to
new challenges. Consultants also enjoy the fact that most of their colleagues are
naturally curious and come from diverse backgrounds. One source offers,
Everyone here is very intelligent, and there is a large diversity of knowledge and
backgrounds. Makes for very interesting discussions in the workplace. Another
manager boasts, Everyone is too damn smart for their own good, but since everyone
knows itwell it all works out in the end.
Super supportive
Sources also repeatedly rave about the way colleagues help each other out. One of
my favorite parts of the firm is how friendly and supportive everyone is with each
other, states an analyst. A co-worker echoes the sentiment, saying, The culture at
the firm is excellent, as the employees at all levels are intelligent, friendly,
collaborative and supportive. Both superiors and peers want everyone to succeed and
find the type of work he wants. And a few insiders comment on the lack of
competitiveness among team members. It is also nice to be in an environment with
so many smart people who are not trying to advance at the expense of their peers,
expresses a consultant, while another source adds, I have never felt the need to
compete with them for higher-level positions in the company, which dramatically
improves team cooperation. Another employee notes that everyone seems very
personable, and I look forward to coming in to work every day. And as an insider
observes, Everyone is very approachable, whether youre asking them a question
about how to do an analysis or inviting them to happy hour. There are some social
opportunities, but no pressure to participate if you are not into that.
Joint efforts
The Bates White world revolves around teamwork. Insiders praise the collaborative
and very teaching/development-oriented environment, which is encouraged by the
way work is assigned to teams, rather than individuals. A source explains, We do
nearly everything in teams, even tasks that might seem like they could be done a
single person. So, for instance, when we need to create a script to run a statistical
analysis on a huge pile of data, well often have a pair of consultants working
togetherthey learn from each other, doing the coding together, catch each others
mistakes and make the whole process more social, more enjoyable.
Another consultant stresses the central role teamwork plays among all ranks at the
firm, stating, Collaboration is emphasized at all levels, and rewards are based on
bringing others with the best available skills onto teams to develop business and
execute projects. One insider says he values collaborating with the most senior
Bates Whi te
2006 Vault Inc. 650
partners at the firm on important issues and having the opportunity to really
contribute to the thought work that supports our theories in a case.
Open for comment
Supervisors at the firm garner accolades for their accessibility and willingness to
listen to junior consultants. The firm has a horizontal management structure, as
consultants can expect to be working directly with other consultants, managers,
principals and partners. Consultants often approach partners directly with any
concerns they have, and all top levels of managements are open to receiving
feedback. One analyst comments that [You] really get access to the senior levels
of the firm. [There are] regular consultant forums with senior managing partners.
And another source confirms the fact that consultants at every level are encouraged
to regularly interact with managers, and even principals and partners in our firm.
Bates White is reportedly a place where management is open to suggestions, even
from brand new team members. [Ive had] frequent collaboration with manager-
and partner-level staff. Good ideas are valued equally, regardless of your rank or how
many degrees you have, comments a junior consultant. And when it comes to
making major decisions, associates feel management considers their opinions. The
firms leaders are extremely open about critical management decisions, and actively
solicit input into those decisions, a consultant explains, while a rookie analyst
emphasizes that people are always willing to answer questions and talk through
issues. In addition, managers and partners value the input of the consultants.
Meet the client
Insiders at the firm also seem pleased with the amount of client interaction they get.
Asource says, [You get] lots of client access early on in your career. I have far more
client contact than I would at many competitors, and another agrees, I have had
many more opportunities for client exposure here than my peers have had at our
competitors. I attribute this to two factors: 1) my bosses, who are cool, and 2) the
fact that we are a growing firm means we can afford, or have to offer these types of
opportunities. One manager points out that he wasnt always happy with the level
of client interaction, recounting, I started off disappointed with the opportunities I
was being given to meet the clients, but I spoke up about it (tactfully but forcefully),
and things quickly got way better. No complaints anymore. The source continues,
But to be fair, it was also up to me to demonstrate my value to the clients and my
communication skills internally before I could be unleashed.
Bates Whi te
Home-based with options
Bates White insiders are generally pleased that travel is rare. Since many of the
firms clients are law firms in the D.C. area or on the West Coast, consultants travel
much less than many strategic consultants, according to sources. There are some
travel opportunities, but for most of us it is not a regular part of our schedule, an
analyst notes. Partners travel a bit more, but even at the manager level, travel is
scarce. I have traveled eight times in almost three years. Five of those were for
recruiting, a manager reports. And if consultants do go to a client outside their home
city, its often just for day trips. One source claims that the firm has guidelines that
make travel tolerable by giving employees a lot of discretion in planning a trip:
Travel is infrequent but it is a pleasure when we do go. Bates White is very flexible
in letting its employees choose where to stay, where to eat, the venue, etc. I love how
our firm allows us the freedom to make ourselves comfortable when we are far away
from the home office.
They like what they do
Sources report being generally satisfied with the workload at the firm; in most cases,
they work an average of 50 to 55 hours a week, with a lot of variation from week to
week. Hours are definitely irregular on many projects or depending on the amount
of work in house at any time. For example, you might have 80-hour weeks for two
weeks before a report is due, and then 35 to 40 the week after it is handed in, says
a consultant. When those long hours do roll around, the firms hourly pay structure
is extremely beneficial and makes working long hours less of an issue, according
to consultants. An insider reports, The amount of work I do is exactly as promised.
I was told Id average about 50 hour weeks, and I do. Some weeks we have to work
late, but I usually know when it is coming and can plan accordingly. We can also take
it easy some weeks if we know that it will get busy or if we did just work long weeks.
I was told I might have to work weekends, but I have never had to, which is great.
Bates White insiders appreciate the work theyre given, even when the heavy hours
creep in. One colleague says that he doesnt mind long hours, since theres no busy
work involved: The work is extremely interesting and I am able to focus on
substantive work, rather than administrative work, which was the bane of my
previous employment. In addition to keeping reasonable hours overall, employees
dont seem to have trouble staying billable, were told. Unlike at other consulting
firms, Bates White does not view it as employees responsibility to keep billable,
and the firm finds work for slack resources, comments an associate. Another
consultant weighs in: Work total may not seem high, but you are actually working
Bates Whi te
2006 Vault Inc. 652
all of that time and not spending idle hours on the Internet or getting lunch.
Engagements tend to be long term, but there are also shorter projects within long
engagements that range from one week to one month.
Set your own hours
Insiders note that one advantage to working at Bates White is the flexibility granted
to employees. A manager reports that he arranges his schedule around an outside
hobby: There is no official flex-hour policy in place, but people work very different
schedules. I generally go kayaking two to three days a week before work and dont
come in until 10 a.m. [on] those days. A colleague also uses this flexibility to his
advantage, saying, Compared to my previous positionin the federal
governmentthe firm offers great flexibility in terms of when I do my work and how
I get it done, and adds, In part because key members of the firm are located in a
smaller office in California, the firm has technology in place to facilitate working at
a distance, and I can take advantage of this to work from home frequently to avoid a
long commute, and to accommodate both elder care and child care needs. Sources
also recognize that Bates White has set up a system to facilitate telecommuting
among consultants. We have a very slick, Citrix-based remote access setup. All our
data and applications live on servers that we can access from any Internet-connected
computer, explains an insider. Family crisis? You need to work from home? Just
e-mail your team to let them know. Nobody will complain. (In my case, Its raining
out; Im going to work from home until it dries up,) remarks an appreciative
associate.
Amanager agrees, We are expected to work very hard and be flexible enough to be
responsive to uncertain deadlines that often arise unexpectedly. That said, there are
many opportunities for individuals to be somewhat flexible with their schedules and
to adjust some of their workloads within certain limits. A colleague offers an
example of similar treatment: There are many weeks where I work less than 40 just
as there are some weeks where I work more than 60. The firm recognizes this reality
and is okay with us building flexibility into our schedules to take advantage of slow
periods. And one new mom explains her experience in cutting back hours: Since
life now includes a baby, Im not sure how it will work. I have not yet returned to
work from maternity leave, but the firm is doing the utmost to accommodate my
needs and my desire to work part time.
Pre-trial prep
Though associates claim management tries to work around consultants outside
commitments, they also realize that the client always comes first, especially with an
Bates Whi te
approaching court date. Occasionally the hours can pile up, notes an analyst. We
have court-imposed deadlines to honor and maniacally high standards to meet (we
have tothe other side in the litigation is going to scrutinize our work for flaws, so
thered better not be any), so things can get crazy before a deadline. The source
continues, explaining, We also do some very creative, cutting-edge analyses that we
cant assume will be successful on the first try, so we may spend days creating a
model that doesnt workand if weve got a commitment to show something to our
client, we may need to burn a lot of midnight oil going back to try another approach,
and another, and another. We do really sophisticated work, but that means not always
being able to predict how long it will take to do it, and that can mean long hours.
Management urges balance
Sources feel that the nature of litigation work puts an especially hard strain on
work/life balance. Our work is often in litigation ... and, therefore, can at times
require late nights and weekend hours. However, the firm puts a lot of effort into
being flexible where they can. Employees have a relatively large amount of
discretion about when they come into the office each morning and it is often easy to
leave work early when need be. Staffers suggest that management does a pretty
good job of making up for these erratic schedule demands. Because were generally
tied to a litigation schedule, you may have to give up dinner plans or a weekend away
to meet a deadline. However, my managers and team have always worked to
accommodate my schedule when possible, says one consultant. In addition, a D.C.-
based consultant asserts, excessive hours are sometimes unavoidable, but there are
few complaints because we all see how much the managers and partners do to push
back on clients so that we can have lives. And one senior consultant claims that the
firm has identified work/life balance as the key challenge it must meet in improving.
Scheduling conflicts
Still, some consultants are down on the level of work/life balance they experience at
the firm. The most frequent complaint employees raise is the uncertainty in
scheduling. Claims a source, Its nearly impossible to have scheduled activities
outside of work due to the unpredictable nature of the schedule. The unpredictability
is more of a problem than the sheer number of hours or weekends. This also makes
family life very difficult. Another insider claims that this unpredictability is the
biggest drawback of this firm, and suggests that senior management should do a
much better job in this respect if they are serious about keeping quality people here
[for] the long run. A consultant claims that overworking is looked favorably on
within the firm, especially in terms of promotions: Part of it depends on how
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2006 Vault Inc. 654
ambitious you are. If you want to be promoted as quickly as possible, the balance
will probably tilt toward work. And a colleague concurs that working too many
hours is the accepted custom. Alot of the corporate culture revolves around the peer
pressure to work, work, work.
Bates White University
For new analysts, the firm offers a foundation of training in the form of formal
courses at Bates White University. I have received a number of internal training
sessions for Stata, Excel, Access, Word and PowerPoint. I appreciate the fact that the
firm goes to the expense of training us well, says one consultant. For junior-level
associates, courses are also offered by each practice area, to develop skill-sets that
would be beneficial for their specific projects, but are open to the entire firm.
Beyond the first year, however, most training is unofficial, though insiders predict
that this will change in the near future. According to one consultant, our training
efforts are fairly weak. Part of that was due to our previous HR director who has been
replaced. I expect this will get better in the next year. There are lots of training
initiatives underway. Amanager admits that training for the upper levels should be
a goal for the firm, stating, New hire training is 50/50 formal/informal, and all
formal training is internally developed, so it is maximally beneficial to staff.
Ongoing training is a bit weak, especially for managers, but currently a large focus
of the management team. And a co-worker comments on the need for consistency
among training efforts: This (formal training) can vary widely; I personally received
excellent informal mentoring; others havent always. The process works well for a
small firm, but those expecting extensive formal big-firm training should look
elsewhere.
Coaches and sponsors
Despite the absence of many formal classes, employees are pleased with the
mentoring and informal learning that occurs on the job. Most of the training occurs
on the job with the help of a peer coach (another consultant) and a staff sponsor
(typically a manager), comments a source. Another insider says that although we
have developed these formal courses and they are used extensively, there are plenty
of gurus around to mentor junior staff and answer questions when you run into
problems. And a consultant adds, People are friendly and willing to help when you
have questions.
Bates Whi te
Whats your motivation?
Insiders say the promotion policy relies on 360 evaluations, where associates give
feedback on everyone they work with. As one consultant explains, in these 360-
degree reviews, anyone we know enough to comment on, we review. Sources
report that there is a set schedule for promotion, especially in the early stages. An
insider reveals, Consultants are frequently promoted after being with the firm for
approximately one year. After that, advancement tends to occur after two to four
years. There is not a set path but, on average, junior consultants are promoted
within a year and senior consultants are promoted within two years, reports one
analyst, adding that PhDs generally make it to manager in two to three years. An
associate notes that Bates White is better about advancement than other firms, saying,
Ive worked at a Big Five firm and a leading boutique, but Bates White is more
meritocratic than those firms by leaps and bounds. Particularly at the more junior
levels, people who do good work move ahead, sometimes with amazing speed. (The
topmost levels are another story, obviously, because ones value to the firm at high
levels has to do with whether one can bring in new clients, etc.) Another insider
emphasizes that employees at the firm can advance very quickly if they are capable
and efficient.
Sources also comment that it isnt necessary to have an advanced degree to move up.
[The firm] seems unusual in elevating people with undergraduate degrees to
management positions based on client and process management skills, as well as on
substantive contributions they can make, claims a partner. The key to advancement
is being open with supervisors about your career desires. One manager attests, You
need to take some responsibility for your career, and be candid about the kinds of
experience you want here, but you wont need to play politics or do anything sneaky
to get that experience. Just speak up.
Grow as you want to grow
Overall, sources say that promotions can happen fairly quickly at Bates White.
Consultants have the opportunity to advance very quickly in both title and
responsibility compared to anything else I have seen in the industry, claims a source.
Since there is no up-or-out policy, consultants are free to advance at their own pace.
One insider explains, Consultants easily advance to consultant II after one year.
Promotions beyond that do happento senior consultant, and also to managerbut
the promotions happen on different schedules for different people. Acolleague adds
that the firm keeps people on as long as they want to stay. Most young consultants
leave to pursue other things they are interested in, not because they are forced out.
Bates Whi te
2006 Vault Inc. 656
Theres definitely a sense that if you stick around long enough, youll be
appreciated. If consultants prove their worth, however, it seems the firm will work
with individuals to map out a career path. A manager says, As long as individuals
are meeting performance standards, they are not encouraged to leave just because
they are not advancing. Another manager, recalling the process from his own top-
down viewpoint, states, We do not hire people that we cannot envision as partners
one day. We only promote a person when he or she is ready for the next position. It
may take two years for a junior consultant to be promoted to a senior consultant if
the individual is talented or it make take five years. And, asserting the firms
meritocratic basis for promotions, another manager points out that there is no glass
ceiling for non-PhDs. Non-PhDs can make it to manager in four to five years; PhDs
generally make it to manager in two to three.
Talk to the therapist
The firm provides mentors for consultants to track their career progression or discuss
concerns. A manager remarks, We have what are called sponsors, usually
managers that have agreed to work with you individually to build a professional
development plan at the firm. We can choose our own sponsors, and this has been an
invaluable resource for me. Our work is very collaborative, which means that every
employee has the opportunity to work with higher management on a regular basis.
A colleague mentions that we have an incredible support system within the firm
where each employee is paired off with a peer to help with the adjustment into the
firm, and a manager-level employee to act as a professional advocate.
Aside from peer counselors and sponsors, Bates White provides another way for
employees to be able to talk about important issues, says an insider. The other
partners go out of their way to facilitate communications, to the extent of having an
organizational therapist who spends an hour or two a month with me to identify
issues and try to work out communications problems within the firm.
Showing its appreciation
The firm does an excellent job on the compensation front, insiders claim. Bates
White compensates its employees very well. It shows that the partners recognize the
quality of work each person does and what they contribute to the firm, offers an
associate. The firm prides itself on setting the high end of the compensation range
each year for entry-level positions, notes a source. And according to consultants,
yearly bonuses can be up to 30 percent of annual income.
Bates Whi te
Paid for overtime
Compensation isnt determined by a set salary, but is paid on an hourly basis, which
escalates beyond a threshold. Consultants are paid at an hourly rate. Additionally,
you accrue vacation time as you work, so youre compensated well for your time,
explains an insider. Sources say they are pleased with this method, and one employee
comments, I am proud of the fact that consultants are paid hourly instead of on
salary, so extra hours worked translate directly into increased pay. In addition to a
higher rate of compensation, extra vacation hours are accrued for every hour worked
over the 40-hour minimum.
Little things add up
Bates White loads up the perks, according to insiders, who say there is a constant
barrage of little things that the firm does for the employees. For example, Bates
White subsidizes gym fees and comps cab rides and dinners on late nights and
weekends, and it has a generous vacation policy of three weeks for new consultants
and five weeks for management, which a source asserts is better than elsewhere.
Bates White also covers tuition for outside classes that apply to the job. Aconsultant
notes, [The firm] encourages all employees to take outside classes to build their skill
sets, offering to cover tuition costs.
A well-fed team
Colleagues also celebrate birthdays with monthly Ben & Jerrys ice cream cakes for
everyone. And the firm provides free soda/Perrier, subsidized snack machine
(everythings 25 cents) and [if it] over-orders food for lunch meetings, the leftovers
[go] in the pantry for all to scavenge, divulges a source. One insider exclaims, I
love our free drinks (soda, coffee, juice, etc.) and our subsidized vending machine!
Another analyst raves about cool firm-sponsored events like Relaxation Day, where
everyone can sign up for a short appointment with a massage therapist, and a buffet
at the end of the day ... mmm, jumbo shrimp, notes a colleague. Often Bates White
hosts a dinner reception for associates to mingle, or holds sponsored activities, such
as bowling and softball. And some consultants hone their paddle skills on a ping-
pong table in the rec area. For managers, there is a retreat in the spring with families
welcome. One consultant enjoys the way the firm commemorates tenure with
cookies every year on our start date anniversary.
Pick an office
Consultants based in D.C. are thrilled about their new office space, which they
moved into in April 2006. The change is a welcome one, as employees frequently
Bates Whi te
2006 Vault Inc. 658
complained about the lack of windows and tight space due to firm growth in the old
space. Sources report that the new office is a very impressive, 10-plus state-of-
the-art facility. An insider explains that extensive efforts were made to integrate
the ideas and wishes of everyone throughout the firm in designing the space and
selecting furniture and finishes. Another consultant adds, The firm has been
extremely active in seeking our feedback on office design, as well as receptive to our
comments and suggestions when we offer it. Not only did employees get to weigh
in on the dcor, but consultants got to choose their own offices: Bates White allows
employees a fair amount of say in office space, decoration and so forth. We arent
assigned offices; we choose our own (rankings determined by title and tenure at the
firm).
Physical properties aside, consultants rave about the technical facilities at the office.
One source boasts, Our office facilities are awesome. We have an unusually large
and talented IT staff, for instance (and a huge IT budget), so we tend to have the best
technology. Its not unusual for junior staff to have spiffy dual monitor setups (data
on one screen, code on the other).
Women in economics
While the distribution of management at the firm is heavily male, consultants seem
to think the firm makes an earnest effort to recruit and retain women. An associate
comments, Women are very respected and valued herethere just arent all that
many of them (yet)! Bates White is making an effort to recruit more women, and
another concurs, stating that BW goes out of its way to hire women, [and] recruits
at all-womens schools. Afemale consultant points out, We have traditionally been
a firm with many men, but I can see they are actively trying to get more women. As
a woman, I have been wholly satisfied with my treatment here. I am respected as an
individual and my contributions are valued.
Insiders at Bates White attribute the gender imbalance at the firm to the lower number
of women enrolled in economics graduate programs: The firm is very receptive to
women and tries hard to recruit them. However, the truth is that upper management
(managers and above) is almost exclusively male, and economist PhDs tend to be
male, admits a manager. An associate agrees, Undeniably, the proportion of
women is less than half. Their proportion further decreases as one considers higher
and higher ranks. To be quite frank, the economics profession as a whole has a
disproportionate level of males (at the graduate level), so the whole thing might be
due to this reason. When looking at the hiring process, I have not felt any gender bias
at all. Another source opines, Were very receptive, but still very male. We recruit
Bates Whi te
overwhelmingly from the worlds of math, economics, the sciences, where women are
underrepresented. Were acutely aware of this, and looking actively to bring in more
women. I think were already doing a good job at the undergrad level; the gender
gap is more at the higher educational levels.
Global representation
Employees say Bates White does fairly well recruiting and retaining minorities but
admit there are still some underrepresented groups. The firm is extremely
committed to improving its diversity. I think we overemphasize traditional
minorities at the expense of the global diversity of our employees, who come from
China, Eastern Europe, Argentina, Brazil, Mexico, etc. We are intensively involved
with the Minority Corporation Counsel of America, asserts one associate. Another
consultant notes that, as with women, the level of minority representation dwindles
in the top rungs. At the consultant level, this firm is very diverse and brings in
individuals from a broad range of backgrounds. Upper management is considerably
less so.
A plan of inclusion
In the past year, minority diversity has become more of a priority when it comes to
recruiting. An insider comments, Due to our extensive growth, we have instituted a
diversity/inclusion plan in order to maintain our standards and to continue bringing
in a variety of different backgrounds. Another source explains how Bates White is
making extra effort to bring in and retain more diverse staff: The firm has addressed
this issue and targeted recruiting to schools with high minority enrollment. The firm
actively promotes diversity by hiring consultants from various backgrounds. To
reach a broader spectrum of African-American candidates, the firm has recruited at
traditionally all-black schools, such as Howard and Spelman. Other candidates come
from various backgrounds and countries. Bates White has employees from all six
major continents.
The firm notes that in 2005, it conducted an internal diversity assessment to evaluate
the openness of its culture. Since the assessment, a formal plan was developed and
all employees received diversity training. The firm is involved with the Minority
Corporate Counsel Association by sponsoring its golf tournament and hosting a
diversity dialogue for the organization.
Bates Whi te
2006 Vault Inc. 660
Out at the firm
There are no specific programs in place to reach out to gays and lesbians; however,
the firms reported attitude toward these groups is acceptance. One employee attests,
Im a gay man, Ive been out since I started (though for a while I had no particular
occasion to raise the subject), and I was promoted this year. We dont make an issue
of it (in a good way, not in a nervously pretending it doesnt exist way). The source
believes that this is just another expression of the firms meritocratic nature, adding,
We care about how good a consultant you are, not what you do with your free time.
My sexuality is irrelevant. Another source agrees, stating, I know few people who
are out at work, but I dont think it has anything to do with the firms culture. We
have several openly gay employees who have done extremely well in the firm, rising
to the manager level. Again, I believe that the firm is very open to anyone who does
good work. An insider says the attitude of his co-workers is welcoming. The firm
has made it clear that it is opposed to discrimination based on sexual orientation.
Everybody I know at this firm is tolerant of homosexuality.
The firm also offers health benefits to life partners, says a source, I dont know of
anyone at the firm who is openly gay, but I perceive the firm to be friendly to those
of varying sexual orientations. Our health care has partner benefits that extend to
same-sex partners, and I have never heard any comments that would be
discriminatory toward gays, lesbians or bisexuals.
Bread of choice
Firmwide participation in volunteer efforts is limited, sources say, but the firm does
financially support several charities on a regular basis. Comments a source, The senior
partner raffles off several bottles of very expensive wine from his private collection at
the holiday party and donates the proceeds, plus a matching contribution to Bread for the
City, a charity for underprivileged D.C. residents. We also have organized volunteer
events at the DC Central Kitchen. Another employee notes, I think Id prefer it if
employees had more say in which community groups we support. Bread for the City is
really the choice of Dr. Bates. Several insiders say they have participated in Race for
the Cure and Lawyers Have Hearts, both runs that raise funds for charities.
Some insiders suggest that, in the future, Bates White plans to get more involved in the
community. A senior consultant says, The company makes donations to charitable
groups (sometimes through 10K runs or marathons that the employees participate in),
but has not had as many volunteer opportunities recently. Initiatives are underway to
create more community volunteer opportunities. Another manager adds that the firm
is just starting a pro bono project related to diversity in the corporate law offices.
Bates Whi te
The Brattle Group
44 Brattle Street
Cambridge, MA 02138
Phone: (617) 864-7900
Fax: (617) 864-1576
www.brattle.com
LOCATIONS
Cambridge, MA (HQ)
San Francisco, CA
Washington, DC
Brussels
London
PRACTICE AREAS
Antitrust & Competition
Commercial Litigation & Damages
Energy
Securities
Tax
Valuation & Risk Management
THE STATS
Chairman: Peter Fox-Penner
President: M. Alexis Maniatis
2006 Employees: 172
2005 Employees: 165
UPPERS
Get to work with some of the
most brilliant minds in the field of
economics
There is no hierarchy
Intelligent and down-to-earth
co-workers
DOWNERS
Extraordinarily variable hours
Boston weather
Lack of financial reward for
research analysts who stay for
more than two years
EMPLOYMENT CONTACT
Megan Dunn
Recruiting Manager
1133 20th Street NW
Suite 800
Phone: (202) 955-5050
Fax: (202) 419-3335
E-mail: recruiting@brattle.com
www.brattle.com/Careers/Default.asp
2006 Vault Inc. 662
THE BUZZ
Small and nimble
Diverse
No depth
Narrow focus
THE SCOOP
Humble beginnings
The Brattle Group was founded in 1990 with an office in Harvard Square and just six
people. Today, the firm has 172 employees and five offices, and although those
numbers are still relatively small, Brattles engagements are most often with the big
boysstate, local and international governments; energy and telecommunication
firms; airlines and transportation companies; banks and brokerage houses; and
lobbyist groups. The Brattle Group provides economic consulting services and
expert testimony to clients worldwide with two main objectives in mind: to advise
clients through the dicey waters of regulation and litigation, and to ascertain a path
for clients through future market challenges.
Brainy big-wigs
With its beginnings closely tied to Harvard and MIT, it should come as no surprise
that Brattleites are a brainy bunch. Several Brattle principals have had distinguished
and notable careers: Chairman Peter Fox-Penner has testified before the U.S. Senate
in debates over approval of the national energy policy; San Francisco Principal and
Berkeley Professor Daniel McFadden was the co-winner of the 2000 Nobel Prize in
Economics for his development of theory and methods for analyzing discrete choice;
and Principal Robert J. Reynolds, an antitrust case expert who was assistant director
for economic Policy at the U.S. Department of Justice; and Dorothy Robyn was a
senior economic adviser to President Clinton. And if you still have your old B-school
textbooks, you may also recognize the names Richard Brealey (senior advisor) and
Stewart Myers (principal) who published the business school 101 text, Principles of
Corporate Finance.
Brattles battles
What does Brattle do with all of its influence and brainpower? According to the
firms web site, Brattle consultants conduct economic studies of past or projected
market structure and performance; assist in valuing assets and business opportunities;
and develop strategies to solve complex business or litigation problems. This all is
true, but sift through Brattles engagements and a more compelling story emerges.
Brattles real battleground lies between the courthouses, the offices of corporate
strategists and the think tanks of government policy-makers. Brattle experts often
serve as key witnesses, testifying in cases where major industry players go up against
The Brattle Group
powerful outside forces, including environmental litigation, deregulation, antitrust,
mergers and foreign markets.
Brattle in the mix
Although Brattle likes to keep its client list on the down-low, its history of headlining
high-profile engagements is worth noting. In March 2006, the firms name popped
up in the news as the lead arbiter in a case between big tobacco and state
governments. Brattle is analyzing the claim by Phillip Morris, RJ Reynolds and other
cigarette manufacturers that tariffs and fines have resulted in higher prices, reduced
demand and increased competition from smaller generic brands. Alot of money is at
stake$206 billion to be exactas the big-three cigarette companies look to
renegotiate the settlement they made with the state governments in 1997. Brattle also
created a report to the U.S. Department of Transportation in September 2005
concerning the ever-volatile airline industry. The firm advised that alliances between
airlines should not be immune from antitrust litigation.
Breaking into Belgium
In September 2005 Brattle opened an office in Brussels. Ex-Ofgem Director of
Strategy Boaz Moselle is head honcho at the new site. Moselle brings with him
extensive experience in the European energy industry, and the Brussels location will
be focused on this sector, as well as antitrust and competition. Brattle already has
significant European business, primarily in the energy sector, but also in the airline
industry. The firm has been a major adviser in the open skies agreement being
hatched between Europe and Americathe two continents are discussing
deregulation of transatlantic flights. Brattle research is directed towards finding
flaws in this deregulation model, as well as with identifying potential gains.
Publishing and prize-giving
Brattle consultants are no strangers to print. Brattle Chair Fox-Penner let the
newspapers know in March 2006 that he supports U.S. Senator Barak Obamas
proposal to earmark government aid to the ailing automotive industry. The aid is
intended to help the automakers pay employee health care costs in return for the
design and production of more fuel-efficient cars. And Dorothy Robyn made her
feelings heard in a February 2006 article, entitled The Sky Must Be No Limit to
Competition, published in the Financial Times, which made a case for deregulation
of the airline industry.
The Brattle Group
2006 Vault Inc. 664
Brattle also sponsors an annual contest for outstanding papers on corporate finance,
known as the Brattle Prize. First place carries a $10,000 award and publication in
The Journal of Finance. The 2005 winner analyzed the financial dynamics behind
debt and the runner-up had the tricky title of Testing Agency Theory with
Entrepreneur Effort and Wealth. The firm also received some recent praise itself,
being selected as one of the 25 best small companies to work for in America in June
2006 by the Great Place to Work
Institute. The organizations list, based on

randomly distributed employee opinion surveys, ranks the top-25 small and top-25
medium-sized companies in America that use strong people management strategies
to develop successful organizations with highly productive and satisfied workforces.
GETTING HIRED
A numbers game
Research analysts (RAs) usually come to Brattle straight from college and have
economics, mathematics, engineering or statistics backgrounds. The firm recruits
from schools known for their rigorous quantitative programs, including UC Berkeley,
Emory College, Columbia University, MIT, Carleton College and Wellesley.
Candidates can submit an application online if their school hasnt made it onto
Brattles recruiting calendar.
After an initial screening on campus or over the phone, a follow-up interview is held
at one of the firms offices. Candidates meet with as many as six or seven RAs,
associates and principals, who ask a combination of traditional, behavior-based
questions and case questions. Case questions often have an econometrics focus,
but a source adds that interviews are mostly behavioral. An insider states that all
candidates will face questions regarding their math background, and PhD candidates
can be expected to give a presentation on their dissertation.
OUR SURVEY SAYS
The Brattle balance
Brattle consultants praise the firms positive balance of easygoing casualness and
academic rigor. One insider notes, I have worked at two other consulting firms and
have found Brattle to be the most laid-back socially, while the most rigorous
analytically. Though the work is arduous, the firm seems to have a community feel.
The Brattle Group
Its a very academic, noncompetitive environment, a consultant says, while another
adds that the people are friendly, accessible and laid-back. A colleague credits the
firm, saying, Brattle has managed to retain its identity as collegial and objective firm
during a time of rapid growth.
Meshing with management
Brattle RAs appreciate the access to upper-level folks at the firm. One comments,
The best part of the firm is the opportunity to work with highest levels of
management. A junior consultant boasts, Compared to other consulting firms,
Brattle offers great opportunities for analysts to work with principals (partners) and
outside academic experts. RAs also benefit from close interaction with a Nobel
laureate in economics.
No law of averages
Brattle consultants describe work hours as inconsistent and schedules as erratic.
With hours ranging from 45 to over 65 a week, time spent in the office varies by
assignment. Asource reveals, There is no average assignment because the analysis
on each case differs. Some cases last a few weeks, whereas others span years. And
as another confirms, Work tends to come in ebbs and flows, especially for litigation-
related work.
Flexible face time
Though the hours may be long and unpredictable, the firm does offer some flexibility
and independence in terms of workload. Scheduling is flexible because face time
with clients is not stressed, so employees have the opportunity to come and go
according to their own preferences, as long as the work gets done, explains one
source. My schedule is very flexible around my family responsibilities. I often will
leave work early and work later at home. Completion of work is what counts, not
face time, an associate asserts.
Insiders say work/life balance at Brattle works best if you make it a priority. As one
source explains, Striking a balance between work and life is not difficult at Brattle.
However, you must communicate that you value your time. Each principals
management style has a direct impact on your time; the more organized they are, the
easier it is for you to achieve the right balance.
Another factor that contributes to a favorable work/life balance is the minimal travel
Brattle consultants face. There is an opportunity to travel if it is desired, but there
The Brattle Group
2006 Vault Inc. 666
is only a minimal requirement. Travel has little impact on an analysts work life,
notes an insider.
Training qualms
Reports on training at the firm are fickle and vary from office to office. One analyst
tells us that both official and informal training are utilized heavily. A colleague,
however, maintains that formal training is generally absent at the firm. Training is
largely informal and done within the context of project work. Other analysts are an
excellent resource, but official training remains lackluster.
According to several insiders, Brattle could improve training at the analyst level. A
source remarks, [I] would like to see more opportunities for analysts to lead. I
would also like to see a much more rigorous training program that gives analysts
sufficient time to develop their skills, without penalizing them for doing non-billable
work.
Back to school
Brattle consultants with an eye on partnership should set their sights on going to grad
school after the first two to four years at the firm, sources explain. Promotion is not
strictly up-or-out. However, a graduate degree is generally required to move up from
the research analyst position, an insider reports. Another analyst confirms this fact,
explaining that analysts cannot advance without leaving to get a graduate degree.
There are options, however, for consultants who desire an alternate career path.
According to one associate, Consultants advance when they are ready. We have a
second track for consultants with valuable expertise but who dont want to be [on the]
partner track. Another insider clarifies, For analysts, promotion opportunities are
limited. You are expected to work two to four years and then leave to pursue an
advanced degree. However, you may apply for a promotion to research associate
(more responsibility, higher salary) and in some cases may even be promoted to an
associate level.
Perks aplenty
When it comes to benefits, sources say Brattle delivers. For starters, employees
arent likely to go hungry, according to one associate who claims there are snacks
twice per day, a full refrigerator and company lunches or dinners every Friday.
Lucky for them, the firm also strongly encourages gym membership! One source
says the firm provides $400 for vision and gym, in addition to comprehensive health
insurance, as well as a profit-sharing contribution. Another raves about the health
The Brattle Group
club fee reimbursement and $100 to spend on something to decorate your office. A
colleague reveals that theres even a free Weight Watchers class in the office once a
week.
The perks dont stop there. The firm also encourages a colleagiate atmosphere by
planning weekly social events [that] range from wine-tasting trips to office paintball
to poker nights, boasts a consultant, and another lists Friday parties as a notable
bonus. As for the offices themselves, one insider says it feels sometimes as though
Im working in a Crate and Barrelso check out the stores catalog for the latest in
Brattle style.
Subpar salary
Employees at the firm give generally mediocre reviews of salary and bonuses, but
research analysts seem to gripe the most. Brattles compensation for starting
analysts is close to competitive, but the annual increases and bonus structure is not
competitive. In general, research analysts are very unhappy about their
compensation and many want to leave after one to two years. Brattle is lucky it
hasnt yet faced a mass exodus of analysts after one to two years, a consultant
gripes.
Team Brattle
Brattleites tend to feel that their firm is quite diverse in all respects. One upper-level
source says there is a very diverse workforce with people from all over the world.
And a D.C.-based colleague agrees: While the D.C. firm currently has no female
analysts, the other offices do. In the home office the majority are women.
According to another insider, The majority of research analysts are women.
Community involvement seems to take a back seat at Brattle. Several consultants
note the firms participation in charity drives and an annual charity gift drive around
the holidays, while others admit that they are not aware of any community service
initiatives at the company.
The Brattle Group
2006 Vault Inc. 668
Breakthrough Management
Group
1921 Corporate Center Circle
Longmont, CO 80501
Phone: (303) 827-0010
Fax: (303) 827-0011
www.bmgi.com
LOCATIONS
Longmont, CO (HQ)
PRACTICE AREAS
Business Process Management
Design for Six Sigma
Innovation
Performance Excellence
Six Sigma & Lean
Strategic Thinking & Hoshin
Planning
TRIZ
THE STATS
President & CEO: David Silverstein
2006 Employees: 85
2005 Employees: 90
UPPERS
Experiencing global growth
Family is invited to functions
DOWNERS
Occasional long hours and travel
Growing pains
EMPLOYMENT CONTACT
E-mail: employment@bmgi.com
www.bmgi.com/careers.aspx
THE SCOOP
Mountain home
You might not expect a firm headquartered in Longmont, Colo., nestled against the
foothills of the Rocky Mountains, to have a worldwide presence, but such is not the
case with Breakthrough Management Group. This relatively young firm, founded in
1999, has already expanded globally into such diverse spots as South Africa, Mexico,
Turkey, New Zealand and Malaysia. Recent office openings include the April 2003
addition of a Thailand location and, in July 2004, the firm set up shop in London.
A strategy consulting firm, BMG is manic for methodologies, especially when it
comes to Six Sigma, a popular approach to improving business processes by
examining data and eliminating defects in workflow, products and services. BMG
has hopped quite successfully on the Six Sigma and Performance Excellence
bandwagon and has a diverse client list, featuring big league players such as AOL,
Bechtel, Johnson & Johnson, Northrop Grumman and Siemens. BMG also works
with the smaller guys, and companies like Mount Carmel Health Systems,
MeadWestVaco, TAMKO Roofing Products and Wausau Mosinee Paper have leaned
on the firm for advice.
Six Sigma
BMG offers the whole gamut of Six Sigma services, the most obvious of which is
simply applying Six Sigma theory to business problems and client engagements. But
BMG also offers workshops and training in Six Sigma for senior management, and
provides on-site mentoring. The firm also dabbles in software development,
customizing existing solutions or creating in-house programs to analyze business
data.
BMGs suite of Six Sigma teaching programs falls under the umbrella moniker of
eLearning. With 180 hours of study, participants can earn a certified Six Sigma
eBlack Belt (if thats too much time, for a modest 16 hours you can earn a
distinguished eYellow Belt). In addition to Six Sigma, the firm has also branched out
to complimentary business theories, now embracing TRIZ (the Theory of Inventive
Problem Solving), Hoshin Planning and the Lean manufacturing model.
Vegas MC
If there was any doubt regarding Breakthroughs commitment to Six Sigma, in March
2006, the firm announced it would be the prime sponsor of the Six Sigma CEO of the
Breakthrough Management Group
2006 Vault Inc. 670
Year Award. Bestowed annually at the WCBF Global Six Sigma Summit, the 2006
award will be presented in Las Vegasby none other than BMG CEO David
Silverstein.
Software shake-up
In March 2005, BMG had a shake-up of sorts, selling off its software assets to
PowerSteering Inc. The details of the deal were not disclosed, but along with the
software, 10 developers also left BMG to join the Boston-based PowerSteering. At
the time, it seemed to outsiders that BMG was possibly trying to get out of the
proprietary software game. However, thats not the way things worked out.
PowerSteering has taken over BMGs ProjX program (a reporting and information
management system that tracks and manages Six Sigma and other performance
improvement initiatives), but BMG still sells the software itself. BMG and
PowerSteering have since formed a strategic partnership, giving BMG access to
PowerSteering customers and resources.
Partnership happy
In fact, BMG wasnt getting out of the software market at all, it was just looking for
more partners. In October 2005, the firm teamed with Raptor International to release
RapAnalysta deal in both of the firms best interest. RapAnalyst sifts through
complex sets of data and break it down into analyzable business information. Raptor
had already deployed the product, but only in South Africa, Australia and the Middle
East. After reaping success with companies such as Fosters Beer and Emirates
Airlines, the company wanted to branch out to the large American market, a service
Breakthrough could provide.
Buddying up for health
In May 2005, the firm made a move to strengthen its position in the health care field,
partnering with SterilTek, a company focused on process improvement in hospital
operating rooms and in sterile processing departments. The idea is to couple
SterilTeks deep industry knowledge with BMGs efficiency inspiring frameworks.
Publishing venture
Breakthrough actively promotes all the methodologies to which it subscribes. BMG
VP Neil DeCarlo is the author of one of the ubiquitous For Dummies booksthe
particular edition he authored was on Six Sigma, of course. In addition, in March
2005, DeCarlo decided to piggy back the release of this book by beginning an in-
house publishing venture. Breakthrough Performance Press was created shortly
thereafter, and in October 2005, released its first title, Insourcing Innovation, by
BMG CEO David Silverstein. Silverstein describes the text as applying a proven
methodology to the generation of new ideas. Its a process that is long overdue in
todays environment. Future volumes in the series will tackle Hoshin-Kanri
methods, Lean and change leadership.
GETTING HIRED
Second career, anyone?
The careers section of Breakthrough Management Groups web site is geared toward
candidates already equipped with some work experience, in search of a career
change. On the site, job seekers learn that the firm employs talented, dynamic
people with exceptional passion and depth in their respective areas of expertise.
BMG employees are dedicated team players who bring energy, professionalism and
fun to their work, according to the site. At this Colorado-based firm, smart,
motivated, creative people succeed.
BMG claims that it frequently has a number of openings for motivated, driven
individuals with a multitude of experience levels. Candidates are advised to review
current openings (listed on the site) or to send a resume directly to the firms
recruiters. Positions abound, with some located at BMGs Colorado headquarters
and others scattered throughout the U.S., or even in one of the firms international
offices.
A new twist on data
Candidates whose resumes attract the attention of recruiters normally engage in two
to three phone interviews, a source reports. If all goes well, they are asked to come
in for two to four face-to-face interviews. Applicants who are trying to become Six
Sigma trainers are asked to conduct training sessions as part of the interview
process. For all positions, BMG is looking for people who will fit in with its data-
driven, but also innovative culture, one thats always open to ideas and has an
open communication style, insiders say. Sources indicate that the firm is filled
with very high caliber Lean and Six Sigma experts and strategists, a number of
whom have developed new practice areas and have then led those practices.
2006 Vault Inc. 672
Buck Consultants
One Pennsylvania Plaza
New York, NY 10119
Phone: (212) 330-1000
Fax: (212) 695-4184
www.buckconsultants.com
LOCATIONS
New York, NY (HQ)
PRACTICE AREAS
Communications
Compensation
Global HR Consulting
Health Benefits
Human Resource
Administration/Outsourcing
Human Resource Management
Retirement
THE STATS
Employer Type: Independent
Consulting Subsidiary of Affiliated
Computer Services
Ticker Symbol: ACS (NYSE)
Executive Managing Director:
Christopher A. Michalak
UPPERS
Industry veterans
DOWNERS
Still sorting out ACS ownership
EMPLOYMENT CONTACT
www.acs-inc.com/career/index.html
THE BUZZ
Specialist
Does a good job
Small potatoes
Too much change
THE SCOOP
The Buck starts here
Buck Consultants has a long history of helping companies get the most from their
human capital, specializing in integrated HR solutions in the areas of retirement,
compensation, communications and health care. Bucks parent, ACS, offers
outsourced HR functions. The company got its start in 1916 as an actuary consulting
outfit with two employees. George Buck, the companys founder, was one of the first
to apply actuarial principles and funding to retirement plans. Buck Consultants has
since been a mover and a shaker the field of human resources, with such innovations
as the first fully integrated health savings account, the first global employee stock
ownership plan and a novel severance solution. Mellon Financial Corporation
acquired Buck in 1997, and gave the new subsidiary the eponymous name Mellon
HR&IS. In May 2005, Affiliated Computer Services (ACS), a Fortune 500 company
with more than 55,000 employees, purchased Mellon HR&IS for $405 million. ACS
revived the name Buck Consultants, and the rest is history.
The relationship between ACS and Buck has proven to be a successful one. Buck
brings its many years of HR consulting experience to the table, and ACS lends its
outsourcing expertise. ACSs reputation has helped Buck bring in more complex,
long-term contracts with large, prestigious firms and state governments, who can
save big by contracting out their human resources functions.
Retiring forces
One of Buck Consultants specialties is the design and implementation of retirement
programs, which has become big news in light of the imminent collective retirement
of the baby boomer generation. A prolonged bear market has taken a bite out of
pension funds, leaving retirement benefits for many people in jeopardy. Buck
Consultants has been called in to advise several underfunded retirement accounts. In
January 2006, the firm announced a four-year contract to provide consultation and
actuarial services for the state of Alaska, whose pension fund was $6.9 billion in the
red. Buck will be involved with several retirement systems in the state, including the
Public Employees, Teachers, Judicial, and National Guard and Naval Militia
Retirement System, encompassing over 98,000 active employees and retirees.
Buck also consulted for the Colorado Public Employees Retirement Association in
2005 and found that the associations pension fund only had approximately 70
percent of the capital it would need to cover future benefits. The $32 billion fund
Buck Consultants
2006 Vault Inc. 674
needs $143 million more per year, or average returns of 10 percent (and some scaling
back of benefits), to be sustainable. Some of Bucks other contracts include total
rewards analysis for the commonwealth of Virginia; retirement plan services for
Genlyte Group Inc.; consulting and administrative services for the Pension Benefit
Guaranty Corporation; and actuarial and pension management for LOreal in the
U.K.
Hunting season
Buck has faced some legal hurdles over the past couple of years. In July 2005, Buck
Consultants, among other firms, was sued in federal court in a case involving bungled
pension compensation for the Santa Clara Valley Transportation Authority retirees.
Seven retirees were collectively compensated an extra $145,000 due to mathematical
errors. In a separate case in June 2004, the Blyth and Blyth consulting firm of
Edinburgh took legal action against its actuary, David Kershaw, and Buck, his
employer. Blyth and Blyth went into receivership due to a $13 million deficit in its
pension scheme. All benefits were lost by 180 of the firms retirees due to the deficit,
and 80 more had their benefits reduced by 40 percent. Although the outcome of the
case has yet to be decided, Buck may not be at fault; three former Blyth and Blyth
trustees, who were also company executives, were charged in the case with
manipulating the pension scheme and retirement ages to boost their personal benefits.
Buck hits the books
In March 2006, ACS announced that it funded the Buck Consultants Assistant
Director of Actuarial Studies position at the University of Texas at Austin. (Student
club T-shirt slogan: If people would just die like theyre supposed to, our job would
be easy.) The position allows a member of the actuarial faculty time to advise
students, conduct research and perform administrative duties for the department of
actuarial studies. Buck Consultants is the only company in the industry to have an
actuarial professorship named for them. The firm regularly recruits from the schools
top-tier graduates with an actuarial concentration.
Spreading the gospel
Buck Consultants web site contains an array of reading material, including white
papers, newsletters, web casts and a magazine called Global View that covers various
issues in the HR industry. One white paper produced by the firm in 2005 lays out a
plan for reducing the burden of the cost of health care on employers. Suggestions in
the paper include communicating the importance of active employee engagement;
reshaping employees attitudes and expectations regarding health benefits; and
Buck Consultants
educating employees on how best to manage their health. In addition, the firm has
surveyed a number of companies on HR-related topics in order to provide
comparative data on compensation and benefits to other firms. The surveys are
available (usually for a fee) at www.bucksurveys.com.
GETTING HIRED
Going through ACS
Unfortunately for would-be Buck consultants, the firms online career site has been
hijacked (albeit peacefully) by its parent company, ACS. Job seekers will have to sift
through employment positions such as mailsorter and reconciliation clerk to find
any consulting opportunities. Rather than going through the hundreds of job titles to
do a search, your best bet is probably to use the View All Jobs button and scan
through the shortlist of recent postingslook for the Buck name in parenthesis after
the job number. So there is a high difficulty rating in usability, but the good news is
that once youve found a job, ACS provides decent descriptions and requirements.
Submitting your resume simply requires pasting it into your browser window.
Buck Consultants
2006 Vault Inc. 676
Candesic
Candesic Limited
New Zealand House
80 Haymarket
London SW1Y 4TQ
United Kingdom
Phone: 44 (0)20 7096 7680
Fax: 44 (0)20 7206 9383
www.candesic.com
LOCATIONS
London (HQ)
Paris
Affiliate network in 20 countries
PRACTICE AREAS
Consumer Goods/Retail
Financial Services
Health Care
Private Equity
Technology & Telecom
THE STATS
Founder: Dr. Leonid Shapiro
2006 Employees: 18
2005 Employees: 15
UPPERS
Flexibility, choice
Relaxed atmosphere
The most entrepreneurial a
consulting firm can get
Weve been battle-hardened as a
team and weve started to prosper
DOWNERS
Having to negotiate revenue splits
at start of project
The uncertainty about levels of work
and income
Startup risk, business volatility
Limited number of projects for
corporate clients
EMPLOYMENT CONTACT
Applicants can submit their CV to:
Marc Kitten
E-mail: talent@candesic.com
THE SCOOP
Consulting with a twist
While ex-McKinsey staffer Dr. Leonid Shapiro was waiting for an assignment during
the 2001 tech downturn, he decided to be proactive in the face of lagging
engagements and shaky job security: He started his own firm. With a few McKinsey
colleagues and a group of consultants from well-known firms, Candesic was born in
London in 2002. The founders goal was to create a team offering top-caliber
consulting experience and strategy that could undercut top-tier firms fees by two-
thirds, opening the market to smaller companies that may have never considered
hiring consultants. With a unique game plan, Candesic has extended the reach of the
consulting market to small firms as well as Fortune 500 companies.
The Ryanair of consulting
Modeled after the discount airline industry, Shapiro reworked the typical consulting
business model: The firm recruits only experienced consultants and may begin to
outsource the number crunching to India. Rather than using full-time employees,
Candesic draws on a team of 150 professionals who are a mix of independent
researchers and consultants employed in other industry firms. To cut down on
overhead, consultants are paid strictly based on performance, and the company keeps
its operating costs almost completely variable. This means consultants at the firm are
flexible and choose whether or not to accept assignments, and they are paid only
when staffed on a project. The business model also means that consultants are able
to pursue other interests simultaneously. For example, while undertaking a consulting
job, one staffer teaches business school courses, several are launching investment
funds and service businesses, and several spend their personal time in the arts. In
addition, the firm keeps a network of technical and industry affiliates at several
consulting firms to bring topical knowledge to clients on an as-needed basis.
Creative problem solvers
Candesics consultants are managed by four partners who evaluate a clients business
and assemble a small team with relevant sector and functional experience. The firm
encourages consultants to apply the strategies they have garnered from their
respective firms to their consulting projects, thereby incorporating major firms best
practices to solve problems creatively. Candesic covers a broad range of industries,
including financial services, health care, technology and telecom, consumer
goods/retail and private equity, as well as additional practice areas served with select
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2006 Vault Inc. 678
partner consultancies such as law firms, energy and utilities, aerospace and defense,
and the public sector.
Financial services projects in recent years have involved reviewing the strategy and
organization of the offshore center of a leading European private bank; helping an
investment bank to coordinate its growth initiatives across products lines; and
redesigning the equity business processes of another leading investment bank. The
tech practice has planned a Europe-wide Internet portal to devise a growth strategy,
and has helped an established mobile software startup company position itself for an
IPO. The private equity practice advised on the buyout of more than 25 European
assets in health care services, devices and pharmaceutical products, in addition to
buyout, expansion financing and distressed acquisitions of European assets in other
industries. And, together with its partner High Strategy, Candesic has also worked
with the CEOs of several European defense and aerospace firms on strategic issues.
Fit for business
In 2004, Candesic formed a health care due diligence unit based in London to target
companies involved in late-stage biotech, medical devices, medical services and
pharma spinoffs. Dr. Victor Chua, the practice leader, is a former surgeon who has
an extensive health care consulting background. With an MD as its founder and a
former surgeon as a partner, the firms practice is set to become a thriving medical
consulting group. Consultants in the practice advise on acquisition strategy,
European and U.S. market entry strategy, research strategy and marketing to
physicians and other key opinion leaders. Recently the firm helped one U.K. medical
device company plan a launch into the U.S. market. Candesic assisted by analyzing
the market, identifying barriers to entry, evaluating partners and helping the client
understand the device industry in the U.S. Consultants have also advised an
investment firm on a buyout of a multibillion dollar U.K. nursing home business,
conducting in-depth management interviews, setting benchmarks with other industry
players, and doing external interviews with the department of health and leading
industry experts.
GETTING HIRED
Its who you know
Candesics hiring is admittedly cliquish. Asource says its driven first and foremost
by networks. Since the firm only looks for experienced hires, personal
Candesi c
recommendations are the best way to land an interview. The firm tends to recruit
from McKinsey or other big strategy shops, and although new hires dont come to
Candesic straight out of school, the firm still gives preference to those hailing from
top-10 world B-schools or Oxbridge PhDs. In addition to consultants who are
seasoned, insiders say it takes a certain type to succeed at Candesic. The firm seeks
only consultants from the top strategy firms who, in addition, are entrepreneurial
enough to develop their own business, according to one insider.
The interview process itself is fairly simple. There are two partner interviews and
a meeting with some associates. One source comments that the requirements for
consultants might change for each engagement. So, in addition to meeting with
Candesic employees, people meet with the partners individually and then its just
project by project.
OUR SURVEY SAYS
Lovin it
Sources have nothing but love for Candesic culture. Among its most valued qualities
are the good people, the freedom, the responsibility, the flexibility, the location, the
day rate, the encouragement, one consultant happily rattles off. And though
employees call the firm easygoing, it definitely has a sharp side when it comes to
intellecta result of pulling consultants from top-tier firms. Our culture among us
is quite relaxed but retains the keenness of the analytical side of the big strategy
consultancies from where we come, an associate assures. Those who are ambitious
and want to be their own boss will also find that self-reliance is embraced. A
colleague confidently states, Working here means that my independent nature and
desire to take on all the responsibility I can grab are good things.
Making your mark
Candesic consultants appreciate the advantage of having a supportive group of
colleagues within an entrepreneurial setting. As one analyst claims, Despite a
reassuring focus delivering a quality product, [the firm] still manages to be a relaxed
and welcoming place to work. The key to this is Candesics loosely bound structure
where there is no one established way to do things. People are given a lot of
freedom to design their own approach to their work, and if you want to run with
something or try a different tack, you get supported to do that, an employee
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2006 Vault Inc. 680
comments. That is great if you enjoy the lack of stuffiness and ability to make your
mark.
Jacks of all trades
As often happens in a small firm, consultants of all levels may find themselves
wearing many hats. One consultant reports, Its a bit funny that one of the partners
is still our Mr. IT and general fix-it man. As a result, the firm probably isnt the
place for those who need structure or thrive on the conveniences of a large
corporation. But the benefit is a real feeling of entrepreneurship and absolute focus
on serving the client rather than the Candesic brand, according to an insider.
Togetherness
Sources say employees genuinely enjoy each others company. We tend to eat
together a lot in the restaurants around here, which is probably a good sign that we
still like each other after all this time, says a London associate. But while affable
and collaborative colleagues generally make for a positive workplace, some insiders
feel stifled by the culture of close camaraderie. One such consultant grumbles, Its
a bit like herding cats around here; everyone has to have a look in and a say on
everything, from lunch plans to grand firm strategy.
You call the shots
Despite its cohesive culture, Candesic is also a place where independence and
individuality stand out, which stems directly from its project-by-project operation.
For those seeking an environment where they can set their own schedule, Candesic
might just be the place for them. I decide when I want to work, at what time in the
morning, where and how long, one employee remarks. And as an associate puts it,
Theres that freedom you get from what is essentially working for yourself. If you
accept the risk that there may be no work forthcoming, then thats the reward.
All of this independence also has its downside, though. One consultant comments
that work/life balance during projects is difficult to gauge because weve done a lot
of due diligence over the last six months, which is particularly pressured. It can feel
like a pressure cooker for 10 daysbut its getting a lot easier as we develop our
systems and procedures, not to mention a knowledge base.
Custom-made calendars
Candesics project-by-project operation translates into an undefined schedule for
consultants. On one of the many short, killer projects, workdays may last as long
Candesi c
as 12 hours or more. On the plus side, however, if there isnt work, you dont have
to come in and work at all, a consultant says, adding, If you want the three months
off to do your own project or the two weeks to go to Mauritius, you can. In addition,
consultants have some say in their own travel requirements. An insider claims, As
far as I can, I choose projects in cities where I like to go: French Riviera, Italy,
Spain. When asked why employees are so satisfied at Candesic, one analyst
explains, The firm is our creation: it is made the way we want it to be. What could
be better?
Not starting from scratch
Candesic benefits from the fact that consultants join up already having a solid
knowledge base to work with. This means that most learning beyond that is left up to
the individual. An insider claims, The most important training is already provided at
previous firms. Regular knowledge sessions, coaching and on-the-job training complete
it. Additional executive education is an individuals responsibility. The company is
planning to boost its efforts in this area, according to a partner, who notes that there were
not too many events over last six months, but a good program [is] now in place for the
next 12 months.
Bread and butter
Relationships with partners play a prominent role at Candesic, since consultants have
to look to supervisors for the next assignment. An analyst explains, I have an
excellent relationship with the partners, but then, they are the bread and butter on a
day-to-day basis, even more directly than they would be in a big firm. Most sources
give high marks to their supervisors, acknowledging that a positive relationship
benefits both sides. If I didnt have their trust and respect, and vice versa, then I
couldnt work here and it would stop very quickly. Agrees a colleague, The
partners have given me all the rope I need to do my job properlyand if I need them
to do something, I can strongly imply what is needed to get something done. At the
same time, I can trust them to do a good job and build a strong reputation for our
outfit, which is so important for my long-term career.
All-important initiative
When it comes to promotion at Candesic, insiders say its a true meritocracy and
stress its informality compared to larger counterparts. As one colleague states, Its
a small firm, so its not bound by rigid hierarchy and promotion. Projects are staffed
according to the skill set of the individual, so an expert might find himself in a more
senior role on a project, which draws on his knowledge, but the same individual
Candesi c
2006 Vault Inc. 682
might have a much more junior role on one where he knows far less. A colleague
agrees: The promotion policy is, by nature, less formal and clear than a big firms
would be, and adds that you can advance as far as you like and if you show ability
in any dimension itll be picked on.
Advancement opportunities seem a bit unclear, though, because of the companys
project-by-project organization. However, as one consultant clarifies, Partnership is
certainly in the cards, though, if an associate showed she was fulfilling the
requirements. And although this hasnt happened yet, this source suggests, I think
theyd love to have their first completely homegrown partner.
Ready when you are
Regarding promotion, one thing is clear: Asure bet to the top hinges on ones ability
to bring in new business. Consultants agree that Candesic is open to initiative. If a
consultant brings in business, he/she can or will manage the client going forward, in
almost a partner role. Insiders report over and over again on the importance of being
entrepreneurial enough to develop your own business. One source describes the
companys attitude on the matter, saying, Associates are encouraged to show
initiative and take the lead in developing a client. Sometimes partners expectations
are high in this regard but not in a pressurized kind of waymore in an overeager
big brother style.
Feast or famine
Most colleagues at the firm agree that when theyre paid, theyre paid well. But since
there is no base salary or bonus in Candesic, and all compensation is project-based,
there is definitely an element of uncertainty. And because there is no real full-time
status, some months income can be scarce, while other months consultants rake it in.
Ive done better this year than a McKinsey associate, I believe, which is great. But
then a few months of quiet and that would change rapidly, confesses an insider. He
continues, The most important thing is whether the splits on individual projects are
fair, and I think they generally are. Partners certainly arent giving money away, but
will share more as associates progress or participate in developing work. Its fairly
transparent and appears well intentioned.
No safety net
One consultant takes compensation volatility in stride by thinking like a business
owner instead of an employee: Each project is a mini-deal in itself, and thats taught
me to negotiate on terms, communicate expectations on roles and commitment levels,
Candesi c
and truly manage upwards the partners as resources on projects I take the lead on.
He adds, Its forced me to become self-reliant and independent, especially not
having the pleasant but dulling effect of a nice safe salary check arriving every
month. I think theres a sense of pride in what weve managed to achieve so far, and
a sense of confidence as well.
Personalized perks
For the self-employed folks at Candesic, individuals are responsible for things like
health insurance and retirement accounts. However, some enjoy having freedom and
flexibility in other areas normally predetermined within most firms. One source
asserts, We can use any IT equipment we like. [Its a] good place for Mac lovers, for
example. Another mentions the quality food for lunch and dinner during projects
at the office and regular dinners at top London restaurants as a plus. The firm also
offers some complicated incentive schemes for all the partners, but not below that
level.
Office quips
In the true spirit of a startup, there is not much of a budget for workplace aesthetics.
Our offices are a little ad hoc. Perhaps cheap and cheerful would be the better
word, a consultant candidly states. Another insider concurs: I appreciate the need
to keep costs down, but sometimes wonder if it goes a bit too far. The office facilities
are spartan and a bit tired. The location of the office itself is popular with
associates, however. One colleague claims, The location is greatvery central and
lively. And associates seem to appreciate the little things. One analyst remarks,
The new coffee mugs were an improvement, I reckon. The firm expects these
negative sentiments to dwindle, however, as it opened a new office in July 2006 in
the heart of London, with expansive views of the city.
Candesic represents
Insiders find it hard to comment on the firms diversity because of its small size,
though one states that every religion, color and most nationalities are represented,
with no dominating nationality. And women seem to fare well at the firm; one
colleague mentions that in theory there is no difference between genders, but
women are particularly welcome.
The firm hasnt been too involved with community endeavors, but consultants are
involved individually in charities, education, mentoring and social development
projects. An insider notes, I know there is pro bono work going on, but mostly we
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2006 Vault Inc. 684
Capco
The Capital Markets Company Inc.
120 Broadway, 29th Floor
New York, NY 10271
Phone: (212) 284-8600
Fax: (212) 284-8601
www.capco.com
LOCATIONS
New York, NY
San Francisco, CA
Sunnyvale, CA
Amsterdam
Antwerp
Bangalore
Frankfurt
London
Paris
Singapore
Toronto
PRACTICE AREAS
Consulting
Asset Management
Capital Markets
Corporate & Investment Banking
Personal Financial Services
Managed Services
Hedge Fund Services
Reconciliation Services
Reference Data Services
THE STATS
Chairman & CEO: Rob Heyvaert
UPPERS
Firm is totally committed to
professional development
DOWNERS
New consulting hires required to
commit to the potential of 100
percent travel
EMPLOYMENT CONTACT
E-mail: us-cv@capco.com
THE SCOOP
Follow the finances
Capcos niche is financial servicesin fact, it calls itself the transformation firm for
financial services. Within that market, the Belgian-born firm provides integrated
consulting services, managed services (outsourcing) and technology products,
aiming to help clients increase revenue, reduce costs and enhance their controls.
Employing more than 550 staffers, Capco has offices in major financial centers
worldwide, including Amsterdam, Antwerp, New York, Frankfurt, London and
Singapore. The firms most recent office openings were in Toronto, in March 2005,
and Amsterdam, in the spring of 2006. The firm employs about 80 staffers in Canada
and 10 in the Netherlands.
Capcos consulting services include business strategy, operational process design,
business and technology architecture, program and project management, technology
development and implementation, and change management. As a provider of
managed services, the firm also offers specialized business process outsourcing
services, while its technology expertise provides products targeted to financial
services. In an effort to go beyond consulting, the firm will develop, acquire, run
and commercialize products for clients as needed, to help in areas such as specialized
data management. Clients come from the asset management, retail banking,
wholesale banking, market infrastructure and payments industries.
Masters of markets
Before founding Capco (then known as The Capital Markets Company NV) in 1998,
Chairman and CEO Rob Heyvaert served as CEO and president of systems integrator
and professional services firm Cimad Consultants. After building Cimad up to a
$120 million company employing more than 1,400 people, Heyvaert sold it to IBM,
going on to serve as general manager for Big Blues overall strategy for the capital
markets and securities segments. In 1998, The Capital Markets Company opened
offices in Belgium, London, New York and Frankfurt. These were followed by
offices in Paris, San Francisco and Singapore. In 2001, the firm was rebranded as
Capco to reflect its expansion into markets such as personal financial services and
asset management. In 2002, the firms president, Bill Irving, came onboard from
PwC Consulting.
Capco
2006 Vault Inc. 686
Deep-pocketed partners
It helps that Capco has friends in high places. In 2000, the firm landed a high-profile
joint venture with Reuters, to develop and commercialize reference data cleansing
software. Another big deal for the firm landed in 2002, when Capco entered a
strategic marketing alliance with HP, into which HP invested $30 million. Other
partners in various ventures include outsourcing giants Wipro and Ness
Technologies, along with tech services leader EDS.
A platform for all
In March 2006, the firm entered into a seven-year agreement to provide managed
reference data services to ING Group through its Capco Reference Data Services
(CRDS) division. The deal was seen as a milestone for the division, making CRDS
the first vendor to provide a managed securities and market reference data service
and platform that covers all asset classes and all data types. The firm also expanded
its offerings in February 2006, when it acquired managed services company
FundClear Solutions, integrating it into a new service line called Capco Hedge Fund
Services. The purchase gave Capco the ability to offer existing and startup funds a
scaleable, outsourced alternative to building and maintaining its own operations and
technical infrastructure.
Investing in India
Capco provides a range of services from its offshore facility in Bangalore, India. The
office, opened in 2004, reached 100 employees in 2005. Initially founded as a
service delivery center, the Indian office has grown to become more than just a tech
shop, offering consulting, technology and managed services to local and international
clients.
Financial thinkers
Capcos flagship publication, The Journal of Financial Transformation, is dedicated
to the advancement of leading thinking in the field of applied finance. The Journal,
available online for free to registered users, has been recognized with an Apex Award
for publication excellence. Through its Capco Institute, the firm has relationships
with academic leaders, a number of whom sit on the Journals editorial board. These
include institutions such as Wharton, INSEAD and the London Business School.
Capcos experts are often cited in the financial press, particularly in the area of hedge
funds. In publications like The Wall Street Journal and BusinessWeek, the firms
name calls up references to a hedge fund sleuth, or a provider of due diligence
Capco
services to help investors check the solidity of hedge funds before putting money into
them. Capco also publishes studies and surveys, such as a report issued in May 2006
with the London Business School, showing that the financial services industry is
going down the same offshoring and outsourcing route pioneered by the
manufacturing industry. Other reports take a broader view of the financial services
market, such as a March 2006 study finding that the U.S. banking industry faces
challenges in sustaining profitable growth through 2007.
GETTING HIRED
Open up
Under the Open Positions link on Capcos careers site, job seekers learn that the
firm is looking for talented, enthusiastic candidates who have extensive experience
working for top-tier organizations in financial services, consultancy or development
and/or who have a genuine interest in capital and global markets. Openings are
organized according to location, and each has its own hiring practices and e-mail
contact for resume submission. Candidates who submit resumes will be contacted
with further details about that locations hiring process.
R-E-S-P-E-C-T
The careers section of Capcos web site outlines the firms culture, the rewards it
offers to employees and current job openings. With regard to culture, Capco says it
is a place where mutual respect, integrity and commitment are the common thread
in all client interactions, as well as among colleagues and the financial community as
a whole. The site says employees at Capco come from a rich variety of cultures and
languages, organizational and personal backgrounds. The firm promotes personal
independence and entrepreneurship, high-quality teamwork and lifelong learning
and, as such, Capco is totally committed to the professional development of our
people, providing clear career direction and creating a supportive environment and
effective tools, which allow each individual to take responsibility for their chosen
development path.
Capco
2006 Vault Inc. 688
Celerant Consulting
45 Hayden Avenue
Lexington, MA 02421
Phone: (781) 674-0400
Fax: (781) 274-7204
www.celerantconsulting.com
LOCATIONS
Lexington, MA (US HQ)
Richmond, UK (Global HQ)
Amsterdam
Brussels
Copenhagen
Dsseldorf
Helsinki
Paris
Stockholm
Zurich
PRACTICE AREAS
Asset Management
Integrated Supply Chain
Organizational Effectiveness
Process Excellence
Revenue Generation
THE STATS
CEO: Ian Clarkson
CFO: Malcolm Glyn
President, Celerant Americas: David
Henderson
President, Celerant Europe: Eric
Guyader
2005 Employees: 526
2004 Employees: 584
UPPERS
Strong international presence
Constant learning
DOWNERS
Little name recognition outside of
Europe
Geared towards experienced hires
EMPLOYMENT CONTACT
E-mail: careers_us@celerant.cc
To contact offices in different
countries, see links listed on web
site:
www.celerantconsulting.com/Work_
Opportunities/great_place.aspx
THE SCOOP
Chadwick, Cambridge, Celerant
Prior to 1997, Celerant had a cozy little existence. It was formed in 1987 and, back
then, the firm was eponymously named by combining its two founders middle
names, which gave rise to the then firm name of Peter Chadwick. Chadwick saw its
revenue grow 50 percent in its first five years as an operational strategy advisor to
British-based firms and in 1992 decided to go global, opening offices across Europe
and the United States.
In 1997 the firm was bought by Cambridge Technology, a consultancy that
specialized in systems integration. Cambridge was riding a wave of interest in high-
tech and had been interested in expanding into European markets. The firm also
wanted to make its software-oriented services more attractive by coupling them with
traditional operations management advice. In 2001, the majority of the company was
bought by the network technology company Novell. That same year, to distinguish
more clearly between the services provided by the then-named Cambridge
Management Consulting from Cambridge Technology Partners, CMC launched a
rebranding campaign for its newly acquired consulting wing, choosing the current
moniker of Celerant Consulting.
Novells nervousness
It was an uncertain time for Celerant. Novell had done well for itself during the dot-
com boom, but after the bust there were fewer companies demanding its services and
network software. Still, everything seemed rosy as recently as early 2005. Talking
heads praised the companys move to acquire SUSE Linux and get back into the
corporate software game, and revenue in the Celerant division had increased from
$130 million to $162 million. Fast forward to November 2005, when Novell began
implementing a major restructuring plan, cutting 600 employees and announcing that
it was exploring strategic alternatives for its Celerant unit. Celerant has been on
the chopping block ever since.
What happened in those six months to turn boom from bust? Well, Celerants
revenue did fall in 2005, coming in at $6 million less than the previous year. But
really, considering the windfall of 2004 and the inhospitable business climate, thats
not such a big number. In a November 2005 interview with eWeek, Novell President
Ron Hovsepian stated, The DNA of the company has changed in my very short
tenure. The soul of the company is open standards and open source. Hes referring
Celerant Consulting
2006 Vault Inc. 690
to SUSE, of course, and as Red Hat Linux and other open source operating systems
have created an increasingly competitive marketplace for corporate servers and
desktops, it seems as if Novell has decided to get out of the consulting game and
focus on a market it considers higher growth. Celerant is no longer a part of Novell,
having completed a management buyout in May 2006 for roughly $77 million, with
financial backing from Caledonia Investments plc, a U.K. investment trust. In a big-
fish-eats-the-little-fish spin, Novell itself has become a takeover target; its difficulties
and a dip in earnings have made it an attractive acquisition for firms that want to
jump into the Linux game.
Closework
TM
Celerant has developed an impressive client list, including names like BP, Basell,
Church & Dwight, DSM and RadioShack. Celerant works closely with the
employees of its clients at both the shop floor and board room level to deliver
significant performance improvement that is both measurable and sustainable. Its
core piece of philosophy in working with these clients is what the firm dubs
Closework. What this boils down to is simple: understand a clients current
operational reality, determine what can be improved and then come up with the most
sustainable, user-friendly implementation scheme possible. Celerant claims to strike
a balance between a clients aspirations and what actually happens in their
organization. This involves working closely with those affected by potential
changes to make sure any new work processes are integrated into company life.
Institutional thinking
Although hearing about the Closework program may leave you with the impression
that Celerant is a touchy-feely, people-pleasing firm based on affecting behavioral
change, you can be sure that the company has a brainy side, as well. In 2001, it
founded the Celerant Institute to further the study of the popular Six Sigma
methodology (a system that aims to improve business processes with the goal of
making performance more predictable). Today, the institute has branched out to
conduct research in other cutting-edge business theories, conducting studies and
analyzing new strategies such as Lean, TRIZ and Shainin.
Celerant Consulting
GETTING HIRED
Turning experience into action
According to the company, Celerant is growing fast. That in turn means we can
offer enormous opportunities to consultants at every level to put their skills and
knowledge into action. That being said, it may be harder for those new to the
business to get their foot in the door at Celerant. Dont expect to see the company at
any university job fairs. One insider tells us that campus recruitment is low, due to
our focus on hiring people with industry experience. The firm does have an
excellent and easy-to-follow career section on its web site, though, with numerous
job opportunities organized by location and description. Whether you are applying
to a specific position or just contacting a local office, all you have to do is forward a
resume and cover letter. If an interview is offered, be prepared to make some quick
decisions. One staffer reports, The hiring process is very fast. You see two
managers in person and you have your offer within a week.
OUR SURVEY SAYS
Goodfellas
Celerant gets high marks for hiring some solid personalities. One insider states, Our
people are all open, approachable, good to be around. Other insiders enjoy the
challenging environment where each day is filled with constant learning. And
although staffers report working some weekends, occasionally they can take time
off in lieu.
Hone your skills
The firm has a merit-based promotion system; one director describes it as not up-or-
outspeed of advance depends on individual capability/appetite and vacancy. And
when it comes to paving the way for those advancements, consultants are split as to
the firms training efforts. Senior managers seem to be getting the sweeter end of the
deal, with one higher-up saying there are some excellent programs for senior-level
managers. He also specifically lauds the Executive Education program with
Stanford and INSEAD, plus the opportunity to attend other courses, subject to
approval. The source also points out that Celerant could do better in continuing to
improve performance management for mid/entry-level staff (on-the-job coaching).
Aconsultant who falls into that mid-entry-level category corroborates this assertion,
Celerant Consulting
2006 Vault Inc. 692
remarking, Celerant is great to work with to learn management tools and gives you
strong exposure to high senior managers. However, they do not have the tools to help
you grow as an employee, since training is not a priority in the company.
If youre looking to get involved in community service programs, Celerant supports
initiatives from consultants and sponsors its own events. One employee explains that
the firm supports various different initiatives in our different markets, either directly
or through employees who organize a charity event.
Celerant Consulting
CFI Group
625 Avis Drive
Ann Arbor, MI 48108
Phone: (734) 930-9090
Fax: (743) 930-0911
www.cfigroup.com
LOCATIONS
Ann Arbor, MI (HQ)
PRACTICE AREAS
Customer Satisfaction
Employee Satisfaction
Linkage
THE STATS
Chairman: Claes Fornell
UPPERS
Global ambitions
DOWNERS
Not a lot of variety in services
offered
EMPLOYMENT CONTACT
www.cfigroup.com/about_us/careers.
htm
2006 Vault Inc. 694
THE SCOOP
Customer contentment and condiments
In an October 2004 article of Marketing News, CFI Group Founder Claes Fornell was
asked to explain why he thought ketchup-maker Heinz consistently scores so high in
customer satisfaction surveys. His reason: To get the ketchup out of the bottle is
sometimes difficult, but you never have to call someone and have them come to your
kitchen and do it for you. CFI has been studying customerswhat drives them
away and what makes them loyal fanssince the firms inception in 1988, and has
been doing so across a broad array of industries, including telecommunications,
retail, shipping and banking, to name a few. CFI specializes in advising its clients on
how best to improve the perception of their products, with the end goal of insuring
repeat business. Because customer satisfaction is often tied directly to employee
performance (in service-oriented industries for example), CFI also offers to consult
on human resources issues, the theory being that a happy employee often makes a
happy customer.
CFIs approach is grounded in brainy mathematicsthe companys raison detre is
that customer satisfaction is a hidden financial that does not show up on balance
sheets but has a profound affect on a companys bottom line. In addition, the firm
believes that there exists a direct link between employees and customers, and that
with little risk, positive economic results can be achieved by paying close attention
to this relationship.
Satisfied?
The brainy side of CFIs methodology, and what it is best known for in the business
world, is its mathematical formulas, part of which are used to determine the
American Customer Satisfaction Index (ACSI). This economic indicator is
published quarterly in The Wall Street Journal and is used by a variety of a industries
to determine overall industry health, as well as to differentiate between competitors.
The ACSI reveals many interesting tidbits. For example, did you know that Papa
Johns pizza scores consistently higher with customers than Dominos or Pizza Hut?
Its true, and, at least for 2006, the study shows that Americans are happier with the
big pizza chains than they are with the big burger boys on the block, scoring way
ahead of McDonalds.
CFI Group
Crunching the numbers
CFI developed the software and metrics behind the ACSI and licenses it to the
University of Michigan, which, in turn, tabulates the results. For CFI, the real value
behind continuing to develop the ACSI is in demystifying customer satisfaction and
proving that there is a direct, quantifiable relationship between happy customers and
corporate earnings. It has patented the exact formulas behind the index and, for its
clients, CFI crunches the numbers in a more detailed fashion, hoping to uncover how
products and services can be improved. CFI does make the point however, that not
all improvements are no-brainers, stating, No matter how significant the
improvement on satisfaction, if it has little relevance to financial performance, it will
be a wasted effort. Its a simple three-step process for CFI: Figure out what changes
can be made to affect customer satisfaction; find the economic value of these
changes; and determine if employees have an impact on the customers happiness.
The answers to these questions result in a suitable action plan tailored to the specific
client.
GETTING HIRED
International opportunities
For information on how to apply to CFI, check out the firms web site, where youll
find e-mail contacts for each of the many CFI offices. According to the firm, a few
locations are on the hunt for research analysts and experienced consultants, as well
as MBA grads with a couple years of work on their resume. The company rhetoric
seems to hint that CFI is eager to hire. The firm says, The rapid growth of CFI
Group as a global consulting corporation opens up very attractive international career
opportunities. If you get your foot in the door, heres a pithy profile of who the firm
is looking for: ethical, adaptable, problem-solving leaders with solid academic
backgrounds and the ability to generate excitement.
CFI Group
2006 Vault Inc. 696
Clark Consulting
102 South Wynstone Park Drive
North Barrington, IL 60010
Phone: (847) 304-5800
Fax: (847) 304-7977
www.clarkconsulting.com/index.shtml
LOCATIONS
North Barrington, IL (HQ)
More than 70 offices in the US
PRACTICE AREAS
Banking Practice
Executive Benefits Practice
Federal Policy Group
Healthcare Group
Insurance Company Practice
Pearl Meyer & Partners
(Compensation Consulting)
THE STATS
Ticker Symbol: CLK (NYSE)
Chairman & CEO: Tom Wamberg
2006 Employees: 930
2005 Employees: 920
UPPERS
Promising growth potential
DOWNERS
Limited breadth of industries
EMPLOYMENT CONTACT
www.clarkconsulting.com/aboutus/
careers/index.shtml
THE SCOOP
Compensation champs
Clark Consulting, based near Chicago, describes itself as the largest public company
of its kind. What kind is that, you ask? Specifically, the firms mission is to help
companies keep their best people through a range of compensation, benefits and
organizational development services targeted toward various industriesa specialty
loosely defined as executive compensation consulting.
Clarks banking practice has helped more than 2,100 banking organizations recruit,
retain and reward to executives and directors, while its health care and insurance
industry practices perform similar services for those industries. The firm also
maintains an executive benefits practice, which works with Fortune 1000 companies,
and a federal policy group, a sort of lobbying organization that works to advance
clients legislative aims on Capitol Hill. Another Clark group, Pearl Meyer &
Partners, is a leading compensation consulting firm acquired in 2000.
Clark was founded in 1967 by Robert K. Clark and David A. Bardes, two executive
benefits gurus, who opened offices in Cleveland and Cincinnati. Originally known
as Clark/Bardes, the firm was one of the first in the country to develop specialized
executive benefits programs for banks. The 1980s brought big changes to the firm,
as Clark/Bardes moved its headquarters to Dallas under a new leader, Bud Smith. In
1988, Smith purchased the firm from Dave Bardes, its sole owner, after which Smith
resold 40 percent of the company to key employees. Clark/Bardes continued
developing innovative compensation services through the 1990s, including life
insurance programs, benefits financing and administration.
On a buying spree
The firms current head honcho, Tom Wamberg, took over from Bud Smith as
chairman and CEO in 1996. Clark/Bardes purchased Bank Compensation Strategies
in 1997, further solidifying its position in the banking sector. The firm launched a
successful IPO in 1998, listing its stock on the Nasdaq. The resources generated from
the public offering allowed the firm to enhance its operations and invest in growth.
More acquisitions followed, including Schoenke & Associates, Wiedemann &
Johnson, Management Compensation Group/Health Care, National Institute for
Community Banking and Bank Consultants of America.
Clark Consulting
2006 Vault Inc. 698
A pearl among consultancies
Clark/Bardes continued its aggressive momentum into the 21st century, with seven
more critical acquisitions. One high-profile buy was that of New York-based Pearl
Meyer & Partners, a leading executive compensation consultancy. Pearl Meyer
herself no longer has anything to do with her eponymous firm. An April 2006 article
in The Wall Street Journal noted that, under an earn-out arrangement made for the
stake in her firm, Meyer sold it for an initial $21.9 million in cash, plus an additional
$4 million in Clark stock, along with additional multimillion dollar cash payments if
Pearl Meyer & Partners achieved certain profit targets during the next 18 months.
Those targets werent reached due to a slowdown in business, so the earn-out didnt
materialize. Also on Clark/Bardes shopping list were The Watson Company, W.M.
Sheehan & Company, Compensation Resource Group, Inc., Christiansen &
Associates, Insurance Alliances Group and Forrest, Wagner & Associates.
Clark/Bardes became Clark/Bardes Consulting in 2001, and another string of
acquisitions followed, primarily in the executive benefits consulting arena. By early
2002, the firm had transferred its listing to the NYSE and, a year later, its name was
officially changed to Clark Consulting. The firm spent two years focusing on its own
organic growth before picking up with another string of acquisitions in 2005,
which included BancPlan, LLC, a company providing Internet-based software
products for use in consulting with financial institutions, Stratford Advisory Group,
an institutional investment firm, and MedEx, a provider of wholesale medical stop
loss insurance, and its affiliate Argos Advantage, a utilization management company.
In January 2006, the firm formed Clark Benson LLC, a subsidiary headed by James
M. Benson, former president and CEO of the John Hancock Life Insurance Company.
Clark Benson focuses on wealth transfer and employee benefits. In late 2005, the
firm expanded its consulting services for the banking industry.
Kudos to Clark
Clarks bold moves have gotten the firm noticed in the business press. The firm was
tapped in 2002 and 2003 as one of the countrys 200 best small companies by Forbes
magazine, while Consultants News named the firm among their top-75 consulting
firms in the world in 2003 and 2004. More recentlyas befits an HR-focused firm
Consulting Magazine named Clark a top company to work for in 2005.
A vote of confidence
In fiscal year 2005, Clark brought in $273.8 million, down from $315.6 million the
previous year. But the firm seems confident in its future successso confident, in
Clark Consulting
fact, that in March 2006, CEO Wamberg reduced his salary for 2006 to $50,000,
tying the rest of his compensation up in stock options as a vote of confidence in
Clarks performance. Certainly, demand remains strong for Clarks services: In July
2005, BusinessWeek noted that, under the watchful eye of the SEC and aggressive
law enforcers like New Yorks Attorney Generals Office, top executives are being
driven to firms such as Clark to make sure that areas such as deferred compensation
are crafted with the utmost care. And thanks to all those acquisitions, Clark now has
more than 70 offices in the U.S.
The AG takes notice
Of course, being a public company carries risks of greater scrutinyin March 2005, the
firm announced that it had received a subpoena from the New York Attorney Generals
office, looking for information on Clarks business practices related to the sale of
retirement products, including contingent commission agreements regarding retirement
product sales. The firm said it intended to cooperate fully with the investigation. More
trouble dogged Clark back in 2004, when it learned that the Securities & Exchange
Commission was investigating a former independent sales contractor with its banking
division, Robert Gallivan. The SEC was concerned about possible insider trading
activity by Gallivan, including trades involving bank clients of Clark Consulting.
Theres also an increasing risk of scrutiny as the media turns its attention toward
executive pay. An article in The New York Times in early 2006 scrutinized the executive
compensation of head honchos, including Ivan Seidenberg, CEO of Verizon. Though
Verizons stock plummeted by 26 percent during 2005, the article noted, Seidenbergs
compensation rose by 48 percent. Even worse, the Times argued, was the fact that
Verizons compensation consultant also performed other work for the company, creating
possible conflicts of interest. Though the article fingered Clark competitor Hewitt
Associates as the compensation consultant behind the design of the telecom execs
windfall, Clark was tarred with the same brush. The Times named Clark subsidiary Pearl
Meyers & Partners, along with Watson Wyatt, Towers Perrin and Mercer Human
Resources Consulting, among a list of firms that provide a vast array of services to
corporate clients. Whether or not the medias attention to executive compensation firms
will affect Clark remains to be seen, but the buzz suggests that pressure is mounting on
the SEC to tighten its rules about the types of services these firms provide to clients.
But Clark is generally known as a firm with a strong code of conduct. In February
2004, BusinessWeek reported on its strict adherence to a corporate code of ethics,
which CEO Wamberg distributes religiously to all staffers. The magazine noted that
ethics codes have more power if they come straight from the top.
Clark Consulting
2006 Vault Inc. 700
Washingtons tax guru
Clarks federal practice enjoys a high profile in Washington, D.C., thanks in part to its
leader, Kenneth Kies. The former staff director of the Joint Committee on Taxation on
the Hill, Kies was described by Beltway publication The Hill in May 2006 as the
capitals go-to guy for all things tax-related. The publication noted, With tax cuts in
conference and tax reform showing signs of life, corporations will not stop seeking out
Kies. In fact, among lobbying groups on the Hill, Clarks Federal Policy Group ranks
among the top 10 in terms of revenue, as it helps powerful clients anticipate and respond
to proposed legislative initiatives, shape administrative regulations and rulings, and
more. The firm counts several legislative changes among its victories, including the
retroactive withdrawal of 10-year-old regulations that had prevented the deduction of
losses on the sale of subsidiaries for corporations filing consolidated returns.
The firm publishes a variety of studies and surveys, including the annual Health Care
Executive Compensation survey, tracking total compensation, including salary,
benefits, incentives and more, and an Executive Retirement Report, tracking how
execs from specific demographics, such as baby boomers, are preparing for
retirement. The Pearl Meyers division also publishes industry surveys on topics such
as the use of tally sheets by companies to itemize executive compensation.
GETTING HIRED
Youll find it here
The careers section of Clark Consultings web site gives job seekers all the information
they need. Divided into two sectionsoverview and benefits, and current openings
the site says the firm is on the hunt for bright, energetic, fast-paced, results-oriented and
intensely committed professionals. It rewards these people with a comprehensive
benefits package that includes medical and dental coverage, short-term and long-term
disability coverage, life insurance, flexible benefits, cafeteria plan, medical expense
reimbursement plan, 401(k) incentive savings plan, employee stock purchase plan and
paid time off, according to the site. Committed to building and sustaining a diverse
workforce, Clark Consulting encourages all qualified candidates interested in open
positions (listed on the web site) to either send an e-mail inquiry to
bpjobs@clarkconsulting.com, or mail a resume to Clark Consulting, Attn: Human
Resources, 3600 American Boulevard West, Suite 200, Minneapolis, MN 55431.
Clark Consulting
Cohn Consulting Group, a
Division of J.H. Cohn LLP
4 Becker Farm Road
Roseland, NJ 07068
Phone: (973) 228-3500
Fax: (973) 228-0330
www.jhcohn.com
LOCATIONS
Roseland, NJ (HQ)
Eatontown, NJ
Jericho, NY
Lawrenceville, NJ
Metro Park, NJ
New York, NY
San Diego, CA
Cayman Islands
PRACTICE AREAS
Bankruptcy & Restructuring
Business Consulting
Employee Benefits & Pension Plans
Corporate Financing
Executive Search
Forensic Accounting & Litigation
IT Solutions & System Integration
Risk Management
Sarbanes-Oxley Compliance &
Governance
Valuations
Wealth Management
THE STATS
CEO: Thomas Marino
2005 Employees: 771
2004 Employees: 600
UPPERS
Big on gender diversity
DOWNERS
Little name recognition
EMPLOYMENT CONTACT
www.jhcohn.com/whyWorkForJHC.asp
2006 Vault Inc. 702
THE SCOOP
Accountant turned consultant
J.H. Cohn has been in business a long time. The firm was founded way back in 1919
in the hard-edged and diverse community of Newark, N.J.; the companys roots are
in accounting and tax preparation. In 1984, Cohn made the leap to the West Coast,
opening an office in San Diego.
Since 1992, business consulting services have largely been provided by the Cohn
Consulting Group division. Ranked 17th-largest by Crains NY Areas Largest
Management Consultants issue in April 2006 and No. 4 in NJBizs NJ Top
Management Consulting Firms issue in May 2006, this team of 175 consultants
offers services in corporate governanceincluding Sarbanes-Oxley, internal audit
and IT security consultingand performance consulting, including management
consulting, CRM, networking and other technology solutions and enterprise
performance management (EPM). The firm is considered a national leader in both
the corporate governance and EPM space.
Sarbanes-Oxley upsurge
Like many other accounting-savvy consulting firms, J.H. Cohn has profited
handsomely from Sarbanes-Oxley legislation and the increasing demand for
corporate financial controls. After Enron and WorldCom, watchful eyes turned to
other large companies; J.H. Cohn left those multinational giants for the big four
accounting firms to tackle. Instead, it went after a growing segment of medium-sized
companies that were also facing pressure to clean up their books. Once they entered
the market, J.H. Cohn immediately saw its revenue jump nearly 15 percent. In the
August 2005 issue of International Accounting, Glenn Davis, J.H. Cohns corporate
governance top dog, offered a colorful statement: Internal auditors have become
rock stars. Think about a world where CFOs and, to a certain extent, CEOs are in a
revolving door situation because of the Sarbanes-Oxley Act and the internal auditor
now has job security.
Pitchman
If you live in the Northeast, you may have heard the J.H. Cohn name recently. In
April 2006 the firm began the first stages of a multimillion-dollar advertisement
campaign centered around New York Yankee Manager Joe Torre. With initial focus
slated for the wealthy commuter suburbs of Westchester county and New Jersey, the
ads will eventually run in national publications, including The Wall Street Journal.
Cohn Consulting Group, a Divi sion of J.H. Cohn LLP
Associating itself with the nationally recognizable mug of Brooklyn-born Torre is
ostensibly a smart move, as it highlights the firms goals to continue aggressive
growth in the New York area, while at the same time gaining a higher profile across
the country.
GETTING HIRED
Try on different hats
Cohn Consulting Group recruits new business grads on campuscheck the web site
for an updated recruiting calendar. Other interested candidates may also apply for a
position on the site, which lists jobs by location and title. The firm seeks MBA
holders or graduates with masters degrees in accounting. The web site also lists
internship opportunities for graduate students.
Cohn Consulting looks for candidates with interpersonal skills, creativity, regulatory
knowledge and sales abilities. The firm says that new graduates wont be
pigeonholed doing only one kind of work, but will get a chance to explore a variety
of specializations within the industry, in order to find a niche.
Calling all women
J.H. Cohns objective is to double the number of its female executives in the next two
years, and strongly encourages women to apply. To meet its goal, the firm offers
flextime schedules, networking opportunities and one-on-one mentoring, all aimed at
attracting and retaining female talent. Candidates can read more about the initiative,
J.H. Cohn Professional Women, on the firms web site.
Cohn Consulting Group, a Divi sion of J.H. Cohn LLP
2006 Vault Inc. 704
420 Boylston Street
Boston, MA 02116
Phone: (617) 267-5959
Fax: (617) 267-8438
www.corporate-value.com
LOCATIONS
London (HQ)
14 offices around the globe
PRACTICE AREAS
Automotive Industry
Financial Services
Mining/Resources
Retail
Telecommunications
Transport
Utilities
THE STATS
Founder & Managing Partner:
Paul-Andr Rabate
UPPERS
Creative control of your work and
significant scope to develop your
own style
Smaller sized firm means that
junior staff has greater exposure to
clients as well as to senior staff
Feel like youre part of a team
Ability to take spouse on overseas
assignments
DOWNERS
Not a lot of exposure to different
industries
Does not provide the benefits a
large organization can provide
Sometimes hierarchical and little
transparency of management
decisions
Not as many missions in the
pipeline as in bigger consultancies
EMPLOYMENT CONTACT
CVA Inc. and Lochridge & Co.
420 Boylston Street
Boston, MA 02116
Phone: (617) 267-5959
Fax: (617) 267-8438
E-mail: recruitusa@corporate-value.com
Go to www.corporate-
value.com/join/cva_join_contacts.asp
for recruitment contacts in other
countries
THE SCOOP
Establishing an agenda
Corporate Value Associates is a firm that is hard to pigeonhole. It is a boutique
consultancy, yet its consultants are generalists who serve a broad array of industries;
they have deep roots in France and yet are fiercely global; they are positive on
established methodologies such as EVA and TSR, yet they are cautious about their
application. With 20 years in the business, CVA may have some contrarian
tendencies, but its stuck it out long enough to forge its own consistent philosophies.
The firm was launched in 1987 by three founding partners: Laurent Noual, Didier
Pain and Paul-Andr Rabate. From the get-go, they were thinking internationalthe
idea being to serve more customers through rapid expansion, but also to utilize their
network offices to become more proficient in handling problems that global
businesses face when sending supplies, products and ideas across national borders.
In its first year of existence, CVA opened locations in Amsterdam, Boston, London
and Paris. East Asian, Australian, Moroccan and additional European offices
followed in later years; in 2006 CVAopened its newest office in Beijing.
Differentiation
A global frame of mind, greater senior staff involvement with engagements and
working in especially close tandem with clients are notions standard to CVAs ethos.
The firm is also a proponent of proprietary methodologies used to measure a
companys value and find inefficiencies. Its particular twist on this is focusing on the
stakeholders in their clients business, rather than the shareholders. Whats the
difference? By stakeholders, CVA refers to the entire line of people involved in
any particular business. This means increasing value for the clients customers (CVA
calls this its Customer Centric Value Enhancement, or CCVE
), as well as for the

corporate board, the stockholders, the employees and even the businesss surrounding
community. The firms goal in all of this, as stated by Founder Paul-Andr Rabate,
is the commonwealth or general good, of all vested interests.
Teamwork is key
In working with clients, CVAbuilds a team that includes both its own consultants (of
all ranks) and the clients staff. The firms rationale for this approach is that client
involvement in the project helps ensure a complete transfer of knowledge from the
consultancy to the target firm. Furthermore, this team-based practice helps facilitate
a smooth flow from the strategy and analysis phase to the goal of implementation.
2006 Vault Inc. 706
For those interested in CVAs American operations, know that the firms Boston
office has a close partnership with Lochridge & Company. L&C shares many of
CVAs philosophies, especially the everything starts with the clients customer,
approach.
GETTING HIRED
Multicontinental recruiting
CVArecruits at Oxford, Cambridge and the London School of Economics, as well as
at top engineering and business schools in China, Australia, Japan, Germany and
France, for offices in those areas. The firms web site notes specific dates for its
campus presentations. Applications are also accepted from candidates who arent
studying at the universities on the list.
Case-based interviews
Interviews are conducted in several rounds. An insider explains, If you get through
the resume screening, you will be invited to a first-round interview, which consists of
three interviews based on case studies. If you are successful, there is a second round
of interviews with more senior people, again based on case studies. If you claim to
be fluent in a foreign language we are interested in, this will be tested. The third
and final interview is with a partner or the practice head, sources say, and the
interview process is centered around cases that gauge quantitative skills and logical
thinking abilities. An example of a typical case is: Evaluate the political and
economic consequences of converting the U.K. road system to continental
standards.
OUR SURVEY SAYS
A familial firm
CVAinsiders around the world claim theirs is a collegial community with good team
spirit. The prevailing opinion among this group is that every office is full of friendly
folks. A Melbourne consultant describes his office as laid-back and relaxed, and
adds, The focus is on getting the job done. The firms small size encourages
associates to get to know each other. Being a small firm makes it easier to maintain
an open and friendly familial culture in the firm. Senior management levels are very
approachable, comments a Londoner. Another insider notes that its a very friendly
and informal corporate culture, with a great atmosphere between consultants, with
great yearly extravaganza trips to remote and exotic destinations for the whole of
the office (including support staff). And a Berlin source raves, [Its] a great crowd,
we have loads of fun, its a great firm to work with. In stressed situations we must
work on remaining friendly while being firm.
The familial feel at the firm extends to the relationships between consultants and
managers. One insider calls it a horizontal colleagueship, and another agrees that
supervisors are very approachable. New employees enjoy the chance to work with
client management from the start. The smaller size of the firm offers excellent
opportunities to learn fast, get much responsibility early on in your career and interact
with senior CVA and client management on a frequent basis, claims an analyst. A
source in London concurs, Being part of a small firm brings also some more
responsibility, which wouldnt be given in a big firm at such an early stage.
No need to stick around
Consultants at CVA also appreciate that face time isnt part of the firms culture.
There is no pressure for long hours at all, but sometimes your mission requires you
[to] work late! For CVApartners and managers, a good consultant is somebody who
manages to do his/her work in a reasonable period of time (thus reaching a certain
level of efficiency), not the one who systematically leaves after midnight, explains
an associate. Another source maintains that quality of work is more important than
hanging around the office when it isnt necessary. Asenior consultant notes, Project
work can require very long hours, but there is no expectation of putting in face time.
It is expected that working hours reflect the amount of work that there is to do, but if
you have less work to do, you are encouraged to make the most of it, as there will be
plenty of occasions on which you will have more to do.
100-hour weeks
Insiders report that hours at CVA are tough: an average week is about 60 hours, and
a busy week can be over 100. A manager testifies that hours are highly variable
depending on the client and the project. I have, for example, worked an average of
100 hours a week on a regular basis in the past. On other projects, I have worked less
than 40 hours a week (this is a lot rarer). One analyst says that there are occasional
down periods: It depends on the stage of the case. In quieter times, I can work only
45 to 50 hours, but in busy times, [it] can be 80 to 90 (this happened three to four
weeks last year). Another source claims, [The average is] probably 60 hours, but
the range is probably between 50 and 120 hours. 120 hours does not occur too often
2006 Vault Inc. 708
but it can happen. In general I would be happier if I would work a little less, but this
is also a question of personal efficiency and other factors. As for weekends,
consultants average working about 10 weekends a year, though many report putting
in as many as 25.
Pan-European staffing
Though the hours may seem overbearing, insiders suggest that what really makes life
difficult is cross-border working and travel. CVA consultants frequently report
having to deal with excessive travel. One source explains the dilemma: The main
current problem is our recent move to pan-European staffing, which means most
people are working out of the country four to five days per week for extended
periods. This exhausts you and kills your social life, and everyone hates it. An
Aussie staffer agrees, stating, The travel is highly volatile and also takes place on a
global scale. There tend to be more assignments outside the home office than in the
home office. This implies a significant additional amount of less productive time in
travel, which adds to work hours. The excitement of jet-setting wears off quickly,
confesses a colleague, Travel starts as interesting, but after repeated exposure,
becomes a time-consuming burden that leaves little time to explore potentially
interesting new locations or to consolidate a stable base at home. And a staffer in
London adds, All the days blur into one, but I get a lot of hotel points. More
seriously, it makes it difficult to establish a strong sense of corporate identity or
official culture because you rarely see anyone from work other than the three people
on your project team.
Extended trips
Trips can range from two weeks to months at a time and, depending on the distance,
insiders say theres no guarantee that weekends will be spent at home. Occasionally
overseas or interstate projects require consultants to work away from home offices
for long periods of time (up to three to four months). This is more of an issue at more
senior levels, reveals a source. One analyst explains the situation further: The
impact depends upon location and whether or not I am able to return home for
Friday/the weekend. Insiders describe this lifestyle as disruptive, and one says it
makes him feel unsettled but admits its a good experience.
Grab what you can
Not surprisingly, all the travel can restrict work/life balance. One employee states, As
is the case in consulting, it is very hard to have a true work/life balance. I do not believe
this concept really exists in consulting with the pressures of projects and traveling, but
he claims that within the consulting industry, I think CVA is slightly better than
average. But several sources feel that the firm makes no real efforts to support
work/life balance, which makes it a challenge to attain. ALondon insider reports, The
company doesnt actively promote such a balanceits up to you to grab what you can,
which may mean throwing your toys out of the pram from time to time. Another
source agrees, grumbling, Travel and variable workload/deadlines make it difficult to
achieve stability and balance. Work and life are seen as the same thing. One thing
that helps the situation is flexible work hours. The source continues, I generally dont
work past 7 p.m., and hours can be flexible to accommodate personal commitments.
One recent hire feels similarly. He says that getting used to life in consulting is
difficult and adds, I have just started and am still coming to terms with the extremely
brief time that remains outside working hours. However, the firm is generally flexible
and understanding.
A few consultants say they have been able to juggle work and a personal life
effectively. Without partner and kids its feasible. However, it might be harder if
you have other commitments, claims a source. Another insider notes, On average,
[work/life balance is] no problem, except on short missions (due diligence) or before
final presentations. A major problem is holiday forecasting, as it is sometimes
cancelled when a new unexpected mission starts. One consultant expresses that
CVA has supported her choice to work part time in order to fit her schedule around
her family: For me, Ive always had a very full life out of work. I have worked part
time for the last eight years of my career and had two children. My firm has been
very accommodating in this regard.
Organization is the answer
For some associates, being extremely organized about work is the key to making time
for family life. I tried to complete all tasks in weekdays, thus I can spend my
weekends with my family and friends. I usually plan at least two personal travel
plans per year with my family, says a consultant. Another colleague in Paris states,
You are in charge of your own workload; one day you might need to be at the office
at 7 a.m. and leave at around midnightthose are intense days. But you might also
get organized and know that on a particular day you have not planned a lot, so its 10
a.m. in the office, [you have] time to read your personal mail, long lunch, leave at 6
p.m. ready to go out. Everything depends on your own organization, you are judged
on your result, not on your presence.
2006 Vault Inc. 710
Clients come first
Other insiders think the amount of work/life balance during an engagement hinges on
each project manager. Certain managers within the firm do try to foster a greater
sense of work/life balance, but project needs are always viewed as paramount. This,
combined with overpromising to clients/under-resourcing projects, often leads to
long hours, reports a consultant. A colleague agrees, confirming that management
is pretty understanding about family or private matters, but admits that a clients
assignment is always a clients assignment.
Learning in Langkawi
Formal training at CVA could stand some improvement, according to sources. One
analyst describes the firms program as minimal official training, lots of learning-
by-doing with advice and support. One insider reports, We had a short training, but
training on the job could be much more enforced and also the level of training could
be improved. Despite average reviews on training, insiders do rave about being
whisked away to places like the Langkawi Islands in Malaysia for yearly capital
sharing meetings.
Adaptable advancement
Associates are pleased with the promotion policies at the firm and claim that
individuals can advance as rapidly as they choose. A source explains, [Its] very
adaptable to individual performanceno up-or-out. Some people progress
extremely fast (twice the normal track maybe 20 to 30 percent of the time), and
reiterates that consultants advance as quickly as their ability allows. Reviews are
carried out every six months against a rigid set of criteria for each position. Quite
simply, if you fulfill the criteria, you will be promoted.
And while consultants agree that promotion is performance-based, some suggest that
there is, in fact, a loose up-or-out policy in place at the firm. One describes it as
implicitly up-or-out. Aconsultant in Sydney explains that there always has to be
progressif there is no belief/sign at all that people can improve, they have to
leave. A source in London views it in a slightly different light, pointing out that
there is no up-or-out policy, and consultants advance at their own pace. In practice,
consultants who are not progressing generally leave of their own accord, rather than
being pushed out. One associate suggests, The up-or-out policy seems to be more
active at more junior levels. There seems to be a greater accumulation of staff at
manager levels that have not advanced in some time.
Sour on salary
Satisfaction with compensation is mixed among consultants. A few insiders assert
that salary is above average, while the majority maintains compensation isnt up to
that of its competitors. One source complains, The firm claims to be able to offer
compensation way above that of its competitors, but it clearly has not checked what
its competitors actually offer, as it actually offers slightly lower compensation.
Annual bonuses are an average of 20 percent of salary, but can reach as high as 40
percent. In addition, midyear bonuses are given if profits have been very good,
reports a manager. One London source rants about the way raises are given: Pay
raises depend entirely on promotion. There are no inflationary increases and the pay
scale itself only appears to be reviewed if people are making a lot of noise about their
salaries being uncompetitive, despite claims that an annual benchmarking exercise
takes place.
See the world
CVAs worldly consultants cheer about perks like the annual company trip to fancy
places. The firm also gives regular break-out dinners and lavish Christmas
parties say sources. If anyone gets around to organizing it, [theres] a weekend
away in some exotic location. In the past, weve been to Dubai, Miami, Istanbul, a
consultant recalls. Others note the health insurance and subsidized gym fees as nice
extras.
Blame it on the job
CVA isnt known for housing a large female population, but insiders claim that this
is due to the nature of the consulting culture, rather than the firm itself. Comments
a senior manager, Were not that diverse because women drop out due to work/life
balance issues. [Its] not a cultural or receptivity issue, simply the job. Another
associate asserts, The firm tries hard to get the gender balance right, but it can be
difficult to find and keep women! In the Shanghai office, an insider mentions close
to 40 percent of consultants are female, but adds that there are limited female
members at manager or partner level.
Diversity abounds
With offices on five continents, CVA employs consultants of a naturally diverse
range. One Londoner comments, The ethnic make-up of the firm is broadly
reflective of that of the U.K. as a whole, given that we recruit university graduates
who come from all parts of the U.K. Ethnic background has never been an issue,
either positively or negatively. A consultant in Australia notes, Australia has over
2006 Vault Inc. 712
80 percent of the staff from a nationality outside Australia. Our teams comprise of
people from all parts of the world. CVA has managed to combine the skills and
culture of various origins. Another source remarks, Our people are from the most
different regional and cultural backgrounds. This is totally accepted, supported and
seen as enriching.
The firm doesnt have any stated policies to support gay and lesbian diversity, but the
general feeling among employees is that there is no discrimination. A manager in
London remarks, As far as I am aware, there is no company policy on this matter.
From my own perspective, its not the companys business in any case, since sexual
orientation doesnt affect your ability to do the job.
CVA is not involved in any charity work on a firmwide level. But one associate
mentions that the Seoul office makes an annual donation to some orphanages.
Droege & Comp.
David-Hansemann-Haus
Poststrasse 5-6
40213 Dsseldorf
Germany
Phone: 49-211-86731-0
Fax: 49-211-86731-111
www.droegeusa.com
LOCATIONS
Dsseldorf (HQ)
New York, NY
Hamburg
London
Lucerne
Moscow
Mumbai
Munich
Shanghai
Singapore
Vienna
PRACTICE AREAS
Change/Communication
Operational Excellence
Organizational/Leadership
Strategy/Portfolio
Turnaround Management
THE STATS
Chairman: Walter P.J. Droege
CEO: Dr. Christian Horn
CFO: Thomas K. Scheffold
2006 Employees: 350
2005 Employees: 325
UPPERS
Hands-on, no-fluff work compared
with other firms
High-level work for midmarket
companies
Really feel like being part of a
dynamic team, tangible growth
International reach
DOWNERS
Lack of brand name recognition
Lean infrastructure
Under-resourced and in desperate
need of talented consultants
Lack of formal training
EMPLOYMENT CONTACT
Droege & Comp.
Attn: Recruiting
405 Lexington Avenue, 35th Floor
New York, NY 10174
Phone: (212) 557-7616
Fax: (212) 557-6788
E-mail:
recruiting_newyork@droegeusa.com
2006 Vault Inc. 714
THE BUZZ
Decent niche competitor in
banking
Very analytical
Germany-focused
Has been strong in the past
THE SCOOP
Down-to-earth
Dsseldorf-based Droege & Comp. is the second-largest consulting firm of German origin,
trailing only behind Roland Berger. Founded in 1988, the firm operates 11 offices with
285 consultants and serves midsize to giant companies around the world. Droege prides
itself on being implementation-oriented with a focus on providing practical solutions rather
than strategy papers from the white tower. Consultants offer knowledge through:
strategy/portfolio, operational excellence, organizational/leadership, financial
management, turnaround management, and change/communication practice areas.
Droege serves a broad spectrum of industries, including information technology,
chemicals, media, health care, banking and retail firms, though about 45 percent of its
business comes from manufacturing clients.
Droeges motto is Transforming actionthe art of consulting, which means that
its consultants offer a pragmatic approach to problems and aim for real balance sheet
results, allowing clients to quantify the return on their investment. Unlike other
consultancies that bill hourly, the firm has a success-oriented fee structure. Revenue
growth of 100 percent in 2004 U.S. operations prompted Consulting Times to name
Droege one of the 20 U.S. Firms to Watch in 2005.
Expanding the expertise
Droege has been augmenting its global workforce to make a bigger splash in markets
outside of Germany. In January 2005, Gerald Corbae was named head of the London
office as part of the firms plan to boost its U.K. prominence. In June 2005, the firm
retained Professor Edward I. Altman as a senior advisor in the New York office.
Professor Altman teaches finance at NYUs Stern School of Business and heads
research in fixed-interest bonds and credit markets. In addition, he is an honorary
professor at several European universities, an advisor to the central bank of Italy, and
an expert in distressed investing (with his famous Z-score available on
Bloomberg). In the past few years, the firm has also announced new managing
director hires in its automotive, trade, logistics, consumer goods, chemicals and high-
tech divisions to build up sector-specific expertise.
Want to go global?
Following the globalization trend of industry giants, small and midsize companies
are getting in on the action. Droege plans to fill a niche by serving the rising number
of midsize companies with an eye on foreign markets. For clients looking to break
Droege & Comp.
into hot markets such as Central Europe or Asia, Droege consultants guide them
through the process, providing practical goals and on-site implementation.
Consultants first evaluate the new regions potential and locate suppliers, possible
partners and production facilities. Based on the areas potential, consultants then
help the client decide where to concentrate and how to structure the company.
Finally, the firms experts develop a blueprint and implement the entry plan. Droege
believes this is a huge growth area for its midsize clients facing stagnant domestic
markets.
Private equity focused
Over the past several years, Droege has ridden the buyout wave by forcefully joining
a group of top consulting firms that serve the private equity and hedge fund
community. With a particular focus on midsize funds and their portfolio companies,
Droege aims to bring world-class consulting to midmarket companies and their
financial sponsors. Most of the growth in North America has come from private
equity clients who typically hire Droege to conduct in-depth market and strategic due
diligence, as well as to improve or restructure the portfolio companies they already
own. Droege also serves hedge funds that cross into private equity investments.
Through special relationships with Columbia Business School and NYU Stern
School, Droege has organized high-profile conferences for its clients. The 2006
conference on active investing featured such keynote speakers as Carl Icahn and
Thomas H. Lee, and panels with founders of top hedge funds like Reservoir Capital,
Prides Capital, Plainfield Asset Management, Silver Point Capital and Angelo,
Gordon & Co. The 2005 conference on European private equity attracted senior-
level speakers from such leading private equity firms as Carlyle, Texas Pacific,
Blackstone and Apax Partners.
Delving into data
Droege touts its experience in international markets through well-known research
publications. In September 2005, the firm published Change Management, a how-to
book for companies undergoing structural change. Consultants also regularly
conduct analysis and publish both industry-wide overviews and reports developed
specifically for the high-tech sector. Agenda High Tech 2005 was a study of the
business plans of high-tech firms published by the firm. In other annual studies
Benchmarking Russia and Benchmarking Germanythe firm highlights
opportunities for American companies in those countries.
Droege also collaborates with various regional organizations on a number of projects.
The firm teams up annually with the German American Chamber of Commerce New
Droege & Comp.
2006 Vault Inc. 716
York to publish the GAPEX (German business in America Performance Index).
Calculated quarterly from data amassed from 1,400 German companies in the U.S.,
the GAPEX gauges the state of German business in the U.S. The 2005 GAPEX
reported steady growth of German businesses stateside, carried by machinery,
automotive and consumer products companies located in the Southeast and the
Midwest. Droege also partnered with the Singaporean-German Chamber of Industry
and Commerce to publish the first SIGRID (Singapore Index of German Regional
Business Development) in December 2005. Through SIGRID, 600 companies take
part in a quarterly survey to develop benchmarking information and performance
reviews for German business in Singapore.
GETTING HIRED
Selective but speedy
Droeges recruiters make the rounds at top East Coast schools. Columbia, NYU,
Harvard, MIT, Duke and Wharton all make the list. An insider reports that on-
campus interviews generally consist of a case-based first round with a mix of case
and behavioral questions in a second round (at the firms offices). The firm notes
that first rounds for experienced hires often take place over the phone in the form of
case interviews. During the second round of interviews, candidates can expect both
personality and case questions. Those who make it that far should be ready to
prepare a short presentation about themselves and present it to a group of current
employees. One analyst relates, They also made me do a short (two-slide)
presentation about me and how I would be a good fit with the firm, which was
stressful because it was in front of a group. Once past the painful process, insiders
claim that the decision turnaround is quick.
Sources say Droege is looking for consultants who are very accomplished, bright
and driven individuals. A manager comments, Were interested in seeing a
structured approach to problem solving in a case. Questions like this might pop up
in an interview: Looking at this table (handout is given), what can you tell me about
the companys market share?
Droege & Comp.
OUR SURVEY SAYS
Like family
When it comes to culture, insiders give Droege thumbs up all around. An insider
praises the amiable atmosphere with no hot shots, [and a] very collaborative
culture, while another raves about the small firm culture, but with large firm
resources. A junior consultant comments that everybody is funweve got some
real comedians here. Presentation deadlines can be stressful, but that comes with the
territory. And another source boasts, Every consultant working with the firm feels
ownership for the firms success, and we have a great family atmosphere. Others
enjoy the fact that field offices remain heavily influenced by German roots, but
remarkably independent of [the] parent company.
Co-workers are a big part of job satisfaction among employees, and Droeges team
reportedly gets along splendidly. The firm looks for hard workers, but also people
who are good to work with. Consultants in any firm spend a lot of time together, so
a good culture is important, explains a manager. Droege employees seem to like
each other so much that the group socializes regularly, mostly on a voluntary basis.
Everyones an entrepreneur
Many insiders comment on their appreciation of the entrepreneurial spirit that
pervades the firm. One colleague says its like working for a venture capital startup
company with none of the risk. And an analyst adds, The group has an
international culture (though many are U.S. citizens) and is very entrepreneurial.
Many consultants have run their own businesses.
Schmoozing
Insiders at the firm appreciate the chance to develop rapport with client management
while on engagements. Explains a source, The U.S. office of Droege offers
excellent opportunities for consultants to work face-to-face with the highest levels of
client management. Its the type of opportunity that consultants dont often get in big
firms. Another associate states, Developing relationships with private equity
investors and hedge funds is a huge perk for meI enjoy learning their perspectives
on business, markets and economy. And, claims another, Droege consultants form
a very close relationship with the top level of our clients. We are always retained
directly by ownership, the board or the CEO.
Droege & Comp.
2006 Vault Inc. 718
Not for slackers
Insiders at Droege put in at least 60 hours a week, on average, with some hitting 80
or 90. And employees add they have no problem staying billable. We are always
billableeven when we are in between projects, we conduct regular due diligence
exercises as part of an ongoing retainer with clients, confirms a junior colleague.
Some flexibility
With hours like these, sources acknowledge that work/life balance doesnt come
easily, but it is possible to achieve. Civilian/social life during the week is sorely
missed, but thats a part of a consultants life, one admits. But another urges that
with effective time management, it is possible to achieve a favorable balance. A
colleague agrees that there is a degree of personal initiative involved in maintaining
a work/life balance: Accountability is built in to the work/life balance choice you
make, but no one forces you.
The firm does seem to help out in making time for personal life. As one associate
states, [The] firm has worked with me on staffing more local projects since the birth
of my daughter, and another admits that there is the flexibility to work from home.
Overall, most insiders report that they can have a personal life on the side, despite
the rigid demands of the Droege workplace.
Road rules
But its not always up to the individual consultant to forge his own balance.
Associates concede that its tough when someone else makes the decisions about
work and travel. One consultant suggests that, The firm has expressed interest in
[improving] work/life balance, but it still depends heavily on the project manager to
make sure that projects require a minimum of late nights and weekends. Another
employee vents, Work/life balance can be a struggle. I truly dont mind having to
work or travel during my personal time if such is necessary. But I do mind the fact
that sometimes deadlines are pushed forward unnecessarily and travel to the project
site is mandated, even though there is no real need to be there.
When employees are on the road, travel is either Sunday or Monday through
Thursday, with Fridays in the office. [The] rigid Monday morning work schedule
requires either very early Monday morning travel or Sunday travel, which can be
both taxing and demoralizing, groans an insider. An even more disgruntled
globetrekker declares that travel will be the reason I leave the firm. Distances are
too far and client face time requirements are too strict. A colleague explains,
though, that travel varies widely depending on a consultants particular division.
Droege & Comp.
Depending on the practice in the firm, travel may be a lot more than what Ive
experienced. Another concurs, urging that a lot of Droeges projects can be
completed almost entirely from the office.
No hand-holding
Newbies better hit the ground running, since formal training simply isnt on the slate.
Droege insiders insist that they look for people that dont need a lot of hand-holding
and can start consulting engagements on day one. Insiders justify this no-training
approach with the notion that as a small, elite firm, we dont have the resources to
train or coach consultants, according to a senior consultant. Another concedes, We
make rare exceptions for extremely talented undergraduate interns where we will do
some on-the-job coaching. Consequently, the firm remarks, it carefully looks for
candidates with significant previous consulting experience with either big firms or
respected boutiques.
Another impediment to formal training can be attributed to the firms language
barriers. Since the firms roots are German, any training guidelines that might exist
arent accessible to most U.S. associates. Since most of our research is in German,
we have to create a lot of our intellectual capital from scratch, a U.S. employee
remarks.
Move it
Consultants at Droege either move up or out, though sources are up in the air on
whether an actual up-or-out policy is enforced. Some argue that it is strictly up-or-
out, while others contend that it depends on your skills. All admit, however, that
there is a bit of breathing room in the promotion timeframe. As one colleague
explains, The firm employs an up-or-out policy, but ample time is given for
employees to move to the next level. Consultants (post-MBAlevel) have one to three
years to move to the senior consultant level, which is adequate. Amanager suggests
the firm tends to hire top-notch, driven people who are ambitious and who intend
to stay: Everyone wants to succeed, so not many people leave, and promotions are
quick. And according to most insiders, the policy may not be quite as rigid as it
seems. As one states, While not strictly up-or-out, the firm does look for consultants
to prove their value quickly. Speed of advancement varies, but is likely faster than
peer firms for talented consultants. One New York-based associate agrees, stating
that given the growth of the company in New York, there is not a typical promotion
path, although promotions have happened relatively fast. Great opportunities for
promotion remain.
Droege & Comp.
2006 Vault Inc. 720
Skimming the fat
The small size of the firm dictates that consultants dont linger at the same level for
too long. Our firm is too lean to keep those that do not have a thriving future with
the firm. Consultants advance as quickly as their skills will allow. Complete
meritocracy, says an associate. A colleague adds that Droege provides regular
reviews so you know if youre on track for promotions.
On par
In general, insiders are satisfied with what they consider to be very competitive wages.
Droege & Comp. compensates its employees in line with top-flight consulting firms,
which is already relatively high relative to other industries, comments a source.
Employees may not know ahead of time what the bonus structure is, however.
According to one, bonus is fair, but not very transparent. I have no idea what my bonus
or upside potential is within the firm. Most insiders report receiving a signing bonus
ranging between 10 and 25 percent of their annual salary.
Wanderlust
In addition to a competitive salary, Droege employees are pleased with some unique
perks offered by the firm. Consultants firmwide get to attend company functions in
Europe twice a year. Asource enjoys the company Christmas party in Germany and
the company summer summit in Europe (Portugal this summer). In addition, there
are fun local dinners, which a team member says give us a chance to know our co-
workers outside of the work environment. Consultants are also given a 401(k) and
stock plan, and employees list paid time off, flexibility regarding unpaid time off
and support with immigration, as other prized perks.
Landmark location
The firms U.S. consultants marvel over getting to work in the fabulous Chrysler
Building. The firm reports that rapid growth in the U.S. practice made office space
particularly tight for a while. As a result, it recently tripled its New York office space,
taking over most of the same floor in the building from another tenant, thus
increasing its capacity to accommodate future growth. An associate comments on the
fact that the office surroundings indicate Droeges values: The relatively Spartan
offices are reflective of the firms emphasis on work and results over appearance.
Droege & Comp.
International flavor
Overall, the firm gets high marks for diversity relative to its size. According to one
insider, The firm has a great international flavor and a diverse ethnicity. Several
sources also emphasize the fact that the firm hires and promotes individuals based
on experience and talent alone. However, Droege could do more to recruit women,
insiders report. [We] need more gender diversity ([as we] lack women) in the U.S.
practice. But as far as treatment or promotions go, there is no bias or prejudice at all.
In fact, one of the stars of the company is one of the few females. With respect to
gays and lesbians, a colleague says, I dont even think sexual orientation is a factor
or issue in any context.
Effortless
Aside from holding nonprofit events to promote information about private equity
investing, Droege hasnt participated in community efforts on a regular basis.
According to a source, We have relationships with NYU Stern Salomon Center,
Columbias Chazen Institute and Icahn charities, but otherwise do not have any
formal community involvement programs. A colleague confesses that the firm
could be better about service initiatives.
Droege & Comp.
2006 Vault Inc. 722
555 Fifth Avenue
Seventh Floor
New York, NY 10017
Phone: (212) 901-0999
Fax: (212) 901-2999
www.eastonassociates.com
LOCATION
New York, NY (HQ)
PRACTICE AREAS
Corporate Development
Due Diligence Analysis
Health Care Industry
Marketing Strategy
Opportunity Assessment
Strategy Development
THE STATS
Chairman & Managing Director:
Robert Easton
2006 Employees: 34
2005 Employees: 34
UPPERS
The always-interesting, ever-
changing subject material
Laid-back lifestyle
Quite reasonable compensation
for 45 hours a week
In New York, exposure to the
business side of health care is
quite good
DOWNERS
Wish I had my own office
Needs clearer promotion policies
Not enough formalized training in
different areas of health care
Not a good demarcation between
the associate consultant and
consultant roles for new hires with
masters/PhDs
EMPLOYMENT CONTACT
www.eastonassociates.com/
careers.shtml
THE SCOOP
Medical history
Easton Associates is a small firm that focuses exclusively on the health care
industryleveraging more than 20 years experience of serving hospitals,
laboratories, insurers, medical technology companies and pharmaceutical
corporations. The Easton Associates name, however, has not been around for long;
in a previous life, many Easton staffers worked under the Wilkerson Group, which
served as a strategy consultant to biotech, medical supply and technology device
firms. One of its co-founders was Robert J. Easton. When IBM bought the
Wilkerson Group in 1996 for $20 million, Easton stayed on to become the managing
director of IBM Healthcare Consulting. However, in 2000, Easton decided to take
matters into his own hands and began Easton Associates, bringing several Wilkerson
staffers along with him. Each of the three senior managing directors at Easton
Robert Friedman, Michelle Hasson and Kristine Loweserved time at both the
Wilkerson Group and IBM Healthcare.
Easton anatomy
Easton divides its business offerings into five categories: opportunity assessment,
strategy development, corporate development, marketing strategy and due diligence
analysis. In its engagements, the firm emphasizes its longstanding relationships with
doctors, industry insiders and health care-friendly investment bankers, a network that
serves as Eastons mark of distinction.
Eastons engagements range from evaluating product concepts and innovative
medical business to assessing current trends, markets and upcoming developments.
Recent projects have included working with a European company to assess the
overseas potential of its new antifungal agent, and scouring the market for potential
acquisitions that could immediately accelerate the growth of a radiation therapy
company.
In the news
With such a specific focus, its no surprise that occasionally Easton staffers are
quoted in the news and tapped for their detailed statistics and industry analysis. In
December 2005, the firm released the dour news that 60 percent, or approximately
204,000, of the 334,000 AIDS patients taking the increasingly popular highly active
antiretroviral therapy will eventually prove to be resistant to one of the drugs that
makes up this treatment. And in May 2005, longtime Eastonite Richard Buxton
2006 Vault Inc. 724
appeared in a Technology Review article warning that, due to investor pressure,
pharmaceutical companies have become too focused on discovering the next
blockbuster drug. A March 2006 article in Bio-IT World also quotes Easton
consultants, who warn that those in the hot market of theranostics (diagnostic tests
administered rapidly during patient treatment, so that treatment can be altered at a
highly individual level) better tread with caution, as the infrastructure is not quite in
place to handle floods of tests. Easton staffers also make the trip to many of the big
health care conferences. In March 2006, Easton consultants presented their take on
recent mergers and acquisitions in the pharmaceutical industry at the Pharmaceutical
Strategic Outlook Conference in Boston.
GETTING HIRED
Prepare a PowerPoint
Easton recruits from a list of Ivy Leagues, such as Columbia, Harvard, Penn and
Dartmouth. The interview process consists of a first-round screening, followed by a
day of five interviews with all levels of staff. And for the kicker, candidates can
expect one case interview that is to be prepared ahead of time with PowerPoint
slides, tells an insider. One source gives a clue as to the type of question a candidate
may be asked, as well as the sort of answers an interviewer looks for: Aconsultant
asks for sales of a drug. What do you need to know in order to answer the question?
(Answer: U.S. or worldwide data? Latest data, or time series? As a percentage of
drug class? Do you have a preferred source? How do you want the data
spreadsheet, slide, Word document? When do you need it?)
Social and supportive
Insiders say they truly enjoy their colleagues and the social environment at Easton.
It is a collegial environment. We enjoy each others company, which is evident in
the effective manner in which our teams operate, offers a source. A consultant
remarks that she appreciates the extremely laid-back and encouraging atmosphere,
and a colleague adds, It is a very collegial culturethere is a good amount of
socialization after work, and people are generally friendly and helpful.
You take the lead
In addition to the close-knit community feel, one advantage of a firm as small as
Easton is that early on, consultants are often entrusted with a lot of responsibility and
the ability to take ownership of projects. It doesnt take too long before you are
given the opportunity to be the point-person with the client, [in] a completely
reasonable amount of time. After only about a year, I was given the responsibility
with some clients to be the direct contact person leading the day-to-day relationship.
This can greatly vary by client and project team or type, comments one insider.
Another source confirms that there is variability among the project managers, but
most are willing to give you a good deal of responsibility to run the project and work
directly with the client.
Easy on the travel
Employees appreciate that at Easton, travel is infrequent. Most say they are on the
road generally less than one day per week, and only for specific meetings during
the course of a project. One analyst notes, Usually, travel amounts to a kickoff
meeting, interim meeting and an end-of-project meeting at the client site. This
usually means a few days of travel per month: not much at all. An associate concurs,
We travel to clients and for medical/equity conferencesone day every two to three
weeks.
Consultants say hours at Easton are reasonable9 a.m. to 7 p.m. Of course, that
can vary with certain assignments, explains one source. As projects reach critical
points around meeting times, the hours can significantly increase, he says.
However, insiders report that they are happy with the fact that hours normally range
from 45 to 50 per week and that weekend work is rare.
Focus on balance
Reasonable hours and a light travel load contribute to what insiders consider a very
positive work/life balance. One new analyst remarks that balance is not a problem.
[Im] able to exercise frequently, pursue hobbies, etc., in the evenings and on
weekends. Im able to enjoy New York City. However, since schedules depend on
the supervisor, another consultant relates that balance can sometimes be a challenge.
Work/life balance depends entirely on who you are working for and how well the
project proposal was written. Managing directors are making an effort to set project
deadlines that dont require extremely long hours, but these projects do still happen.
Overall, though, sources maintain there is a strong focus on work/life balance at
the firm.
2006 Vault Inc. 726
Hope for the future
Some insiders are down on compensation at Easton, but expect that it will improve
in the coming year. EAis in the process of evaluating its compensation structure to
ensure it is in line with the market, notes a consultant. Most report that bonuses are
between 10 and 15 percent of base salary. The firm also offers options as you
progress within the companybut not much and it takes a while before you get
anything, claims a source. But another consultant is pleased with compensation,
noting that the reasonable hours make up for any lack in compensation: I get this
salary for 45 to 50 hour weeks. Per hour, I think I earn as much as my other
lawyer/banker/consultant friends in New York City.
Beefing up training
Sources report that they are not very satisfied with the training opportunities at the
firm, and say that most training is unofficial. An associate consultant adds that
lackluster training may have to do with the fact that coming into the firm, they
expect you to be a quick learner. But, associates agree that the situation has been
improving since the firm has brought in trainers from outside. Explains one
consultant, Generally, there is very unofficial training performed by different
members of the staff for new employees. We have improved greatly in bringing in
external companies to do more formal training throughout the year on project
management and presentation capabilities. Easton Associates is making an effort to
incorporate more formal training programs. In the past year, we have had one- to
two-day workshops on project management and presentation skills.
One insider has quite a few ideas for ways the firm can improve its formal training,
specifically on the topic of project management. Not everyone at EA has a strong
background in project management, so they might not look to see what tasks are
taking them (or teammates) much longer to complete than expected. As such, he
advises, teaching people how to scope out work, track hours, learn how long each
task takes to do, and assess and correct variability in length of time needed to do a
task would be important additions to the firms training offerings.
Groom from within
At Easton, promotion usually occurs every two to three years, and associates say
there is no up-or-out policy. Asource reports, The advancement varies by level, but
it is certainly not an up-or-out situation. We have employees with varied
backgrounds, from PhDs to MBAs to undergrads, so development time is varied from
person to person. Generally, two to three years at a particular level is expected. The
firm also tends to promote consultants who have learned to do things the Easton way.
[The firm] apparently likes to groom from within, as they have a specific
analysis/writing style, reveals a manager, who agrees that consultants move
positions every two to three years or so, it appears; not an up-or-out firm.
Picnics and happy hours
For a small firm, Easton is big on perks. On Mondays, outside speakers are brought
in for a learning lunch. One analyst recalls, We have lunch together every
Monday (on the firm), and lists, plenty of outings, such as a company picnic and
end-of-year holiday party as additional benefits. Another source appreciates the
flexibility in travel (budget for hotel, rental cars, airlines, etc., is quite reasonable).
In addition, Eastonites get to enjoy monthly office happy hours after work.
Consultants also boast about the nice office, with views of Fifth Avenue. And one
down-to-earth associate is thankful for the simple things, like the great coffee.
Equal representation
Insiders give high marks to all types of diversity at Easton, especially with respect to
gender diversity. One insider relates, It has never crossed my mind that being a
woman could be a hindrance at EA. Two of the founding partners are womenand
mothers. A source says it is equally split, even at the top level, [We have] three
men partners, and three women partnersquite a good gender balance.
At Easton, community service isnt a high priority at the firm, however. Aconsultant
comments that community initiatives are not necessarily company sponsored, but
usually someone in the office is involved with some program or initiative.
2006 Vault Inc. 728
Edgar, Dunn & Company
Hills Plaza
Two Harrison Street, Suite 310
San Francisco, CA 94105
Phone: (415) 977-1870
Fax: (415) 977-1879
www.edgardunn.com
LOCATIONS
San Francisco, CA (HQ)
Atlanta, GA
New York, NY
Frankfurt
London
Sydney
PRACTICE AREAS
Financial Analysis & Profitability
Industry Forums & Roundtables
Marketing
Operations
Payments & Financial Services
Risk Management
Strategy
THE STATS
Managing Director: David Poe
2006 Employees: 45
2005 Employees: 45
UPPERS
Very friendly and collaborative
culture
DOWNERS
No campus recruiting
EMPLOYMENT CONTACT
www.edgardunn.com/careers
E-mail: recruiting@edgardunn.com
2006 Vault Inc. 730
THE SCOOP
Taking credit
In 1978, three consultants, Jim Edgar, Peter Dunn and Todd Conover, left Touche
Ross & Company to create Edgar, Dunn & Conover in San Francisco. After its start
as a general management consulting group, the firm developed a specialization in
payments when it began getting most of its work from an international card
association and several California banks. When Conover left the firm, it was
renamed Edgar, Dunn & Company. Today, the firm offers advisory services to
players in the financial services and payments industry. EDCs 45 consultants work
in the analysis, design and implementation of payment products and services, and
advise executives at every stage of the payments process including issuers, acquirers,
associations/networks, processors, technology providers and merchants.
Gaining autonomy
After going through two mergers, EDC is again an independent firm. In 1990, it had
been sold to ICF, but was bought back by the founding partners in 1992. In August
2000, AppNet bought the firm, just before CommerceOne acquired them both. Soon
after, EDC broke away a second time. In 2003, the firm snapped up Co-Brand
Dynamics, a market research and consumer intelligence firm. Co-Brand Dynamics,
which became PaymentDynamics, conducts EDCs annual Preferred Payment
Survey and gives the firm insight into consumers payment preferences and
behaviors.
Consultants without borders
Through the 1990s, EDC continued to expand in Europe and Asia as demand for its
financial services consulting required. The firm opened offices in London and
Sydney in 1992 and 1996 respectively, putting it on the forefront of global payment
consulting. Its newest office opened in Frankfurt in 2004 to serve both Western and
Eastern European clients. These days, EDC counts more than two-thirds of the top-
25 U.S. credit card companies and more than 10 of the largest U.K. banks among its
clients. The firm offers what it calls borderless consulting, meaning it has created
a way to integrate services for its clients no matter where they are. Since commerce
is increasingly crossing national boundaries, EDC believes that offering a
consolidated global service is crucial to its clients.
Edgar Dunn is often recognized as an authority when it comes to the payments
industry. The firm puts out white papers and newsletters on industry issues and its
consultants are quoted often in newspapers and magazines such as Business Travel
News and Cardline. EDC research on the Internets impact on card payment
processing is cited in a March 2006 issue of The Retail Bulletin. In June 2005, Hugh
Gallagher, an Edgar Dunn manager, spoke with ABC News about fraud risk posed by
credit card middlemen. On MSNBC.com, EDC Director Alan Schultheis commented
on donating loyalty points earned on a credit card to charity in December 2005. That
year, the firm also published two studies examining the trend of offering loyalty
programs with credit cards: PaymentDynamics Rewards and Loyalty survey looked
at how much value customers attach to rewards programs, and the 2005 Small
Business Research study explored the recent development of payment providers
offering rewards to encourage small businesses to use card-based payments.
GETTING HIRED
Go out and get some experience
Recent college graduates who are interested in a career at Edgar Dunn should go to
work someplace else first, as the firm is looking for people with significant work
experience, ideally both in strategy consulting and in the financial services or
payment industries. In addition to experience, the firm says that it looks for
candidates with excellent conceptual and analytical skills, with a logical and
structured approach to problem solving. Future team members must also have strong
oral and written communication skills and demonstrated academic achievement, and
a self-starter mentality with the ability to succeed in a collaborative, unstructured
environment. Candidates who fit the profile should submit a resume online, through
the careers section of the firms web site.
Dont stress about case studies
Applicants whose resumes attract interest may be called for a pre-screen phone
interview with a recruiter, say sources, typically involving pre-screen questions.
Candidates will then have an on-site interview and a couple of follow-up calls with
the recruiter. One insider reports, The process took about three to four weeks,
adding that the interview process was more heavily focused on my experience,
ability and career goals than it was on case studies. Dont expect to avoid case
studies altogether, though. Aconsultant tells us that from his experience, there was
one case study to be completed during the on-site interview, and it lasted about 45
minutes.
2006 Vault Inc. 732
OUR SURVEY SAYS
All on the same team
Although sources say the atmosphere differs for each office at EDC, reports are
that the entire firm acts professionally, though one insider remarks that the San
Francisco office appears to be slightly more relaxed than others. Overall, staffers
comment, the culture is very friendly and collaborative. Aconsultant tells us that
emphasis is placed on working smart and performing billable work, and while the
firm affords a lot of opportunity to learn, employees report that theres not much in
the way of formal training. One insider notes that in his experience, There wasnt a
formal orientation for me, he adds that everyone was very helpful when I needed
something explained. Indeed, This company is full of intelligent, friendly people
that have an eye for business opportunities, says an employee. Morale seems to be
high on all levels, and though the company is spread out across the globe, there is a
definite sense of a team.
Own your career
At EDC, there doesnt appear to be an up-or-out mentality, says one insider, who
notes that some employees have occupied the same positions for years, without
pressure to move up. EDC clearly outlines on its web site the four career stages at
the firmconsultant, senior consultant, manager and directorwith a detailed
description of what it expects at each level. According to the web site, the firm works
with employees to build their consulting skills, and also creates opportunities for
them to take on significant responsibilities toward the growth and development of the
firm at every stage of their careers.
Exeter Group
One Canal Park
Cambridge, MA 02141
Phone: (617) 494-1600
Fax: (617) 528-5021
www.exeter.com
LOCATIONS
Cambridge, MA (HQ)
Los Angeles, CA
New York, NY
PRACTICE AREAS
Assessment, Planning & Strategy
Business Intelligence & Data
Warehousing
Custom Application Development
Program & Project Management
System Assessment & Selection
System Implementation &
Integration
THE STATS
CEO: Jonathan Kutchins
2006 Employees: 120
2005 Employees: 100
UPPERS
Good interaction with clients and
supervisors
DOWNERS
Narrow focus
EMPLOYMENT CONTACT
Recruiting Coordinator
Exeter Group, Inc.
One Canal Park
Cambridge MA 02141
E-mail: careers@exeter.com
2006 Vault Inc. 734
THE SCOOP
Leveraging technology
This small, Boston-based firm is focused on IT and the implementation of
technology. Exeter works with clients in a variety of industries, with specific
expertise in the higher education, government, health care and finance sectors. The
firm offers a suite of services that focus on improving business through better
software solutions. IT assessment is the first step in an Exeter engagement; once a
clients business is understood, Exeter is able to help with custom application
development, systems integration and data warehousing. The firm is also able to
guide clients toward existing packaged solutions and is able to put software in place
to help manage customer relationships and supply chains. CEO Jonathan Kutchins,
who began the company in 1984, summarizes the firms philosophy: At Exeter
Group, it is our mission to ensure that our clients achieve overall business success by
leveraging technology that withstands the changes of time.
Focus on higher ed
Although Exeter does not publicize most of its engagements, the firm claims to have
worked with Fortune 500 companies and its client list includes over 100 leading
institutions from around the world, among them Harvard, MIT and the University of
California. In its focus on the field of education, Exeter works to improve the
information technology involved in all aspects of university life, including student
systems, financial aid and human resources. According to the firm, solutions can
range from conducting business process evaluations to implementing and integrating
standard student system packages and building client-specific applications.
Government work
Indeed, Exeter has a special interest in the U.S. government. In June 2002, the
company spun off a subsidiary, Exeter Government Services, which is based outside
of Washington, D.C. CEO Kutchins was very forthcoming in tying the spin-off of
EGS to a desire to enter a growth market, unabashedly making the point that
President Bush had increased the 2003 budget for federal IT spending to $52 billion.
Kutchins was right when he bet that IT spending would only increase; in 2006, that
budget has grown to $65.2 billion. EGS can count the U.S. Marines, U.S. Navy, the
Department of Agriculture and the Department of Education among its government
clients.
Exeter Group
Have an IDEA?
Setting up software systems able to collect and process data for business intelligence
purposes is also an Exeter fortethe firm calls its particular solution in this area
IDEA, short for Informed Decisions Enabling Architecture. IDEAoperates under the
premise that a central repository for relevant business information, which presents
data in a manner that is easy to analyze, gives managers the ability to make well-
informed decisions.
GETTING HIRED
Exeter tech
Exeter focuses its recruiting efforts on the best technology schools and top-notch
liberal arts universities. Hires come from programs such as MIT, Georgia Tech and
Rensselaer Polytechnic, as well as Brown, Cornell and Middlebury. Its safe to say
that Exeter hunts for brainy applicants, especially promising computer science
graduates. However, outside of the firms software development positions, Exeter is
also looking for a few candidates with a more generalist background. An interest in
computing, coupled with a strong academic record is all thats required for those
starting on the ground floor as consultants. Current openings can be found on the
firms web site. Job descriptions are pretty detailed and include a comprehensive list
of desired skills and qualifications. For experienced hires, or for students attending
a school that the firm does not visit, Exeter makes it easy to applysimply send your
resume and a cover letter to careers@exeter.com.
Exeter Group
2006 Vault Inc. 736
Fair Isaac Corporation
901 Marquette Avenue
Suite 3200
Minneapolis, MN 55402
Phone: (612) 758-5200
www.fairisaac.com
LOCATIONS
Minneapolis, MN (HQ)
PRACTICE AREAS
Enterprise Decision Management
(EDM) Applications
EDM Custom Solutions
EDM Technology
Integrated Client Network (ICN)
Business Strategy Consulting
Consulting & Professional Services
Data Management Services
Fraud Consulting Services
Predictive Science Services
Solution & Technology Consulting
Strategy Science Services
Systems Integration Services
Scoring Solutions
Commercial Credit Scores
Consumer Credit Education
FICO Credit Scores
Insurance Scores
Marketing & Bankruptcy Scores
THE STATS
Ticker Symbol: FIC (NYSE)
CEO: Tom G. Grudnowski
UPPERS
Challenging, high-level business
mathematics
Performance is evaluated
elaborately
DOWNERS
Rough transition from integrating
product focus with consulting
services
Inconsistent cash-based incentives
EMPLOYMENT CONTACT
www.fairisaac.com/Fairisaac/Careers/
Opportunities
THE BUZZ
Top-notch analytics
Good work/life balance
One trick pony onlyno
breadth
Dorky
THE SCOOP
Whats the score?
Founded in 1956, Fair Isaac has a profile thats much more visible in financial and
credit circles than in management strategy consulting. The firm is rooted in
advanced analytics, or tools to help businesses function effectively. In fact,
chances are that youve encountered Fair Isaac without even realizing itthe firm is
the originator of the FICO score, the widely-used standard measure of credit risk.
Offering FICO-related services along with other popular analytic tools, Fair Isaac has
amassed an impressive client roster. Among its clients are nine of the top-10
companies in the Fortune 500, 99 of the top-100 U.S. banks and half of the top-50
banks in the world, and nine of the top-10 U.K. banks. The firms customer base isnt
limited to banks, thoughit also serves heavy hitters in the insurance, health care
and telecom worlds, as well as more than 150 retailers and more than 80 government
and public agencies.
A bid for Braun
The year 2004 brought lots of changes to the well-established firm, including an
expansion of its consulting business. In a bid to diversify its client base and expand
its talent base, Fair Isaac found a partner in management consultancy Braun
Consulting, which it purchased in November 2004 for just over $40 million.
According to a conference call held at the time of the acquisition, Fair Isaac
recognized that many of the nonfinancial clients to whom it hoped to pitch its
analytical tools and products first demanded upfront strategy and design work
before buying into a specific product or project, and Braun fit the bill.
The buy was fortunate for Braun, too. Founded in 1993, the Chicago-based firm
racked up business during the dot-com era, using the latest in customer relationship
management solutions to help clients marry marketing and information technology.
The firm had five U.S. offices as well as a stable of Fortune 500 clients. But as the
market plummeted, Brauns business slid toosales fell 40 percent in 2002 due to
decreased demand. This led to Braun slashing 25 percent of its workforce, as well as
an uncertain futureuntil Fair Isaac showed up.
Through the acquisition, Braun retained its 170-person staff, along with Founder and
CEO Steve Braun. Fair Isaac gained a whole new roster of nonfinancial customers,
including big players in the health care (Centers for Medicare and Medicaid
Fair I saac Corporation
2006 Vault Inc. 738
Services), retail (Staples) and pharmaceutical (Pfizer, Bristol-Myers Squibb)
industries.
Building up with London Bridge
Also in 2004, the firm acquired London Bridge Software Holdings, which extended
Fair Isaacs capabilities in several key areas, including late-stage collections and
recovery, mortgage originations, servicing and default, core banking servicing and
workflow business tools. It also added an e-commerce network called BridgeLink,
which enabled lenders to exchange data and manage transactions with third-party
service providers and business partners. Because of this acquisition, Fair Isaacs
clients benefited from new solutions that covered a wider range of industry and
lifecycle needs. The combined company also capitalized on opportunities to
integrate related software and business tools, as well as analytics.
Welcoming consulting to the fold
In April 2005, Fair Isaac arranged its services into two segments, one focused on
products, led by Michael Campbell, and the other focused on services organized by
industry segment, led by Braun. By 2005, the name Braun Consulting had all but
disappeared from the landscapethe consultancy was folded seamlessly into Fair
Isaac.
And in May, 2006, Fair Isaac reorganized its go-to-market function by a series of
more than 20 market segments labeled Integrated Client Networks, or ICNs, which
are arranged around industry, geography or unique client buying profile. The
companys traditional products business has been integrated into a suite of EDM
Applications, which continue to focus on various aspects of the customer life cycle.
In addition to specialized business strategy and other business consulting practice
areas that partner with the various ICNs to deliver value to clients, Fair Isaac
maintains a separate professional services group focused largely on product
implementation services.
At the end of fiscal 2005, Fair Isaac reported a revenue of $798.7 million, up from
$706.2 million in 2004. Revenue from the firms professional services arm,
including consulting, came in at $129.6 million, up from $96.7 million, a growth
partly attributable to the Braun acquisition. In March 2006, the firms shares dipped
following word of an alliance among the three major credit reporting bureaus,
which was expected to put a dent in Fair Isaacs FICO business. But analysts mostly
pooh-poohed the sell-off, calling the firms stock valuation fair.
Global roster
As of 2006, Fair Isaac still racked up clients from around the globe, mainly
publicizing deals with firms that implement its decision management and analytic
technology. In February 2006, leading South African fashion retailer Truworths
Limited became the first business in Africa to utilize Fair Isaacs strategy science
decision optimization technology, which helps companies with customer decision
strategies. Also in February, the firm announced that 20 organizations had joined its
global roster of users of the account and customer management solution TRIAD over
the past 15 months.
Take that, fraudsters!
Fraud-busting is big for many of Fair Isaacs clients and recently, thanks to its credit
industry ties, the firm has been cited in a slew of articles on identity theft, credit card
fraud and the like. In addition, Fair Isaac has stepped up with new services and
technologies to help fight fraudsters. In January 2006, the firm partnered with
MACH, a solutions provider for the telecom industry, to offer telecom operators
enhanced protection from fraud involving the roaming information associated with
wireless devices. In December 2005, the firm announced that both Fiserv EFT and
Alaska Option Network had signed on for its CardAlert Fraud Manager, which
allows for early identification and reporting of suspected counterfeit card and
skimming fraud. And in September 2005, the firm strengthened its identity fraud-
preventing services by adding two major providers of identity-validating data to its
Identity Clearinghouse. Earlier that year, the firm paired up with tech giant IBM to
offer new services designed to help banks combat fraud. Combining fraud control
systems, strategies and services from Fair Isaac and IBM, the initiative came on the
heels of the relaunch of Fair Isaacs Falcon One fraud-fighting software solution.
And the winner is
Fair Isaac racks up recognition for its solutions from an array of sources. In January
2006, Forrester Research named the firm a leader in the field of business rules
platforms. Intelligent Enterprise, published by CMP Media, named Fair Isaac the
winner of the Business Rules Engine category in its 2005 Readers Choice Awards
for best IT technologies. Also in 2005, the firm was named the Oracle North America
Titan Partner of the Year in the database category.
Fair Isaac continues to anticipate growth. In November 2005, the firm hired Toyoaki
Ishikawa to serve as managing director for its Japanese operations. The 20-year
industry vet was tapped to lead the development and execution of Fair Isaacs
2006 Vault Inc. 740
strategic growth plan in Japan. Previously, Ishikawa worked as a managing director
for BearingPoint in Japan. And in September 2005, the firm acquired some assets of
RulesPower, provider of high-performance business rules management systems.
GETTING HIRED
AP math
Fair Isaac loves math. So, of course, the firm is highly interested in candidates who
have expertise in statistics, business mathematics, operations research and computer
science. However, the firm notes that its emphasis on business consulting and client
relationships makes business grads and MBAs just as attractive. The company likes
to recruit from tech-oriented West Coast schools such as Caltech, as well as
prestigious institutions such as Berkeley and Stanford. But genius sprouts
everywhereno need to despair if youre an East Coaster with a knack for analytics:
Intelligence, business and client relationship skills, and an impressive resume can
trump your current geographic situation when applying to Fair Isaac.
The right stuff
Doing really hard stuff requires talented peoplethats Fair Isaacs recruiting
motto, which may also apply to landing a job at the firm without any leads. Check
out the firms web site for the latest opportunities, but dont expect a welcome mat.
The interface lets you search postings with keywords, but does not let you browse
through the listings, making it difficult to conduct a thorough search. Our tip? Try
searching without putting in any data, which pulls up a list of most available jobs.
Unfortunately, you may have to sift through descriptions for Cobol engineers based
in Bangalore, but at least youll get a larger sense of the gaps the firm needs to fill.
111 West Ocean Blvd.
4th Floor
Long Beach, CA 90802
Phone: (562) 624-5200
Fax: (562) 432-5774
www.fcg.com
LOCATIONS
Long Beach, CA (HQ)
18 additional offices worldwide
PRACTICE AREAS
Advisory Services
Applied Research
Implementation & Integration
Services
Outsourcing Services
Software Development
Technology-Related Services
THE STATS
Ticker Symbol: FCGI (Nasdaq)
CEO: Larry R. Ferguson
UPPERS
Challenges and opportunities for
personal and professional growth
Promotes independent practice;
self-directed work
Client first
Laid-back style
DOWNERS
Disconnect between the groups
that are on the road and the
central office
The virtual companyno sense of
team
The hours and the lack of
appreciation for those hours
All the upheaval with executive
leadership and stock
EMPLOYMENT CONTACT
www.fcg.com/Careers/Careers.aspx
2006 Vault Inc. 742
THE SCOOP
Hired help
FCG is a health care and technology services firm that serves hospitals, clinics, life
science organizations and health care plans, in addition to offering software
development services for independent software vendors. The firm was founded in
1980 and has offices scattered across the U.S., as well as in Europeit also does
significant IT work out of its Asia locations. FCG is focused on clinical and IT
consulting, software implementations, IT outsourcing including full IT, help desks
and advanced infrastructure services, as well as revamping the day-to-day business
and organizational processes for providers, plans and life sciences organizations.
Worldwide software
In August 2005, FCG made a move to rebrand and integrate its technology offerings,
renaming its software division from FCG Paragon to FCG Software Services.
Paragon was an acquisition, a Vietnam-based software firm that had expanded into
India and that FCG purchased in 2003. Integrating Paragon didnt mean FCG was
going to bring its new developers to the U.S., thoughFCG subscribes to the current
flat world theories of worldwide sourcing. FCG not only kept the 270-plus
developers in India, but it also kept the Ho Chi Minh city office open, as well as an
Atlanta location.
CEO changes
FCG has recently had some rocky times with its leadership. In November 2005, CEO
Luther Nussbaum resigned; the firm gave no reason for the resignation. Nussbaum
has been mum on the subject as well. FCG appointed President Steven Heck as an
interim CEO, and in June 2006, the firm announced the appointment of Larry R.
Ferguson as the new CEO. In March 2005, FCG also lost its CFO, Walter McBride,
and appointed insider Thomas Watford as his replacement. Again, FCG was hesitant
to make a full commitmentWatford also has the interim tag affixed to his title.
Healthy contracts
FCG contracts arent anything to sneeze at, but they arent the mega-deals of some
of the big dogs. Most of the firms deals are focused affairs, ranging in the low
millions. AMay 2006 example is the firms $6.1 million outsourcing agreement with
Colorado hospital Montrose Memorial. FCG is taking over the hospitals IT needs
for the next five years and will run the hospitals data center and help desk. Asimilar
deal went down earlier that month as FCG was chosen to revamp and maintain
Health Alliances (an Illinois health plan) enterprise applications. FCG contracts
span the U.S. and include fulfilling the outsourcing technology needs for prestigious
New York hospitals such as Beth Israel Medical and St. Lukes, contracts signed in
May 2006.
Small but many
While not the largest engagements in the industry, FCG contracts are indeed
plentiful. An April 2006 KLAS (an independent health care consultancy specializing
in monitoring the performance of industry vendors) report, showed that FCG does
more work in implementing computerized physician data entry systems than any
other organization. FCG has long bemoaned the continued existence of paper-based
record keeping in the health care industryFCG medical information expert Erica
Drazen lamented the fact in BusinessWeek way back in December 2000 that 90
percent of hospitals were still using such an outdated and inefficient method. KLAS
has been impressed by FCGs work, awarding the firm a Best in KLAS award for
planning and assessments in 2005. Additional praise comes from industry magazine
Healthcare Informatics, which included FCG on their list of 100 leading health care
IT companies, penciling in the firm at No. 25.
GETTING HIRED
Go get some experience first
First Consulting Group does not actively recruit from schools, but rather, goes after
experienced associates, most of whom have at least 10 years experience, insiders
report. In fact, sources say, most of the firms recruitment is done via referrals from
other employees. Overall, employees rank the firm high in terms of selectivity, but
one source notes that the firm used to be much more selective than it is presently.
He explains that FCG is sometimes willing to settle for a warm body because of the
recent increase in demand for our services. Another source agrees, saying,
Consultants have become a commodity at FCG. Still, as one insider points out,
specific practices in our organization have very selective hiring practices.
The screening process
There is a very detailed screen process that involves human and technical screen,
involving phone interviews and face-to-face interviews. The number of interviews
2006 Vault Inc. 744
candidates go through varies by position, but most have two rounds. The initial
round is normally a technical screening, and for some, an HR interview, both
over the phone. The in-person interviews typically occur with members of the
practice group you are applying for and/or someone in management. Most
candidates meet face-to-face with at least three people, were told. The goal at this
stage is to determine if the candidate is a good fit for the team.
Sources say the interviews themselves are a piece of cake, and candidates are not
asked to complete any kind of special tests. One source says, My personal
interview consisted of a description of the job. I was asked if I could do certain
things, but not given any type of questions to prove my knowledge. Another,
though, recalls being asked: Do you like to travel? How much project management
experience do you have? What are some examples of project issues you have had to
deal with and how did you handle them? Some consultants find fault with the firms
lax questions, and one insider deems the firms hiring process unduly informal, and
urges that it needs improvement. He adds, Ive seen people hired in at a higher
level than they would have been if skills and experience had been properly assessed.
OUR SURVEY SAYS
Virtual culture
Because FCG is a virtual firm, many employees have never seen the corporate
office. Employees meet and communicate via conference calls, and most work
from home offices or the client site. This greatly impacts the firm cultureor lack
thereof. I dont feel a part of the firm, says one source. I feel more like a part of
the clients organization. A co-worker points to a feeling of disconnect between
colleagues because I personally dont see others in the firm at all. And given the
firms wireless nature, one insider describes the culture as many voices without
faces.
Despite the virtual setup, one source says, you are treated as a person and not just a
body. Another adds that there is always support and camaraderie just an e-mail
away, and a colleague appreciates the fact that if you have a question or need help,
there is always someone that steps up to the plate to help you. It also is a culture
of care and candor, a place where people are very friendly. At FCG, an associate
states, knowledge of issues is more valued than title.
Shifting focus
Says an employee, FCG is a very client-focused firm that fosters a culture of
commitment to the best work possible and doing the right thing (as opposed to doing
things right) for our clients. But a common concern among FCGers is the
uncertainty thats surrounded the firm since it recently went public. One source
says it is unsettling how many people have left, in addition to leadership changes
and instability. According to another consultant, Since going public, the firms
culture has been in steady decline. More specifically, the corporate culture has
more recently evolved to concentrate on shareholder profits. I am concerned about
this trend to sacrifice what is best for the client for the profits involved.
Coaches are great, if you can reach them
Opinions vary on managerial support at FCG. Overall, employees give their
superiors good reviews, with one source labeling the firms coaching relationships
invaluable. Its like having a big brother watch out for you. You always know
who to talk to. A co-worker says managers at the firm have open-door policies
and are always accessible. However, many say the virtual setup prevents
associates from interacting with superiors. I do not believe we have adequate
interaction time between supervisors or coaches, says one source. Another reports,
I rarely, if ever, speak to my coach. My coach only contacts me with issues, not any
general coaching or firm updates. Athird consultant agrees, explaining that due to
the travel schedule of our associates, we rarely have a chance to meet with our top-
level management. On the client side, its another story, with sources reporting that
they routinely meet with higher-level staff.
Pay day
Compensation at FCG earns average marks, and many sources indicate that total
compensation is lower than our competitors. Opinions on base salary differ, with
some calling them somewhat competitive and in line with industry averages.
Others observe that lower-level associates are not paid as much as other firms.
Most employees are in agreement regarding the quality of FCG bonuses, though.
One insider says that the firms financial troubles have put all of the focus on
making money and cutting costs, which has resulted in unobtainable bonuses. In
addition, bonuses are discretionary and tied to profitability, which some say puts
them out of reach for the majority.
In addition to salary and occasional bonuses, FCG consultants enjoy great medical,
dental and vision insurance. One source points out, though, that sick and personal
2006 Vault Inc. 746
time off is lumped together and maxed out at 200 hours, which is not even enough
to take off six weeks for major surgery. FCGers also complain about the firms
former stock purchase plan, which was mysteriously discontinued. But they also
have reason to smile. The firm has a 401(k) match plan of 50 percent up to $5,000.
Employees also enjoy tuition assistance, air miles, tax-free metro accounts and a flat
rate per diem instead of actual receipts for expense accounts when on the road. For
those lucky manager-level employees and above, the firm puts $200 towards airline
Red Carpet clubs. And, some of the expense for spouses is on the firm when
employees travel for long periods of time. One source says FCG also provides high-
end laptops and cell phones that are supported by the corporate help desk.
Youre on your own
Training at FCG is, for the most part, unofficial. Some sources say there is an even
mix of mentoring and formal training, but the consensus is that learning is done on
the job, in addition to some Internet courses. One insider points out that some
practices invest more [in training] than others. Aconsultant reports, I have had no
opportunities for corporate-sponsored training. Another claims that there is an
unwillingness on the part of FCG to invest in the associates for training that is
non-billable, while an associate suggests that formal is difficult when our group is
spread out over so many states. Acolleague feels strongly on the subject and insists
that we should have 40 hours of nonbillable time designated for training instead of
being expected to take all training on our own time.
Know what youre getting into
When accepting a job at FCG, it is the expectation up front that you travel four days
a week. With few exceptions, consultants travel Monday through Thursday and take
Fridays for themselves. The effect of this routine differs from person to person. One
source says the travel is difficult with children, while others say the travel schedule
causes stress, tension with spouse, and chronic fatigue. And some lament that its
difficult to make medical and dental appointments. Another consultant adds,
There is little balance between work and personal lifeweekends are typically used
to recharge batteries. The travel makes it difficult to maintain social
relationshipsmany people do not understand the traveling job.
Some consultants are able to focus on the upside of these travel demands. As one
associate states, I miss Monday through Thursday activities, but then I have three-
day weekends. Another reports, I find my home life is better because on the road
I can concentrate on work, and when I am home I just concentrate on the family
instead of worrying about being on call or overtime. Regardless of how one feels
about the travel, employees at FCG agree that the firm is clear about travel
expectations right from the first conversation. One source says, To be happy, one
must understand that working for FCG means a change in lifestyle, not just a change
in jobs. Another agrees, Spending your life on the road is no joke. You have to be
prepared for it, and its the most difficult part of the job.
Living the consultant life
Most employees at FCG put in typical consultant work hours. Hours per week can
vary depending on the project, but the norm is 40 to 45 hours, plus travel time, which
sources estimate at 10 to 12 hours per week, since many consultants stick to a
Monday through Thursday schedule, cramming these hours into four days. Some
sources claim that 60-hour weeks are more the norm. Counting nonchargeable
hours, a week that I turn in less than 60 hours is rare, a consultant asserts. Project
length also varies, but one source says, Most associates have assignments averaging
from six months to two years. A colleague explains further: You are usually on a
client for about a year and have the opportunity to move. They want you to stay
rounded and increase your implementation knowledge and objectivity.
Efforts rebuffed
With heavy travel and work hours, the firm does make some effort to incorporate
work/life balance initiatives into consultants routines. Some say working from
home provides flexibility and alleviates some of the pressure. One source explains
that consultants, client permitting, are allowed flexibility with regard to working
from home, and adds that in addition, We get decent PTO, which we are
encouraged to take. Acolleague acknowledges that the firm will also fly my family
[out] to see me if I have to work a weekend at the client site or I can get reimbursed
for air fare not taken. But, as one grumpy associate states, They all talk about
family/work balance, however expect you to work 50 hours a week for the client in
addition to firm work, and a co-worker feels the heat from a continual demand to
do more for the clients, as well as to try to rebuild the practice, write proposals, etc.
With all there is to be done, its no wonder that weekend work is a frequent
occurrence for FCGers, and some fess up to working almost every weekend.
Learn to let go
The general consensus among FCG consultants is that while the firm does make
some allowances for flexibility and for family emergencies, it is generally up to the
individual to balances personal life with work demands. It can be very hard with
the travel. You have to learn to let work go when you are home, says one source,
2006 Vault Inc. 748
while another asserts that if one valued work/life balance more than career
advancement, then it is possible to achieve. An associate agrees with these claims,
and states, Deadlines, not time at work, are what is important. It is up to the
consultant to figure out what needs to be done and then get it done on time. One
employee, taking matters into his own hands, reports, I make sure to set aside
weekend time for family and spouse. And a co-worker explains that FCG
encourages balance and even has a work/life balance section in its client contracts.
Personal drive is what causes imbalance, not necessarily the firm. FCG is full of
those who go over and above as a course of regular business.
There are those, however, who see the balance as impossible to achieve: There is too
much demand and off hours work to have a life outside of work, a consultant
grumbles, and an analyst concurs, suggesting that the firms mentality is to burn
them out and get another one. And from what were told, it seems that the work/life
balance gets more difficult to achieve as you move up in the ranks. Managers within
the firm have a harder time with balancing work and life, says one source, while
another echoes the sentiment, explaining, I am presently able to balance work and
life, but only because I have refused to be promoted to a management position. But
even those who find themselves overwhelmed with work and unable to balance work
and personal life admit that the firm is understanding when it comes to particular
circumstances. In the words of one associate, Consistently, however, when there is
a family problem or illness, they are very supportive.
Its all about value
Many employees at FCG say they are unclear on the firms promotion policy, with
many expressing different opinions about the firms position on the matter. In the
past three years or so, says one insider, the company has placed emphasis on the fact
that not everyone wants to be promoted. Most employees view this as a good
thing, with one pointing out that there is room for those who have solid
performance, enjoy what they are doing and are not concerned about promotions.
Another insider puts it a different way: The firms policy is that every position offers
value. If you want to remain at a specific position and provide value, then that is
fine. I have never heard of them forcing anyone into a promotion, yet they do
expect ones level of expertise to increase with experience, an associates states.
Those who do want to move up, according to one source, are judged on skill set,
abilities and motivation. Another believes promotions are based on attaining and
maintaining PCADS scores. One insider says, There is a lot of opportunity for
advancement at FCG, and senior managers encourage, watch for and reward people
who take initiative. FCG has a masters track as well as a management track, but
one source says it is extremely difficult to get promoted. Another says that the
lower ranks typically advance about every one to two years.
Women hit the glass
Promotions for FCG women are not a problembut breaking into the executive level
may be. Women get promoted, but not to the top levels, says one source. Another
agrees, Women move up the ladder seemingly the same as men, but I dont know
how many women hold executive positions. One insider points out that FCG has a
program called Women First thats dedicated strictly to women in leadership
positions, boasting that its even funded. But one female employee shares her
unpleasant first assignment: It was obvious the manager of the project did not
appreciate input from the females assigned. We were often shut down at team
meetings from voicing our opinion. On the other hand, the males, despite the fact
they were less experienced, were always center stage. Despite this singular
experience, most consultants give the firm positive marks when it comes to women
and, as one states, The company is blind to gender; it hires and promotes based on
merit.
Not an issue
With regard to diversity of all sorts, employees generally feel that if a person can
perform the job and represents the company well, then there should be no issue.
And FCG employees generally give good marks to the firms treatment of ethnic
minorities and gays, lesbians and bisexuals in the workplace, though some comments
indicate a lack of focus on the topic. Regarding minorities, one source says, The
company hires people offshore, so I know there are many Indians and Vietnamese,
but I dont know about native minorities (Hispanic and African-Americans).
Another says, Ive never even heard the word minority mentioned. Point is, people
are people. One insider, on the topic of gays and lesbians, states, The subject has
never come up one way or the other in the 10 years Ive been with the firm. And
while one consultant asks, What does sexual preference have to do with work
promotions? a colleague believes that there is some unacknowledged prejudice
towards gays, lesbians and bisexuals.
Independent initiatives
Charitable contributions are another thing FCG employees are expected to handle on
their own. Although volunteer work and community involvement is encouraged by
the firm from a local, regional and national level, most employees say they are not
2006 Vault Inc. 750
aware of any company-led initiatives. According to one source, They do not
require [community involvement], as they expect you know how to manage work and
personal life. Another source says the lack of formalized initiatives is more a matter
of the firms geographic expanse. The firm did, however, contribute funds
following Hurricane Katrina by matching employees donations and arranging for a
one-time payroll deduction for victims of the storm.
8 Greenwich Office Park
Greenwich, CT 06831
Phone: (203) 629-1200
Fax: (203) 629-1229
www.greenwich.com
LOCATIONS
Greenwich, CT (HQ)
London
Tokyo
Toronto
PRACTICE AREAS
Corporate Finance
Equities
Fixed Income
Investment Management
Small Business & Middle-Market
Banking
Treasury
THE STATS
Senior Managing Director: John H.
(Woody) Canaday
2006 Employees: 185
2005 Employees: 170
UPPERS
Excellent opportunities to interact
with top management
By far the most comprehensive,
fielding surveys in almost any
financial sector you can think of
DOWNERS
Stuck in a rut
Data, data and more data
EMPLOYMENT CONTACT
Jenny ODonnel
Phone: (203) 625-5430
2006 Vault Inc. 752
THE SCOOP
Custom-fit consulting
Greenwich Associates is a strategy consulting firm for providers and users of
financial services. Charley Ellis launched the company in 1972, as a 10-person
research firm operating out of the firms namesake town of Greenwich, Conn. His
goal was to form a service concept firm, based on custom consulting to meet the
fluctuating needs of financial decision makers. The firms initial emphasis on
personal trust services, corporate pensions and large corporate banks changed over
time in response to customer needs. Now, Greenwichs consultants cover almost
every aspect of financial services for a global client base of banks, securities dealers,
investment managers and insurance companies. The firm serves big-league clients
such as Merrill Lynch, Goldman Sachs, Morgan Stanley and Fidelity Investments out
of its offices in Greenwich, London, Tokyo and Toronto. The firm has also expanded
its product line, offering a wealth of made-to-order consulting programs including
custom research, real-time strategy management, benchmarking studies and
analytical services tailored to clients requests.
Founder Ellis served as the senior managing director until 2000, and remained on the
board until 2001. In 2000, the firm named John H. (Woody) Canaday, former Bain
consultant and J.P. Morgan officer, as senior managing director. The firm places an
emphasis on stability and longevity, as demonstrated by the founders 28-year-long
leadership. Many of the directors have been around for over a decade and almost all
of the firms work comes from returning clients.
Q&A
Ahallmark of Greenwich Associates research is its in-person interviewing. The firm
conducts annual market studies with users of institutional financial services across
the spectrum of markets. Interviews with research partnerskey decision makers at
corporations and buy-side institutionstake place in more than 80 countries annually
and provide rankings on services, benchmark information on best practices and
market intelligence on overall trends. In exchange for conducting interviews,
Greenwich offers its research partners web site access to all intelligence gleaned by
the firm, in any of its survey areas.
Through its Toronto subsidiary, Consumer Contact, the firm also offers large-scale
market research in the consumer and institutional markets. Experienced consultants
work with clients to design and structure the research surveys, and CCL completes
interviews at a low cost. A significant amount of CCLs business is focused on
providing insight into customer satisfaction, market benchmarks, customer behavior
and awareness, and product and service trends.
In 2003, Greenwich acquired Competitive Challenges, a knowledge solutions
provider for the asset management industry. The acquisition deepened Greenwichs
resources to provide performance benchmarks for asset managers. The newly-
acquired firm also publishes Competitive Challenges, an annual survey on financial
performance, productivity, sales and client services, operations and compensation
practices among investment managers.
Survey savvy
Greenwich publishes numerous white papers and reports detailing survey findings on
financial services trends. In April 2006, the firm put out a report detailing
intelligence gathered in a sales performance review of the 50 largest U.S. banks in
the areas of cold calling, cross selling and referrals in financial sales. The Asian
Equity Investor Compensation study, published in January 2006, examined the way
hedge funds are driving growth of the Asian equity market. The European Fixed-
Income Investor Compensation study, published in November 2005, looked at the
shift of EU investments from equities to fixed income that resulted from the 2000
stock market collapse. The firm calls its market-centered research publications
focused financial intelligence.
GETTING HIRED
Finance whizzes wanted
Greenwich lists current job openings on its web site. Each posting provides details
on the job, requirements and responsibilities. If you fit the bill, prepare for some stiff
competition. One insider states that in hiring consultants, the firm is extremely
selective. Greenwich reportedly prefers candidates with experience (especially in
the financial services sector) and MBA grads from elite programs. The company
does not publicize its campus recruitment schedule, but has been spotted at top
schools such as Kellogg, Harvard and INSEAD. Multiple interviews with managers
are to be expected. One hire explains that there are four to six interviews for
everyone, and the process often takes place over multiple days.
2006 Vault Inc. 754
OUR SURVEY SAYS
Grins at Greenwich (mostly)
The consultants at Greenwich are generally high on their office culture. One happy
employee tells us, GA is a very supportive environment. Being a small office,
everyone knows each other and is friendly and welcoming to new members. Alack
of paper-pushing and access to higher-ups (on the client side as well as with the firm
itself) are also mentioned as positives. One insider appreciates the fact that there is
not a lot of bureaucracy. When you have a good idea or do something really well,
the reputation you develop can carry you a long way. And while one satisfied
insider relishes working directly with senior-level partners, extraordinary mentoring
[and the] team-oriented culture at Greenwich, another consultant warns that
different sectors of the company have different levels of happiness. He remarks,
Not all employees have the same level of satisfaction. Team affiliation can have a
great impact on the professional experience.
BlackBerries at the picnic
Greenwich consultants are moderately pleased with the work/life balance they are
able to manage at the firm. Younger consultants may have a tougher go of it, though.
One senior staffer notes, I am able to pursue an MBA in a part-time program.
However, people in entry-level positions are much less able to have a good work/life
balance. Even so, one younger source claims that he is able to maintain some
semblance of a work/life balance, especially since the advent of the BlackBerry.
Office space
Travel comes with the job, and as one forward-thinking consultant states, Travel
generates work. Being in the office can be helpful in facilitating project completion,
but rarely leads to new sales. Maybe this is a good thing, since insiders log some
complaints when it comes to the home base. One consultant remarks that the offices
are very drab and run-down looking, [and] do not inspire creativity at all.
Apparently this complaint has been heard. One insider notes that there is a current
initiative to improve the office, which has been very popular with the employees.
Ten years to the top
For those who are new to the company, almost all agree that the best training is
informal, but Greenwich does have a solid formal training system in place to get
hires on the fast track. A consultant explains, For entry-level research associates,
training is about an equal mix of formal and informal training. New hires spend
about four weeks in a classroom setting and then time with team members learning
hands on. Once new staffers get their wings, several consultants report that the firm
is not strictly up-or-out. In addition, were told, the climb to higher ranks of
management is short for the industry. One insider remarks that consultants who are
successful can make partner in under 10 years.
Candystripers
Do-gooders will be pleased to hear that Greenwich is actively involved in numerous
community/volunteer initiatives. Specifically, the firm tends to aid those whose
health is in jeopardy, and as one consultants notes, We do a lot of work with cancer
societies. And although the firm does not boast the most ethnically diverse group,
a consultant praises its hiring efforts, saying diversity is increasing every year!
2006 Vault Inc. 756
Haverstick Consulting, Inc.
11405 North Pennsylvania Street
Suite 200
Carmel, IN 46032
Phone: (317) 218-1700
Fax: (317) 218-1704
www.haverstickconsulting.com
LOCATIONS
Indianapolis, IN (HQ)
Cincinnati, OH
Crystal City, VA
Dahlgren, VA
Dallas, TX
Dayton, OH
Edwards, CA
Hanover, MD
Louisville, KY
Salt Lake City, UT
Washington, DC (4 offices)
PRACTICE AREAS
Business Consulting
Government Outsourcing
Learning & Change Management
Solutions
Managed Services & Hosting
THE STATS
President: Howard Bates
2006 Employees: 578
2005 Employees: 623
UPPERS
This company has an opportunity
to do nothing but grow
Family focused
DOWNERS
Little employee socialization
Disorganized
EMPLOYMENT CONTACT
www.haverstickconsulting.com/careers
THE SCOOP
Hoosier roots
Haverstick is a technology and business consulting firm that services the public and
private sectors. The firm is made up of two divisions: Haverstick Consulting and
Haverstick Government Solutions. Starting with $20,000 in capital, the company
was founded in 1994 by Howard Bates, who launched it out of his Indiana basement.
From a modest Midwestern start, Haverstick has grown to become a major player in
IT and strategy consulting, garnering a list of government agency clients including
the U.S. Navy, Department of Defense, Department of Education and NASA. The
firm also serves commercial clients like LexisNexis, Dow Chemical and Carhartt. Its
consulting division specializes in large-scale public and industrial technology
consulting, strategic design and learning solutions, while the government division
focuses on outsourcing and technical consulting.
Public sector push
With its recent revenue growth and aggressive acquisition strategy, its no surprise
that for four years in a row, Haverstick has been recognized as one of the fastest
growing companies in Indiana by the Indiana University Center for Entrepreneurship
and Innovation. Revenue leaped from $8 million in 2000 to over $90 million in
2005. The firm also added over 600 employees during the five-year period. Based
in Indianapolis, the consulting arm of the firm has offices in Dayton, Cincinnati and
several offices Washington, D.C.
The firms growth spurt started with its 2001 takeover of Eviciti, a failed web
development consultancy. In 2002, Haversticks acquisition of IT services company
A.F. Kelly & Associates, boosted revenue and gave it another in to government
sector work. In 2004, Haverstick acquired DTI Associates, an engineering and
consulting firm that serviced government agencies. The addition of DTI
strengthened the firms Washington presence and added over 350 associates, many of
whom have top-secret or secret-level security clearance. Since then, Haverstick has
landed several sizable government contracts.
From sea to sky
The firm and its subsidiary, DTI, won a five-year, $50 million contract in January
2006, with the U.S. Naval Sea Systems Command (NAVSEA) Naval Surface
Warfare Center Dahlgren Division to augment homeland security efforts. Under the
terms of the contract, the firm agreed to provide systems engineering and technical,
2006 Vault Inc. 758
program management and training support to divisions of NAVSEA as part of its
naval program and weapons development. In addition, Haverstick will also lend
support to the weapons and munitions programs of the Program Executive Offices
and Chief Naval Operations.
In August 2004, the company was awarded a U.S. Air Force Materiel Command
contract for $7 million to build a giant learning portalthe first Air Force portal
application, which will effectively consolidate all learning activity across its
agencies. The firms work in that area has drawn in additional education contracts.
In October 2005, Haverstick and its partner, ASRC Management Services, landed its
largest learning solutions contract yet: a $50 million deal to manage NASAs
Integrated and learning Development Program through 2010. The Government
Learning Solutions group will boost NASAs know-how with career development,
knowledge-sharing forums, custom courseware and formal classroom instruction
services. President Howard Bates hopes the contract will help the firm land similar
work from other federal departments.
Controversial contract
In October 2005, the Indiana Department of Workforce Development awarded a $24
million contract to Haverstick to modernize and automate the unemployment claims
process. The contract generated criticism since the ailing agency had been running a
budget deficit and a backlog of unpaid unemployment checks. Earlier in the year, the
agency had announced layoffs and a reorganization to reduce its $1.7 million
shortage, which left critics confused about the prudence in spending money for
updated services.
IT alliances
Haverstick has been able to broaden its own technology consulting efforts and
increase clients access to new products by forming alliances with IT companies.
Partnering with Checkpoint, Microsoft and IBM, among others, the firm can often
gain beta access to new software and introduce clients to products before market
release. The firms newest allianceformed in October 2005is with Cape Clear
Software, a company that implements enterprise service business (ESB) solutions.
Regarding the benefit of such a partnership, Bates stated at the time, Our customers
expect nothing less than top-of-the-line technology solutions that deliver clear and
measurable cost savings and productivity enhancements.
GETTING HIRED
Security clearance
Haverstick only seeks out experienced consultants to join the firm, frequently hiring
professionals who come from government agencies or top consulting firms. The
companys web site lists positions available by location, and candidates can submit a
resume online.
Aside from your typical interview process, candidates routinely go through
government screening. As an insider reports, The Haverstick Government Solutions
consultants work primarily with the Department of Defense, federal or state
government clients. As such, applicants are asked to complete applications for
government security clearances. Other than security clearances, he adds, the hiring
process is fairly standard.
OUR SURVEY SAYS
Culture of growth
Insiders say Haverstick has a small-company feel, though it is experiencing rapid
growth. Says one insider, The growth culture is great because senior management
is open to input and suggestions from all company employees to help them develop
the strategic plan for the future. Consultants appreciate the open atmosphere where
they have good relationships with supervisors. Asource notes that everyone in the
home office is supportive and willing to listen and work [out] any issues that may
arise.
Acceptable hours
Sources seem pleased with the work hours, which average about 40 to 50 a week, and
weekends are your own, insiders tell us. One consultant says a flexible schedule is
an option, stating, Although we work in our customers locations, many are
amenable to flexible work hours. This is also supported by the company, when
possible. Projects at Haverstick tend to have a longer duration than most consulting
firmsemployees claim that the average engagement is one to two years. A
consultant says that is changing, though: We are developing solutions of shorter
duration30 days to three months.
2006 Vault Inc. 760
Homebodies
And while consultants put in considerable face time at the client site, they dont
spend too much time on the road, since clients are usually in the same city. One
source reports, Typically, we work with clients that are local to the office.
Occasionally, we provide consulting services to clients in other areas. In those cases,
we strive to consolidate the visit activity to minimize the travel requirements. We
also participate in trade shows, but share this responsibility to minimize the travel
impact. With reasonable work hours and light travel, associates seem to agree that
Haverstick offers a positive work/life balance.
Follow your own path
Employees receive a combination of formal learning and informal training in the
form of mentoring at the firm. As for advancement, there is a clear path for
promotion, but it is variable depending on individual interests. One source
comments, Different career paths have been developed to allow those [who] prefer
to specialize to follow that course while another career path is available to those who
are interested in pursuing management opportunities. It is also possible to cross from
one career path to another if desired. The firm recognizes those who take on more
responsibility, according to a consultant who remarks, As the company grows, it is
doing its best to keep the quality employees that are driving the companys growth.
As a result, those who are performing well, [are] responsive to customer and
company requirements, and willing to take on new challenges are recognized for
their good work.
Education support
In addition to annual bonuses of about 10 percent, the firm provides profit sharing
with vesting. One associate mentions that other benefits, like subsidized education,
are an encouragement. Haverstick has incentive programs such as formal education
support, spot (cash) awards and technical training opportunities to help its employees
grow in knowledge and be recognized for their commitment and customer support,
explains a consultant. The firms office space is also a perk, according to insiders.
We recently moved to a new office location, which has significantly improved the
office space and appearance, explains a source. In addition, associates enjoy a
firmwide annual summer picnic and a social event in the winter.
Equality for quality
As for diversity, the firm doesnt have any official programs that support initiatives
in this area. An insider reports, Haverstick hires based on a persons skills and
abilities. Quality employees who are female are as desired as quality employees who
are male.
And when it comes to giving back to the community, a senior employee notes,
Haverstick is involved with local professional and community organizations and
provides donations to support these organizations events and charities.
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Hay Group
The Wanamaker Building
100 Penn Square East
Philadelphia, PA 19107
Phone: (215) 861-2000
Fax: (215) 861-2111
www.haygroup.com
LOCATIONS
Philadelphia, PA (HQ)
PRACTICE AREAS
Capability Assessment
Employee & Customer Surveys
Executive Rewards
Job Evaluation
Leadership Transformation
Organization Effectiveness
Performance Management
Talent Management
Reward Information Services
Reward Strategies
THE STATS
Chairman: Chris Matthews
UPPERS
Challenging projects
Helps to build business contacts
DOWNERS
No communication inside
No real appreciation of success
EMPLOYMENT CONTACT
www.haygroup.com/ww/careers
THE BUZZ
Respected results
Compensation experts
Losing the basis for its popularity
(Hay points)
Elitist
THE SCOOP
HR heavies
Hay Group is one of the largest human resources consultancies in the world. The
firm boasts more than 7,000 clients, including half of the Fortune 1000; 85 offices in
47 countries; and over 2,200 employees, 1,500 of them consultants. Private clients
include names such as Pfizer and Wal-Mart, but the firm also dabbles in the public
sector, recently helping the communities of Sunnyvale, Calif., and Arlington, Va.,
Hay Group is no newcomer to the business, having been founded in 1943, when
Edward N. Hay opened the firms doors. Its made its mark on the industry, too; an
October 2005 BusinessWeek article covering the history of the business mentions
Hay Group as a late 1980s pioneer in using bottom-up critiques, in which managers
are reviewed by their own employees.
Hay Group works with the whole gamut of human resources issues, from benefits to pay
scale, capability assessment to talent retention and leadership development. Hay Group
also delves into more esoteric matters, like increasing client staffers emotional
intelligence. An example of someone who lacks an emotional intelligence? Anyone
whos lost it in a meeting, or gone blank during a presentation.
A plethora of public surveys
Hay Group gets its name out there by conducting a multitude of surveys and studies
picked up by major news outlets. Hay Group is one of the most prolific in the
industry when it comes to this type of research, covering an extensive range of
subjects. Below are some examples that give a good idea of where the firms
interests lie.
AFebruary 2006 Business Wire article warned that Hay Group has found retailers are
going to hurt their businesses by dint of alarming staffing trends: low pay, low
advancement possibilities and high turnover. This insight comes from the firms
normative database of employee and customer attitudes. BusinessWeek reported in
September 2005 that the use of jargon words like leverage, paradigm shift and
synergy have crept into marketing schemes, companys internal memos and HR
newslettersbad move, according to Hay Group. Theres a bias to wanting to use
big words and appear intelligentobfuscationto not be plain and direct, said Hay
Group consultant Katrina Lambert in the article. Practicing what it preaches, Hay
Group recently revamped all its marketing materials and changed its tone of voice,
based on the findings of that study.
Hay Group
2006 Vault Inc. 764
In early 2005, Hay Group completed an 18-month study to research how CEOs in
India stacked up against other international business leaders. According to the
August 2005 issue of HR Magazine, Hay Group senior consultant Signe Spencer
stated that she was highly impressed by the CEOs for being resilient in a culture
with numerous regions, religions and a caste system to boot. That same month, an
article in Black Enterprise cites Hay Groups research, which found that businesses
in hiring mode are looking for key competenciesthat eye-catching resumes put
prime importance on skills, not on employment history or educational degrees.
Finally, an August 2005 Fast Company article teasingly entitled Why We Hate HR
cites a Hay Group survey that found that only 40 percent thought their company did
a decent job retaining top talent.
In on the rankings
Hay Group is news-friendly in a major way. In addition to its heavy surveying, Hay
Group helps Fortune magazine compile its list of the worlds and Americas most
admired companiesthis is no easy feat, as the firm interviews more than 16,000
executives to get the results. The 2006 winners? General Electric and Toyota took
the top spots, while Apple Computer made its first appearance in the top 10.
Calm after the storm
Hay Group had a whirlwind year in 2005 when it opened four far-flung offices in
India, Israel, South Africa and South Korea. In 2006, the firm increased that pace by
opening two new offices in South Africa (Cape Town and Pretoria) as well as in
Romania (Bucharest), Lithuania (Vilius), Ukraine (Kiev) and Spain (Bilbao).
Promotions and senior-level staff movement saw a less frenetic pace in 2006, though.
A spate of them in early 2005 were followed by three minor moves. Twenty-plus
year Hay Group veteran, Doug Jensen, the companys executive pay guru, relocated
to the firms Walnut Creek location to beef up Hay Groups West Coast CEO
compensation services. Irv Becker, KPMGs national leader for advisory services,
switched to the Hay Group team in New York also to work in the compensation
consulting field. In February 2006, Rod Fralicx, a PhD holder in organizational
psychology and a senior-level director, rejoined as general manager of Hay Groups
Chicago officean interesting development, as Fralicx has spent the previous six
years with Mercer Human Resources. And in late 2005, Hay Group hired Reiji
Ohtaki to lead the firms Asia operations.
Hay Group
Helping minorities succeed
The Management Consultancies Association (a group of about 700 member firms)
annually throws an annual awards show. In 2006, Hay Group took home the gold for
best human resources work in the public sector. Specifically, the firm won for its
engagement with the National Health Service. The NHS is Europes largest
employer, and had an abysmal percentage of ethnic minorities in managerial
positions. Hay Group created an aspiring directors program to give staff minorities
a jump start. Two years later, the percentage of directors had increased from a paltry
2 percent, to an improved 7 percent. With 1.3 million employees at the NHS, its not
too hard to accept that the Management Consultancies Association was impressed
with Hay Groups impact.
GETTING HIRED
Individuality is key
Hay Group is looking for candidates from diverse backgrounds who are willing to
make courageous decisions substantiated by solid data and reasoning and who will
act on their own initiative and enjoy a challenge. Brains arent enough: The firm
says it looks for individuals who can turn their knowledge into insight, impacting
their clients business and helping them achieve their future goals. Hay Group
claims that it gives employees of all levels the freedom and flexibility to develop
their careers as they choose, within a supportive environment, and it describes
itself as an organization that values individuality, professionalism, teamworking,
flexibility, long-lasting client relationships and diversity. Interested parties can
check out current job openings, organized by city, on Hay Groups web site.
For those who make it to the interview stage, a consultant explains that part of Hay
Groups hiring process involves several interviews and assessment sessionseach
geared to a different set of criteria. One colleague succinctly concurs that it is
comprised of a series of interviews, then a decision. The questions asked in
interviews seem phrased in the same businesslike manner in which the employees
speak. One example provided by a source is: What do you think about client-
consultant relationship in detail?
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2006 Vault Inc. 766
OUR SURVEY SAYS
Bedside manner
When asked what stands out about Hay Group, one consultant remarks that everyone
is professional, very professional. Efficient, verging on robotic, Hay Group
consultants take pride in being as businesslike as possible. One employee comments
that he loves the hectic workdays, the challenge of the work and getting to know
many companies.
Travel flow
With professionalism at the forefront of their work environment, Hay Group staffers
take everything in strideeven the travel curve ball. Usually travel is in response
to client demand, one consultant states, and claims that he has learned to manage
it. One employee finds travel a bit excessive at times, stating that there is
occasionally too much travel, but a colleague views travel as nothing bad at all. It
makes my job more exciting.
Discipline reigns supreme at Hay Group, even in how employees deal with their
personal lives. They balance work with their home life because, as one consultant
notes, they have the discipline to do it. Work keeps them busy, and a colleague
says that he can balance work and life only because I am determined enough.
Employees report average workweeks of 45 hours.
The nitty gritty
Hay Group employees arent so thrilled with their compensation. An insider claims
that there is a low bonus pool, therefore low bonuses only paid at the end of the
year. The firm does offer profit-sharing opportunities, and as a perk, one director
appreciates the flexibility that the firm allows him.
While they feel lukewarm about their salaries, Hay Group consultants enjoy the rate
of promotions at the firm. A source says that promotion [is] based on merit, and
adds that the company has excellent processes for capability development.
Unfortunately, capability development doesnt entail much formal training,
though, as one consultant regrets that there is no real training program for Hay
Group employees.
Hay Group
Room for all
Diversity receives high marks from sources, and one consultant even jokes that there
are too many women in the company. Women, minorities and those of different
sexual orientations feel like they fit right in, and employees seem comfortable in their
work environment. Even if, as one says, the physical office conditions [are] not
ideal.
Hay Group employees are glad to have flexibility and opportunities for pro bono
work, involvement with not-for-profit organizations, etc., as one consultant says. A
colleague of his notes that, however, there is no real team management for pro
bono work, though there are occasionally some happenings, but usually at [ones]
own costs.
Hay Group
2006 Vault Inc. 768
Health Advances
9 Riverside Road
Weston, MA 02493
Phone: (781) 647-3435
Fax: (781) 392-1484
www.healthadvances.com
LOCATION
Weston, MA (HQ)
PRACTICE AREAS
Launch Strategy & Sales Force
Deployment
Market Assessment & Forecasting
New Ventures
Partnering & Licensing
Pricing & Reimbursement
Product Positioning & Launch
Planning
Strategic & Business Planning
Technology Commercialization
Valuation & Financial Analysis
THE STATS
Partners: Mark Speers, Paula Ness
Speers, Marie Schiller & Skip Irving
2006 Employees: 45
2005 Employees: 38
UPPERS
Good feedback and training
support; professional development
Management really cares about
the firm
Family-friendly environment
Working with new medical
technologies
DOWNERS
Quantitatively soft
Wouldnt mind being located
downtown
Location is in middle of nowhere
Lack of firm brand recognition
EMPLOYMENT CONTACT
Dana Gaughan
Phone: (781) 647-3435
Fax: (781) 392-1484
E-mail: rec@healthadvances.com
THE BUZZ
Experts on Medicare
Focuses on market research and
quick-hit cases
US-focused
Fluffy
THE SCOOP
Advanced focus
Health Advances is a small firm with a singular focus: helping companies in the health
care industry maximize their potential. The firm operates from its headquarters in
Weston, Mass. With around 45 employees, the consultancy boasts an extensive array of
resources that provide case teams with valuable statistics, trends and company
information. But dont go looking to this firm for broad industry-wide advice on trends
and movements in the market; Health Advances is dedicated to answering more specific
client problems, such as choosing appropriate drug delivery methods; deciding which
products to license; evaluating appropriate reimbursement for creating a new drug or
service; and assessing medical devices. The companys key offerings include customer
and competitor analysis, forecasting, pharmacoeconomics and valuations.
A medical history
Take one look at the firms senior staff and peruse its history and youll see why
Health Advances has stayed the course of developing deep vertical expertise in the
industry. Husband-wife duo Mark Speers and Paula Ness Speers, both Dartmouth
undergrads, and Stanford and Columbia MBAs, worked at Bain & Company
togetherMark as a partner with the health care suppliers team, and Paula heading
up the firms life sciences research and development group. Skip Irving, the third
managing director, has quite a story himself, working his way up from pharmacist to
creating and leading the pharmaceutical practice of Arthur D. Little.
Aside from the original founders, youll find some pretty in-depth industry
knowledge throughout the firm. Marie Schiller has extensive experience as a
production scientist, and has recently been promoted to partner. The firm has also
brought in Bill McPhee, who boasts 25 years of consulting and venture capital
experience, as a director. And to round out the senior management team, VP Susan
Posner had worked for a variety of medical technology firms, specifically in the high-
tech world of medical devices, before signing on with Health Advances.
Tools of the trade
There are no fancy tricks or slickly named methodologies behind Health Advances
work philosophy. Research is what it seems to boil down to for this small firm and,
luckily, Health Advances boast one of the industrys largest libraries. Staffers also
have access to a variety of tools. Expert Access is a networked panel of over 4,000
medical experts who can provide specialized advice; Industry Analogs is a searchable
Health Advances
2006 Vault Inc. 770
database of detailed industry tidbits with information on company profiles, licensing
deals, clinical paths and highly technical medical treatment trees; and Trend
Perspectives are internal reports that Health Advances publishes for its own
knowledge base, to stay on top of current trends in technology, regulatory and disease
management.
What does Health Advances do with all this research? Heres an example: In
December 2005 the firm helped EPIX Pharmaceuticals analyze the benefits of buying
a smaller biotherapeautics company. Health Advances keeps its engagements hush-
hush, but other typical cases involve industry concerns such as establishing product
prices, finding growth opportunities for products already released, prioritizing
customers and identifying prospective partners.
Public engagements
It comes as no surprise that Health Advances staffers are avid speakers and attendees
of a variety of medical conferences. In December 2005, Skip Irving served on a
panel for the Harvard Business School Health Care Conference and offered up his
expertise on the impact of new Medicare legislation. And we usually hear about
generic drugs only in terms of how they compete price-wise with name-brand
medsbut in November 2005, Marie Schiller presented her take on the flip-side of
this equation, addressing the challenges the generic drug industry faces from foreign
brands, price pressures and the introduction of authorized generics.
GETTING HIRED
Degrees and seats to fill
One Health Advances associate hints at recent turnover within the firm, saying it is
struggling to replace all the talent that recently left. As a result, the company is in
a hiring mood. For those interested, theres plenty of basic information on the firms
employment and interview process on the web site, although, the best bet is to find a
Health Advances recruiter. Dartmouth, Harvard and MIT have the inside track
herethe firm regularly seeks candidates on those campuses. According to a source,
We actively recruit at the top undergraduate and graduate schools in the Boston area
and look for candidates who have a demonstrated interest in the life sciences. But
dont feel left out if youre studying someplace else; staffers come from a variety of
prestigious institutionsDuke alums are especially well represented. And you dont
have to be a young undergrad to get your foot in the door: Advanced degrees are not
Health Advances
the rule, but many Health Advances employees have masters degrees in life science
fields and PhDs are common.
Study your health care
At Health Advances, there is nothing more important than health care. Says one
analyst, The focus on health care is not just something we boast about. Its real, and
our extensive experience in the industry allows for credibility among not only past
customers, but new clients as well. As such, candidates knowledge of the industry
proves to be a big advantage in all stages of the hiring process, and cases play a
significant role in the selection, though one analyst suggests that personality fit
seems to be just as important as intellectual fit and work ethic. One insider notes
that sample cases given in interviews are always related to issues faced by biotech
or pharma companies. Be advised, the issues are real onesno hypothetical
situations here. An on-site recruiter gives the skinny: The most important thing to
note about our case questions is that they are actual caseswe never give some
standard case out of a book. The firm is not skimpy with the process either; expect
to tackle six to eight cases over two separate interview days.
Calling all staff
Interviewers will be a diverse bunchsuccessful hires tell us that candidates will
meet the whole gamut of Health Advances employees. This can also include
admin, says one information specialist. The top dogs arent left out either: Before
a person is made an offer, she will have met with at least three members of the senior
management team, notes one consultant. And heres one tip for those living outside
of New England: Insiders say that the standard 30-minute initial phone screen is
often followed by a longer phone interview for people who live outside of the
Boston area.
OUR SURVEY SAYS
Open offices, friendly staff
Health Advances employees feel the love. One senior analyst gushes, The people at
HA are wonderful and are a big part of what makes me want to come to work each
day. This is a recurring theme with Health Advances staffers, who seem pleasantly
surprised to get along so well with their co-workers. These sentiments are echoed by
rookie consultants as well as veterans. The small size of the company makes for a
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2006 Vault Inc. 772
family-like atmosphere. There is no cutthroat nature at all, and people are always
looking to help each other, says one newbie analyst. This friendly environment
(a word frequently used to describe HA staffers) lends itself to a collaborative
atmosphere that Health Advances employees seem to relishthe firms open-door
culture garners much praise. One associate notes how it helped him get settled:
Everyone is open to taking time to answer questions or coach you through a new
challenge, which is particularly helpful in the first few months. Senior management
is not overlooked in the love-fest, either. There is a great sense of community and
everyones door is always open, from the analyst level to the managing directors,
expresses an associate. HAconsultants value each others knowledge and appreciate
the resources that each brings to the table. Says one consultant, The network
provided by our consultants is also incrediblenever underestimate the answers that
can be found by probing your colleagues for past contacts, experiences, friends and
spouses.
Poker and pizza
This convivial culture extends past the office doors, as well. One associate states that
meeting up outside of work is often seen on a voluntary and frequent basis as
colleagues really enjoy both working and relaxing with each other. Other staffers
agree that informal get-togethers are common and are more diverse than your typical
post-Friday margarita. A consultant explains further: Analysts, senior analysts and
associates often spend time together outside of work, in activities that vary from the
standard go-to-a-bar, to a weekly poker night, to the occasional informal sporting
event. If the last person you want to see after work hours is a fellow co-worker,
Health Advances may not be the place for you.
Just get your work done
Although there is the occasional grumble about work hours, in general the firm earns
high marks in this area. One analyst claims that relative to other consulting firms,
I think our hours are less and often more flexible. And a colleague agrees, noting
that HAmay not be at the level of the cushiest industry jobs, but compared to most
consulting work, the hours are very manageable. The average number of hours
spent in the office per week borders on 60, but consultants to agree that its not the
hours that count, but rather the amount of work completed. One young analyst says,
Some weeks I leave at 6:30 every day, others will be much more intense. Its very
cyclical. Hours are very much dependent on an individuals productivityno one is
looking to log how late you stayed past 6:30 every night, but what does matter is
whether you accomplish your personal tasks.
Health Advances
This approach has some positive results, namely that work is done very efficiently
so often there isnt a pressing need to stay very late at work, says one Boston-based
consultant. And as one senior analyst sums it up, There are times, as with any firm,
where late nights are expected but, generally speaking, our workload is manageable
and enables us to have lives outside of work. In addition, working late or on
weekends is the exception rather than the rule.
Fair and balanced
Though long hours are an inevitable facet of the consulting life, sources say their firm
does as much as it can to ease the burden. In general, staffers are not easily impressed
by late-night workaholics and, in fact, a senior analyst praises the company for being
proactive about reigning in the grind, saying, If someone works late, management
tries to determine what went wrong, rather than highlighting the example for
everyone to try to match. Another senior-level analyst agrees, saying partners are
very aware of when people are working too much. The firm also takes active steps
to make sure that the culture doesnt turn sour. For example, a pleased employee
says, During stressful periods, the company will often organize an impromptu pizza
lunch or ice cream break to help take the edge off.
Sources seem satisfied with the work/life balance facilitated by HA management.
According to one recent hire, The firm itself is very sensitive to personal and
nonwork issues, and another consultant with five years experience under her belt
adds, If I need to leave early for classes, or other personal plans, I can easily do so.
The firms favorable balance also lends itself to making time for family. One
associate states, I have time to explore other interests. It makes it easy to have a
baby, and many people do.
You earned it
Health Advances promotes on a meritocratic basis. Promotions are based on
contributions rather than time at any one level, reveals one senior analyst. Most
consultants are happy with this system. As one analyst explains, Unlike other firms
or investment banks, there is no standard or set two-year commitment. Many
consultants will stay for many years and the firm encourages whatever interests its
workers may want to pursue next. One associate, however, does complain about the
absence of an up-or-out policy, which seems to slow promotions. But slow
depends on your point of view. To give some perspective, one associate lays out the
timetable: Most people are promoted every one-and-a-half to two years, but there is
room to be promoted earlier if you work for it. A senior analyst corroborates this,
adding that Health Advances has a fairly structured promotion policy generally
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2006 Vault Inc. 774
requiring one or two years to move from one level to the next. Most people at the
firm are successful in receiving a promotion in that time. Employees all seem to
agree that there are no predefined timelines for promotions, though most note that
on average, a person spends approximately two years at a given level.
The road less traveled
Consultants may be a road-weary group in general, but not at Health Advances
staffers often only travel for specific occasions, which are usually two to three per
project, and these are most often day trips. We tend to travel for the kick-off,
interim and final presentations. With a dual-case model, sometimes this means
traveling twice in one week, other times not at all. Afew unique cases require more
travel, but they are in the minority, and careful thought is given to staffing based on
personal needs/desires of the consultants, says one staffer. A junior-level analyst
concurs, saying, Very minimal travel is required, as the firm believes that it can do
a great job working at the office. We almost never work at the client site.
Ho-hum home base
Health Advances home office in suburban Boston pleases some employeesmostly
those who place a premium on free, covered parking and spacious cubes. For
others, though, the out-of-the-way location causes significant grumbling. The
suburban location is dull and after work socializing is more difficult, complains one
recent hire. But the office isnt too far from the nightlife in Boston. One single male
sees the silver lining: The suburban location isnt ideal for younger staff, but the
commute from Boston is very easy and only takes about 15 minutes.
Less is more
Consensus indicates that Health Advancers are happy enough with their pay, but not
because theyre raking in the dough. For them, its the quality of life at the company
makes the difference. Asenior analyst new to the gig says, Our compensation may
not be as high as other firms, but we also are not required to work the hours expected
at a BCG or Bain, either. Another consultant agrees, saying that the salary is less
than some of the bigger firms but perhaps the trade-off is better work/life balance.
Year-end bonuses are based on a multiplier related to the success of the company.
Personal bonus compensation occurs at the end of the year based on goals
established by the company at the start of the year, states one analyst. Several
consultants also tell us that profit sharing and 401(k) are a part of the bonus packages.
Health Advances
Is there a doctor in the house?
For a health care focused company, medical benefits get surprisingly little mention,
with one employee noting that the benefits package is just standard. However,
heres an interesting plus reported by one analyst: The networking is also a notable
perkif anyone on our staff or a family member ever falls ill, there are dozens of
ready hands and minds instantly there to offer advice as to key centers, opinion
leaders, physicians and treatmentsas well as put in a good word to their physician
friend, or advocate for better treatment options on behalf of one. Other perks
include, a fantastic holiday party and the flexibility to work from home on some
days.
Support staff
When it comes to supervisors, HAemployees are a happy lot. Good access to higher-
ups is widely confirmed; in fact, help from on high gets excellent marks across the
board from all levels of consultants. According to one insider, because of the small
size of the company, everyone has lots of exposure to the VPs and partners, even
entry-level analysts. A colleague agrees: A small company allows for casual and
more meaningful interactions with top-level management, as well as contact in
professional settings. Another satisfied senior analyst comments that management
tries to include me in all client meetings, including meetings with the CEO and board
of directors. And it seems that supervisors also put a lot of stock in their rising
consultants, awarding them with substantive work early on. One young associate
says, Ive been really impressed with the amount of responsibility that you can get
early on in the associate level. Its a real advantage with Health Advances over some
of the bigger-name firms.
Training modules
The firm uses a multipronged approach to educating its employees, offering both
formal and informal training opportunities. A rookie just out of Dartmouth offers
some insight: There is a formal training period for new consultants that incorporates
group and individual training modules, as well as informal mentoring. Every new
consultant completes a training project to apply the skills and resources taught
throughout the training. Final presentations are attended by the entire company and
seen as an excellent way to engage everyone in education on a new topic, as well as
complete the formal training for new staff. One associate adds that this program
helps new staffers get started on the right foot, stating, A fair amount of time and
energy is invested in a formal training program that helps get everyone on the same
page right at the start.
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2006 Vault Inc. 776
In addition to this new hire training, one senior analyst claims that HAemployees are
given lots of coaching, lunchtime presentations [and are] encouraged to attend
industry forums. Health Advances also allows consultants to take classes outside of
the workplace and is amenable to fitting extracurricular learning into employees
schedules. Its also nice to have the firm foot the bill. An analyst reports that the
company is also good about reimbursing external classes.
Easy access
As for informal learning, one insider remarks that most training is through case
activity. The company takes great pride in developing tailored skill plans for
employees to ensure that they are receiving opportunities to develop skills and
advance their careers appropriately. On-the-job training is also fostered by the
firms mentorship program, which gets positive reviews from employees of all skill
levels. One analyst feels that this program puts her in touch with different parts of
the firm. We have a wonderful mentoring program that pairs analysts and senior
analysts with vice presidents and managers, and associates with managing directors.
This program allows for opportunities of casual and formal interactions and
feedback, and provides contact networks through every level within the
organization. This mentoring program effectively opens communication between
all levels of employees, which encourages further informal learning opportunities.
According to one consultant, The partners are very accessible, which makes case
work so much easier, because we are able to tap them for knowledge.
Female focus
Women rule here, says one new senior analyst. Indeed, Health Advances is a rarity
in the industry: a firm with more women than men in all levels. Women are heavily
represented in the upper rankssays an insider, One of the managing directors and
all of our vice presidents and managers are women. An unmarried staffer jokingly
bemoans the lack of eligible bachelors in the office, but most consultants seem happy
with the female-friendly atmosphere. Working mothers at the firm mention the
difficulty of juggling work and family, but are still upbeat. Says one female
associate, Our firm is as female-friendly as is possible by letting women with kids
work four days per week and shorter hours, though these women often put in the
hours from home later at night.
Open to improvement
The firms minority presence is not as strong, however. One Asian analyst reports,
When I started, we had what I would consider two minorities; we have definitely
Health Advances
upped our numbers to double or triple that. But that still doesnt add up to much
diversity in the workplace. One consultant acknowledges that we are doing a good
job recruiting women, but often do not have many minorities apply.
Insiders have less to report on diversity with regard to sexual orientation. One
associate admits that he doesnt know of any gay or lesbian colleagues and another
expresses the same uncertainty, claiming that if there were any GLBT employees,
they would be treated equally, given the culture and promotion based on
performance attitude of the firm.
Quarterly contributions
Charity work is a huge commitment at Health Advances. Indeed, the company
builds good deeds into its work schedule. According to one associate, We are each
expected to take at least four days off each year during the workweek to volunteer.
These volunteer days are taken by junior and senior staffers alike, but not all
community activities are sponsored by the firm. Says one informed analyst, Q1 and
Q3 events are company-sponsored pro bono events, while Q2 and Q4 offer
opportunities for staff to explore their own charities. The efforts on behalf of the firm
are outstanding and there are frequent discussions and e-mails sent to educate the
company on upcoming events in the community and opportunities to lend a helping
hand.
Health Advances
2006 Vault Inc. 778
IMS Health Incorporated
1499 Post Road
Fairfield, CT 06824
Phone: (203) 319-4700
Fax: (203) 319-4701
www.imshealth.com
LOCATIONS
Fairfield, CT (HQ)
Additional offices in 100 countries
worldwide
PRACTICE AREAS
Brand Management
Launch Management
Portfolio Optimization
Sales Force Effectiveness
THE STATS
Ticker Symbol: RX (NYSE)
CEO: David R. Carlucci
UPPERS
Good business outlook
DOWNERS
Big company; plenty of red tape
EMPLOYMENT CONTACT
www.imshealth.com/careers
THE BUZZ
King of data
Making more of a splash
Too specialized
Know their stats, but not how to
apply them
THE SCOOP
Striking gold
IMS Health opened its doors for business in 1954 with a simple idea: to study the
newly growing pharmaceutical market and to try to sell some of its research. That
little idea got the firm scratching at the surface of an ever-deepening mine of data,
and over the past 50 years, IMS has slowly and steadily grown into a billion-dollar
multinational company. Its expertise and industry statistics have become essential to
most, if not all, of the major health care players as it tries to navigate an increasingly
competitive playing field. Theres a lot at stake, as it tries aging global population
and advances in medicine have turned pharmaceuticals into a booming business
according to Forbes, in 2006 alone Americans will spend $330 billion on drugs, one-
sixth of the whopping $1.9 trillion that will be spent in the global marketplace.
Accumulating data and acquisitions
The history of IMS is littered with takeovers, mergers and spin-offs; its worth
following the drama to see how IMS arrived in its current favorable positionthe
default source for market research to the health care industry. Founders Ludwig
(known as Bill to all but his parents) Frohlich and David Dubow spent the first few
years of the companys founding accumulating data in Europe and in 1957 made their
first splash by publishing a study of pharmaceutical sales in West Germany. Drug
companies were eager to hear who was buying their pills and who was not, and IMS
aggressively expanded its studies. Over the next decade, the firm had moved into
Japan, Australia and South Africa, as well as most of the countries in democratic
Europe. The company had missed the boat in tapping into the U.S. market, but
changed all that by purchasing Davee, Koehnlein and Keating (DK&K) of Chicago
in 1969a lateral acquisition, as DK&K was in the same line of work, specializing
in auditing pharmaceutical sales.
Over the next 20 years IMS continued on this tear, acquiring both small and large
companies that were in the business of accumulating data. The most important of
these in hindsight were Pharmatech and Cambridge Computer, both in 1974, firms
that were using computers and networks to manage information when the technology
was in its infancy. In the early 1980s, IMS spun off subsidiaries that attempted to
apply the methodologies the firm had used in the pharmaceutical world to tackle the
fashion, apparel and household appliance industriesa strategy it repeated in the late
1990s, with similar results: The spin-offs were quickly sold or disbanded as IMS
realized it was better off with a single industry focus.
2006 Vault Inc. 780
Leave well enough alone
In 1988, Dun & Bradstreet bought IMS and invested heavily in the company.
Unfortunately for that company, integrating IMS and other diverse acquisitions under
one corporate roof proved too complicated, and in 1996 split itself into three parts,
with IMS being partnered with Nielsen Media Research (of TV ratings fame) under
the new name, Cognizant. This didnt help matters much, and by 1998 IMS was back
on its own and entered the New York Stock Exchange with the telltale acronym
RX. The company was now free to manage itself and, after weathering the bubble
burst of the new century, it got back to acquiring smaller companies that were sitting
on vendible data. In 2004, IMS entered a contract with the U.K.-based Boots the
Chemist pharmacy chain, gaining access to its point of sales information. The firm
made similar deals with French and other Western European firms. A noteworthy
deal was struck with United Research China (URC) in July 2004, sending a strong
message that IMS intended to get on top of the massive Far East market.
Bigger fish noticed the $200 million increase in revenue that IMS enjoyed entering
2005 and, in July 2005, Dutch media company VNU announced it would acquire
IMS (which is actually the same company as the above-mentioned Nielsen Media
Research). However, history did not have a chance to repeat itself, as a group of
VNU American shareholders feared a Dun & Bradstreet redux. An active campaign
was mounted against the boards intentions: In November 2005, the shareholders
managed to sink the deal. IMS appears to have tired from being bandied about as a
buyout target. In February 2006, IMS governance began aggressively buying back
shares, amassing 25 millionapproximately 10 percent of the total available on the
market.
Data hound
IMS claims to be able to monitor more than 75 percent of pharmaceutical sales across
the 100 countries in which it maintains an active presence. In the U.S., this number
shoots to upward of 90 percent. It would be safe to say that IMS has a busy IT
department, with over 60 terabytes of data available to clients over the network (for
those byte-challenged, this would equal 43 million floppy disks, or approximately
three times the information stored in the U.S. Library of Congress).
Its all about the information, was Ben Kingsleys prescient line in the 1992 movie
Sneakersbut IMS didnt need Sir Kingsleys advice, as it got a good jump on the
high-tech revolution way back in 1979 when it introduced its MIDAS service,
allowing clients, from terminals in their own offices, to access market data. And a
brief look at the companys history shows a relentless drive to accumulate as much
information as possible. What does this information look like? The 2004 Boots the
Chemist deal provides a good example. Each customer of that pharmacist has a sale
logged for every purchase; with analysis, whole patient histories and market trends
can be gleaned. In June 2005, IMS purchased PharMetrics, a provider of business
intelligence that had been gathering data from the patients point of view
monitoring health insurance claims. IMS didnt waste too much time in finding a
way to apply this information: In December 2005, it introduced the Cost of Care
intelligence module, which allows clients to analyze the impact the sale of their own
products has on total patient health care cost.
To info and beyond
IMS realizes that its not just about how much information you have, but also what
you do with that data to make it useful that really matters. So its all about the
information. But youve got to do something with it to make it useful. Indeed,
Information Applied is IMSs mantra. IMS breaks up its services into a multitude
of categories, but a look at its financial sheets shows that more than 50 percent of its
revenue comes from sales force optimization. This boils down to some nuts and bolts
consulting work, making sure the sales force is in the right place at the right time, is
the right size, is operating efficiently and is being compensated competitively.
According to IMS, sales and marketing are becoming increasingly important as
industry stalwarts face stiff competition from generic drug companies. The firm
believes that sales representatives need to look beyond the traditional physician-
detailing paradigm and develop new ways to deliver key promotional messages that
translate into brand success. IMS has a good idea of who is buying what pills, and
targeting a particular drugs audience (and how much theyre willing to pay) is of key
interest to pharmaceutical companies trying to beat out the competition.
IMSs second largest revenue-generating service is portfolio optimization. This
involves deciding which drugs to devote more R&D dollars toward, which to market
heavily, which to patent and which to let go. Other services IMS offers include
support for clients during the launching phase of new drugs, international business
advice for those selling globally; information management; and product help with
drugs not sold over the counter.
Top drugs
Alot of people are interested in what IMS knows, and the companys name does crop
up in the headlines when it goes public with its information. In a February 2006 issue
of Forbes, IMS revealed the top-20 drugs sold in the United States. Thought Viagra
may have cracked the list? Nope. Despite those ubiquitous advertisements with
2006 Vault Inc. 782
newly blushing wives, high blood pressure, high cholesterol, heartburn and mental
health are more pressing problems to Americans. And according to a March 2006
New York Times article, the new health epidemic may come from a surprising
sourcenot enough sleep. IMS claims that sleeping pill sales have jumped 60
percent and that Americans are facing a domestic sleep shortage crisis. IMS also
publishes its findings on its own, through its IMS Insights case studies.
GETTING HIRED
Drop-down box your way in
If you dont have an inside contact at the firm, going through the IMS career web site
may be your best bet to getting a foot in the door. The setup may be a bit confusing,
but if you can locate the drop-down box for consulting youll be on your waythe
descriptions have some useful information, and youll be able to search for similar
jobs and submit your resume online. Insiders tell us that the interview process
varies by grade, but young recruits get the standard industry treatment. This
generally means two to three rounds with analysis tests and multiple interviews.
For those consultants with more experience, reports are that the focus will be more
on multiple one-on-one interviews.
OUR SURVEY SAYS
Dockers still in fashion?
Reports on IMS culture are positive, and employees seem especially pleased with
their co-workers and work environment. One consultant reports, It is easy to
develop friendships with colleagues that extend outside of the office, while another
reports feeling surrounded by kind, hardworking people. Moderate hours and a
casual dress code also help. One New Jersey-based consultant tells us, Dress is
business casual, but thats a loose term. Dockers and nice cotton shirts are generally
acceptable (unless dealing with clients, or trying to make a good impression in a
meeting). Hours are semi-flexiblework between 8 and 5, take an hour for lunch,
etc.
A quick track to more responsibility (and more dollars) also has IMS consultants
pleased. One source explains, If you are good, you can advance quickly. This is
especially [true] in the consulting side of our business. And, it seems theres another
upside to taking on more responsibility. One staffer none-too-pleased with his
paycheck remarks, IMS is not the greatest paying company. It is important to get as
much as possible when coming in. A barrier to advancement, though, may be the
limited training opportunities available at the firm. Employees give low marks to
formal training programs, and one consultant states that management is not
involved with consultants.
Golden child
There are rumblings among IMS sources that things may be getting even better at the
firm. As one staffer tells us, Of the two sides to the business, consulting is the
golden child right now, getting a lot of time and investment. A Connecticut-based
consultant agrees: IMS culture has been driven by change over the last four years as
the company has refocused its efforts toward its consulting and services division.
This has been quite an exciting time for the companythe working environment has
become more focused and driven; pressure to grow has been enormous, and this has
been accompanied by a large increase in hires, the establishment of many new
consulting and services teams across the globe, and multiple acquisitions. This
insider goes on to say, I expect the culture to become increasingly similar to that of
a big consulting house over the next two years. This isnt much of a surprise, as
IMS is accumulating a large number of senior hires from the big consulting houses,
a source notes.
2006 Vault Inc. 784
Kaiser Associates
Suite 900
Phone: (202) 454-2000
Fax: (202) 454-2001
www.kaiserassociates.com
LOCATIONS
Washington, DC (US HQ)
London (Europe HQ)
Cape Town
Dubai
New Delhi
So Paulo
Toronto
PRACTICE AREAS
Go to Market
Growth
Innovation
Mergers, Acquisitions & Divestitures
Organization
Strategy Development &
Implementation
Supply Chain/Operations
THE STATS
Directors: Lisa Pryor & Kevin Slayden
2006 Employees: 130
2005 Employees: 115
UPPERS
Opportunity to improve the firm in
many ways beyond just client
work
Very approachable and supportive
suprevisors
An exemplary mix of international
consultants
Project opportunities that often
exceed the reach of other small
consulting firms
DOWNERS
A lot of panicked days
Average research resources
The company is relatively
unknown beyond consulting circles
Reliance on phone research and
data-gathering
EMPLOYMENT CONTACT
www.kaiserassociates.com/join/
home.html
THE BUZZ
Great with data
Niche
Good firm, but not always open
to ideas
Average
THE SCOOP
Just the facts
Kaiser Associates is a boutique consulting firm that specializes in fact-based strategy
development, performance improvement and organizational effectiveness. The firm was
founded in 1981 by Michael M. Kaiser, as a spin-off from Strategic Planning Associates
(now Mercer Management Consulting). Kaisers U.S. headquarters is in Washington,
D.C., while its European headquarters is in London. With additional offices in Cape
Town, Dubai, New Delhi, So Paulo and Toronto, the midsized consultancy serves a vast
variety of aerospace and defense, communications, consumer products, health care,
private equity and high-tech companies around the world.
Kaiser says its approach to strategy is outside in consulting. What this means is
that the firm helps clients incorporate fact-based and externally-driven analysis into
its decision-making. Kaisers client base includes five of Fortunes Global 10 Most
Admired Corporations and six of the top-10 companies on BusinessWeeks Global
1000 list. The firm boasts that 75 percent of its business comes from returning
clients.
Marking its territory
In the 1980s, the firm became known for its benchmarking expertise when its founder
published the first book on the subject, Beating the Competition: A Practical Guide
to Benchmarking. Kaisers over 200 benchmarking studies conducted between 1982
and 1985 further established it as the authority in the field. Since then, the firm has
built on its ability to find a niche market in its early stages. The firm expanded
gradually to offer go-to-market, M&A services and fact-based growth consulting.
Today the firm still has a strong benchmarking focus, but also offers economic
development, divestiture, white space identification, organizational effectiveness and
supply chain consulting services.
Seven-step
To date, the company has completed more than 3,000 benchmarking engagements
across every major industry and function. Kaiser consultants tailor each study to the
client, meaning clients select the companies they want to be measured against and
Kaiser provides the research and data for comparison. The firm offers four different
types of benchmarking services: internal, external, consortia (comparison against
noncompeting companies in a common area of interest), and training and education.
Kaiser Associates
2006 Vault Inc. 786
The firm has also developed a Seven-Step Benchmarking Process, which it applies
to many of its studies.
Global conscience
As Kaiser expanded into Europe, Africa and Asia in the 1990s, it recognized a need
for economic development in the areas it served, so it established a dedicated
Economic Development Practice (EDP) in 1998. The practice works with private-
and public-sector agencies, including governments, industry groups and NGOs, to
expand trade and competition through trade promotion, industry development, policy
formulation and program management. Consultants might recommend ways for the
local government to support an industrys export development or come up with a
business model for a new infrastructure project. The City of Cape Town, Department
of Civil Aviation of the Government of Dubai, the Department of Minerals and
Energy and the Government of Punjab have all been clients of the firms EDP group.
African pride
Since the firm opened an office in Cape Town in 1997, it has been heavily involved
in projects to enhance economic and social development in South Africa through job
creation, black economic empowerment, export growth and building government
capacity. The focus in the region is on developing industries, export abilities,
national branding and developing policy. In 2001, the National Economic
Development and Labor Council (NEDLAC) hired Kaiser to develop strategy and a
business plan for the Proudly South African campaign. The campaigns goal was
to stimulate economic growth and create jobs through an increased demand for the
regions products and services. Kaiser developed recommendations to support the
plan including the financing, marketing strategy and a stakeholder management plan.
Kaiser EDP was also commissioned by the Fund for Research into Industrial
Development, Growth and Equity (FRIDGE) to assist South African local businesses
in assessing their procurement practices, and developing strategies to use
procurement to boost socioeconomic development. The South African Department
of Trade & Industry tapped the firm to come up with an export strategy for the
countrys electronics sector and the local jewelry trade called on Kaiser to help it
create a sustainable jewelry export industry.
Kaiser Associates
GETTING HIRED
Fitting in
Test cases. Fitting in. Writing exercise. These are the big three gateways you must
pass to become a full-fledged member of the Kaiser team. There is also an initial
phone interview (or an on-campus screening, if youre recruited) that goes beyond a
typical meet and greet. Be prepared to get a case study right off the bat. If you make
it past this step youll be invited for a whole day of interviewsthankfully the firm
typically keeps it to this one daywhere you will meet a variety of staffers, from
junior consultants to VPs. Fit, is important to Kaiser, as is the ability to think on
your feet. The analytic case interview will be a standard hypothetical engagement.
An insider gave us one recent example of a case question: The Washington, D.C.,
government requests an outside investment from a venture capital firm of $500
million to finance a baseball stadium, and recruits were asked to break down the
investment from the venture capital groups point of view. Aseparate writing sample
is also of key importance. No take home quiz hereinterviewees are put on the spot
to demonstrate that they can write with a flair for business.
Liberal recruiting
Kaiser consultants come from all over, especially in the London office, where hires
hail from all over Western, Central and Eastern Europe. But for stateside
prospectives, the firm reportedly recruits actively at liberal arts colleges and top
universities such as Dartmouth, Williams, Middlebury, Bowdoin, Swarthmore,
Haverford, Bryn Mawr, Bates, Yale and Princeton. In addition, the firm adds, it
actively recruits from liberal arts and undergraduate business programs at larger
universities such as University of Pennsylvania, Columbia, UVA, Georgetown and
Emory.
OUR SURVEY SAYS
Young guns
Insiders report that Kaiser employees are a young, ambitious bunch with just enough
friendliness to keep their competitive drives from creating havoc. An associate sums
up the culture this way: The firms culture is very dynamic, young and
entrepreneurial. Its a fast-paced office where most consultants are about 25 years
old and where management is very willing to listen to ideas and suggestions as long
Kaiser Associates
2006 Vault Inc. 788
as they are backed by a willingness to work on their implementation and a sound
business plan. This is repeated by many fellow Kaiserites who agree that self-
motivated, under-30 staffers create a dynamic environment. Friendships are formed
inside and outside of the workplace. A senior manager states, The average
consultant age is young and, as a result, the vibe is youthful, energetic and friendly.
Most of the consultants are friends outside of work. But dont mistake eager
beavers for mindless ninniesthis young crowd comes from prestigious colleges
across the globe. One manager, pleased with his youthful charges, claims, Often our
clients are very surprised at the young age of our teams, but also wowed by the
maturity and intellectual ability as well.
Despite all these young guns trying to make their mark, lots of compliments are given
to the toned-down competition amongst co-workers. A Yale rookie gives his fresh
opinion: The culture here is amazing. We have daily business casual [attire] unless
visiting a client site; diverse employees that take great pride in being part of the
Kaiser family; and employees that are typically intellectual and friendly. Its not
ultra-competitive. Props are oft given to this easygoing atmosphere from a variety
of staffers, and Kaiser employees make it clear that the lack of cutthroat office
politics makes for some happy campers.
It gets easier
The balance of personal time and work gets average marks from Kaiser sources.
Heres how it breaks down. Employees across the board seem happy with the firms
flexible attitude towards work hours, but young employees are a tad stressed with the
unpredictability of the work. One newbie succinctly says, You do not really balance
work and life; work balances your life however it wants. This can mean extremely
late nights and this is often unpredictable until the day of or before. Another claims
that it can be difficult to maintain a healthy work/life balance here. The work
(particularly primary research with competitors and customers) can be difficult and
stressful. This opinion is not held firmwide by all new recruits, but happier
associates do not deny that some co-workers have a tougher time than others. Says
one luckier soul, I have been able to balance work and life at my firm for the most
part, as my managers have been very conscious of how much work we do and
whether we are being overworked. However, certain projects at the firm have been
known for pushing consultants to work late nights and weekends for extended
periods of time.
In general, senior employees seem happier about their work/life balance. One
manager claims that at Kaiser, each individual has sufficient control over his/her
Kaiser Associates
work/life balance. Although there are instances where weekend work is inevitable,
managers/leadership are always sensible and work to avoid such situations.
Although late nights are fairly common, work is very rarely overwhelming.
Furthermore, the occurrence of late nights is more a function of an individuals
preference to stay late to complete work in advance. While this source suggests that
late nights are simply a matter of personal choice, another contends that they are a
fact of life at Kaiser, but improve as you move up the ladder. He reports that life gets
better and better as you go through the ranks and become a manager. Yet in the first
two years, it is a bit difficult.
Fair and flexible plan
As far as actual working hours, Kaiser consultants average about 55 hours per week.
Sources admit that hours fluctuate depending on the project, and there are always
periods of intense work during key engagement times. But generally, insiders report
that hours at Kaiser are better than average. As one consultant states, Compared to
friends in the industry, Kaisers hours are very reasonable. But one young
consultant complains about the office culture that seems to demand face time: I
think [it] has become a problem among associate consultants that everyone wants to
be the last one in the office to prove that theyre working hard, when that really
doesnt have anything to do with how well/efficiently theyre working.
Despite this griping, if theres one thing that Kaiser employees seem particularly
happy about, its the firms flexible policy when it comes to work hours. A staffer
claims that the firm is good about giving people the liberty to schedule their own
hours as long as it does not affect their work, and one recent Georgetown grad says
that while Kaiser does ask a lot of work from you, and therefore long hours, the
office remains flexible. Often you can work from homea must when you have had
a long day/week and have more to do. A more senior European counterpart was
adventurous in tailoring his work situation and offers this example of the firms
willingness to cooperate: I wanted to spend two days a week working from home in
Paris (while our office is in London). I put a business case for it oriented to business
development, and my firm accepted and freed up 20 percent of my time for me to
succeed in my initiative in France. That may be an extreme case, but it is generally
true that Kaiser employees seem to be given more freedom and space when they have
accomplished their work. This can even extend to days off after particularly tough
engagements. According to one associate, There are times where the firm gives free
personal days to make up for times of high workload.
Kaiser Associates
2006 Vault Inc. 790
Infrequent flier miles
Travel for Kaiser staffers is minimala rarity in the industry. Alot of research and
analysis is done in the office and, generally, engagement teams visit clients only one
day every two to four weeks. As a senior consultant reports, Although travel
requirements are generally a function of the client and nature of project, the average
project requires a consultant to travel approximately once every three weeks for
client updates and final deliverables. One grateful associate numbers his own travel
days: Traveling at my position is infrequent. I have only traveled once in a full year,
but the average is about once every one to two months. I believe the level of travel
is perfectnot so much that it disrupts work, but enough that it provides an outlet
from everyday routine. Another consultant explains what keeps Kaiserites from
clogging our airports: Our work is primarily office- (rather than client site-) based,
driven by our focus on strategy and outside in analysis, rather than implementation.
As such, travel is relatively limitedusually short one- to three-day trips for key
client meetings.
Associates with some time under their belts seem to agree that travel demands
increase significantly as you move up in the Kaiser ranks. While managers may
travel several times per month, newbies seem to stay close to home for even longer
stretches. One senior consultant remarks that the majority of associate consultants
will not travel during their first year, though the firm clarifies that the amount of
travel for rookies is usually about six to seven times per year. Another higher-up
says, due to the nature of the work, travel is minimal, but increases with career
progression. This close-to-home culture makes for some happy staffers. Kaiser
employees have a peaceful, content attitude towards hitting the road, prompting one
London-based staffer to breezily remark that travel is just a good opportunity to
have a bit of fresh air.
Nice digs
With so much time spent at the office, its great that Kaiserites give high marks to
their work digs. One employee gushes, Kaiser Associates is located on 1747
Pennsylvania Avenue, in the heart of Washington, D.C., directly between the White
House and the World Bank/IMF buildings. The location is pristine and easily one of
the key points of attraction for consultants. Apparently those antiglobalization
World Bank protesters arent much of a nuisance, as another D.C.-based consultant
agrees with his colleague, saying, [Its a] fantastic location in the heart of
Washington, D.C. We have a view of the White House. The location is great, being
just steps from the White House, World Bank and IMF. The firm adds that as its
Kaiser Associates
U.S. practice grows in 2006, it is expanding to a second office across the street.
London-based Kaiser staffers are also pleased. A senior consultant from across the
pond reports that offices are very pleasant and quiet, and an excellent location
within central London near Covent Garden.
The 30-month two-step
Kaiser takes a 30-month approach toward new hires. Theres a lot of information
on this on the company web site, but the quick and dirty is that in the first 15 months,
consultants are kept close to home in order to hone their research, analytical, writing
and presentation delivery skills. Purportedly, most consultants earn their first
promotion after this period. The second 15-month period emphasizes project
management, as employees are given increasing involvement in client interactions.
Full speed ahead
Employees have a lot to say about the promotion process at Kaiser, which is strictly
based on merit. Employees label the firm a classic meritocracy, and its really
responsibility, beyond age and experience, that gets you ahead at this firm.
According to one senior consultant, Individuals are promoted based on effort and
translating that effort into good work. Development of the complete consultant is
a key philosophy for progressionin other words, consultants will have mastered all
aspects of their position before being rewarded with promotion.
Insiders are especially fond of the speed at which top performers can move up the
ladder, and claim that consultants advance, in general, quicker than in other
consulting firms. Staffers progress is carefully monitored by higher-ups, and
promotions are granted based on merit. Says one associate, The firm has an
excellent promotion policy that rewards fast learners and successful employees.
There is a proven track to reach the VP level and plenty of opportunities and tools to
do so. The people who usually leave the firm usually do so because they wish to
work in a different field, not because of the firm.
A little help from above
For those not advancing as quickly, Kaiser consultants report that managers take an
active role in getting you on track. A London manager notes that the company has a
strong development program and one-on-one attention helps potentially develop
strong consultants from average performers, while another adds that Kaiser prides
itself in developing associate consultants into successful vice presidents, and
Kaiser Associates
2006 Vault Inc. 792
apparently take pains to see individuals through. Acolleague concurs, and emphasizes
that every consultant is given the opportunity to improve if performance is subpar.
Given this extra support for those lagging performers, several sources reiterate that
you still need to stand out from the rest in order to advance. Says one insider, If its
not clear yet, dont think that Kaiser consultants who keep their head above the water
are given the key to the executive bathroom willy nilly; you really do have to stand
out from the pack. And as a manager states, The good news is that top performers
are promoted in 12 months. The less good news is that only very few are top
performers. You need to do your utmost.
Training tidbits
Upon arrival at the firm, new hires go through a one- to two-week initial training
period where they are taught how the firm works, basic tools, ethics, legal advice,
etc. This first stab at education gets mixed reviews and, after that, staffers seem to
be on their own. The firm notes that a consultants first engagement counts as on-
the-job training and is not viewed as part of his/her performance record, but rather as
a learning opportunity. One associate says there is good initial official training, but
then rather poor afterwards. You need to be exposed to senior officers (and show
them that you have potential to become one) for them to train further. Another
source adds that after the initial training, there are follow-up sessions to gauge
progress, [but] most of the learning after the initial training comes from actual
engagement work. This source does add that there is potential for more advanced
training for experienced people, and a London-based consultant tells of some
ongoing training streams for the whole firm.
Others add to the poor reviews of Kaisers formal training opportunities. One
manager comments that the formal training program can lack structure at times
you need to be active to define your own role and needs, rather than having those
handed to you. Another fellow senior staffer is of the same opinion: Although the
training is official, sessions are generally informal and lack the rigor as well as
systematic approach of training programs at other firms. While other firms generally
tend to focus heavily on introductory training, Kaisers mentality is to teach and learn
via project experience. Indeed, most sources maintain that the most useful training
is on the job. The firm remarks that all training sessions are taught by seasoned
Kaiser managers and vice presidentsan example of the involvement of the firms
leaders in the development of its younger consultants.
Kaiser Associates
Two heads are better than one
Formal training aside, new hires and low-experience consultants are also paired up
with a mentor, an initiative that insiders praise. Several staffers laud the mentorship
system and the help of fellow peers. One D.C.-based associate tells us that consultants
are also assigned mentors upon arrival, which can provide an additional avenue to seek
and gain advice/knowledge. People throughout the office are additionally extremely
willing to take the time to teach others how to accomplish tasks. Another consultant
agrees, saying, There is a lot of formal and informal mentoring, which provides a
pretty good safety net. And one managing consultant, after praising the firms
mentoring program, rationalizes Kaisers tendency toward informal learning. Being a
small firm, he says, Kaiser doesnt have as many resources to invest in training
programs, but Kaiser is continually developing new training programs internally to roll
out to the firm and these are generally very useful.
Super supervisors
And Kaisers mentoring opportunities are supported by an excellent senior staff,
sources say. Arecent graduate offered this detailed analysis: The supervisors (in this
case managers) at the firm are excellent, in most cases. They have usually worked
as a consultant before and know the common pitfalls and issues that one faces.
Additionally, they tend to have great business experience and knowledge. Access to
top-level management is impressive. VPs keep an open-door policy and are more
than willing to talk in hallways/lunch room over any subject. This praise is echoed
by staffers across the board. A fourth-year employee remarks, It is amazing how
actively supervisors listen to consultants, and more surprisingly how they take
action!
If there is any negative here, its not the quality of the management, but rather the
smattering of consultants who wish there was simply more time to be spent with
supervisors. One new staffer comments that in his experience with higher-ups, The
nature of the work means that the contact is often not extensive and restricted to
update meetings. Apeer agrees, and also appends an interesting side note, Officers
are rarely in the office, but when one does interact with them it is often collegiate.
Another interesting tidbit, he adds, is that managers often began as associate
consultants at Kaiser. This is both good and bad since they know the process very
well, but often are too close to see how improvements can be made.
Kaiser Associates
2006 Vault Inc. 794
Griping for greenbacks
Mum. Thats the word on compensation at Kaiser. Employees give mediocre
reviews to Kaiser salary, and seem to have little to say on the matter. One lonely
associate did break the silence, however, saying, We work enough hours that the
salary should be higher, in my opinion. And another ties his unhappiness to the
promotion system, asserting that salary increases are tied almost exclusively to the
promotion process. Since the promotion process is unwieldy and takes forever,
frustration around salary and raise requests are frequent.
Employees are more voluble on bonuses and dont seem terribly enthusiastic in that
department, either. A D.C.-based consultant claims that base salary is competitive
with the industry standard, [but] bonuses could be higher. Another insider explains
that bonuses totally depend on how well you do individually at Kaiser, and the
firms profitability.
Commonplace perks
If youre looking for a paradise of freebies, Kaiser may not be the place for you. An
associate reports that perks outside of day-to-day work that would otherwise be
considered endearing or nice to have are somewhat limited. Still, the firm does
have a few standard perks that make employees lives a little more enjoyable.
Consultants laud the free gym, free dinner if you work past 7, and free cab home if
you work past 9. And a healthy snack program seems to have triggered a response
amongst some snoozers who lost out, causing one employee to gripe, We also have
little perks like healthy snacks in the fridge (although they disappear long before
they get filled).
Depends where you are
The presence of women at Kaiser seems to differ by location. Londoners laud the
female-heavy numbers. As one managing consultant emphatically states, It is a
women-run company. It clearly reflects in the culture, in the positivism. And
another Brit reiterates that the firm is very receptive to hiring, promoting and
mentoring women and helping them develop their careers. But D.C.-based
employees tell a different story. According to one, Kaiser is one-third women and
there are several women officers (VPs), while another comments that there are very
few women at both offices and midlevel positions. But, despite the numbers, one
female consultant explains that she does not feel disadvantaged. There arent as
many women at the firm as men, particularly at the VP level, but as a woman I think
Im supported as equally as the men are.
Kaiser Associates
All but one
Consultants may not have an implicit dont ask, dont tell policy toward
homosexual employees, but sources are quite quiet on the subject. GLBT consultants
do not seem to be making their presence known in the office, and one associate
remarks that there are none that I know of at the firm. Only one associate
anecdotally reports, I know there have been a few homosexual employees in the past
and they were very happy here.
But if insiders are a bit hazy on sexual orientation in the office, they are more certain
of ethnic diversity. Kaiser gets high marks for hiring Asians and Latinosthe U.K.
office in particular has an eclectic international mix of consultants. According to a
manager in the London office, In my office, we are all minorities. Out of 15
consultants, there are 14 nationalities.
But if youre looking for African-Americans, you wont find many. This prompts one
D.C.-based associate to quip, Diversity? Whats that? Another offers this meatier
analysis, Kaiser is not a discriminative employer. However, there are no African-
Americans in the D.C. officea random note when one considers all the other races
and ethnicities around. The firm notes, however, that it does have African-
Americans in its other offices. A senior staffer agrees, saying, Several languages
and countries are represented. In fact, there are consultants who have been recruited
with favorable attention given to their Spanish speaking skills. This is due to the
multiple projects that are South American and Latin American based. However, the
single minority that is underrepresented at Kaiser is African-Americans.
Casual charity
As a firm, Kaiser is not the most pushy and proactive of charitable companies; but
some good works are undertaken. One source says that Kaiser adopts charities and
has supported various ad hoc charitable activities driven by consultants. This past
year, it matched 50 percent of all Kaiser employee donations to Hurricane Katrina
victims. So while charity is often an employee-driven affair at Kaiser, the company
does look kindly upon those willing to donate their time, and responds favorably to
initiatives taken up by employees. Heres the final word: The firm does not actively
encourage community involvement, but will support individual initiatives by
matching contributions or allowing consultants to take some time off.
Kaiser Associates
2006 Vault Inc. 796
m.a.partners, a part of the
Detica Group
330 Madison Avenue, 9th Floor
New York, NY 10017
Phone: (212) 573-0984
Fax: (212) 573-0991
www.ma-p.com
LOCATIONS
Chicago, IL
New York, NY
Amsterdam
Geneva
London
PRACTICE AREAS
Business Processes
Strategy & Architecture
Technology Management
THE STATS
Employer Type: Division of the Detica
Group
Ticker Symbol: DCA (LSE)
CEO: Jon Moore
2006 Employees: 175
2005 Employees: 150
UPPERS
Access to clients and business
development opportunities at junior
level
Little bureaucracy
Local projects, minimal travel
Very strategic and conservative
approach to growth; employees
feel secure about the firms
direction
DOWNERS
Because of our small size, its
sometimes hard to sell certain
types of work, even though were
more qualified
Compensation doesnt equal
effort
Global aspect is sometimes
difficult to manage
Uncertainty of being placed on
assignment
EMPLOYMENT CONTACT
www.ma-p.com/careers/index.php
E-mail (US): careers-us@ma-p.com
E-mail (Europe):
careers-europe@ma-p.com
THE SCOOP
British born
m.a.partners is a niche consulting firm focused on the global financial markets industry.
For buy-side and sell-side institutions, the firm offers strategy and architecture, business
process consulting and technology management services. The firms clients are
comprised of global investment banks, asset managers, private banks, prime brokers,
exchanges and retail brokerages. Founded in London in 1996, the firm started as a
partnership with big plans to become a global consultancy. In 1999, m.a. opened a New
York office and in 2002, the firm converted to a corporate structure and appointed Robert
Jeens as its first chairman. An Amsterdam office opened in 2004, followed by a Chicago
branch in 2005 and a Geneva branch in 2006. In its patient growth, the firm plans to let
client demand dictate steady geographic expansion. Immediately, its goal is to build out
its network in Europe and North America, with an eye on future prospects in Asia. In
August 2006, m.a.partners was acquired by the Detica Group, a 1,000-person business
and technology consulting firm that specializes in information intelligence
Architects of change
m.a.partners focuses on strategy through to implementation. The firm serves clients
by helping them shape and articulate their goals; create supporting technology and
operations strategies; decide whether to build, buy or outsource solutions; and finally
to manage that process through to final implementation. The firm also manages
software implementation and vendor selection projects for clients. For instance, if a
bank wants to upgrade its trading systems, m.a.s consultants provide the full scope
of services from needs analysis, to review and selection of alternative packages,
defining an implementation strategy and managing the delivery of that strategy.
Consultants also work with institutions on business processes design, implementation
and sourcing, as well as operational risk. One recent project was to plan, build and
launch a European equities trading service for an investment bank. Consultants were
brought in to get it up and running quickly. m.a. helped build a team to set up and
run the trading service, and provided coaching and instruction. The new trading
capability was key to the banks strategy to become a leading player in the
institutional equities market.
Not for novices
m.a.partners prides itself on its integrated team approach. The firm has a flat
organizational structure with concentrated industry expertise, as opposed to the
m.a.partners, a part of the Deti ca Group
2006 Vault Inc. 798
traditional pyramid approach, in which a team is diluted with junior staff. The
firms 175-plus consultants have an average of 10 years experience, and it boasts a
turnover rate below the industry average. The strategy seems to be working; the firm
claims that 85 percent of its business comes from referrals and repeat business. m.a.
has never downsized, even through the financial downturn in 2002 and 2003. CEO
Jon Moore attributes this to a combination of working harder for our clients and
getting involved in areas such as cost-cutting or offshoring.
Tech teams
To broaden its technology horizon, m.a.partners has established relationships with
technology application vendors and service providers, such as Calypso, ADP,
Sungard and GoldenSource, which serve the financial industry. Partnerships with
these firms allow m.a. to reduce risk and shorten service delivery time for its clients.
GETTING HIRED
Picky partners
m.a.partners is discriminating when it comes to potential staffers and proud of it. In
this growing environment, Only top quality candidates make it to the interview
process and from that pool only about one in 20 is hired, boasts a consultant. And
according to another insider, [Our hiring process] is quite robust, but for good
reason. We want to make sure that mutually on our end and the candidates end that
there is a complete fit here, as we have quite a strong culture. This source goes on
to describe the highly structured interview process, which typically consists of six
rounds. Candidates go through six rounds of interviews: Onemeet and greet,
introduction into the organization and candidate; twoassessment of project
management and industry knowledge; threebusiness development, client delivery
and firm development; fourbehavioral and HR; fiveevaluation of cultural fit,
meet senior management; sixdinner social. Once past the stringent hiring
process, the employees acknowledge its virtues. It seems to take forever when
youre in the middle of it, but once youre in, I think everyone appreciates that this
is how the company keeps the quality of people so high.
In for the long haul
Why make job seekers jump through all these hoops? An insider explains that the
focus is on making a robust process as we dont burn and churn our folkswe
want to keep them for the long term. As such, we need to find the right people who
we want to be around for a long time. The particular mix of skills of our consultants
is highly valued by our clients, so we ensure that we dont compromise the quality
(or the brand) of the firm by just hiring to get people in the door. If the firm were
writing a personal ad, it would read something like the words of one m.a. partner:
We are a small firm looking for both talented people and also people who are self-
starters and able to fit in culturally. Candidates should also ensure that they have a
solid background for the job. One source says, I believe they only recruit
individuals with either consulting and/or capital markets experience. The firm seeks
out qualified candidates at Columbia Business School, NYU Stern and Fordham
University, among others.
A solid case
Case questions also play a formidable role in m.a. interviews, and generally are
related to the firms areas of expertise. They consist of cases specific to investment
banking strategy, capital markets strategy and general thought process, according to
one consultant. But there are no standard case questions, sources suggest. One
partner states that interviewers are mature and able to determine their own
questions, case or otherwise. Through our process, it becomes quite evident to the
candidate that no one is working from a canned script and each interviewer is able to
customize his/her questions for the situation based on experience. Another
consultant adds that there are no trick questions; its all about your experience,
personality and attitude, and questions are designed to gain a deeper knowledge of
your experience, adds another. Several sources offer some examples of questions
that they encountered in their own interview process: Give an example of a
disappointing project outcome and how you turned it around to make it positive?
and What is a high level process to frame a project at the onset? What sort of
dependencies, resources and milestones do you look for and plan for?
OUR SURVEY SAYS
Culture vultures
As a young firm, m.a.partners is still in the early stages of developing and sculpting
its internal culture and, as such, management is receptive to staffer feedback.
Employees consistently mention the value that management places on their ideas and
contributions as one of its distinctive qualities. A source says, Throughout
orientation and after, firm members at all levels have spent time discussing key firm
2006 Vault Inc. 800
issues and strategies. The expectation is that everyone takes part in shaping the
firms future. It has been a very welcoming experience in comparison to larger
firms. Another consultant notes, I am impressed with how much m.a. invests in
developing our culture. Ive never been at a firm that spent as much time and effort
on this.
In addition to managements receptivity to employees suggestions, insiders praise
the flat organizational structure and team-oriented, work-hard, play-hard ethos.
One insider says, The culture at this firm is one of highly talented and motivated
individuals who are, by and large, unpretentious and enjoy frequent social events.
In addition, says a consultant, the upper-most levels of management stress a fun and
enjoyable culture. There are disadvantages to being part of such a small, tightly-knit
band, however. As one employee grouses, The small size amplifies the problems
generated by any weak or impersonal employee.
Growing pains
But there are inevitable hiccups associated with being part of a growing business. An
insider observes that because m.a. is a small company[were] having to make do
with certain things, [like] not having the resources of a larger company. Acolleague
notes that it can get pretty hectic sometimes while trying to grow the business, yet
focus on client deliverables. One employee criticizes the uncertainty of the next
project. Because were still pretty small, its hard to get much say in what you work
on next and who with. His co-worker observes that the small-scale nature of
business means the firm cant always offer as full a range of opportunities as Id
like. On the other hand, being part of an expanding business has its high points.
Among them, one consultant lists, are low bureaucracy, access to clients and
business development opportunities at junior level, [and] contribution to internal firm
development efforts. Another source enjoys having an impact on the overall firm
and seeing the growth and progress, a sentiment shared by a number of staffers.
Managerial attributes
The firms unique culture contributes to cordial relations with supervisors. One
consultant says, m.a.partners has a very flat organizational structure, which allows
for complete access and openness with firm partners. Working in small project teams
has given me the ability to interact directly with clients while on an engagement. A
colleague also praises the very flat hierarchy, saying, Management consultants
can pick up balls as easily as associate partners or partners. [Its] very team-oriented,
as everything is done in teams, and theres incredible support across the firm
(sometimes an overwhelming amount) when trying to solve problems or launch an
initiative. Another employee gushes, The supervisors at this firm are highly
intelligent, highly motivated and highly accessible. There are little to no big egos and
the focus is on adding client value, knowledge, firm building, philanthropy and
work/life balance. On top of that, one consultant adds that senior management,
while providing guidance and leadership, truly provides ownership of the company
to its employees. This provides a culture of ownership and responsibility in all
aspects of the firm.
Meritorious advancement
m.a. insiders appreciate that once accepted to the firm, they are promoted strictly
according to merit. Eager beavers, take note! Advancement seems to be a function
of the consultants results, says a source, and a co-worker agrees, noting that
promotions are based on performance rather than tenure. In addition, the system
is not up-or-outpeople stay as long as they and the firm get value from the
relationship. [Its] entirely merit-based but, on average, it is not much different from
the big firms in terms of time to partner, says a consultant. In general, employees
praise this promotion policy, which they deem a fair, good appraisal system. An
insider explains, We have a system in place to help steer employees in the right
direction through coaching and buddy programs, as well as objective and appraisal
reviews every six months. This helps to keep on track with where you want to go
and keep the communication flow open.
Some insiders comment on the fact that with only three levels of hierarchy,
promotions can sometimes take a long time to come around. We are a very flat
organization, so advancing may take a couple of years. But the promotion is in title
only. If you are able to handle the responsibilities, then management will let you do
so, according to one employee. Another insider emphasizes that consultants are not
forced out if they are not advancing rapidly enough. He explains, Consultants
advance as quickly as they are able, but are not pushed out if they dont move up.
There are people who have been managing consultants for several years (whose jobs
are secure) and others who have moved up very quickly. And although theyre not
forced out, some consultants get weary of waiting to move up. As one employee
states, there is no a formal up-or-out culture, but most folks join on the basis of
assumed progression and will leave if not able to progress.
m.a. at work
Employees overall seem satisfied with the number of hours spent on the job.
According to one employee, how long he spends at the office depends on the
assignmentin general, 50 to 60 hours per week. In addition to reasonable hours
2006 Vault Inc. 802
for consulting work, the firm has a unique compensation structure. There is no
overtime here and the firm bills by the day, so there is no incentive to work longer
than required, only long enough to produce a high quality deliverable, says a source.
The firms salary is lauded as competitive with other consultancies, and one source
notes that m.a. salary strikes a good balance between Big Four firms (low
compensation) and investment banks (high). Bonuses are handed out twice a year,
which insiders are happy about. As one source explains, the firms good
compensation model and focus on appropriate use of cash provides a higher bonus
pool than normal and, thus, higher bonus as a percentage of salary than at other
firms.
Retention strategy
Even in its short tenure, m.a. knows what it takes to keep consultants happy and uses
work/life balance as a way of retaining its employees. An unhappy burnt out
consultant will walk sooner than later. Ahappy and productive consultant will want
to stay and continue be happy and productive, says a source. And another concurs:
The good news is that the firm really supports work/life balance and listens to staff
when over-stressed [or] burnt out. Retention is very important here. The bad news
is that we are growing rapidly, so demands are increasing.
In order to promote a favorable work/life balance, m.a. tries to ensure that its
consultants are able to pursue personal interests and, most importantly, spend time
with family. The firm is sensitive to the needs and personal lives of its staff and does
its best to work with them to find equitable solutions to issues, says a consultant. I
see my family just about every night and [am] able to rebalance my work around my
life without any problems. Theres lots of flexibility for people on this front and low
travel/not excessive hours contributes to higher-than-average marriage/birth rate
(which youd see the equal as a divorce rate at other firms), a partner claims.
Day trippers
m.a.partners low travel requirements contribute favorably to the work/life balance.
Most of the firms clients are located in financial centers, where the firm has its
offices, so consultants rarely spend nights on the road. With the key audience as
financial markets and the firm based primarily in New York and London, travel
requirements are fairly minimal, says a consultant. Travel is not too bad, mostly
for internal firm business. We tend to do work in concentric circles from where our
offices are located and will prioritize work closer to the office over work in cities
further away, agrees another.
Travel demands are wholly dependent on project needs, which means that some
consultants necessarily spend more time on the road than others. The travel
requirements for clients and for this firm generally average about five days a month
or less, says an insider. Other co-workers note that they travel even less than that,
while some employees spend the majority of time out of the office. Currently, Im
at my client five days a week, says a consultant, and out-of-town clients can require
long drives or train rides to meet project needs, adds another travel-worn
employee.
Temporary measures
Consultants who spend most of their time at a client site are getting the good end of
the deal, according to m.a. employees who are overall less than thrilled with their
office space. Due to the nature of client service business, we spend very little time
in our offices. They are designed to be efficient and get the job done, explains an
insider. Dress up the place a bit. I know most people are not in the New York office
full time but the space feels very temporary, suggests a consultant. But we have
all of the office equipment that we need in prime locations, says a colleague, looking
on the bright side, and as another glass-half-full source comments, We are just
starting outit would be silly to want anything better. It is well suited for our
needs. On the contrary, one source who says that hes at a client site 95 percent of
the time much appreciates that the clients tend to have nice offices!
Beneficial treatment
While some consultants might be forgiven for thinking that travel is a perk of the job,
others appreciate the array of perks offered internally. The perks are awesome!
exclaims a gleeful employee. Theres a hardship allowance for nights spent away
from home (in addition to meals and expenses), notes a consultant, and a colleague
adds, We get flexible spending accounts, transit checks for commuting expenses,
discount fitness memberships to New York Sports Club, discounts for theater tickets
and other entertainment. And speaking of entertainment, once a month we have a
social event where the majority of our office gets together for the purpose of enjoying
a fun activity (wine tasting, comedy club, sporting event, etc.), says a member of the
New York office. The firm also holds a yearly off-site, which is generally in a pretty
exotic location (Portugal, Dublin, Miami), according to one source, who also
remarks that the laptops are pretty cutting edge and the free BlackBerry is nice. A
co-worker points out, though, that the 401(k) plan is poor, with no employer
contribution.
2006 Vault Inc. 804
Training day
The youth of the firm affects employees options for training. The offerings are
currently limited, though there are plans to expand them. One of the higher-ups
concedes that training is somewhat ad hoc [and] limited currently, but a consultant
notes that the training programs are being developed and evolving here due to the
small size of the firm.
Despite the current gap in training opportunities, the firm encourages efforts to learn.
Training at the firm is both official and unofficial. Formal classes and brown bag
lunches provide an opportunity to learn about specific topics. Leadership training is
also provided. Informal training, such as mentoring and leveraging other peoples
experience and knowledge, is a significant part of the learning experience, explains
a source. A colleague advises that theres lots of support to do training (and a
number of training days provided per year). There is also some internal training on
consulting skills, but leave content-driven training to firms that are better at it. No
one forces you to take training if you dont want to, though.
Under construction
Diversity is another area that the firm is working on. One employee notes that
diversity has improved a lot recently. A source observes that there are several
minorities with significant positions at this firm even though the firms heritage in
Europe and North America seems very Anglo-centric. A member of a minority
group helpfully points out that I am one, and they hired me. m.a.partners also
seems to have few openly gay or lesbian employees. Im unsure if I have met a
homosexual at this firm, but all individuals are treated well here, says an insider.
To my knowledge this has never been an issue, adds a co-worker.
Gender diversity has stronger footing at m.a., sources report. While we would like
to hire even more qualified women, the ratios are quite balanced now. Women enjoy
the same opportunities for promotion as men, says a consultant. One way to boost
female representation even more at the firm would be to figure out ways to allow
more flexible consulting engagements for working mothers, e.g., part time, work
from home, another suggests.
Have your cake
m.a.partners isnt all business all the time: Community service also plays a prominent
role. The firms London and Amsterdam offices recently organized a Cake for
Charity event to benefit the Multiple Sclerosis Foundation. Cakes donated by
employees and local bakeries were purchased by the m.a. staff. The proceeds were
then matched by the firm and the total was donated to the foundation. The New York
office also runs an annual food drive. In 2005, the 30-person office donated 440
pounds of food, matched by the firm, to the Food Bank of New York City for the
holidays.
The firms involvement in charitable endeavors is not limited to the holiday season
community service projects at m.a.partners happen all year round. We have a
charity and sponsorship team that gets the firm involved in events such as corporate
races for charities, bike rides for charities, sponsorship of music students, food
drives, donations for disaster relief, toy drives, etc., according to one insider. A
colleague adds that the firm also provides matching donations for employees who
participate in bike-a-thons, walk-a-thons and Habitat for Humanity. Several
consultants mention that the firm sponsors underprivileged music students in London
and New York, and we have an internal charity group that encourages us to
contribute to the community. They are also supportive of any activities we plan on
our own (charity sporting events, etc.), says a source. Another adds, Community
involvement is primarily driven by the employees. If you want to be involved, take
the initiative to rally the organization. There is a significant involvement from the
firm based on this approach. The firm, however, offers no pro bono consulting,
says a source.
2006 Vault Inc. 806
30 Monument Square
Suite 155
Concord, MA 01742
Phone: (978) 287-7500
Fax: (978) 287-7600
www.mercatorpartners.com
LOCATIONS
Concord, MA (HQ)
Washington, DC
London
PRACTICE AREAS
Asset Management
Organizational Effectiveness
Product & Process Leadership
Technology Transformation
THE STATS
CEO: Charles Gildehaus
2006 Employees: 25
2005 Employees: 25
UPPERS
Opportunity for rapid
advancement
Small size makes for close
interaction with colleagues,
managers and clients
DOWNERS
Very little or no bench time
General lack of women in the firm
EMPLOYMENT CONTACT
Lisa Burkholder
30 Monument Square, Suite 155
Concord, MA 01742
Fax: (978) 287-7600
E-mail: careers@mercatorpartners.com
THE SCOOP
Tiny technolgists
Founded in 1998 and with just 25 consultants in its ranks, Mercator is a relatively
new firm, focused exclusively on the world of information, communication and
technologyICT as it is known in the acronym-happy world of high-tech.
Mercator is a strategist, not a software solutions provider, and most of its
engagements revolve around forecasting in the telecommunication business,
specifically regarding the impact of new technologies. For example, the firm
recently worked with a private equity advisor on an opportunity in the broadband
market. Mercator thought the investment was sound, but fetched too high a price; the
deal went down, but Mercator helped negotiate a $140 million reduction in price. In
another typical example, an electronics manufacturer wanted to introduce a new
innovative cellular phone. Mercator studied the competition, assessed the potential
markets and developed a product roadmap to get the phone into the hands of
consumers.
Can you hear me now?
Based in Massachusetts, with its headquarters just 15 minutes from Boston, Mercator
has an impressive list of clients. But although this roster contains names like JP
Morgan and Mitsubishi, it is dominated by the likes of Ericcson, Motorola, Lucent,
Virgin Mobile and Nextel. Mercator definitely has a predilection towards the mobile
market, especially in the realm of handheld devices and wireless networks. Michael
Davies, a Mercator founder, developed one of the first PDAs with cellular network
connectivity while he was working with Nokia and Apple in the early 1990s.
Heavy hires
Mercator likes to emphasize its dual-pronged approach, utilizing deep industry
expertise to better inform very broad, high-level business strategies. The senior staff
boasts extensive experience in the mobile markets at the executive level. Senior
Partner Chuck Ennis served as CEO for Telepad and Roku technologies (both mobile
data specialists) before signing on with Mercator, and adviser Tom Wheeler was CEO
of the Cellular Telecommunications & Internet Association (CTIA) from 1992 to
2003. In 2004, Mercator snagged a formidable hire, signing John Stenbit as a senior
advisor. Stenbit had previously served as assistant secretary of defense, reporting
directly to Donald Rumsfeld in the capacity of chief information officerhis main
focus was mobile and networkable data systems, with the purpose of better managing
2006 Vault Inc. 808
intelligence information among disparate government agencies, as well as using
information-centric warfare to support operations in Iraq and Afghanistan. The
Stenbit hire continues Mercators emphasis on world view strategy coupled with
nuts-and-bolts knowledge. Before entering the business world, Stenbit worked as an
engineer, with a masters degree in electrical engineering from the California
Institute of Technology.
Converging pathways
Mercator has a strong presence in the aforementioned Cellular Telecommunications
& Internet Association (CTIA). In March 2005, the company presented a thorough
study of technology convergence at CTIAs wireless Internet caucus, which warns
that technologies are merging at a rapid pace and that, in the near future, currently
disparate voice and data networks will be indistinguishable to end-users.
Accordingly, companies in the wireless business must be prepared to compete in their
market space with a variety of broadband players. In January 2006, Mercator agreed
to reprise this popular report by offering a yearly update to its findings.
GETTING HIRED
Take me to your leader
Depending on your experience, you can break into Mercator at the associate,
consultant or manager level. MBAs and undergraduates are both welcome to apply,
and internships are available for those on summer break. The interview process
involves a phone screening, then several interviews in one day, [and] follow-up
interviews if the firm is on the edge. And if, for some reason, youre worried about
being interviewed by a bunch of low-level grunts, that will not be the case at
Mercator. An insider at the firm notes that all candidates are interviewed by the
CEO.
OUR SURVEY SAYS
The nexus of Mercator
Mercator gets high marks for the culture, the people and the hands-on experience.
One consultant is especially pleased with the amicable co-workers, while another
appreciates the very fast advancement for individuals who prove themselves
capable. To support this advancement, Mercator offers training opportunities for
employees, mostly in the form of on-the-job mentoring. For new hires, a reliance on
informal training is balanced by a couple of off-site educational sessions and then
lots of one-on-one working sessions with managers, partners and clients. And,
sources report that travel varies greatly by project, as do the hours.
In terms of workforce diversity, minorities fare well at the firm. One staffer points
out that Mercator hires a proportionate number of minorities. Women, however,
can be harder to find. A Mercator consultant explains away the male dominance by
saying, Its not a problem with the culture at Mercator; rather, a structural problem
at the nexus of the consulting and high-tech industries.
2006 Vault Inc. 810
Milliman, Inc.
1301 Fifth Avenue
Suite 3800
Seattle, WA 98101-2605
Phone: (206) 624-7940
Fax: (206) 340-1380
www.milliman.com
LOCATIONS
Seattle, WA (HQ)
Offices in 31 cities in the US and
13 cities abroad
PRACTICE AREAS
Employee Benefits
Health Care
Life Insurance & Financial Services
Property & Casualty Insurance
THE STATS
Chairman: Bradley Smith
CEO: Patrick J. Grannan
UPPERS
Lots of independence
DOWNERS
Heavy number-crunching
EMPLOYMENT CONTACT
www.milliman.com/careers/careers_
at_milliman.php
THE BUZZ
Formulaic, but strong
Friendly
Great techies, mediocre
strategists
Smaller market
THE SCOOP
Taking care of business
From its corporate offices in Seattle and locations nationwide, Milliman, Inc., serves
the full spectrum of business, financial, government and union organizations.
Founded in 1947 as Milliman & Robertson, the company has 31 offices in the United
States, as well as offices in Amsterdam, Bermuda, Hong Kong, London, Madrid,
Mexico City, Milan, Munich, New Delhi, So Paulo, Seoul, Tokyo and Warsaw.
Milliman employs approximately 1,900 people, including a professional staff of
more than 850 consultants and actuaries. The firms consulting practices include
employee benefits, health care, life insurance/financial services, and property and
casualty insurance.
Umbrella organization
Milliman, Inc., is a founding member of Milliman Global, an international
organization of consulting firms serving insurance, employee benefits and health care
clients worldwide. Member firms and correspondents under the Milliman Global
umbrella provide actuarial and management advice from locations in principal cities
around the globe, and are separate and distinct legal entities, wholly or primarily
owned by the partners and staff of the individual firms in each country.
Happy staffers serving clients
In November 2004 Consulting Magazine ranked Milliman, Inc., one of the 10 best
consulting firms to work for. In November 2005, Boston Research rated it No. 1 in
customer satisfaction in its study of record keepers for defined contribution plans
(DCPs encompass a wide range of employee investment options from 401(k) plans
to profit sharing and stock ownership). Milliman Global also continues to add
member firms: In April 2005, allea AG, one of Switzerlands biggest employee
benefits consultants, joined the organization.
Milliman also pops into headlines every so often. In April 2006, The Washington
Post reported that although Milliman had determined that pensions grew in
investment return for the third year in a row, it also discovered that these same
pensions are underfunded by more than $100 billion, if future pay raises are to be
considered.
Mi lliman, Inc.
2006 Vault Inc. 812
GETTING HIRED
What is an actuary?
Millimans web site is the starting point for learning about careers at the company.
There, candidates can find out what its like to work in different practice areas by
checking out profiles of a few current Milliman consultants. One helpful section
explains what actuaries do in real terms, adding information about exams that qualify
employees in the profession. For example, an actuary who works as a pension
analyst will analyze and manipulate data, scan pension plan materials and review
benefit calculations. Those who are interested in the company should contact the
local office where theyd like to apply.
Apply online
Candidates are also invited to apply for a specific position from jobs listed on the web
site. Aside from U.S. openings, the firm includes jobs in worldwide offices, from
Mumbai to Munich. Opportunities are listed by discipline, location and job title. The
firm is reportedly seeking mathematics or statistics graduates who are proficient in
Microsoft Excel and Access and who know how to work with spreadsheets.
Preference is given to applicants with actuarial or consulting experience, though its
not required. Milliman also has opportunities for actuarial students with consulting
experience who have successfully completed two of the exams toward certification.
Mi lliman, Inc.
Novantas
100 Park Avenue
New York, NY 10017
Phone: (212) 953-4444
Fax: (212) 972-4602
www.novantas.com
LOCATIONS
New York, NY (HQ)
Boston, MA
Madrid
Singapore
Toronto
PRACTICE AREAS
Banking
Brokerage
Information Services
Insurance
Sourcing
Telecommunications
Utilities
THE STATS
Managing Partners: Rick Spitler &
Dave Kaytes
2006 Employees: 100
2005 Employees: 75
UPPERS
You feel like you are doing the
best work there is in the industry
Combination of intelligence,
intellectual curiosity and social
savvy I havent experienced
anywhere else
Lots of responsibility, self-defined
structure
Exotic travel possibilities
DOWNERS
Limited breadth of industries
(almost all financial services)
Still missing a lot of processes
and procedures that makes the life
of the employee easier
HR functions are kind of
confused
Can be frustrating for those
looking for a brand name resume
line
EMPLOYMENT CONTACT
www.novantas.com
2006 Vault Inc. 814
THE SCOOP
Pillars of performance
Novantas operates under four basic value pillars: analytical rigor, practical industry
knowledge, proprietary methodologies and always having senior staffers on hand to
manage engagements. The fourth pillar isnt much trouble, as Novantas is a lean
company with a team of 100 employees, almost a quarter of which occupy leadership
positions. Clients include American Express, Bank of America, Citibank, TD
Ameritrade, McGraw-Hill, Merrill Lynch, Microsoft, TXU Corp. and Virgin Group.
Novantas also cites insurance and telecommunications customers, though much of
the firms work is centered around major banks, brokerage houses and credit card
companies.
Founded in 1999, New York-based Novantas was formed by several Booz Allen
Hamilton, Bain and First Manhattan Consulting Group consultants. The firm helps
clients to accelerate revenue growth through strategies based on complex data
analysis, specifically with regard to customer science. Novantas likes to become a
student of its clients customers. Many of its key offerings revolve around this
strength. Typical engagements for Novantas include pricing strategy, distribution
strategy, customer segmentation and offer design. Another major strength is
customer interface (especially voice and Internet customer support systems).
Making science work
Novantas is not a stodgy company; its motto is we bring science to services. High-
tech software and innovative mathematical models anchor the proprietary tools
Novantas has developed in just its few years of existence. The firm uses scientific
approaches to address particular consulting issues for clients, but also provides
analytical capabilities that executives themselves can use for ongoing management
purposes.
In the area of pricing, for example, the firm provides a suite of analytics that pinpoint
local economic drivers, competitive factors and customer sensitivities that shape
deposit competition in each major U.S. market. MindSwift is a web-based platform
that facilitates customer interaction through a test-and-learn process and is used at
major call centers. Qualytix is a performance benchmarking service that compiles
millions of customer records to pinpoint industry norms and precisely identify
performance issues and opportunities for participating banking companies. Apex
provides market-by-market analyses of sales opportunities in small business banking,
Novantas
as well as retail bank branch performance metrics. PriceTek provides the analytical
backbone for the formulation and management of regional pricing. And StratShop
methodically assesses branch sales and service behaviors to provide key performance
insights for training, coaching and management.
War games
Novantas is also well known for war games. This refers to the firms software
simulation tool, Market$im, which uses more than 1,000 independent pricing
variables to comprehensively represent the banking choices available to a potential
customer. Novantas cloaked this mathematics-based engine with a game-like web
interface that makes the consequences of changing banking strategies readily
apparent. Schools like the CBAGraduate School of Banking at UVAuse the program
in retail banking management programs. Novantas clients have the advantage of
being able to customize the input data to reflect regional differences, or to emulate
any specific environmental variable unique to their market. Clients also use the
software to train young managers.
GETTING HIRED
Super selective
Novantas is picky about whom it accepts into its ranks, and this selectivity starts right
from the beginning of the hiring process. The firm accepts write-in candidates but
finds most of its associates in the Ivy League, recruiting actively at Harvard, Yale,
Columbia, Cornell and the University of Pennsylvania. From these five schools
alone, the firm notes, it screens more than 1,000 resumes per year, with only 150 to
200 applicants contacted for further discussion. A manager with the firm offers a
sobering assessment: Its pretty hard to make it through the process from start to
finish for first-year hires out of college. We usually give offers to about 1 to 2 percent
of applicants. If your resume rises out of the slush pile, expect a phone call. One
associate who made it through, explains, Before the interview, we call the
candidates to feel them out, see what theyre like, and to get initial impressions.
While this is not an interview, it could make or break whether you get an interview
if you are on the cusp. We usually call more people than we interview.
After this selective meet-and-greet, things are pretty standard. One consultant
reports, The first-round interviews are on campus and consist of two half-hour case
studies with a managing director and a manager/principal. The final round of
Novantas
2006 Vault Inc. 816
interviews is two half-hour case interviews with two partners, a writing sample and
some get-to-know you time with the associates. Mixed into this are a couple of
dinners and post-second-round drinks at a local lounge.
Come out of your shell
What Novantas is looking for will not shock you. A senior associate says that the
ideal candidate will be able to reason and analyze situations quickly. He or she must
also be a good communicator and someone who will interact well with the client.
For those who find the companys selectivity daunting, the firm isnt looking to rake
you over the coals. Reports are that the interviews are very personal and
nonthreatening. Fun case studies are presented to tease your brain out of its hiding
place. Here are a couple of favorites to get you thinking: Should Nike enter the
tennis racket market? and How many hot dogs are sold at MLB ballparks each
year?
OUR SURVEY SAYS
People power
Novantas staffers love their office culture. Big points go to the firms lack of
bureaucracy, and the flat structure. One consultant also calls the office the least
political, most open place to work on the planet. But, and overwhelmingly so, what
gets Novantas employees really gushing is the quality of their co-workers. An
associate says, The firm culture was arguably the biggest draw for me. While
interviewing, I was blown away by the unrivaled intellect of the employees, but they
were all remarkably sociable and friendly. Furthermore, they were interesting. The
people I work with and the culture they create make Novantas a wonderful place to
work. This combination of personability and intellect comes up time and time again
among sources. Another young hire says, Its an exceptionally rigorous, analytical
group, even by consulting standards. And theyre often quite a lot of fun. Its a rare
combination. All in all, Novantas staffers truly seem to enjoy going to work. One
rookie says, Coming back into the office on Fridays after being away for four days
is something to look forward to. But for the final word on office culture, listen to
this veteran of the firm, a principal. He remarks, Ive worked at all the usual places
and it would take the Jaws of Life to pry me out of here.
Novantas
Burnout prevention
Despite average work hours per week creeping toward 60, Novantas consultants
seem to be a happy bunch, and are encouraged to maintain a positive work/life
balance. A veteran consultant new to the firm reports, I frequently see partners
making the call on what has to be done today versus what can wait. Unlike the big
firms, where there is a planned attrition of the entry-level hires, Novantas isnt a
meat grinder. There is a sincere desire to see everyone succeed and enjoy a balanced
work/personal life while they do it. Staffers appreciate this commitment by
management toward junior workers. One recent hire explains, Having close
working relationships with managing directors allows you to push back when the
workflow becomes overwhelming. Managers have a lot invested in the analyst staff.
They want to make sure people dont burn out. Its also not necessary to show up
at the office when work is lighta huge boon. One consultant claims, Ive been
explicitly told not to put in any face time. Its actively frowned upon. The message
is Do your work well, then go have fun in the city. Novantas also sets up (and picks
up the tab on) various happy hours, team dinners, company outings, holiday parties,
etc. Employees also report spending a good amount of time fraternizing after hours.
The associate class is very tight-knit. Partly, this reflects the time spent together
traveling in project teams. It certainly helps to have a diverse group of people with
different backgrounds and interests. The closeness of the first- and second-years is
complemented by the approachability of senior management.
Although Novantas associates are generally satisfied with post-college life, they do
report having extremely full workdays. One newbie says, We are busy! We go from
one project straight to another. Partners earmark people sometimes a month before a
project starts. Also, our firm sells work by promising quick, above-average results.
In other words, business is good, meaning hours are long. Acolleague agrees, Due
to the overwhelming new business being pitched and won, the associate staff is being
stretched a little thin and this translates to longer-than-ideal work hours. However,
the majority of the senior staff acknowledges this reality and do appreciate our
commitment and effort.
Making time for family
Novantas employees may be a busy lot, but they handle it well. As one insider
remarks, While work, particularly with foreign clients, demands my schedule to be
flexible, its a rare case that any plans I have made in my personal life ahead of time
are interrupted. If you can plan in advance, the balance can be maintained. This
balance seems to go all the way to the top. Several senior managers report that they
Novantas
2006 Vault Inc. 818
are able to handle the kids at work, as well as at home. Adirector says, Yes, Im
a single parent with three kids that live at home and Im able to be very active at the
firm, stay in shape and have plenty of vacations. And one busy principal claims that
he, too, is able to balance work, family life (I am married with one child) and [also
attend] school (I am currently enrolled in the EMBA program at NYU Stern). The
firm supports me and encourages me to take time off to study and be with my family.
Go your own way
Travel obviously comes with the territory, but individual schedules vary widely at
Novantas. One manager claims, Last year, I set foot in 44 different airports, while
another says, I havent had to travel so far. I am married and prefer not to travel for
work. My clients have been local. Novantas consultants often call travel an
opportunity, and with engagement sites in London, Vienna, Prague and Dubai, who
can blame them? The amount of travel really seems dependent on which projects
consultants take on. As one insider explains, Travel is simply something that you
learn to live with as a consultant. While some firms have policies that all staff will
be on the ground four (or five) days per week, Novantas travel policy varies from
project to project. I have spent months living in foreign countries for work, and then
have come back to New York and only had to travel a few days per month. Each has
its own merits and its own challenges.
Asenior associate reports that Novantas road warriors generally choose the lifestyle
of their own free will. He says, While weve had projects in Europe and Asia,
assignments with demanding travel requirements are generally given to employees
who request them (there are many benefits to international travel, including the
valuable work experience and the chance to travel to different countries on the
weekends). New hires and associates may have less say in the matter, but they dont
seem to be complaining. One new hire tells us, Over six months of work, Ive spent
seven workdays on the road. Some projects do require more traveling, but almost no
one is doing the four days at the client site, one day in the office routine. You either
stay in New York, or you go to San Francisco for two weeks, Dubai for a couple
months, London for a month, etc.
Growth from within
The promotion policy at Novantas, based strictly on merit, earns high marks among
new hires and vets alike. One consultant says, Novantas tries hard to grow its
personnel and promote from within the firm. Its a meritocracy system, where you
will be rewarded for your hard work. The firm states that its staff is continuously
reviewed for promotion opportunities, and this is done to retain and reward skilled
Novantas
employeesa policy that is in its best interest. There is some turnover with
employees jumping to MBA programs or to client companies, but no up-or-out
system is in place. Another source explains that advancement is rather quick, on the
order of one to two years. I find that most consultants either move up or start looking
outside the firm once they have gained the highly sought after skills working here
provides.
And an MBA is definitely not a requirement for successseveral consultants report
that you can progress to partner without needing to get an MBA. The reasoning
for this comes from the top. One principal claims that the firms policies stem from
its early selectivity in the hiring process: As a small firm, every single hire is
critical. In my experiences at the larger firms, I saw an attitude of hire a bunch and
well sort out who we want to keep. At Novantas, a candidates long-term potential
is considered right from the start. That makes better business sense, and is a more
respectful and honest way to treat candidates. Another senior staffer corroborates
this, pointing out that the core of our current management team started at the firm
as associates, with two promotions in three to five years. One thing to keep in mind,
according to a consultant, is that the firms policies are malleable depending on
business conditions. He claims, The promotion policy depends on firms
performance, with hard-core up-or-out during hard times, and the opposite during
good times.
Bonus babies
Employees report no qualms over compensation, and feel that their salary is in line
with most major competitors. Asenior manager with the firm tells us, Consulting
salaries, particularly for new employees, are rising every year as the industry
recovers; at Novantas, it seems the aim is always to be competitive and keep stable
with the market. But one thing that employees are talking about is their bonuses,
with several consultants reporting that the firm is bonus-heavy. This is a good
thing, staffers feel, especially with the current performance of the company. Asenior
associate says, The bonus is a very large part of compensation, which gives junior-
level consultants a big stake in the firms profits and losses from the beginning.
Consultants can expect to earn full bonuses each year, provided that they meet
performance and utilization standards. Being a small firm, partners have some
discretion over compensation, so bureaucracy wont get in the way of exceptional
associates.
Novantas
2006 Vault Inc. 820
Crash course and more
New hires and more veteran employees alike seem pleased by the amount of training
offered at Novantas. Heres the inside scoop: Formal training comes in the form of
a crash course at the start of employment, as well as project simulations throughout
the year. Mentoring is also formally offered, though people are encouraged to seek
out partners of their own accord. There is also word that the firm is beefing up its
educational efforts; a source mentions that a new training program has recently been
implemented this year, which is an ongoing process that exposes new employees to
the firms various capabilities, [and] gives a grounding in basic principles of
accounting, banking and other related subjects. The firm also offers several online
self-study modules that associates continue to participate in for the next 12 to 18
months after they complete their initial training, and quarterly product/skills
training for all staffers.
While there are formal programs in place, most consultants agree that the majority of
training takes place on the job. A manager explains that on an informal basis, each
associate is assigned both a mentor (usually a manager or principal) and a senior
mentor (managing director), to whom they can go for any career advice or problem
resolution. Staffers express a lot of confidence in their co-workers, and believe they
can rely on each other to learn all they need to know to get the job done. Mentoring
is an established tradition of the firm, a consultant indicates, and another insider
adds that the congenial, collegiate atmosphere means that a lot of the skills you pick
up will be from other associates, senior associates and managers. And for those who
fear being left out in the cold, one younger consultant offers some words of
reassurance: You pick it up as you go along. You feel like an idiot a lot of the time,
but everyone is very willing to help you along, and a co-worker adds that you can
find help very easily. You are never thrown into a project without enough pointers.
Meeting higher-ups
Whether its the firms own top dogs, or the executives at client sites, young
Novantas staffers are quite satisfied with the amount of high-level interaction they
receive. One effusive recent hire says, I think one of the great things about
Novantas is the ability for relatively junior-level consulting staff to interact with very
senior-level clients. I remember about three months into my first project, the partners
on my project asked me to present part of our findings to the chairman of the board
of our client. I was absolutely terrified at first, but was amazed at the opportunity I
was being given. Associates are equally impressed with their own bosses: It often
occurs that my supervisor is a partner or principal. Those relationships have been the
Novantas
most rewarding that I have developed thus far in my career, explains one consultant.
With two years under his belt, a less starstruck Novantas employee reports, One of
the main reasons I came to Novantas was the strong relationship between senior
management and the associates. This facet of the company has contributed in a large
way to my development and happiness here. A colleague, who is additionally
enthused about the quality of engagements, says, The partners are extremely smart
and do work closely with junior team members. Work is almost always interesting
and often even fun.
Attracting women
Novantas is changing, hiring more women at the junior ranks, but the firm still hasnt
completely erased its image as a boys club, were told. Its getting there though, as
insiders report that the presence of female associates has bumped up to 30 percent.
One associate reports, Historically, the firm did not have a high percentage of
women professionals. This has changed dramatically in the last two years as the
makeup of our associate classes has included many more women. The incoming
class of 2006 should be a 50/50 split. There arent many women filling seats in the
top ranksthe firm notes that there is one senior partner and a few managersbut
the women at the firm arent complaining. One claims, We dont have a lot of
women, but the ones we do have are very happy (I am one of them), and we are not
treated any differently by our colleagues or in terms of advancement opportunities or
responsibilities. There has recently been talk about setting up regular womens
mentoring dinners, but nothings happened just yet.
Minority matters
An associate with the firm says, Diversity could be improved, though never for a
moment do I feel that there is any racial discrimination whatsoever. It is merely a
product of the talent pool available. This sentiment is repeated by many Novantas
sources. One employee remarks, Speaking as a minority staff member, the attitude
firmwide is pretty much ethnicity-blind, so it doesnt really matter. I actually prefer
that to a formalized minority mentoring program, since that seems to imply that we
should be treated different somehow. The firm notes, in fact, that about a third of
the New York-based consulting staff is drawn from overseas, including Russia, East
Asia, Israel and the Middle East. One other thing to note for those applying without
citizenship, the firm does get high marks for handing out visas to international hires.
Novantas
2006 Vault Inc. 822
Dont ask, dont tell
With homosexuals represented in all levels of the organization, from associate to
director, Novantas is quite progressive. But that doesnt mean the firm is marching
in the gay pride parade. One associate says, We have a few homosexual staff
members, but although their peers know and are OK with it, they are not blatantly out
of the closet to the senior management, since it would probably be looked upon
poorly. A manager himself reports that there is no mention of domestic partner
benefits in orientation. Corporate attitudes dont exactly encourage openness
among employees. But dont take these statements to mean there is any
discrimination going on; rather, it seems that this apathy from on high is of a subtler
sortthat sexuality should not be an issue in the workplace. One homosexual
consultant reveals, There are several gay employees at Novantas, myself being one
of them. My sexuality has never been an issue, whether in the hiring, promotion or
bonus process. Although I do not wear it on my sleeve, most people know that I am
gay and none have any issue with it whatsoever. The main concern at Novantas is
that we serve the client as best as possible, so there is no time to worry about
someones sexuality.
Pro bono, occasionally
The consultants at Novantas seem like a charitable bunch, initiating their own good
works, but the firm itself rarely sponsors volunteer work. Asenior associate explains,
When there has been a major natural disaster, we have collected money to send for
the cause. In my opinion, we do not do enough community involvement.
Occasionally we will do benefit walks as well, or NYC Cares events. This general
sentiment is echoed by one manager, who remarks, Official pro bono activities are
rare, and get surprisingly little support. The more successful initiatives have been
instigated by individuals (partner-level or otherwise), which the firm has been happy
to support.
Novantas
Protiviti Inc.
2884 Sand Hill Road
Menlo Park, CA 94025
Phone: (650) 234-6000
Fax: (650) 234-6998
www.protiviti.com
LOCATIONS
Menlo Park, CA (HQ)
PRACTICE AREAS
Business Risk
Internal Audit
Technology Risk
THE STATS
Employer Type: Wholly Owned
Subsidiary of Robert Half International
Ticker Symbol: RHI (NYSE)
Chairman & CEO: Harold M. Messmer Jr.
UPPERS
Fewer hours than Big Four firms
Recent global growth
DOWNERS
Relatively strict travel and expense
policies
Promotions not easy to obtain at the
consultant level
EMPLOYMENT CONTACT
E-mail: recruiting@protiviti.com
See the firms career pages for specific
regional recruiting contacts
2006 Vault Inc. 824
THE BUZZ
Up and coming
Good penetration overseas
Auditors
What will there be after Sarbanes-
Oxley?
THE SCOOP
Skeleton in the closet
Protiviti is one of several firms that arose out of the ashes of benighted Arthur
Andersen-Accenture. Avail and Huron Consulting, were among other Andersen spin-
offsafter the once-esteemed company was convicted in June 2002 of obstructing
the U.S. governments investigation into the collapse of Enron. Once Andersen shut
its doors, 28,000 employees were left in the cold; in a gutsy stroke of foresight,
Robert Half International (RHI), a multibillion dollar specialized staffing firm,
swooped in and gathered together 650 of Andersens internal audit and risk
assessment team members to form a subsidiary, quickly branding the newly formed
group under the name Protiviti. As Andersens name had become synonymous with
shady accounting, fudging numbers and greedy self-interest, it was a risky move to
hire away a whole team still covered in the taint of scandal. Unjustifiably so, at least
in the eyes of the courtsit was Andersens external auditing practice that was guilty
of malfeasance. None of the newly formed Protiviti staffers had been on the Enron
team, nor were any involved with the type of financial reporting external auditors
specialize in; their focus was on risk assessment and the internal controls of
companiescontrols that are, however, designed to reduce the possibility of fraud
and misstatement.
The hot field
RHIs foresight was rewarded, albeit in sad fashion, as from 2002 to 2004, poor
accounting practices and corporate greed seemingly became de rigueur. Global
Crossing, Tyco and WorldCom CEOs moved from being ahead of the curve to behind
bars. Protiviti quickly distanced itself from Andersen and began a campaign
emphasizing the i in its new name, littering its advertisements with playful
misspellings such as integritI and credibilitI, and adopting Independence as its
favorite one-word mantra. Apparently this approach did the trick, as Protivitis
revenue has skyrocketed, from $133 million in 2003 to $479 million in 2005. As a
June 2005 article from The Institute of Internal Auditors stated, Lets hear it for
Enron. If it werent for such spectacular corporate meltdownsand the federal
crackdown that followedmany fewer college graduates would be making good
money as auditors. Internal auditing is the hot field these days.
Proti viti Inc.
To catch a thief
Abig part of Protivitis success stems directly from the Sarbanes-Oxley Act of 2002,
calling for stringent internal processes to catch fraud and accounting errors. Firms
scrambled to comply with these new federal regulations in 2002 and Protiviti
prosperedrevenue for the new company doubled in 2003. Protiviti offers its clients
a mix of traditional hands-on consulting advice with a suite of software tools that
ease the pain of dealing with Sarbanes-Oxley. Its SarbOx Portal is a Web-based
program that gives companies a centralized repository for all of their internal
documentation. Protiviti has been expanding this networked solution since its 2003
introduction: In September 2004, the firm partnered with software maker Zequel to
add extensions for management, with the specific purpose of communicating
corporate reporting policies and monitoring employee compliance; in March 2005,
Protiviti entered into an agreement with another software firm, TIBCO, to allow
deeper analysis of internal reporting, with the aim of finding redundancies and
making the process more cost-efficient. Protiviti also publishes The Bulletin, a
newsletter that details issues with SOX and corporate governance, as well as vending
software training programs bundled under the name iTraining, that get employees
up to speed on best working practices in the face of current regulations.
Silver lining
Today, the Sarbanes-Oxley legislation is still evolving as lawmakers hammer out the
nitty gritty details. The difficulty of annually meeting compliance has kept Protivitis
business booming. Although this success will most likely continue in the immediate
future, there have been clouds on the horizon as early as 2004, when a Crains New
York Business article foresaw that companies may eventually not need outside help
once they have gotten comfortable with the new standards. Indeed, beginning in
2005, Protivitis own quarterly reports have carefully noted that there can be no
assurance that there will be ongoing demand for Sarbanes-Oxley or other regulatory
compliance services.
But while there may be warning signs domestically for those thriving on Sarbanes-
Oxley, overseas corporations are just beginning to face increasing demands for better
corporate accounting practices. A January 2006 Chartered Financial Analyst survey
of investor confidence in foreign markets showed a united concern for the state of
ethical standards in business and a particular need for improvement in corporate
governance standards. Investors in India were the only ones amongst those
surveyed who thought corporate governance standards among their domestic
Proti viti Inc.
2006 Vault Inc. 826
companies had excellent standards. Perhaps it is noteworthy that India is one of
the few emerging markets that is yet to have a Protiviti office.
Gaining ground
Since its inception, Protiviti has expanded rapidly, opening four offices in China
alone, as well as several across Australia and Eastern Europe. Today there are more
than 50 Protiviti offices worldwide. In May 2006, Protiviti launched in Germany by
opening offices in Frankfurt and Dsseldorf. The company gained a foothold in
Central America in January 2006, opening its doors in Mexico City. And in
December 2005, Protiviti opened an Amsterdam location.
The firm has also had a spat of recent acquisitions to bolster its line of services. In
March 2006, Protiviti acquired P.G. Lewis & Associates, a data forensic company
specializing in high-tech sleuthing for clients involved with litigation. Earlier in
2006, Protiviti also purchased two Canadian companies: Radius, a strategy adviser in
crisis management, worker safety and assorted business risks; and Creative Options,
a communications expert that uses high-tech applications to increase employee
awareness of those very same issues.
Risk management
Although regulations and corporate governance make up the bulk of Protivitis work,
it also continues to offer watchdog services in other areas of business risk. Many of
these services stem directly from the firms interest in bad business practices, anti-
money laundering programs and litigation consulting to name a couple, but several
are more tangential. For instance, Protiviti offers a host of services related to
detailing investment risk and managing credit, and worker safety and supply chain
vulnerabilities. Protiviti also has a separate wing solely dedicated to technology risk.
Security is a main focus, as well as building redundancy and failover into systems,
integrating both legacy and new applications, and streamlining business processes
and project management through networkable programs.
Protiviti has also met with some success in the area of enterprise risk management.
In November 2005, the firm was named as one of four leaders in the ERM sector by
Forrester Research. The firm excelled, according to the associated survey, with its
ability to operationally embed ERM into business operations and the technology
infrastructure.
Proti viti Inc.
GETTING HIRED
Accounting skills required
In its own verbiage, Protiviti is on the lookout for enthusiastic campus candidates
who are highly articulate, analytical and eager to apply their skills in a dynamic,
forward-moving environment. The firm recruits at more than 50 top-tier
universities across the country, including (but not limited to) Louisiana State
University, Notre Dame, Purdue, Texas A&M, University of Florida, University of
Georgia, University of Southern California, University of Texas, University of
Washington and Virginia Tech. Only applicants with a minimum 3.0 GPA and a
minimum of six accounting coursework hours will be considered for full-time
placement. Candidates also must possess an MBA, masters or undergraduate degree
in accounting, business administration, finance or management information systems.
For more information about working at Protiviti, job seekers should visit the careers
section of the firms web site, which includes Q&A-style profiles of current
employees and details on the summer internship program.
Three chances to impress
Applicants whose resumes rise to the top of the pile should expect three rounds of
interviewswith HR, practice area managers and office managing director, an
insider reports. One source claims that candidates who are prepared shouldnt have
much trouble with the first round: The HR manager usually asks the typical
behavior-based questions. But the next round, which is usually with the practice
area managers/directors, is when most of technical questions will be asked, the
source adds. One consultant, who was hired into the technology risk area, recalls a
couple of second-round interview questions: What kinds of technology risks does an
IT shop typically face? and How much do you know about Sarbanes-Oxley? The
final round, typically with a managing director, should be a very short interview,
sources say, and an insider provides a good tip for making a positive first impression:
Show your interests in consulting and Protiviti.
OUR SURVEY SAYS
Often better than the Big Four
According to insiders, Protivitis halls are filled with smart people, and they place
great emphasis on the word independent. The corporate culture is pretty much like
Proti viti Inc.
2006 Vault Inc. 828
that of Big Four accounting firms, says one source, adding that the managing
director used to be a partner at PwC. However, something that sets Protiviti apart
from the Big Fours is that people tend to be more relaxed here with no or very little
overtime, says one insider. A colleague agrees, noting that consultants at Protiviti
are required to put in less hours than Big Four counterparts.
Sources also claim that the pay at Protiviti is better than Big Four. But as a
consultant, dont expect to receive a bonus, says a staffer. Instead, They use
promotion to seniors to motivate consultants. And, sources say, the travel and
expense policy is relatively strict. What about time off? Insiders explain that there
are four weeks in total for vacation and paid time off (i.e., sick days are included in
the four weeks).
Proti viti Inc.
Right Management
1818 Market Street, 33rd Floor
Philadelphia, PA 19103-3614
Phone: (215) 988-1588
Fax: (215) 988-9112
www.right.com
LOCATIONS
Philadelphia, PA (HQ)
PRACTICE AREAS
Attract & Assess
Develop
Engage & Align
Transition
THE STATS
Employer Type: Subsidiary of
Manpower Inc.
Ticker Symbol: MAN (NYSE)
CEO: Owen Sullivan
UPPERS
Global organization with growing
name recognition
Rapidly growing the other side of
our business, Organizational
Development
DOWNERS
Little opportunity for advancement
Limited number of full-time
positions
EMPLOYMENT CONTACT
E-mail: contactus@right.com
2006 Vault Inc. 830
THE SCOOP
Hatchet man?
Layoffs have meant big business for Right Management. Founded in Philadelphia in
1980 by Frank Louchheim, Larry Evans, Robert Fish and Boardman Thompson,
Right exploded on the scene with the fallout of the dot-com bubble in late 2000.
Offering a mixture of career transition and organizational consulting, Right
Management has figured out how to play both sides of the fence, helping companies
with the distasteful job of reducing their workforces and aiding those same severed
employees in their quest for new employment. And when theres no hiring or firing
to be done, Right Management also steps in with advice on how management can eek
out the most from its employees. Right keeps its client list under wraps, perhaps not
wanting to become known as a hatchet man for restructuring firms, but it does claim
to serve 80 percent of the Fortune 500 companies. In January 2006, the firm worked
with Missouri retailer May Department Store to handle the layoffs of 850 employees
and, in July 2004, Right Management dealt with 350 unlucky workers in a highly
publicized Kimberly Clark decision to close its New England mill producing the
popular Huggies diapers.
Getting down to business
When handling a reduction in workforce, Right Management offers to coach
personnel managers, craft company communications and figure out the messy
logistics behind the scenes. The same goes for companies merging together. Its a
dirty job, no doubt, but for potential Right staffers who find conflict distasteful, the
firm also provides a whole host of less unseemly services, beginning with career
solutions for individuals in transition. As Right puts it, When one door closes,
another door opens. But, how do you cut a path through those hallways? How do you
find and then open the door that hides the best job for you? The answer to these
questions, according to Right, lies in its proprietary five-stage Zeroing-In Process
(ZIP). This is a step-by-step system that begins with making sure youre looking for
the right type of work and ends with managing the job that youve finally landed.
Right Management clients are also able to use Right-from-Home
SM
, a web-based tool
that provides resume advice, training, job leads and self-assessment tools.
For firms hanging on to their current employees, Right Management has an
organizational wing that advises management. AFebruary 2006 survey conducted by
Right found that two-thirds of employees do not understand their employers
business strategies and are not fully engaged in their jobs. In a follow-up
Right Management
Management-Issues article that same month, Right consultant Endre Lima-Lovas
said, Managements effective communication of the vision of the business to all
employees, and how it can be lived in their daily jobs, is one of the biggest
differentiators between engaged and disengaged work forces. Right Management
consultants tackle the issue of disengagement in different ways. Assessing
leadership skills among managers is a big part of their program: 360 Degree
Feedback is a system of surveys developed by the company in order for people-
managers to get a better sense of how theyre performing and how theyre being
perceived by bosses, peers and subordinates. Right also offers executive coaching
programs and consults on suitable employee rewards, the foremost aim being to
retain and encourage top talent.
Manpower
No discussion of Right Management can ignore the presence of its parent firm,
Manpower Inc. In January 2004, Right Management had to take a dose of its own
medicine when the multibillion dollar behemoth Manpower purchased the consulting
firm for $488 million. Manpower is a staffing and employment services company
with over 4,400 offices worldwide and a client list that exceeds 400,000 names. The
takeover wasnt exactly a smooth sailformer Right CEO Rich Pinola and partners
made a last ditch effort to buy out the firm themselves, but were unable to do so.
Manpower had its own consulting wing and after negotiation, it was successfully
merged into Right Management.
The Right Management deal was part of an epic sally as Manpower added 700 offices
to its worldwide roster since 2000, acquiring staffing and outsourcing companies
across the globe. Manpowers revenue has been increasing steadily throughout this
expansion, from $10 billion in 2001 to $16 billion in 2005. Manpower is now the
second-largest employment company in the world, and was named by Fortune
magazine as Americas most admired staffing company in 2005, the fourth year in a
row Manpower has won the award. Analysts have remained bullish on Manpower,
although a January 2006 Motley Fool article warned that the companys revenue may
not continue to grow at such a torrid pace. Its possible that Manpower was thinking
the same thing and, in a move to streamline its operations, the firm began an intense
rebranding campaign in February 2006. Of the 200 or so companies Manpower has
acquired or spawned through its rapid expansion, the firm has decided to whittle the
list of brand names it promotes to just five. Right Management is the fifth name on
that list.
Right Management
2006 Vault Inc. 832
A confident you
Right Management is perhaps best known among business analysts for its twice-
yearly report, the Career Confidence Index. The latest edition identified employees
in Norway, Japan and Denmark as feeling the most secure in their jobs these days.
Americans were more fearful, with 20 percent saying they may lose their jobs in the
coming year. Right conducts numerous other surveys and reports, all similarly
looking to uncover new tidbits about life in the job world. In April 2005, the firm
printed an interesting factoid: 56 percent of displaced employees want to switch to a
new line of work, but only 4 percent actually land new jobs in completely different
careers.
For further reading on Rights worldview, you dont have to go further than your
local bookstore. Right staffers publish regularly, with titles such as, The Unofficial
Guide to Landing a Job, published in 2005, and Networking for Job Search and
Career Success, published in 2004, both written by Michelle Tullier. Right
consultant Karen Steadman, PhD, has contributed research and case studies to Best
Practices in Leadership Development and Organization Change by Lou Carter,
David Ulrich and Marshall Goldsmith, in 2004, and The Transparency Edge: How
Credibility Can Make or Break You in Business, written in 2003 by Barbara and
Elizabeth Pagano and Stephen Lundin.
GETTING HIRED
Making it difficult
For a firm specializing in careers, its odd that Right Management does not have an
easily navigable and thorough system of advertising its own job opportunities. Right
is remarkably tight-lipped about how prospective applicants can make their way into
its ranks. If you want in, follow this insiders advice: We teach our candidates that
the best way to find a job is through networking. This is how I landed a job with
Right Management and all the associates I have interacted with or hired since 2000
have been through networking. So break out your address book and work your
connections, or send an e-mail to Right corporate headquarters at
contactus@right.com and attach your resume.
Right Management
OUR SURVEY SAYS
Peaks and valleys
Right Management consultants are in a unique position: When clients are doing
poorly and letting workers go, Rights business picks up. The firms services are on-
demand, sources tell us, as its not too often that companies plan on reducing their
staff months ahead of time. Heres how one consultant explains it: Because we
respond to industry needs, our business definitely has its peaks and valleys. When
most companies are reducing their workforces, our industry ramps up. Most of our
workforce is on an associate/consultant basis. Although we are paid on W2s, we
work on an as-needed basis. We have home offices we report to, however, we could
be working in the office one day, on a company site the next, and then traveling an
hour or two away the next day. Associates can have steady work, five days a week
for two months and then work two or three days over the next two months. The
source sums it up, saying, We are reactive and therefore the amount of work cannot
be predicted. These ups and downs translate into varying schedules. But one insider
is able to give a general overview and states that most of the hours are 8 a.m. to 5
p.m. There are times when associates work half-day schedules. On occasion, an
employer will ask for weekend delivery services or odd hours because of
manufacturing shifts.
Women and Manpower
According to Right Management staffers, females have a large presence at the firm.
A consultant remarks, The career transition field attracts a mostly female
workforce. And when mentioning the elephant in the roomthe acquisition of
Right Management by Manpowerthe reaction from Right staffers seems to be a
neutral one. One employee says, We are slowly integrating the two companies,
although we will maintain our own identity, while another claims, Now owned by
Manpower, [Right Management] is becoming the McDonalds of the career
management field.
Right Management
2006 Vault Inc. 834
The Segal Company
One Park Avenue
New York, NY 10016
Phone: (212) 251-5000
Fax: (212) 251-5490
www.segalco.com
www.segaladvisors.com
www.segalsibson.com
www.segalmgc.com
LOCATIONS
New York, NY (HQ)
Offices throughout the US and
Canada
PRACTICE AREAS
Human Capital Consulting
Investment Consulting
Retirement, Health, Compliance &
Communications Consulting
THE STATS
President & CEO: Joseph A. LoCicero
UPPERS
Team-focused
DOWNERS
Smaller than some of its
competitors
EMPLOYMENT CONTACT
www.segalco.com/careers/index.html
THE SCOOP
Pioneer pensioners
In 1939, when Martin E. Segal founded The Segal Company, employers were looking
for ways to entice workers to join or stay with a company. One of those ways was to
offer employees health insurance, which became increasingly important as the
country went to war and private industry experienced a labor shortage. Since getting
into the benefits game, The Segal Company has conceived, designed and introduced
many innovations that are now widely accepted, from the first supplemental benefits
programs to the first PPOsnetworks of preferred health care providers.
Employee to employer relations have always been at the core of Segals practice and,
luckily for the firm, its an issue that concerns many clients, and is not limited to the
private sector: corporations, nonprofits, local and state governments, and major
universities have called upon Segals services. Today, the employee-owned, New
York-based Segal has thousands of clients under advisement and plays a role in the
benefit plans of more than 8 million employees across the United States and Canada.
Growing divisions
Segal has adhered to its focus on human resources and benefit plans since its
inception, but competing in a niche market has not turned it into a boutique firm.
Rather, Segals consulting services have multiplied along with the complexity of the
issues; the company has created subsidiaries and divisions to tackle the increasing
variety of problems faced by employers. Segal Company is still a benefits consulting
firm that advises on the whole range of retirement and health benefits, and offers
advice on compensation, communications, paid time off and more.
In 1969, the company formed a subsidiary, Segal Advisors Inc.the investment
consulting affiliate of The Segal Company. Segal Advisors is registered with the
SEC as an investment adviser under the Investment Advisors Act of 1940, and offers
independent investment consulting services. Segal Advisors is one of the largest
investment consultants to retirement plan sponsors, boasting more than 220 clients
and nearly $70 billion in total assets under supervision. In 2004, it was ranked
among the top investment consulting firms by Nelson Informations 2004 Annual
Report of Pension Fund Consultants.
The Segal Company
2006 Vault Inc. 836
Enhancement augmentation
Fast forward to 2001, when Segal purchased Marjorie Gross & Company, a
consultancy that specializes in communications between employers and employees.
Rebranded as Segal/MGC Communications in January 2006, this group is the
national benefits, human resources and organizational communications practice of
The Segal Company. MGC eases the implementation of new benefit plans and looks
for ways to improve employee knowledge about 401(k)s, training programs and other
human resources-related issues. The companys self-stated goal is to come up with
creative solutions for firms that want to enhance employee perception,
understanding and appreciation. In May 2006, Segal/MGC Communications
received two honors from the 2006 Communicator Awards: the Award of Excellence
for its work with the Pennsylvania Public School Employees Retirement System
Health Options Program, and the Award of Distinction for its work on Time Warners
2006 Benefit Planner.
The final piece of Segal is Sibson Consultingoriginally founded in the 1960s as a
compensation consultancy. Sibson was bought by Segal from then-owner Nextera
Enterprises in January of 2002 for $16 million. Segal folded some of its own
resources into the company and today Sibson specializes in human capital consulting,
attempting to improve the performance, efficiency and motivation of its clients
employees. The group has three key practices: employee effectiveness and rewards,
leadership performance and rewards, and sales and marketing.
Publishing perspectives
Health care is a volatile industry, pensions are a hot-topic among workers and
legislators alike, and new human resource issues with disgruntled employees are
always popping up. Segal tries to keep up with this ever-changing environment by
accumulating research. Much of this knowledge-base is available to the public and
is distributed in many formsSegal is a prolific publisher. Capital Checkup is a
periodically released Segal brief that identifies key health care and pension
legislation from Washington, D.C. In addition, frequent compliance alerts are posted
by the company and highlight changes in benefit plans to which firms must adhere.
Segal also sponsors an electronic newsletter, Spotlight, which considers the
implications of new trends and innovations. The February 2006 issue concerned
President Bushs proposal for tax breaks on individual medical spending; and a
January 2006 article was headlined, National Health Spending Is Slowing: Are
Employers Out of the Woods Yet? Segal also publishes Perspectives, an electronic
magazine that covers both benefits and human capital issues. If thats not enough,
The Segal Company
there are plenty of surveys, presentations and speeches further rounding out Segals
intellectual capital.
Chain of command
In January 2006, Segal announced its long-planned succession for top management.
President and CEO Howard Fluhr became chairman, and Robert Krinsky, who had
been chairman became chairman emeritus. Joseph LoCicero, a Segal outsider and
former longtime CEO of Buck Consultants, was named the new president and CEO.
GETTING HIRED
Stepping up to Segal
If youre a persuasive communicator, a proactive information gatherer and a team
player, The Segal Company may be the place for you. At least thats what the firm
says in an outline of characteristics it looks for in potential staffers, available on its
web site. Segal adds that consultants at the small company are known for loyalty
many Segalites are boomerang employees, having returned to the firm after stints
elsewhere.
Also on the site, Segal hopefuls can find job listings, organized by level of
experience, type of position and location. If a job strikes your interest, you can e-
mail the firm directly with a resume and cover letter. Openings at Sibson get their
own category on the sitethe firm describes openings for associates, who should
come armed with at least a BAin a quantitative or research field such as economics,
finance, mathematics, psychology, computer science or engineering, along with up to
three years of relevant business experience. An insider at Segal describes three
rounds of interviews, covering very basic analytical and situational questions.
Students seeking internships are invited to send their resume, along with a letter of
interest stating their preferred location and the type of experience theyre looking for,
to intresumes@segalco.com.
The Segal Company
2006 Vault Inc. 838
One Canal Park
Cambridge, MA 02141
Phone: (617) 231-4500
Fax: (617) 576-2751
www.simon-kucher.com
LOCATIONS
Boston, MA (US HQ)
Bonn (World HQ)
San Francisco, CA
Frankfurt
London
Milan
Munich
Paris
Tokyo
Warsaw
Zurich
PRACTICE AREAS
Marketing & Sales Optimization
Marketing Strategy
Price Management
Setting Prices
THE STATS
Chairman & CEO: Hermann Simon, PhD
2006 Employees: 300
2005 Employees: 261
UPPERS
Great opportunities for advancement
and rotation to other international
offices
Entrepreneurial environment
We establish and maintain close
relationships with our clients without
having to be on-site all the time
International flavor of the office and
the work
DOWNERS
Conflict between undergrads/grads
in terms of salaries, promotions
Small firm that is growing; always
looking for extra hands
We end up being heavily involved in
market research
Breadth of work is not as wide as
other firms
EMPLOYMENT CONTACT
Attn: Recruiting Team
One Canal Park
Cambridge, MA 02141
E-mail: recruit-usa@simon-kucher.com THE BUZZ
Good in marketing
Pricing specialists
Number crunchers
Dont pay well
THE SCOOP
Putting a price on products
Pricing, strategy and marketingthose are the distinctive pillars of Simon Kucher &
Partners, a German-born consultancy with 11 offices in eight countries worldwide.
In fact, Simon Kucher (or SKP, for short) insists that its not a general management
consulting company. Rather, SKP says, it covers the whole consulting value chain
through its pricing, strategy and marketing-oriented approach. In addition to
developing business and marketing strategies for clients, SKP consultants also help
implement and monitor these strategies. With a reputation as a leading pricing
advisor, SKP can afford to be choosyin fact, the firm says it declines projects for
which it doesnt have the necessary competencies.
In 1985, Professor Hermann Simon and two of his former PhD students set up shop
as a consultancy with a quantitative edge. The firms empirical approach fit a niche
among the firms international clientele. SKPs client roster includes more than 80
of the Global Fortune 500, boasting names such as Johnson & Johnson, Microsoft,
Goldman Sachs, DuPont and Coca-Cola, to name a few. The company has
experience in an array of industries, including health care, consumer products,
software, financial services, telecom, industrial, automotive, chemicals, energy,
logistics, media and services. While SKP doesnt advertise its engagements, past
projects have included helping to set pricing for the Mercedes Benz A Class,
preparing electricity suppliers for market liberalization and pricing many of the
worlds top-10 pharmaceutical products.
By leaps und bounds
SKP has lofty ambitions for growththe firm says its goal is to continue its pace of
the last 10 years and grow at 20 percent per year. SKP has adopted a four-pronged
strategy in pursuit of this growth: increasing the depth of existing client relationships;
drawing new clients; expanding into new industries; and opening new offices around
the world in both emerging and developing markets. Though the private company
doesnt release earnings, its head count certainly attests to an ambitious, steady
expansionSKP had just three staffers in 1985, 134 in 2000 and more than 260
employees in 2005.
The firm also plans international expansion, with offices set to open in Madrid and
Shanghai in the near future. Other SKP offices are located in Bonn, Boston,
Frankfurt, London, Munich, Paris, Milan, San Francisco, Tokyo, Warsaw and Zurich.
2006 Vault Inc. 840
SKP operates a two-phase strategy to global expansion, opening offices in highly
industrialized countries, as well as emerging markets, as the firm gains market share.
SKP is proud of its staffers linguistic diversity; though English is its official
corporate language, SKP associates are a diverse, international bunch representing
numerous different languages. In fact, SKP says, It is not uncommon for American,
Japanese, British, French and German consultants to work together in one office.
Simon says
The firm is led by Co-Founder Hermann Simon, PhD, who has served as CEO since
giving up his chair of marketing at Johannes Gutenberg University in Mainz,
Germany. A marketing guru with visiting assignments at Harvard, MIT, Stanford,
Keio-University (Tokyo), INSEAD (Paris) and London Business School under his
belt, Simon also serves as a board member of several corporations and charitable
foundations. If that wasnt enough, Simons books, including Hidden Champions:
Lessons from 500 of the Worlds Best Unknown Companies and Power Pricing: How
Managing Price Transforms the Bottom Line, have been published in 15 languages.
Profit matters
Simons latest book, Manage for Profit, Not for Market Share, published in May
2006, advises managers on how to strike a better balance between profit increases
and the pursuit of high market share. Along with co-authors Frank F. Bilstein and
Frank Luby, Simon warns of the dual cultural pitfalls of acquiescence and aggression.
The authors use their case experience to define strategies managers can use to
differentiate mature products, raise prices effectively, time promotional activities
properly and improve understanding of consumer preferences.
The book reflects SKPs philosophy that price is the primary profit determinant in
the short term. The firm argues, Due to a lack of systematic and disciplined
analysis, pricing is also the area where profits are most often left on the table. The
firms approach to pricing involves internal data analysis, benchmarking, expert
judgment, primary research and more, to offer both recommendations and
contingency plans to be implemented if market conditions shift.
Diversity, development, freedom
When it comes to its own employees, however, SKP knows that retention is about
more than just salary and perks. To keep consultants happy, the firm has adopted what
it calls a you first approach. Whats most important in employee retention, SKP
says, are things like diversity of projects, opportunities for personal development, a
quality continuing education program and individual freedom. Each consultant
participates in a review process twice a year, covering personal goals, project work
and contribution to company development. SKP notes that while its expectations for
consultants are ambitious, they are not unrealizable, and are customized to fit each
persons potential and interests. These high expectations mean rapid progress for
those who succeedmore experienced consultants can make it to partner relatively
quickly, the firm says.
Steps to training
SKP consultants are expected to take on lots of responsibility early on. All new
employees participate in the firms STEPS (Strategic Training for Employee
Professional Success) training course, where they work on simulated consulting
projects in small groups and attend short lectures about the firms divisions and
internal processes. All employees are regularly invited to lectures by internal and
external speakers, and internal knowledge is shared through regular informal
presentations and a corporate intranet.
Busting out the beer
While all of this sounds like a lot of corporate hand-holding, a key element of the
you first approach is SKPs commitment to freedom. The firm claims that strict
rules and regulations suppress the creativity and out-of-the-box thinking that
consulting requires, and instead encourages flexibility through its small,
decentralized divisions. SKP consultants also enjoy unwinding together at events
such as Beerbusts, described as a monthly informal gathering where employees
meet for a beer in the foyer (see, working for a German firm has its advantages!).
The firm adds that it also holds team dinners and summer outings to various retreats
to enhance firm unity.
GETTING HIRED
Knack for numbers
Do you have a knack for structured analytical work? this is the question SKP asks
right off the bat to prospective consultants. The firms hiring process is pretty
standard for the industry, but its true that the firm is on the prowl for good test-takers
with superior quantitative skills. There is a 15-minute math test, and if you want to
study up, insiders report that it is similar to the GMAT. The firm conducts on-campus
2006 Vault Inc. 842
recruiting for undergrads and graduate students from top universitiesHarvard,
Yale, Brown, MIT, Amherst, Williams, Cornell and Stanford, as well as business
programs like Fuqua, Wharton and Sloan. The firm adds that it also makes an effort
to cast a wider national net for applicants from top-50 schools.
New hires report that there is a phone interview (sometimes two) with a case study
and basic resume questions. This is followed up with a whole day of interviewing,
split between personality fit type sessions, as well as case studies. The scoop is
that the day is stressful, but not too bad. Interviews will be conducted by all levels
of staffers, from partners on down. Heres an example of a recent case study to give
you some idea of what youre in for: You have a new drug for disease X. Recently,
this drug received a new indication for disease Y. How would you compete with
existing competitors in the market for disease Yhead-to-head competition or going
for overall market share? In formulating your answers, keep in mind that Simon
Kuchers forte is pricing.
OUR SURVEY SAYS
Family and friends
The people, the people, the people. SKP employees report being surrounded by a sea
of friends disguised as co-workers. Its no surprise then that the word family
comes up often when SKPers describe their firms culture. One staffer describes his
colleagues as tons of fun and super intelligent, while another says that employees
are honest, forthright and well-intentioned. [Theyre] willing to say good job and
Im sorry, lets put it behind us. The warm culture carries over to the lunchroom,
too: A consultant says, Many of us (consultants and partners alike) crowd a
conference room to eat lunch together every day, while another affirms that
statement and adds, We also hang out often on weekends. So, SKPers are a tight
bunch, hanging out on and off the job, enjoying both the work and a little food-based
camaraderie. Looking for the catch? Heres one complaint from a vet: The worst
thing I can say is that we have so many office functions that I find myself eating too
much good food and drinking too much beer.
Fahrvergngen!
Staffers also frequently comment on the German roots of SKP, and its effect on firm
culture. American consultants report that the German influence is felt statesideso
maybe brush up on a little colloquial German if you want to impress the home-basers.
One source says that the firms European roots are reflected in the candor of its
management and a tough love-type management style. A colleague praises the
effect of the companys nationality by way of the office dynamic, saying SKPs
culture scores an 11 out of 10. The German roots of the company have an effect on
the culture of the company. And another bemused consultant tells us that one of the
biggest perks at SKP is humorous Germans (who are on exchange to our office for
a few months).
Points for transparency
Atransparent set of in-office policies and a lack of power-tripping bosses gather most
of the credit for maintaining this open and friendly culture. Avoluble rookie explains
it this way, I truly feel that both SKP as a firm and the people of SKP really value
and care about the employees. People genuinely want to get to know you, teach you
and help you perform. The transparent corporate culture eliminates uncertainties and
mistrust, and also encourages employees to express their opinions about what needs
to be changed. I can walk into the managing director or any partners office to ask
them just about anything. Another newbie says, There is a really nice small
company feel to the Boston office. There are very few of the unwritten rules that
stifle some other workplaces. And partners are very flexible and committed to the
younger associates. Young SKPers are thrilled with this setup and seem empowered
by this nurturing and open atmosphere.
Across the board, marks are high for a system where hierarchy does not mean being
lorded over. One consultant says, SKP has a very collegial atmosphere. Influence
over decision-making during engagements is almost entirely a function of a
consultants ability to justify his point. People do not pull rank hereit would be
frowned upon. And a co-worker more than satisfied with the amount of
responsibility allotted to new consultants explains that supervisors are great in
keeping junior-level consultants involvedwe do not just do photocopying or phone
calling.
Consensused to death
Groupthink has its detractors and if all this warmth, openness and German
democracy is making you wary, you may want to heed this one warning from an SKP
top-dog. He says, Because we are a small, close-knit group of very smart people,
we sometimes spend too much time making sure everyone has their say in meetings
when consensus was reached within the first five minutes. We are tolerant of the
importance of everyone putting in their two cents, even when weve gone beyond
gathering differences of opinion, have already reached an action plan and could be
2006 Vault Inc. 844
moving on to other things. However, even this source moderates his criticism and
firmly places his complaint in the bin of minor gripes, and adds, If this is the most
serious problem about this firm, then I am not quite sure why it needs to be
mentioned.
Life is good
SKPers unanimously agree that life is sweet. And whos to argue, with many
employees averaging less than 50 hours a week? The incentive for a strong work/life
balance repeatedly comes from up on high. Says one consultant, The partners of the
Boston office have a strong commitment to work/life balance as a distinctive attribute
of our culture. It has its own item in the evaluation system. I work from 9 a.m. to 6:30
p.m. most days so I can go home and spend time with my wife and son. Of course
there are times when you have to work longer hours. But looking at my hours for the
last six months, on average I billed nine hours per day but the median was eight. A
co-worker corroborates, stating, Our firm has the best work/life balance of any firm
I know. All of my friends burned out working 80-plus hours per week, whereas most
consultants here work 45 to 50 hours a week. They make a great effort to grant
vacation time and are flexible with scheduling around family commitments. Again,
a big reason for this is managementmany employees report that engagements are
run very effectively. One junior worker reports that if staffers are logging long hours,
it is read as a sign that a manger has not adequately planned out a projects
timeline. If youre skeptical that such level-headedness exists in the consulting biz
and fear working until the wee hours of the night, here is one last insiders opinion
to allay your skepticism: My firm is the only one I have ever heard of where project
managers or partners will come up to associates and say, Go home.
Homebodies
If Magellan was your childhood hero and your favorite read is an airline magazine,
you will not be happy working for SKP. Travel is minimal, and employees are
pleased as punch to leave their suitcases in the closet for extended periods of time.
According to one insider, We do very little work on-site. For the most part, travel
just includes a kickoff meeting, an interim presentation and a final presentation.
During a six-week project, thats one to two days every two weeks, but during a
three-month project, its only one to two days away every month. A fellow
consultant says that time away from home is just enough to be novel and fun, but
not enough to be tiring. And for those based in America, several Bostonites confirm
that many business trips can be made without packing a toothbrush. A source says,
Most of my trips are day trips, depending on the client, so often I can come home
the same day and sleep in my own bed, which is important to me. But be advised
that requirements may be different for staffers based in Europeone economics
expert tells us there is a minimal amount of travel in the Boston office, which
contrasts sharply with some of the travel requirements in other offices.
A room of ones own (hopefully)
Consequently, SKPers spend a lot of time back at home base, so its fortunate that
their offices get above-average marks. The Cambridge location gets points for being
easily accessible to public transportation. But as one consultant groans, It is
accessible to transit, however the building is not in the most exciting area of the city.
Despite this, staffers are thrilled to not be stuck in cubicle landmost SKP
employees have their own offices. A second-year staffer gives his take on the
architecture and explains, Its a nice space [with] lots of windows. Until a recent
space crunch, everyone but the most inexperienced hires (less than one year out of
college) had their own offices. I expect that the space crunch will soon be resolved,
as we are looking to expand office space. Once this new space comes on line, the
practice of giving most people their own offices should resume.
When youre ready
Simon Kucher does not enforce an up-or-out policy; in fact, a partner at the firm
simply states, We regard an up-or-out policy as silly and wasteful. There may be
a specific reason behind his succinct appraisal, according to one senior manager who
says, We are growing so much that we dont need the up-or-out and promotions are
frequent. Anew hire agrees: As the firm is growing, I believe there is more room
for promotion than at other firms. Also, as it is based on performance, there is
opportunity to be promoted as early as six months if you are a strong performer.
Lastly, SKP is not into the up-or-out mantra, they value in-house training and SKP-
specific experience, and would rather you stay if you are performing well.
The consensus is that promotions can happen very quicklyand this means all the
way to the top. One source reports, If you are an outperformer you can make your
way to partnership within five to six years. Employees are also pleased with the
limited amount of hoop-jumping involved in the process; a transparent set of
guidelines is set by the company to determine who should be bumped up the ladder.
Says one consultant, There is limited bureaucracy and hierarchy. If you perform,
you are given responsibilities and advanced to the next level.
2006 Vault Inc. 846
Sometimes less is more
There are some grumblings about salary at Simon Kucher, which is reportedly lower
compensation than typical consulting firms, but sources are quick to point out that
their quality of life more than makes up for any lack of pay. Ajunior employee tells
us, Compensation is not stellar, but on an hourly basis, it blows away other
consulting firms. Another says that what we lack in compensation we make up for
in the hours we work. Bonuses are also acknowledged to be on the small side.
According to one consultant, Compensation is relatively low compared to other
firms, and the bonus amounts are much, much lower. Theres nothing sneaky about
this low-balling though; SKP is very up-front with its bonus situation and even
publishes the specific amounts on its web site.
Hands on only (mostly)
Formal training is not emphasized at SKP. This doesnt generate many complaints
from staffers, thoughfrom top to bottom the majority of SKPers seem to believe
firmly that the best education comes from being on the job. There are two formalized
programs, and they take place at regular intervals, so new hires are sometimes on
their own for a bit. In the words of one rookie, training is mostly unofficial. On my
first day, I was pretty much thrown into assignments, but its actually a good way to
learn. We do have a formal training program called STEPS held in the Bonn office,
but thats only held several times a year, so some people (like me) have to work for
a few months before attending. In addition, the firm notes, all U.S. hires go through
a week-long training program in Boston in September. Another first-year employee
says that informal, on-the-job training is instrumental and it is the consultants
responsibility to ask questions and seek help when needed.
With comments from senior managers like, Im not sure how effective formal
training is, and Most of the learning takes place on the job: You cant really
understand all the intricate methodologies without applying them in a real-life
situation, it doesnt look like the system will change any time soon. However, it
works in SKPs favor that despite this informal system, someone is still held
responsible for workers performance. Explains one higher-up, Senior-level
consultants are evaluated on their ability to train new hires and to manage them. The
environment stresses career and professional development for all.
Field trip
There is no single topic that gets Simon Kucher employees more juiced than the
annual Christmas party, which gets unanimously high marks as the perk to end all
perks. Its a ton of fun, says one associate. Heres a description of the lavish affair:
The company holiday party, held each December at what is probably one of the
nicest hotels in Europe (the state guest house of Germany), which is perched high on
a hill and overlooks the Rhine. Absolutely spectacular. Apparently all expenses are
taken care ofand the free invite for significant others has employees dancing in
their lederhosen. One consultant exclaims, Party in Germany!!! All expenses, from
flights to hotels to party, to even cabs are covered for associates and spouses. But
this exciting excursion doesnt stop at the party itself, extending into an all-weekend
affair: According to one recent hire, SKP associates are treated to a fun weekend
with walking tours, nice dinners, which is then followed up by the holiday party at
the state guest house that lasts till 6 a.m. the next morning. Insiders are also
pleased with other offerings, including a company car, free parking in the garage, free
sodas, the annual World Meeting and the open opportunity to transfer to offices
all over the world for three months to three years.
Women and glass ceilings
There are very few women in top management, bluntly states one SKP female.
Indeed, Simon Kucher does not seem to have a great track record in hiring and/or
promoting women to high-level positions. But there are two important things to note.
First, management is very aware of the situation. One senior partner states, In one
sense, personnel decisions are truly gender-blind. In another, all the partners are
keenly aware that it is imperative we develop and retain more women for senior
ranks. Second, if youre looking to work in the Boston office, things are already
looking better. Aconsultant with the inside scoop says, Today in Boston, two of the
three directors are women and more than 50 percent of hires over the past year have
been women. A co-worker also gives that office some props, saying, The Boston
office is light-years ahead of the European offices in terms of womens hiring,
promotion and flexibility with family.
Model U.N.
This difference in U.S. hiring tendencies was noted by many SKPersand many
pointed out that the Boston office also had greater ethnic diversity than other
locations. One consultant pointedly remarks, The U.S. office is way ahead of the
rest of the firm, which is still in the Stone Age in terms of diversity. Another notes
that the Boston office has recent immigrants from Puerto Rico, India, Chile,
Bulgaria, Spain and Germany, while another muses, I think Caucasians may
actually be a minority now in the U.S. office.
2006 Vault Inc. 848
GLBT applicants will be happy to hear that SKP consultants agree that their firm is
tolerant to those of different sexual orientations. The firm may not have a rainbow
flag outside its door, but an insider says, We have several consultants who are gay,
lesbian or bisexual. And heres a perk: SKP in Boston now provides benefits to
same-sex married couples, now that same-sex marriage is legal in Massachusetts.
Supportive initiatives
SKP is officially devoted to supporting community service efforts, and proves it by
setting aside two days per year to various projects. As one partner explains, We
sponsor two days a year where employees provide a full day of community service.
The event is chosen by employees. Aconsultant reports, We volunteer as an office
with People Making a Difference in the Boston area, which involves us taking a
workday to volunteer in the community. Other receptacles for SKP humanitarian
efforts are local parks, food drives, holiday collections and soup kitchens, and the
firm matched donations to Hurricane Katrina and tsunami relief efforts. The firm is
also supportive of individuals who participate in and promote charitable causes on
their own, adds a colleague. As such, individual employees seem driven to lend a
hand to local charities: One associate reports that people send out e-mails for
volunteering on the weekend and donations. Future SKP community efforts seem
promising, as one eager associate predicts that initiatives will increase as our office
grows.
6000 SW Meadows Road
Suite 300
Lake Oswego, OR 97035
Phone: (503) 303-1200
Fax: (503) 303-1224
www.stockamp.com
LOCATIONS
Lake Oswego, OR (HQ)
20 locations nationwide
PRACTICE AREAS
Patient Progression
Revenue Cycle Solution
Surgical Care Coordination
THE STATS
President & CEO: Dale Stockamp
2006 Employees: 385
2005 Employees: 350
UPPERS
Interacting regularly with client
CEOs, CFOs, CMOs and COOs
New employees have a one-to-one
relationship with their supervisor
High levels of responsibility
Small firm mentality that is very
willing to experiment with new
service ideas
DOWNERS
Limitations of software and tools to
support functional advancements
Limited opportunities to move
laterally within the firm if you decide
you dont want to travel full time
Repetitiveness in job function
Poor work/life balance due to
excessive travel
EMPLOYMENT CONTACT
www.stockamp.com/index.jsp?
pageID=careers
E-mail: career_info@stockamp.com
2006 Vault Inc. 850
THE SCOOP
Hospital helper
Stockamp & Associates, a medium-sized health care consultancy sure gets around,
working with hospitals all across the nation, mainly not-for-profit health centers. Its
clients include the University of Alabama Health System, the Childrens Memorial
Hospital of Chicago, New York Presbyterian, the Albert Einstein Medical Center of
Philadelphia and Houstons Methodist Hospital. Founded in 1990, the firm does not
have much turnover in its engagements; Stockamp has worked with more than 80
clients, totaling more than 100 engagements, since its inception. But clients are
apparently satisfied with the work the consulting firm has done. Hospitals are quite
forthcoming in their praise of this Oregon-based company that puts quality over
quantity. Much of this praise is centered around improved care for patients, but
financial results are also mentioned. Heres a quote from a New York-Presbyterian
director regarding the hospitals 2006 contract with the firm: The $50 million a year
or so that we will be seeing from the Stockamp projects during the next four or five
years certainly makes a big dentthats an extra $250 million towards the capital
campaign.
Stockamp solutions
Stockamp divides its practice into three service lines. The first is the firms Revenue
Cycle solution which focuses on continuous improvement of health care clients
financial performance and patient services. The solution includes redesign and
integration of billing, collection and account resolution processes; streamlining of
referral, scheduling and reservation processes; implementation of proprietary
software tools; improvement of patient information gathering and management; and
teamwork with health care staff to ease the adoption of new processes. The firm
claims these processes can result in reductions in write-offs of up to 25 percent,
reductions in accounts receivable of 15 to 30 percent, increased cash flow of up to
$100 million over five years, and increased patient satisfaction with the billing
process.
Patient progression
Stockamps Patient Progression
solution maximizes every aspect of patient flow to

assure appropriate care at the appropriate time for each patient. The approach unites
efforts across many departments that impact patient flow, including areas such as
case management, bed turnaround, housekeeping, transportation and care
coordination. Similar to the Revenue Cycle approach, consultants are very hands on,
working one-on-one with front-line staff to achieve results. Consultants spend a
significant amount of time on the patient care units training and problem solving with
nurses, case managers, housekeeping staff, transporters and other hospital staff.
Using this approach, Stockamp claims hospitals can increase the amount of available
beds in from 5 to 20 percent, improve quality of care, divert fewer patients and
significantly increase their net revenue.
Making progress
Stockamps third, and newest service line, is Surgical Care Coordination. This
solution comprehensively redesigns and integrates every aspect of surgical care to
optimize the productivity and value hospitals receive from their surgical services.
Stockamps Surgical Care Coordination solution integrates hospitals revenue cycle,
patient flow and supply management skills to produce major gains in operating room
profitability, operations, quality of both care and service, and patient and physician
satisfaction. Through this solution, Stockamp aims to help hospitals better capture
available service demand, further streamline patient flow, optimize their operations
and maximize profitability.
Pittsburgh Steeler endorsement
Stockamp keeps a relatively low profile. The firm is not afraid to share its success
stories with a variety of hospitals, but does not seek out the press or industry
newsletters to publicize its findings. However, the firm did get a nice bit of PR in
November 2004, when CNBC choose to highlight the company in its business show,
Terry Bradshaws Pick of the Week. The ex-Steelers quarterback chose to highlight
Stockamp in his weekly broadcast of outstanding businesses. The clip focused on the
firms work with Stanford Hospital & Clinics. On air, CEO Martha Marsh lauded
Stockamp lavishly, saying the firm delivered $8 million to our bottom-line every
year and improved our balance sheet by $40 million, which is double what we
expected. Also, senior management from Lucile Packard Childrens Hospital,
another Bay-area hospital, gave similar praise: Both hospitals cited the Patient
Progression and Revenue Cycle improvement tools as important factors in their
satisfaction.
Continual charity
Stockamp has an admirable track record as a charitable business. The firm claims to
couple each and every engagement with some charity work in its clients community.
In June 2005, the firm made Oregonian headlines when it donated money for new
2006 Vault Inc. 852
playground equipment; the year before, Stockamp helped paint a mural for the towns
schoolchildren. The school needed some good newsbudget cuts had hurt the
Humboldt communitys ability to improve their schools.
As part of an engagement in New Mexico, Stockamp visited a local Realizing
Confidence & Independence center, a nonprofit system of community-based services
for the disabled. In September 2005, Stockamp helped the company organize the
backlog of disorganized files that had been accumulating, and then 11 consultants
traveled to the hardware store and bought all the supplies necessary to paint the
companys disabled adult center. The staffers then went to work painting the 2,000
square feet of program space. Future Stockamp staffers, breathe easydespite
evidence to the contrary, painting prowess is not a requirement for the job.
GETTING HIRED
Ah, the Internet
Stockamp is not secretive about its hiring process, and a tremendous amount of
information can be found by simply browsing the web site. In the section dedicated
to careers, there are tips there for rookies and veterans, alike, as well as some
requirements for getting your foot in the door (such as a 3.0 GPA or higher for
undergrads). There is also mention of Stockamps interesting approach to a final
interview: a site visit to an actual engagement.
Picky, picky
Although Stockamp is focused solely on health care, dont think you have to be a life
sciences expert to join. It wouldnt hurt, of course, but Stockamp is also looking for
computer science majors to improve its proprietary software, and the firm
emphasizes interpersonal skills and likes candidates who show a balance of skills.
One things for sure: The company is picky about who it hires. An insider says of his
firm, Were extremely selective with a three-stage interview process that requires
the buy-in of eight to 10 employees/consultants before an offer is extended. Also,
keep in mind that Stockamp is looking for people who really want to be a part of the
health care business (regardless of previous experience in this area), and at Stockamp
specifically. One manager says, Interest is critical for us, and candidates must be
able to articulate why they are interested in joining our firm.
If you are interested and still in school, things may be easy for you, as Stockamp
recruiters can be found at a large number of prominent institutions. There are too
many colleges to comprehensively list, but a good sampling includes Duke,
University of North Carolina, Vanderbilt, University of Texas, Penn State, University
of Wisconsin, Howard, Georgia Tech, Northwestern, UC San Diego and the
University of Colorado.
OUR SURVEY SAYS
Camp Stockamp
Its a well worn clich, but several Stockamp consultants cant resist referring to their
firms work hard, play hard attitude toward life. The company culture encourages
this approach and, despite reports that Stockamp is results-driven with ambitious
staffers, employees report that their co-workers create a friendly, helpful atmosphere
for all. One long-time staffer says, Stockamps culture is what really sets it apart. I
came from one of the Big Five consultancies that also had a very strong culture, but
Stockamp is much more collaborative and has a family feel to it. Another insider
backs up this claim, stating, Stockamp has an incredible corporate culture. Being a
small firm, everyone knows each other, there is minimal competition and its easy to
make your mark. The owners truly care about work/life balance, and listen to the
employees when opinions are expressed. Openness, a flat hierarchy and clear
corporate ideals are also mentioned as plusses, but the staffers give themselves a lot
of credit for the creating a positive environment. One consultant says Stockamp has
a very strong culture due to size of the company (less than 500); strong allegiance
to our corporate mission; leadership that truly leads by our guiding principles; and
phenomenal quality people you can depend on to help you succeed and drive results.
Acolleague puts it this way: I am lucky to work with smart, talented, funny people
who are driven to do good work. The company supports this collaborative, positive
environment.
Im a ramblin man
Theres no escaping ittravel dominates the lives of Stockamp staffers. The culture,
the work/life balance, the perks, everything Stockampian is affected by four days a
week spent away from home. No one is complaining though; Stockamp consultants
know that being on-site and hands-on is what has made the firm successful. Heres a
statement from one consultant that sums up the sentiments of most insiders: We
travel full time. In order to have the impact that we do on the organizations where
2006 Vault Inc. 854
we work, we have to be on-site. Occasionally, we will have a project in one of our
approved living locations, and many of the people who live in that location would
probably be staffed there. I know that in order to do the work I love, I have to travel,
so I accept it as part of my life and I take full advantage of the benefits. We are never
required to travel on a Sunday. Project length is variable, but 10-month
engagements, with consultants expected to be on-site during most of the week are
standard. Says one associate, We live in approved cities throughout the U.S. and
work from home when we are not on-site with our clients. In fact, many staffers
report not having stepped foot in their office for several years. This ability to work
at home is one big plus, amongst others, that keeps travel-weary employees from
burning out.
Little things help
Stockamp consultants may be constantly on the road, but they know what theyve
signed up for, and they seem satisfied with the situation. Insiders claim to be able to
squeeze an acceptable mix of work/life balance in spite of their suitcase-in-hand
lifestyle. Says one consultant, The firm fully expects you to work hard during the
week, but is sensitive to having time to focus on things that are important to an
individual like working out, reading and/or spending time with friends. Fridays are
days to work at home rather than at the client site, and it is expected that you use
Fridays to get personal errands completed in addition to your work that otherwise
could not be completed on a weekend. The source adds that on a project,
management is very conscience of the work hours being put in by the project team
members and makes sure that when deadlines/milestones are met, that the pace slows
down appropriately to give team members a breather.
Acolleague agrees, explaining that Stockamp has been very proactive working with
management and front-line consultants to ensure work and life balance is achieved.
The company has initiated several initiatives during past year to specifically address
the challenging lifestyle we live. And consultants seem happy with several
company initiatives that make things easier on them. A manager explains, While
our job entails travel 50-plus weeks a year, we have a lot of perks that help us
maintain work/life balance. Our projects are 10 months in the same location, so we
have apartments and cars on-site. We travel Monday mornings and Thursday
eveningsgone three nights, home four nights. We get per diems and keep all of our
airline mileage and Amex points. We getand are encouraged to usefive or more
weeks of vacation per year (depending on staff level).
WAH = work at home
The company WAH (work-at-home) program gets especially high praise from
employees. Says one staffer, Stockamp does an excellent job at trying to make the
demands of a traveling consulting lifestyle as easy as possible. We have a Friday
work at home program, more paid holidays than the average firm and, most
importantly, a management that cares about the well-being of its employees. Aco-
worker echoes his compatriots pro-Stockampian sentiments: Fridays are spent at
home, weekend work isnt required, and project teams really focus on quality of life,
even when you are on-site. Additionally, extra holidays and later Monday
flights/earlier Thursday flights are used to improve company quality of living. The
owners are very willing to listen to any ideas anyone has about how to make
additional improvements in quality of life, such as the recently implemented week of
work-at-home each project.
Hourly ho-hum
For mere mortals, the hours may be grueling, but this is the consultant biz;
Stockampers dont see their days as being particularly rough, logging 55 to 60 hours
per week. But insiders say that this number is always changing over the course of an
engagement. According to a manager, Since we are only on-site for a limited
number of days, we have to fit everything into that time, so we do have to work long
hours at times. Again, this fluctuates with the project life cycle. One associate
further explains that work hours vary dramatically during the course of a project.
The first three to four months are extremely busy, but associates are rewarded with
more free time toward the end of the project.
Are you up, or are you out?
Stockamp sources have differing opinions regarding the strictness of their companys
up-or-out policy. The consensus is that the firm keeps a tight watch on employees to
make sure they are retainedbut that some hires are forced to find work elsewhere.
One senior manager pegs Stockamps promotion policy as 80 percent up-or-out with
advancement every two to three years, on average. An insider provides one reason
why the firm may have an up-or-out policy but not lean on it too much. He says,
There isnt a strict up-or-out policy. The vast majority of the company is motivated
to advance in the company so this is not a big issue.
The most effective workers are rewarded and the path to the top (though it may be
long) is made plain for all to see. One manager reports that the typical time-in-grade
is two-and-a-half to three years at each level, however we do reward our strong
2006 Vault Inc. 856
performers and they will be promoted early if their performance supports it. There is
definitely the ability to advance, and associates know that they have the opportunity
at ownership one day. Another consultant echoes his fellow workers thoughts, but
also notes that the competition for senior positions is not necessarily mano a mano,
While people average three years time-in-grade in each staff class, we have
consistently promoted people in two years, and one-and-a-half years is not unheard
of. You are not competing against your peers but rather are measured against a core
set of competencies. It has a very positive cultural effect in that it is not a competitive
environment among co-workers.
One other item worth mentioning: If you can do the work but cant hack the lifestyle,
it used to be that your days were numbered. Stockamp may still not have a ton of
wiggle room for such staffers, but one consultant mentions that if you dont want to
go up, there is opportunity to discuss that and make it work, yet its not the typical
career path. Another remarks, Field positions are pretty much up-or-out, but the
company has recently been developing alternative career paths for those who need
more time at home.
Rewards for loyalty
Stockamp receives average reviews on the size of its paychecks. Sources report not
being blown away by their initial offeryet general opinion seems to be that when
consultants stick around, their compensation jumps up nicely. One employee, with
eight years at the firm says, You can double what you make every four years here
thats a pretty steep curve and has proven sustainable. Another states, I believe that
our compensation improves the longer your tenure with Stockamp. Stockamp
rewards loyalty. And what makes veteran staffers especially happy are the extra
benefits that kick in after several years of service; the companys profit-sharing
program gets high marks, and one consultant says his profit sharing adds up to 10
percent of base salary plus bonus annually. The source adds that this benefit is
amazing compared to other firms. Stockamp also includes a contribution to
employees retirement plans as part of its compensation package.
A mix of training types
A combination of mentoring, on-the-job training and official, more formal training
keeps Stockampers educated and on track, and employees seem generally happy with
the firms efforts in this area. A long-tenured staffer feels that training is a good
balance of official training (through courses conducted by our companys training
department) and unofficial training (conducted on-the-job by the project teams
themselves). The unofficial training conducted by the project teams at the project site
is well thought out by the teams themselves and is driven by the project team
members interests and needs. Another insider provides more specifics, saying,
Stockamp is dedicated to training its associates. It offers a four-week training course
for new associates, ongoing training throughout your career and just-in-time training
for new promotions. New hires are also assigned a supervisor who monitors their
development, were told. These mentors provide a support system to associates on
their first engagements.
Rookies seem well taken care ofif there is one complaint from staffers, its that
those higher up the ladder receive less attention. But apparently, the firm is listening
to its employees; several consultants report that there are programs in the works to
address this. A senior staffer explains, Stockamp has recently implemented an
Executive Development Program, focusing on the development of managers above.
While this program is still in its infancy, I believe this move is a step in the right
direction.
Appreciating accessibility
Across the board, Stockamp employees give the thumbs up to their supervisors.
Sources claim that the firm has very accessible leadership, and a project manager
states that Stockamp is a very flat organization. I interact with the owners at each
company/manager meeting, [and] I interact with my supervisor each week. A
colleague couldnt agree more. Managers know how to have a good time and work
hard to ensure their team doesnt hate coming to work. Great opportunities are
provided and feedback is frequent, while another claims that Stockamp has some
of the most genuine, dynamic and trusted leaders of any organization Ive worked
with, including my employers and clients.
Employees also feel that they have open access to higher-ups within client
organizations. As one source reports, We work side-by-side with our clients every
day. Even brand new associates are given client interaction immediately. A co-
worker explains this interaction in more depth: Our project teams conduct weekly
updates with the CFO or COO, along with other VPs and senior VPs. Project
managers lead the meetings with client executives and oftentimes senior associates
participate. Associates (entry-level position) are given the responsibility to lead
meetings with client managers. Some suggest, though, that this access varies by
project. According to one insider, The ability to interact with top client management
varies by project based on the size of the hospital, and he explains that this year, I
am staffed at a very large health system, so the project owners are more involved,
whereas on smaller-scale projects, he has more direct contact with client leadership.
2006 Vault Inc. 858
And another consultant agrees, suggesting that it does take several years of tenure
to really have high-level client exposure.
Love those miles
With such heavy travel demands, typical in-office perks are useless to Stockamp
consultants. But Stockamp employees relish their ability to keep frequent flier
milesthis and an ample amount of vacation days are company incentives that keep
staffers happy. If youre planning a future sabbatical and want exact numbers, one
consultant breaks it down: Four weeks of vacation annually for associates and senior
associates; five weeks of vacation annually for managers and senior managers; and
six weeks of vacation annually for directors. In addition to the traditional eight paid
holidays, the company often adds about five additional paid holidays throughout the
year. Its these extra holidays that staffers really appreciateespecially when
they are a reward for hard work. A little bonus cash for positive results doesnt hurt
either; one consultant loves the firms spot-bonuses awarded when the company
performs well.
No glass ceiling
Stockamp is ahead of the consulting curve in terms of its hiring and promotion of
women. Women have a significant presence amongst junior associates, as well as at
the management level. A director tells us that women have every opportunity to
excel and do well at Stockamp. Stockamp is approximately 50-50 in terms of men to
women, while a manager claims, There is no glass ceiling at Stockamp. There are
many powerful women in the company. That being said, Stockamp consultants do
seem to agree that at the very highest reaches of corporate control, the percentage of
women does decline a bityet no one sees this as the result of discriminatory
practices. Asenior-level staffer explains it this way: There are a significant number
of females at the associate, senior associate and manager ranks. There is only one
female equity director (owner), and three female nonequity directors, but I dont
believe that is reflective of willingness to promote women. Women often find the
work life more challenging when they decide to start families, which commonly
occurs around the manager/director timeframe.
As far as gays, lesbians and bisexuals in the workplace, the firm exhibits an open
attitude. One consultant reports, We dont have specific programs that target this
population, but we have a fair number of gay, lesbian and bisexual employees, who
I believe feel they work in a supportive working environment. In addition, a
colleague notes, The GLBT population is strong and the intranet includes
commitment announcements of gay couples. Another plus? A consultant reports
this recent change: This year I saw a positive change in that Stockamp now offers
benefits to life partners, not just spouses.
Working on it
There is a lot less to report on minorities at Stockamp. Consultants say that the firm
does not have the most ethnically diverse staff; however, across the board, Stockamp
employees think the company is actively trying to make changes in this area. An
insider claims that Stockamp is working to diversify and is very open in this respect.
We dont have a lot of minorities but levels are increasing, while a more senior-level
employee says, We have changed our recruiting focus so that we have more
minorities in our pool of applicants. Stockamp sees this as an issue and is committed
to fixing it, but we need a couple years of run time for it to play out. Hopefully
Stockamp will be able to keep those minorities it does hire. Another staffer, who
agrees that the firm is on the road to improvement, also suggests that the firm does
need to work on retention of our diverse candidates.
Community all-stars
Community service is a part of Stockamps cultureand the firm puts its money
where its mouth is. One source with a few years at the company says there are
charity events at all projects, and a senior associate explains, The company
provides each project team with two days off with pay and $10,000 to donate to a
local charity in their project city. A co-worker enthusiastically claims, Stockamp
far and away applies the most focus on the community than any firm I have come
across in my 14 years in the industry. With engagements all over the country,
Stockamp spreads the good deeds gospel all over the map, with work including field
trips for children, building libraries, purchasing equipment and computers, and
remodeling rooms/buildings. And if thats not enough, the firm also matches any
charitable contributions that staffers make of their own volition.
2006 Vault Inc. 860
Strategos
820 West Jackson Blvd.
Suite 525
Chicago, IL 60607
Phone: (312) 655-0826
Fax: (312) 655-8334
www.strategos.com
LOCATIONS
Chicago, IL (HQ)
San Francisco, CA
Lisbon
London
PRACTICE AREAS
Enterprise Innovation Capability
Growth Strategy
Leadership & Organization
New Market & Product Development
THE STATS
Chairman & CEO: Peter Skarzynski
Founder: Gary Hamel
2006 Employees: 31
2005 Employees: 23
UPPERS
Our clients love us!
Leading-edge intellectual property
Brilliant colleagues who are also
hilarious
DOWNERS
Lack of industry specialization in
the team
Minimal formal training for
consultants
Limit to the breadth of client
opportunities
EMPLOYMENT CONTACT
E-mail: recruiting@strategos.com
THE BUZZ
Plucky, good folks
Good innovation work
Narrow focus
Strat-egoswhat else would
Gary Hamel call his firm?
THE SCOOP
Board games
The magic word at Strategos is strategic innovation. The principal theory of the
firm is that businesses, like sharks, die if they cease making progress; companies
must constantly be innovating to stay competitive and relevant. It is Strategos belief
that successfully commercializing or implementing innovative ideas relies as much
on cultural passion and organizational capabilities as it does on a well-founded
strategy. For this reason, Strategos designed its Innovation Model, methods and tools
to simultaneously address strategic opportunities and organizational capabilities.
Strategos focus on innovation is translated into enterprise strategy and direction,
capability building, and new product and market growth. Founded in 1995, Strategos
counsels a wide variety of clients in nearly every area of business, from consumer
products and health care to manufacturing and financial services. Its consultants
have worked with over 100 clients, including a large number of leading innovators
and household names such as Microsoft, McDonalds, Nokia, Whirlpool, Shell and
Clorox.
Thinking outside the box
Strategos prides itself on being different than other consulting firms, and its
consultants are not afraid to do off-the-wall things and challenge the status quo to get
the innovation ball rolling. The firm was founded by a small group of seasoned
professionals who were dissatisfied with the success rate of traditional consulting
approaches in delivering profitable innovations to market. With the belief that
innovation can improve profitability and consistency of companies, Strategos pairs
its senior-level consultants with client executives to set direction, identify and launch
new business opportunities, and define the competencies, organization, processes and
capabilities required for future competitive advantage.
In order to stay on top of the cutting edge, Strategos has dragged a group of Nokia
employees to Venice Beach and to Tokyo nightclubs in order to show them what
trendsetters deem, well, trendy. Consultants have taken retail clients to an American
Girl store, a destination for mothers and their daughters, in order to show them how
to attract customers outside of their gadget guy target market, and to an Amish
community to illustrate how the uninitiated can be overwhelmed and frustrated by
technology. Strategos consultants use different methods on location at their clients
businesses, too. Instead of slide presentations to upper management, consultants
often bring a large slice of the client organization to two- to three-day innovation
Strategos
2006 Vault Inc. 862
labs to jump-start employees imaginations for new business concepts. Event
participants generate ideas by examining the intersection of the various perspectives
of their company, industry and clients.
Awash in ideas
Many of Strategos consulting pursuits have proven successful. In March 2006,
BusinessWeek reported one of Strategos success stories. Whirlpool, the industry
white goods leader, called in Strategos in the fall of 1999 to generate innovation in
its ranks. Strategos solution was to encourage the employeesall 60,000 of them
to submit their own ideas, rather than leave the thinking to marketers and engineers.
Once ideas have been vetted by managers, they are immediately put in motion.
Flexible capital is available to help fund new projects that might arise between
budgeting sessions. Employees have submitted plans for everything from new
products (a line of cabinets for organizing the garage and a steam cleaner to freshen
dry-clean clothing) to improvements on existing ones (faster water dispensers on
refrigerators). This program seems to have paid off. Whirlpool posted record profits
in 2005, and its share price has never been higher.
Setting strategic direction
Another one of Strategos successes, reported in The American Lawyer in March
2005, is the West Coast law firm of Heller Ehrman White & McAuliffe, which
rocketed up to No. 2 on the magazines A-List that year. The firms revenue per
equity partner nearly doubled between 1999 and 2005. The firm attributes this
growth to a strategic architecture created with Strategos. The consultants, who dont
usually work with attorneys, created the firms plan to define its goals and focus its
efforts. The firm instituted a number of unlawyerly changes, including hiring a
marketing executive from Microsoft and nominating a partner to manage client
relationships. The firm has also been speeding up the pace at which it acquires new
lawyers. Laterals are usually slowly and carefully vetted, but when attorneys with
specialized practices suddenly became available, Heller Ehrman snapped up this
specialized counsel before larger firms could swoop in.
Valley guy
Gary Hamel, one of the founders and the chairman in the early years of the firm, is
also a visiting professor at the London Business School, speaker and bestselling
author. Though not involved in the day-to-day affairs of the firm, Hamels personal
brand is much more well-known than the firm he co-founded. Hamel has been called
Strategos
the most influential thinker on strategy in the Western world, by MITs Peter
Senge, and The Economist has dubbed him the worlds reigning strategy guru.
Hamel is the co-author of Leading the Revolution and Competing for the Future, the
seminal management manuals of the 1990s. Leading the Revolution explains the
corporation-as-Silicon Valley theory as a viable way for businesses to improve upon
Hamels virtues of innovation, renewal and resilience. Making the business resemble
an oversized startup would enable it to succeed in the modern marketplace. And
although Leading the Revolution was published in 2000, just when Silicon Valley
abruptly ceased to be a viable business model, this did not prevent it from becoming
a bestseller and B-school must-read.
Putting it into words
Hamels first book, Competing for the Future, coauthored with C.K. Prahalad in
1996, puts forth the thesis that businesses can create their own future, rather than try
to predict it, by acting on foresight. The book has since become a fixture on the
bookshelves of managers everywhere. In addition to his other accomplishments,
Hamel and his colleagues are award-winning contributors to the Harvard Business
Review, Fortune and The Wall Street Journal, among other publications. In 2002, the
Strategos Institute, a laboratory for management innovation where business leaders
and academics can interact to test and produce theories about business and
innovation, run by Hamel and Dr. Liisa Valikangas, became an independent entity
and was renamed the Woodside Institute.
GETTING HIRED
Experience talks
Strategos has a particular focus when it comes to hiring: experience. In the words of
one associate, We hire only seasoned professionals. The firm notes that most
employees enter the firm with at least 10 to 15 years of experience, and adds that
hires are expected to arrive with significant, real world experience and the
confidence to lead a senior client team. However, a source comments, an MBA is
not required; rather, we look for business experience, though most consultants do
have either an MBA or non-MBA masters degree. Strategos interviews for fit, and
as an employee notes, We hire based on the person, the feel and the potential. The
firm is reportedly looking for people with the extra somethingpeople with the
Strategos
2006 Vault Inc. 864
optimal blend between curriculum, experience and the ability to make a difference
in transformation processes, says a colleague.
What to expect when youre expecting
One recent Strategos hire describes the interview process as informal and fairly
unstructured. He had a couple preliminary phone interviews, and then a second
round of two half-day interviews at the office where he talked with two or three
consultants who asked him questions related to current clients for about an hour each.
According to this newbie, My impression was that they were looking for general
analytical abilities, rather than any formal, immediately-applicable capabilities.
Across the board, sources report interviewing with anywhere from three to 10
individuals over two or three rounds, spending half of their time on case questions,
and the other half on behavioral questions. Strategos wants to have as many people
as possible meet the candidate, says one consultant, and most even meet with the
CEO. Once the interviews are complete, interviewers make a collective decision to
move forward with an offer.
Fit as a fiddle
While Strategos interviews tend to be mostly behavioral, the firm notes that it does
test interviewees analytical acumen with case questions. Some examples from
previous interviews include, Our client wants to get into the business of processing
and collecting unpaid parking tickets. How many unpaid parking tickets are there in
the U.S. every year? Or, How would you change the rules of the game if you were
Disney, and you have just acquired Verizon Wireless? An associate mentions that
one interesting approach we have is to provide a book passage to the candidate and
ask them to tell us what the author means and hypothesize the context of the broader
book. Through such questions, interviewers want to gauge confidence, perspective
and the ability to synthesize information. To explore a candidates fit with
Strategos, interviewers often test candidates ability to perform in the situation they
will find with clients.
OUR SURVEY SAYS
Does size matter?
Strategos employees value the intimate size of their firm. Lucky for the people who
make it through the interviewing gauntlet, the firm allows everyone to play a vital
Strategos
role. According to one Strategos principal, Because we are small, every employee
has the opportunity to influence the future direction of our firm. Another source
wholeheartedly agrees: The culture at Strategos is truly created by the unique
personalities and experiences of each of our employees. When we are in the office,
we all eat lunch together. It is at these times, every day, that our culture emerges and
evolves.
This entrepreneurial, democratic feel is also fostered by the fact that the firm is
nonhierarchical by nature; Strategos lacks any formal command structure, and its
up to you to find the guidance that you need internally, says one consultant. Though
some are frustrated by the vague hierarchy, all of the employees get the opportunity
to work regularly with CEOs and division presidentsand extremely closely with
executive teams as full team members. One director notes that each consultant
interacts with just about every level at the clients organization, as well as within
Strategos itself. Relations among those who work at Strategos are positive, and
theyre grateful that there are no office politics.
Find your own way
New hires, though, are left to their own devicesa result, perhaps, of the firms
leanings toward experienced hires. Aprincipal explains that all training is unofficial,
nearly all is self-directed, and its assumed that everything will be on-the-job. It can
be very frustrating. And the firms small size can also be a detriment. As one newly
hired consultant remarks, The size and structure of the firm makes for a difficult and
frustrating transition. Everyone is very willing and happy to help out and spend as
much time as needed to answer any questions you have, but without any formal
training or guides, its often difficult to even know what questions to ask. Other
sources feel the weaknesses of the firms size, as well. Several Strategos employees
long for the structure, training, benefits and breadth of opportunities that larger
firms offer, and one notes that because of our size, theres a limit to the breadth of
client opportunities available to us.
The firm explains that new consultants shadow another Strategos consultant at the
client site on day one. According to Strategos leadership, We engage with senior
client leadership on their business issues, rather than providing on-the-job training to
an army of freshly-minted MBAs. The firm recognizes that this philosophy creates
tension for some who are accustomed to a larger firm or more hand-holding. The
firm also notes that those who succeed best within its ranks are those looking for an
entrepreneurial environment where self-starters succeed or fail based on the merit of
their ideas and their ability to implement those ideas successfully.
Strategos
2006 Vault Inc. 866
Howdy, pardner
Since Strategos doesnt focus on hierarchical classifications, and since all hires come
in with experience, an employee states that promotion is a bit of a misnomer. We are
all quite senior, so every employee is considered a partner. In fact, as one
consultant explains, We dont have clearly defined levels. Added to the mix is the
meritocratic nature of promotions. One insider states that advancement to director
is based on performance and prior experience, and adds that promotions can happen
fairly quicklyas short as two years. Others suggest, however, that the road to the
top is a lengthier journey. One consultant admits that it isnt easy to advance to the
partner level, but the responsibilities at the principal and associate levels are great,
deeming the difficult trip a worthwhile one.
The hourglass is half full (or half empty)
On the low end of the consulting spectrum, employees at Strategos enjoy a relatively
manageable workweek of 55 to 65 hours. And, most employees say they seldom take
their work home with them, which amounts to fairly strong marks for work/life
balance. One director elaborates, We work hard during the week, but dont have to
slave away on weekends. It [is] tough to participate in activities during the week, but
we usually have our weekends free. Some report working weekends every once in
a while, but Strategos employees generally kick back when the workweeks done.
Employees also relish the fact that Strategos is not a face time culture. We all
work hard, but hard work is not the objective! one consultant exclaims. And a co-
worker concurs, stating that there is absolutely no pressure at all to work, just to be
working. Since work hours are self-regulated and driven by assignment design and
client needs, if a staff member has a slow day, its not unheard of to sneak off to
the golf course for a client planning meeting. Some employees also take
advantage of the flexible work arrangements and work from home.
Going somewhere?
Most Strategos employees seem pleased with the amount they travel to client sites. One
reports that, like work hours, travel really depends on the project. There are spells when
one travels a good deal, and there are other moments when travel is minimal. Several
consultants note that the amount of travel they do affords them the ability to focus on
the client and get lots of work done. And another delights that we form very close
bonds with the client team and our colleagues on each assignment. One recent hire,
however, is surprised with how little travel is required of him, and says, I actually
wished (and assumed) I would be traveling more than I have been so far.
Strategos
Competitive comp
In general, sources seem pleased with pay. As one consultant observes, Partner
compensation in a small firm can be volatile! Last year was a strong year, and we
expect the same this yearso my expected compensation is quite competitive. The
firm also has a profit sharing policy, in addition to bonus, and offers 401(k), though
it doesnt match employee contributions.
The central perks
But some employees at Strategos find more than monetary fulfillment. Whether off at a
client site or at the open loft office space where Strategos is headquartered, employees
enjoy the benefits of being part of the firm. Aconsultant confides that the best thing is
seeing ideas and strategies implemented in the market, and often being a part of that
implementation with the client. My clients become good friends and professional
contacts. The biggest perk for me, a colleague similarly muses, is seeing the strategies
and innovation ideas we develop get implemented in the marketplace, and reading about
our clients success in The Wall Street Journal. That is where I get satisfaction.
Aside from cushy salaries and flashy press, being part of a small firm affords its
employees flexibility and the opportunity to appreciate the little things. Strategos is
able to shut down between Christmas and New Years, employees are permitted
sabbatical leave and others appreciate the full medical coverage. One recent hire
says, Moving from a large corporation to a very small consulting firm, the most
enjoyable perks are the smallest onesthe flexibility and freedom. A kitchen
stocked with drinks, snacks, beer [and] wine, also helps consultants feel loved.
Varietys not the spice
Strategos does not boast the most diverse group on the block, though the firm notes that
it is diverse in terms of international background and experience. This may just be
another drawback of the firms small size; Strategos seems open to hiring any individual
up to the task. According to one source, Minority status, gender and sexual orientation
are not a consideration for usits about talent. Aco-worker remarks, We have very
few women, although that tends to reflect on the number and type of applicants, rather
than the willingness to include women in all phases, a rational explanation that is also
applicable to gaps in minority and GLBT presence at the firm.
To promote good will outside of the firm, Strategos matches charity contributions up
to $3,000.
Strategos
2006 Vault Inc. 868
Trinity Partners, LLC
Prospect Place
230 Third Avenue
Waltham, MA 02451
Phone: (781) 487-7300
Fax: (781) 487-7301
www.trinitypartners.com
www.trinitypharmasolutions.com
www.akutacorp.com
LOCATIONS
Waltham, MA (HQ)
New York, NY
PRACTICE AREAS
Brand Strategy
Commercialization Strategy
Custom Data Solutions
Forecasting
Licensing & Acquisition
Market Assessment & Sizing
Portfolio Prioritization
Statistics
THE STATS
Managing Partner: John E. Corcoran
2006 Employees: 60
2005 Employees: 50
UPPERS
Opportunity for quality work in a
dynamic industry
Young and very casual
Lots of responsibility from the
start
DOWNERS
Communication from management
to lower-level employees is spotty
Career progression is still a little
hazy
Trinity is a smaller firm so there
are not as many established
programs
EMPLOYMENT CONTACT
E-mail: careers@trinitypartners.com
THE SCOOP
Pills and data
Founded in 1996, Trinity Partners is focused on the pharmaceutical and biotech
industries. It offers strategic advice, as well as data and software solutions, for new
and established drug companies and biotech firms. The core consulting practice
specializes in forecasting, market estimation, portfolio planning and
commercialization strategy. Its sister company, Trinity Pharma Solutions, specializes
in custom data solutions. Both companies draw on Trinitys heavily quantitative
approach to consulting and data management.
The firm uses its knowledge of industry data sources to derive fact-based strategic
recommendations for clients. In a nutshell, Trinity consultants are end-to-end
information managers, discovering new ways to gather, assemble and disseminate
data, and to use these insights to drive strategy. As the company says: In the data-
intensive pharmaceutical and biotech industries, companies require timely, accurate,
compelling and accessible information about marketplace behavior. Conversely,
having incomplete, out-of-date or irrelevant data compromises sales force
effectiveness and undermines strategic decision-making. Thats the force driving
most of the firms engagementsTrinity looks to empower the business managers of
the pharmaceutical industry by enabling them to make faster, better informed
decisions.
Broadening perspective
Early in its history, the firm extended its capability into patient-based modeling, and
from there expanded into an array of services: sales and marketing strategy, business
development and market analytics. According to the firms founder, John Corcoran,
Trinity does in excess of 100 licensing and M&A deals annually and works with its
clients on many of the latest new drugs and technologies. Trinitys clients include
Johnson & Johnson, Pfizer, Biogen Idec, Schering Plough, Novartis and other top
pharmaceutical companies.
TPS
Facing stiff competition, pharmaceutical companies have increasingly had to
concentrate capital on sales and marketing, in place of their traditional focus on
R&D. They have also been forced into greater transparency in order to meet
regulation requirements. To meet these growing demands, and to capitalize on its
niche expertise in data and information management, Trinity spun off a subsidiary,
Tri nity Partners, LLC
2006 Vault Inc. 870
Trinity Pharma Solutions, in August 2004. The two companies are closely
intertwined, however, with Trinity Pharma serving as the data solutions provider to
many Trinity consulting clients.
Spotfire!
Trinity Partners expanded its capabilities in October 2005, forming a partnership with
Spotfire. It also acquired a license to that companys DecisionSite software, with the
goal to speed the delivery of fact-based market and competitive insights to its
pharmaceutical sales and marketing clients. The two companies share much in
common. Spotfire specializes in programs that manage complex data, and its
particular twist is to make the data accessible by creating a user interface that is
interactive, visual and easy to use. Trinity is hoping that DecisionSite will bring the
same level of in-depth information analysis to sales and management teams that they
are used to seeing in the laboratories of clients. Grouping genes by expression
patterns is surprisingly similar to grouping hospitals or physicians by purchasing
behavior. Having a means to apply the same genomic analysis techniques to sales
and marketing data is enabling us to provide our clients with greater insights into
market opportunities, said Glen Wong, Trinitys director of operations, in a Business
Wire article. So far, it looks like Trinity made a good bet: In December 2005, ITWeek
named Spotfires DecisionSite software one of the top-50 technology innovations of
the year.
Getting into the details
Trinity branched out into the software product space with its October 2005 launch of
New York City-based Akuta Corp. Akuta serves a niche market: medical science
liaison teams often deployed by pharmaceutical companies in advance of product
approval. Akutas propriety software provides a communications, resource-sharing
and management reporting tool to connect science liaisons with each other in the
field and with headquarters.
GETTING HIRED
Ivy leaguers
Trinity Partners typically recruits at Harvard, Princeton, Dartmouth and MIT, and as
one insider reports, Most new hires are fresh out of undergraduate programs. For
those who dont find their school on Trinitys recruiting circuit, job openings are
posted on the firms web site. To get your foot in the door, youll pass through two
to four interviews with all levels of Trinity staffers. Study up on your pharmaceutical
industry knowledge; were told that the company asks mainly pharmaceutical case
questionson commercialization strategy and market sizing. There are also
scattered reports of a technical competency test. Fitting in is important too, sources
tell us. If youre not a whiz with numbers, take this to heart: One senior member of
the firm notes that quant/analytical skills are important, but fit may be slightly more
weighted.
OUR SURVEY SAYS
Youth-driven culture
Trinity consultants are pleased with their work environment; the words fun and
collaborative come up often when they describe life in the office. Trinity also has
youth on its side: one recent Ivy League grad says, The people are great, you wont
find a better atmosphere to work in. Everyone is young and willing to go the extra
mile for their friends. Many of the younger workers have been friends since college.
The firm also notes that Trinitys staff is an athletic bunch, and many participate in
company-sponsored soccer and softball events.
But a youthful culture doesnt mean all fun and gamesemployees are able to turn
it on when they have to. Asenior consultant reports that the culture is fun, generally
laid-back, [and] intense when need be. And as an insider states, The culture is like
the old clich. Everyone here works hard and plays hard. Another plus is that
management is available for this youth movement. One newbie explains, The
relationship with superiors is excellent. The supervisors do not micromanage but are
there when you need help or have any questions. Their office is always open and it
is possible to talk openly and honestly with them [about] any concerns or problems.
Peaks and valleys
Intense work periods can temporarily put consultants lives on hiatus, but these are
moderated somewhat by an average of reasonable work hours and the occasional
slow week, consultants report. One insider says, Unpredictable client demands may
cause unpleasant peaks, but you can usually compensate during the lulls. And a
rookie used to sleeping in says, At first, it was tough adjusting from college, but
people do a good job of leaving earlyespecially those who are married. The tough
assignments are what cut into fun time; another young gun with the company says
2006 Vault Inc. 872
that balancing life and work is challenging. There are times when projects can take
more time and energy in order to get them complete, putting your life on hold. And
although some consultants report logging close to 60 hours a week, most claim that
average work hours range from 45 to 55 hours per week, putting the median close to
industry standards. Weekend work happens infrequently, and most sources agree
with one consultant who states, When I go home, I am able to completely forget
about work. A colleague sums it up, saying, I do put in a lot of hours, and work
some weekends, but Trinity does its best to maintain work/life balance.
Homebodies
Travel is not a big component of staffers lives at Trinity, and employees report little
stress in this area. Aconsultant in his second year with the company says, Travel is
definitely reasonable for a consulting firm. On average Im on the road around two
to three days per month. If you move up the totem pole, you may get out more, a
senior representative notes, saying, Most employees do not travel much. Upper-
level employees travel more, but it is still below industry average. I dont ever recall
anyone traveling more than a few days at a time, the exception being work with
international clients. So, as Trinity consultants find themselves mainly at their
swivel chairs and monitors, its a good thing the home office gets above-average
marks. Although there are some minor grumblings about a lack of gym and
ergonomic furniture, the space is labeled as nice and very attractive. Simple, but
classy.
Stick around or move up, you decide
Trinity Partners is not an up-or-out organization, and consultants report that if theyre
happy with their position they are allowed to stay. A senior consultant says,
Promotions generally happen every couple of years. If you are fine with your
position, there is no pressure to advance. There also doesnt seem to be a concrete
set of skills to be mastered before employees can move on to the next level
promotions are tied more to results and general performance. A business analyst at
the company explains that promotion is selective; however, the company
accommodates and rewards differing objectives and skill sets. Trinity is a growing
company, though, and things may change slightly as time goes on. As one employee
reports, I received my first promotion in the first 18 months. Promotion is based on
individual performance but is likely to be linked more toward your class as the
company grows. The firm remarks that it has a preference for internal promotion
and developmentin fact, all of the senior managers at Trinity worked their way up
the ladder.
Working for your paycheck
Performance is the magic word at Trinity, affecting both your movement within the
firm and your paycheck. And although salaries are in the middle range, top
performers are rewarded, were told. One consultant says that compensation is
closely tied to performance, while another reports, Salary can be on the lower
spectrum. But the year-end bonus makes up for some compensation. In addition,
the firm matches 401(k) contributions up to 3 percent.
Play time
Management is definitely not fighting the youth movement at Trinity. Employees report
fun perks like a team XBox 360 in the conference room, and free league soccer team
play, as well as fun ski trips. For those looking for more sophisticated perks, free
good coffee may be your only consolation (though not to be underestimated).
Learning the ropes
On-the-job training seems to be pretty entrenched as the way to go at Trinity, with
one source claiming that internal training is 90 percent unofficial. A colleague
states, Training is very hands-on, with a great deal of responsibility given from the
start. In addition, to this, the opportunity for external training is available. A
recent hire shares his personal experience: Training is both informal and formal.
When first arriving here, my supervisor decided to send me to a class in order to get
a solid foundation. The supervisor also encouraged us to seek out formal training as
long as it is within budget and is work related. But the word is that the firm is
changing a bit, and taking a flexible approach to those staffers who want a little more
know-how. A senior employee tells us, We have initiated an official training
schedule the past couple of years. [We are] getting better in this category, though
even this source admits that the most helpful training is probably unofficial because
it needs to be project-specific. And on those rare instances of formal guidance
within the firm, a consultant explains that the training is a short process, since
everyone is needed to chip in right away. Lower-level people lead the training since
were a small firm.
Mum on diversity
Trinity consultants dont have much to say on diversity and equality in their
workplace. When asked about the treatment of women in the office, one consultant
reports, We are gender blind, and defending the lack of minorities, another says,
We may not hire many minority employees, but that is only because the pool of
applicants is nonminority heavy. Seems like hes got the industry pegged.
2006 Vault Inc. 874
And when asked if the company takes part in community services initiatives, sources
agree that firmwide efforts of the sort are hard to find. The firm admits that its
lacking a formal policy on community service, but notes that individual staffers are
the giving sort, contributing to charitable causes on their own, often at major giving
levels.
Value Partners
Via Leopardi, 32
20123 Milano
Phone: +39 02 4854-81
Fax: +39 02 480090-10
www.valuepartners.com
LOCATIONS
Milan (HQ)
Athens
Buenos Aires
Istanbul
Mumbai
Rome
So Paulo
Shanghai
PRACTICE AREAS
Automotive
Chemicals
Consumer & Luxury Goods
Energy, the Environment & Natural
Resources
Financial Institutions
Health Care
Manufacturing
Real Estate
Telecom & Media
THE STATS
Founder & CEO: Giorgio Rossi Cairo
UPPERS
Entrepreneurial spirit
Dynamic company, growing faster
than competitors
International
Lots of chances to learn and grow;
stimulating and friendly environment
DOWNERS
Some internal processes are poorly
structured (i.e., staffing process)
Insufficient salary package
Lack of structured mentoring
Limited international image despite
the growth to Asia and the strong
presence in Latin America
EMPLOYMENT CONTACT
www.valuepartnersgroup.com/vpmc/en
2006 Vault Inc. 876
THE BUZZ
Underrated
Italian leaders
Localized
Too small to notice
THE SCOOP
Italian stallion
Founded in 1993 by Giorgio Rossi Cairo and Vittorio Giaroli, former McKinsey
partners, this Italian firm may not be a big name here in the United States, but it has
a global presence with more than 1,700 employees (one-third of whom are not
Italian) working on projects in over 37 countries. That fact doesnt mean it has
become just another faceless corporate multinational. Despite the firms generic
name, Value Partners treasures its European flair and unique culture: Even today, the
firm sticks to its founding mission statement, to be a consultancy that combines
Italian lan, international scope and cosmopolitan culture.
Divided and conquering
The firm has grown steadily (it began with only 15 senior consultants) both
geographically and in head count since its inception. In 1999, Value began to
organize itself into two areas of expertise in order to better deal with its rapidly
increasing set of services. The first area is Value Partners Management Consulting.
This is the more traditional strategy-based wing of the company, with special
expertise in companies undergoing large-scale change. Clients are often
restructuring, making acquisitions or underperforming and requiring turnaround.
Working side-by-side with management consulting is Value Team IT Consulting &
Solutions, the technology wing of the company. These consultants focus on general
IT strategy and architecture, as well as those issues which have most impact on
business strategies, such as customer relationship management and IT security. The
firms roots lie in its management consulting practices, and its technology practice
has grown mainly through acquisitions. Together, these two practices allow the firm
to cover the entire consulting spectrum from strategy to implementation.
Covering turf
VP has always had an international focusit opened an office in So Paulo in 1994,
which continues to serve clients throughout Latin Americathese days the company
is moving to strengthen its position in emerging markets. Early in 2006, the firm
made its first foray into the Indian marketplace, opening an office in Mumbai
intended to serve European firms and local groups that want to consolidate their
growth and diversify globally. Value Partners also made a move in South America,
buying out Brazils largest IT consultancy, Relacional, as well as Mitsucon, a leading
systems integrator in May 2006; the total bill for their South American acquisitions
Value Partners
was 11 million. The company is also a big believer in East Asian industry and in
July 2005 made a similar move, purchasing Cuspes, a consultancy focused solely on
China. The firm also has a strong presence in Turkey, and its Istanbul office is
prolific in its praise of that regions potential for economic growth. According to VP,
it arranges its international presence around countries of great potential value to
European firms.
GETTING HIRED
Global recruiting
Insiders note that Value Partners is receptive to talent wherever it comes from, and
will accept resumes submitted through the firms web site, though they do mention
some specific institutions frequently visited by the firm. VP recruiters focus on
economics and engineering graduates from top universities, and MBAs are recruited
from top business schools such as INSEAD, Bocconi School of Management,
London Business School, CEIBS and IESE. In the U.S., the firm recruits at MIT,
Columbia and Wharton. Though VP has routine recruiting practices, one source
comments that it could do better when it comes to hiring methods: We still have to
work on developing structured hiring processes and polices. Currently it is based
much on a consultants network.
Some real stumpers
Candidates can expect several rounds of interviewstwo or three with engagement
managers and two with partners. The firm is definitely looking for a strong
quantitative profile in applicants, sources say, and the firm notes that it also looks
for sound problem structuring and solving. Most interviews will consist of several
case questions involving market sizing and strategy. Several insiders offer some
typical interview questions: Determine the size of the ski market in Germany, Size
the value of the Italian wine market, or Estimate the cash flow of a cow.
Candidates may also be given brain teasers and questions that test common
sense. After the first few rounds there is a fit interview during a final day with the
partners.
Value Partners
2006 Vault Inc. 878
OUR SURVEY SAYS
The good ole days
VPs collegiate culture wins high marks from insiders. Associates describe the firm
as informal and friendly, with an easygoing environment full of young, bright
people. A source maintains that there is definitely a collaborative and sharing
environment that is diverse and fun. And a manager raves about the
entrepreneurial approach that puts proactiveness and initiative first. For me, its one
of the last true examples of the good ole days of strategic consulting firms.
Paving a new path
VP is also dealing with the usual bumps in the road that pop up when a firm expands
internationally and grows through acquisitions, which seem to be affecting the firm
culture. An associate describes the issues as growing pains: [the] dilemma between
the culture of a small, boutique, family firm and a multinational, big, anonymous
structure. According to sources, VP management isnt ignoring these concerns and
is working to smooth out the problems. In 2006, the vice president launched a major
revamp of the culture, which I expect will bear fruit in 2007. I expect the best,
because during the assessment, the firm recognized and pinpointed all weaknesses
and is demonstrating serious effort to refresh and strengthen the culture even further,
explains an insider. A colleague relates that the firm is keeping an eye on past
traditions that have served it well. Recalling the days of yore, this source notes that
the firm is now experiencing a return to the past, with stronger attention to
corporate values and with all the different experience integrating into the same
identity.
Top exposure
Stemming from the firms entrepreneurial feel, insiders remark that there is also an
entrepreneurial approach to developing client relationships. And overall,
employees convey that they are pleased with the exposure to client management that
they experience at VP. Sources report that their firm is not hierarchical at all,
which allows them to have very open and direct relationships with clients top
managers. Our consultants are exposed to clients top management from the
beginning of their career at VP, reiterates one associate. A consultant admits,
though, that on a project in which you work with a couple of partners, sometimes
its difficult to interact with clients top-level management, but he also adds that
you always have opportunities to have exposure. And an associate comments that
Value Partners
he values the very participative style inside the firm and very constructive/friendly
relations with clients.
Efficiency is key
Associates at Value Partners report an average workweek of about 60 hours. It
depends on projects, but the average is 12 to 15 hours per day (weekends excluded),
says one associate. Employees appreciate the fact that there is not a lot of pressure
to put in face time when the work is finished. Flexible is the right word. Nobody
will ever ask you to stay in the office if theres no need of it, observes one insider.
Another source agrees: VP consultants work efficiently during the day and tend not
to stay in the office until late. The key word is work hard and efficiently during the
day.
Work/life imbalance
And though most sources say weekend work is not mandatory, employees seem
dissatisfied with work/life balance at the firm. Depending on the engagement, there
can always be the occasional classic consulting crazy hours, which one consultant
says are typical of the industry [and] in any case too much for a satisfactory life
quality. According to one insider, Its very difficult to find a good balance. But the
worst thing is not the number of weekends worked, but the impossibility to program
anything with your family. Another analyst echoes the complaint: Weeknights are
all in the office, and a colleague argues that during the week, its almost impossible
to have a social life outside the office; you never know at what time you will leave
from work and its almost impossible to schedule anything. When it comes down
to it, VP employees take their work seriously and find that completing a difficult job
satisfactorily eats up almost all of their time. [Its] hard to do a good job in harder
projects without giving up most personal life (not that there is a choice), a source
says disappointedly.
Others at the firm report that having time for a life outside of work depends on the
way a manager schedules a project, which some deem more of a priority than others.
Sometimes its really hard to have a good work/life balance. I think that it depends
on poor project planning and problem structuring by the more senior team members
(partners and senior managers), explains a source in Rome. And others report that
work/life balance would be easier to attain if it was a firmwide priority: The average
workload is not excessive, but the firm does not seem to explicitly care about
work/life balance.
Value Partners
2006 Vault Inc. 880
Improves with time
Still others argue that attaining work/life balance is left up to individual initiative.
One consultant states, Given the project objectives, the balance is left entirely up
to the individual. Another consultant agrees, Its often up to me to balance personal
and professional life, and I prefer to work during the weekend rather than working
till late in the evening during the week.
But this initiative seems to be a privilege of members of the upper echelons. On the
whole, upper-level associates are happier than newbies with the way the firm respects
life outside work. Several insiders state that the autonomy earned at the manager
level allows for individuals to determine how much time to devote to work. As one
source suggests, Managers are very autonomousthe life quality depends on how
well you can organize your teams work. Another insider concurs that balance is
achievable, thanks to a large degree of autonomy in managing projects and
responsiveness of the firm to personal needs. As one associate simply states, The
more you grow, the easier it is to find a balance, though a manager insists that its
still below my familys expectations.
Several sources also praise the firms efforts to accommodate employees personal
needs. The classic lack of tight schedules here works to your advantage. It is in your
hands to balance the hours and dedicate time to yourselfyou are given the
opportunity to do so, and I have experienced instances of the truest dedication by the
firm to us and our needs, in cases of personal or family matters, says one source.
And a co-worker agrees: The firm tries to consider special/personal situations that
might arise and work with the consultant to find a mutually convenient solution.
All or nothing
When it comes to travel frequency, one insider remarks, Its either always at home
or all working days in another town/country for the whole duration of a project. And
although travel is common for many associates, sources relate that it is fairly
manageable. One hard-working manager admits that being on location five days a
week isnt really the clients expectation so much as his own: Theres no problem
in traveling even five days a week. Its only a matter of making it useful. Clients are
generally not asking for us to stay on-site five days a week. Most of the times its just
our opinion.
Jet setting
For quite a few VP insiders, travel is an attractive benefit of working for a firm that
serves an international clientele. Many sources say they like roaming the globe on
Value Partners
various projects. One consultant enthusiastically reports, I love it! I joined
consulting to travel and to have variety in places, sectors and nature of projects. So
far, VP has provided just that: True strategic projects (increasingly hard to find), and
variety in places and sectors! And a junior-level associate claims, Im still young
and Ive chosen this job also because I want to travel. Those who tend to like variety
appreciate the travel most. I enjoy traveling for work as it allows you to see
different lifestyles and work styles, and the quality of work/life is usually higher
when you are far from your main office, notes a source.
But not everyone relishes the continual travel, and some grumble about the length of
time spent away from home. One senior associate points out, In the last four years
I worked in my base office less than 20 percent of the time. And another consultant
groans, It makes the work/life balance really hard, while another adds, I have been
working more away from than in my home office. It negatively impacts my private
life (personal relationships, hobbies, sports, etc.)
Learn by doing
Though the firm notes that it offers a variety of formal training, consultants attest
over and over again that they learn by doingmost of the available official
training cant be squeezed into a packed work schedule, according to insiders. Says
one associate, there is mainly on-the-job training. You never have the time to attend
training programs. A colleague concurs, Most training is official, but it is often
difficult to attend. And according to associates who manage to make time for
official training, it still doesnt prove as helpful as the learning that takes place on the
job. Unofficial [training] accounts for 90 percent of the effectiveness, claims one
manager, and another insider maintains that hes had excellent unofficial training
from roughly 50 percent of the seniors Ive worked withthe other 50 percent were
either poorly skilled or not very interested in teaching me.
On a positive note, an analyst mentions that there is some excellent training on
public speaking. And an employee adds that the training package is rich for junior
positions. Another colleague offers this advice to improve VPs official training:
Training programs should be more business conscious and flexible.
Up, but not necessarily out
Promotion at the firm follows a formal timeline but allows for some flexibility. To
move from analyst to consultant typically takes two years. For each step after that,
The advancing time depends on [each] single case, [with an] average of three
years, notes a manager. The advancement path used to be one of the shortest in the
Value Partners
2006 Vault Inc. 882
market, now it is closer to market standards, a source shares. One insider also
comments that promotion is based on meritocracy and depends on consultant
performance. And though there is a policy of moving up or out, people come first,
insiders claim. Another colleague verifies, Theoretically its up-or-out, but often the
relationship counts more than the capacities.
When it comes to a formal up-or-out policy, insiders note that its not easy to be
forced out of the firm, since in Italy, the government imposes some constraints. The
Italian law protects the employees, therefore a risk of being promptly fired is very
low; implying that out means marginal to the companys life and without career
opportunity, explains one insider.
Just fair
Employees at VP give the firm mediocre marks when it comes to compensation. One
analyst gripes, I found that my company is quite below the average if compared with
main competitors, while another urges, There has to be a steeper growth of base
salary.
Annual bonuses come in the form of profit sharing and depend on overall firm
performance. Most sources report receiving a bonus equal to 15 to 25 percent of their
salary. However, they seem to agree that bonuses arent quite what they should be.
One employee comments, Ive never been really satisfied with my bonus, while
another adds that year-end bonus is sometimes a bad surprise. A few just arent
sure how bonus is calculated and wish the scheme was more transparent. As one
analyst moans, In my firm there are no fixed rules and too many subjective rules to
determine compensation. Another insider seconds the complaint, claiming, Its
really not so clear how it works.
V(I)P perks
The firm offers some perks that associates say are nice extras. Aside from a complete
health insurance plan, employees enjoy a car (at the associate level) provided by VP.
Insiders also boast of the leading-edge tools the firm provides, including a laptop,
BlackBerry and 3G phone with paid mobile bills, (unofficially including personal
calls). One associate in Milan also adds the free yoga course to the list perks. And
in Brazil, a manager raves about company-paid house rent (since Im an
expatriate).
Value Partners
A diverse group
Most sources feel that their firm is a fairly diverse place to work. As for women with
families, one associate remarks, I see no discrimination whatsoever with flexibility
in the case of children, while an insider says gender diversity is improving, but not
yet outstanding. VP also earns high marks from insiders when it comes to other
kinds of diversity. One associate plainly states, [There is] no discrimination
perceived.
Global generosity
VP is actively involved in its community, which happens to be all over the world.
The firm is big on supporting orphans through distance adoption, and regularly
sponsors children in Africa and Brazil. One insider in Athens explains, [We]
adopted the child community of a village in Eritrea, [and conduct] fundraising at
almost all events that VP organizes. A Brazil-based consultant says, The firm is
very involved in charity programs in Brazil and in Ethiopia, and comments that his
office organizes yearly charity events for children in South America. An internal
project to strengthen these efforts was also launched recently to develop ideas for a
greater involvement in charity activities, notes an employee. In particular, the firm
is evaluating the idea of carrying out pro bono consulting for nonprofit NGOs.
Value Partners
2006 Vault Inc. 884
Vantage Partners
Brighton Landing West
10 Guest Street, 3rd Floor
Boston, MA 02135
Phone: (617) 354-6090
Fax: (617) 354-4685
www.vantagepartners.com
LOCATIONS
Boston, MA (HQ)
Los Angeles, CA
PRACTICE AREAS
Alliance Management
Key Customer Relationships
Outsourcing Management
Sourcing & Supplier Management
THE STATS
Directors: Danny Ertel, Mark Gordon,
Jonathan Hughes, Stuart Kliman, Bruce
Patton, Larraine Segil, Jeff Weiss
2006 Employees: 70
2005 Employees: 70
UPPERS
Flexibility to work from home
Exposure to leading theorists in
negotiation and conflict resolution
Rigorous thinking and lots of open
communication
DOWNERS
Sometimes lacks helpful procedures
Lack of clear career development path
No rigorous, formal training program
for new consultants
EMPLOYMENT CONTACT
www.vantagepartners.com/aboutus/
career.cfm?
E-mail:
hr_recruiting@vantagepartners.com
THE SCOOP
Relationship advice
CEO Mrs. Fantastic has four calls on the line: Her outsourced Bangalore customer
support center is having trouble following the guidelines they agreed upon; her
unionized factory representative wants a raise for his workers; her brainy software
subsidiarys director is going to Hawaii for the month; and her husband is reminding
her she forgot Valentines Day. The first three problems are right up Vantage
Partners consulting alleyalthough, with books like Difficult Conversations: How
to Discuss What Matters Most authored by Vantage senior staff, you might think
theyd have a shot at smoothing over the husbands qualm, too.
Vantage Partners consultants are specialists in managing business partnerships and
negotiation. This small firm, with offices in both Boston and Los Angeles, focuses
on relationships between corporations and suppliers, outsourcers, customers,
business alliances and its own employees. In todays global market, large companies
often have their manufacturing, customer support, research and development, and
upper management teams spread across the globe. Corporations also deal with a
variety of external business entitiesgovernments, unions, strategic allies, etc.to
keep the wheels of commerce rolling in a prosperous direction. Vantage Partners
advises corporations on how to manage these relationships. Its client list is made up
of many international heavy hitters (with the quaint exception of domestic clothier
L.L. Bean) and includes such names as British Petroleum, Cisco, Hewlett Packard,
IBM, Johnson and Johnson, Microsoft and The New York Times.
Crimson roots
All but one of Vantage Partners senior directors attended Harvard as undergraduates or as
law students. The Harvard connection runs deep at Vantageall the way back to 1979
when Bruce Patton (future Vantage director) and Roger Fisher (not on the payroll, but
influential at Vantage nonetheless) were among the founders of the first interdisciplinary
research center on negotiation, the Harvard Negotiation Project (HNP). The project was
dedicated to exploring theories on bargaining, conflicts and the resolution of disputes.
HNPbrought together many Harvard students and alumni with high-powered connections.
Several of these individuals decided that the innovative principles they applied to conflict
around the globe were just as critical to the challenges facing most businesses. CMI was
born in the mid-1980s, and Vantage Partners was spun off of CMI in 1997.
Vantage Partners
2006 Vault Inc. 886
The partnership whisperer
Vantage Partners works with firms from a variety of industries, including information
technology, financial services, pharmaceuticals, telecommunications, entertainment,
petroleum and minerals, professional services and manufacturing. With each client, the
firm splits its expertise into four main practice areas: alliance management, sourcing and
supplier management, outsourcing and customer relationships. All this boils down to
helping companies manage and negotiate with other organizations. One of the firms
founding theories is that between 50 and 70 percent of business relationships fail to
meet their objectives, and that the primary cause of failure is poor or damaged working
relationships between partners. In response to this, Vantage combines its negotiation
advice with tools and templated business processes to get partners working together.
One key component to Vantages method is its emphasis on corporate education. The
firms Corporate Education division offers personalized, interactive sessions where
senior management is put through mock-up situations in which it has to deal with thorny
issues. Specific skills taught include how to deal with hard bargainers; avoiding the
tendency to meet in the middle when negotiating; and how to broach tough issues
despite feelings of dread or discomfort. Vantage also uses technology to aid its clients.
Partnersmith
is the name of the software platform its Vantage Technologies division

developed to provide a monitoring point and meeting place for business partners.
Networked dashboards provide metrics on the performance of a relationship and
common web spaces provide a repository for shared documents. Tools are also included
that provide a structured way for managing expectations and making joint decisions.
Book deal
Vantage staffers are prolific publishers and public speakers. If you want to learn more
about the firms approach, pick up one book in particularGetting to YES: Negotiating
Agreement Without Giving In, first published in 1983. The book was originally written
by HNP Founder Roger Fischer. Asecond edition was rewritten and edited by Vantage
Director Bruce Patton. As Patton says in the new introduction, More and more
occasions require negotiation, conflict is a growth industry. If hes right, thats great
news for Vantage; regardless, Getting to YES is oft mentioned in the companys literature
and is cited as the basis for all its research. Other publications by Vantage senior staff
include, Making Alliances Work: Improving Return on Relationship, by Mark Gordon
and Julie Salganik; Getting Ready To Negotiate, by Danny Ertel and Roger Fisher, and
PartneringThe New Face of Leadership, by Larraine Segil.
Vantage consultants also make frequent public appearances at industry conferences. At
a March 2006 clinic, licensing professionals demonstrated advanced negotiation
Vantage Partners
techniques, including, separating the people from the problem and how to negotiate
more successfully with people who are more powerful, refuse to play by the rules or
resort to dirty tricks. In February 2006, Stuart Kliman, a founder and director at
Vantage, presented at the second annual Translational Medicine conference in
Philadelphia. He conducted a tutorial entitled, Bridging the Gap: Understanding and
Proactively Enabling the Preclinical Scientist and Clinician Working Relationship,
which addressed how the two parties can work together to implement innovation.
Boston to Bosnia
The majority of Vantages brain trust served significant time with the aforementioned
Harvard Negotiation Project. Roger Fischer, one of the initial founders, set up a
second high-powered organization in 1985, the nonprofit Conflict Management
Group (CMG). CMG served as a think tank for troubled regions worldwide and still
exists today, although it merged with the humanitarian relief organization Mercy
Corps in 2004. Several Vantage senior staffers continue to work extensively with
CMG/Mercy Corps. While the companys business agenda is free of international
peacekeeping duties, it might behoove potential Vantage candidates to know that in
their downtime, Vantage directors share their negotiation skills with organizations
worldwide. Vantage higher-ups have served as mediators between the Sandinistas
and Contras of Nicaragua, as constitutional negotiations in the apartheid-free South
Africa, and as support personnel for talks between the PLO and Israel.
GETTING HIRED
Negotiate your way in the door
Vantage is not an active recruiter and, as a source explains, For a time, we recruited
undergraduates from Harvard and Wellesley, but we have moved away from hiring
undergraduates in the last year or two. That being said, Vantage is always looking
for those with expertise, and job seekers can surf the firms web site to see what jobs
are available. The firm notes that candidates for the consultant position are typically
required to have two to three years of relevant business experience; however, analyst
candidates are usually hired right out of undergrad.
For the consultant interview process, insiders report that a lengthy phone interview is
followed by a full day of interviews with a group of candidates in our offices. Those
interviews include a case study, one-on-ones with consultants and a partner, and a
group interview and activity. This intensive outing is called Interview Day by
Vantage Partners
2006 Vault Inc. 888
many Vantage staffers, which somehow makes it seem more festive. Heres one
veterans perspective on the event: During Interview Day, they bring in a pool of
applicants and have a series of one-on-one and group interviews. Also during the day,
the applicants have a chance to meet with partners and consultants and get a good
sense of what the culture at Vantage is like. For the interviews themselves, were
told that at least one of the interviews is a Vantage-specific case, involving
negotiations, corporate alliances/partnerships or other situations.
OUR SURVEY SAYS
Flip-flops in the office
High praise for the office culture is given by Vantage vets and rookies alike. The casual
atmosphere and trusting environment get especially good reviews. As one consultant
gushes, The people make coming to work every day a joy, while another says,
Vantage has an amazing culturewe all work hard together and have a great time
doing it. Additionally, everyone is extremely supportive of individuals interests
outside of the firm, as well. And, sources claim, the emphasis is on getting the work
done, not jostling for position or impressing colleagues. One outspoken insider
explains that it is a relaxed atmosphere where the focus is on producing quality work
for the client, not posturing and face time in the office. Acertain amount of autonomy
is given to consultants from up on high; another pleased staffer reports that Vantage
does not have a culture of looking over your shoulder. Management basically trusts
people to get their work done and get it done well. Arelaxed attitude at the office may
also benefit those sartorially-challenged employeesa consultant reports that casual
clothes are our dress code. So leave those wingtips at home, another Vantage staffer
says, Flip-flops in the summer are normal. The fun goes beyond the clothing,
though; the firm also offers some fun-time with a weekly Thursday afternoon social
hour.
Flexible lives
Also garnering high praise from Vantage staffers is the companys work/life balance.
One young employee offers this revealing evaluation: Compared to most consulting
firms, work/life balance is excellent at Vantage. Hours are flexibleyou need to be
available to your clients and colleagues, but there are no rules about face time. If
you need to take an appointment during the week or be at home for the cable guy, you
just do it. Making it to the gym is easy toowe can step away for an hour or two,
then just work a little later when we need to.
Vantage Partners
This flexibility seems to be key in making Vantage consultants happy; across the board,
employees report feeling in charge of their own lives. One staffer notes, You are expected
to manage yourself, but there are few barriers to creating a good work and life balance,
while another explains that there is a culture of personal responsibility regarding
workload, again emphasizing the flexibility in terms of working hour arrangements that
the firm allows. Management is also supportive of time needs outside of the normal
workday. An employee with several years at the company asserts, Compared to other
consulting firms, Vantage provides and encourages work/life balance. They expect you to
take vacation days, and are supportive of outside volunteer and other interests.
The road less traveled
Vantage employees report that there is some travel involved with the job, but that most
work is actually done in the office. When pressed for numbers, Vantagites think they
may spend a day or two each week at client sites, averaged over the course of a year. One
insider says, We dont usually stay on client sites for extended periods, while another
hints that some engagements may need more legwork than others. Travel requirements
depend entirely on the project on which you are staffed. I have been fortunate to have
been on projects that require very infrequent travel. So, a project here or there may up
the time away from home but, in general, Vantage consultants stay close to home.
The home base
The Vantage office gets middling marks, with some consultants grumbling over the
location and the partitioned work spaces. Taking these detractors in stride, some
employees find some positives. One observer says, While we live in cube land, the
firm has tried to demonstrate its culture through our work environment. [There is]
plenty of light and comfy corners for casual meetings. The only disadvantages are
that we are located in Brighton, not downtown Boston, and that heavy construction
has been occurring right next door for the past six months. Another consultant, less
affected by the construction, agrees with his co-worker, stating, Consultants have
cubes (no private or shared offices), but the space is well-designed and inviting.
Brighton may also make those used to straphanging on their way to work trade in
their metro passes for a set of keys. A staffer warns that there is minimal public
transportation serving the office, so having a car is a must.
Hierarchy on hiatus
Regarding Vantages structure, The organization is flat, you are either a consultant
or partner; promotion is not a concept here. You can stay forever if you continue to
feel challenged and enjoy the work, an insider explains. All sources are in agreement
Vantage Partners
2006 Vault Inc. 890
here-there are only two levels of demarcated seniority. However, compensation
does rise to reflect ones value to the firm. One consultant says, We have no real
hierarchy in place, so theres no up-or-out expectation, because there isnt really an
up to speak of! Consultants stick around and do increasingly challenging work and
are paid more as they take on more responsibility, but theres not really any formal
promoting. This causes a small amount of consternation, with one employee calling
the promotion policy underdeveloped, while another agrees that the promotion
policy and advancement path are less clear.
About average
As far as compensation goes, Vantage employees arent jumping up and down over
their gargantuan paychecks, but most view it as a trade-off for a better quality of life.
One consultant says, The firm explains our lower compensation package by
highlighting: a) the fewer hours we work than the industry average, and b) the great
culture and lifestyle. Yet most staffers dont seem too down on the numbers,
claiming that salaries fall somewhere within the industry average. As one source
states, With salary and bonus, Vantage seems to be right about average with the
consulting industry. I feel very fairly compensated. Staffers also mention that the
firm offers a very generous 401(k) match and profit sharing with a three-year
vesting period. One consultant points out that the 2005 match was 100 percent up
to 6 percent, and profit sharing was over 4 percent of your salary.
Fun for everyone
While flexible work schedules may be perk enough for some insiders, what really
gets Vantage employees excited is the firms annual Fun Day, which is essentially
a company morale-builder day, taking the form of a new activity every year. A
colleague explains, Our office closes one day each summer and the entire firm takes
a surprise fun trip together, which is then capped off by a huge feast at a partners
house. But perhaps Fun Day isnt equally fun for everyone, as some sources list
weekly snack-time, generous vacation and the ability to work remotely from a
home office in a different city as perks more worthy of mention.
Cutting class
Vantage consultants report that there is no official training in place for new hires. We
have no rigorous, formal training program for our new consultants, says one veteran. The
firm does have a mentoring program that includes direct access to a designated partner,
and more informal approaches to education are encouraged. As one insider explains,
There is no formal training. Orientation includes coaching meetings with the partners and
Vantage Partners
on-the-job learning. However, the firm supports consultants in taking the initiative to gain
the skills we believe we need. This has led to, for example, consultants advocating and
achieving special consultant negotiation trainings with Bruce Patton and a series of
sessions practicing and receiving feedback on our tools and facilitation abilities.
Partner pals
Several Vantage consultants say that access to top-level partners who are experts in their
field is a big bonus. According to one, Vantage partners and consultants are true
colleagues, and a co-worker notes that, due to the small size of the consulting projects
and the manner in which projects are scoped, consultants have many opportunities to
work side-by-side with the partners of the firm. The ability to learn directly from leading
industry experts in negotiation and conflict resolution has been one of the strong
advantages of my job. One rookie complains, however, that its difficult to get access
to partners due to their extensive travel and other commitments.
Behind the curve
Several consultants report that women make up a large part of the Vantage workforce, but
as is typical in the industry, few females make it to the top levels of management. Despite
this, Vantage employees do feel that women are fully supported and encouraged within the
firm. One female consultant expresses that the majority of consultants and analysts are
women. However, among the partner group, there is only one woman. I believe, however,
that there would be no barrier to a woman wanting to stay and advance at Vantage.
Minorities do not seem well represented, though, with one consultant stating, While
Vantage is exemplary in accepting and appreciating women, people of different
sexual orientation, and people of different faith, they are woefully behind the curve
in actively recruiting minorities. There is little word on the street about how
homosexuals and minorities fare at Vantage, but staffers do feel that their workplace
has an open and progressive attitude towards those with lifestyles different from their
own. While there are few minorities in the firms consulting arm, Vantage is a very
welcoming and progressive environment, suggests a source.
Vantage volunteers
The firm maintains an active role in local charities and has a supportive attitude toward
those who want to give back to the community. Volunteer work is conducted in the
Boston area, and interested consultants are able to put together events for fellow workers
to do good. One insider explains that Vantage has an internal volunteer group, which
organizes various volunteer activities within the Boston community, while another
Vantage Partners
2006 Vault Inc. 892
mentions that the company has a biannual firm community service day. Vantage also
contributes as a corporate entitya colleague reports that the firm has money set aside
for donations every year and encourages community service by employees.
Vantage Partners
xxxx
FEATURED
FIRMS
Vaults Featured Firms section features information from Vault
consulting firm sponsors.
Vaults Featured Firms section features information from Vault consulting firm
sponsors. For information on listing your firm, contact corporatesales@vault.com 897
The Bard Group
246 Walnut Street, Suite 302
Newton, MA 02460
Phone: (617) 630-1731
Fax: (617) 630-1769
www.bardgroup.com
LOCATIONS
Newton, MA
MAJOR PRACTICES
We are a national healthcare
management consulting firm. Our core
business focuses on reinventing the
partnership between physicians and
hospitals through the development
and deployment of clinical strategies,
the development of clinical programs,
and clinical and business performance
improvement. Our consulting
engagements bring structure,
consensus building, cultural alignment,
and leadership development to our
clients to help them achieve
breakthrough performance. Our
customer base includes some of the
nation's most prominent academic
medical centers, faculty group
practices, community hospital
systems, and large single and multi-
specialty physician groups.
THE STATS
Partner & Chief Executive Officer: Marc
A. Bard, MD
Partner & Executive Vice President:
Andrew L. Epstein, MD
No. of Employees Firmwide: 15
EMPLOYMENT CONTACT
Daniel Diplacido
Chief Operating Officer
Phone: (617) 630-1731
E-mail: ddiplacido@bardgroup.com
FIRM DESCRIPTION
We are a private national health care
consulting company founded in 1981.
We offer a high-energy boutique
environment that features a select
group of senior-level consultants. Our
consultants are seasoned physician
leaders and health care executives with
significant experience in patient care,
health care management and
consulting, and hold a combination of
advanced degrees, including MDs,
MPHs and MBAs.
Our office setting is informal with loft-
style accommodations. Our associates
enjoy an intense, high-quality work
ethic in a collegial environment that
stresses excellence, intimacy,
innovation and results. We offer an
attractive compensation and benefits
package, and the opportunity to work
and advance professionally in a
creative, collegial and entrepreneurial
environment. We are a fast-growing
and profitable firm, and are actively
recruiting experienced professionals to
join our team.
CLIENTS/ENGAGEMENTS
Some of our clients include
Massachusetts General Hospital Beth
Israel Deaconess Medical Center
(Boston) Columbia College of
Physician and Surgeons Geisinger
Health System Oakwood Healthcare
System Mayo Health System
Cleveland Clinic Kaiser Permanente
St. Luke's Episcopal Health System
Exempla Healthcare Orlando Regional
Hospital Riverside Methodist Hospital
Joslin Diabetes Center Dana Farber
Cancer Institute
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Vaults Featured Firms section features information from Vault consulting firm
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Deutsche Post World Net
Inhouse Consulting
1200 South Pine Island Road
Suite 210
Plantation, FL 33324
Phone: (954) 888-7000
Fax: (954) 424-7763
www.ic.dpwn.com; www.dhl.com
www.dpwn.com
LOCATIONS
Bonn
Fort Lauderdale, FL
Singapore
Deutsche Post World Net has a
presence in over 220 countries
worldwide.
MAJOR PRACTICES
Inhouse Consulting provides top
management consulting services
across all business units of Deutsche
Post World Net with the brands DHL,
Deutsche Post and Postbank in
Strategy
Organization
Business Process
Consultants do not specialize and
remain generalists. Senior project
managers develop a soft focus
towards business units (MAIL,
Express, Logistics, etc.) versus
corporate issues, and possibly a
functional focus (operations, finance,
HR, aviation, sales, etc).
THE STATS
Managing Partner USA: Michael
Terhoeven
Managing Director: Holger Winklbauer
No. of Employees Firmwide: 120
EMPLOYMENT CONTACT
Jeane Hah-Garnett
Head of Recruitment
Phone: (954) 888-7315
E-mail: ic.recruiting@dhl.com
FIRM DESCRIPTION
Inhouse Consulting is the internal top
management consultancy of the Deutsche
Post World Net. With a dynamic team of
over 120 consultants and growing, we
work at the heart of Deutsche Post World
Net in international teams in projects
worldwide. We develop high-impact
strategies for the important business
challenges of today and tomorrow,
working for top executives of all business
divisions. Inhouse Consulting is key in
enhancing the value of Deutsche Post
World Net and DHL. We thrive on global
challenges, speed and change.
We at Deutsche Post World Net, with our
three brands, DHL, Deutsche Post and
Postbank, live for logistics. The excellent
quality we deliver worldwide contributes
to our customers' success. We're on our
way to becoming the world's No. 1
logistics provider with revenue of more
than 62 billion and currently over
500,000 employees in more than 220
countries. Join us and help Deutsche Post
World Net reach its targets with
innovative ideas for logistics, mail and
financial services.
CLIENTS/ENGAGEMENTS
Inhouse Consulting exclusively consults
for Deutsche Post World Net.
Recent projects include:
Building a single framework for
providing airfreight capacities to
satisfy air uplift needs for DHL,
Danzas and Global Mail.
Implementing customer service
benchmaking to improve performance
and enlarge worldwide Key Account
Desks to provide exclusive services
to valuable customers
Opera Solutions
100 Park Avenue
9th floor
New York, NY 10017
Phone: (646) 437 2100
Fax: (646) 437 2101
www.operasolutions.com
LOCATIONS
New York, NY
India
London
Paris
Shanghai
MAJOR PRACTICES
Procurement Optimization (sourcing)
Investment Rationalization (private
equity approach to investment
allocation)
Global Technology & Operations
(business process and technology
offshoring and/or outsourcing)
Growth Analytics
Complexity Reduction (simplifying the
business while generating a
significant bottom-line impact)
THE STATS
CEO: Arnab Gupta
COO: Peter Cummings
CFO: Robert J Bothe
Number of Employees Firmwide: 150
EMPLOYMENT CONTACT
Maria Pugliese
Head, Human Resources
Phone: (646) 437 2100
E-mail: mpugliese@operasolutions.com
FIRM DESCRIPTION
Opera Solutions is a firm focused on
achieving rapid profit improvement for
its clients. We combine the private
equity approach to solving business
problems and generating bottom-line
impact in a short-term horizon. Our
hallmark is operational focus thereby
bridging the gap from strategy to
performance. Everything we do
touches the levers that help clients
grow their revenue, reduce their costs
and bring home improved shareholder
value.
Each of our practice areas is
characterized by deep specialization,
proprietary knowledge, proven
expertise, and senior professionals from
consulting and industry. We serve our
clients from five global locations and
act as one firm while staffing
consultants. Our firm symbolizes an
entrepreneurial culture, which is diverse
and yet tightly focused on generating
impact.
CLIENTS/ENGAGEMENTS
Engagements have been with top-tier
US and European banks and financial
institutions.
2006 Vault Inc. 900
APPENDIX
Visit the Vault Consulting Career Channel at http://consulting.vault.com with
Alphabetical list of firms
A.T. Kearney . . . . . . . . . . . . . . . . . . . .228
Abt Associates Inc. . . . . . . . . . . . . . . .602
Accenture . . . . . . . . . . . . . . . . . . . . . .236
Advisory Board Company, The . . . . .466
Affiliated Computer Services, Inc. . . .607
Alvarez & Marsal . . . . . . . . . . . . . . .615
Analysis Group, Inc. . . . . . . . . . . . . . .474
Aon Consulting . . . . . . . . . . . . . . . . . .630
Applied Value LLC . . . . . . . . . . . . . . .636
Archstone Consulting . . . . . . . . . . . .640
Arthur D. Little . . . . . . . . . . . . . . . . .392
Bain & Company . . . . . . . . . . . . . . . . .86
Bates White . . . . . . . . . . . . . . . . . . . . .645
BearingPoint . . . . . . . . . . . . . . . . . . . .404
Booz Allen Hamilton . . . . . . . . . . . . .104
Boston Consulting Group . . . . . . . . . . .68
Brattle Group, The . . . . . . . . . . . . . . .662
Breakthrough Management Group . . .669
Buck Consultants . . . . . . . . . . . . . . . .673
Cambridge Associates LLC . . . . . . . .328
Candesic . . . . . . . . . . . . . . . . . . . . . .677
Capco . . . . . . . . . . . . . . . . . . . . . . . . .685
Capgemini . . . . . . . . . . . . . . . . . . . . . .362
Celerant Consulting . . . . . . . . . . . . . .689
CFI Group . . . . . . . . . . . . . . . . . . . . . .694
Clark Consulting . . . . . . . . . . . . . . . . .697
Cohn Consulting Group, a Division of J.H.
Cohn LLP . . . . . . . . . . . . . . . . . . . . .702
Cornerstone Research . . . . . . . . . . . . .422
Corporate Executive Board . . . . . . . .432
Corporate Value Associates . . . . . . . .705
CRA International . . . . . . . . . . . . . . . .334
Dean & Company . . . . . . . . . . . . . . . .494
Deloitte Consulting LLP . . . . . . . . . .174
Consultants, Inc. . . . . . . . . . . . . . . .348
Droege & Comp. . . . . . . . . . . . . . . . .714
Easton Associates, LLC . . . . . . . . . . .723
Edgar, Dunn & Company . . . . . . . . . .730
Exeter Group . . . . . . . . . . . . . . . . . . .734
Fair Isaac Corporation . . . . . . . . . . . .737
First Consulting Group . . . . . . . . . . .742
First Manhattan Consulting Group . . .438
FTI Consulting . . . . . . . . . . . . . . . . . .588
Gallup Consulting . . . . . . . . . . . . . . . .482
Gartner, Inc. . . . . . . . . . . . . . . . . . . . .254
Giuliani Partners LLC . . . . . . . . . . . .502
Greenwich Associates . . . . . . . . . . . . .752
Haverstick Consulting, Inc. . . . . . . . .757
Hay Group . . . . . . . . . . . . . . . . . . . . .763
Health Advances . . . . . . . . . . . . . . . . .769
Hewitt Associates . . . . . . . . . . . . . . .270
Huron Consulting Group . . . . . . . . . .538
IBM Global Business Services . . . . . .212
IMS Health Incorporated . . . . . . . . . .779
Kaiser Associates . . . . . . . . . . . . . . . .785
Katzenbach Partners LLC . . . . . . . . .280
Kurt Salmon Associates . . . . . . . . . . .448
L.E.K. Consulting . . . . . . . . . . . . . . . .184
LECG . . . . . . . . . . . . . . . . . . . . . . . . .386
m.a.partners, a part of the Detica Group 797
Marakon Associates . . . . . . . . . . . . . .196
Mars & Co . . . . . . . . . . . . . . . . . . . . .342
McKinsey & Company . . . . . . . . . . . . .50
Mercator Partners LLC . . . . . . . . . . . .807
Mercer Human Resource Consulting 162
Mercer Management Consulting . . . .136
Mercer Oliver Wyman . . . . . . . . . . . .150
Milliman, Inc. . . . . . . . . . . . . . . . . . . .811
Mitchell Madison Group . . . . . . . . . .562
Monitor Group . . . . . . . . . . . . . . . . . .122
Navigant Consulting, Inc. . . . . . . . . . .398
NERA Economic Consulting . . . . . . .316
Index of Firms
Novantas . . . . . . . . . . . . . . . . . . . . . . .814
OC&C Strategy Consultants . . . . . . .528
PA Consulting Group . . . . . . . . . . . . .572
Parthenon Group, The . . . . . . . . . . . .170
Protiviti Inc. . . . . . . . . . . . . . . . . . . . .824
PRTM . . . . . . . . . . . . . . . . . . . . . . . . .506
Putnam Associates . . . . . . . . . . . . . . .552
Right Management . . . . . . . . . . . . . .830
Roland Berger Strategy Consultants .260
Segal Company, The . . . . . . . . . . . . .835
Simon Kucher & Partners . . . . . . . . .839
Stern Stewart & Co. . . . . . . . . . . . . . .460
Stockamp & Associates, Inc. . . . . . . .850
Strategic Decisions Group . . . . . . . . .518
Strategos . . . . . . . . . . . . . . . . . . . . . . .861
Towers Perrin . . . . . . . . . . . . . . . . . . .294
Trinity Partners, LLC . . . . . . . . . . . . .869
Value Partners . . . . . . . . . . . . . . . . . .876
Vantage Partners . . . . . . . . . . . . . . . .885
Watson Wyatt Worldwide . . . . . . . . . .306
ZS Associates . . . . . . . . . . . . . . . . . .372
Firms that are
subsidiaries of larger
companies
Aon Consulting . . . . . . . . . . . . . . . . . .630
Arthur D. Little . . . . . . . . . . . . . . . . .392
Cohn LLP . . . . . . . . . . . . . . . . . . . . .702
Gallup Consulting . . . . . . . . . . . . . . . .482
Mercer Management Consulting . . . .136
Protiviti Inc. . . . . . . . . . . . . . . . . . . . .824
Firms with major HR
practices
Accenture . . . . . . . . . . . . . . . . . . . . . .236
Alvarez & Marsal . . . . . . . . . . . . . . .615
Aon Consulting . . . . . . . . . . . . . . . . . .630
Cohn LLP . . . . . . . . . . . . . . . . . . . . .702
Hay Group . . . . . . . . . . . . . . . . . . . . .763
Milliman, Inc. . . . . . . . . . . . . . . . . . . .811
Towers Perrin . . . . . . . . . . . . . . . . . . .294
Public firms
Accenture . . . . . . . . . . . . . . . . . . . . . .236
BearingPoint . . . . . . . . . . . . . . . . . . . .404
Capgemini . . . . . . . . . . . . . . . . . . . . . .362
Consultants, Inc. . . . . . . . . . . . . . . .348
Fair Isaac Corporation . . . . . . . . . . . .737
First Consulting Group . . . . . . . . . . .742
FTI Consulting . . . . . . . . . . . . . . . . . .588
Gartner, Inc. . . . . . . . . . . . . . . . . . . . .254
Appendix
2006. Vault Inc. 904
LECG . . . . . . . . . . . . . . . . . . . . . . . . .386
Navigant Consulting, Inc. . . . . . . . . . .398
Firms with non-U.S.
headquarters
Alvarez & Marsal . . . . . . . . . . . . . . .615
Candesic . . . . . . . . . . . . . . . . . . . . . .677
Capgemini . . . . . . . . . . . . . . . . . . . . . .362
Droege & Comp. . . . . . . . . . . . . . . . .714
L.E.K. Consulting . . . . . . . . . . . . . . . .184
Roland Berger Strategy Consultants .260
Value Partners . . . . . . . . . . . . . . . . . .876
Firms with 10,000+
employees
Accenture . . . . . . . . . . . . . . . . . . . . . .236
BearingPoint . . . . . . . . . . . . . . . . . . . .404
Capgemini . . . . . . . . . . . . . . . . . . . . . .362
Firms with fewer than
1,000 employees
Alvarez & Marsal . . . . . . . . . . . . . . .615
Analysis Group, Inc. . . . . . . . . . . . . . .474
Applied Value LLC . . . . . . . . . . . . . . .636
Archstone Consulting . . . . . . . . . . . .640
Bates White . . . . . . . . . . . . . . . . . . . . .645
Brattle Group, The . . . . . . . . . . . . . . .662
Breakthrough Management Group . . .669
Cambridge Associates LLC . . . . . . . .328
Candesic . . . . . . . . . . . . . . . . . . . . . .677
Capco . . . . . . . . . . . . . . . . . . . . . . . . .685
Cohn LLP . . . . . . . . . . . . . . . . . . . . .702
Cornerstone Research . . . . . . . . . . . . .422
Dean & Company . . . . . . . . . . . . . . . .494
Consultants, Inc. . . . . . . . . . . . . . . .348
Droege & Comp. . . . . . . . . . . . . . . . .714
Edgar, Dunn & Company . . . . . . . . . .730
Exeter Group . . . . . . . . . . . . . . . . . . .734
Haverstick Consulting, Inc. . . . . . . . .757
Health Advances . . . . . . . . . . . . . . . . .769
Kurt Salmon Associates . . . . . . . . . . .448
L.E.K. Consulting . . . . . . . . . . . . . . . .184
m.a.partners, a part of the Detica Group 797
Marakon Associates . . . . . . . . . . . . . .196
Mars & Co . . . . . . . . . . . . . . . . . . . . .342
Monitor Group . . . . . . . . . . . . . . . . . .122
Novantas . . . . . . . . . . . . . . . . . . . . . . .814
Appendix
PRTM . . . . . . . . . . . . . . . . . . . . . . . . .506
Stockamp & Associates, Inc. . . . . . . .850
Strategic Decisions Group . . . . . . . . .518
Strategos . . . . . . . . . . . . . . . . . . . . . . .861
ZS Associates . . . . . . . . . . . . . . . . . .372
Firms with fewer than 5
offices
Bates White . . . . . . . . . . . . . . . . . . . . .645
Dean & Company . . . . . . . . . . . . . . . .494
Exeter Group . . . . . . . . . . . . . . . . . . .734
Health Advances . . . . . . . . . . . . . . . . .769
Strategos . . . . . . . . . . . . . . . . . . . . . . .861
Firms with 50+ offices
A.T. Kearney . . . . . . . . . . . . . . . . . . . .228
Accenture . . . . . . . . . . . . . . . . . . . . . .236
Aon Consulting . . . . . . . . . . . . . . . . . .630
BearingPoint . . . . . . . . . . . . . . . . . . . .404
Boston Consulting Group . . . . . . . . . . .68
Capgemini . . . . . . . . . . . . . . . . . . . . . .362
Gartner, Inc. . . . . . . . . . . . . . . . . . . . .254
Hay Group . . . . . . . . . . . . . . . . . . . . .763
Milliman, Inc. . . . . . . . . . . . . . . . . . . .811
Protiviti Inc. . . . . . . . . . . . . . . . . . . . .824
Towers Perrin . . . . . . . . . . . . . . . . . . .294
Appendix
2006. Vault Inc. 906
Visit the Vault Consulting Career Channel at http://consulting.vault.com with
Naomi Newman
Naomi Newman is the Consulting Editor at Vault. She graduated with a BA in
American Studies from Barnard College, with a concentration in Economics.
About the Author

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Vault Guide to the Top 50

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