the media’s watching vault! here’s a sampling of our coverage. 50 consulting... · the...

The media’s watching Vault! Here’s a sampling of our coverage.

“Unflinching, fly-on-the-wall reports... No one gets past companypropaganda to the nitty-gritty inside dope better than theseguys.”— Knight-Ridder newspapers

“Best way to scope out potential employers...Vault has sharpinsight into corporate culture and hiring practices.”— Yahoo! Internet Life

“Vault has become a de facto Internet outsourcer of thecorporate grapevine.” — Fortune

“For those hoping to climb the ladder of success, [Vault’s]insights are priceless.”— Money.com

“Another killer app for the Internet.”— New York Times

“If only the company profiles on the top sites would list the ‘real’information... Sites such as Vault do this, featuring insights andcommentary from employees and industry analysts.” — The Washington Post

“A rich repository of information about the world of work.”— Houston Chronicle

TOP50CONSFIRMS

VAULT GUIDE TO THE

TOP 50CONSULTINGFIRMS

© 2002 Vault Inc.

TOP50CONSFIRMS

VAULT GUIDE TO THE

TOP 50CONSULTINGFIRMS

DOUGLAS CANTOR AND CLAY RISEN

© 2002 Vault Inc.

Copyright © 2002 by Vault Inc. All rights reserved.

All information in this book is subject to change without notice. Vault makes no claims as tothe 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 VaultInc.

Vault, the Vault logo, and “the insider career networkTM” are trademarks of Vault Inc.

For information about permission to reproduce selections from this book, contact Vault Inc.,P.O. Box 1772, New York, New York 10011-1772, (212) 366-4212.

Library of Congress CIP Data is available.

ISBN 1-58131-165-6

Printed in the United States of America

ACKNOWLEDGEMENTS

Thanks to everyone who had a hand in making this book possible,especially Todd Kuhlman, Marcy Lerner, Ed Shen and Rob Schipano.We are also extremely grateful to Vault's entire staff of writers, editorsand interns for all their help in the editorial and production processes.

Vault also would like to acknowledge the support of Matt Doull, AhmadAl-Khaled, Lee Black, Eric Ober, Hollinger Ventures, Tekbanc, NewYork City Investment Fund, Globix, Hoover's, Glenn Fischer, MarkHernandez, Ravi Mhatre, Carter Weiss, Ken Cron, Ed Somekh, IsidoreMayrock, Zahi Khouri, Sana Sabbagh, and other Vault investors, as wellas our family and friends.

In order to ensure that our research was thorough and accurate, werelied on a number of people within the consulting firms that weprofiled. A special thanks to all of the recruiting managers, publicrelations executives, marketing professionals and consultants whograciously provided feedback whenever we needed it.

To the 1,100-plus consultants who took the time to be interviewed or tocomplete our survey, we could never thank you enough. Your insightsabout life inside the top consulting firms were invaluable, and yourwillingness to speak candidly will be a great service to job seekers andcareer changers for years to come.

Vault Guide to the Top 50 Consulting Firms

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L I B R A R Y

INTRODUCTION 1A Guide to This Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2How We Wrote This Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

VAULT PRESTIGE RANKINGS 7Ranking Methodology - Consulting Top 50 . . . . . . . . . . . . . . . . . . . . . . .9The Vault 50 · 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Prestige Rankings by Practice Area . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

OVERVIEW OF CONSULTING 15The Scoop

What is Consulting? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17Industry History and Trends: 2002-2003 . . . . . . . . . . . . . . . . . . . . . . . .20Consulting Categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

Getting Hired

Breaking In . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31The Resume/Behavioral Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . .34The Case Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37Guesstimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41Brainteasers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44Featured Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47Featured Recruiters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49

VAULT TOP 50 51

1 McKinsey & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .522 The Boston Consulting Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . .623 Bain & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .724 Booz Allen Hamilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .825 Monitor Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92

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Table of Contents

© 2002 Vault Inc.xii C A R E E RL I B R A R Y

6 Mercer Management Consulting . . . . . . . . . . . . . . . . . . . . . . . . . .1007 IBM Global Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1068 Deloitte Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1129 Accenture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12010 Gartner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13011 A.T. Kearney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13612 PwC Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14213 KPMG Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15214 Cap Gemini Ernst & Young . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16015 Marakon Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16816 Hewitt Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17617 Mercer Human Resource Consulting . . . . . . . . . . . . . . . . . . . . . . .18218 Towers Perrin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18619 Electronic Data Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19220 The Parthenon Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20021 Roland Berger Strategy Consultants . . . . . . . . . . . . . . . . . . . . . . . .20422 L.E.K. Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21223 DiamondCluster International . . . . . . . . . . . . . . . . . . . . . . . . . . . .22024 Computer Sciences Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . .22825 Oliver, Wyman & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23426 Watson Wyatt Worldwide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24227 Sapient Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24628 American Management Systems . . . . . . . . . . . . . . . . . . . . . . . . . .25429 Kurt Salmon Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26230 Stern Stewart & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27031 Mars & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27432 Hay Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28033 Grant Thornton LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28434 Charles River Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28835 ZS Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29436 Perot Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30037 Dean & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30438 Andersen's Business Consulting Practice . . . . . . . . . . . . . . . . . . . .31039 PRTM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32040 PA Consulting Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32641 Keane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .332


Table of Contents

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L I B R A R Y

42 First Manhattan Consulting Group . . . . . . . . . . . . . . . . . . . . . . . . .33643 Logica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34044 The Corporate Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . . .34645 Swander Pace & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35046 Commerce One Global Services . . . . . . . . . . . . . . . . . . . . . . . . . .35447 Aon Consulting Worldwide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35848 Aquent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36249 Value Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36650 Greenwich Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .370

BEST OF THE REST 375

Computer Task Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .376First Annapolis Consulting, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .380First Consulting Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .384Haverstick Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .388Integral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .394Lante . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .398Sibson Consulting (Segal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .402Technology Solutions Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . .406

APPENDIX 409

Industry Buzzwords . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .411Index of Consulting Firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .417About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .421

Visit the Vault Consulting Career Channel at http://consulting.vault.com — withinsider firm profiles, message boards, the Vault Consulting Job Board and more. 1C A R E E R

L I B R A R Y

You’re probably reading this book because you’re interested in a career inconsulting. Well, you’ve got your work cut out for you — landing aconsulting job is a tough assignment. Even during the boom years of the1990s, the supply of job applicants far outweighed the demand; in today’seconomy, the degree of difficulty has increased exponentially. Indeed,getting in the door at top firms can be a herculean challenge, even if you arearmed with an impressive GPA, a degree from one of the finest colleges oruniversities, and the ability to stay cool and collected under intense pressure.Every year, tens of thousands of resumes flow into the recruiting departmentsat top firms, but only a handful of the candidates receive an offer letter.

So how do you get past the front gate? How can you improve your chancesof receiving an invitation to the big party? The answer hearkens back to anage-old piece of advice: do your homework. Consulting recruiters won’t hireyou just because of your high grades or top-tier schooling or extensivevolunteerism. These things matter, but they won’t get you the job. You needto do your homework.

Consider this book a starting point for all of your research, whether it beindustry-related or about a specific firm. In it, you will find two generaltypes of information. First, we give an overview of the consulting industryand some insight into the workings of the hiring process. Second, weprovide in-depth profiles of the top consulting firms. Each profile is theresult of painstaking research and detailed feedback offered by consultantswithin the firms.

This year marks the second time we have ranked consulting firms in order oftheir prestige. We surveyed more than 1,100 practicing consultants, askingthem to give a rating of each firm with which they were familiar. There aredefinite advantages to working at a firm with a great reputation — such firmsoften attract a higher caliber of clients and projects. Addionally, consultantsat very prestigious firms often find their future job prospects to be brighter.But remember that prestige should be just one reason to choose a firm —though for many consultants, it is the biggest reason.

Introduction


Introduction

A Guide to This Guide

If you’re wondering how our entries are organized, read on. Here’s a handyguide to the information you’ll find packed into each firm profile in this book.

Firm facts

• Locations: A listing of the firm’s offices, with the city of its headquartersbolded. For firms with a relatively small number of offices, all citiesare included.

• Practices Areas: Official departments that employ a significant portion ofthe firm’s consultants. Practice areas are listed in alphabetical orderregradless of their size and prominence.

• Uppers and Downers: Good points and bad points of the firm, as gleanedfrom associate interviews and surveys, as well as other research. Uppersand downers are impressionistic perceptions and are not based on statistics.

• Employment Contact: The person, address or web site that the firmidentifies as the primary avenue to receive resumes or to answer questionsabout 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 asked them to detail their opinions and observations about firms otherthan their own, and collected a sampling of these comments in the first-everversion of The Buzz in the Vault Guide to the Top 50 Consulting Firms.

When selecting The Buzz, we included quotes most representative of thecommon outside perceptions of the firms, even if in our opinion the quotesdid not accurately or completely describe the firm. Please keep in mind whenreading The Buzz that it’s often more fun for outsiders to trash than praise acompeting consulting firm. Nonetheless, The Buzz can be a valuable meansto gauge a firm’s reputation in the consulting industry, or at least to detectcommon misperceptions.

The stats

• Employer Type: The firm’s classification as a publicly traded company,privately held company or subsidiary.

© 2002 Vault Inc.2 C A R E E RL I B R A R Y


Introduction

• Stock Symbol: The stock ticker symbol for a public company.

• Stock Exchange: The exchange on which a public company’s stock is traded.

• Chairman, CEO, etc.: The name and title of the leader of the firm.Sometimes more than one name, or the name of the head of the firm’sconsulting business, may be provided.

• No. of Employees: The total number of employees, including consultantsand other staff, at a firm in all offices (unless otherwise specified). Somefirms do not disclose this information; numbers for the most recent year theinformation is available (if at all) is included.

• Revenues: The gross sales (in U.S. dollars) the firm generated in thespecified fiscal year(s). Some firms do not disclose this information; numbersfor the most recent year the information is available (if at all) is included.

The profiles

The profiles are divided into three sections: The Scoop, Getting Hired andOur Survey Says.

• The Scoop: The firm’s history, clients, recent firm developments and otherpoints of interest.

• Getting Hired: Qualifications the firm looks for in new associates, tips ongetting hired and other notable aspects of the hiring process.

• Our Survey Says: Actual quotes from surveys and interviews with currentconsultants of the firm on topics such as the firm’s culture, feedback, hours,travel requirements, pay, training and much more. Profiles of some firmsdo not include an Our Survey Says section.

Best of the rest

In addition to profiles of the Top 50 firms, we’ve also included informationon a selection of consulting firms that did not make the list this year.


L I B R A R Y


Introduction

How We Wrote This BookThough the consulting industry is growing more complex all the time, wehave made every effort to make the Vault Guide as straightforward aspossible. Here’s what you need to know before proceeding.

What a difference a year makes

If you read the 2002 Vault Guide to the Top 50 Consulting Firms, you mightnotice that this year’s edition features a different list of firms. Where didfirms from last year’s edition go, you ask? Some vanished altogether. Forexample, Cambridge Technology Partners (No. 23 in prestige in 2001) andiXL (No. 48) were gobbled up by other companies and no longer meritmention as independent players. Others were hit very, very hard by the dot-com implosion. This is especially true in the case of e-consultancies likeScient (No. 28 last year), Razorfish (No. 29) and Viant (No. 42). But to befair, it wasn’t just the newbies who fell out of favor. Arthur D. Little, theworld’s oldest management consulting firm and No. 16 in the 2001 Top 50,recently ended its 116-year run by going bankrupt and selling its assets pieceby piece.

ADL’s fate is a good indication of the state of the industry. A lot can changein a year. Indeed, while the top few firms remain the same from last year, therehas been considerable movement throughout the rest of the prestige rankings.

The consultant’s dictionary

Consultants just love to use jargon. Not so Vault. We have done our best toeliminate any references to “paradigms,” “thought leadership” or“maximizing value propositions.” Nor will you read any word that has beentransmogrified into a different and improper part of speech. People do notand should not “synergize” anything, and the word “impactful” does not evenappear in the Oxford English Dictionary. Most importantly, we have cut outthe thousands of mentions of the phrase “work hard/play hard” fromconsultants’ descriptions of their firms’ corporate culture.

If you’re interested in brushing up on the latest consulting vocabulary, wesuggest you consult the Industry Buzzwords section at the end of this book.



Introduction

Quotes in this guide

The topic of quotes from our employee surveys and interviews brings upanother key point: The opinions expressed in this book do not necessarilyreflect those of every employee at a given firm. However, you can beconfident that what you read in the Vault Guide is the consensus view amongthat firm’s consultants. We surveyed and interviewed a large number ofpeople — compiling copious amounts of statistical data on various quality-of-life categories to assist us — to come up with the most accurate picturepossible of life at the Top 50.


L I B R A R Y

For detailed 40- to 50-page insider reports on top consultingfirms like McKinsey, BCG, Bain, Deloitte Consulting, Accentureand more, get Vault Employer Profiles. Go tohttp://consulting.vault.com.

Make sure you're prepared for your case interviews. Get caseframeworks, strategies, tips, and detailed step-by-step analysisof actual cases used in interviews with the Vault Guide to theCase Interview and the Vault Case Interview Workbook. Forone-on-one coaching, use Vault Case Interview Prep. Go tohttp://consulting.vault.com.

TOP50CONSFIRMS

THE VAULTPRESTIGERANKINGS


L I B R A R Y


The Vault Prestige Rankings

RANKING METHODOLOGY — CONSULTING TOP 50

The 2002 Consulting Survey is Vault’s most ambitious to date, with morethan 1,100 consultants rating the top 50 consulting firms around the world.Our goal was threefold: gather informed feedback from consultants at topfirms, analyze the results using criteria relevant to job seekers, and condensethe results into an accurate, objective and useful career guide.

After creating an online survey addressing issues such as work hours,compensation and diversity, to name just a few, we defined our targetedsurvey population. Using knowledge obtained from prior Vault surveys,conversations with consulting professionals, and new industry research wecompiled for 2002, we approached top consulting firms and asked them todistribute the survey to their consultants. 1,107 consultants took Vault’ssurvey, giving us a detailed, insider’s perspective on life at the industry’s mostprominent firms.

Additionally, we asked each respondent to rate the consulting firms on a scaleof 1 to 10 based on prestige. They also made brief comments on other firms,sharing their perception of each firm from the outside. (These impressions arerepresented in the book as The Buzz).

Vault collected all of the survey results and averaged the score for each firm.For objectivity’s sake, consultants were not allowed to rank their own firms.The firms were then ranked in order, starting with the highest average prestigescore to determine the Vault Top 50.

We understand that there are problems inherent in any prestige ranking.However, we found that the rankings typically paralleled conventionalwisdom — with a few interesting exceptions. Remember that in the Top 50,Vault is not ranking firms by profit, size, lifestyle or quality — we are rankingthe most prestigious consulting firms based on the perceptions of currentlypracticing consultants at peer firms.


L I B R A R Y

For detailed 40- to 50-page insider reports on top consultingfirms like McKinsey, BCG, Bain, Deloitte Consulting, Accentureand more, get Vault Employer Profiles. Go tohttp://consulting.vault.com

RANK FIRM

1 McKinsey & Company

HEADQUARTERS

New York, NY8.654

2 The Boston Consulting Group Boston, MA8.119

3 Bain & Company Boston, MA7.563

4 Booz Allen Hamilton McLean, VA6.747

5 Monitor Cambridge, MA6.343

6 Mercer Management Consulting New York, NY6.28

7 IBM Global Services Somers, NY6.031

8 Deloitte Consulting New York, NY5.936

9 Accenture New York, NY5.932

10 Gartner Stamford, CT5.766

11 A.T. Kearney Plano, TX5.728

12 PwC Consulting* New York, NY5.713

13 KPMG Consulting McLean, VA5.446

14 Cap Gemini Ernst & Young New York, NY5.394

15 Marakon Associates New York, NY5.08

16 Hewitt Associates Lincolnshire, IL4.772

17 Mercer Human Resources Consulting New York, NY4.747

18 Towers Perrin New York, NY4.741

19 Electronic Data Systems Plano, TX4.687

20 The Parthenon Group Boston, MA4.68

21 Roland Berger - Strategy Consultants New York, NY4.655

22 L.E.K. Consulting Boston, MA4.591

23 DiamondCluster International Chicago, IL4.459

24 Computer Sciences Corporation El Segundo, CA4.111

25 Oliver, Wyman & Company New York, NY4.1

SCORE

1

2

3

4

8

6

13

10

5

9

12

7

14

11

21

15

18

20

19

30

38

25

34

26

40

RANK2002

The Vault 50 • 2003[ The 50 most prestigious consulting firms]


* Acquisition by IBM announced July 2002

RANK FIRM

26 Watson Wyatt Worldwide

HEADQUARTERS

Washington, DC4.066

27 Sapient Corporation Cambridge, MA4.06

28 American Management Systems Fairfax, VA3.992

29 Kurt Salmon Associates Atlanta, GA3.981

30 Stern Stewart & Company New York, NY3.905

31 Mars & Company Greenwich, CT3.902

32 Hay Group Philadelphia, PA3.839

33 Grant Thornton LLP Chicago, IL3.818

34 Charles River Associates Boston, MA3.747

35 ZS Associates Evanston, IL3.698

36 Perot Systems Plano, TX3.642

37 Dean & Company Vienna, VA3.623

38 Andersen's Business Consulting Practice Chicago, IL3.582

39 PRTM Waltham, MA /Mountain View, CA3.535

40 PA Consulting London UK3.518

41 Keane Boston, MA3.493

42 First Manhattan Consulting Group New York, NY3.421

43 Logica London, UK3.413

44 The Corporate Executive Board Washington, DC3.328

45 Swander Pace San Francisco, CA3.143

46 Commerce One Global Services Pleasanton, CA2.973

47 Aon Chicago, IL2.816

48 Aquent Boston, MA2.815

49 Value Partners Milan, Italy2.7

50 Greenwich Associates Greenwich, CT2.63

SCORE

27

22

41

37

24

39

31

36

45

NR

35

43

17

44

NR

NR

33

NR

NR

NR

46

49

NR

NR

NR

RANK2002


L I B R A R Y





PRESTIGE RANKINGS BY PRACTICE AREA

In addition to overall prestige, Vault also asked consultants to rank firms interms of the prestige of three general areas of business focus: strategy,information technology and human resources. Consultants were allowed tovote for up to three firms as the most prestigious in each practice area.

These charts indicate the rankings in each of the practice areas, as well as thetotal percentage of votes cast in favor of each firm. (As long as at least oneconsultant voted for more than one firm, no firm could garner 100 percent ofthe votes; if every consultant had voted for three firms, the maximum a firmcould have received would be 33.3 percent.)


1 30.68McKinsey & Company

RANK %FIRM

2 23.84The Boston Consulting Group

3 14.18Bain & Company

4 8.25Booz Allen Hamilton

5 3.32A.T. Kearney

6 2.9Accenture

7 2.87Monitor Group

8 1.76Deloitte Consulting

9 1.34Mercer Management Consulting

10 1.18KPMG Consulting

1

RANK2002

2

3

4

6

5

7

8

7

11

Strategy Consulting


L I B R A R Y



1 29.73Accenture

RANK %FIRM

2 18.42IBM Global Services

3 9.00Electronic Data Systems

4 6.72PwC Consulting*

5 5.97Cap Gemini Ernst & Young


7 2.94KPMG Consulting

8 2.89Computer Sciences Corporation

9 2.65Sapient Corporation

10 2.56American Management Systems

1

RANK2002

2

6

3

4

5

7

9

11

10

IT Consulting





1 18.24Towers Perrin

RANK %FIRM

2 17.16Hewitt Associates

3 9.51Hay Group

4 8.82Watson Wyatt Worldwide

5 8.33Mercer Human Resources Consulting

6 6.08Mercer Management Consulting


8 3.33Accenture

9 2.84PwC Consulting*

10 2.06Cap Gemini Ernst & Young

2

RANK2002

1

5

4

3

7(tie)

7(tie)

8

6

10

Human Resources Consulting

Want to know in detail what consultants think about top firms?Get detailed breakdowns of Vault's 2003 prestigerankings by school (undergraduate and business), location,practice area and more with the 2003 Vault Consulting FirmSurvey Corporate Research Report. Go towww.vault.com/consultingsurvey


TOP50CONSFIRMS

OVERVIEWOF THECONSULTINGINDUSTRY


L I B R A R Y


L I B R A R Y

What is Consulting?

A giant industry, a moving target

Consulting is an industry without a fixed identity. Not only do firms rebrandthemselves nearly every year, but areas of specialty (or “practice areas”)within the firms change frequently as well. The market for consultingservices is similarly dynamic. With constantly shifting corporate needs,mergers and recessions, and with new industries on the make, the demand forconsulting services is as unpredictable as the stock market.

The term “consulting” can mean many things, most of which involve thegiving of professional advice. One “consults” a business the same way oneadvises friends or family in need. When seen through that lens, it is clear howfundamental consulting is to business. Most people, however, are mystifiedby the actual job, the day-to-day responsibilities, the work itself. And whywouldn’t they be? Consulting terminology is notoriously unclear to mostliterate humans. Terms like strategy, process and change management arevague and ambiguous and only meaningful, it seems, to insiders who knowhow to decode them. So what exactly is consulting?

For starters, consulting is not about walking into a client site, throwing downyour briefcase and saying, “Look at the inefficiency. It’s everywhere! Haveyou no shame?” Spotting a client’s problems is only half the battle (Mostpeople with a fair amount of common sense and an outsider’s perspectivecould spot a client’s problems just as quickly.) The job of the consultant,therefore, isn’t just about knowing what’s wrong, but figuring out how tomake it right. Solutions are the hard part, and not because they are in shortsupply. Good consultants never lack solutions, but implementing even one ofthem in a corporate environment can be a major undertaking fraught withpolitical and operational obstacles. That is key to consulting: getting past thecorporate obstacles. Overcoming institutional inertia. And working with aclient team that takes your involvement personally, because your involvementimplies that they needed outside help.

Hire the consultants, fast

Companies hire consultants for a number of reasons. But whatever thosereasons are, they’re bound to be compelling — because consultants are very

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costly. Given travel expenses, hotel bills and project fees, per-hour prices forconsultants can easily climb into the $500-per-hour range.

Every consulting project springs from a client’s need for help, or at least thekind of help that short-term, internal hiring can’t solve. Some clients, forexample, need to overhaul their entire IT infrastructure, yet they’re out of touchwith the latest back-end systems, or they don’t have the staff resources for sucha large project. Other clients may be merging, but they lack any experience withpost-merger staffing procedures, and they need a neutral party to mediate.Some clients may need an outsider’s perspective on a plant shutdown.

Consultants get hired for political reasons too. Particularly in Fortune 500companies, launching big projects can be very cumbersome. In order for asingle dollar to be spent on such a project, most companies require seniorexecutive approval. And without a major consultancy attached to the project,approval can be hard to attain. But once a consulting firm steps into thepicture, everyone involved has plausible deniability in the event that theproject fails.

Second, even if a giant project gets the green light, there’s no guaranteeing itwill be implemented. The reason? Simple bureaucratic inertia. Seniorexecutives lose interest. Lower-level managers move on to other, morepressing issues. In short, companies lose their focus. By bringing inconsultants to oversee large projects, companies ensure that someone isalways keeping his eye the ball. And in many cases, the correct solution maybe quite evident to many, but having it confirmed by an outside party makesimplementing a plan politically much easier.

In the era of downsizing, consultants have another political use. Companieswith an itch to fire a percentage of their workforce often like to bring inconsultants. When the consultants recommend a workforce reduction, thecompany can fire at will, gratefully blaming (some might argue hidingbehind) their hired guns for the downsizing.

There is, of course, the ever-present (and most important) motive for hiringconsultants. Money. Consultants whose suggestions don’t make (or save)money are quickly shown the door.

All about the skill sets

Consultants focus their energies in a wide variety of practice areas andindustries. Their individual jobs, from a macro level, can be as different asone could imagine. While a supply chain consultant advises a client about



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lead times in its production facility, another consultant is creating a trainingprotocol for a new software package. What could be more different?

Despite the big-picture differences, however, consultants’ day-to-day skillsets are, by necessity, very similar. All consultants generally need to be well-versed in client management tactics. All consultants must be comfortablewith spreadsheets, not to mention long, often last-minute presentations (Exceland PowerPoint expertise is essential to the job). All consultants need to haveplenty of analytical ability, a preference for teamwork, and a passion forplanning and implementing mammoth corporate initiatives. And allconsultants need to be prepared to pull the occasional all-nighter, becauseclients pay a lot of money and don’t want to hear “Geez, we really tried tomake it, but, um, it’s going to be late.” Nothing can be late in consulting.

Consultants are a back-room breed of professional. In joint projects withtheir clients, they do much of the work and can expect little to none of therecognition. All consultants must deliver bottom-line value, and may spendcountless hours huddled in cramped spaces to do it. The consultant’s job,aside from mastering strange subjects quickly, is to create presentations, writecode, design extremely intricate new processes, and sometimes simply sitdown with a senior client executive and give a progress report.

Sometimes, what an average consultant does is even lower in profile: codingin a newly learned computer language, trying out PowerPoint skills tocompile presentations, writing memos, and completing other fairly routinetasks. In any case, the boundaries of the job are virtually limitless. Eachproject carries with it a new task, a new spreadsheet configuration, a newlydeveloped type of sales conference or an entirely new way of thinking aboutbusiness. The client, meanwhile, stands by and watches you work. Are youlightning quick? Does your fancy degree actually translate into soliddeliverables? Are you twice as good as current employees? You’d better be,because you’ll probably cost at least twice as much!


L I B R A R Y

Want more inside information on consulting careers? Get the Vault Career Guide to Consulting, with day-in-the-lifeprofiles, career paths, salary information and more, athttp://consulting.vault.com


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Industry History and Trends: 2002-2003

A brief history of consulting

People have traded wisdom for pay since the dawn of time. Nonetheless,consulting as big business only came into being around the start of the 20th century.

The first consultants drew from their engineering backgrounds to conducttime- and motion-type projects for their clients. When James “Mac”McKinsey, a University of Chicago professor, established his “accountingand engineering advisors” firm, he offered a proposition similar to consulting.Over time, he developed a unique, integrated approach for his clients, whichhe called his “General Survey.”

Instead of hiring traditional engineers, McKinsey recruited experiencedexecutives and trained them in a framework of analysis. The new approachconsidered goals, strategies, policies, organization, facilities, procedures andpersonnel. In the late 1950s, a number of other consulting firms emergedwith focused strategies and novel frameworks.

The most notable innovator, The Boston Consulting Group (BCG), followedwork with a semiconductor manufacturer client and developed the experiencecurve. This idea proposed that declines in most industries were directlycorrelated to cost as a function of cumulative experience. BCG later extendedits original concept by developing the growth share matrix, a tool thatassesses a company’s attractiveness within an industry.

The present day

Consultants and their clients are in a state of constant flux.. The typical clientnow requires more sophistication from its consultants’ in-house skills and ismore demanding in its consulting projects. For example, some clients usetheir own in-house strategy groups and have clear ideas of what their businessmeans and the direction in which to head. This increased sophisticationmeans a number of new developments in the industry, which in turn willimpact your decision to enter the field.

Specialization

Many consulting firms now specialize. Until relatively recently, theconventional wisdom at firms like McKinsey was to develop generalists who



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applied their learning across industries and geographies. That strategy isevolving. Clients increasingly demand that consultants come in with priorknowledge of their industry. While most of the larger firms still hiregeneralists, they now ask consultants to specialize earlier in their careers.They also tend to hire industry experts who might follow different (andpossibly accelerated) career tracks than typical MBAs.

Implementation

Many clients no longer want to pay for mere strategic musing. Hence, manystrategic consulting firms are beginning to ensure implementation of theirrecommendations. As a result, consultants are more well-rounded, withsystems consultants seeking more strategy assignments and strategyconsultants taking on e-business work. Still, differences prevail — strategyconsultants lack powerhouse information technology skills, and systemsplayers have a hard time convincing clients they can come up with innovativestrategic solutions. But the success of strategy/systems hybrids like BoozAllen Hamilton suggests that convergence adds a successful competitiveadvantage — which means more competition for all consulting firms. Webconsultancies, much in vogue prior to the turn of the millennium, had anespecially difficult time convincing clients that they had the sameimplementation capabilities as larger and more established competitors.Coupled with the downturn in the U.S. economy, such difficulties led to thedemise of most firms of that ilk.

Cyclical nature

Consultants like to estimate future revenues for other industries. Meanwhile,speculation abounds about the consulting industry’s own revenues. Up untilthe latest market swoon, consulting revenues had grown by an average of 16percent each year and are still expected to grow at an equally brisk pace(taking into account occasional dips) over the next decade. Aggressivepenetration of emerging markets by corporations (where consultants assessnew markets) and rapid changes in client industries (privatization, IT changesand globalization) are responsible for the marked growth in consulting. Asthe ultimate service industry, consulting depends heavily on the prospects oflarge corporations. Though global recessions create many issues consultantscan address, companies tend to cut outside costs (including consultants) whenbudgets are lean, which makes consulting companies vulnerable to layoffsand cost cutting.


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The Scoop

Nevertheless, consulting will never disappear. During economic downturns,consulting firms frequently attract distressed clients that need advice to copewith their fiscal situations. Additionally, previous tough times have forcedconsulting firms to expand their client rosters to include smaller companies.Entrepreneurial and middle-market consulting now makes up a large part ofconsulting revenues, and many firms dedicate entire departments to thesegroups. Many consultancies have teamed up with venture capital firms — orcreated VC funds of their own — to launch startup companies, to which theyalso provide business strategy and other advice. This practice was more invogue during the dot-com boom of the late ’90s (remember that?), but certaintargeted ventures are still being made.

Open trading

Consulting firms traditionally have shunned the idea of going public — butthis too is changing. In October 2000 the U.S. arm of global HR consultancyWatson Wyatt underwent a public offering. Then in February 2001, KPMGConsulting completed a successful IPO, raising hundreds of millions ofdollars as part of its separation strategy from parent company KPMG LLP.Fellow Big Five firm Accenture, considered to be the largest managementconsultancy in the world, upped the ante five months later by raising about$1.7 billion. Since then Hewitt Associates and PwC Consulting (nowMonday) have jumped on the IPO bandwagon.

Hello goodbye

When in the course of human events, it becomes necessary for one consultingfirm to dissolve the political bands which have connected it with another, theresult can be a very public declaration of independence. Perhaps the mostnotorious divorce was that of Accenture and Arthur Andersen, a drama thatappeared in the news beginning in December 1997 and did not end until 2001.But while Accenture and the de-Arthured Andersen waved goodbye, otherfirms have said hello. Some mergers have been of the mega variety, such asthose between Price Waterhouse and Coopers & Lybrand in 1998 and CapGemini and Ernst & Young in 2001. But the industry has also seen smallerplayers joining forces in recent days. At the end of 2000 Atlanta’s KurtSalmon Associates merged with San Francisco-based Swander Pace,combining two of the leading consultancies specializing in the consumergoods and retail industries. And in January 2002, The Segal Companyacquired fellow human resources consultancy Sibson Consulting Group fromNextera Enterprises for $16 million and future considerations. Some of the



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mergers have been the product of companies in other industries attempting tocreate new consulting divisions or augment existing ones. Some recentexamples include software company Novell’s July 2001 purchase ofCambridge Technology Partners and the December 2001 acquisition ofRenaissance Worldwide by Aquent, an IT staffing firm.

Scandal rocks the industry

On headline-grabbing development that has the entire consulting industryreeling is the Enron/Andersen scandal. Here’s the short version for our cave-dwelling readers: Enron, a large Houston-based energy company, long held areputation as a great American innovator and a stock market darling.However, due to a shadowy history filled with poor investments, anunnecessarily complex fiscal structure and other questionable managerialdecisions, the company very publicly fell apart in 2001. Enron eventuallywas forced to lay off thousands of employees and to undergo the largestChapter 11 bankruptcy in U.S. history. Meanwhile, in early 2002, theSecurities and Exchange Commission and the U.S. Justice Department beganconducting criminal investigations surrounding allegations of fraudulentfinancial reports and manipulation of energy markets. Waist-deep in thescandal was Andersen, Enron’s auditor. Andersen was indicted by the DOJ inMarch 2002 when it came to light that the firm had destroyed thousands ofEnron documents and assisted the company in covering up losses and otherdubious financial dealings. Three months later, a federal jury found the firmguilty of obstruction of justice.

Granted, Andersen’s misdeeds lay with the accounting side of the firm, andwith a small number of people working out of one office at that. In the courtof public opinion though, the resulting stigma potentially could rub off onanyone even remotely associated with the scandal. Who is likely to beaffected? There is of course Andersen, whose consulting arm, while notaccused of any wrongdoing, garnered millions in fees from Enron. The BigFive firm’s sea of troubles has been well documented and continues to makeheadlines on a daily basis. Then there is McKinsey, a longtime Enron adviserand former employer of the now-notorious Jeffrey Skilling, the Enronexecutive primarily responsible for engineering many of the company’s shadyreporting practices. Finally — and most importantly for anyone trying to geta job in the field — there is the entire consulting industry in general. In aMarch 2002 Vault poll, 45 percent of respondents believed that the Enronaffair would make companies completely reevaluate their need forconsultants. For now, consulting firms have yet to experience the full fallout


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from the whole debacle. But for the people trying to break into those firms,it is at best an unhappy circumstance.

Splitting up

Another consequence of this saga has been a push to create greater separationbetween professional services firms’ auditing and consulting businesses. TheSEC and equivalent regulatory bodies outside the United States areconsidering stricter rules to avoid potential conflicts of interest. The SEC hasin the past encountered a tremendous amount of resistance from accountingfirms, which fear losing some of their most lucrative sources of revenue.Indeed, according to The Times of London, auditing firms’ ability to offerconsulting services would have been outlawed years ago had it not been for“fierce lobbying from the accounting industry.” Regardless, after paying lipservice to such proposed rules for some time, all of the Big Five firms havenow attempted in one way or another to split up their operations. Sellingconsulting divisions or spinning them off as distinct companies has becomede rigeur in the industry of late. These moves have advantages of their own— separating their consulting operations has enabled firms to create new andinnovative brands, while a successful public offering can raise money foracquisitions or expansion into new industries and regions (as well as snarenew recruits with the lure of stock options).

Layoffs abound

Even more central to the state of the consulting industry in 2002-2003 is ofcourse the condition of the economy. Consulting firms have taken a huge hitsince the market went south, seeing declining demand for services (especiallyin the technology sector) and declining fees. To put it in perspective, in hisMarch 28, 2002 Inside Consulting newsletter, Consulting InformationServices president Tom Rodenhauser says he has spoken with “one veteranconsultant [who] says he’s currently billing at 1990 rates.”

Coinciding with these developments has been a sharp decline in theconsulting job market. Many firms have cut back or eliminated their campusrecruiting efforts, and others have instituted overall hiring freezes. Inaddition, a large number of new undergraduate and MBA hires who plannedto come on board after graduation have seen their start dates pushed back bya year or more, or rescinded altogether.

The economy also has affected many consultants already ensconced in theirfirms. Few firms have been immune to the pink slips, from IT services giants



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like IBM Global Services to white-shoe strategy shops like The BostonConsulting Group. While this is hardly news at this point, it is no lessdepressing for lifelong consultants who find themselves out of a job or newlyminted MBAs who have seen their six-figure salary offers rescinded. If thereis any consolation at all, it is that the industry now appears to have weatheredthe worst of the storm. We can see, perhaps, the first glimmerings of theindustry recovering after two years of economic turmoil and media scandal,with layoffs tapering off somewhat and billing hours beginning to rebound.


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The Scoop

Consulting CategoriesThe types of consulting that firms offer can (roughly) be divided into fourgeneral categories: strategy, information technology, e-consulting and humanresources. These categories often overlap, and most firms offer multiple areasof consulting. Clients now hire one firm, not several, to formulate overallstrategy, review operations’ efficiency, implement conjoining technologysolutions, and get online.

Strategy consulting

Strategy consulting aims to help a client’s senior executives understand andface the strategic challenges of running their company or organization.Strategy consultants work with the client’s most senior management, sincesenior management sets a company’s strategy and long-term plans.

Historically, strategy consulting firms made their recommendations,presented a “deck” (a report detailing the issues and recommendations), andthen walked away. Increasingly, however, clients expect the strategists tostick around to implement their suggestions. Consequently, more consultingfirms now tout their “implementation” capabilities, which address many areasof a client’s internal operations. (Operations consulting is often considered aseparate field unto itself, but it continues to become more and moreintertwined with strategic services.) These operations include, but are by nomeans limited to, customer service response times, inventory backlog costs,product quality and distribution efficiencies.

Examples of typical strategy consulting engagements:

• Analyzing why a clothing retailer generates lower sales per square footthan its competitors

• Positioning a snack manufacturer to enter China, determining types ofsnacks most wanted, and assessing the market’s willingness to pay forsnacks

• Streamlining the equipment purchasing process of a major manufacturer

• Working with a newly merged commercial bank to increase its customerresponse efficiency



The Scoop

Leading strategy consulting firms include:

• Bain & Company

• Boston Consulting Group

• McKinsey & Company

• Monitor Group

Information technology consulting

Information technology consultants (also called “systems consultants”) workwith corporations and other clients to understand how they can best leveragetechnology for the organization. They design custom software or networkingsolutions, test for system and program compatibility, and ensure that the newsystem is properly implemented.

Most IT consultants, by definition, boast sharply honed technical skills. Butno one says you absolutely need to know how to rewire a router for maximumcommunications efficiency. IT solutions must be implemented as an overallpart of a business solution. Otherwise, clients are sure to scream for cost-justification and/or to fire their IT department heads for wasting money whensolutions fail.

Examples of typical IT consulting engagements:

• Testing an investment bank’s vulnerability to hackers

• Converting a commercial bank’s mainframe system into an Oracle-based client-server environment

• Implementing a firewall for a retail chain’s e-mail and customer serviceservers

• Upgrading a large law firm from WordPerfect to Word

• Troubleshooting on a major SAP software installation

Leading information technology firms include:

• Accenture

• American Management Systems

• Computer Sciences Corporation

• Electronic Data Systems


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The Scoop

E-Consulting

How can you quickly change any term in standard English vernacular into adirty word? Just put an ‘e’ in front of it. Truly, the business world has donea complete 180 from just a few years ago when it paid blind homage to allthings Internet. But while the outlook for the future of the Net may havechanged dramatically, e-consulting — solving problems connected withonline business and electronic commerce on a widespread basis — remainsan important and viable enterprise.

Traditionally, e-consulting began as web consulting, which involved mostlyfront-end design work: programming, graphic design, and prototypes ofcompany web sites. With the rapid proliferation of dot-coms in the mid- tolate-’90s, consulting companies found that they needed to offer a wider rangeof services: e-commerce, B2B, valuations, branding, marketing and so on.Eventually it became apparent that clients wanted entire e-commerceoperations created from scratch.

The days of boutique dominance in this sector are over. After tremendouscompetition for market position, it appears that larger, more traditional firmswith more capital at their disposal have gained the upper hand. Large firmsare making it very difficult for pure-play e-firms like Razorfish and iXLEnterprises, particularly after the stock market took its toll (though the bluechips have had their own difficulties over the last two years).

Given the nature of their chosen medium, e-consultants must be adaptableand dynamic to stay competitive in the market. Many once-promisingupstarts on both the consulting and client sides have long since gone under.So tread carefully — while the consulting industry has learned many toughlessons in its relatively short history, e-consulting still remains a field fraughtwith a whole host of risks.

Examples of typical e-consulting engagements:

• Transforming a department store to an online shopping site

• Creating online catalogs for a mail-order company

• Advising a mutual fund company on how to provide its clients withaccess to account information online



The Scoop

Leading e-consulting firms include:

• Sapient

• DiamondCluster International

• Lante

Human resources consulting

The best business strategies, the most up-to-date technologies and the moststreamlined operations mean nothing if no one can put them into place.Hence, human resources consulting has become a huge business.Increasingly, companies conclude that investing in their human capital paysoff. HR consultants maximize the value of employees while placing the rightpeople with the right competencies. This kind of HR consulting, also knownas organizational development or change management, is one of the hottestconsulting fields. Clients hire HR consultancies as part of departmental ororganizational restructurings, systems implementations, and ongoinginitiatives and studies (e.g., diversity and work-life balance).

HR consultants also provide technical advice. This advice involves mostlynumber crunching, and those who excel at it are generally known as actuaries.Their number crunching often focuses on restructuring benefits packages andvaluating compensation structures, among other technical assignments.Actuarial consultants must pass many certification exams throughout theircareers to remain eligible to practice their trade.

Examples of typical human resources consulting engagements:

• Bringing together the cultures of merged companies by developing oraltering work cultures

• “Managing relationships” to ensure focus on customers and opencommunication

• Building “competencies” through better and more efficient trainingprograms

• Fostering employee creativity through “process innovation”

• Counseling and processing laid-off employees and assisting them infinding new jobs

• Creating or updating a new division’s benefits package

• Reviewing and revising a law firm’s compensation structure


L I B R A R Y


The Scoop

Leading human resources consulting firms include:

• Hewitt Associates

• Towers Perrin

• Watson Wyatt Worldwide

• Mercer Human Resource Consulting


Want more inside information on consulting careers? Get the Vault Career Guide to Consulting, with day-in-the-lifeprofiles, career paths, salary information and more, athttp://consulting.vault.com


L I B R A R Y

Breaking In

Getting your foot in the door

Historically, consulting firms focused on a relatively small number ofundergraduate and graduate institutions when recruiting for associates andanalysts. That changed a bit during the dot-com boom, when talent-hungryfirms broadened their list of schools in search of candidates. (The lists ofschools at which IT-focused firms recruit were already fairly broad, as thosefirms tend to pay greater attention to candidates’ skills and certifications thanschool brand name .) And while the job market has once again tightened up,recruiters remain aware that many qualified people can be found outside oftheir standard channels.

Consultancies have also begun to consider candidates with non-traditionaladvanced degrees, such as MDs or PhDs. This makes it easier to get on theradar screen if you come from a less traditional background or a collegeoutside of their traditional recruiting list. Firms may also be receptive to awider range of backgrounds when it comes to offering internships. Indeed,doing an internship (at any level) is one of the best ways to get into the field,especially when the economy is bad. One 2001 MBA grad tells us that hisclassmates “who did an internship at one firm [the previous summer] weremore likely to get full-time consulting offers — even at other firms. It wasbecause they had proved that they wanted to do consulting.” And whilecompetition for any kind of consulting position remains high, there are waysyou can increase your chances of being selected for an interview.

Schmoozing

Good networking skills are important throughout your career, but these skillsare immensely helpful in opening doors at your firms of choice. Begin byseeking out several contacts to obviate a cold call to your target companies.Consulting firms sometimes arrive on campus the evening prior tointerviewing rounds for cocktails and dinner. Although these events areusually open house, some are invitation-only functions. If you do not hold aninvitation, call the company’s event administrator, express your interest in thecompany, and ask for an invitation. Nine times out of 10, companies gladlyextend invitations to those who show genuine interest.

Getting Hired


Getting Hired

If consulting firms don’t typically recruit at your school, you have to workharder. Find a contact within the firms you are targeting — be it an alumnus,a colleague who worked there prior to school, your mother’s best friend, oranyone else. Then ask the contact for an informational interview. Use theinformational interview for two purposes: to get an “in” on the recruitingprocess and to learn more about the company prior to your interviews.Recruiters generally favor candidates endorsed by someone already workingin the firm. The more people you know in a particular organization, thegreater your chances of success.

Schmoozing involves more than just networking. When networking, youseek out people to help you on a single mission, without necessarilyconsidering your ability to help them. Schmoozing, on the other hand,involves developing longer-term relationships for both parties’ benefit. Youbegin these relationships with the goal of productivity — you are seeking amutually beneficial outcome. You find people with whom you can exchangeideas, favors and political assistance. Through schmoozing, you find peoplewho will support you even when you do not need it. They actively getinvolved in your life, and vice versa. It’s an invaluable skill to develop, nomatter what your profession.

Are they hiring?

Despite your best efforts, the firm of your dreams may be in the midst of ahiring freeze. In the last year or so, many firms also have delayed orrescinded job offers to candidates from top undergrad and MBA programs. Itis important to find out which firms have had such HR difficulties. (Thisbook is chock full of such information.) Other firms have taken pains toavoid layoffs. Once you have weighed these risks and decided you stillwould like to work at a given firm, that’s when it’s time to prepare for theinterview process.

The interview process

The most valuable asset of any consulting firm is its human capital. (Thatmeans you.) Before clients see presentations, reports or results, they seeconsultants. Before clients work with products or services, they work withthe people. Consequently, consulting firms purposefully make theirinterviews intense and lengthy to measure your intellectual, physical andemotional stamina.



Getting Hired

Consulting interviews fall into two types: the behavioral interview and thecase/problem interview. The former determines the extent to which you fitthe consultant profile and the firm’s culture. The latter tests your problem-solving skills and displays your thinking patterns to the interviewer. To anextent, both types of interviews also reveal how well you deal with stressfulreal-time challenges.


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Getting Hired

The Resume/Behavioral Interview

Interviewers first want to determine if you have the “intellectual horsepower”(brains) and “quantitative and analytical ability” (math and logic skills) to bean asset. You must also be able to think “out of the box” (creatively) to comeup with innovative ideas and approaches.

While your resume provides structure for the interview, be sure your side ofthe conversation provides more than a regurgitation of the resume’s key points.Focus on the same skills you underscored in your resume, but use differentexamples of teamwork, leadership, confidence and technical skills. Asuccinct description of past school or work projects that highlight your skills“gives the interviewer something to hold on to,” according to one consultinginterview veteran. Meanwhile, show your interviewers that the examples onyour resume do not constitute the entirety of your abilities. Interviewers takeon the responsibility of shaping their firm’s culture and/or ensuring compliancewith firm standards. Generally, consulting firms want smart, ambitious,hardworking, dedicated and analytical people with pleasant demeanors.

During the interview, pay attention to what you say and how you say it.Listen carefully to the questions. Too many people lose points by answeringthe questions incorrectly, incompletely or inappropriately. Craft youranswers so that they are logical and structured. Provide relevant examples.Speak in complete sentences, and do not go off on tangents or trail offmidway through a sentence. Also, watch your fillers: “you know,” “um,”“like.” Ensure that your elocution is articulate and reflects your education.

Some specific skills and qualities that interviewers look for:

• Leadership skills, to lead consulting and client teams and to promotetheir ideas

• Teamwork, to work with other consultants, clients and vendors towardsolutions

• Analytical skills, to crunch numbers and work through information in alogical manner

• Presentation skills, to communicate findings to fellow consultants andclients alike

• Creativity, to solve problems and think “out of the box”

• Thick skin, for those times when your work is criticized

• Personality and sense of humor, to defuse stressful situations



Getting Hired

During your interviews, remember these specific points:

• Never express uncertainty or insecurity about your skills or give theinterviewer any reason to question your confidence or abilities

• Refrain from revealing your dislike for travel or your attachment to home

• Avoid getting defensive or sensitive when answering tough questions,including, “What kinds of people do you have trouble getting alongwith?” or “Tell us about your shortcomings.”

During your interview, be prepared for some version of the “airplane test.”The interviewer imagines sitting next to you on an eight-hour flight across theAtlantic. He or she decides which is more preferable: conversing with youfor more than 30 seconds or faking sleep throughout the whole flight to avoidyou. To pass the test, show genuine interest in something outside the businessrealm or crack a joke. Just be sure to choose a topic that presents you asmature, insightful and interesting, and make certain that the topic is tasteful,amusing and noncontroversial.

Behavioral questions

Consulting firms use behavioral interview questions to measure “softer”attributes. Behavioral interview questions ask you to reveal how you behavein particular situations, be it at work or in a personal situation. Firms usingbehavioral interviews believe a candidate’s responses reveal a lot about his orher personality and skills. They also believe the firm can project futurebehavioral patterns based on the past. Some consulting firms use behavioralquestions almost to the exclusion of more traditional consulting casequestions. To prepare, practice answering frequently asked behavioralquestions until you can answer them smoothly.

Practice behavioral interview questions

When asking behavioral questions, your interviewers first listen to youranswers at face value and then assess your thinking process (ingesting thequestion, processing the answer, assembling the words and presenting theanswer). They also use their assessment to project the likelihood of yourfuture success.


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2

3

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Getting Hired

What position do you normally take on a team?

Extremes never paint stable pictures. Avoid portraying yourself as anobsequious follower or a tyrannical dictator. Consulting firms want people(especially neophytes) who ask questions, make contributions and get theirpoints across. They want someone who neither passively receivesinformation nor commandeers the entire case team.

Why have you chosen to interview at our firm?

Consulting involves a lot of research. Show off your skills here. Explainyour interest in a strategy firm (or change management, or whatever) andrelate your interest to what you know of the firm. Include what you want togain from the firm and what you believe you can contribute. State why thefirm stands in a good position to accomplish your goals and how the firm canbenefit from your contributions. Demonstrate your abilities to conjoin datafrom separate sources into a single analysis.

What is the worst mistake you’ve ever made?

This mistake should not involve an egregious lapse in judgment along thelines of: “It was really stupid of me to violate parole.” Instead, describe avaluable lesson you learned (and one that preferably occurred some timeago). Remember to include your lesson and why the lesson still provesvaluable to you even today. “I remember when I didn’t fully research buyinga car, and I ended up buying a car that looked good but cost me thousands inrepairs. I’ll never fail to do my homework again.”



Getting Hired

The Case Interview

Consulting interviewers use case interview questions to test your analyticalability, reasoning skills, confidence and knowledge of business concepts.Case interviews simulate live scenarios to test the quickness of your mind andconfirm the skills you claim on your resume. You must discuss hypotheticalsituations based on information provided to you and make assumptions basedon commonly known facts. Even if you have no background knowledge ofthe case, you must still address the question thoughtfully under pressure. Theinterviewer cares more about how you arrived at your answer than if youanswer correctly, so be sure to explain your thought process as well.

Case interview questions fall into three broad categories: business cases,guesstimates and brainteasers.

Business cases

If you are interviewing with a strategy consulting firm like Bain, count onplenty of cases during the interview process. Put very simply, case interviewsare problem-solving exercises. While some interviewers draw on recent real-world experience to pose the case, you are not expected to have advancedindustry knowledge. The interviewer is more interested in checking out yourthought process and assessing your analytical ability, creativity and poise.Some companies present cases as written documents to be read and prepared.But usually the interviewer describes the key facts and issues of the casebefore asking the candidate for an analysis. Some firms (e.g., Monitor) askyou to solve a case as part of a team with other job applicants.

The case usually consists of a business scenario and a question about it. Forexample: “A foreign company with extra cash on hand wants to enter theAmerican fast food market. What would you tell them?” While every caseis different, follow the tips below to improve your chances of cracking itwithout too much difficulty.

Case tips

• Before jumping into an answer, ask the interviewer a number ofquestions to gather vital information about the case. (Imagine yourinterviewer as a corporate client presenting this case to you. Ask theclient plenty of questions before attempting to provide advice.) Yourinterviewer answers you with pieces of information to help you


L I B R A R Y


Getting Hired

formulate new questions and, ultimately, your case recommendations.(At the same time, avoid tiring your interviewer and recognize whenyou have asked enough questions.)

One recent interviewee cautions: “Consulting firms are looking forpeople who will think carefully before answering; this is very importantin the case interview. Don’t say the first thing that comes to your mind,even if you’re certain about it. If you’re trying to choose betweenappearing to be slow and appearing to be a cocky idiot, choose the former.”

A good question to ask is about best practices in the industry. Find outwhat other companies in this industry do when facing the same issues.

• Avoid making assumptions without checking them with the intervieweror, at the very least, stating that you are making an assumption. If yourcase concerns a vehicle manufacturer, for example, you might simplyassume the client is General Motors when it is actually John Deere.

• After gathering all the information you think you need, start formulatingyour recommendations. If you like using standard frameworks,remember to use the appropriate one. Run the framework through yourmind to ensure you are not forgetting a vital area of analysis. Forinstance, Porter’s Five Forces model might help you analyze a marketsituation and identify all of the areas of potential threat. Based on themodel, you can recommend the company’s market strategy.

• If you are unfamiliar with frameworks, say so and proceed as logicallyas you are able. Voice your analysis — why and how you come to yourquestions and conclusions is also important.

• After giving your recommendations, point out possible flaws andassumptions in your thinking.

• Speak and reason aloud during your case interview. Your thoughtprocess is more important than your ultimate conclusions; yourinterviewer must hear your reasoning and the logical steps you aretaking to reach your conclusions.

• Always bring paper and a reliable pen with you to any consultinginterview. You might want to take notes during the case interview (andfor any guesstimates or quantitative brainteasers your interviewer mightthrow at you). Asking your interviewer for paper and a pen during theinterview gives the impression that you are disorganized and unprepared.



Getting Hired

• No matter what, never show any signs of being flustered in a caseinterview. Your composure before your client (or lack thereof) is a keyfactor in your evaluation.

Sample qualitative case question

A major film entertainment company wants us to assist them inbuilding a distribution network for home video. They want toknow whether they should build their own distribution networkor continue to contract with third parties.

Start by asking your interviewer some basic questions:

• What are other entertainment companies doing?

• What are the current costs?

• Does the company have the staff and resources to create its owndistribution network?

• Of the major entertainment companies producing videos, do mostdistribute through their proprietary supply chain or through third parties?

• What is the client’s current cost of distribution through its contractualpartner(s)?

• Has the client considered building its own distribution network beforeretaining us? If so, what were its findings?

• Does the client have a dedicated functional staff assigned to the project?If so, what functional areas do they represent?

After establishing some basic facts, get more detailed. Your interviewermight allude to certain avenues to discuss or shut down others. If theinterviewer confirms the company has enough staff to handle setting up itsnetwork, stop delving into the ramifications of reassigning personnel.

If, through questioning, you decide staying with a third-party distributormakes the most sense, ask the next logical question: Should the company staywith its current distributor or choose a new one?


L I B R A R Y


Getting Hired

• Who are possible alternative partners? Who uses them?

• Could you characterize the relationship between the client’s distributionpartner and the client? Is there a possibility of retaliation on the part ofthe distribution partner if the client severs its ties to this party?

• How many weeks of supply are currently in the distribution partner’spipeline?

• How receptive are the client’s accounts to changing distributionpartners? Can it be shown that a client-owned supply chain would bemore efficient or valuable to the accounts?

• Does the client have any financial interest in the distribution partner thatmight have to be eliminated?

When you feel ready, make a recommendation.


Make sure you're prepared for your case interviews. Get caseframeworks, strategies, tips, and detailed step-by-step analysisof actual cases used in interviews with the Vault Guide to theCase Interview and the Vault Case Interview Workbook. Forone-on-one coaching, use Vault Case Interview Prep. Go tohttp://consulting.vault.com.

Guesstimates

In guesstimates, your interviewer generally asks you to estimate the marketsize for a product or service and observes your reasoning process. The key isnot necessarily to get the right answer, but to show your ability to tackle aproblem logically, approach assumptions sensibly, and perform simplecalculations quickly without a calculator.

Guesstimate cracking tips

• You receive little real data (though you will not need to know muchbeyond basic population figures for the United States).

• For use in your analysis, assume the United States has 270 millionpeople and 25 million businesses. (Consider rounding up to 300million, as long as you inform your interviewer that you are doing so.)

• Make reasonable assumptions, with rounded, easy-to-work-withnumbers (difficult numbers might throw off your calculations), and gofrom there.

• Remember that you are expected to use a pen and notepad to workthrough your calculations.

• If certain figures escape you, like the population of Brazil or thecircumference of the globe, ask for them. Avoid stumbling your waythrough an answer based on inaccurate assumptions.

• Talk through your steps aloud as you go through your calculations.

• Remember that guesstimates, like cases, also involve elements ofcreativity and problem solving. For example, when asked, “How muchchange would you find on the floor of a mall?” ask, “Is there a fountainin the mall?”


Getting Hired


L I B R A R Y

1


Getting Hired

Sample guesstimates

How many gallons of white house paint are sold in the United Stateseach year?

The “Start Big” approachIf you are unsure where to begin your analysis, start with the basicassumption that 270 million people live in the United States. If 270 millionpeople live in the country, perhaps half of them live in houses (or 135 millionpeople). The average family size is about three, which measures out to 45million houses in the United States. Add another 10 percent or so for secondhouses and houses used for other purposes besides residential. Concludethere are about 50 million houses.

If houses are painted every 10 years on average, then 5 million houses getpainted every year. Assuming one gallon covers 100 square feet of wall andthe average house has 2,000 square feet, each house needs 20 gallons.Therefore, 100 million gallons of paint are sold per year (5 million housestimes 20 gallons). (Note: If you want to be fancy, ask your interviewerwhether to include inner walls as well!) If 80 percent of all houses are white,then 80 million gallons of white house paint are sold each year. (Rememberthat last step!)

The “Start Small” approachTake a town of 27,000 (about 1/10,000th of the population). If you use thesame assumption that half the town lives in houses in groups of three, thenthere are 4,500 houses. Add another 10 percent for good measure, and thereare really 5,000 houses in your guesstimate. Painted every 10 years, 500houses get painted in any given year. If each house has 2,000 square feet ofwall, and each gallon covers 100 square feet, then each house needs 20gallons. Therefore, 10,000 gallons of house paint are sold each year in yourtypical town. Perhaps 8,000 of those are white. Multiply by 10,000, and youhave 80 million gallons.

If your interviewer asks you how you would actually get that number as aconsultant, use your creativity — e.g., contact major paint producers, call theU.S. Department of Housing and Urban Development’s statistics arm, orconduct a small sample of the second calculation in a few representative towns.


2

3

Want more practice with guesstimates and brainteasers? Getthe Vault Guide to the Case Interview and the Vault CaseInterview Workbook. For one-on-one coaching, use Vault CaseInterview Prep. Go to http://consulting.vault.com.


Getting Hired

Other guesstimate samples

How many 747s are above Kansas right now?

How much beer is consumed in the United States each year?


L I B R A R Y

1

2


Getting Hired

Brainteasers

Brainteasers — or, as one disgruntled interviewee referred to them, “mindsplitters” — are the genre of questions along the lines of, “Why are manholecovers round?” Some brainteasers look more like logic problems, whileothers require more mathematics. Be forewarned: some of these questionsare tricky, and it is possible you might not solve them in a short amount oftime. Their main function is to test your courage under fire.

Keep your composure! Do not tell your interviewer that the brainteasercannot be solved or is unreasonable. As a consultant, you find yourself on thespot all the time — your interviewer wants to ensure that you can keep your cool.

Practice Brainteasers

You stand in a room with three light switches. Each controls oneof three light bulbs in the next room. You must figure out whichswitch controls which bulb. All lights are off. You have somelimitations — you can flip only two switches and you may enterthe room only once.

Consultants and clients alike love “out of the box” thinking. Some suggestdrilling a hole in the wall or calling a friend for assistance. One applicantsuggested the switches might be dimmer switches — each light bulb could beset to a certain level of illumination, making solving the puzzle easy. Oneelegant solution, however, is to turn one light bulb on for 10 minutes and turnit off. Turn another bulb on and go into the room. The light bulb that is onclearly goes with the switch that you turned on last. Now feel the bulbs. Thehot one was on recently.

Four men must cross a bridge in 17 minutes. The bridge is verynarrow and only two men can cross at once. It is nighttime, andwhoever is crossing a bridge must carry a flashlight. Alan cancross in one minute, Bert in two, Cedric in five minutes and Donin 10 minutes. The men crossing the bridge go at the pace of theslowest individual. How should they cross?

First, Alan and Bert cross together with the flashlight, which takes twominutes. Alan returns with the flashlight, which takes one minute. Three



Getting Hired

minutes have elapsed. Cedric and Don then cross with the flashlight, whichtakes ten minutes. At the 13-minute mark, Bert returns with the flashlight,taking two minutes. Bert and Alan go back across the bridge, for a total timeelapsed of 17 minutes.


L I B R A R Y

Want more practice with guesstimates and brainteasers? Getthe Vault Guide to the Case Interview and the Vault CaseInterview Workbook. For one-on-one coaching, use Vault CaseInterview Prep. Go to http://consulting.vault.com.


L I B R A R Y

AT Kearney222 West Adams StreetChicago, IL 60606Phone (312) 648-0111www.atkearney.comMisty RallisCampus Recruiting DirectorPhone (312) 648-0111

Bain & CompanyTwo Copley PlaceBoston, MA 02116Phone: (617) 572-2000Fax: (617) [email protected] URL:www.bain.com/bainweb/join/springboard/overview.asp

Booz Allen Hamilton8283 Greensboro DriveMcLean, VA 22102Phone: (703) 902-5000Fax: (703) 902-3333www.boozallen.comUndergraduate Opportunities:Katy [email protected]/Advanced Degree Opportunities:Cynthia [email protected] Hire Opportunities:Lisa [email protected]

The Boston Consulting GroupExchange Place31st FloorPhone (617) 973-1200Fax (617) 973-1339www.bcg.com

Braun Consulting20 West Kinzie StreetSuite 1600Chicago, IL 60610Phone: (888) 284-5628Fax: (312) 984-7371www.braunconsult.com

Integral111 Huntington Avenue10th FloorBoston, MA 02199Phone: (617) 425-8400Fax: (617) 425-8401www.integral-inc.comFor U.S. offices:[email protected](617) 425.8400For U.K. office:[email protected]+44 (0)1223 358885

Marakon AssociatesFor Recruiting in North America,contact:245 Park Avenue Floor 44New York, NY 10167Phone: 212-377-5000www.marakon.comDenise DeBernardoRecruiting CoordinatorPhone: 212-377-5022Fax: [email protected]

Featured EmployersSPONSORED LISTINGS


Featured Employers


Marakon AssociatesFor Recruiting in Europe and Asia,contact:1-3 StrandLondon, United Kingdom WC2N SHPPhone: 020-7321-3683www.marakon.comMelissa BrownRecruiting AssistantPhone: 020-7321-3683Fax: [email protected]

Monitor GroupTwo Canal ParkCambridge, MA 02141Phone (617) 252-2000www.monitor.comRecruiting Contact: Kathy [email protected]

PA Consulting Group, Inc.1750 Pennsylvania Avenue, NW 10thFloorWashington, DC 20006Phone: 202-442-2000www.paconsulting.comMargaret LarsonCampus Recruitment ManagerPhone: 202-442-2000Fax: [email protected]

Parson ConsultingParent Company: ManagementConsulting Group333 West Wacker DriveSuite 1620Chicago, IL 60606Phone (312) 578-1170Fax (312) 578-1355www.parsonconsulting.comregion4.recruiting@parsonconsulting.com

Stern Stewart & Company1345 Avenue of the Americas20th FloorPhone (212) 261-0600Fax (212) 581-6420www.sternstewart.comRecruiting Contact: Anna [email protected]

Valen Group4665 Cornell RoadSuite 335Cincinnati, OH 45241Phone (513) [email protected]

Viant Corporation89 South StreetBoston, MA 02111Phone: 617-531-3700www.viant.comKen ElmerChief People [email protected]

ZS Associates1800 Sherman AvenueEvanston. IL 60201Phone: (847)492-3600Fax: (847)492-3409www.zsassociates.comSally JohnstonRecruiting ManagerPhone: (847)492.3600Fax: (847)492-3409

Want to list your firm in nextyear’s Vault Guide to the Top 50Consulting Firms? Please contact:[email protected]


L I B R A R Y

Allied Search Inc.2030 Union St. Suite 206San Francisco, CA 94123www.alliedsearchinc.comDon MayManaging DirectorPhone: 415-921-1971Fax: [email protected]

Allied Search Inc.3699 Wilshire Blvd. #850Los Angeles, CA 90010www.alliedsearchinc.omDon MayManaging DirectorPhone: 213-680-4000Fax: [email protected]

Consulting Resource Group, Inc.1100 5th Avenue South Suite 201Naples, Florida 34102Phone: 888-240-5556www.CareersInConsulting.comLeslie SmithRecruiting DirectorPhone: 888-240-5556Fax: [email protected]

The Ford Group, Inc. 485 Devon Park Drive Suite 110 Wayne, PA 19087 Phone: (610) 975-9007 Fax: (610) 975-9008 www.thefordgroup.com Sandra D. Ford CEO & Managing Director Phone: (610) 975-9007 Fax: (610) 975-9008 [email protected]

Featured RecruitersSPONSORED LISTINGS

Want to list your recruiting firm in next year’s Vault Guideto the Top 50 ConsultingFirms? Please contact:[email protected]

TOP50CONSFIRMS

THE VAULT 5O


L I B R A R Y


55 East 52nd StreetNew York, NY 10022Phone: (212) 446-7000Fax: (212) 446-8575www.mckinsey.com

LOCATIONS New York, NY (HQ)84 offices worldwide

PRACTICE AREASAutomotive & Assembly • Banking& Securities • Basic Materials •Chemicals • Consumer/PackagedGoods • Corporate Finance &Strategy • Electric Power/NaturalGas • High Tech • Insurance •Marketing • Media & Entertainment •Nonprofit • Operations Strategy &Effectiveness • Payor/Provider •Petroleum • Pharmaceuticals andMedical Products • Private Equity •Retail/Apparel and Hospitality •Telecommunications • Travel andLogistics Services

THE STATS

Employer Type: Private Company Managing Director: Rajat Gupta2002 Employees: 12,5002001 Employees: 13,0002001 Revenues: $3.3 billion2000 Revenues: $3.4 billion

UPPERS

• Unsurpassed reputation • Strongest alumni network

anywhere

DOWNERS

• Draining intensity• Enron entanglement

KEY COMPETITORS

AccentureA.T. KearneyBain & CompanyBooz Allen HamiltonBoston Consulting Group

EMPLOYMENT CONTACT

[email protected]

McKinsey & CompanyV A U L T

P R E S T I G ER A N K I N G

1

THE BUZZWHAT CONSULTANTS AT OTHER FIRMS ARE SAYING

• “The filet mignon”• “Better at theory than practice”• “Pinnacle of our profession”• “Big brains, bigger bills and even

bigger egos”

THE SCOOP

Top dogs

In an industry with a handful of leaders, McKinsey & Company is regarded as themost influential consulting firm in the world. Founded by James O. McKinsey in1926, the firm enjoys more boardroom access, performs more industry-shaping work,disseminates more knowledge and earns more money per consultant than any otherfirm. With 84 offices in 44 countries and more than 7,000 professional employees,McKinsey dominates the industry. In a 2002 Universum survey, McKinsey was ratedthe company where MBAs would most like to work for the sixth year in a row.

Clients of “The Firm” — as it is known among its employees and clients — are thebluest of the blue chips. They include AT&T, Pepsi, IBM, General Electric andGeneral Motors. Overall, McKinsey serves more than 60 percent of the FortuneGlobal 500 and 77 percent of the U.S. Fortune 100. Besides serving huge globalcompanies, innovative startups, wealthy commercial banks, leading venture capitalfirms and vast technology companies, McKinsey also prides itself on offering probono assistance to educational, social, environmental and cultural organizations. Infact, half of the firm’s consultants work on a pro bono engagement at some timeduring their careers.

The ultra-international consulting firm

McKinsey has a better claim than most firms to being a true global network. Itsconsultants are citizens of 90 countries, and McKinsey consultants provide theirexpertise to clients around the world. Since 1999, the firm has opened offices in AbuDhabi, Athens, Israel and Dubai.

In March 2001 McKinsey implemented a plan to strengthen significantly itscorporate finance and strategy practice in Singapore. (Launched just three yearsearlier, the Singapore office has counseled some of the country’s most prominentclients, including Singapore Airlines and the chewing gum-banning nationalgovernment.) McKinsey signed a December 2001 agreement to counsel the Savingsand Deposits Insurance Fund of Turkey on problems of that nation’s bankingindustry. The firm also has done extensive work in India, advising liquor companyShaw Wallace on an operational restructuring, engineering and construction firmLarsen & Toubro on strategy matters and Prime Minister Atal Behari Vajpayee onforeign investment issues.

Vault Guide to the Top 50 Consulting FirmsMcKinsey & Company


L I B R A R Y

The road ahead

Whether you call it “up or out,” “succeed or leave” or the natural workings of a puremeritocracy, the majority of consultants who start at McKinsey end up leaving alongthe way. On average, only one in four to five consultants who starts at McKinseyfinishes the hallowed journey to principal. Then again, many leave by choice. “It’sa pretty competitive process,” says an insider, “though lots of people don’t want tomake partner, so they leave.” Those who jump ship may find themselves ingovernment (like Roger Ferguson, vice chairman and governor of the FederalReserve Board), as best-selling authors (the authors of the enormously successfulbusiness guide In Search of Excellence were former McKinsey consultants) orfounders of rival consultancies (as Tom Steiner did with Mitchell Madison Group,later purchased by the failed e-consultancy marchFIRST). Many McKinseyconsultants wind up in top spots in corporations: The CEOs of Delta Airlines,Polaroid, Morgan Stanley Dean Witter, Amgen, CNBC and Levi Strauss are all alumsof the firm (probably why Fortune once referred to McKinsey as “a CEO factory”).

Tech-savvy and prudent

As an institution focused on the most important issues facing management,McKinsey builds relationships with clients — it has more than 400 active clientrelationships that span more than 15 years — and has historically been known as astrategy consulting firm. But the firm has been adapting to the dynamics of thechanging economy and client demand, and is now pursuing technology clients andsmaller, market innovating companies with more vigor. McKinsey’s technology arm(known as the Business Technology Office), composed of more than 400 consultantsand integrated into the firm’s mainstream strategic competency, helps clients managetheir IT investments and integrate technology into core strategies. The firm will not,however, do full-blown systems implementation. (That’s for Accenture and its ilk.)

While it has tried to remain at the forefront of technology, McKinsey avoided someof the other fads of the era. “During the dot-com era, we very much said, ‘We are a clientservices firm,’” McKinsey managing director Rajat Gupta told Singapore’s BusinessTimes in June 2001. “Unlike many of our competitors, we decided we were not goingto own businesses, we were not going to start funds, we would stick to what we knowbest. We were going against what was fashionable, but I’m happy that we did.”



Shopping spree

McKinsey pulled out its checkbook a number of times in 2001. In January the firmtook a stake in India’s Aptech Internet in exchange for providing consulting services.Also that month, McKinsey acquired Chicago-based branding firm Envision for anundisclosed sum. But perhaps the firm’s biggest acquisition of the year involved justone individual: In March 2001, media and entertainment consultant Michael Wolfjumped ship from Booz Allen Hamilton. Wolf, whose client list at Booz Allenincluded MTV, Paramount Pictures and the National Basketball Association, becameone of the first non-homegrown senior partners in McKinsey’s history.

Not recession-proof

Gold-standard McKinsey may have avoided much of the turmoil that hit lesserconsulting firms (a happy fate largely stemming from its avoidance of the dot-combandwagon), but it has not proved totally immune to the recession of 2001. Thefirm’s utilization rate (the proportion of their time that consultants are billing)reportedly dropped to 52 percent in 2001 — the lowest it had been in 32 years — andit was forced to consider offering discounts to clients for some engagements. InNovember 2001, McKinsey announced that it was cutting 5 to 7 percent of its 3,000support staff in the United States and Canada. Though no consultants have been laidoff, with the firm’s voluntary attrition rate dropping precipitously as a result of therecession, more analysts and associates have been asked to leave as part of the firm’sup-or-out policy. According to The New York Times, 9 percent of consultants werecounseled out in the fall of 2001, compared with 3 percent a year earlier. In addition,new hires in some offices have been asked to defer their start dates.

McKinsey also initiated a July 2001 capital call in which many of its 850 partners hadto make large cash contributions to the firm. The contribution was based on tenureand performance issues; some senior-level directors ponied up as much as $200,000each. The move is not a new one for the firm, which employs a “just-in-time” cashmanagement strategy, but it appears to be an indication that the current economicclimate has finally hit the firm hard. (McKinsey contends that that capitalcontributions are routine and are not a reflection of firm performance.) Thus, facingan uncertain market and the end of Gupta’s reign as managing director (in early2003), McKinsey now must apply its fabled business expertise to determine astrategy for its own future.



L I B R A R Y

McKinsey’s Enron engagement

The fortunes of a consulting firm’s clientele can make or break the firm’s reputation.This has seldom been a major worry for McKinsey, given that its list of clientcompanies reads like a Who’s Who of business success and power. There have beensome chinks in the firm’s armor of late, however, with clients Kmart, Swissair,Global Crossing and others facing bankruptcy or other financial difficulties. But itwas the collapse of one prominent McKinsey client, Enron, that brought the firm thelion’s share of its unwanted publicity.

Amidst the resulting morass of criminal investigations and bankruptcy proceedings,the relationship between the beleaguered energy company and McKinsey came to thefore. The two had had ties dating back almost to the Enron’s inception. ErstwhileEnron CEO Jeff Skilling had come to the company after working as a McKinseyconsultant, and senior McKinsey partner Richard Foster served as an adviser toEnron’s board of directors. Over the course of a number of years, McKinseyconsultants worked out of Enron’s Houston offices, racking up millions in fees (oneyear topping out at more than $10 million) for dispensing strategy advice, accordingto BusinessWeek.

As Enron’s accounting and legal advisers became embroiled in the scandalsurrounding the company’s financial reporting irregularities, McKinsey’s role,predictably, has been scrutinized. In response, the firm has sought to distance itselffrom the activities that brought on the investigation. “In serving Enron, McKinseywas not retained to provide advice to Enron or any Enron-affiliated entity withrespect to the company’s financial reporting strategy, methods of financing, methodsof disclosure, investment partnerships or off-balance-sheet financing vehicles,” afirm spokesperson told The Wall Street Journal in January 2002. The firm furtherasserted that any allegations that McKinsey served as a “decision maker or anecessary review body on Enron’s asset investments are flat-out wrong.”

McKinsey appears unlikely to come under investigation in the same manner asAndersen — which was found to have destroyed many of Enron’s financialdocuments and engaged in other shady accounting practices — but it could becomeinvolved peripherally. Should that be the case, the firm in all likelihood would beforced to disclose any information about its dealings with Enron that SEC and JusticeDepartment investigators deem necessary.



GETTING HIRED

Think getting into a top-tier school is tough? Try McKinsey — only 2 percent of itsapproximately 150,000 applicants per year get offers, and a full half of those are fromoutside of North America. Put another way, one respondent says, “Some numbers Iheard are that 15 percent of first-round interviewees make it to the second round andonly 30 percent of those get an offer.” Strong academic records from high-rankinguniversities are just a prerequisite; a strong analytical ability and smooth presentationskills also are needed to get you over the top. On the other hand, while your school’sbrand name is important, an Ivy League provenance isn’t essential: “The firm ispretty good at casting a wide net to reach out to schools not considered particularlyprestigious because they have great talent as well.” Ultimately, wherever they’refrom, successful candidates have it all, says one source. “I am surrounded byeveryone’s consensus All-American.”

McKinsey’s recruiters visit a large number of schools, and we hear that “every officehas its own recruiting schedule.” Depending on the school, candidates either applycentrally to a McKinsey school team or to the office of their choice. In either case,it is the office that has ultimate say over whether they get an offer. The firmencourages candidates at schools where it does not recruit to complete an onlineapplication as a first step in the hiring process.

The interview portion varies from school to school and office to office. The processconsists of either two or three rounds of interviews, the first of which is usually heldon campus. If there is an intermediary round, it may be held at a local McKinseyoffice. The final round of interviews takes place at the McKinsey office to which thecandidate has applied. Most interviews are conducted by current McKinseyconsultants, and tend to include “a combination of cases, resume/personal questionsand some behavioral questions.”

OUR SURVEY SAYS

Getting there is half the battle …

…the other half is staying. McKinsey is a faithful practitioner of the up-or-outsystem for associates (people hired from graduate school or industry) — if in twoyears you don’t get a promotion, you get the boot. This sort of bare-bonesmeritocracy “makes the atmosphere very demanding and shortens people’s careers,”



L I B R A R Y

reports one McKer. Many people thrive in such an environment; one respondent callsMcKinsey “extremely performance-oriented but at the same time very collegial andfriendly.” McKinsey’s is by many accounts “a subtle pressure-cooker culture whichpeople won’t admit to,” says another, while a third tells Vault that to succeed atMcKinsey, “You sacrifice a great deal in terms of personal freedom. ‘Up or out’ isalive and well here — having it is good; getting caught in it will not be.” Nevertheless,it’s the place everyone wants to be — as one source reports, “Everybody who goesto a b-school wants to work here. Who wouldn’t be proud of that?”

The typical undergraduate stays at McKinsey for around two years, then leaves forgraduate study or another industry. Indeed, many view their time at McKinsey as asteppingstone. “The McKinsey name has a very strong reputation, which makes exitopportunities very attractive,” says one respondent. “It’s a fantastic springboard towhere you want to work later on,” says another insider. “The McKinsey network isvery strong.” And in any case, few see their careers as a long-term project: “I viewworking here like playing for the Yankees — I am not sure how long they will thinkI am good enough, but while I am here it is an amazing ride.”

I did it McKinsey’s way

As the 800-pound gorilla of the consulting world, McKinsey expects its employeesto do as it says — right down to their writing style and interpersonal skills.“[McKinsey has] a very strong culture,” one consultant tells Vault. “You are requiredto learn the McKinsey way of writing documents, interacting with customers andpresenting.” Unlike some firms, McKinsey is very concerned about its internalculture, and aspires to create “a collegial, relatively non-political, and meritocraticenvironment in which people feel an obligation to express their opinions.” Thecompany even includes an “obligation to dissent” in its values statement, meaningthat if a consultant disagrees with someone, even a higher-up, he or she is required tosay so. We hear that such dissent is “always well-received, even in high-pressuresituations.” But while most sources say the firm has succeeded in that respect, at thesame time it’s also a place where “people are a little more careful about what theysay, have less time to shoot the breeze, and are a little more concerned with coveringtheir own asses than with helping you out or being fair. However, it’s a friendly placeon the whole.”



Getting along

McKinsey may attempt to maintain a uniform culture, but insiders tell us that the day-to-day quality of life can vary greatly from office to office. One source, based inDallas, tells us that that office is an “extremely friendly place where the partners,even directors, know all the business analysts and treat them well.” On the otherhand, the source tells us, “Houston is quite the opposite.” Many agree that the firm’sculture is “very partner- and office-specific,” while one consultant comments that“usually the treatment is professional and respectful.” But even with well-regardedpartners, the lines of communication are not always entirely open, says an insider:“Learn to wear the management mask and talk the management speak. Don’t spillyour guts with them; they won’t tell you the truth exactly either.”

What does it take?

Success at McKinsey means work, and lots of it. Hours average between 50 and 70a week, with spikes near deadlines. One insider says, “In my three years, work hourshave ranged between 120 hours — the worst case — to 55 hours in seven days. Theaverage was probably around 70.” As one analyst who worked 16-hour days his firstyear recalls, “It was pretty bad at first. But in the second year I got moreresponsibility and got to manage my own hours more.” A good work/life balance istough, but possible: “In an American office you can certainly have a decent lifestyle,but you have to be organized.”

Because McKinsey discourages weekend work, the typical day runs from 8 a.m. to 8p.m., “although if the engagement requires [weekends], you have to work. In myexperience you work one weekend day a month on average, but it varies a lot fromproject to project,” says one consultant. Beach time has increased because of adecline in the availability of projects, and those projects that do come along “arebecoming shorter and shorter to meet client budgetary constraints.” As a result, “Youfind that you go through long stretches of beach time punctuated by six-week studiesin which you work 90 hours a week.”

The travel demands can be tough — “Almost all projects involve being at the clientfrom Monday to Thursday.” And the travel load is also at the whim of the client; asone consultant tells us, “Some cheap clients prefer to lock you up in an office withinthe client building so they do not have to pay, while others will fly you everywhereto their individual country’s offices and pay for all your five-star hotel stays.” On theother hand, the four-days-a-week travel schedule applies more often to consultantsstaffed on domestic projects than for those based in offices outside the United States.



L I B R A R Y

McKinsey’s clients in France, Spain and many other international offices areconcentrated in large cities where McKinsey has offices, so travel on those clientprojects is minimal — though we hear that “in Germany and Italy you can expect totravel a lot.”

Tools of the trade

For McKinsey, knowledgeable and capable consultants are its lifeblood. McKinseyis the type of place where “you learn a lot and are given a lot of responsibility fromthe first day.” To make that possible, it puts all its new hires through a program calledBCR, or Basic Consulting Readiness, that “teaches the approach to solving clientproblems.” It includes “introductory consultant training, basic framework training,introductory leadership training, engagement management training, clientdevelopment training and partner introduction.” Advanced training follows a yearlater, when McKinsey brings in an outside training firm to go over the more qualitativeaspects of consulting like communications, leadership and influencing skills.

On average, a consultant gets two days of training a month, as well as a weeklongprogram with each promotion. But because McKinsey relies heavily on itsapprenticeship program, which matches new hires with more seasoned staff, the“focus is very much on on-the-job coaching.” One caveat: Despite excellent trainingat the associate level, McKinsey’s efforts are “not as extensive for business analysts[i.e. undergrad hires].” Nevertheless, respondents tell us the opportunities are alwaysthere if you want them: “If you’re interested in learning about a particular industry,you just ask the partners.”

What’s in it for me?

Compensation at McKinsey is said to be “about average for the industry,” though onesource says it “varies significantly, depending on geography, tenure, year of entry andperformance. People with the same tenure in the same office may have differencesof 30 to 40 percent.” Along with the industry-standard cell phone/PDA/laptoppackage, the firm also offers tuition reimbursement for advanced study. The officesare said to be “fairly comfortable but not luxurious” in general, with most consultantssharing an office. Southern European offices tend to be spacious, while NorthernEuropean offices are more densely packed and organized around hoteling systems.There’s “quite a bit of latitude to what local partners do with the offices,” though inmost offices, “Space is tight, but the amenities are superb.”



Giving something back

In addition to a number of informal initiatives, McKinsey maintains a nonprofitpractice, which coordinates the firm’s community and pro bono activities. Eachoffice devotes five to 10 percent of its consultants’ time to work for nonprofitoperations. The firm served more than 200 nonprofit and/or public sector clients in2001, representing an in-kind contribution of well over $100 million. The New Yorkoffice, for instance, contributes to “United Way fundraising drives, pro bono work forthe opera, 9/11 relief organizational help and the World Economic Forum.” In fact,the Big Apple branch worked on nine separate pro bono engagements in the wake ofSeptember 11th, including serving the Lower Manhattan Development Corporationand overseeing the development of a victims database for New York State AttorneyGeneral Elliot Spitzer. In addition, the firm is also said to be “generally supportiveof individual initiatives.”

Mixing with success

Despite the fact that “there aren’t that many” minorities at McKinsey, our sources saythat the firm is “proactive and genuine in trying to attract and retain” minoritycandidates. Insiders proudly point to the “demonstrable efforts” to “provide supportand make sure candidates know we are a receptive environment.” There are both“formal and informal support networks,” and the firm has been supportive of theseefforts “from the managing director on down.” The firm has been making someprogress on this front — in Universum’s 2002 survey, McKinsey was the No. 1preferred employer among minority MBA students. But despite these efforts, oneconsultant feels McKinsey “has had mixed success in getting blacks through themerit-based interview process and limited success in retaining partner-track women.”In short, diversity at McKinsey is “not perfect, but we’re getting better, and [we are]conscious of it.”

Life at the top

Measured in terms of prestige, McKinsey is the best of the best in the consultingworld. So what are the best aspects of life and work at The Firm? For some, it is thenumber of doors the McKinsey name opens: “It’s a good reference in the future,”says one ambitious source. Other insiders point to more specific positive features.“Working in teams with smart people solving interesting problems,” offers onesource. Another consultant continues on this theme: “Colleagues are the smartestpeople you could find anywhere. The clients are the largest and most exciting firmsin the world.”



L I B R A R Y


Exchange Place31st FloorBoston, MA 02109Phone: (617) 973-1200Fax: (617) 973-1339www.bcg.com

LOCATIONSBoston, MA (HQ)54 offices worldwide

PRACTICE AREASBranding • Consumer • CorporateDevelopment • Deconstruction • e-Commerce • Energy • FinancialServices • Globalization • HealthCare • Industrial Goods •Information Technology •Operational Effectiveness •Organization • Pricing • Strategy •Technology & Communications •Travel & Tourism

THE STATS

Employer Type: Private CompanyPresident & CEO: Carl W. Stern2001 Employees: 2,790 (consultants)2000 Employees: 2,370 (consultants)2001 Revenues: $1.5 billion2000 Revenues: $1.1 billion

UPPERS

• Little travel• Firm retirement fund• Community involvement

DOWNERS

• Recent layoffs• Non-diverse management

KEY COMPETITORS

Bain & CompanyMcKinsey & Company

EMPLOYMENT CONTACT

www.bcg.com/careers/careers_splash.asp

The Boston Consulting Group

V A U L T


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• “Cream of the crop”• “NATO (no action talking only)”• “A role model for other

companies”• “Smart but not McKinsey”

THE SCOOP

The innovator

A certifiable strategy master, The Boston Consulting Group and its late founderBruce Henderson are credited with “being the father of strategic consulting, in everysense of the word,” according to Thomas Doorley, the CEO of Sage Partners and aBCG alum. Today, more than 2,000 consultants in 54 offices around the globe carryon the legacy of Henderson’s intellectual work. As a result, BCG has beenresponsible for a number of major management consulting innovations and conceptsin its 39 years, including “time-based competition,” “deconstruction” and“capability-driven competitive strategies.”

One of BCG’s best-known contributions is the “BCG Growth-Share Matrix,” whichexplains the relationship between a company’s profitability and its market share.(The famous Matrix is so widely applicable, in fact, that BCG’s web site proudlylinks to an article touting its use in square dance calling.) BCG uses tools andinnovations such as this to help its clients gain a competitive advantage. The firmhas distinguished itself by encouraging senior executives to think beyond the statusquo and embrace strategic change.

CEO Carl Stern has indicated that BCG should “buttress” some of its functional andindustry areas of expertise. “Clients want the business judgment a generalist canoffer, but also want real domain expertise in their industry and particular functions oftheir industry,” he told Management Consultant International. One potentiallyprofitable move is not on the table, however — while the firm has been approachedby potential partners, Stern also said in that publication that BCG will never mergewith another consultancy or company during his tenure.

Moving abroad

BCG is loosely organized into three main geographical areas: Asia-Pacific, theAmericas and Europe. In recent years, BCG has expanded its presence worldwide,opening offices in Copenhagen, Berlin, Athens and Cologne, Germany. The firm hasbeen active in Eastern Europe since 1985, advising on acquisitions and restructuring,including projects in the banking industry. By predicting the cost structures andservice levels necessary for success in a deregulated environment, the firm played amajor role in preparing companies for deregulation and privatization in post-ColdWar Europe. BCG has an excellent reputation in Europe; in Universum’s 2002

Vault Guide to the Top 50 Consulting FirmsThe Boston Consulting Group


L I B R A R Y

survey, the firm was ranked as the second-most ideal employer among Europeangraduate students (behind McKinsey). The company gets almost half of its revenuesfrom consulting engagements in Europe and one-third from the Americas.

BCG East

BCG has had a home staked out in Asia since 1966, when the ever-prescient BruceHenderson opened an office in Tokyo (making BCG the first Western consulting firmto enter Japan). BCG has retained this “frontier” feeling, according to one consultantwho has worked in the region. “You feel like you’re on the edge,” that consultantreports. “You work hard to set up your office. You know everyone there.”According to the firm, its office in Hong Kong (opened in 1991) signaled thebeginning of a truly strong presence in the Asian region. Offices soon followed inKuala Lumpur, Malaysia, Shanghai, Seoul, Bangkok, Jakarta, Singapore andMumbai, India.

BCG’s overseas offices aren’t just for show. While some consultancies derive mostof their business from American firms conducting operations overseas, BCG getsroughly half of its business in Asia from local entities: private companies,governments and state-run businesses. The firm’s clientele includes five of Asia’sbiggest non-Japanese companies, three of the top five business conglomerates inKorea and eight of the biggest local commercial banks in Hong Kong, Indonesia,Malaysia, Thailand and Korea.

In June 2001 BCG opened a second office in India; the New Delhi branch brings thetotal number of BCG consultants in the country to about 65. The two Indian officeswere busy in 2001, implementing risk management policies for the Central Bank ofIndia, revamping the operations of engineering confederation CII, and reworkingcorporate and retail banking strategies for UTI Bank. Elsewhere in Asia, BCG hasfound a rich crop of engagements focused on helping Asian businesses affected bythe downturn in the U.S. economy.

Ambassadors abroad

BCG encourages its international approach in other ways as well. The firm offers an“ambassador” program, which allows consultants to transfer to another office for sixmonths or longer (though the typical period is 12 to 18 months). Overseasconsultants also may transfer to American offices. (The Madrid office is said to beespecially popular.) Additionally, consultants may work on international cases(normally for multinationals). Sometimes, consultants are required to relocate to a



foreign office for the duration of a case. These relocations, however, normally arekept within BCG’s geographic groups. Consultants in Washington, D.C., forexample, might relocate to Monterrey, Mexico (like D.C., another office in theAmericas region).

Cut!

Despite maintaining a perch at the very top of the consulting industry, BCG wasbitten by the layoff bug in February 2002. With voluntary attrition declining andrevenues down from the boom era of a few years earlier, the firm announced that itwould cut about 12 percent of its North and South American consulting and supportstaff. Staffers at all levels of the organization got the ax. The firm did assert that it plansto continue campus recruiting and other hiring, albeit on a smaller scale than in the past.

Talking problems, finding solutions

As a strategy firm, BCG specializes in helping clients face their most difficultobstacles and dilemmas. In the 2001 book The Change Monster: The Human Forcesthat Fuel or Foil Corporate Change, BCG Senior Vice President Jeanie Daniel Ducktargets one of these problems, the “Change Curve” — the predictable challenges thatface organizations. It exemplifies BCG’s work with change strategy and the strategyproblems of CEOs.

BCG has also developed what it terms a “Strategy Institute” to research and fosterdiscussion on innovation. Founded by BCG Senior Vice President Bolko vonOetinger, the Institute gathers insights from leaders in various academic disciplinesand attempts to distill them into coherent strategy ideas. BCG consultants withacademic leanings may work at the Strategy Institute as counselors, and others canaccess articles and participate in discussion groups through the institute’s online“Strategy Gallery.”

In the community

On a less abstract level, BCG allows its employees to participate in the company’sefforts to support economic development in America’s inner cities, with a particularfocus on increasing available jobs and creating wealth. In 2001 CEO Stern made acommitment of $3.5 million per year to inner-city economic development projects, inaddition to office-specific pro bono projects.



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With an eye toward the future, BCG for the past several years has been involved withanother community initiative, business@school. Created in 1998 by consultants inthe firm’s Düsseldorf office, the program teaches business, economic and workplaceskills to German high school students, who take part in six to seven sessions a year,analyzing companies and creating a business plan under the tutelage of BCGvolunteers. The program has grown to include nearly 60 schools during the 2001-2002 school year.

Award-winning

At the same time that the BCG’s work has impressed clients and industry insiders, itsworkplace has also won acclaim. Consulting magazine, the self-appointed arbiter ofsuccess in the industry, ranked BCG No. 1 in its May 2001 list of The BestConsulting Firms to Work For. The publication cited BCG’s “open and honest”culture and “lack of political infighting.” Six months later, the Greater BostonBusiness Council echoed the latter point when it presented BCG with a CorporateRecognition Award for the efforts of the firm’s Gay and Lesbian Network. Also in2001, BCG’s friends at Consulting named two firm staffers, Art Peck and GeorgeStalk, to the magazine’s list of the 25 most influential consultants. Peck, a senior vicepresident in the San Francisco office, made his first appearance on the list, whileStalk, a senior vice president in Toronto, was honored for the second straight year.

Industry alterations

The shape of the consulting industry is changing, and BCG is changing with it. Thefirm has always been known as a pure strategy shop, and indeed, most of itsengagements are still strategy-based. However, the classic BCG “50/50” model —under which a consultant spends 50 percent of his or her time on each of two strategycases — slowly but ever so surely is falling by the wayside, as BCG has beenincreasing the number of reengineering and process assignments that it takes.Insiders say that while “the strong majority of cases BCG takes are still strategy, andnormally you will have two,” that is no longer universally true. “Some strategy casesaren’t just a 50 percent commitment, but a 100 percent commitment,” points out oneconsultant. Another says: “Process and reengineering cases tend to take up 100percent of your time.”

There may be other changes afoot with BCG strategy. “At BCG, we are trying tomove much more toward long-term relationships with clients, as opposed to stoppingin, doing our three-month project and taking off,” opines a consultant. “We aren’t



Accenture. We don’t move in, but we do try to maintain that relationship.” The vicepresident on the case is usually in charge, “but people at all levels keep in touch. Youdo a lot of follow-up [to] build deeper relationships.”

GETTING HIRED

BCG requires most of its applicants to apply through its web site. There is, however,a short list of elite universities the firm visits every year, and students can check thesite to see if their school is on it. The BCG site includes in-depth practice cases andbrainteasers, as well as a list of general hints for the interview process. Theapplication wizard, within which applicants create a file that they can revise andupdate before submitting, asks for everything from a scanned copy of transcripts totop location choices. It’s “exactly like a college application,” we hear. “It all comesback to the academic reputation of BCG.”

The undergraduate interview process typically consists of two rounds. Applicants atBCG-visited schools spend the first round on campus; others do both rounds in BCGoffices. In either case, the first round consists of two “fairly straightforwardinterviews” with 15 minutes spent discussing a candidate’s resume and backgroundand 30 minutes on a case. The typical case is “always from the interviewer’s ownexperience,” and applicants “can always expect a bit of math to see how fast they arewith numbers, though it’s basically qualitative.”

First-round interviews for undergraduate applicants are conducted by a local office,but the second round is at the applicant’s desired location (offers are office-specific,so it’s ultimately up to that office to decide whether or not to hire someone). Thesecond round, conducted by more senior staff, consists of three or four interviews; allbut the last follow the format of those in the first round. The final interview, with thehead of the office, is for debriefing, and insiders tell us that by the tone of theconversation you can usually tell if you’ve got the job or not. And while it may takea while to get a formal response — though some sources report hearing back the nextday — we hear the process is extremely fair and transparent. “The recruitingstructure is very good,” one respondent tells Vault. “You always know your status,unlike at other firms.”

MBAs spend both interview rounds at the nearest BCG office, to which they areinvited after dropping their resumes at their career centers. The first round consistsof two interviews, both heavy on cases. The second round involves four or fiveinterviews with managers and vice presidents; two of these are explicitly “fit”



L I B R A R Y

interviews. BCG case interviews, we hear, “are harder than all competitors. Theyare looking for you to outline the case like the other firms, but then dive deeply intoone aspect of it [to] show that you understand (mathematically) how all the levers fittogether, that of the 10 things on the table you can figure out which two to work on.”

OUR SURVEY SAYS

Beautiful minds

Sources tell us that BCG lives up to its rarefied academic image — it’s an “informalculture full of friendly people” who are said to be “collegial, intellectual, eclectic andinteresting.” The firm is extremely selective, with some respondents reportedlybeing turned down numerous times before getting the nod to hop on board. As onesource tells Vault, the firm “seeks unusually accomplished applicants, typically fromtop schools or PhD programs.” Once accepted into the firm, consultants are throwninto what one employee called “your classic up-or-out system.” BCGers are“expected to perform at a high level and [to] add not only to the output and thinkingof the team, but to the general direction of projects.” Another insider says thatmanagers at BCG “always raise the bar on you. There is a lot of support, but theyare always looking to see how high to push you.”

The average BCGer is “intensely bright,” and firm meetings always involve a “lot ofdrawing on whiteboards, a lot of discussion on a higher level.” There is a “bigemphasis on learning,” we’re told, “and it rubs off on you.” Some BCGers, however,say the intellectual atmosphere can also be a bit “smothering.” And some say it’soften the people who can crunch the most numbers — not think up the most cleversolutions — who get ahead: “I felt overall that the wrong types of people weremoving forward. [They were] not necessarily the most creative, strategic thinkers.”The same source notes an atmosphere of “internal capitalism” at BCG, in whichconsultants “need to seek stuff out. It’s very much on you to get on the right stuff.”

The balancing act

BCG expects its employees to work hard, though not always for very long. “Thereis a motivation to be efficient,” says one consultant. Typical hours for any givenweek range in the mid-50s, and weekend work is rare. And BCG doesn’t value facetime for its own sake; as one insider recalls, “If I was on the beach, I’d work not even40 hours. That’s the time when you catch up on your life.” Another consultant tells



us that managers are actually taken to task if their teams work excessive hours:“Managers are evaluated partly on their ability to create a good work/life balance fortheir team.”

Travel is also kept to a minimum; because BCG uses a local staffing model for themajority of its projects, extensive travel is relatively rare. While one source reportstraveling four days a week, he adds that “my degree of travel is very unusual for my firm.” Another insider tells us that “working on-site is somewhat unusual, unlessit’s a post-merger integration,” and most consultants travel only for meetings and deal closings.

Indeed, many BCGers report a very balanced approach to work and life; even “vicepresidents leave when they need to go to [their kids’] recitals and soccer games.”And while hours can sometimes drag on, they’re usually “flexible and self-motivated,” says one respondent. “Most of the late nights have been of my owndoing, and I am free to work at home if I want to.” Another tells us that while stafferswill work the occasional weekend, “I’ve never had a meeting scheduled on aweekend; the office is definitely not a full house.” On the other hand, we’re told,there is a palpable “give it everything” ethos among many at BCG, and “the peoplewho managed to survive the layoffs are the ones who made that sacrifice.”

Compensation at BCG is said to be competitive with other top firms, with yearlybonuses, as well as an added feature: The equivalent of 15 percent of each consultant’sannual compensation is put into a retirement fund, available as soon as they leave thefirm. BCG also offers long-term disability insurance and tuition reimbursement.

An office of your own

While BCG’s offices vary greatly, one insider tells us the New York facility is the“nicest office I’ve ever worked in.” Because much of the firm’s work is done off-site, BCGers spend most of their time at their desks — which, by the way, are theirown desks; the firm eschews “hot-desking” and “hotelling” (that is, sharing desksand offices), to the point where some BCGers get territorial over their spaces. Everyconsultant gets an office, though everyone except partners shares with one or twoother consultants. The firm is also “very responsive when you need something, or ifsomething breaks. Say you need a new headrest, it shows up the next day.” AndBCG makes sure to provide all the necessary fuel — food, soft drinks, coffee — fora long day of number crunching.



L I B R A R Y

Learning the ropes

Most years, BCG has a thorough initiation program for new hires (in 2001, it shrankfor cost reasons). During a weeklong worldwide orientation each fall, all of that year’sundergraduate hires are brought to Boston, where they meet their cohorts and learn thebasics of the consulting trade. The following April, new hires based in the Americasare brought back to Boston for a second round, where they focus on the moreadvanced, technical aspects of the business. We hear that at this session consultantsget “to see colleagues present war stories, which is good because at a place like thisyou get the feeling everyone else is a powerhouse.” Most regional training, though,has been suspended for cost-cutting reasons, and the majority of consultant educationis done through individual offices, each of which has a training budget.

Further training is mostly on the job, though each office has the option of creatingstudy plans for their employees. First-year hires are also assigned a mentor (“one ortwo levels above, someone to vent to”) and a more experienced office mate (“to askthe stupid questions”). Class activities are handled by a class dean, who organizessuch events as brown-bag speeches and class breakfasts.

Lending a hand

BCG makes a real effort to help out in the community, something many respondentscited as a major strong point of the firm. “Each office has its own pro bono budget,”we hear, and the activities are “usually related to the local community.” Mostprojects draw on consultants’ professional skills, such as helping a communityorchestra manage costs. The firm treats these projects just like its paid accounts, andwe hear that the list to participate is usually longer than the list of available positions.What’s more, the firm also provides funding for employee-directed projects, such asrunning in charity races and volunteering at battered women’s shelters. “They don’tjust say it’s a nice thing to do,” one consultant says. “They give the financial supportto do it.”

The BCG rainbow

Diversity is an issue with which many insiders say BCG is struggling. While it hasan almost 50 percent male/female split at the associate level, further up the ranks thefirm is increasingly male-dominated; as one source puts it, “As you look through theofficer corps, the leaders are the same old white men.” One potential reason is thefirm’s almost obsessive commitment to merit-based hiring: “[BCG] makes everydecision individually, looking for the best of the best, and if that’s all women or no



women, they don’t flinch.” And while racial diversity is said to be a non-issue — thefirm employs many minorities and offers an African-American support group — inreality “Our diversity seems to come more from international hires than from U.S.minorities.” Nevertheless, BCG is making a positive effort to change. At the NewYork office, “there is a woman in charge of ethnic diversity, who works specificallywith managers to do outreach at top business schools.”

What’s in the future?

While every firm has had to undergo painful cuts over the last 18 months,respondents say that BCG has handled them better than most. When the layoffscame, one source says, the firm was straightforward about it: “They had to take anaction, and they were honest about it. [BCG was] one of the only top firms to do it,unlike other firms that spun it as up or out.” And while no one can predict the future,the sense at BCG is that the worst is over. Insiders point to the firm’s strong suits —especially its ability to keep its core clients even as it expanded during the dot-comboom. “Our client relationships have remained in place,” says one BCGer. “Asclients start to pick up, we’ll be right there next to them.”



L I B R A R Y

For a detailed 40- to 50-page insider report on The BostonConsulting Group, and reports on other firms like McKinsey,BCG, Bain, Deloitte Consulting, Accenture and more, get VaultEmployer Profiles. Go to http://consulting.vault.com.


Two Copley PlaceBoston, MA 02116Phone: (617) 572-2000Fax: (617) 572-2427www.bain.com

LOCATIONS Boston, MA (HQ)26 offices worldwide

PRACTICE AREASCustomersE-Commerce Strategy GrowthMergers & AcquisitionsOperations ExcellenceOrganizational & ChangeManagementPrivate EquityStrategySupply Chain Management

THE STATS

Employer Type: Private CompanyChairman: Orit Gadiesh2001 Employees: 2,8002000 Employees: 2,800

UPPERS

• “Unparalleled” training• No face time required• Relatively little travel

DOWNERS

• High-pressure environment• Morale affected by the economy• Little diversity in upper ranks

KEY COMPETITORS

Boston Consulting GroupMcKinsey & Company

EMPLOYMENT CONTACT

http://www.bain.com

Bain & CompanyV A U L T


3


• “Well-rounded; good people, goodpractice”

• “Frat boys and sorority girls”• “Overcoming cult image”• “Non-Harvard MBAs need not

apply”

THE SCOOP

The existence of your Bain

In 1973, with sky-high dreams and only one phone line, Bill Bain and three othersset up office in his Beacon Hill apartment. The company soon outgrew its space andmoved to Lewis Wharf, an old waterfront warehouse. Under Bill Bain’s savvyentrepreneurial guidance, the firm continued to expand and quickly opened branchesin Boston, San Francisco, London, Munich, Paris and Milan. Today Bain has morethan 2,800 employees serving clients through a network of 26 offices across 19countries. Widely considered to be among the most prestigious strategy consultingfirms in the world, Bain ranked fifth on the list of the 50 most coveted employers inthe 2002 Universum survey of more than 2,000 MBA students at 35 schools.

The firm’s client base consists primarily of diversified, international corporations inall sectors of business and industry, such as financial services, e-commerce, retail,health care, consumer products and technology. These clients tend to outperform theS&P 500 by three to one, but this isn’t the only reason that Bain accepts equity as apart of its fee — the firm measures its own success by its clients’ financial results.Staff members share the rewards of these investments through Bain’s equitycompensation plan.

Inevitable changes

Bain is the smallest of the “Big Three” strategy consulting firms and prides itself onits strong, close-knit culture. Unlike competitors McKinsey and The BostonConsulting Group, Bain is rather understated; the consultancy used to be called the“KGB of consulting” because it painstakingly concealed the identity of clients andnever spoke to the press. (Bain has, in the past few years, become moreforthcoming.) The firm also deliberately limits the number of offices it opens. Bainput off opening up shop in the world’s most popular consulting venue — New YorkCity — for over 25 years, finally opening its first New York office in July 2000.Although Bain had no difficulty serving its New York clientele from Boston, manypotential recruits had expressed a desire to live and work in the Big Apple.

A launching pad

Many Bain consultants stay at the firm for a few years and then begin entrepreneurialventures of their own. Insiders testify that the firm is not only aware of this new

Vault Guide to the Top 50 Consulting FirmsBain & Company


L I B R A R Y

pioneer spirit among its staff, it encourages it. (Take the case of Intuit, a Californiasoftware firm started by Scott D. Cook, a former Bain employee, or of eBay, whichex-Bain consultant Meg Whitman helped found.) Where else do former Bainconsultants wind up? According to the firm, approximately 55 percent of those whohave left in the past five years have joined small companies or private equity firms.Another 20 percent have joined medium-sized firms, while most of the rest havelanded positions in Fortune 500 firms.

Capital-izing on opportunities

In 1984, Bill Bain founded Bain Capital, a private equity investment firm. Today,Bain & Company and Bain Capital have no official connection; Bain Capital,however, does exhibit a “preference” for Bain when it needs to hire a consultancy forits due diligence work, and the two firms are said to use a similar “results-based”operative framework. Bain consultants routinely make the move to Bain Capital; theconsulting firm even circulates “help wanted” e-mails for its VC cousin, whoserecent performance has been phenomenal. In another sign of the closeness betweenthe two firms, Bain made a significant investment in Golden Gate Capital, a $700million buyout fund launched by former Bain Capital partner David Dominik.

Bridge-ing the gap

The Bridgespan Group, a legally separate nonprofit organization, is a January 2000Bain innovation intended to provide strategic consulting to other nonprofitorganizations for a reduced fee. The best and brightest consultants from Bain canvolunteer for up to six months at Bridgespan (and take a large pay cut at the sametime). The Boston- and San Francisco-based staff of 40 serves about 10 clients peryear and is continuing to build its roster.

A new client

While you rarely hear about Bain’s clients (remember what we told you earlier aboutthe firm being closemouthed?), here’s an exception. Bain was hired by Circuit Cityin early 2001 to reevaluate its inventory management and to work on its somewhatantiquated cash registers. A Circuit City spokeswoman noted to the RichmondTimes-Dispatch (the chain is based in Richmond, Va.) that Bain had been selectedfor specialized skills in point-of-sale terminals and inventory management. OtherBain clients include diamond seller DeBeers, computer maker Dell and juice kingOcean Spray.



Bain’s culture of action

“Bainies,” as the firm’s consultants affectionately term each other, have cultivated avery close-knit, action-oriented corporate culture. Employees continually tell Vaultthat they draw much of their energy from each other. “Bainies are an amazing set ofpeople with whom one wants to spend time — not just while working,” says one.Within the offices are found “lots of self-starters” who maintain a constant focus on“the results-oriented goals of the firm.” “What are you going to do Monday morningat 8 a.m.?” is a catchphrase at the consultancy, which concentrates on producingimmediately implementable and valuable results for its clients. Orit Gadiesh (or“OG”), the brilliant, flamboyant (and purple-haired) chair of Bain & Company insiststhat it’s better to have an 80 percent solution that is immediately implementable thana perfect, 100 percent solution that is purely theoretical. One insider elaborates:“Unlike other firms that have an academic reputation, Bain is extremely intoquantifying each point and conclusion.” (The firm is quick to point out, however, thatthis does not come at the expense of producing real, tangible results.) Notsurprisingly given the unique (some might say quirky) nature of the culture,observers both within (at least at the associate consultant level) and without the firmare often quick to label Bain a cult.

No firm is an island

But no matter how insular Bain’s culture may be, the firm has not remainedunaffected by events outside its walls. Among other developments, the first-yearcompensation package for 2001 hires was cut by 15 to 20 percent. (According to thefirm, there were no pay cuts for consultants at other levels.) “The morale of the officehas been hurt by the economic downturn,” admits one consultant. “However, asbusiness picks up, everyone expects the office morale to return to the high level itwas 18 months ago.”

The ability of the Bain brass to connect with its employees has also helped keepthings running relatively smoothly, says a consultant in San Francisco. “I wasespecially impressed with how our management handled some difficult issues thispast year — for example, the September 11th tragedy, as well as the downturn in theeconomy. There were constant communications during the September events toensure employees were doing well and to encourage discussion. Later on in the year,while other consulting firms were experiencing layoffs, our management would holdtown hall meetings to provide a forum for us to ask questions and to quell any concerns.”



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GETTING HIRED

On both the undergraduate and MBA levels, “Top schools are a must, unless youwere a rock star at a middle-tier school,” though “each office has a group of coreschools that generally are located near them geographically.” The hiring processconsists of two to three rounds of interviews, which for MBAs “are conducted by themost senior staff at the firm.” Says one consultant, “One thing I really appreciate isthat Bain uses managers and partners to interview consultants — not otherconsultants who are only one or two years ahead.”

Interviews are heavily case-based, and approximately “90 percent of them come fromactual client cases handled in the office.” One insider offers the following tip: “Forcases, we’ll typically present some slides and let the interviewee know that there isinformation available if he asks for it. It’s a lot like a real case, where the client hastons of data and you have to figure out what to ask for. Getting the right data is halfthe battle.” Food is apparently a common theme in case questions; several formerinterviewees have been asked to “estimate the revenues of a McDonald’s,” and onewas asked what considerations needed to be made to expand a bagel business into anew market.

One downside of the emphasis on case questions is that “You don’t get muchopportunity to showcase your personality. The best gauge for that is your behaviorat informational events.” One source estimates that “about 60 to 70 percent of theevaluation is how well a person can work through a case during the interview.”However, Bainies do report that at least for some interviews, “The focus is onpersonal and cultural fit.” “If you’re not a fun, personable person, you won’t gethired,” says an insider. “That might work for McKinsey, but not for us!”

OUR SURVEY SAYS

Pass the Kool-Aid

The people at Bain are routinely described with such adjectives as “young,”“friendly,” “energetic” and “outgoing.” But while those may seem like genericdescriptions, insiders assert that Bain has a culture all its own. “This company hasan atypical culture, to say the least,” says an associate consultant. “It is certainlydescribed as a fraternity, and sometimes a cult.” Adds one consultant, “A certainBain behavior is expected and there is little tolerance for people who do not fit in.”



Officially, of course, Bain eschews the cult label. It asserts that its consultants areguided by a set of values known as “True North,” which encourages them to bedirect, honest and informal and to coexist in an atmosphere free from hidden agendasand politics.

Similarly, Bain’s approach to business is a departure from other firms, explains aconsultant in the San Francisco Bay area. “The way we work may take someadjustment for new employees. Because we want to make sure we are providing thebest solutions to our clients, we often debate ideas in as harsh a way possible toensure that we have addressed every issue the client might raise.” Fortunately, “Onceone has adjusted to this climate, one generally finds the debates and the challenge ofpreparing quality work thoroughly enjoyable.”

Bainies genuinely seem to enjoy each other’s company and frequently get togetheroutside the office. “We like to hire people that will really get involved in the firmoutside of just their case teams,” says a consultant in Dallas. Both informal and firm-sponsored social opportunities abound, particularly among the younger ranks.“There’s not a night of the week that I couldn’t find a group of associate consultants(ACs) doing something fun,” observes an associate consultant. “When meeting ACsfrom around the world, the story is the same.” (The firm also says that its employees,especially ACs, are active in their communities, frequently participating in office-runevents.) Many insiders say that they “have made some of [their] dearest friends atBain.” But the fraternal atmosphere has both good and bad points, according to oneAC. “It’s consistently friendly and open, but potentially stifling when you factor inhow much time many people in the office spend together.”

Friendly competition

Employees may like each other personally, but they never lose sight of the fact thatthey are competing with one another professionally. “Performance is stringentlytracked and assessed. People not performing up to high expectations are asked togo,” says a source. Before it comes to this, though, all employees are given feedbackat least twice a year and receive assistance to improve their performance. Commentsone consultant: “[Bain’s culture is] somewhat pressurized. Like any place where thebar is high and people are not expected to have leisurely career paths, performance isalways emphasized. It can be disconcerting for people used to strong autonomy andindependence to know that almost any moment can make it onto a six-month review.”As a result, while employees appear to be having a good time, “The culture is to push,push, push, almost like an investment bank.”



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Work a lot, stay at home

How heavy is the workload at Bain? “You work until you get your work done. It isas simple as that,” says a contact in Chicago. We looked elsewhere for some morespecific answers, and found that most consultants work an average of 55 to 60 hoursa week. As at just about every consulting firm, the “work hours are extremelyvariable depending on the project and the length of the case.” For example, “Thereare spikes, with the beginning of a new case being particularly grueling.” Insiderswarn applicants to find out ahead of time what they are getting themselves into, as“the hours are significantly higher than what is promised during the recruiting process.”

Keep in mind that when it comes to spending time at work, quality trumps quantity.“No doubt [Bain’s work schedule is] longer than a 9 to 5 job, but the satisfaction ofthose hours spent is more important than the physical time in the office,” opines asource. “I’ve had great 60-hour weeks and terrible 30-hour weeks.” Indeed, insidersbelieve that the work they receive makes up for the occasional bankers hours.’”“They keep us all occupied. I’m typically restaffed within a few days of the projectend [and] sometimes before the previous project ends,” says an analyst. “However,I’m really amazed at how well they make sure to put you on cases that would interestyou. Big Brother Bain knows you better than you know yourself.”

Also in the good news department, “Bain has a ‘no face time’ policy. As long as youget the job done, it doesn’t matter how early you leave. Through the upwardfeedback system, your managers and immediate supervisors are evaluated on theirability to maintain a sustainable lifestyle for the team.” Travel time, while“extremely case-dependent,” also tends to be less extensive than at many of Bain’scompetitors, which “makes it so much easier to get to know the people in the office”and enriches the social experience. Sums up one consultant, “Bain offers a great wayto get the consulting experience without the wear and tear involved with spendingthree to five days a week at the client.”

Train in Bain

Bain gets the highest ratings from its employees when it comes to training. Ravesone consultant, “Especially for a person fresh out of school and new to consulting,Bain’s training is unparalleled. There is truly a commitment to a worldwide trainingprogram.” Adds another, “Bain is fundamentally grounded on training. It is acornerstone of the work we do.” The initial “sleep-deprived boot camp for ACs”earns the most praise. “The worldwide training at Cape Cod [for associateconsultants] is great because you get so many perspectives from around the world,”



explains a Windy City AC. “We typically work on a project till 1 or 2 a.m., then anoffice hosts a party till 3 or 4 a.m., and at 7 a.m. you get up and do it all over again.”

Subsequent to that grueling two-week session, the firm offers other “major trainingevents at each level every year,” “frequent specialty and ad hoc training sessions,” aswell as “off-site worldwide training every 18 months or so.” In fact, there are fourformal training programs in the first two years alone, where consultants and ACs areexposed to real firm issues in groups of four to six people. There is also “significant on-the-job training,” and Bain “achieves good results due to the firm culture of mentoringand helping to cultivate others’ skills.” The firm has developed two proprietarytraining systems, Bain Virtual University and the Global Experience Center, to assistnew consultants while they are working on a case anywhere in the world.

Struggling with diversity issues

Bain receives mixed reviews for diversity. “At the more junior levels, there are manywomen. At the manager and partner levels, however, women can be counted on onehand,” says a San Francisco consultant. (The actual numbers, of course, varyconsiderably by office.) Notes a senior associate, “Bain is supposedly ‘good aboutwomen’ because of Orit and Phyllis Yale, the head of the Boston office, but that doesnot really extend to the rest of the North American offices.” Despite the lownumbers, Bain is “welcoming of women and treats them equally,” and “has one of themost generous maternity leave programs” of any consulting firm. One consultantdiplomatically addresses the issue by saying, “The opportunities are absolutely there,but like in any highly demanding career, I don’t think Bain has figured out the magicfix for retention of senior women and how to make the career and life balance work.But they do keep trying.”

Insiders are similarly ambivalent about the firm’s success in recruiting and retainingminorities. “They talk a lot about wanting diversity, but we don’t have it,” says anAC. The minority population is “generally represented by Indian- and Asian-Americans. However, we have few blacks and Hispanics.” This is believed to be“more of an issue of difficulty reaching critical mass rather than one ofdiscrimination,” and the firm “is making a concerted effort to hire and promoteminorities.” One source offers a small compliment to Bain’s accomplishments in thisarea: “Not many minorities apply, so we have wonderful diversity with respect to thenumber of applicants.”

Bain tells us that it is trying to remedy the situation by cultivating relationships withmore minority candidates early in the recruiting season in order to diversify the



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applicant pool. The firm is also home to Blacks at Bain (BABS), which holds anannual conference and hosts inter-office dinners and other networking events toincrease the recruiting, retention and professional development of black professionalsat the firm. Other diversity initiatives include the Bain Gay & Lesbian Associationfor Diversity (BGLAD) and the Women at Bain program.

Surprisingly few pay complaints

Compensation at Bain must be excellent, because employees only complain about ita moderate amount. “Our compensation is in line with our major competitors,however don’t expect to make the big dollars until you have been here at least five tosix years,” says a $125,000-a-year earner. Those in the unlikely position of beingable to choose between top firms are advised by an associate consultant in LosAngeles that “My offer from Bain was better than my offer from McKinsey.” Othersaren’t convinced that Bain is on par with the rest of its peers, especially since “thepay scale is being ratcheted down in light of the economic climate.” Explains oneconsultant, “The firm reduced compensation for [2001]. The first-year consultantstook a big hit.” Again, Bain contends that it was a 15 to 20 percent reduction, in linewith pay cuts throughout the rest of the consulting industry.

The firm is not alone in defending the pay cuts. The move “was management’sapproach to dealing with the slowdown in business rather than reacting to thesituation and laying off the new consultants or other consultants like some other firmsdid,” says one insider. “Almost all of the consultants in my class thought this was agood move on the part of the firm and believed that it was a well-thought-outdecision. It also showed us that the firm values its people and is willing to invest intheir assets to prepare for an upturn in the economy.” Sums up one insider, when itcomes to compensation, “Relative to other firms and other types of consulting, we rock!”

Bain provides all the perks, from insurance packages to electronic gadgets to freefood, that one would expect from a top consulting firm. There are some extras aswell, including off-site excursions to locales such as Hawaii, Acapulco and Banff.Gaming-minded employees can play pool in several offices, pingpong in theSingapore branch, and foosball in Dallas and San Francisco.




“I’ve had great 60-hourweeks and terrible 30-hour

weeks.”

— Bain consultant


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8283 Greensboro DriveMcLean, VA 22102Phone: (703) 902-5000Fax: (703) 902-3333www.boozallen.com

LOCATIONS New York, NY (WorldwideCommercial Business HQ)McLean, VA (Worldwide TechnologyBusiness & Corporate HQ)More than 100 offices worldwide

PRACTICE AREASBusiness Resilience • CorporateStrategy • e-Business • e-Government • Facilities Design &Engineering • Financial Policy,Strategy & Analysis • InformationTechnology • InfrastructureAssurance • InstitutionalStrengthening • Mission Assurance •Multinational Strategy • Operations •Organization Strategy/ChangeManagement • Program Management& Acquisition Support • Wargaming& Strategic Simulation

THE STATS

Employer Type: Private Company CEO: Ralph W. Shrader2002 Employees: 11,0002001 Employees: 10,3502002 Revenues: $2.1 billion 2001 Revenues: $2.0 billion

UPPERS

• Excellent training program• Community-minded firm

DOWNERS

• Intense culture• Pay cuts for some new MBA hires

KEY COMPETITORS

Bain & CompanyBoston Consulting GroupMcKinsey & CompanySAIC

EMPLOYMENT CONTACT

See “Career Opportunities” on BoozAllen’s web site

Booz Allen HamiltonV A U L T


4


• “Stable, well-positioned”• “Cutthroat culture”• “Still doing a great job abroad”• “Past their heyday”

THE SCOOP

The consulting pioneer

Some people travel after college or work until they find their calling. Others, likeEdwin Booz, start management consulting firms. Booz, who founded his eponymousfirm shortly after graduating from Northwestern University in 1914, probably had noidea that at the dawn of the next century, his firm would be among the mostprestigious consultancies in the world. Over the past few years, Booz Allen Hamiltonhas expanded its service lines — and grown to more than 11,000 staff in more than100 offices worldwide — to include e-business, e-government and infrastructureassurance. Booz Allen garners 80 percent of its revenues from previous clients — astrong track record of satisfaction.

Strong implementors

Booz Allen isn’t a pure strategy firm. Putting an emphasis on transformingbusinesses rather than merely prescribing change, the firm reports spending one-thirdto one-half of its time helping clients implement its recommendations. Beforeimplementation, Booz Allen works with a client to develop solutions for problemscreated by fundamental changes in a client’s industry or company — a “strategy-based transformation” — and implement changes in its organization, operations andtechnology. Booz Allen involves its clients in the consulting and transformationprocess by making a point of integrating client executives and staff into theconsulting team.

The Booz Allen split

Booz Allen divides its operations into two major business sectors, WorldwideCommercial Business (WCB) and Worldwide Technology Business (WTB). Insiderssay that in terms of interaction between WCB and WTB, “the twain rarely meet”; thefirm, however, is now trying to service WCB clients using expertise and techniquestraditionally associated with the WTB sector, and vice versa. For example, BoozAllen is working with commercial clients in the area of strategic security, a capabilitybuilt with government clients such as the National Security Agency.

WCB, headquartered in New York, is a classic management consultancy, to whichmainly recent college grads and MBAs apply. It does work in strategy, organization,leadership, change management, operations, information technology and business

Vault Guide to the Top 50 Consulting FirmsBooz Allen Hamilton


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transformation. Booz Allen’s WCB division offers these and other managementconsulting services to clients in a range of industries. The firm expedites theconsulting process for its clients by organizing its expertise into what it calls NaturalMarket Teams, focusing either on an industry, region or key functional area. Theindustry-oriented teams are Aerospace and Transportation; Automotive;Communications, Media and Technology; Consumer and Health Services; Energy;and Financial Services. The regionally focused teams serve clients in the developingmarkets of Latin America, Asia-Pacific and the Middle East. Crossing industry andregional lines are function-focused teams: Strategy and Organization, Operations,and Information Technology.

The WTB unit, based in the Washington suburb of McLean, Va., primarily caters tothe U.S. public sector market — specifically, government agencies and institutions.(One of the unit’s major engagements, which it undertook in conjunction with WCB,involved a restructuring of the IRS’s business processes.) Approximately 42 percentof WTB’s revenue is defense-related, 30 percent is civilian, 20 percent is derived fromnational security clients, and 8 percent comes from international government work.

WTB is divided into three market-focused teams (International and Infrastructure,Defense, and National Security) and two functional teams (Information Technologyand Organization & Management). The firm is planning a greater emphasis on newbusiness in the e-government area, as well as in information assurance. WTB hiresstaff at all levels and seeks technical professionals with backgrounds in IT andengineering, as well as management consultants with backgrounds in business andliberal arts.

Knowledge everywhere

The firm’s Knowledge On-Line (KOL) intranet — which pools the knowledge BoozAllen consultants pick up while on assignment — is often called the best of its kind.The shared system keeps consultants from repeating each other’s work and providesinformation on an assortment of topics, including resumes, frameworks, databasesand histories of employees.

Booz Allen consultants in both WCB and WTB now widely make use of KOL. Theintranet is set up to promote sharing of information; consultants often spend aconsiderable amount of time entering their own findings into KOL. Booz Allenachieves this informational exchange partially through an appeal to ego: Consultantswho contribute to the database have their names prominently displayed, their entriesare linked to their resumes, and it’s simple to search for any given consultant’s



contributions to the system. The firm also encourages contributions through itsperformance appraisal process — a consultant’s evaluation is based in part oncontributions to KOL.

Charitable Booz Allen

Booz Allen is committed to performing pro bono work for clients. Recent clientsinclude The Nature Conservancy, the Children’s Defense Fund, Lincoln Universityand the United Negro College Fund. Booz Allen consultants can keep track of theirfirm’s charitable moves via Community Relations On Line, the firm’s communityintranet site, which reports on current and upcoming community-serviceopportunities worldwide.

Balancing act

In addition to its charity work and other community efforts, Booz Allen also looksinward. The firm has made a strong push to create a comfortable workplace for itsemployees through work/life balance initiatives and diversity programs. Accordingto senior director Jean Callahan in a June 2001 interview with The Washington Post,women comprise 39 percent of the workforce in the firm’s McLean headquartersoffice and 22 percent of the management team. Members of minority groupsrepresent 24 percent of all McLean employees and 12 percent of management.

While those numbers may not be overwhelming, the firm has received numerousawards for diversity and lifestyle issues. 2001 marked the third straight year thatBooz Allen was named to Working Mother Magazine’s list of the 100 BestCompanies for Working Mothers. The magazine praised Booz Allen for its flex-timeprogram, on-site child-care facilities, paid family-leave plan and other family-friendly policies. Also in 2001, Washingtonian magazine ranked Booz Allen amongthe top 50 Great Places to Work in the Washington, D.C. area, and it named the firmthe Best Place to Be a Kid. Booz Allen also received the 2001 EVE Award for itsdiversity programs from the U.S. Department of Labor and the 2001 TorchbearerCitation from the Northern Virginia Family Service for promoting a balance betweenemployees’ work and their lives. The firm was also a hit abroad, ranking as one ofthe top four companies to work for in German magazine Junge Karriere’s AttractiveEmployers — 2001 survey.



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See you later

Feeling the effects of the economy, in May 2001 Booz Allen announced that it waslaying off about 95 consultants (less than 1 percent of the firm’s staff) from WCB.The firm also saw many more employees than usual leave after performance reviews.All told, according to The New York Times, almost 9 percent of Booz Allen’sconsultants departed in 2001.

At the same time, many top MBAs hired into WCB in 2000 and 2001 saw their startdates pushed back considerably. In July 2001 the firm announced that the deferralswould be six to 12 months in duration; five months later offers for MBAs from “non-core” business schools (i.e., all but the Harvards and Whartons of the world) weredeferred for longer. (The firm asserts that as of May 2002, all of the deferred MBAshave started work, or at least have a scheduled start date.) In early 2002 many newhires were told that their starting pay would be reduced. (“It was a pretty major paycut,” laments one unlucky offeree.) Booz Allen pushed back start dates for newlyhired recent college graduates as well until “sometime in 2002.”

GETTING HIRED

Booz Allen maintains different hiring practices for its two main units, WCB andWTB. WCB hires only a small number of undergraduates, who usually come on asconsultants and stay for two to three years before returning to business school. Theunit does most of its hiring from MBA programs, other consultancies and the worldof industry. The firm also hires a number of people through employee referrals.WTB, on the other hand, hires a larger number of undergraduates.

The firm has a number of different interview process models, which vary accordingto level, the unit doing the hiring and the size of the applicant pool. Forundergraduates applying to WTB who have a Booz Allen presence on their campus,the first step is usually an interview with a representative of the firm’s universityrelations team. From there they go to a second round at a Booz Allen office, wherethe firm holds an open house of sorts — various teams set up tables, and “candidateshave to walk up to a table, introduce themselves, and explain why they wereinterested in working for that team. Team representatives then ask questions andallow the candidate to ask questions.” At the end of the day, each candidate selectshis or her top three teams, and each team selects a short list of applicants. If the listsmatch up, there is a final interview round, followed by an offer.



Off campus, for both undergraduate and MBA and other experienced hires applyingto WTB, Booz Allen’s “gauntlet interview process” typically consists of a phonescreening with “technical and experience questions,” followed by three to six 30-minute interviews at the office to which the candidate has applied. “Each interviewerhas a specific topic they drill on,” one insider says, “and then we review all the resultsto determine whether we should hire the candidate.”

At the top business schools, WCB typically rents out a block of rooms at a hotel nearcampus. In the first round, candidates undergo a series of two to three interviewsconducted by second- and third-year consultants and/or principals. Insiders estimatethat about one out of three applicants makes it past the first round. The second roundis identical to the first, except that more senior people (usually principals) conductthe interviews, and the cases become fewer in number as the emphasis moves moreto fit. Third-round interviews take place at the office to which the candidate has applied.Here it is the same scenario once again — two to three interviews, including cases —but now partners run the show. Decisions and offers are made following the thirdround. Later in the school year, the firm hosts a “sell weekend” in many of its offices.

We hear that Booz Allen is good about keeping applicants abreast of what’s going on;there are reportedly no surprises in this interview process. Everyone meets with arecruiter before the interviews, who explains the process and gives advice on whatthe particular interviewers might be looking for. “This allowed me to prepare myselffor each interview,” says one source. “After the interviews I kept in touch with therecruiters until my hiring.”

OUR SURVEY SAYS

Intensity in 10 cities (or 100)

Life at Booz Allen Hamilton is nothing if not intense. The average workweek runsslightly below 65 hours, and in WCB at least, Booz Allen “is very firm about its up-or-out policy.” A number of insiders contend that the firm’s culture varies greatly,making it “somewhat hard to pinpoint and very different depending on the team.”Nevertheless, most agree that the firm is “demanding, yet rewarding.” And at leastone source thinks that “the work environment is pleasant,” because “there arenumerous programs that help to nurture and encourage a successful career, such aswork/life balance, business casual dress, community outreach and effective



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communication programs to keep you informed of events and decisions that affectyou and the company.”

Even if the day-to-day culture is difficult to define, Booz Allen’s overall corporateculture isn’t: “Booz Allen has an ‘old school’ consulting culture where people areindoctrinated in the ‘Booz’ way very quickly.” Regular training is important, and“professionalism” is a watchword around the Booz Allen offices.

Brain train

Respondents reserve their highest praise for Booz Allen’s training program. Twoyears ago the firm established the award-winning Center for PerformanceExcellence, a university-modeled program that coordinates and broadens trainingopportunities. Through the center, employees can access an internal core curriculumof courses as well as external opportunities, and the firm reimburses for any costsincurred. The headquarters office, for example, has even “set up relationships withuniversities to bring them on to the McLean campus.” “We all get monies for bothinternal and external training and are encouraged to use it,” says one contact. “Mymanager stays abreast of everyone’s training monies to ensure that you use it fortraining of interest.”

In 2002, the firm made Training Magazine’s list of the top companies for humancapital development. That year, it also received the Corporate University XchangeExcellence Award in the e-learning category, an honor given to organizations thathave demonstrated innovation in corporate education and training. Indeed, even in atime when cash droughts are forcing training cutbacks at many firms, we hear BoozAllen has kept its education coffers full (spending $5,000 per employee on trainingeach year, according to the Financial Times). “The opportunities to pursue suchtraining are almost limitless,” raves one consultant.

Have some respect

Employees generally appreciate the sense of mutual respect they find at Booz Allen;one called it a “very professional atmosphere, where junior staff are given theopportunity to excel from Day One.” Still, cautions another contact, “There is also astrong hierarchy at Booz Allen which often deems how the first interaction with anexecutive will occur,” though “after they know an employee, the hierarchy tends tobreak down.”



The firm makes sure mutual respect and communication are part of the daily structureby providing an “extensive coaching and leadership training program to ensure allsenior leaders are aware of their responsibility to the staff,” as well as “an appraisalsystem where staff have ample opportunity to give direct messages and feedback totheir supervisors.” Most consultants give favorable reviews of their managers, whoone source tells us “are always looking toward ways of helping us out. Sometimeswe receive little thank you cards to express their gratitude for all the hard work weput into a project.”

Ultimately, though, for those averse to Booz Allen’s intense atmosphere, the firm canseem “surprisingly competitive. [It is] superficially cooperative in verbiage and‘values,’ but not in reality.” One consultant tells us that “there is no real levity in theworkplace — human kindness seems to come more from an etiquette book than fromthe heart.”

Lots of hours, but flexible

While the average hours at Booz Allen are demanding, the firm does what it can tomake a relatively stable work/life balance possible. Of course, in consulting one cannever predict how many hours will be spent on the job during a given week, and thebottom line is that “we are at the mercy of the client’s timetable. Based on their poortime management, our time is compressed, requiring intense last-minute efforts.”The hours “ebb and flow and are tough to gauge.” And at Booz Allen, it seems thatthe better a worker you are, the more responsibility and tasks you will be given: “Thenumber of hours you work is directly related to your team’s growth rate, staffinglevels, and your ability to assume more responsibility. If your team has a lot of workand you show yourself capable, you will get loaded down.”

To help with the workload, Booz Allen managers give their employees as muchflexibility as possible. “We have ‘core hours’ that staff are expected to be in the office,”reports one source, but “there is a high degree of autonomy to get your assignmentscompleted.” In general there exists “minimal micromanagement, although each teamdiffers in management style.” Employees can work from home if need be, and toughweeks are offset by light loads later on: “If I’ve had some very long hours, I’musually able to take some time off afterwards to take care of personal business.”

Travel is also said to be light; at WTB, where the clients largely are governmentagencies based in the D.C. area, very few overnight trips are required. “Most of thetravel I do,” reports one source, “is within the local Washington metro area;traveling to and from client sites for meetings.” And while WCB employees



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understandably spend considerably more time on the wing, even their load is lessthan the industry standard.

Cash and benefits

Consultants at Booz Allen say that “compared to [the] industry average, we are well-compensated,” though junior WTB staffers grumble about the lack of bonuses.Nevertheless, we hear Booz Allen is good about recognizing individual achievementat the junior levels, through incentives such as a VIP award and free vacations foremployees in WTB. “Time spent on your work is reciprocated back to you indifferent ways,” says one Boozer. “The firm believes in identifying andacknowledging hard work and providing clients with the very best support possible.”

Booz Allen gets high marks for its benefits. “The firm takes a lot of pride in keepingits employees happy,” one source tells Vault. There are company picnics and a “greatholiday party in December”; the firm also offers on-site banking (in McLean), profit-sharing, employee referral bonuses and a robust insurance package. And, in theUnited States, “the firm provides compensation by putting money toward your401(k) directly, without needing you to match it.” It’s “the best 401(k) program outthere,” remarks one source. Sports tickets, e-tailer discounts, amusement parkdiscounts and a company store are added perks.

Home sweet office

Most consultants couldn’t be happier about their offices. In McLean, there are “nocubicles or hot-desks”; rather, everyone shares an office with one other consultant(higher-ups, naturally, get their own). Things are nice to a fault, though, for some;one source complains that “Everything is dictated by level — including the size andshape of my desk. For example, I wanted to make the surface area of the desk smallerso I would have more room for a small table and was told no.” Some insiders saythat the offices at the McLean headquarters are too small for two people, andemployees “are tripping over each other. We cannot conduct informal team meetingswith others, which provides for scheduling conflicts when conference rooms aren’tavailable.” One source reports that the regional offices don’t match up to thecorporate headquarters: “Regional locations do their best to mimic corporate officesbut fall short.” On the other hand, the source tells us that the regional offices makeup for the disparity by creating “their own cultures and supplementing missingamenities with more social activities for the team.”



The faces of Booz Allen

Booz Allen is aggressive in addressing issues of gender and racial diversity, and itputs its money where its mouth is: “We have several women’s groups backed by thefirm to ensure equal access and treatment,” notes one consultant; the firm alsosupports a diversity council. And in a July 2002 cover story featuring Booz Allen’sfive African-American partners, Consulting wrote that the firm “arguably has the bestrecord in the profession for attracting people of color to their senior ranks andretaining them.”

However, many insiders think it could be doing more. “I think the firm does a lot tobridge the gap in terms of [gender] diversity,” says one woman consultant. “But itstill has quite a ways to go. We are consistently named to the top-company lists forwomen because of perks such as parental leave and day care, but the tougher issueslike women in leadership are not that well-addressed.” Another insider puts it evenmore bluntly, saying that “[Booz Allen] is the least diverse organization I’vebelonged to in over 20 years. It’s OK at the lower levels, but no one seems to findqualified women or minorities for the Level IV [senior associate] and Level V[principal] positions.”


Community involvement at Booz Allen is very important, and insiders tell us thatfunding for just about any project you can think of “is easy to get.” Booz Allenmaintains a community relations team that coordinates its charity activities and probono consulting work. Reports one source, “I’ve done several firm-sponsoredevents, [including] Christmas in April and the Homeless Walk. I’ve also had the firmprovide a grant to the organization that I am personally involved with, Habitat forHumanity.” Another source tells us that “I was active with a Korean-Americanorganization and Booz Allen was very active in sponsoring our college internship andhigh school mentorship programs.” The firm also matches donations for disasterfunds and corporate challenge events. Yet another Boozer tells Vault about the firm’ssponsorship of his AIDS Ride team: “Transportation to North Carolina and lodgingthe night prior to the ride was provided by Booz Allen. Employees from Durhamprovided us with a breakfast the morning of the kickoff and we had a greatwelcoming committee in D.C.”



L I B R A R Y


Two Canal ParkCambridge, MA 02141Phone: (617) 252-2000Fax: (617) 252-2100www.monitor.com

LOCATIONS Cambridge, MA (HQ)30 offices worldwide

PRACTICE AREASCustom Model/Software Design E-Commerce Economic Development ConsultingExecutive EducationFinancial Assessment/EvaluationMarketing StrategyNonprofit ConsultingOperations & LogisticsOrganizational DesignPrivate Equity Private Equity Consulting Scenario Planning Strategic TransactionsStrategyVenture Capital

THE STATS

Employer Type: Private Company Chairman: Mark Fuller2001 Employees: 1,200+2000 Employees: 1,000

UPPERS

• Flexible travel• Swank Herman Miller decor

DOWNERS

• Budget cuts• Not enough training

KEY COMPETITORS

Bain & CompanyBoston Consulting GroupMcKinsey & CompanyMercer Management ConsultingThe Parthenon Group

EMPLOYMENT CONTACT

[email protected]

Monitor GroupV A U L T


5


• “Big thinkers”• “Arrogant”• “Impressive track record”• “You can only cruise so far on

HBS books”

THE SCOOP

Monitoring the world

Founded in 1983 by a group of professors and consultants, Monitor Group aims toput ideas created in the business and academic worlds into practice. Though only amedium-sized firm by industry standards, Monitor has developed a number ofpractices and expanded its client list to include everything from Fortune 500companies and international firms to government agencies and major nonprofitorganizations. Through its 30 offices in 23 countries, it offers advisory services inareas including private equity and venture capital, e-commerce incubation, andmergers and acquisition-related transactions.

Breaking it down

Monitor divides its operations into three groups — Action Group, which focuses onconsulting practices; Monitor Merchant Banking, which is involved in capitalinvesting and venture projects; and the Intelligent Products Group, which designscustomized data and software products. Each group, in turn, comprises a number ofcompanies; for example, Action Group includes such operations as the GlobalBusiness Network, an organization of top firms in various industries, andMarket2Customer, a marketing consulting operation. Merchant Banking companies,such as Monitor Clipper Partners and Monitor Ventures, have an equity stake in 20firms and over their collective lifetime have invested over $1 billion.

Unified consulting

Monitor predicates its consulting philosophy on a “unified theory” approach. Ratherthan applying a single strategy to every client or set industry practices, the firmintegrates its operations across industries, allowing its projects to use resourcesculled from the firm’s various subsidiaries. Instead of relying on generic practices,Monitor consulting teams are able to draw on marketing, e-learning and softwaredesigners to customize their solutions.

It’s academic

Much of Monitor’s strength comes from its grounding in the academic world. Oneof its founding principals, Harvard Business School Professor Michael Porter, is averitable demigod among consultants and still remains an influence on much of

Vault Guide to the Top 50 Consulting FirmsMonitor Group


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Monitor’s structure and practices. Other principals, such as Bernie Jaworski, MikeJensen and Tom Copeland, have strong ties to academia and retain fellowships oradjunct professorships at some of the nation’s leading business schools. In March2001, MarketspaceU, Monitor’s research and publishing unit, announced apartnership with McGraw-Hill to produce a series of written materials on e-commerce for business professionals, students and educators. The title that spawnedthe series, e-Commerce (co-authored by Jaworski and Jeffrey Rayport, another HBSprofessor), is an integrated print and online textbook that has already been adoptedby nearly 200 business schools.

Feeling the burn

The impact of the recent economic downturn hit Monitor in mid-2001, particularly inits North America and European offices, as well as its e-consultancy, known asMarketspace. Layoffs hit Europe in July and North America in August, with cuts ashigh as 15 percent in some offices, (the deepest cuts came in satellite offices such asLos Angeles and Toronto). Nevertheless, the company continues to do well in LatinAmerica and Asia, and both regions were spared from any staff reductions.

GETTING HIRED

In keeping with the firm’s anti-hierarchy bent, new hires at Monitor go by the title“consultant” whether they are straight out of undergrad or seasoned MBAs(Naturally, salaries and responsibilities vary). In a normal year, the firm will hireabout 50 MBAs and even more undergrads, but recently the economy has put thepinch on recruiting. Always difficult, getting hired is “now pretty much impossible.”Monitor recruits at top-tier universities and leading liberal arts colleges, thoughrecruiting in the 2002-2003 cycle will be restricted to only a few top schools.

To get in, candidates need more than good grades and a knack for business —Monitor goes the distance to make sure candidates fit the culture. As one sourceelucidates: “It doesn’t take much to get denied an offer. Monitorites who attendedyour college or university are often consulted as to your character even before youget an interview.”

Monitor’s interview process typically consists of two rounds. The first round is a setof two short meetings: a resume briefing and a case question. The case interviewsometimes “throws people for a loop,” one source tells us. “You get maybe 10 or 15minutes to look over some materials and then with the assistance of the consultant,



you solve three questions related to the data. It can be intimidating if you don’tprocess information quickly or if you don’t manage the time you have well.” Thesecond round is an all-day affair, usually held at the nearest Monitor office.Eschewing the industry-standard brace of high-level interviews and one-on-one caseproblems, Monitor groups candidates into teams of five, who work together on a casepresentation. There is also a videotaped role-playing exercise and a debriefinginterview at the end.

Monitor relies heavily on its summer internship program, using it as its primarysource of new hires during lean years. Interns are staffed on firm projects as if theywere full-time employees. “I did what a normal first-year consultant would do, saysone former summer staffer. “I learned a lot about what consulting really means andgot paid exceptionally well. There were a lot of nice social activities includingdinners, tickets to baseball games, a whitewater rafting trip and other field trips.”

OUR SURVEY SAYS

Something different

Despite its perennial spot among the top 10 consulting firms, Monitor’s employeeslike to emphasize how their firm rejects the cutthroat attitude of the Bains andMcKinseys of the world. “Monitor does not have an ‘up or out’ policy like many ofits competitors,” one insider says. The firm is close knit and casual, insiders tell us,and it likes to keep it that way — “Monitor regularly turns away extremely qualifiedcandidates whom Monitor considers better suited to work at McKinsey, Bain, BCGand other large consulting firms.”

While the Monitor culture “tends to vary from office to office,” those who stick withthe firm do so because of “a combination of people who are incredibly smart but low-key and lots of interesting things always going on.” And despite its avowedlyintellectual flair, the consulting staff is “cooperative rather than competitive andreally likes to socialize outside of work.”

Work for Monitor, sleep in your own bed

Even though the firm has clients throughout the world, Monitorites say one of thebest things about the job is the relatively low level of travel. “At Monitor there is nogreat emphasis on spending time at the client simply to spend time at the client,” one



L I B R A R Y

consultant reports. Employees are able to work with the firm’s allocator to findoptimal assignments, and Monitor is very accommodating toward families: “I askedto be kept off of travel-intensive cases for personal reasons and I ended up beingaway for two days over the course of over a year.”

When fully staffed, consultants usually work on two cases at a time, and seemresigned to the job’s long hours. “Hours are pretty standard for a strategy consultingfirm,” says a source. “50 to 60 hours in a typical week, up to 90 in a bad one, whichmay occur once every few months.” Others put the upper end of a typical weekcloser to the 75-hour range. One tip for prospective Monitorites hoping to avoid agrueling schedule: Work on internal projects, which tend to have shorter and moreregular hours. In any case, says one insider, be assured that “it is a consulting firm,so it’s not 9 to 5. [But] it’s also NOT an investment bank.”

Workers of Monitor, unite!

One downside to life at Monitor is what insiders characterize as a imperfect level ofcommunication between junior and senior staff. “The leadership tends to be secretiveand evasive,” one consultant says, “the result of which is an ‘it’s us against them’mentality for some junior consultants.” Another says that “There tends to be a lot ofunspoken bureaucracy and it’s difficult to figure out how to navigate the system.Things tend to be more ad hoc here rather than systematized.”

While insiders tell us that “immediate supervisors tend to treat [us] with a great dealof respect,” they say that some problems result from the firm’s “Mr. Nice Guy”image: “Monitor doesn’t always know how to deliver tough messages. For example,the 2001 end-of-the-year compensation and bonus messages were extremely vague,contradictory and confusing. I attribute this to Monitor’s inexperience withdelivering unpleasant messages to its employees.” And while senior staff may seemless than forthcoming at times, junior staff have a check: an upward review systemin which managers who “continuously receive poor evaluations from the juniormembers on the team have to address their performance.”

Painful cuts

Like most firms, Monitor has been forced to cut back on expenses in recent years,and the brunt of its cuts have come in the areas of compensation and training. Andwhile Monitor makes sure to pay new hires the industry average for top firms, it haslagged in handing out raises and bonuses (typically the firm bases compensationadjustments on performance). More than the money, many consultants say they are



frustrated with the way the firm has handled the pay freezes: “Last year the firm ledemployees to believe that bonuses would be paid, right up until the week ofChristmas, when they were canceled.” Another puts it into this perspective: “Thesystem tries its best to be fair and meritocratic but just tends to confuse.”Nevertheless, most are happy with the salaries they take in, particularly at the first-and second-year levels. “I think for a recent college graduate with no experience,”offers one newly minted Monitorite. “I’m extremely well-compensated.”

Monitor consultants have plenty to say about the firm’s perks, and most of it isnegative. Many of the complaints surround the 401(k) plan, which does not includematching contributions. That appears to be the only area in which the grumbling isjustified, however. For example, the London consultant who says that “Monitor hasalways had a very light benefits package by any standards,” also enjoys long-termdisability insurance, an employee referral bonus, a laptop computer and an on-sitegym, among several other perks. Additional offerings include stock options, anemployee assistance program, sports and theater tickets, and free food and drinks.

Hot and cold

Training has been a major area of cost cutting for Monitor, a formerly strong suit thatsources say is sorely missed. “Monitor training is very hot and cold,” we hear.“When it happens it’s usually very good, but it’s the first thing to get turned off whentimes are hard.” For new hires, Monitor provides a five-day general orientationsession, followed by three days of training at the local office. They are then assigneda mentor, and over the next two years they are required to complete a set of fivecourses in such key subjects as finance, marketing and interpersonal skills.

Nevertheless, some insiders say that there is too little training on the front end:“Monitor has training programs throughout your career, instead of having intensivetraining when you start. It may make more sense for us to provide new hires withmore up-front basic training.” And classics majors beware. While Monitor’s trainingprogram is typically strong, it assumes a lot of knowledge that most liberal artsstudents never acquired. One consultant reports that “The corporate finance trainingwas geared towards an intermediate level, which was great for undergrad consultantswho had majored in finance and accounting, but for liberal arts majors, the trainingwas way over our heads.”



L I B R A R Y

Monitoring diversity

Many female sources report being very happy at the firm. One female consultantsays that “as a woman, I feel that I have role models — although not as many as Iwould like — at the group leader [partner] level.” On the other hand, she continues,“The company does need to think more about alternative career paths for womenwith children.” But others say that the long hours and travel required of Monitoremployees are just the costs of being a consultant. It’s “a great job when you’resingle or newly married,” one female source tells us, “but once you want to starthaving a family, forget it.”

As for minorities, most insiders believe that Monitor is a tolerant and welcomingenvironment, but contend that the firm is still “very white-bread.” One sourceattributes the paucity of non-whites to the lack of a diversity infrastructure: “Monitordoes not have support programs, which limits the number of minorities who seeMonitor as an attractive place. The company could choose to address this, but doesnot do so explicitly. In general, Monitor is a fairly liberal environment but could domore in this domain.”

The firm does, however, offer domestic partner benefits, and homosexualrespondents report a strong gay and lesbian support network. “There are at least twolong-term Monitorites I know of who have progressed well and have been openlygay/lesbian,” one source tells Vault. “I have never heard of any negative commentsor bias in any way.”

Green and orange surroundings

Insiders rave about the office space at the firm’s Cambridge headquarters. “Monitorhas put great thought into the offices and the layout and amenities,” says one. “TheCambridge office is decked out with Herman Miller chairs, art everywhere and thesecrazy geometric walls painted subtle greens and oranges.” Consultants “share officeswith one, or sometimes two, other consultants,” and “every office gets natural light.”Quips one source, “Offices used to be cramped, but layoffs solved that problem.”The office also has a nap room, “ a comfy TV room” and “ a small workout roomwith great showers that are always clean and stocked with fresh towels.” As oneinsider puts it, “If you are going to work as hard as we do, it’s nice to spend your timein a pleasant environment.”





L I B R A R Y

For a detailed 40- to 50-page insider report on Monitor Group,and reports on other firms like McKinsey, BCG, Bain, DeloitteConsulting, Accenture and more, get Vault Employer Profiles.Go to http://consulting.vault.com.


1166 Avenue of the Americas32nd Floor New York, NY 10036Phone: (212) 345-8000Fax: (212) 345-8075www.mercermc.com


PRACTICE AREASFunctional Practices:Business Design InnovationCustomer ScienceValue Nets and Supply Chains

Industry Practices:Communications, Information, and

EntertainmentEnergy, Life Sciences and Core

IndustriesFinancial Institutions and Risk

EnterpriseManufacturingPrivate EquityRetail, Consumer and HealthcareTravel and Transportation

THE STATS

Employer Type: Subsidiary of Marsh& McLennan Companies, Inc.Chairman: Peter Coster2001 Employees: 1,2002000 Employees: 1,3002001 Revenues: $2.2 billion (for allMercer Consulting operations)2000 Revenues: $2.1 billion (for allMercer Consulting operations)

UPPERS

• Marked camaraderie• Programs allowing consultants to

work on outside projects

DOWNERS

• Recent cost-cutting measures• Supportive but “unforgiving”

culture

KEY COMPETITORS

Bain & CompanyBooz Allen HamiltonBoston Consulting GroupMcKinsey & Company

EMPLOYMENT CONTACT

[email protected]

Mercer ManagementConsulting

V A U L T


6


• “The slowly but surely rising star”• “Unclear focus”• “Hotshots”• “Generic”

THE SCOOP

A part of the whole

New York’s Mercer Management Consulting, a subsidiary of professional servicestitan Marsh & McLennan Companies, has made quite a name for itself. Formed in1990 by the merger of Temple, Barker & Sloane and Strategic Planning Associates,Mercer has grown rapidly, opening offices in Europe, the Pacific Rim and LatinAmerica and acquiring a number of boutique consultancies, including CorporateDecisions, Inc. (CDI), Germany’s Dr. Seebauer & Partner GmbH, Mexico’s Analisisy Desarollo de Proyectos and Switzerland’s St. Gallen Consulting Group. As of mid-2002, Mercer Management Consulting has approximately 1,200 consultants andsupport personnel in 22 offices worldwide.

From outsider to insider

When it was founded, Mercer was considered a brazen startup in a field dominatedby giant, established firms like Bain and Booz Allen Hamilton. But the firmexpanded its practice quickly by aggressively pursuing clients and rooting its workin a series of well-publicized books, including The Profit Zone, Value Migration andProfit Patterns. These books advocate a customer-focused approach to a company’scompetitive advantages, a philosophy that apparently has rung true with manybusiness leaders.

But like many consulting firms in the last few years, Mercer’s attempt to situate itselfat the forefront of high-tech and international markets left it exposed to the dot-comimplosion and economic downturn. Marsh & McLennan reported that 2001management consulting revenue was down 21 percent from the previous year. InNovember 2001 Mercer closed its Geneva and Washington, D.C. offices, displacing77 employees. Partners were given the choice to relocate, while rank-and-fileemployees were given severance packages. The economy has affected recruiting aswell — where in the past Mercer hired in the range of 30 to 45 MBA interns and 25to 30 summer analysts each year, in 2001 the firm canceled its internship program.Happily, the program resumed in 2002.

Profitable publications

One of Mercer’s greatest strengths lies in its intellectual capital, led by strategy guruAdrian Slywotzky. Slywotzky, a Mercer vice president, is credited with coining the

Vault Guide to the Top 50 Consulting FirmsMercer Management Consulting


L I B R A R Y

term “value growth” in his 1996 book, Value Migration, and with spearheading thedevelopment of a more outwardly focused approach to competitive strategy. InOctober 1999, Industry Week named Slywotzky one of the most influential people inmanagement, along with business world luminaries like management theorist PeterDrucker and Microsoft founder Bill Gates.

Taking on the high-tech world

In February 2000, Mercer and its sister company, MMC Capital, jointly formed aventure capital fund, the MMC Capital Communications and Information Fund.Capitalized in part by Mercer professionals, the fund invests in telecom andcomputing sector technologies and will ultimately allow Mercer consultants to reappart of the fund’s gains. Currently it holds stakes in CCC Network Systems, EquatorTechnologies, GlobeRanger, Southampton Photonics, Verance, Xanoptix and Xelus.In April 2000, Mercer formed a consulting practice that helps private equity firmsidentify new business opportunities. Also that year, the firm announced acollaboration with IBM to incubate and build new e-businesses.

Other engagements

The firm stayed active in 2001, providing strategy advice for the December mergerof Hawaiian Airlines and Aloha Airgroup into Aloha Holdings, Inc. (Hawaii-basedMercer consultants have continued to work on the project in 2002.) And in January2002, Mercer advised Sinotrans, a large China-based shipping company, in areorganization in preparation for a listing on the Hong Kong stock exchange. It alsocompleted an exhaustive study of the success of transatlantic mergers andacquisitions and advised a major automaker on branding strategies.

Serious personal time

In the fall of 1999, Mercer announced the 10/11 Month Year, a program that allowsconsultants to take one or two months off each year (without pay) to pursue projectsoutside the firm. Consultants can also take advantage of an externship program thatallows them to work for six to 12 months at selected firm clients as well as othercorporate, venture capital, start-up or nonprofit organizations.

Developing the core

Mercer prepares its consultants with several platforms of professional training, whichinclude orientation, toolkit, case simulation, experienced consultant and senior



associate training. Consultants in the Core Consulting Group (generalists) arerequired to attend occasional weeklong programs to sharpen their consulting skillsand to network with colleagues from other offices. Mercer also has a generoustuition sponsorship program on both continents for employees interested in going tobusiness school. (They must commit to returning to Mercer upon completion of theirMBA in order to qualify.)

GETTING HIRED

Mercer hires recent college graduates for its analyst positions and MBAs for itsassociate positions. At the undergraduate level, Mercer actively recruits atDartmouth, Duke, Harvard, Northwestern, Penn, Princeton, Stanford and Yale (inaddition to a number of Canadian and European schools). In search of MBAs, thefirm travels to Harvard, Kellogg, Sloan, Stanford, Tuck and Wharton, plus Canadianand European schools. Despite this far-flung search, Mercer does not staff its upperranks strictly with business school grads. The firm employs a merit-based promotionstructure in which consultants joining out of college can advance to the partner levelwithout a graduate degree.

Mercer maintains a detailed explanation of its interview process on its web site. Ithas background and tips to keep in mind during the firm’s case and resumeinterviews, as well as two interactive cases with which to practice. (The cases aregeneral enough, and good enough, that even if Mercer isn’t on your list you shouldcheck out the site to bone up for other interviews.) Mercer urges intervieweesdaunted by the prospect of the case interview to relax — the firm is “not looking fora specific answer,” it’s simply “trying to gain some insight into your thoughtprocesses.” These aren’t “bad cop, stress interviews.”

Insiders tell us to expect three rounds of interviews, with the first two on campus andthe last at the office to which the candidate is applying. The first generally consistsof one 30-minute case interview and one “fit,” or resume, interview, while the secondround is typically two cases and one fit. The last, a half-day affair, also involves twocases and one fit interview. Because Mercer is “more of a pure strategy firm,” casesare a central part of the process; one contact reports that “success on the caseinterviews is absolutely critical,” though the right approach is also important.Insiders warn that candidates should “stop trying to use Porter or BCG frameworksto crack the case — use your head and good business sense from the perspective ofthe customer.”



L I B R A R Y

One consultant advises: “Personality is really important. Mercer turns downs manypeople who ‘ace the case’ because they do not fit. Arrogance is a sure way not to getan offer.” Another source suggests “calling up someone from Mercer that you meet atan info session and asking them for tips,” because “people at Mercer are very committedto recruiting, so they will always be willing to squeeze you into their schedule.”

OUR SURVEY SAYS

Nice people, smart people

Life at Mercer is pretty good, we hear. “One reason I joined Mercer was the culture,”says one source. “There are very smart people, but also very likeable people.” Theoffices are said to be friendly, sociable places. “Partners all have a very open-doorpolicy,” comments one consultant. Work hours and travel are pretty typical for theindustry, but few people work weekends, and travel, when necessary, is kept to aMonday morning/Thursday evening schedule. As always with consulting careers,however, one good or bad engagement can change everything. One respondent tellsVault that the Mercerian quality of life “is pretty project-dependent. The project I’mon now goes from about 8:30 a.m. to 9:30 p.m., with some weekends.”

Mercer is also typical of its industry in that it is male-dominated; as one insiderexplains, “The lifestyle, for some reason, seems to attract more men.” Nevertheless,the firm has a number of initiatives, including a women’s consulting club, toencourage diversity. When it comes to negotiating child care issues, the firm is“pretty flexible in trying to work with people”; one respondent tells Vault of a femalepartner who was allowed to work half-days so she could spend time taking care ofher young child. The firm adds that part-time schedules, leaves of absence and otherwork/life balance programs are available to both male and female employees.

Learning the ropes

New hires at Mercer go through two weeks of consulting training at their homeoffice. After six months, consultants undergo a week of more focused training inspecific skill sets. Ongoing, online training is available over a company intranet, andMercer consultants often coordinate office-based instructional sessions. As at mostfirms, training budgets at Mercer have been affected by the economic downturn, butmostly around the edges; for instance, instead of flying everyone to a single locationfor their six-month training session, instructors are now flown to different offices.



Most respondents don’t seem to care all that much about official training anyway.“Informal channels are pretty predominant,” we’re told. “It’s probably 90 percent ofthe best training.”

Tightening the belt

In addition to the closing of its Geneva and D.C. offices, Mercer’s cost-cutting focushas also caused the disappearance of amenities like free sodas (now they’resubsidized) and free lunches on Fridays. Another result of the belt tightening is theincreased rigor of the firm’s periodic review process. “Mercer policy has alwaysbeen that the bottom 10 percent get cut every six months,” one source tells us, thoughduring the dot-com boom, when high attrition was a problem, the review policy hadfewer teeth. Now “the issue is that no one is leaving,” and as a result the reviewprocess is much stricter. On the other hand, the firm asserts that there has never beenan official policy of cutting a specific percentage of the workforce; rather, it says thatunderperforming employees are let go just as they would be at any other company.



L I B R A R Y

For a detailed 40- to 50-page insider report on MercerManagement Consulting, and reports on other firms likeMcKinsey, BCG, Bain, Deloitte Consulting, Accenture and more,get Vault Employer Profiles. Go to http://consulting.vault.com.


Route 100Somers, NY 10589Phone: (914) 499-1900Fax: (914) 765-7382www.ibm.com/services

LOCATIONSSomers, NY (HQ)300+ offices (including datacenters) in 160 countries worldwide

PRACTICE AREASBusiness Innovation Services

(traditional consulting)Integrated Technology Services

(systems integration)Learning ServicesStrategic Outsourcing Services

THE STATS

Employer Type:Corporate Business UnitStock Symbol: IBMStock Exchange: NYSESenior Vice President & GroupExecutive: Doug Elix2001 Employees: 149,0002000 Employees: 150,0002001 Revenues: $35.0 billion2000 Revenues: $33.2 billion

UPPERS

• Wide range of opportunities• Work involves cutting-edge

technology

DOWNERS

• Bureaucracy • Semi-rural headquarters

KEY COMPETITORS

AccentureComputer Sciences CorporationElectronic Data SystemsPerot Systems

EMPLOYMENT CONTACT

www.ibm.com/services/career

IBM Global ServicesV A U L T


7


• “The behemoth of IT consulting”• “Still too tied to their hardware”• “Rock solid”• “Stick to the outsourcing, boys”

THE SCOOP

Biggest of the big

IBM is the world’s largest high-tech concern, and subsidiary IBM Global Services isthe world’s largest IT consultancy. With almost 149,000 employees, it is also IBM’slargest division, as well as its fastest growing (currently, it produces a 40 percentshare of Big Blue’s total revenues). IBM Global Services may be getting muchlarger. In July 2002, IBM announced the $3.5 billion acquisition of PWC Consulting.Global Services’ biggest operation is outsourcing — running IT systems for some ofthe world’s largest companies — but it also provides such services as customerrelationship management, hosting and IT consulting. The division is split into fouroperations: Business Innovation Services, Integrated Technology Services, StrategicOutsourcing Services and Learning Services. In 2001, the combined efforts of BIS,ITS, SO and Learning Services yielded $35 billion in revenue, and IBM GlobalServices signed services contracts totaling $55 billion.

But despite being the center of the IBM universe, Global Services is a bit of amaverick. Much of its work is in areas outside IBM’s hardware and softwareexpertise, and because it is committed to brand neutrality, it often recommends theproducts of IBM’s competitors. Its position has led to more than a few run-ins withthe firm’s other divisions, which in the past have seen Global Services as arrogant,self-interested and a detriment to IBM’s overall success. These conflicts have beenmostly put to rest; in any case, the division is in the catbird seat — Big Blue’s newCEO (as of March 2002) is Samuel J. Palmisano, former head of Global Services.

Collecting awards

Global Services is not only the biggest in the IT consulting world, but it is one of themost respected. Its position was confirmed in February 2002, when it won theManagement Consulting Association’s Best Management Practice Award for IT. Theaward came after the successful completion of a project for the U.K. government inwhich Global Services created an online system allowing civil servants 24-houraccess to policy papers and statistics.

A demanding business

One of Global Services’ biggest challenges has been the shift in customer demandfrom outsourcing to hosting. As companies face pressures to reduce their IT budgets,

Vault Guide to the Top 50 Consulting FirmsIBM Global Services


L I B R A R Y

they have begun looking for vendors to provide them with an easily scalable, full-service product that they can tailor to their specific needs. In response, GlobalServices is heavily marketing its eBod, or “e-Business on Demand,” suite of services.Essentially an IT department for hire that treats computing as a utility, eBod offersall the personnel and applications a company might need for a simple user fee,which can be scaled to fit a client’s exact needs. The service has been very successfulin Asia, already inking a multibillion-dollar deal with an unnamed, 100,000-employee conglomerate.

Signing on the dotted line

With the economy in a downturn and the high-tech sector in a tailspin, one mightexpect the last few years to have been rough ones for Global Services. On thecontrary — thanks to increased demand for many of its services, the division’smarket position has never been better. In January 2002 Global Services and Nextelannounced a strategic partnership to develop, market and install mobile e-businesssolutions to U.S. customers, as well as a $1.2 billion customer relationshipmanagement outsourcing project over the next eight years. In December 2001,Global Services announced a 10-year, $1.4 billion deal to manage New York City-based Cendant’s IT operations. That month the division also joined with Veritas, aMountain View, Calif. software concern, to offer its storage management tools —even though IBM already produces its own competing brand, Tivoli. In January2001, San Francisco software firm Autonomy also joined Global Services in anagreement allowing IBM staff to resell and install Autonomy software in clients’computer systems worldwide.

Trimming the fat

Despite its dominant industry position, Global Services laid off 4,100 employeesduring 2001 and 2002 as part of an attempt to curtail the rapid expansion of itsemployment rolls during the 1990s (it added 10,000 employees in the first part of2001 alone). In July 2001, it cut 1,500 jobs in response to what it termed “changesin client demand,” and in April 2002 it cut another 600 workers, mainly customerengineers involved in computer and software repair. Even more cuts came at the endof May 2002, when Global Services cut almost 2,000 jobs, mostly in its largecomputer, software and global financing divisions. (Laid-off employees were given30 days to find another position within the company.)




The proliferation of pink slips — reportedly the largest IBM has undergone since thecompany’s struggles in the early 1990s — is part of an effort to slash costs throughoutall of IBM’s operations. According to The Wall Street Journal, during IBM’s spring2002 analysts’ meeting CEO Palmisano did not dispute Sanford C. Bernstein analystToni Sacconaghi’s prediction that the company as a whole could cut as much as 6percent of its workforce, or 20,000 jobs.

Psst! It’s a secret

In November 2001, responding to emerging worldwide security issues, IBMexpanded its existing privacy services by introducing its Safety and Security practice.This corporate-level office provides businesses and the public sector with improvedsecurity solutions, from enhanced intrusion-detection services and vulnerabilityassessments to classes for corporate officers. Global Services also aligned itself withNew York’s Kroll, Inc., a specialized security concern, to offer corporate security,crisis management and business and asset protection solutions.

GETTING HIRED

IBM, as a whole, aggressively recruits graduates in technical degree programs. Idealmajors include electrical engineering, mechanical engineering, chemical engineering,computer science, computer engineering and information systems. The companyalso seeks candidates from other disciplines such as math, finance, human resources,business and marketing. Interviews, insiders say, are designed to discern acandidate’s “background, attitudes, knowledge, enthusiasm [and] flexibility.”

Big Blue prides itself on offering attractive compensation and benefits, includingeducational reimbursement plans, flexible work schedules, global opportunities,activities, clubs and child care options. Job opportunities can be searched throughIBM’s web site, and resumes can be submitted there as well.

OUR SURVEY SAYS

No one beats Big Blue

Despite its large size, Global Services earns praise from employees for its personalfeel. One IBM consultant reports that the firm’s superiors “go out of their way to get



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me into discussions, mentor and instruct me.” While IBM Global Services doesn’thave a partnership structure, it does have promotion “bands [that] are extremelywide, especially at the high end, so compensation of a senior technical person withno administrative responsibility can easily exceed [that of] most managers.” Thisstructure extends to the office space — “bright and airy” — where one insiderreveals, “I’m in a cubicle, [and] so is the director of my client organization.”

Respected and respectable

The “very friendly and open” culture at IBM Global Services extends to its approachto diversity — one very enthusiastic employee reports, “National or ethnicbackground, religion, sexual orientation and physical incapacity mean nothing atIBM. There’s more diversity in the 60 people in this office than in the U.N. GeneralAssembly.” On top of this, “Diversity training is required annually of 100 percent ofemployees, not just a few managers.” And employees feel at home in the high-performing environment at IBM. One consultant says, “I am working with top-levelexecutives of IBM around the world and am treated as one of them, not an underlingin any way. My opinions are solicited and welcomed, and suggestions are oftenaccepted.” And such kindness extends beyond the walls, since IBM “matchescharitable grants and allows time off for charitable work.”

Not as old-school as you thought

The traditional image of IBM suits has given way to a dress code where “the rangepermitted is extremely wide.” Also, don’t assume that you’ll be in the office fromexactly 9 a.m. to 5 p.m. every day. One source has arranged “to work a four-dayweek, with three-day weekends most weeks.”




For detailed 40- to 50-page insider reports on top consultingfirms like McKinsey, BCG, Bain, Deloitte Consulting, Accenture and more, get Vault Employer Profiles. Go tohttp://consulting.vault.com.


“Diversity training isrequired annually of 100

percent of employees, notjust a few managers.”

— IBM Global Services consultant


L I B R A R Y


1633 Broadway35th FloorNew York, NY 10019-6754Phone: (212) 492-4500Fax: (212) 492-4743www.dc.com

LOCATIONS New York, NY (HQ)Offices in 33 countries

PRACTICE AREASPeopleStrategy & OperationsTechnology

THE STATS

Employer Type: Business unit of Deloitte Touche Tohmatsu (pending separation)CEO: Doug McCracken2002 Employees: 15,0002001 Employees: 14,0002001 Revenues: $3.49 billion2000 Revenues: $3.14 billion

UPPERS

• Strong alumni network• Aggressive in promoting diversity

DOWNERS

• Cuts in pay and training• Bureaucratic structure

KEY COMPETITORS

AccentureBain & CompanyBooz Allen HamiltonBoston Consulting GroupCap Gemini Ernst & YoungIBM Global ServicesKPMG Consulting McKinsey & CompanyPwC Consulting (Monday)Sapient Corporation

EMPLOYMENT CONTACT

www.dc.com/careers

Deloitte ConsultingV A U L T


8


• “Cares about employees”• “Way-old oldsters”• “Good and getting better”• “Unspectacular”

THE SCOOP

On its own

In the wake of the Enron/Andersen scandal, most big accounting firms have takensteps to separate their consulting divisions from their auditing arms. Deloitte ToucheTomahtsu went one step further than most and decided in February 2002 to split offits consulting arm, Deloitte Consulting. After considering a number of options,including an IPO or a merger with another consulting firm, Deloitte Consultingfinally announced in June of that year that it would proceed as an independent,privately owned firm. The move still must pass regulatory muster and receiveapproval from the board of directors of Deloitte Touche Tomahtsu and its memberfirms. In July 2002 the firm announced its post-separation name — “BraxtonConsulting,” the name of a firm Deloitte had acquired in 1984 — and said that itwould officially launch its new brand in the fall.

Deloitte Consulting already ranks among the world’s largest consulting firms, with15,000 employees in more than 90 offices in 33 countries offering everything fromstrategy work to customer relationship management. Its client list includes more thanone-third of the companies in the Fortune Global 500, including heavyweights likeHewlett-Packard, Philip Morris and Cable & Wireless.

But Deloitte’s much-ballyhooed separation plan coincides with a difficult time for thefirm — depressed earnings forced salary adjustments at the end of May 2002 that saw a large number of employees receive 10 to 15 percent pay cuts (though a fewreceived raises).

Rewarding work

The last few years have seen Deloitte Consulting receive a number of awards andindustry plaudits, including an impressive four-year sojourn on Fortune’s 100 BestCompanies to Work For list. In 2001 it received one of 10 Corporate UniversityXchange Excellence/Financial Times Awards for corporate learning organizations,and in 2000 it received the Siebel Excellence Award (given, somewhat self-interestedly, to companies implementing Siebel technology). Deloitte Consulting hasalso earned a spot on Fortune’s 50 Most Coveted Employers list for five straightyears (it ranked No. 12 in 2001) and Working Mother’s 100 Best Companies forWorking Mothers list for eight straight years. To top it all off, CEO Doug McCrackenwas named to CEO Magazine’s list of the 25 most influential consultants in 2001.

Vault Guide to the Top 50 Consulting FirmsDeloitte Consulting


L I B R A R Y

Alliances and ventures

Deloitte Consulting has used its powerful market position to ink a number ofalliances and joint ventures. 2001 was a year bracketed by two major deals to createproduct information processes — one in January with San Jose’s BEA Systems, theother 12 months later with Palo Alto, Calif.’s Hewlett-Packard. Also that year, itjoined with Redwood City, Calif.-based SmartForce to create an infrastructure forDC’s e-learning solutions, and struck a deal with PeopleSoft to expand thecompanies’ CRM software alliance. Finally, the firm launched a joint venture withIndia’s MASTEK to provide offshore IT services to Deloitte Consulting and itsclients outside India.

Family ties

In response to the flight of employees to Internet startups during the dot-com boom,Deloitte Consulting established an alumni network to keep former employees in theconsulting loop and to cultivate contacts in the high-tech industry. The firm invitesnetwork members to company events, enables them to keep in touch with colleagues,and even serves as an informal job network. Today the network has more than 3,000members, with a goal of reaching 5,000 by the end of 2002.

A diverse vision

Deloitte has long enjoyed a reputation for a sharp focus on workplace diversity. Afterconcluding its Women’s Initiative, which ran from 1993 to 2000 and greatlyexpanded the opportunities for women in the company (the number of femalepartners increased from 6.5 percent in 1993 to 14 percent in 2000), the firm launchedVision 2005 to address what it saw as a lack of women in leadership positions. Thenew program’s goal is to achieve a 35 percent annual admission/promotion rate forfemale partners and directors by 2005, and to have a similar number of women atevery level of the firm.

GETTING HIRED

Deloitte Consulting does the majority of its hiring on campus. After a resumesubmission period, the firm invites selected applicants to a first round of interviews,held at the college or business school. It is composed of two 45-minute interviews,the first primarily behavioral, or “fit,” the second a case; the case is said by one



insider to be “more qualitative, but [you] still have to prove an understanding ofmath.” Another, who was hired for a financial services position, says one case asked“how to assess a call center’s operations and what the primary cost and revenuedrivers were. I also had one on increasing revenue generation within the credit cardindustry.” Fit questions, on the other hand, tend to be “basic no-brainer scenarioquestions. ‘Tell me a time when... and give me an example of...’”

The second round, also held on campus, involves an interview with two partners thatis almost entirely focused on a case review. Applicants can expect to hear back fromthe firm within two weeks, and if the response is positive they are invited to an “offerday.” We hear the firm is unwilling to negotiate salary, but will give prospectiveemployees their choice of office.

The key to succeeding at the Deloitte Consulting interview process is to “demonstratean understanding of the kind of work that we do,” says one source. As usual in casesituations, the case interviewers are said to be “looking for an indication of a rationalthought process and a common-sense approach, rather than the right answer.” Arriveat the interview prepared — be sure to “research the company, rehearse answers tofrequently asked questions, and think through the skills you bring to the firm andwhat type of work interests you.”

Most people who have been through the consulting interview process describe it as“fairly long and stressful.” And while the firm supposedly “wants someone who iswell rounded more than [someone] in the top 5 percent of their class,” grades do haveimportance. The prestige of a candidate’s school also matters. Deloitte Consulting “letsyou know shortly [afterward] by giving a phone call and sending a basket of goodies.”

The internship program, for one insider, was “an opportunity to understand in greaterdetail what the firm offered and what it valued.” Interns can “make meaningfulcontributions to the clients and get to know the people in the office.” In addition to“some really long hours,” “Deloitte makes sure that the interns get to know eachother and have fun during the summer.”

OUR SURVEY SAYS

What does the future hold?

Morale at Deloitte Consulting is on the low side, thanks to April 2002’s 10 to 15percent pay cuts (technically termed “salary adjustments,” given that some



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consultants did get raises) and earlier layoffs. “There is an overall consensus that thefirm didn’t adopt ‘creative’ staff reduction schemes before the recent rounds oflayoffs and their solution to cut pay,” says one source. “This has resulted in anoverall distrust of management — especially as we try to forge our ‘new identity.’”The firm is “definitely in cost-cutting mode,” we hear, though much of the concernis “because of the consulting industry, not Deloitte specifically. Everyone has seenwhat has happened in consulting.”

Nice folks to work with

Insiders are somewhat more pleased with the day-to-day operations of the firm. Theculture, we hear, is open and diverse, with an emphasis on consultant-managementinteraction. As one source says, “I do not get the feeling that this is a veryhierarchical place,” and adds that “you can walk up to and have an open talk withevery partner.” Consultants are also happy with the level of diversity, saying thatpartners “try to make it a comfortable place to work.” On the other hand, anothersource comments, “there is also a problem of machismo — the perception is that youhave to be “passionate” to be doing a good job. Type-B (or, more to the point,anything short of hyper-Type-A) personalities are perceived as less effectiveemployees.” At the same time, some DCers complain that hard work rarely resultsin efficient work: “Work hours are long but productivity tends to be low,” reports onesource. All in all, though, we hear the staff is friendly and fun to work with: “Thejunior staff in my group are by and large intelligent and dedicated individuals whomI hope to have as colleagues/references in the future,” concludes one source.

Making an impact

Deloitte Consulting places a strong emphasis on volunteer work — every May itholds a firm-wide Impact Day, “in which all offices all over the world spend theentire day performing some type of community service.” In New York this meansvolunteering at local schools, while in Calgary it means teaching computer andrelated job skills at a community center. Other projects include working at elderlyhomes, building houses and giving resume workshops. Apart from Impact Day, eachoffice organizes its own volunteer efforts — the Sacramento office, for instance,operates a program called Generating Involvement in Volunteerism throughEducation and Service, or GIVES, that coordinates employee volunteerism and inMay 2001 won the city’s People Helping People Business Award. Participation incommunity events also “may be rewarded at evaluation time.”



Where’s the beef?

Compensation, for obvious reasons, is high on respondents’ lists of complaints.There have been no bonuses for the last few years, and we are told that salaries ingeneral are “bad relative to the industry, and they price them knowing that.” Addsanother source, “I would have said I was satisfied [with my compensation], but thelikely blanket reduction in compensation, coupled with the complete dichotomy ofskill and effort expended by consultants, is extremely upsetting.” Possibly to offsetits low salaries, the firm sells itself as a consultancy with a better workingenvironment than most, we hear, offering “more of a work/life balance, with lots ofhappy hours.”

But while the firm is “always striving for balance, if the client wants something donein a month, it has to get done.” This can mean 70-hour weeks, which brings someDeloitte Consulting insiders great sorrow. “For the amount paid, and coming homeat midnight, I was miserable,” carps one veteran of an arduous engagement. Anotherinsider adds that “for a firm which prides itself on work/life balance, I work over 70hours a week, and my salary will decrease next year. Not exactly the conditions fora motivated and empowered consulting staff.”

For those who travel, DC tries to maintain a 5-4-3 schedule — meaning five days ofwork, four on the road, three nights away — but that, again, is something often leftto the client’s whims; one respondent went so far as to say the policy “is a joke.”However, as one insider notes, “Travel requirements vary widely from project toproject. It really is luck of the draw. The best way to dodge traveling too much is tospecialize in an industry and live in the city where that industry predominates, [suchas] financial services in New York, automotive in Detroit and so on.”

Office space: the luck of the draw

Opinion of the offices at Deloitte Consulting differ wildly by location. New Yorkersaren’t thrilled, for one. “The New York office is way too crowded,” snoots oneinsider, even though it “was just remodeled, which is hard to believe.” But a Chicagoconsultant says the offices there are “very nice.” The Boston office is the “basic old-school layout,” while Jersey City is lauded for its “stocked kitchen for breakfast andsnacking.” In San Francisco, “Remodeling of many offices has focused oncollaborative work areas, private communication booths and open, light, high-techfurniture.” But don’t get too attached to your desk. Deloitte Consulting operates a“hoteling” system whereby traveling consultants usually are able to secure space atany office, though “you are not always guaranteed a desk.”



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Rising in the ranks

Insiders report that for analysts (new hires), the journey to a partner-level positionwill “probably take more than 10 years,” although one insider warns that “A newanalyst would likely need to return to get an MBA in order to make partner.” Othersreport that the path “from senior consultant to partner is probably seven to eightyears.” Consultants will spend, on average, “two years as senior consultant, three asmanager, three to four as senior manager.” Consultants with “substantial industryexperience may advance very rapidly. Consultants who sell a lot of work willadvance the fastest.” And promotions are “made once a year in the fall.”

Continuous training

As at most firms, training at Deloitte Consulting has been cut back significantly, butconsultants tell us that it remains top-notch. All new hires are put through aweeklong program in Arizona. Continuing training is “focused on businessassociates going back to get their MBAs,” though there is also a strong emphasis ontechnical skills and on-the-job training.”

Changing faces

Deloitte Consulting’s Women’s Initiative has “immensely improved” the careerprospects for women and “has led a firm-wide realization that the retention ofqualified women — and men — is important to the success of the firm.” One sourceremarks that “Deloitte is recognized as a leader in advancement, retention andpromotion of women,” while another insider reports that the firm has “a number ofaffinity groups targeted at ethnic minority groups, as well as gays and lesbians.”Nevertheless, ethnic diversity could stand a bit more work, according to oneconsultant, who notes that DC has “few African-American or Hispanic partners orpractitioners.” New initiatives are in the works, we hear. “We are working on[diversity], says one consultant. “We enjoyed great success in attracting, retainingand promoting women. We are now focusing that same attention on people fromother cultures and ethnic backgrounds.”





L I B R A R Y

For a detailed 40- to 50-page insider report on DeloitteConsulting, and reports on other firms like McKinsey, BCG, Bain,Accenture and more, get Vault Employer Profiles. Go tohttp://consulting.vault.com.


1345 Avenue of the AmericasNew York, NY 10105Phone: (917) 452-4400Fax: (917) 527-9915 www.accenture.com

LOCATIONS New York, NY (HQ)More than 110 offices worldwide

PRACTICE AREAS Global Service Lines:Customer Relationship Management •Finance & Performance Management •Human Performance • SolutionsEngineering • Solutions Operations(Outsourcing) • Strategy & BusinessArchitecture • Supply ChainManagement • Technology Research& Innovation

Operating Groups:Communications & High Tech •Electronics & High Tech • FinancialServices (Banking; Health Services;Insurance) • Government • Media &Entertainment • Products •Resources (Chemicals; Energy;Forest Products; Metals & Mining;Utilities)

THE STATS

Employer Type: Public CompanyStock Symbol: ACNStock Exchange: NYSEChairman & CEO: Joe Forehand 2001 Employees: 75,0002000 Employees: 71,3002001 Revenues: $11.4 billion2000 Revenues: $10.3 billion

UPPERS

• Smart, results-oriented consultants • Very competitive salaries

DOWNERS

• Long, demanding projects• Interaction with partners can be

limited

KEY COMPETITORS

Computer Sciences CorporationDeloitte ConsultingElectronic Data SystemsIBM Global ServicesKPMG ConsultingMcKinsey & CompanyPwC Consulting (Monday)

EMPLOYMENT CONTACT

http://careers3.accenture.com/

AccentureV A U L T


9


“The Big Dawg”“Arrogant”“Young buck”“Generalists in a specialist world”

THE SCOOP

Almighty Accenture

In December 1997, Accenture — then Andersen Consulting — petitioned to breakaway from Andersen (then Arthur Andersen), its sibling under the AndersenWorldwide umbrella. After a lengthy arbitration process, in August 2000 theInternational Court of Arbitration in Paris finally granted independence to theconsulting firm that would (as of January 1st, 2001) come to be known as Accenture.Today, Accenture is among the world’s leading providers of management consultingand technology services.

With more than 75,000 people in 47 countries, Accenture draws from a vast array ofindustrial and technical expertise. Consultants in its major operating groups(Communications & High Tech, Financial Services, Government, Products andResources) and its eight service lines (Customer Relationship Management, Finance& Performance Management, Human Performance, Strategy & BusinessArchitecture, Supply Chain Management, Technology Research & Innovation,Solutions Engineering and Solutions Operations) work together to design and deliverstrategies and solutions for 89 of the Fortune Global 100 and more than half of theFortune Global 500 — not to mention several hundred startups and spin-offs. Thefirm’s huge staff and wide range of experience enables it to bring both focus andmassive manpower to any consulting task.

Long reach

Accenture, which works with more than 2,500 client organizations worldwide,earned revenues topping the $11 billion mark in fiscal 2001. The firm has grandplans; through alliances, affiliated companies and other capabilities (known as its“network of businesses” approach), it seeks to “deliver innovations” to clients acrossa range of industries.

When you’re as big as Accenture, the United States alone won’t provide all therevenue and opportunities you need to thrive. Indeed, Accenture is committed tomaintaining a global presence — nearly half of all its revenues come from outside ofits operations in the Americas — and to furthering its status as a technology leader.The firm garnered more than $3.2 billion in 2001 revenue from its Communications& High Tech operating group, a gain of 15 percent over the previous year. The unit

Vault Guide to the Top 50 Consulting FirmsAccenture


L I B R A R Y

accounted for 28 percent of Accenture’s total revenue for the year, the most of any ofthe firm’s divisions.

Going public

In a widely anticipated move in July 2001 — following what most analysts believewas a successful IPO by competitor KPMG Consulting — Accenture raised about$1.7 billion through a public offering. (Despite that huge figure, the stock offered forpublic sale amounted to no more than 12 percent of the undiluted company.) On theinitial day, the firm saw its stock rise 5 percent — not impressive compared to themoonshots of 1999, but extremely respectable for the IPO market of 2001. Accenturesold 115 million shares, leaving partners with control of over 80 percent of thecompany. Goldman Sachs and Morgan Stanley served as the lead underwriters.Through another offering completed in May 2002, Accenture sold approximately $93million worth of its shares.

Taking leave

Like most of its competitors, Accenture underwent layoffs in 2001. In June, 600support personnel were cut, followed by an additional 1,500 staffers in August (1,000of whom were consultants). All told, about 2 percent of the workforce received pinkslips. The firm, however, primarily has attempted to reduce its payroll costs throughits “FlexLeave” program. In this program, consultants may take voluntarysabbaticals of six to 12 months at 20 percent of their current pay and continuedbenefits, and their job at Accenture is guaranteed when their time off is finished.About 2,400 consultants had taken FlexLeave as of December 2001; the program hasalso been extended to Europe and Asia.

The slow economy continued to hound Accenture in the first quarter of fiscal 2002,with net income dipping by 45 percent compared to a year earlier. The firm also tooka $40 million charge relating to lost business as a result of the September 11 terroristattacks, but managed to turn an $81.7 million profit in Q1 FY 2002 due in large partto a 32 percent increase in outsourcing revenue. It followed up those results with a$10.6 million profit in Q2 FY 2002. In June Accenture announced layoffs of about1,000 employees (mainly from the management ranks in the United States, UnitedKingdom and Australia), but the firm still expects to increase its global staff byapproximately 8,000 by the end of fiscal 2003.



Forehand comes to the forefront

In November 1999, Joe W. Forehand was named successor to George Shaheen (whobolted for the ill-fated Internet grocery service Webvan) as CEO and managingpartner. Less than two years into his tenure, Forehand was named the industry’s No.1 most influential consultant by Consulting magazine. (The managing partner forAccenture’s retail operating group, Angela Selden, ranked No. 15 on the June 2001list.) Forehand also made InformationWeek’s list of the 15 most influential people inthe IT industry. At the same time that its fearless leader was winning recognition, thefirm as a whole has earned its share of accolades. In 2001, Red Herring namedAccenture to its list of the 100 companies Most Likely to Change the World. Thefirm also ranked third that year among all employers in terms of diversity inUniversum’s survey of U.S. students. And in 2002, the firm took fourth in theUniversum survey of the most ideal employers according to European grad students.

Training days

Accenture boasts that it spent $717 million in fiscal 2001 to train and develop itsworkforce. Newly hired analysts typically spend two to three weeks at Accenture’smain training facility in St. Charles, Ill., developing team-building and managementskills. The system enables Accenture to offer standardized solutions and encouragesconsultants from disparate offices and backgrounds to work together better(important for a firm with more than 75,000 employees). After their time at St.Charles, Accenture professionals can access the company’s more than 4,000classroom, computer-based and Web-enabled training programs via a Web-basedlearning portal.

Creating affiliates

Accenture has been busy creating new affiliates to better position itself in the e-business marketplace. In March 2000, Accenture announced that it was teaming upwith Microsoft to form Avanade, a jointly owned firm that focuses on large-scaletechnology integration surrounding Microsoft’s enterprise platform. Avanadeinitially was valued at more than $1 billion, and now has more than 300 customersand over 1,200 employees in 17 cities in 11 countries.

Elsewhere, Accenture entered the e-learning market in March 2001 with theformation of Indeliq, a company that provides simulation-based eLearning solutionsto help companies improve workforce performance. And in October of that year the



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firm joined Merck-Medco and UnitedHealth Group to launch Xceleron Health LLC,a venture designed to provide business services to the health care industry.

Out of the VC game

Alas and alack — it seems that Accenture’s venture capital ambitions will not cometo pass. The firm originally had planned to sink as much as $500 million in emergingInternet businesses through its Accenture Technology Ventures unit, but reversedcourse when many of its investments yielded losses. (According to the company,“The VC exit window lengthened and volatility began to impact corporateearnings.”) In March 2002, Accenture announced that it would sell all of its minoritystakes in such companies. Accenture’s current plan calls for the firm to consolidateits holdings into one subsidiary, which would then be sold. Accenture wouldmaintain a small piece of the subsidiary should such a sale occur.

Thinking ‘bout the government

Accenture’s government operating group earned just over $1 billion globally in 2001and continues to pick up new engagements. In May, Web surfers got their first lookat Accenture’s redesign of NYC.gov, a portal offering government services for NewYork City residents. The site, which served as an important communications channelafter the September 11th terrorist attacks, has been recognized as being among the“Best of the Web” by Government Technology, and received global recognition fromthe World Information Technology and Services Alliance (WITSA) for exceptionaluse of technology. August 2001 saw the firm sign a five-year deal worth a potential$33.6 million to redesign the Internal Revenue Service’s web site. And in Decemberof that year, Accenture inked two deals with the U.S. Department of Educationreportedly valued at up to a combined $234 million in a share-in-savings deal.

The move offshore

While it claims to have to no corporate headquarters, in February 2001 Accenturebecame the first professional services firm to move its official residence to Bermuda.The scenic island has no income or capital gains tax, and has a number of otherfavorable business rules and regulations (or, more to the point, a relative lack ofbusiness rules and regulations). The firm points out, though, that it has never been aU.S.-based or U.S.-operated organization and has never operated under a U.S. parentorganization. With more than half of its 2,500 partners non-U.S. citizens, it says thatas a cultural matter it chose the neutral location of Bermuda — after considering a



variety of options — for its post-IPO parent company. Accenture also owns anoperating company in Luxembourg, another tax haven.

GETTING HIRED

Accenture recruits via on-campus events at 125 U.S. universities and colleges, aswell as many international campuses. (It also holds live webcasts, chat sessions andother online informational offerings for students at schools where it does not recruiton campus.) Prospective campus hires are generally “required to submit theirresumes [along with a personal data form] through their career services offices” andresume drop systems. At schools where there is no formal resume drop system,would-be applicants should contact a recruiter from the office nearest them.Candidates may have up to two interviews on campus. The first is a screeninginterview, while the second is typically with Accenture employees (usually partnersor experienced managers, as well as a peer). These interviews can vary, according toa contact in the recruiting office: “In some cases these interviews are behavioral, andin others they’re case-based.” Also, “Questions definitely depend on service line.Strategy gives case interviews while [other service lines] give behavioralinterviews.” One insider reports that “At the second round I was asked a lot of ‘Tellme about a time when’ questions. One was ‘Tell me about a time when you had towork with someone you didn’t know.’”

After making it through these screening rounds, there is a day at the nearest office.There are minor variations in the interview process at different offices and campuses;some candidates have had a second round with three managers or partners at anAccenture office. Employees say that “selectivity depends heavily on which serviceline you are aligned with. Strategy is extremely difficult to enter even with excellentcredentials — [other areas] a little less so.” Insiders also say that “We tend to hiremost of the people who make it to the office.” While candidates do have the optionto fly out to visit their office of interest, “It isn’t necessary to interview where youwant to work.” We hear that “Offers are usually extended to successful candidatesshortly after the office visit.”

Contacts say Accenture makes its big push “at sell weekend, which is verystructured.” Reports one insider: “The first day is in the office and features aseries of meetings with the various industry groups. They provide much morespecific information than you get in the recruitment brochures. There is also the



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opportunity to speak one-on-one with peers, and you go out to wining and diningthings and to a show.”

The firm has identified several qualities that it believes make a successful Accentureconsultant. They include a target GPA (which depends on the type of degree), criticalthinking, ability to be a self-starter, ability to juggle multiple activities, problem-solving skills, being a team player, and a willingness to travel. One recruiter tells usthat “the type of person we look for performed well academically and is well-rounded, a lifelong learner, is committed to developing a career, [and is] interested inand understands what we do.” The perfect candidate also has “strong written and oralcommunication skills.” This contact also informs us that “professionals who succeedat [Accenture] embrace the clients’ needs” and “are team- and results-oriented.”

Insiders say that even the strongest candidates can improve their chances of beinghired by “reading through the [Accenture careers] web site” and “educating yourselfon what [Accenture] does, how the company is structured, and what the variousorganizations and their respective career paths are.” Sources also suggest thatcandidates “be prepared to articulate which is the best fit for you.” Finally, “It’s alsotremendously helpful to have someone in the firm to talk to, so you can get a bettersense of what the many choices are.” “There’s only so much you can glean frompublic sources of information,” insiders conclude.

OUR SURVEY SAYS

Make a mark in your market

The amount an Accenture consultant travels has to do with “what market unit you’rein — it’s very regionalized.” Another source concurs: “Those in financial servicesrarely have to travel outside of the New York metro area; those in communicationsor other industry groups travel more.” Ultimately, “Unless you live in a market thathas your industry group, you’re traveling a lot,” yet another source emphasizes.However, “The staffing coordinators try to take your preferences into account. Andas you gain more marketable skills, there are more choices.” But if “you’re right outof college, they tell you where to go,” insiders say.

Travel notwithstanding, most respondents have good things to say about the work/lifebalance at Accenture. Compensation is on par with the rest of the industry, butpotential partners beware: As part of a major reduction in corporate spending,



partner salaries are slated to be cut by 7 to 8 percent and performance option grantswill be eliminated.

Still, sources lower on the food chain comment that the compensation “is more thanfair, especially when I think of the little extras that make work/life balance better:flexible vacation time and overtime for those under manager level, etc.” And“individual projects sometimes have their own perks, [such as] renting out clubs forprivate parties, PDAs for all on the project and vacations.” For those interested incommunity work, Accenture may be the perfect place — we hear that volunteer workis a “very important aspect of life at Accenture,” with organized projects includingHabitat for Humanity and AIDS walks. It’s so important, in fact, that consultants’performance evaluations “are based not just on work but other activities in support ofthe company and the community.”

The slant of the ladder

Employees at Accenture have varying opinions regarding how partners treat otheremployees. One insider complains that partners “usually haven’t time to talk toanybody that isn’t a client.” “Until you are at their level, you don’t get the samerespect,” another source explains. “Most of the time you are fairly invisible, but thisis good and bad,” adds a third respondent. “While very few are ogres, [partners] arenot easily accessible. Don’t expect to make mentors easily.” A few insiders disagree,however. One consultant explains that “executives seem genuinely interested in myideas and sometimes fascinated by my different experiences.”

One area where we hear executives are very responsive is training. While theemphasis has shifted from up-front, new-hire training to continued learning, theopportunities to gain consulting skills or more knowledge of a particular industry aremany. “You can even leave in the middle of a project to get training if it will helpyou in your role better,” notes one source.

Flexing it

One advantage respondents praise is Accenture’s voluntary FlexLeave program,which allows employees to take time off from their jobs and still retain 20 percent oftheir pay, as well as their benefits, laptops and office access. The program isespecially popular because it has enabled the firm to keep layoffs and pay cuts down.“FlexLeave is a great option compared to being laid off,” notes one source, though itstill doesn’t help some sleep at night. “A taste of the outside world plus a feeling ofjob insecurity is causing many to jump ship,” one consultant reports.



L I B R A R Y

Coddled in a cube

Some consultants complain that Accenture offices are “too small for so manypeople,” with “small cubes” and “no privacy.” Another source says that “the officesare iffy,” with a mix of nice amenities and often cramped working quarters.“Sometimes you will have to walk around looking for a space,” reports one insider.On the other hand, another employee reports that the offices are “wonderful. Myoffice building defines the city’s skyline. Executives have offices with immensewindows and a great view of the city. Even the cubicles aren’t bad.” And whileAccenturites work hard, the office environments are said to be “very friendly andfairly youth-oriented with a strong helping of life/work balance perks.”

Taking diversity to task

Insiders report that Accenture handles diversity issues rather well. “There is adiversity task force and activities for just about every minority group. These are opento everyone in the firm, not just to members of the minority group,” says oneemployee. Another consultant adds, “We were taken to lunch by our office’sdiversity task force during our first week to learn about diversity at Accenture.” Stillanother respondent notes that “There are lots of programs, internal groups(communities), diversity initiatives and efforts to promote these issues.”Nevertheless, “I am not sure if it results in actual progress up the ranks for minorities,who are still small in number.”



For a detailed 40- to 50-page insider report on Accenture, and reports on other firms like McKinsey, BCG, Bain, DeloitteConsulting and more, get Vault Employer Profiles. Go tohttp://consulting.vault.com.


“Those in financial servicesrarely have to travel

outside of the New Yorkmetro area; those incommunications or

other industry groups travel more.”

— Accenture source


L I B R A R Y


56 Top Gallant RoadStamford, CT 06904Phone: (203) 964-0096Fax: (203) 316-6300www.gartner.com

LOCATIONS Stamford, CT (HQ)90 locations worldwide

PRACTICE AREASCommunityConsultingMeasurementResearch

THE STATS

Employer Type: Public CompanyStock Symbol: IT/ITBStock Exchange: NYSEChairman & CEO: Michael D. Fleisher2001 Employees: 4,6002000 Employees: 4,3002001 Revenues: $952.0 million2000 Revenues: $858.7 million

UPPERS

• Flexible hours• Talented and smart staff

DOWNERS

• Recent layoffs• Not enough internal communication

KEY COMPETITORS

AMR ResearchForrester ResearchIDC

EMPLOYMENT CONTACT

Human ResourcesFax: (203) [email protected]

GartnerV A U L T


10


• “Good insight”• “Should stick to being analysts”• “Well-respected in their niche”• “So 1990s”

THE SCOOP

How does your Gartner grow?

Gartner, a globally recognized firm, combines research, consulting, content andevents — all with a technological spin. Under Gideon Gartner, who founded thecompany in 1979, Gartner Group (as it was then known) first went public in 1986 andwas traded for two years until it was pulled off the market. A 1993 IPO put thecompany on the Nasdaq before it was transferred to the New York Stock Exchangein September 1998. Up through 2001, Gartner entered into a series of acquisitions toplump up its size and offerings.

Segmentation

Gartner’s business is split between four sectors: Consulting, which focuses onstrategy issues (though not implementation) in a variety of industries; Measurement,the performance benchmarking operation; Research & Advisory Services, whichemploys a staff of 650 experienced analysts who conduct research on more than 200technology-related subjects; and Community, which brings executives together tocompare experiences. A large part of Community is Events, which runs one- to five-day conferences for business and IT professionals. The flagship event is the GartnerSymposium/ITxpo, the largest conference for the IT industry. San Diego, Orlando,Florence, Tokyo and Cannes will all host versions of the event at different points onthe 2002 calendar.

The Gartner stable also houses the IT market research firm Dataquest, as well asacquisitions, like telecommunications consultancy Rendall and Associates, publicsector consultancy The Warner Group, European event company Integrator ForumEurope, and as of October 2000, Solista Global, a technology consulting firm. InAugust 2001 Gartner’s Japanese branch signed a joint IT consulting agreement withtechnology strategy firm Yahagi Consultants Inc. Two months later, Gartner acquiredIndia’s Aims Management Consultants (AMC) for an undisclosed sum. The firmused that acquisition to form Gartner India Research and Advisory Services(GIRAS), a 17-person subsidiary that serves a stable of 85 clients in the country.Gartner also launched a new research arm in June 2001, dubbed GartnerG2, which asof July 2002 has more than 100 clients.

Vault Guide to the Top 50 Consulting FirmsGartner


L I B R A R Y

Silver bells and consulting sales

Overall in 2001, Gartner earned $952 million in revenue, up 11 percent from the$854.6 million it tallied the previous year. However, the firm posted a net loss of$66.2 million for the year, due in part to its unprofitable April 2001 sale ofTechRepublic Inc. to CNET Networks. In fiscal 2002, Gartner is seeking to earn inthe $950 million to $975 million range, with $290 million to $295 million comingfrom the consulting sector. The firm tallied $53.5 million in consulting revenue inQ1 2002 — an 8 percent increase from the same period a year earlier — but sawoverall revenue dip by 3 percent from Q1 2001. On the heels of those results, inJanuary 2002 Garner laid off 60 employees across the company.

Gartner has carved out a reputation as a leader in technology research and consulting,succeeding in a year that was notoriously tough for consulting firms. In January 2002Computerworld named Gartner CIO Bart Stanco to its list of Premier 100 IT Leaders.The firm’s efforts to create a comfortable workplace for its employees also have beenrecognized; the previous year, Computerworld ranked Gartner No. 52 among the 100Best Places to Work in IT.

Fleisher’s the man

Gartner’s top management underwent some changes in 2001. In May, firm presidentWilliam McDermott departed to become executive vice president of worldwide salesoperations for Siebel Systems, Inc. CEO Michael D. Fleisher took over the job, andafter the retirement of Manuel A. Fernandez five months later added the title ofchairman of the board to his portfolio. Just 36 years old at the time he was namedpresident, Fleisher has been with Gartner since 1993, and has served as CEO since1999. With the succession, Fernandez became chairman emeritus; he remains anadviser to the firm.

Furthering the team spirit

Gartner, which favors internal promotion, also provides thorough introductorytraining. Ongoing professional development is available through the firm’s internalGartner University for consultants employed longer than six months.

Them’s fightin’ words

Gartner provides consulting and research services to more than 11,000 clientorganizations around the world, and boasts a client retention rate of 74 percent. But



not everyone is so keen on what Gartner’s analysts have to say. In 2001, the firmbecame embroiled in a war of words with Oracle, the California-based softwaregiant. On its web site, Oracle alleged that there was “documented bias” in Gartner’sAugust 2001 report on the company. According to The Asian Wall Street Journal, thereport was critical of Oracle on some points, but rated the software firm “positivelyoverall.” An Oracle spokeperson, however, asserted that an in-house review ofGartner’s reports on the software company revealed that over a six-month period, 23percent were critical, compared to just 8 percent for reports on IBM. Gartner —which produced reports on many other companies containing negative analysisduring that period — denied the charges, saying that Oracle was confusing “bias”with “independence.” The quasi-feud apparently has been quelled for the time being,however; since the August report, Gartner has given Oracle products a number offavorable reviews (again, according to the firm, purely as a result of objectiveresearch, not in an effort to appease irate Oracle executives).

GETTING HIRED

The careers section of Gartner’s web site provides job listings for positions in all ofthe company’s 90 offices worldwide. There are also instructions for applying eitherby e-mail, fax or postal service. The Gartner HR department will acknowledgereceipt of all resumes within 24 hours. Qualified applicants’ information is thenreviewed and remains on file for up to six months or until an appropriate positionbecomes available.

The interview process at Gartner is comprised of “several interviews depending ondepartment,” though most respondents report a series of three interviews “withmanagers and future peers” in which they ask “questions about your experience”and “how you can contribute to the company.” The firm occasionally uses standardcase questions, but most of the emphasis in interviews is reportedly on fit andresume strength.

OUR SURVEY SAYS

The smart kids

Getting hired by Gartner means you’ll be “working with some of the smartest peoplein the industry,” one insider tells us. The firm has a diverse, young culture, we hear,



L I B R A R Y

and “most staff have only been with the company for a year or two.” This can leadto some disjunction between management and the rank and file, though. As onerespondent notes, there is sometimes the problem of “being physically remote fromyour manager and peers.”

The comforts of Gartner

While Gartner may be cutting back from its explosive growth of the last few years,insiders still praise it as a comfortable, friendly place to work. The firm offers “veryflexible work hours,” and employees “can work at home” if need be. There is onlythe occasional weekend at the office, and outside of “at least one internal off-sitemeeting a year,” there is very little travel involved. And while one source complainsof a “lack of a consistent pay scale,” we hear that compensation at Gartner is “ontarget.” In addition to the full range of standard benefits, the firm also has a charitymatch program. And while we hear the training could be better, it “has improved inthe past few years.”





“Most staff have only beenwith the company for a

year or two.”

— Gartner insider


L I B R A R Y


5400 Legacy Drive Mailstop B1-1A-01Plano, TX 75024 Phone: (972) 604-4600Fax: (972) 604-9596www.atkearney.com

LOCATIONS Plano, TX (HQ)60 offices worldwide

PRACTICE AREASOperations ConsultingStrategy & Organization ConsultingTechnology Consulting

THE STATS

Employer Type: Subsidiary of EDS CEO: Dietmar Ostermann2001 Employees: 4,6002000 Employees: 5,0002001 Revenues: $1.2 billion 2000 Revenues: $1.39 billion

UPPERS

• No up-or-out pressure• Firm camaraderie• “Cushy” travel while on

assignment

DOWNERS

• Pressure to bill• Limited career development support• Recent layoffs

KEY COMPETITORS

AccentureBain & CompanyBooz Allen HamiltonBoston Consulting GroupMcKinsey & Company

EMPLOYMENT CONTACT

North American Campus Recruiting:[email protected]: (312) 223-6030

North American Senior Recruiting:[email protected]: (312) 648-0111

A.T. KearneyV A U L T


11


“Hard-driving”“Solid but not special”“Smart people”“Best days are over”

THE SCOOP

A successful start

A.T. Kearney is one of the oldest management consulting firms in the world.Founded in Chicago in 1926, it has operated exclusively under its current name since1946. (The firm was bought by Electronic Data Systems in 1995 but retains its nameand identity.) Solid results with early engagements, including an extensive study ofU.S. Steel and a longtime relationship with the Kroger supermarket chain, helped putA.T. Kearney on the map. The firm’s growth accelerated when Fred Steingraberbecame CEO in 1983 (He retired in 2000.) Today, there are close to 5,000 A.T.Kearney employees worldwide, and the firm has operations in 60 cities in 37 countries.

A.T. Kearney generally targets Fortune 200 companies. Client companies tend toshow a remarkable degree of loyalty toward the firm — more than 90 percent of A.T.Kearney’s engagements are with past clients. While the firm claims expertise inmany industries, it is particularly strong in automotive, communications, high tech,consumer industries and retail. And with its massive international expansion efforts,A.T. Kearney earned more than half of its $1.2 billion in 2001 revenue fromengagements outside of the United States.

The A.T. Kearney-EDS relationship

Is A.T. Kearney a nearly independent consulting firm or merely a “service line” ofparent company EDS? The answer: somewhere between the two. EDS is trying tobring A.T. Kearney closer to the fold, while, according to A.T. Kearney CEO DietmarOstermann, maintaining the firm’s distinct specialties. In February 2001, A.T.Kearney headquarters were relocated to EDS’s Plano corporate campus. (A.T.Kearney hasn’t abandoned Chicago though — the same number of consultants andother personnel remained in the city.) On the other hand, A.T. Kearney continues toconcentrate on shorter, more strategic deals, while IT powerhouse EDS’s forte islong-term, technology outsourcing engagements. EDS believes that the $2.5 billionin new contracts it signed in 2000 were due in large part to Kearney, according toBusinessWeek.

All around the world

A.T. Kearney is committed to building a strong international presence. The firm’snewest permanent office is in Bangkok, servicing Thai clients in the banking, high

Vault Guide to the Top 50 Consulting FirmsA.T. Kearney


L I B R A R Y

tech, manufacturing and other industries; the office opened in June 2001. A.T.Kearney is also the only major management consulting firm with a presence in Chinathat has offices in both Beijing and Shanghai.

Another major target of Kearney’s expansion plans is India. Currently, the firm hasa stable of consultants in New Delhi and projects that revenue from the country willgrow by 50 percent over the next several years. Most new business in India willfocus on privatizations and downsizings. The firm also plans to set up a data andservice center there. In April 2001, Kearney extended its India-focused sourcing andprocurement alliance with supply chain management solutions provider i2Technologies. And in June of that year, Indian auto company Tata Engineering hiredKearney consultants to work on a new marketing strategy. Going forward, the firmexpects that its main competition in India will be McKinsey, which has been in thecountry since 1992.

Industry slowdown

While international market expansion should help A. T. Kearney in the long run, theshort-term late ‘90s Asian economic flu seriously affected the consulting firm’srevenues. Revenue growth slowed in 1999, causing the firm to lay off nearly 200consultants and postpone start dates for a number of new MBA hires. Historyrepeated itself when an economic slowdown hit the United States a few years later.In July 2001, EDS announced that it was laying off 400 of A.T. Kearney’s 5,000employees. Start dates for new hires were pushed back as well — some for a year ormore, some indefinitely — at several points during 2001 and 2002.

New business ventures and auctions galore

In December 1999, EDS announced the creation of EDS-A.T. Kearney Ventures, anew e-business corporate venture capital fund. The $1.5 billion fund is half financedby EDS, with the other half coming from clients and private equity funds. One of thelargest funds of its kind, it will focus on B2B and other types of Internet companiesover five years, and will allow EDS/A.T. Kearney to take equity in clients for the firsttime. Also in December 1999, A.T. Kearney launched a worldwide business unit,eBreviate, which focuses on business-to-business Internet auctions. After operatingfor two years as a wholly owned EDS subsidiary, eBreviate was rolled into a new unitknown as A.T. Kearney Procurement Solutions in December 2001.



Working for The Man, here and abroad

In October 2001, the Beijing Municipal Science and Technology Commission hiredA.T. Kearney to recommend strategies to transform the city’s software industry.Three months later, the firm began advising the government of India on ways toremove regulatory barriers to foreign investments in the country. Also in January2002, A.T. Kearney vice president Ben T. Smith IV signed on for a one-year projectwith the U.S. Department of Transportation, working on the planning andimplementation of the department’s new Transportation Security Administration.

Rewarding achievements

A.T. Kearney launched the Global Excellence in Operations (GEO) Awards in June1999. These awards, the first of their scale or scope, recognize the most effective andinnovative business operations at national, regional and global levels. The result isan extensive database containing some of the world’s most advantageous businesspractices. The 2001 winner was Italy’s Brembo S.p.A., a leading manufacturer ofhigh performance braking systems. Internal A.T. Kearney awards for excellenceinclude Great Client Work Awards, the Intellectual Capital Recognition Program andthe Distinguished People Awards, a program celebrating outstanding contributions toA.T. Kearney’s culture.

New and newsworthy

Fred Steingraber (now chairman emeritus) and A.T. Kearney jointly endowed thefirst chair in business strategy at the University of Chicago Graduate School ofBusiness. The Fred G. Steingraber A.T. Kearney Professorship currently honors TobyE. Stuart, a leading scholar in technology strategy, corporate strategy and high-tech entrepreneurship.

Road sage

A.T. Kearney pledges that no consultant will work on an engagement for more thannine months. But while the firm’s projects are famously short, its hours arenotoriously long. To combat the often brutal nature of employees’ travel schedules,the firm has adopted “434U,” a policy theoretically ensuring that consultants willspend no more than four days and three nights a week at a client site. Kearney alsooffers part-time and flex-time programs.



L I B R A R Y

GETTING HIRED

Don’t expect to see an A.T. Kearney recruiter roaming around your school anytimesoon. After hiring 248 new employees in 2001 (which turned out to be 248 more thanit needed), the firm canceled all U.S. campus recruiting at both the undergraduate andgraduate levels for the class of 2002. Hiring of experienced candidates has beenrestricted to the vice president and senior principal levels.

The firm does expect to return to campuses in 2003, so it is still important to be awareof its past hiring practices. When applying to the firm, candidates choose tointerview in one of three areas: General Practice, Strategic Information TechnologyPractice, or the Financial Institutions Group. The process consists of two rounds ofinterviews, usually completed within a three-week period. The first round includestwo back-to-back 45-minute interviews. While this round is case-intensive,applicants have the opportunity to ask questions about the firm’s culture andpreferred industries. First-round interviews are typically held on campus, at the mostlocal firm branch or at a nearby hotel. Generally, the firm informs applicants if theyhave advanced to the next round the day after their first round of interviews.

In the second round, MBA applicants go through another five interviews with seniorKearney staffers. Some of these again are case-based, and “each case is based on thepractice [the interviewer] was in.” These interviews “are not focused on strategy. It’smore like supply chain stuff.” Although candidates still may not have a sense ofwhether an offer is forthcoming, by the third round they are in select company. “Thelargest percentage of cuts were made before the final round,” says a formerinterviewee. “If you make it [to that round] you have a good shot.”

Insiders report that A.T. Kearney interviewers are “kind” and “supportive.” Althoughthe interview questions — especially the case studies — are themselves often tough,the interviewers don’t try to bully or intimidate. One insider reports, “The Kearneyconsultants who interviewed me had a minimal amount of attitude. They were bright,friendly and very likeable.” Other insiders report that their overwhelmingly positiveimpressions of interviewers led them to pick Kearney over other firms. One offereegoes so far as to say, “I was willing to take a lower salary than I was offered at[another firm] because the people were great. Very smart and very fun.”



OUR SURVEY SAYS

Quality-conscious Kearney

As part of its “zealous” commitment to quality, A.T. Kearney keeps a close eye onemployee performance. The firm conducts periodic evaluations to assess the qualityof each employee’s work. These are “pretty thorough” and tied to any “bonus or payraise.” A.T. Kearney was ranked 16th overall among Fortune’s 50 Companies MBAsLove in 2001. And one source tells us that A.T. Kearney gives “a lot of attention tomy personal development. The review process is very thorough, and you have theopportunity to improve yourself.”

The issue of diversity

A.T. Kearney is said to employ “a mix of people including new MBAs, undergradsand industry experts — especially from the high-tech industry.” Insiders consistentlyreport that there is “no pressure to conform to any type of image.” Indeed, unlike thedrone-in-a-suit stereotypes that permeate other firms, “you will rarely hear about thetypical A.T. Kearney person.” However, “most [consultants at] higher levels areolder white males” and “more conservative.”

Despite one insider’s assertion that there is “no A.T. Kearney prototype,” noteverybody agrees that the firm’s diversity is up to par. “A.T. Kearney’s better thanmost, which is not to say that it’s good,” notes one consultant. “About a third of thepeople I entered with were women. But I didn’t see that many non-Caucasians,especially at the top levels. That’s probably a function of the fact that this emphasison diversity is a fairly new thing. Diversity hiring has only been in effect for four tofive years, and it will probably take another four to five years before we see adifference at the top.” Nonetheless, one source recently described the minoritypresence as “really strong.”

Flexible promotions — and even casual dress

Many consulting firms have a rigid promotion process. Not so at A.T. Kearney. Oneconsultant praises the lack of an up-or-out policy. “That kind of policy creates a lotof insecurity. It’s survival of the fittest, and I don’t know how much teamwork aculture like that would encourage. A.T. Kearney doesn’t have that policy, and itmakes it a nicer place to work.” And just to make sure people are relaxed, the firmallows business casual dress five days a week.



L I B R A R Y


11 Madison AvenueNew York, NY 10010Phone: (646) 471-4000Fax: (646) 394-1301www.pwcconsulting.com

LOCATIONS New York, NY (HQ)Offices in 53 countries andterritories

PRACTICE AREASApplication Management and

Business Process ManagementCustomer Relationship Management

Solutions Financial Management SolutionsHuman Capital Solutions Information Technology Solutions Strategic Change SolutionsSupply Chain & Operations

Solutions

THE STATS

Employer Type: A business ofPricewaterhouseCoopers (pendingproposed IBM acquisition)President & CEO: Greg D. Brenneman 2002 Employees: 33,0002001 Employees: 35,0002001 Revenues: $7.48 billion 2000 Revenues: $7.13 billion

UPPERS

• Family-friendly firm• Great training for new hires

DOWNERS

• Ever-changing culture• Recent pay cuts

KEY COMPETITORS

AccentureBooz Allen HamiltonCap Gemini Ernst & Young Deloitte ConsultingIBM Global ServicesKPMG ConsultingMcKinsey & Company

EMPLOYMENT CONTACT

www.pwcconsulting.com/careers

PwC ConsultingV A U L T


12


• “Capable”• “Another accountant doing

consulting”• “A formidable competitor”• “Big, big, big”

THE SCOOP

Spin-off city

PwC Consulting has undergone many changes recently, from its name to its futurestatus as a public company. Formerly known as PricewaterhouseCoopersManagement Consulting Services and soon to be known as Monday, PwC Consultinghas 33,000 employees in 53 countries and territories, not to mention more than $7billion in annual revenues. The firm was slated to be spun off from parent companyPricewaterhouseCoopers in 2002, to enable it to compete as an independent entitywith industry stalwarts such as Accenture, Deloitte Consulting, Cap Gemini Ernst &Young, and KPMG Consulting, as well as top strategy firms such as McKinsey, Bain& Company and The Boston Consulting Group. Yet another dramatic change offortune came in July 2002, when PwC Consulting agreed to be acquired by IBM for$3.5 billion in cash and stock. PwC Consulting will not pursue its IPO.

A distance relationship between accounting and consulting

In February 2000 PricewaterhouseCoopers began pursuing steps to “dis-aggregate”its businesses in order to satisfy regulatory needs, client needs and organizationalaspirations. That May, PwC’s new restructuring plan seemed under way with therenaming of Global HR Solutions, now known as Unifi Network. In what alsoappeared to be an execution of the dis-aggregation plan, September 2000 sawHewlett-Packard enter initial talks to purchase the Management Consulting Servicesarm of PwC, in what could have been an $18 billion deal. Hewlett-Packard, hurtingfrom the tech slump, terminated these discussions in November 2000; however,rumors linking the two firms continued to swirl, especially following the May 2001announcement of an HP and PwC Management Consulting Services aviation industryconsulting alliance.

Taking it to the stock market

In the summer of 2001, PricewaterhouseCoopers redubbed its consulting businessPwC Consulting. The parent firm originally had planned the ultimate operationalseparation of its consulting arm from other business services to take place at thattime, but apparently did not feel that the move went far enough. In January 2002PricewaterhouseCoopers announced that it would file for a public offering of the

Vault Guide to the Top 50 Consulting FirmsPwC Consulting


L I B R A R Y

consulting business. Press reports have speculated that the IPO, tentativelyscheduled for August 2002, could be worth up to $9 billion.

The firm had contemplated a public offering for about two years, but was eitherunwilling or unable to make it happen. In the wake of the scandal surroundingAndersen’s dealings with Enron, however, PricewaterhouseCoopers felt that the timewas right to float PwC Consulting. The proposed offering is intended to send thepublic a strong message about the independence of the firm’s auditing and consultingbusinesses. In order for politicians, fellow Big Five-ers and potential investors toknow just where it stands, PricewaterhouseCoopers has voiced its support forregulations that would ban professional services firms from offering internal auditsor IT consulting advice to clients for which they perform independent audits. Thispoint was driven home in February 2002, when PricewaterhouseCoopers auditingclient The Walt Disney Company announced that it would no longer use the firm’sconsulting services. Disney, which reportedly paid PwC $31.9 million for consultingwork in 2001, was the first major company to make such a move. The mediaconglomerate did not cite any difficulties with PwC Consulting, and the firm hopesto regain the account once it becomes fully independent.

New blood at the top

Leading PwC Consulting into this brave new world is Thomas O’Neill. Formerly thefirm’s chief operating officer, O’Neill was named to the CEO post in January 2002.He succeeds Scott Hartz, who had held the position since 1995. O’Neill has beenwith the firm since 1967, and has been a partner since 1978. Before becoming COO,he served as CEO of PricewaterhouseCoopers’ Canadian branch. O’Neill’sappointment came less than two months after U.S. Chairman and Senior PartnerSamuel A. DiPiazza Jr. was selected to succeed James J. Schiro as CEO of parentfirm PricewaterhouseCoopers.

A firm by any other name

In 1966, California pop quartet The Mamas and the Papas scored a No. 1 hit withtheir classic song “Monday, Monday.” The John Phillips-penned tune declared that“Every other day of the week is fine/but whenever Monday comes you can find mecryin’ all of the time.” Thirteen years later, The Boomtown Rats wrote “I Don’t LikeMondays,” further echoing the feelings of millions of music fans toward the day atthe beginning of the workweek. Flying in the face of such popular wisdom, in June2002 PwC Consulting announced that it was changing its name to “Monday” upon



completion of its separation from PricewaterhouseCoopers. The firm asserted thatthe new moniker is “exactly what we want it to be as we create our new business: areal word, concise, recognizable, global, and the right fit for a company that workshard to deliver results.” While the reference to the name being a “real word” seemsto be a direct shot at the much-maligned “Accenture,” the relative wisdom of thechoice of “Monday” immediately stirred a great deal of debate among industryinsiders. The point was soon moot — the announced acquisition of PwC Consultingby IBM effectively put the kibosh on the firm’s elaborate rebranding strategy.

Bumps along the road

Despite its size, PwC Consulting has not been immune to the economic downturn ofthe last two years. As its Fortune 500 clients scale back on spending and personnel,so must PwC Consulting. Early in 2001, the firm cut 500 consultants from its U.S.and British operations. In April of that year, PwC announced further cutbacks thatamounted to the loss of 1,000 consultants from the U.S. consulting unit, or 8 percentof consulting employees. A third round of cuts, representing another 5 percent of theU.S. consulting staff, came in August. An additional 78 newly hired grads were alsolet go that month, just weeks before they were scheduled to start work, though theywere given the equivalent of two months’ salary for their trouble. The U.K. branchlaid off 280 consultants in September, and 330 more IT consultants and supportpersonnel were asked to leave voluntarily the next month. PwC Consulting staffersin other European offices did not escape the ax either — in October the firm laid off2 percent of its 1,000-person workforce in Poland, and two months later cut 4 percentof its 1,500 employees in Spain.

New angles

PwC Consulting has a particular affinity for new technologies (e.g., VPNs, virtualprivate networks and synchronous optical networks) that keep networking costs to aminimum and increase flexibility, reliability, and responsiveness. The firm’sintellectual capital can be accessed directly on the Web, and customers andconsultants can link up to conduct business on secure sites. With such interest andproficiency in the market, it isn’t surprising that PwC Consulting has designed,operated and hosted some of the largest eMarket exchanges. The firm also has wonconsiderable recognition for its technology leadership. It was ranked No. 1 for ERPServices by IDC in 2000, and that year landed at No. 3 on eWeek’s e-businessnetworking FastTrack. In 2001 IDC named PwC Consulting the No. 1 firm in therealm of e-markets. And in 2002, the Federal CIO Council and the Industry Advisory



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Council’s e-Gov Shared Interest Group awarded the firm two Excellence.GovAwards for innovation in the realm of e-government.

Female-friendly culture

PricewaterhouseCoopers has been one of Working Mother magazine’s 100 BestCompanies for Working Mothers for the past three years in a row. In 2001 PwCConsulting’s parent cracked the list’s top 10, becoming the first professional servicesfirm to do so. Continuing in that woman-friendly tradition, PwC Consulting hasrecently implemented a number of new programs. Among these are a new parentalleave policy, expansion of the sick time policy, emergency backup child care, and anew-mothers’ lactation program. PwC has appointed a female partner to be dedicatedfull-time to increasing “work/life effectiveness,” diversity recruiting and retention.The firm also facilitates “networking circles” for female staff in various officesacross the country to encourage women to network and mentor each other througheach stage of their careers. In addition to its efforts — and successes — in recruitingand retaining women, PwC Consulting has a dedicated Diversity Recruiting andRetention team and has adopted a variety of programs to foster communication,mentoring and networking.

An appealing place for all

Other new PwC Consulting programs are aimed at work/life balance. More Nights@ Home helps staffers manage their time by offering alternatives to the traditionalworkweek, as allowed by project demands. A second program, For YourConvenience (FYC), is a concierge service available at many U.S. locations that fora small fee will run errands such as grocery shopping or dog walking while an employeeis out of town. Consultants who have difficulty coping with the demanding lifestylecan take a one-and-a-half-day Personal Survival Series seminar, which includes stressmanagement lectures and activities. The firm also allows consultants to telecommuteor arrange flexible work schedules. Finally, the awkwardly named LifeBalanceOneSource provides referrals to resources for matters ranging from emotional healthto education and schooling and from child and elder care to work issues.

All of these programs have paid off: PwC Consulting was ranked No. 7 in Consultingmagazine’s inaugural Top Ten Consulting Firms to Work For list in May 2001 andNo. 10 in ComputerWorld’s 100 Best Places to Work in IT list in June 2001 (markingthe seventh straight year the firm has made the top 20). Of course, the consultingindustry is not for everyone, so PwC Consulting offers a professional career



counseling service through a Career Management Center. The center advisesemployees on other opportunities both within and outside the firm.

A nation of training opportunities

Andersen isn’t the only Big Five consultancy with a swanky training facility. PwCConsulting has its Learning and Professional Development Center in Tampa, Fla.,that can host up to 750 participants for 10- to 12-week IT training sessions. Newhires head to the 23-acre center for courses on topics from application developmentto business process solutions. The Global Training Center is located in Philadelphia,and its courses teach best practices and professional development skills. There arealso extensive opportunities for self-paced, computer-based courses, instructor-ledclasses, and on-the-job learning experiences. An added bonus is the distance-learning MBA program offered jointly by PwC Consulting and the University ofGeorgia’s Terry College of Business. The program is tailored to enable consultantsto pursue MBAs while working on client engagements. In addition, PwC offers tuitionsponsorship for other executive MBA programs across the country, as well as full-timesponsorship for top-performing staff members who want to pursue a degree full time.

GETTING HIRED

In PwC Consulting’s traditional hiring process, undergraduate and MBA applicantsgenerally go through two on-campus interviews, though some undergrads reportmaking it through to the next round after just one interview. Second-roundinterviews, which vary in number, are conducted by several partners and staffmembers and usually take place at PwC Consulting’s offices. Case questions aresometimes used for undergrads and always used for MBAs, but “it’s nothing acandidate should try to prepare for. If you have up-to-date knowledge of the industryyou are interested in, and can think logically through a problem, you should beable to breeze through it.” Brainteasers can also sometimes find their way intointerviews (“How would you estimate the number of stop lights in Manhattan?”), ascan other odd questions — one example we’ve heard is “Convince me that the sky isblue.” Candidates are notified of hiring decisions soon after the day’s activities havebeen completed.

Says one MBA of his run through the gauntlet: “I had to meet recruiters, juniorconsultants, senior consultants, directors and ultimately several partners.” Advisesanother, “The consultants have a big say in whether the person is to be extended an



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offer or not. Don’t just try to impress the partners!” Some applicants are also giventhe B-APT test, “which gauges how [you] would fare in the PwC Ascent training.”

Unfortunately, campus hiring has been suspended temporarily, and many of PwCConsulting’s other recruiting channels “have dried up” recently. For now, “Mostrecruiting is on an ‘as needed’ basis for project-specific needs.” When the economyimproves sufficiently, insiders expect the once “great hiring process” to come backinto practice.

OUR SURVEY SAYS

Flux time

With a merger (between Price Waterhouse and Coopers & Lybrand), a proposedpublic offering and a recession all occurring over the last couple of years, the cultureat PwC, understandably, is in a state of flux. Says one veteran, “Before our merger,there was more of a ‘family’ environment. Everyone knew everyone else, and therewas a feeling of community. Since the merger, it feels like we are too big to have afeeling of ‘one.’” “Up until the last fiscal year I think that the culture of this firm wasextremely positive,” adds one insider. “However, given the slowdown in theeconomy and the additional pressures exerted on the industry by the Enron/Andersenscandal, our firm has made decisions at the executive level that have really damagedthe firm culture.” Specifically, those decisions include job cuts and pay reductions.Notes one senior consultant, “Many of the all-stars are leaving due to the socialiststance the partners took in giving everyone a 7 percent pay cut.”

Others put a different spin on the firm’s ongoing metamorphosis. “The culture wasmore pleasant a few years ago, but the pressure on the consulting industry is changingthat,” observes an employee in New York City. “Given the constraints I believe thisplace is more pleasant to work at than some other consulting companies I workedfor.” Aside from some complaints about the firm’s management, insiders havegenuine affection for one another. It is a “very supportive, team-oriented culturewhere co-workers often develop close friendships outside of work.” At the sametime, it is a “no-nonsense work culture” where “Type-A personalities abound.” Sumsup one immodest source, “The people here are what make it home for me. We aresocial, capable, loyal, honest, fun-loving, occasionally hung over and hardworking.All in all, we are great people.”



Great early training

PwC consultants universally laud the firm’s training for new hires. “One of the mainreasons for choosing PwC is the extensive training we receive when starting with thefirm,” says an analyst. “Ten to 13 weeks, compared to the two weeks other Big Fivefirms provide, gave me a huge advantage on my first project.” Adds another, “I thinkthat the company invests an incredible amount of resources and money in their newhires.” Employees “are required to have 20 hours of training a year, because we arestill connected with the accounting side of the firm.”

The training programs for seasoned consultants do not garner the same high marks,however. An employee in Los Angeles explains: “Training has become more ‘just intime’ lately, and the quality is questionable. There are a number of good, practicalcourses, but there are some that make you want to bang your head on your deskbecause they are too theoretical or simply living in a fantasy land.” Additionally, “Ifyou are billable and working many hours, you usually have a hard time actuallygetting approval to take training, let alone training off-site. That would cost the firmmoney.” Consultants often fill their training requirement through the use ofcomputer-based training (CBT) courses, of which “there are plenty offered,” butwhich “are not up to date with the latest technologies and are very boring.”

Lambasting the compensation structure

Employees pull few punches when talking about compensation issues. The firminstituted a 7 percent across-the-board pay cut in the fall of 2001 — insiders say itwas “an absolute morale killer” — and “it is rumored that there may be a pay cutcoming again this year.” “Most people no longer feel any ownership or responsibilityto this company,” says one source. Notes a senior consultant, “I am making 7 percentless this year even though I was given a promotion and am doing more challengingwork. And frankly, we have no doubt that when business turns around, the partnerswill benefit and there will be little thought to restoring the 7 percent.” Adding to thefrustration is the often-confusing nature of the bonus system. “They’ve changed theirbonus structure every single year since I’ve been with the firm,” complains anemployee in Charlotte. With the public offering looming on the horizon, “No onereally knows what to expect.” Most believe that “post-IPO compensation will beincentive pay with a lower base,” but, says one consultant, “I’m not too optimisticthat I’m going to like it because I have yet to see [a merit-based system] work.”



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Feast or famine

When asked about their work hours, PwC consultants are diplomatic. “Hours arereasonable, but you never know when an assignment can pop up and you’ll beexpected to put in some long nights,” says a consultant in Washington. Notes acolleague in Fairfax, “PwC does make an effort to stress the importance of work/lifebalance. One of the phrases is ‘You won’t enjoy life without work, and you won’tenjoy work without a life.’” At the same time, adds one insider, “It is expected thatwhen there is work to do, that it will get done regardless of how many hours and/orweekends employees might have to work.”

As is typical in the industry, the work schedule is a feast-or-famine proposition.“When it’s hot, it’s hot, but when it’s not, can you say ‘Institute of Art on Tuesday?’”asks a Seurat-loving consultant in Chicago. Many consultants report logging a fairamount of time on the beach of late, though “this year is the aberration.” Says onesenior consultant, “Due to the rough economy I’ve been on the beach recently, butthis is the first time in my employment history that has happened.” Beach time alsovaries quite a bit from one consultant to another. “How much time you spend on thebeach really depends on who you know, not what you know,” says a source in thenation’s capital. This is not to say that employees are always lobbying for time offfrom projects, however: “People don’t complain as much about the hours, knowingthat if you’re on the beach, you may be on someone’s list to be laid off.” Moreover,a manager warns would-be beachcombers not to misunderstand the phraseology: “Evenwhen on the beach, we tend to work very long hours on proposals. In fact, it is notuncommon to work longer hours on the beach than on a typical client engagement.”

Nobody’s home

While the hours are usually manageable, expect to be on the road a lot. Simply put,“You go where your client is.” For most PwCers, that means being at the client sitefor most of the week, though it does not necessarily entail getting on an airplane.PwC Consulting “provides the More Nights @ Home program, in which consultants“arrive at the client site early on Monday morning and leave late on Thursday night.”Most within the firm appreciate the intent of the policy, though one complains that “Ihave spent a total of two Wednesdays in my hometown in the last two years.”Insiders generally seem resigned to the idea that it is “nearly impossible to be aconsultant without traveling to the client site.” Jokes one, “They say that this is apretty good job if you have a bad marriage.” Fortunately, “The longer you are withthe firm, the more likely it is that you can find your next gig locally.”



Trying to improve

Much like its peer firms, PwC Consulting has made strong efforts to address diversityissues. How successful those efforts have been, however, remains open to debate.The firm is said to be “very diverse, but not at the project management and partnerlevel.” A consultant in Los Angeles remarks that “the firm has many diversityinitiatives established, [but] sometimes communication about these initiatives is notgiven to all employees.” Men and women alike agree that they “have seen feworganizations where women are given more opportunity,” yet many “still find it to bean old boys’ club.” The “partner ratio is still dominated by men, but it is quicklychanging.” Others contend that “PwC Consulting can do more to assist lower-levelwomen staff to make it through the ranks.” One woman says that whatever problemsexist in this area are due more to the nature of the industry than any firm-specificdeficiencies. “This is not the ideal career for many women. I fully expect to look foralternatives when children come into the picture. These alternatives may exist withinPwC, but it’s not my expectation that they can bend completely to my priorities.”

Views are similarly conflicting in regard to minority hiring and retention. “The firmseems to be making an effort to have programs that involve minorities,” says a D.C.consultant. “However, such programs are usually overlooked by non-minorities, andas such the programs don’t really promote interaction among different groups.”Many assert that “the firm hires more individuals of some minority groups thanothers.” For example, says a senior consultant, “The firm does fine with Indian andAsian [employees], as that comprises a majority of the people I work with. African-American and Latin people are grossly underrepresented, due partially to the firm’slack of minorities in leadership positions.” While the numbers may not be equal,other employees do not see a problem: “The firm does as it should — promote andhire on credentials,” opines a source in Atlanta. “If as a minority you are hired orpromoted, you can be well-assured that it was because it was earned.”



L I B R A R Y

For a detailed 40- to 50-page insider report on PwC Consulting,and reports on other firms like McKinsey, BCG, Bain, DeloitteConsulting, Accenture and more, get Vault Employer Profiles.Go to http://consulting.vault.com.


1676 International DriveMcLean, VA 22102Phone: (866) FOR-KCINwww.kpmgconsulting.com

LOCATIONS McLean, VA (HQ)163 offices worldwide

PRACTICE AREASBroadband Solution CentersCustomer Relationship ManagementEmerging Technology — Mobile

SolutionsEnterprise SolutionsGovernment, Education and Health

Care SolutionsHomeland SecurityInfrastructure SolutionsIntegration ServicesManaged ServicesStrategy & Business Process

ServicesSupply Chain Management

THE STATS

Employer Type: Public CompanyStock Symbol: KCINStock Exchange: NasdaqCEO: Rand Blazer2001 Employees: 10,0002000 Employees: 9,1002001 Revenues: $2.86 billion2000 Revenues: $2.37 billion

UPPERS

• Flexible hours• Community involvement assistance

DOWNERS

• Turnover and travel• Bureaucracy can be overwhelming

KEY COMPETITORS

AccentureCap Gemini Ernst & YoungDeloitte ConsultingElectronic Data SystemsIBM Global ServicesPwC Consulting (Monday)

EMPLOYMENT CONTACT

https://kpmgconsulting.recruitmax.com/eng/candidates/

KPMG ConsultingV A U L T


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“Family-friendly”“Trying to define itself”“Still strong”“Bargain basement”

THE SCOOP

Growing the business

Spun off from Big Five firm KPMG LLP in January 2000, KPMG Consulting, Inc.(also called KCIN internally) has been making a name for itself ever since. The firmoffers consulting services in the areas of financial services, consumer and industrialmarkets, communications and content, high tech and public services; plus, KPMGConsulting has been forming new alliances to help grow the business systemsintegration area. As of mid-2002, KPMG Consulting boasted more than 9,000employees worldwide. Revenues for this global behemoth totaled $2.86 billion in2001 — a 20.5 percent increase over its 2000 revenues.

Public spectacle

In May 2000, KPMG Consulting became the first Big Five consulting firm to file foran IPO, marking the end of a period of intense speculation. The waiting was over onFebruary 8, 2001, when KPMG Consulting offered more than 112 million shares tothe public at $18 and watched the value rise 30 percent to over $23 per share duringthe course of the day. Of the shares offered, KPMG Consulting had owned 31.8million, and KPMG LLP, the firm’s parent, had owned 80.6 million. (KPMG LLPno longer holds a stake in KPMG Consulting; with the IPO, it sold off its entireinvestment.) The offering constituted 73.7 percent of the 152.1 million sharesoutstanding, and many on Wall Street hailed the IPO as a success.

Health problems

However, KPMG Consulting has had a bit of a rocky road since going public. InFebruary 2000 the company announced layoffs of 350 consultants due to “revisedrevenue expectations.” Chief executive Rand Blazer had been hoping for a growthrate of 38 percent for fiscal 2000 — but with growth running at a mere 20 percent,he decided to hand out pink slips. In April 2001, the company announced aworkforce reduction of another 450 to 550 positions.

In August the firm announced that while overall revenues for the year were up, fiscalfourth quarter revenue totaled $723 million, a 4 percent decline from Q3, (though an8 percent increase compared with the same quarter in the previous year). Revenue inthe firm’s financial services unit dropped by nearly 40 percent for the quarter, whilehealth care revenue was down 24 percent. As a result, the firm restructured its health

Vault Guide to the Top 50 Consulting FirmsKPMG Consulting


L I B R A R Y

care unit, folding operations into the public services and high technology arms.KPMG Consulting’s public sector continued to show strong growth, however, due toanticipated increased government spending.

Unfortunately, the first quarter of fiscal 2002 brought more unsettling news, withrevenue dropping by $114 million (in part as a result of September 11th), or 15.8percent from the previous quarter. Revenue and net income figures continued todecline in Q2. In October 2001, several hundred employees were offered voluntaryfurloughs of three to six months, during which time they had the option of workingon a part-time or on-call basis. According to company spokesman JohnSchneidawind, the furloughs were an attempt “to avoid layoffs at all costs.”Unfortunately they did not accomplish that objective — the following month the firmannounced that it would cut 300 to 400 jobs, or about 3 percent of its workforce.

All the right moves

KPMG Consulting has been making many moves to improve its business. The IPOinitially included operations in the United States and 15 other countries (Canada,Argentina, Brazil, Mexico, Colombia, Costa Rica, Guatemala, Ireland, Israel, Japan,New Zealand, Nicaragua, Peru, South Korea and Venezuela), and the company hassince expanded by acquiring the consulting practices from KPMG International inAustralia as well as market rights in parts of Greater China. In June 2002 itannounced an agreement to acquire KPMG Consulting AG, the German, Swiss andAustrian consulting practices of KPMG International, for $685 million.

The firm’s boldest and perhaps most controversial move came in May 2002, when itsigned a letter of intent to acquire most of Andersen’s global consulting operations— including the 1,400-employee U.S. arm, for which KPMG Consulting agreed topay $63 million in June — in a deal reportedly worth up to a total of $284 million.With the deal, KPMG Consulting would increase its global workforce to more than16,000 employees. In June the firm entered into definitive agreements to acquire theindependent business consulting units of member firms of Andersen WorldwideSociété Cooperative in Japan, Norway, Finland, Switzerland and Sweden. KPMGConsulting also acquired significant portions of the consulting units of Andersen’smember firms in Australia, Hong Kong and mainland China. At the time of thiswriting the firm was engaged in ongoing discussions to acquire additional Andersenpractices as well.



Tech fiesta

At a time when many consulting companies have been trumpeting their e-businessexperience, KPMG Consulting slowly but surely has become an e-businesspowerhouse. In May 1999 it acquired Softline Systems & Integrators, Inc., bringingin about 450 new consultants and gaining control of Softline’s software. The firmalso developed a new intranet, dubbed Inside KPMG Consulting, where consultantscan access engagement-related documents and training and business developmenttools, as well HR policies and information.

KPMG Consulting also has formed more than 40 strategic alliances. In 2000 the firmsigned a number of agreements, including one with Internet software providerInktomi and another with four other technology companies — DataChannel, OblixInc., BackWeb Technologies and Interlynx Technology. In June 2001, KPMGannounced a partnership with Microsoft to develop new interactive televisionservices. The two companies are joined in the alliance by software firms BSQUARECorp. and Rachis Corp. Other alliances announced in 2001 include VitriaTechnology, Mercator Software, webMethods, and an expansion of an existingalliance with Compaq. The trend continued in 2002, with KPMG Consultingannouncing an exclusive supply chain solution marketing agreement with Procter &Gamble in March. The firm also expanded its alliance with Sun Microsystems thatyear and entered into separate agreements with e-Business platform provider IONAand HAHT Commerce, a provider of demand chain management applications for theconsumer packaged goods industry.

On the road

Acknowledging the sometimes hectic lifestyle endemic to the consulting industry,KPMG Consulting recently adopted a “Traveler’s Bill of Rights” to help itsemployees cope. The program is designed to ensure that consultants have a five-dayworkweek, during which they are not out of the office for more than four days oraway from home for more than three nights. In order to make sure these policies areupheld, the firm staffs projects with locally based consultants whenever possible.

GETTING HIRED

Since the firm’s consultants are focused on specific industries, KPMG Consultingplaces an emphasis on hiring professionals with experience in their chosen sectors.When it comes to hiring prospects, one source is optimistic: “For the most part, you



L I B R A R Y

have to have a decent amount of skills, but occasionally specific projects hire a lot ofpeople very quickly.”

Candidates can expect “four to five interviews: a screening interview (usually overthe phone) and then a series of interviews with employees from the group you willbe working in, either during an office visit or over the phone.” Insiders tell us thetypes of questions are “driven by the individual interviewer, not by formalprocesses,” but typically, candidates can expect “a case study, lots of questions aboutyour experiences, teamwork skills and so on.” To prepare, insiders adviseresearching the specific practice area in which you are interested and to “be flexible”as far as scheduling goes.

Insiders tell us that new KPMG Consulting employees can expect “four days oftraining [including] two days of firm-wide material” that explain what the “values,goals, and mission of the firm are” and “two days of consulting-specific material”that include “procedures, case studies and so on.”

OUR SURVEY SAYS

A large bureaucracy

Insiders tell us that KPMG Consulting employees have “a lot of freedom in terms ofprojects.” However, this freedom comes with a price. “If you don’t know how towork the system, you get screwed,” a source claims. “It’s not by design — thecompany is very disorganized.” This same source warns, “They’ll put you onsomething you don’t want to be on unless you’re firm about it.” Another consultantexplains, “If you are honest from the beginning about your expectations andrequirements, things can be worked out.” Insiders say that “newbies” should “find amanager you are compatible with and become a sponge” in order to get staffed on thebest projects. KPMG Consulting tells us that its “Opportunities within Consulting”program provides an internal method for consultants to find a better niche within thecompany. “Sharp and motivated consultants can get a lot of opportunity quickly,”notes one employee.

Still, insiders in the high-tech practice especially complain of staffing missteps. Onefrustrated consultant explains, “I was supposed to be the information architect on myproject — but I’ve just been doing a lot of research.” Another adds, “I like the clientengagements, but I don’t like the office environment. I would prefer somewherewhere both were equally impressive.”



The firm’s reputation in the technology consulting field is “very strong,” mainlybecause of “the firm’s focus on e-business and e-strategy and our partnerships withMicrosoft, Cisco and SAP, among others.” Insiders say that the firm considersAccenture, IBM Global Services, PwC Consulting (Monday) and a few others amongits chief competitors, although KPMG Consulting is also competing with Internetconsultancies, such as Sapient, for clients.

Choose your office wisely

Insiders report that “culture varies somewhat between offices. In D.C., for example,there’s a gay/lesbian support group. Raleigh is very stuffy and ‘old-boy’ and theSilicon Valley office is ‘very laid-back.’” In general, the smaller offices tend to bemore rigid and controlling, insiders say, and “a lot of the culture depends on yourpractice and the group you are working in.” In terms of design, “the KPMG officesare nice” and “reasonably comfortable,” with “typical office décor — plain colors,nothing overly creative or unusual.”

Take a hike

Now is also the time to sign up for your frequent-flier card. According to one source,“Most everyone travels from Monday to Thursday. Estimates another, “Consultantstravel, on average, about 70 percent of the time. We try to stay regional in ourbusiness, but when the client has offices all over the country, sometimes it isnecessary to work at all those offices.” Insiders say that the firm does try to ensurethat its consultants get to go home each weekend, “except at the end of a project.”One insider tells us that there is “a degree of flexibility” in the amount of travelrequired: “I have some say in where I go and how much time I want to spend perweek traveling.” There are also arrangements available to all staffers worldwide thatallow for flex-time schedules and telecommuting.

Value-added culture

As for the employees themselves, in some offices they are “fairly young, with mostlarge projects staffed by people in the 20- to 30-year-old range.” (While some of thefirm’s consultants may seem young, the firm reports that they average 13.5 yearsof experience.) Employees place great stock in the firm’s core values, according toone insider: “People put a lot of faith and belief into these ideas, and they serve thefirm well.”



L I B R A R Y

While insiders say that the firm has a “large number of minorities,” they “tend to bemostly in technology-oriented [positions].” One female consultant tells us that shedoes not feel that “women are hindered in any way,” though “there is clearly maledominance in the company.” However, others report being pleased with the numberof women executives in all areas of the company.

Insiders say that the interoffice communication could use improvement. As oneemployee explains, “I find that the various departments barely communicate witheach other. I don’t even speak with most people on my floor.” One step in the rightdirection is the biweekly e-mail newsletter, KCINsider, which provides consultantswith news on all sorts of goings-on at KPMG Consulting and which always startswith a message from Rand Blazer.

Good use of time

“Community involvement is encouraged” at KPMG Consulting, we hear. The firmrecently established a new philanthropy program, the implementation of which wassped up after September 11th. The effort includes a support network, a matching giftsprogram and an initiative enabling employees to get involved with local volunteerprojects. Insiders say that pro bono work is “typically up to an individual group —they may do it if they are currently unbillable or feel it is an opportunity for them.”KPMG Consulting also sponsors lots of “community events, practice dinners andsports teams” to help employees bond.

Additionally, “continuing education opportunities abound and usually involve travel,with KPMG picking up the tab.” Another source tells us that the firm’s consultants“are required to participate” in a minimum of 40 training hours per year, involvingWeb-based courses and self-study. Insiders report that there is also “support forexternal training.” At the same time though, adds one source, “Training is very muchself-driven — no one ever tells you ‘take this training this week so you can start arelated project next month.’” The firm tells us that this is changing, however, withthe spring 2002 introduction of a training initiative known as Competency Manager. Aspart of the program, consultants set training goals twice a year with their performancemanagers; the goals are then translated into formal training plans. The system alsooffers more than 1,000 courses through the online Learning Management System.

Standard benefits, varying perks

The firm offers five weeks of personal time, but it’s not exactly all vacation. As oneinsider describes it, “KPMG Consulting is a bit unusual in that it combines vacation



time with sick leave, so it’s great if you’re young and healthy, maybe not so great ifyou’re sickly.” Among the standard perks are “services provided by the company tohelp with day-to-day activities,” such as an online concierge service. Be forewarned,though, that “some [other] perks vary from office to office, or [managing director tomanaging director], or even manager to manager.” On the other hand, benefits atKPMG Consulting are uniform in all offices. Among these are medical and dentalinsurance, long-term disability insurance, a 401(k) savings plan with matchingcontributions, stock options, an employee stock purchase plan and an employeereferral bonus.

Does anyone actually work those hours?

There are no official hours in consulting, as the schedule depends on the person andthe project. One consultant says, “Sometimes I do leave at 5:30 p.m., other days [Istay] until 7:30 p.m.” Another consultant concurs that “Ten or 11 hours a day istypical.” At times, “Hours can be very long [for consultants], with late nights spentcompiling and analyzing data or preparing a presentation for a project meeting orboard meeting.” Fortunately though, flex-time options are available to allemployees. Furthermore, points out one consultant, “Work hard during the week andyou won’t work many weekends.”



L I B R A R Y



5 Times SquareNew York, NY 10036Phone: (917) 934-8000Fax: (917) 934-8001www.cgey.com

LOCATIONS Paris, France (HQ)New York, NY (HQ)Offices in more than 30 countries

PRACTICE AREASBusiness Solutions & Technology:Advanced Development &

Integration — NetworkInfrastructure & Solutions

B2B — Supply ChainCustomer Relationship Management

— DareStepExtended Enterprise Applications/

Enterprise Resource Management Finance & Employee Transformation

Outsourcing:Applications ManagementInfrastructure ManagementBusiness Process Management

Strategy & Transformation:Strategy ConsultingTechnology Consulting

THE STATS

Employer Type: Public CompanyStock Symbol: CAP.PAStock Exchange: ParisCEO: Paul HermelinChairman: Serge Kampf2001 Employees: 56,500 2000 Employees: 60,0002001 Revenues: $8.3 billion2000 Revenues: $8.4 billion

UPPERS

• Good profit-sharing plan• Diverse for an established firm

DOWNERS

• Shake-up in culture• Constant travel

KEY COMPETITORS

AccentureDeloitte ConsultingElectronic Data SystemsIBM Global ServicesKPMG ConsultingPwC Consulting (Monday)

EMPLOYMENT CONTACT

www.cgey.com/career/

Cap Gemini Ernst & YoungV A U L T


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• “Strong ‘we can do everything’-spirit”

• “Layoff City”• “Solid and dependable”• “What a culture clash”

THE SCOOP

CGE&Y around the world

No matter where you are on this planet, you probably aren’t far from a Cap GeminiErnst & Young office. The firm employs more than 56,000 people worldwide andhas a significant presence in more than 30 countries. Formed through the May 2000merger of French consultancy Cap Gemini and the consulting arm of Big Five firmErnst & Young, the consultancy services the chemicals, consumer products, retailand distribution, energy and utilities, financial services and insurance, health care,high tech, life sciences, manufacturing, telecommunications, media and networkservices, and transportation industries. Working for both dot-coms and more maturecompanies, CGE&Y provides management and IT consulting services, systemsintegration and technology development, as well as design and outsourcingcapabilities to companies looking to stay at the forefront of the connected economy.To accomplish its high-tech objectives, Cap Gemini Ernst & Young maintainsstrategic alliances with top tech firms like Cisco, Compaq, IBM, Microsoft, Oracle,PeopleSoft, SAP, Siebel and Sun.

Making connections

During the Internet boom, Cap Gemini Ernst & Young placed its bets on helpingtraditional businesses and “dot companies” establish an online presence. Well, anyobserver of the economy over the last few years knows how that business plan playedout. CGE&Y even created a stand-alone division dedicated to e-business in 2000 inan attempt to compensate for the firm’s slow entry into the dot-com market. Themove backfired, however, when intraorganizational conflicts resulted. “We made amistake,” then-COO Paul Hermelin told the Financial Post in May 2001. “Ittriggered some internal resentment and as the Internet hype was fading we had toreorganize.” Like most consulting firms, CGE&Y now targets more traditionalfirms, such as its current clients Bell Canada, engineering concern ABB, Eli Lilly,Heineken and Standard & Poor’s.

Cap Gemini Ernst & Young has sought other, more promising markets as well. InDecember 2000, CGE&Y and Cisco Systems formalized their March 2000agreement by launching a new industry practice, Cap Gemini Ernst & YoungTelecom Media Networks. The practice works under CGE&Y’s auspices, providingsoftware and other strategic telecommunications technology solutions to more than150 clients.

Vault Guide to the Top 50 Consulting FirmsCap Gemini Ernst & Young


L I B R A R Y

Cutting crew

As corporations struggled in 2001’s rotten economy, Cap Gemini Ernst & YoungCEO Geoff Unwin announced that he would step down from his post at the end ofthe year and leave the firm altogether in April 2002. (Unwin, 59 years old at the timeof the announcement, said he had already planned to retire when he turned 60 andasserted that the move was not a result of pressure from the shareholders.) Takinghis place was longtime CGE&Y executive Paul Hermelin. Coinciding with theannouncement of the leadership change came word that 2,500 employees would belaid off, increasing the total for 2001 to 5,400, or about 9 percent of the firm’sworkforce. Employees who lost their jobs in December could perhaps take solace inbeing informed of the layoffs in person; according to The Times of London, 750staffers in the United Kingdom learned they were being let go via voice mail.

CGE&Y made the moves as part of a massive cost-cutting initiative designed to saveabout $800 million, but layoffs were not the only money-saving measure the firmundertook. For example, in a devastating blow to bread lovers throughout the firm,the traditional free Tuesday morning croissants were canceled in some European offices.

Also in the fall of 2001, the firm downgraded its annual revenue forecast from anoriginal figure of $9.6 billion to $7.5 billion. (It ended up earning about $8.3 billionfor the year.) As a result, financial analysts have been understandably skittish whenit comes to assessing CGE&Y. “The [post-merger] integration challenge wasmassive,” Goldman Sachs equity research director Richard Leggett told TheInternational Herald Tribune in November 2001. “But it took nine months toestablish the structure of the new organization. Those turned out to be a crucial ninemonths. As the company emerged from that period, the bottom fell out of the market.”

For his part, new CEO Hermelin remained rather tight-lipped about the firm’s futureduring this period, asserting only that CGE&Y did not expect to make any dramaticshifts in strategy until market conditions improved. This statement did not keepothers from predicting such a shake-up, however; in December 2001 rumors surfacedthat IBM Global Services had offered to acquire CGE&Y. The two companies havebeen the subject of merger rumors several times in the past, but both continue to denythat any kind of a deal is in the works.

While Hermelin would not talk about the possibility of a merger, he did say early in2002 that CGE&Y was through making major cost-cutting measures. Unfortunately,that was not to be. Despite the CEO’s earlier statements, in June of that year the firmannounced a change in structure aimed at improving profits in its core consulting, IT



services and outsourcing business lines. As part of the move, CGE&Y planned to cutanother 5,500 jobs over the following six months — including 2,500 immediate cutsin the European and North American telecom and financial services divisions. Anadditional 3,000 employees, mainly in back-office positions, were expected to go byJanuary 2003 (though some could move to other jobs elsewhere in the firm).

Pursuing partnerships

In November 2000, Cap Gemini Ernst & Young began forming a number ofpartnerships and services extensions. That month it teamed up with Oracle and FiatSpA to form an Internet consulting company, eSPIN, with Fiat’s new BusinessSolutions arm. In February 2001, the December 2000 partnership between CGE&Yand Vodafone was officially named Terenci, a company offering mobilecommunications services to a variety of industries. The following month, CGE&Yand tagmanet launched tagmaConsultant, an online consulting service.

Despite its layoffs and financial difficulties, CGE&Y also has expressed interest inacquiring smaller information technology services companies. In May 2001 then-CEO Unwin reported that the firm had been approached by a number of companiesabout a possible acquisition, and that it was scouting potential targets. CGE&Y islooking in particular for companies to fill niche markets in Germany and the Asia-Pacific region.

Recognition

Experiencing firsthand the sting of pink slips and declining revenues, Cap GeminiErnst & Young has undertaken a branding effort intended to unite the firm and itsclients “against our common foe: The Economy.” The guerrilla campaign, officiallycalled “Defy the Economy,” markets the firm’s methods of transforming companiesinto “adaptive enterprises” that can combat market volatility. As of mid-2002,CGE&Y had already launched it in Europe and had begun to target the United States.

In need of a new acronym, the firm also created OTACE (On Time Above ClientExpectations), a new tool through which clients can make known what they hope toaccomplish prior to the start of an engagement and evaluate the firm’s performanceon an ongoing basis. But if the awards on CGE&Y’s mantel are any indication, thefirm’s client service was hardly in need of a boost. In February 2001, it received the“Greatest Business Impact” Lotus Beacon Award for Knowledge OnLine, the internalknowledge management system it created for the Fluor Corporation. The next month



L I B R A R Y

it brought home the Best Management Practice Award from the ManagementConsultancies Association (MCA).

April 2002 saw the National Association of Colleges and Employers (NACE) giveCGE&Y’s Multimedia Campus Presentation its 2002 Award of Excellence in thecategory of Educational Programming by an Employer. Three months later,CGE&Y’s Telecom Media Networks industry practice received the TeleStrategiesBilling World 2002 Excellence Award for Integration Project of the Year for work ithad done for Nextel Communications. It was the second straight year the firm hadreceived an award for integration work at the Billing World conference.

GETTING HIRED

Cap Gemini Ernst & Young typically recruits on campus at a handful of top businessand undergraduate schools, though it also finds candidates who submit resumesthrough its web site. We hear the firm’s actual selectivity “depends on what positionyou want and what industry or service line is ‘hot.’”

The firm conducts two rounds of case-based interviews. About 50 percent of second-round interviews are again conducted on campus, with the other half at local CGE&Yoffices. (For experienced candidates, an office or telephone interview is used in placeof the initial campus interview.) In the second round, candidates also are givenbehavioral interviews (with the exception of the strategy and transformation group)with two to three managers, senior managers and/or vice presidents. Successfulcandidates are contacted with offers within 48 business hours of their secondinterview round.

MBAs can expect to have three interviews. The first is with a manager, the secondwith a senior manager or vice president; if those are successful, there is a third witha vice president. CGE&Y uses cases in its MBA interviews, but not in everyinterview — “It depends who is interviewing and what skills are being sought,”explains one consultant.

CGE&Y does not have a formal internship program, but does hire interns in someareas on an ad hoc basis. Those who make the grade can look forward to what isdescribed as “a pretty easy summer.” Interns are staffed on regular projects andattend numerous “events for interns and trips.” One alum says it “helped introduce[him to] the personalities of the people and the culture of the firm, but didn’t help interms of client service work since there was little exposure to the day-to-day.”



OUR SURVEY SAYS

Hard times

Insiders tell us that life at the firm has been unstable over the last year. As is the casefor many of its competitors, new hiring at CGE&Y has slowed down significantly,and raises were on hold for most of 2001 and 2002. “Combine our leadership’s lackof ability to execute the post-merger integration with the recession of 2001, and whatyou have is not pretty,” laments one insider. “Given the layoffs and the pooreconomy, there was not much attention put toward culture,” adds another. “I will saythere has been recent improvement on this. There is a push from all levels to rebuilda strong culture. I hope it will be successful, but it will depend on the economyimproving.” Nevertheless, “The constant worry about the job situation has beenextremely frustrating.”

Crunch time

CGE&Y is a no-nonsense firm, which may explain why it has been able to do as wellas it has, despite the economic downturn and the uncertainties associated with themerger. “The firm is a believer in being integrated into the client’s everyday workenvironment,” we hear, which can mean extremely long hours and little time on thebeach. “On projects, I’ll leave around 7 to 9 p.m. generally,” says a source. “Oncrunch days — about 30 percent of a typical project — I’ll leave between 10 p.m. and2 a.m.” A fair amount of time is dedicated to social activities as well, says a source:“Though most project members can go home Thursday evenings, a good numberchoose to stay at the client city Thursday nights and go out dancing and partying.Then they get up early Friday and fly home … The after-work social life is a greatending to a long day. This pace, however, wears one out and by the weekend I don’teven want to go out with my friends. I just want to sleep!”

Some respondents estimate that they spend as much as 90 percent of their time on theroad. Explains one source, “I have been fortunate to find local projects, [but that] israre. My colleagues who do travel go by the 3-4-5 policy where they fly into theclient city Monday mornings and can fly home Thursday nights. Fridays theytypically work from home.” None of this should be surprising, of course; as onesource warns, “Consulting in general is no place to have a family. The hours are long,and you never know what the future will hold.”



L I B R A R Y

Well-paid and diverse

In return for their hard work, consultants at CGE&Y can expect a solid compensationpackage, as well as the standard benefits: accidental death/dismembermentinsurance, an on-site gym in some offices, laptops and tuition reimbursement. Theyare also recognized for career milestones, receiving loyalty gifts for certain numbersof years of service at the firm. In addition, “The merger brought about a moreconcrete and lucrative bonus structure.” According to one consultant, “All staff, inthe U.S. at least, receive profit sharing equal to 3 percent of their annual pay,deposited into their 401(k) each January. This is on top of the 401(k) matching weget.” The firm adds that it has further improved this benefit, increasing the profitsharing component from 3 percent to 5 percent of total compensation for eligibleemployees. It has also increased its contribution levels for all 401(k) planparticipants. Another, less tangible benefit is what one consultant calls CGE&Y’s“very good learning environment,” where “the upper executives treat therelationships as a mentorship.”

And despite the conservative nature inherent in being a large consultancy, CGE&Yis a diverse firm. “Four of my five projects have had women as my manager,” oneinsider says. “There also seem to be a reasonable percentage of vice presidents whoare women.” For a consulting firm, CGE&Y is ethnically diverse as well: “If you lookat MBA schools as a benchmark, I would say CGE&Y is average to above average.”



For a detailed 40- to 50-page insider report on Cap Gemini Ernst& Young, and reports on other firms like McKinsey, BCG, Bain,Deloitte Consulting, Accenture and more, get Vault EmployerProfiles. Go to http://consulting.vault.com.


“The after-work social lifeis a great ending to a

long day.”

— CGEY consultant


L I B R A R Y


245 Park Avenue44th FloorNew York, NY 10167Phone: (212) 377-5000Fax: (212) 377-6000www.marakon.com

LOCATIONS New York, NY (HQ)Chicago, ILSan Francisco, CALondon Singapore

PRACTICE AREASChange Management FinanceLeadershipOrganizationStrategy Consulting

THE STATS

Employer Type: Private Company CEO: Ken Favaro2001 Employees: 3752000 Employees: 400

UPPERS

• Challenging, high-level work• Great learning and development

opportunities

DOWNERS

• Tough, unpredictable lifestyle• Little name recognition outside the

corporate world

KEY COMPETITORS

Bain & CompanyBoston Consulting GroupMcKinsey & CompanyMercer Management ConsultingMonitor Group

EMPLOYMENT CONTACT

www.marakon.com/careers

Marakon AssociatesV A U L T


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• “The quant jocks”• “Living on an outdated rep?”• “Cerebral”• “A ‘one-big-idea’ firm whose idea

is 20 years out of date”

THE SCOOP

Value obsession

Marakon Associates, founded in 1978 and today one of the world’s premier strategyconsultancies, applies one overriding principle to its practice: that management’sgoverning objective should be to maximize a company’s long-term value forshareholders. Rather than offering best practices advice, Marakon instead rewrites aclient company’s strategies and management processes to achieve top-quartileshareholder performance vs. its peers. To accomplish this lofty goal, Marakonconsultants identify value creation opportunities by relentlessly delving into strategy,organization, finance and any other pertinent aspects of management. Approximately30 percent of the firm’s business comes from financial services, 20 percent from theconsumer products industry and another 20 percent each from the retailing andmanufacturing/industrial products industries. The rest of Marakon’s clientele hailsfrom a variety of other sectors.

A well-kept secret

Marakon was founded by three Wells Fargo executives and a business schoolprofessor who foresaw the impact that value-driven strategies could have on thebusiness world. They set up shop in San Francisco and started to spread the wordthrough a small number of clients. Nearly a quarter of a century and two officemoves later, the business world has validated their hunch — today nearly everystrategy firm has a shareholder value practice, and countless corporations havealtered their management processes according to Marakon’s principles.

Nevertheless, few people outside the corporate world have heard of Marakon; evenmany MBA candidates have a hard time explaining what it does. The firm’s lowprofile is due in part to its size; in an industry dominated by big strategyconsultancies like McKinsey & Company (12,500) and Booz Allen Hamilton(11,000), Marakon’s 250 consultants hardly seem a force to reckon with. But thefirm’s relative anonymity suits its partners just fine; as they are apt to say, they onlyneed to know 500 people — the CEOs of the Fortune 500.

Spreading a strategy

Because Marakon is convinced that strategy is in the details, it has been known toanalyze a client’s every business activity and decision — even those made at the

Vault Guide to the Top 50 Consulting FirmsMarakon Associates


L I B R A R Y

lowest levels. Ensuring that the strategies, organization and finances of a companyare aligned to maximize value can be a long and expensive process; Marakon hasbeen known to spend three to five years and charge $5 million to $10 million a yearin consulting fees before completing an engagement. As a result, the firm has madea conscious choice to adopt a long-term partnership mode of operation — that is,staying with a small number of clients for several years, rather than cycling throughdozens every year.

Strong growth and a diversity of clients

Marakon’s success speaks for itself. Having assisted — and impressed — the likesof Boeing, Nordstrom, Coca-Cola and Dow Chemical, Marakon has proved that ameticulous working method reaps great rewards. The 10 companies with whichMarakon has worked the most have seen double the shareholder returns of their peersduring the time they worked with the firm. (The typical Marakon client outperformsits peers in total shareholder returns by five percentage points over a 10-year-plusperiod.) Marakon does quite nicely for itself as well. It maintains a revenue-per-consultant rate of $476,000, earning it a place as one of the three highest-paidconsultancies on Consulting Alert’s Global Leadership Index in 2001. And since itsfounding Marakon has boasted a 27.5 percent annual revenue growth rate, more thandouble the industry average.

Up with people

In 2001, Marakon underwent a “redesigned consultant compensation” project, whichincluded increases in equity, base pay, annual bonus and the overall bonus range forconsultants. According to the firm, its approach to employees, its so-called “peoplemodel,” focuses on three themes — learning, leading and living — and, at least intheory, the firm puts a premium on a healthy life/work balance. Marakon’s quarterlymeetings, planned and run by consultants and staff, are one- to three-day events thatincorporate activities like treasure hunts and talent shows. As with most firms,Marakon expects its consultants to report to their client sites usually three or fourdays a week, but the firm keeps careful track of hours and lifestyle conditions. And,like all good consultancies, Marakon tries to keep a handle on employee satisfactionthrough internal surveys.

Marakon maintains a tight watch on its consultants’ performance, including biannualperformance reviews and ongoing, informal feedback. Consultants at all levelsparticipate in training programs in general business and consulting skills. Employees



who plan to attend business school receive application coaching, and top consultantsoften receive full, up-front tuition reimbursement if they decide to return to Marakonafterwards. Those who do return — and many do — stand a good chance of makingpartner within six to seven years, one of the fastest tracks in the industry. Accordingto the firm, employees whose performance is “on track” can expect their salary todouble about every three years.

GETTING HIRED

Marakon offers prospective consultants a variety of ways to enter the firm. It recruitsfrom undergraduate institutions, U.S. and European MBA programs and advanceddegree programs in the States. For students, Marakon has a 10-week MBA internshipprogram in all of its offices as well as an eight-week BA summer program in itsLondon office.

Marakon typically limits its recruiting to Princeton, Penn, Duke and a few other top-notch undergraduate programs, as well as the top business schools. At the same time,as one respondent tells us, “It’s no McKinsey. We do not have 300 applications atevery campus, nor are we as selective.” The interview process at Marakon involvestwo to three rounds, with two to three interviews in each round. “You meet witheverybody from the level you would start at through partner,” reports a senior analyst.The first one or two rounds take place on campus, with the final interview at aMarakon office. The firm relies on case questions, and one source warns that “thecontent of the case studies requires more analytical skills than at most firms.”

OUR SURVEY SAYS

Working for a living

Across the board, consultants describe working for Marakon as intense. Weekendwork is a given, and while consultants are supposed to put in about 65 hours perweek, that can quickly spike during crunch times. Says one Marakonite, “You willwork hard if you join Marakon. Most people probably average around 70 [hours perweek], with significantly higher hours quite often.” Though this kind of work isn’tfor everyone, insiders believe that working at Marakon is rewarding for those willingto put in long, hard hours. The same consultant adds that “Although you do work



L I B R A R Y

hard, it is a great experience, and I genuinely believe you learn more than at any otherfirm as a recently graduated 22-year-old.”

On the other hand, the flip side to working for an elite, focused firm is the lack ofopportunity to take on projects beyond the immediate needs of the firm, a problemmany insiders say is rampant at Marakon. Notes one consultant, “The heavilyquantitative nature of the work and the focus on certain approaches limits thepotential variety of projects done.” And, decrying the firm’s laser-like focus onimproving shareholder value, another respondent says there is “the feeling that youhave to ‘drink the Kool-Aid’ of Managing for Value,” providing “no opportunity toreally specialize if you are interested in a particular industry.”

Life in the balance

Most firms, of course, boast about their commitment to a work/life balance, but inmany cases that dedication is more talk than reality. But insiders say Marakon ismore serious than other firms about its employees’ quality of life; as one consultantnotes, “Compared to my peers at other consulting firms, my hours are veryreasonable. Marakon doesn’t value face time for the sake of it, and allowsconsiderable freedom as long as the work gets done.” Ultimately, of course,balancing work and life is up to the individual, and at Marakon “The hours can creepup if you don’t actively work to maintain a balance.” Though the hours “get morepredictable and manageable as you progress within the firm,” the workload cansometimes be overwhelming. One consultant notes, “The only problem I have is thatit is constantly challenging and whilst that is good, it is also quite exhausting.” (Yes,she actually said “whilst.”) Not surprisingly, many people who come to work forMarakon find themselves in over their heads, and as a result the firm has only anaverage retention rate.

A nice place to work

The majority of Marakon respondents praise the firm for its professional, collegialatmosphere and well-managed structure. The partners “really make an effort toensure people are happy and satisfied with the job,” says one consultant. Anotheradds, “One of the things I value most about the Marakon culture is the absence ofintellectual arrogance. People here are extremely bright and share a commitment tointellectual curiosity, which supports a culture of approachability at all levels.”

Though some insiders say that Marakon project teams can be overly hierarchical, ingeneral they characterize the firm’s management as friendly and easy to work with,



often “making the rounds on Friday afternoons with a beverage of choice.”“Virtually all partners have an open-door policy,” says one consultant. “I have foundthe vast majority of them very approachable and genuinely concerned about thepeople that work for them.” Adds another, “Obviously treatment by executivesdepends on the individual, but over the course of my two and a half years here, I haveworked one-on-one with the partner on nearly every project. I [am] always treatedwith the utmost respect and [have] learned a great deal.”

Marakonites also give high marks to the firms’ offices. One respondent tells us that“All managers and higher have their own offices everywhere. In some offices,consultants have their own offices as well.” Another notes that while “I still onlyhave a cube, the office is so gorgeous, I don’t mind,” while a third respondent evengoes so far as to say that “The San Francisco office is the nicest office environmentI have ever seen.”

Up and away

Marakon consultants travel almost every week, with a Tuesday-through-Thursdayroad schedule being “the standard travel model for the firm,” though “there arealways exceptions, a good example being international travel. That typically resultsin a two week away/one week home travel model.” The travel can be “intense, attimes. It seems almost everyone has some form of elite status with the airlines. Wedo have local projects, but our smaller number of offices tends to increase ourfrequency of travel.” Nevertheless, for domestic projects, Sunday travel is rare, andtravel loads lighten after the first few years.

Good rewards for good work

Consultants at Marakon may be asked to give 110 percent, but their efforts arereimbursed with top-notch compensation packages. Salaries are “equal or above top-tier firms,” with bonuses often 20 percent of yearly base pay or more, though theyare tied to firm performance and thus can vary greatly from year to year. The firmoffers stock ownership and profit-sharing plans, and has a tuition reimbursementprogram for top consultants returning to school for an MBA or another advanceddegree. Added benefits include free food and drinks in the offices, gym membershipdiscounts, Palm Pilots and in-house massage therapist visits.



L I B R A R Y

Training days

While in recent years Marakon has cut back its employee training program,respondents tell us that it is still one of the best things about working for the firm.“Marakon invests a huge amount of time and resources into training,” one consultantsays. “I don’t remember the exact statistics, but I believe the number of hours theaverage Marakon consultant spends in training during the first two years is one of thehighest in the industry.” The firm is particularly concerned with bringingundergraduate hires up to speed on the latest business practices, through both in-classand on-the-job instruction. As one consultant reports, “The training provides a goodbalance between theory and practice. It is much more usable than training I haveseen in other firms.”

Marakon’s internship program also receives high marks from consultants. “I had agreat, meaty role on a strategy project,” one former intern reports. “Marakon alsoprovided an extensive training week and social calendar to ensure we met not onlyfellow summer interns, but also full-time Marakon consultants at every level.” Theprogram “exceeded my high expectations,” says another. “I worked on real work —not ‘make work.’ I dealt with clients and participated in meetings and presentations.I saw the Marakon consultant lifestyle with minimal sugarcoating.”

Each of Marakon’s offices also takes part in a number of community-involvementactivities. The New York office participates in “tutoring of underprivileged studentson an ongoing basis. We also volunteer at nursing homes, soup kitchens, andparticipate in events such as the Revlon Run/Walk for Breast Cancer.” The firm offerspro bono consulting for nonprofits, and “If anyone has a desire to set up additionalcharity-based (non-billable) work, this is always welcomed and encouraged.”

Marakon? Who’s that?

As a small firm, the lack of name recognition is a constant problem for Marakon.CEOs and industry insiders recognize and respect it, but insiders say the companycould do more to get its name out. While this is hardly a hindrance to Marakon’s top-level work, it “can make things like outplacement slightly more challenging.”

Nor is Marakon the most diverse of firms. While the firm hires a good number offemale consultants, it has a hard time retaining them. As a result, the number ofwomen climbing the Marakon hierarchy is small. “Very few women exist at thesenior ranks,” says one respondent. “The larger problem is that the pipeline is alsovery thin.” Another consultant adds, “We only have two female partners, one of



whom is not in a client-facing role, and only one minority partner.” And whileMarakon reportedly has expanded its recruiting efforts to bring in minorities, atpresent there are very few at the firm.



L I B R A R Y



100 Half Day RoadLincolnshire, IL 60069Phone: (847) 295-5000Fax: (847) 295-7634www.hewitt.com

LOCATIONS Lincolnshire, IL (HQ)91 offices worldwide

PRACTICE AREASOutsourcing:Broader Human Resources Business

Process OutsourcingDefined Benefit Defined ContributionHealth and Welfare

Consulting:Health ManagementPeople Value and Human Resources

ManagementRetirement and Financial

Management

THE STATS

Employer Type: Public CompanyStock Symbol: HEWStock Exchange: NYSECEO: Dale L. Gifford2001 Employees: 13,0002000 Employees: 12,0002001 Revenues: $1.5 billion 2000 Revenues: $1.3 billion

UPPERS

• Extensive perks and benefits• Flexible hours

DOWNERS

• Low pay

KEY COMPETITORS

CitiStreetFidelityMellon FinancialMercer Human Resource ConsultingTowers Perrin Watson Wyatt Worldwide

EMPLOYMENT CONTACT

http://was.hewitt.com/hewitt/careers/index.htm

Hewitt AssociatesV A U L T


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• “Tried-and-true”• “Pink collar ghetto”• “The best HR policies around —

they really care”• “Tough”

THE SCOOP

Seizing an opportunity

In 1940 Ted Hewitt opened an insurance brokerage in Lake Forest, Ill. After workingwith his first client, Parker Pen, he realized what the company really needed was awell-designed benefits package for employees. Soon after, Hewitt Associatesaugmented its actuarial work, eventually offering a broad array of human resourcesconsulting and outsourcing services. Over the years the firm expanded its presence,initially by opening offices in Minneapolis, New York City, Milwaukee, Los Angelesand Dayton. It reached beyond the borders of the United States with the creation ofa Toronto office in 1974, and opened branches in Paris and St. Albans (outside ofLondon) in 1985. Today, Hewitt Associates is headquartered in Lincolnshire, Ill. andhas approximately 13,000 associates in 91 offices (including joint ventureoperations) in 39 countries. The firm boasts a client roster that includes more thanhalf of the Fortune 500.

Continuing to grow

One of the 20 largest management consulting firms in the world as well as the largestbenefit consulting firm in the United States, Hewitt is growing rapidly. In 2001 thefirm posted revenues of $1.5 billion, up from $1.3 billion the previous year.(According to the Chicago Tribune, the firm has increased its revenue at a 20 percentaverage annual clip since 1997 and has added about 1,000 new employees each of thelast three years.) Hewitt also has become one of the largest providers of benefitoutsourcing services — in fiscal 2001, that business line garnered $952 million in netrevenue, a 19 percent increase over 2000. Not bad for a year in which the worldeconomy turned decidedly shaky.

In June 2002, Hewitt finalized a merger with Bacon & Woodrow, a United Kingdom-based actuarial and consulting firm, adding further consulting depth in the areas offinancial management, human resource management and administration. Hewitt alsoexpanded its capabilities through its May 2001 acquisition of Canadian consultancyThe Alberta Actuarial Group (AAG).

One area where the firm is hoping to increase its market share is the Asia-Pacificregion. In June 2001 Hewitt opened its Asia Pacific Measurement Centre. The firm’sthird such endeavor (the other two are located in Brussels, Belgium and Scottsdale,Ariz.), the Centre is designed to manage the mass of human resources information

Vault Guide to the Top 50 Consulting FirmsHewitt Associates


L I B R A R Y

contained in the firm’s global databases. And in September 2001 Hewitt struck anoutsourcing alliance with India Pension Services Ltd., thereby becoming the largestHR services provider in that country.

A lauded place to work

Hewitt has won a number of honors for its technological prowess. For example, thefirm’s tech support center received a Best Practices Award from eWeek magazine andTechnology Managers Forum in November 2001, and the firm took its place amongthe “Best in IT” by making the InfoWorld 100 a month later.

The firm has earned recognition in other ways as well. In 2000 alone, Hewitt earneda spot on several award lists, including Chicago Magazine’s Best Places to Work forin Chicago, Central Florida Family Magazine’s Top 100 Companies for WorkingFamilies and Connecticut Magazine’s Top Places to Work in Connecticut. Hewitt’srecognition isn’t limited to the United States, though — in China, Hewitt won theChina HR Consultancy of the Year award from China STAFF magazine for thesecond consecutive year.

Hewitt continued to garner accolades in 2001. In June, the firm ranked secondamong local employers in The Orlando Sentinel’s list of the Top 100 Companies forWorking Families. Within the same month, Hewitt picked up “Human ResourcesConsultancy of the Year” honors at the Asian HR Awards. Perhaps most notably,Hewitt ranked fourth on Consulting’s first-ever Best Consulting Firms to Work Forlist. And the firm added yet another mark of distinction in 2002 whenComputerworld named it one of the 100 Best Places to Work for IT for the third yearin a row. (Hewitt ranked No. 34 overall.)

Time to go public

In March 2002, Hewitt — No. 155 on the 2001 Forbes list of the 500 largest privatecompanies in the United States — registered with the Securities and ExchangeCommission for an initial public offering. On June 27th of that year, Hewittexecutives rang the opening bell at the New York Stock Exchange before offering11,150,000 shares of the company to the public. By the end of the day’s trading,Hewitt had a market capitalization of $2.3 billion, according to the Chicago Tribune.The reported $211.8 million the IPO raised will be used for strategic acquisitions andalliances and to expand the firm’s current service lines, as well as to pay off debt fromthe Bacon & Woodrow merger.



GETTING HIRED

The firm divides its services into two categories: Outsourcing (which includes healthand welfare, defined contribution, defined benefit, and broader HR business processoutsourcing) and Consulting (which includes health management, retirement andfinancial management, and people value and HR management). The firm’s web sitehas information about current openings, for which interested visitors may apply online.

At the beginning of the hiring process, Hewitt usually meets with candidates oncampus, over the phone or on-site for a half-hour, first-round interview. Promisingcandidates are then invited to a Hewitt office, where they have three to fourinterviews with associates and learn more about the firm’s various departments. Oneassociate relates his second-round experience: “Four interviews took place in oneday. I met with all levels of the team for which I was being recruited. They askedquestions about my ability to adapt, my experience with specific computer programs,my ability to cope with stress, and why I chose my major.” Case interviews arereportedly not used.

Once part of the Hewitt team, most associates hired directly out of college join theOutsourcing area. Hewitt hires a variety of majors but often gives preference to thosein computer science, MIS, accounting, economics and math. Most new hires areplaced in the firm’s Lincolnshire headquarters, while a few are asked to relocateto other offices. College students who have completed their junior year and hold aGPA above 3.0 are encouraged to apply for an internship, which may lead topermanent employment.

OUR SURVEY SAYS

All about atmosphere

Hewitt has a reputation as a friendly, family-oriented place to work, and insidersverify the rumors. They say that “almost everyone in the firm is very pleasant towork with,” and that “The overall culture is very laid-back and not as intense as otherfirms that I have worked with.” Hewitt’s population is very young; one sourcereports that “The median age for workers at Hewitt is 25 to 27.”

But the corollary of a young population is Hewitt’s high attrition rate, with mostassociates staying only a year or two. “The turnover at this firm is incredible,”



L I B R A R Y

reports one source. “It seems to be understood that most employees will only staywith the firm for a short period before moving on to better opportunities.” On theother hand, the recent IPO doubtless will serve as an incentive for a greater numberof consultants to stay. Indeed, one of the reasons Hewitt decided to go public was sothat it could offer company stock to employees as incentive compensation. But thefirm disputes the claim that attrition is a problem to begin with, asserting that itsretention rate remains over 70 percent.

Some say the firm has lost some of its chumminess as it has expanded; as one sourcetells us, the firm tries “to follow a non-hierarchy-type structure, although that seemsto be changing since I’ve been with Hewitt.” The firm says that it has no worries onthis front, though, asserting that employee satisfaction is close to 80 percent.

Perks upon perks

Hewitt consistently ranks as one of the consulting industry’s best firms to work for,with good reason. The enormous suburban campus has multiple buffet-stylecafeterias offering free breakfast, lunch and dinner, and each floor has a well-stockedsnack station complete with soft drinks, bagels and coffee. But there’s more thanfood — try gym membership discounts, an on-campus credit union, sports andtheater tickets, profit sharing, massages, dry cleaners, employee referral bonuses,laptops and other personal electronic devices, and long-term disability insurance,which is available for domestic partners. The company also pays almost 100 percentof its associates’ health insurance plans.

Hewitt encourages its employees to participate in charity and nonprofit activities, andallows them to work two days a year on volunteer projects on the firm’s time. “Itdoes sponsor quite a few charities. [There are] too many to name,” says oneconsultant. (Another source tells us that “tutoring is very popular at this firm.”) Thefirm also sponsors a number of charity events each year, most notably the ChicagoAIDS Walk.

Pay and hours both on the low side

Though the list of perks is extensive, employees tell us that pay is an area where thecompany could do better. “The inequity between hours worked and compensationseems to grow every year,” says one source. “Compensation is probably the biggestissue within Hewitt,” says another. And while the hours at Hewitt — like at mostconsultancies — certainly can add up, the firm offers a number of alternative work



options to alleviate the pressure. Several groups utilize flex-hour schedules, in which“we need to be able to put in at least 40 hours,” but are only required to “be in theoffice in the core hours of 9:00 to 3:30.” Many of the firm’s offices and practice areasoffer summer hours “when [employees] have half a day every other Friday from Maytill September.” Travel varies depending on position, but tends to be minimal forassociates just out of college.



L I B R A R Y



1166 Avenue of the AmericasNew York, NY 10036Phone: (212) 345-7000Fax: (212) 345-7414www.mercerHR.com

LOCATIONS New York, NY (HQ)Offices in 142 cities worldwide

PRACTICE AREASClient Relationship ManagementConsulting on the Administration of

HR ProgramsCorporate Finance FunctionCorporate Marketing FunctionHealth Care & Group Benefits

ConsultingHuman Resource Operations

ConsultingInternational ConsultingInvestment Consulting Retirement ConsultingRewards ConsultingTechnology Function

THE STATS

Employer Type: Subsidiary of Marsh& McLennan Companies, Inc.President: Karen Greenbaum2001 Employees: 13,0002000 Employees: 13,0002001 Revenues: $2.2 billion (for allMercer Consulting operations)2000 Revenues: $2.1 billion (for allMercer Consulting operations)

UPPERS

• Flexible hours• Extensive benefits

DOWNERS

• Conservative culture• Layoffs

KEY COMPETITORS

Hewitt AssociatesTowers PerrinWatson Wyatt Worldwide

EMPLOYMENT CONTACT

www.mercerHR.com

Mercer Human Resource Consulting

V A U L T


17


• “Knows how to get the job done”• “Stuffy”• “The best at what it does”• “Hanging in there”

THE SCOOP

Try to keep it straight

Mercer Human Resource Consulting — not to be confused with Mercer ManagementConsulting — is a world leader in employee benefits, compensation andcommunication consulting. One of several firms owned by Marsh & McLennanCompanies and one of five firms in Mercer Consulting Group (the other four beingMercer Delta Consulting, Mercer Management Consulting, National EconomicResearch Associates and Lippincott & Margulies), Mercer Human ResourceConsulting has more than 13,000 employees and 142 offices in 40 countries, from theNetherlands to New Zealand.

Until April 2002, Mercer Human Resource Consulting was known as William M.Mercer; Marsh & McLennan changed the firm’s name in order to brand its consultingcompanies more uniformly. The firm’s investment practice will now be known asMercer Investment Consulting, though it will still operate under the aegis of MercerHuman Resource Consulting. As part of the transition, the firm also launchedMercerHRMetrics, a consulting framework to help clients more consistently measurethe impact of their HR programs on the success of their business.

Living large

Size matters for Mercer Human Resource Consulting; thanks to its huge stable ofconsultants, it is able to provide a broad spectrum of HR services, from designingemployee benefits programs to HR strategy and policy development. The firm’shuman capital strategy group assists clients in organizing their various HR effortsinto sustainable, value-focused activities. Its global communications practice, with410 people worldwide, helps companies create internal web sites to communicatewith their employees, shareholders and customers. The firm staffs each team with aprincipal, a project manager and a group of interdisciplinary consultants, fromeconomists to psychologists, to provide clients with the broadest view possible oftheir human capital landscape.

But size isn’t the only distinguishing characteristic of Mercer Human ResourceConsulting. The firm also does quite nicely in industry rankings, thank you verymuch. It consistently ranks among the top five HR consultancies in the world, andin March 2002 it beat out rival Watson Wyatt Worldwide to be named the top firm inBritain, according to a Financial News poll. The following month, Finance Asia

Vault Guide to the Top 50 Consulting FirmsMercer Human Resource Consulting


L I B R A R Y

named Mercer Investment Consulting, Mercer Human Resource Consulting’sinvestment practice, the best of its breed in Asia.

Expanding opportunities

Mercer Human Resource Consulting has spent the last few years expanding itsoverseas operations, particularly in Europe. In May 2001 it opened offices inIstanbul and Prague, and in August of that year it bought Vienna-based ConstantiaNeuberger Bednar & Partner BesmbH, a benefit and retirement consulting firm. Inearly 2000 it increased its presence in South America, particularly in Colombia andVenezuela, by teaming with DeLima Marsh to form DeLima Mercer ConsultoriaLtda. This complemented the company’s existing presence in the region, whichincluded 10 offices in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela.

Mercer Human Resource Consulting has expanded domestically as well. In October2001 it completed its purchase of SCA Consulting, a value management firm, adding100 consultants to its offices in Chicago, Dallas, Los Angeles and New York, as wellas its office in London.

The firm did not weather the recent recession unscathed, though; in June 2001 it laidoff approximately 3 percent of its employees in the United States. Nevertheless,clients continued to rely heavily on Mercer’s HR services, and the company was ableto pull through better than many other consultancies.

GETTING HIRED

Visit the “Joining Mercer” section of the Mercer Human Resource Consulting website for all employment information. (All students interested in a position arerequired to begin their search there.) For each position, the site lists a description ofrequisite skills and experience, as well as credential requirements. The firm alsoaccepts resumes and personal profiles directly on its web site.

As the firm hires people into a wide variety of different positions and levels, there isno set hiring process. Some candidates may undergo a phone screening with arecruiter, and the number, duration and location of interviews can vary. In any case,comments one insider, “I don’t think the interview process is a breeze, but it isn’tterribly stressful either — depending on how you interview, I guess. The formatranges from technical questions, which are analytical and tough, to sharingexperiences about yourself and testimonials from the staff.”



OUR SURVEY SAYS

Going mobile

Mercer Human Resource Consulting features a “casual, yet hardworkingenvironment,” according to insiders. Says one, “There are plenty of career paths tochoose from. You can be very mobile within the company.” Job postings can beaccessed internally through the company intranet. As there is no formal firmhierarchy, employees say that “promotions are based on individual performance anddrive, not necessarily seniority.” Sources estimate that minorities constitute“probably 1 percent” of employees in mid- to upper-management levels, whilewomen are “about 50 percent of mid to upper management.”

Life at Mercer

Mercer Human Resource Consulting fosters “an informal culture, with flexiblehours,” although many employees arrive for the regular “9 to 5 shift — and thensome.” The dress code has recently gone business casual. Because of the firm’s HRfocus (coupled with its support from Marsh & McLennan), it comes as little surprisethat it offers “excellent benefits [which vary by country], including health, a 401(k),a pension plan and stock options,” though “support for non-billable employees” isconsidered an area where the firm could improve.



L I B R A R Y


335 Madison AvenueNew York, NY 10017-4605Phone: (212) 309-3400Fax: (212) 309-0950www.towersperrin.com

LOCATIONSNew York, NY (HQ)78 offices worldwide

PRACTICE AREASBenefit Administration Solutions •Change Management •Communications • ExecutiveCompensation • Global ResourcesGroup • Health & Welfare • HRDelivery Solutions • Mergers,Acquisitions & Restructuring •Organization & Employee Research •Retirement • Rewards &Performance Management

THE STATS

Employer Type: Private CompanyCEO: Mark V. Mactas2001 Employees: 9,0002000 Employees: 8,4002001 Revenues: $1.47 billion2000 Revenues: $1.45 billion

UPPERS

• Internal flexibility

DOWNERS

• Long work hours

KEY COMPETITORS

Cap Gemini Ernst & YoungHay GroupHewitt AssociatesMercer Human Resource ConsultingMercer Management ConsultingPwC Consulting (Monday)Watson Wyatt Worldwide

EMPLOYMENT CONTACT

http://careers.towers.com/towers_career/

Towers PerrinV A U L T


18


• “Clients love them”• “Soft, not dynamic” • “Take good care of their people”• “Smart people, for HR”

THE SCOOP

An HR veteran

Towers Perrin has been a leader in human resources consulting for nearly 70years. Today, the firm has approximately 9,000 employees working in 78 officesin 23 countries. Its clients include three-quarters of the world’s 500 largestcompanies and more than 700 members of the Fortune 1000, and it has worked onbehalf of governments, educational institutions, nonprofit organizations andprivate sector corporations.

Three divisions make up the bulk of Towers Perrin: the eponymous managementconsulting unit; Tillinghast-Towers Perrin, a provider of actuarial and riskmanagement services (primarily to the insurance and financial services industry); andTowers Perrin Reinsurance, a large reinsurance intermediary. Despite rumors, thefirm has repeatedly resisted going public, instead distributing its stock among 650 ofits partners and employees.

A long history

Towers Perrin began in 1934 as a Philadelphia firm called Towers, Perrin, Forster &Crosby, which specialized in reinsurance and employee benefits consulting. By the1960s, it had spread throughout North America, and by the 1970s it had aninternational presence. In 1987 the firm changed its name to Towers Perrin. Thecompany continued to grow throughout the 1990s, adding areas of expertise to itsexisting services by acquiring small specialty consulting firms. In 1998, it bought theNorth American Risk & Insurance Services arm of Watson Wyatt, a Maryland-basedHR consulting firm (the unit was absorbed by the Tillinghast-Towers Perrindivision). In May 1998 Towers Perrin purchased MillerHoward Consulting Group,an Atlanta-based change management specialist.

Shopaholic

If you think you know how to shop, Towers Perrin probably has you beat. Over thelast few years, Towers Perrin has inked a lengthy list of acquisitions and partnerships,mostly intended to give it a stronger position in the growing online benefits sector.In June 2001 it teamed up with WellMed of Portland, Ore. to develop customizedbenefits intranet sites, and the next month it consolidated its internal Web-basedefforts into its HR Delivery Solutions group. In December 2001 it bought Columbia,

Vault Guide to the Top 50 Consulting FirmsTowers Perrin


L I B R A R Y

Md.-based Working Concepts, a boutique consultancy that helps clients implementHR technology systems such as PeopleSoft, Authoria and Oracle. That same monthit signed a deal with TALX, a payroll services firm in St. Louis, to provide moreefficient income verification to clients’ employees securing a mortgage, leasing a caror renting an apartment.

Dealing, if not wheeling

February 2002 was a banner month for new deals at Towers Perrin. It expanded itspartnerships with two Massachusetts-based firms — its new deal with BrassRing, arecruiting software company, allows the two firms to provide talent managementproducts and services, and its deal with Authoria now includes joint marketing andsales activities. And that same month ATOFINA, a French chemical manufacturer,became the first client to implement tp e-Health, a Towers Perrin system designed togive employees complete access to their benefits online.

Beyond the Web

Towers Perrin also has been aggressively expanding its retirement benefits business,no doubt noticing the increasing age of the average American. In October 2001, itreached an agreement with J.P. Morgan/American Century to provide comprehensiveretirement services backed by JPM/AC’s investment strategy services. And in 2000,it introduced Retirement Financial Management, which was developed as aframework for managing all aspects of a defined benefit plan — including plandesign, accounting, funding and asset management. A second framework, “mypay-myway,” gives employees the flexibility to customize their benefits package toreflect their individual needs and preferences.

Publications

Towers Perrin shares its knowledge with clients through a variety of industry-relatedpublications, including the Towers Perrin Monitor, Perspectives and a number ofsurveys, special reports and studies. The publications cover key developments andtrends in employee benefits, compensation and HR management, as well as infinancial services, risk management, pension funds, executive compensation andhealth care in countries where Towers Perrin has a business presence.



GETTING HIRED

Towers Perrin recruits at approximately 60 schools; a list can be found on the firm’sweb site. The firm encourages those whose school is not on the list to send a resumeby mail. In either case, Towers Perrin will contact candidates to set up an interview— on campus if the firm is around, over the phone if not. This interview will beprimarily behavioral, focusing on accomplishments and interests. If the firm isinterested, it will then invite the applicant to a local office for a day of interviews.The second round consists of three types of interviews: an “experience andaccomplishments” interview, a “hypothetical situations” interview and sometimes acase interview.

At the undergraduate analyst level, says one insider, “the company looks for peoplewith degrees in communications, math, economics or another business-related field,”though it has hired students with degrees ranging everywhere from actuarial scienceto liberal arts. Towers Perrin reportedly hires people by probing for “assertiveness,integrity, initiative, organization, communication, listening [skills] and teamawareness.” Insiders say that the review process is “democratic” and that “Positionsare not filled because there’s a particular opening. We hire those we feel showpotential. We always will find work for a good candidate.” Says one source, “Weactively recruit from a select group of universities, though the door is open toeveryone,” and candidates can expect to “meet with people at all levels, from twoyears of experience to 25-plus years of experience.”

As for MBAs, the firm prefers people with at least two or three years of relevant workexperience. The interview system is also slightly more rigorous; insiders report athree-round hiring process. The first round usually consists of “two half-hour caseinterviews.” In the second, sources say, “You get two 45-minute case interviews.”For the third round, candidates “are given a case and 45 minutes to develop apresentation, which you give in front of the interviewer.” Our contacts say this typeof case interview “is nerve-wracking in the beginning, but easier than the traditional casequestions because you have time to organize and prepare.” Understanding the industryis key, as “Candidates need to anticipate what the case questions will be about.”



L I B R A R Y

OUR SURVEY SAYS

Great culture

Insiders overwhelmingly agree that the culture at Towers is “non-hierarchical,”“friendly” and “supportive.” Reports one source, “I have never felt much pressure toavoid approaching anyone because of their level or title,” while another adds that“There isn’t a big division of ‘executives’ vs. ‘non-executives’ at the firm.” And the“doors are always open” at Towers. Says one employee, “If I want to call the CEOto discuss something, he treats me as though I’m the most important thing he’s gotgoing on.” Overall, consultants at Towers “have a reputation for being down-to-earth, not stodgy.” Indeed, “The firm’s culture has become less stodgy over the lastfive to 10 years, as younger individuals have risen to senior management positions.”

An egalitarian workplace

As with all large companies, the “quality of office space varies by location.” Onesource comments, “For the most part, offices are high-end, high quality, comfortableenvironments. A handful of office locations are sorely in need of updating.” SanFrancisco, though, needs no remodeling — as one resident raves, “The office spaceis aesthetically very appealing; the décor is very fashionable; and the view — fromthe 29th floor, overlooking San Francisco and the surrounding bay — can’t be beat.Individual accommodations, cubicles and offices, are very comfortable and areconducive to both collaboration, as well as affording each person some privacy.”One denizen of a “brand new office” believes it “looks like it was designed byStarbucks.” Even the “CEO has the same size office as a consultant.” The firm tellsus that this is part of a corporate standard — all offices with a door are the same sizeand all cubicles face windows.

Path to partner

While some insiders agree that “most diligent, good performers will eventually makepartner,” others argue that it isn’t so simple. There are “some examples of veryyoung partners,” but insiders have pegged the trip at seven years for a very strongcandidate from the undergraduate ranks or as little as five years for an MBA. Ofcourse, the firm tells us that the time frame for achieving partnership varies with eachindividual and can’t be given a specific range of years. One insider says that if youwant to make partner at Towers Perrin, you need to “sell a lot of work, network well



within the company and local market, do consistently high-quality work, and staybillable.” In a startling case of policy transparency, the criteria for making partner foreach role and each line of business are available on the HR section of Towers’ intranet.



L I B R A R Y



5400 Legacy DrivePlano, TX 75024-3199Phone: (972) 604-6000Fax: (972) [email protected]

LOCATIONS Plano, Texas (HQ)Offices in more than 55 countries

PRACTICE AREASManagement Consulting (A.T.

Kearney)Operations SolutionsPLM SolutionsSolutions Consulting

THE STATS

Employer Type: Public CompanyStock Symbol: EDSStock Exchange: NYSECEO: Richard H. “Dick” Brown2001 Employees: 143,0002000 Employees: 122,0002001 Revenues: $21.5 billion2000 Revenues: $19.2 billion

UPPERS

• Excellent benefits• Career Mobility Program

DOWNERS

• Low morale• Training budget cuts

KEY COMPETITORS

AccentureAmerican Management SystemsComputer Sciences CorporationIBM Global ServicesPwC Consulting (Monday)

EMPLOYMENT CONTACT

[email protected]

Electronic Data SystemsV A U L T


19


• “Nobody can touch them in IT”• “Stodgy”• “Big, consistent”• “Glacial”

THE SCOOP

Sailing the stormy e-seas

At a time when a stigma has settled on all things “e” and high-tech consultancieshave taken a beating, EDS remains a bright star in the digital sky. In March 2002 thecompany announced more than $1 billion in contract signings, and in 2001 thecompany arranged a multibillion-dollar list of IT deals, including a $1.5 billionextension on its communications outsourcing deal with Xerox. EDS CEO RichardBrown, who took over the reins in 1998, attributes his company’s success to its “end-to-end” solutions — EDS is so large that it can provide a client with initial consultingservices, build the necessary IT infrastructure, and manage the business processes thenew architecture makes possible. And because business process management is along-term affair, EDS is somewhat better insulated from the recent decline in demandfor tech consulting than many of its competitors.

In April 2002, EDS announced a strategic realignment of its three main business units— Information Solutions, E.Solutions and Business Process Management — intotwo divisions, Operations Solutions and Solutions Consulting. Operations Solutionsis more or less a continuation of the firm’s core practice — IT outsourcing asembodied in the Business Process Management unit — while Solutions Consultingis a combination of E.Solutions, EDS’s IT consulting practice, with InformationSolutions, which focused in implementation services. The resultant SolutionsConsulting claims 40,000 employees, almost one-third of the total EDS workforce,and boasts $7.2 billion in annual revenue. EDS is also the parent company ofmanagement consultancy A.T. Kearney.

In the beginning

Long before Ross Perot set his sights on the Oval Office, he founded Electronic DataSystems. Perot had been working for IBM for 10 years, and he proposed that thecomputer giant begin offering clients electronic data processing managementservices. IBM turned the idea down, and a disgruntled Perot left in 1962 to start hisown company. In the mid-1960s, EDS entered the medical claims processing,insurance and banking markets — and went on to become the leading provider ofdata management in each of these industries. General Motors bought the companyin 1984, and the rocky relationship between GM and Perot led to the founder’sdeparture in 1986. GM spun off EDS as an independent company in 1996 (though

Vault Guide to the Top 50 Consulting FirmsElectronic Data Systems


L I B R A R Y

GM continues to provide EDS with a large amount of business). Today EDS providese-business and IT services to 9,000 corporate and government clients in 55 countries.

“E” efforts

EDS put Brown’s strategy of aggressive expansion into play with the November 2000establishment of bluesphere, a multipurpose agency that integrates and executes webdesign for the e-commerce market. Less than two years later, EDS bluesphere hadmore than 2,500 employees and 750 customers. But bluesphere was only the latestin a series of new-economy initiatives, and in January 2000, EDS launchedeBreviate, an “eSourcing” unit that provides procurement and strategic-supplymanagement services (it was later integrated into A.T. Kearney). And in December1999, EDS established CoNext, which the firm describes as network procurement forFortune 500 companies to increase speed and achieve cost savings in more than 50percent of large company purchases.

A venture adventure

In December 1999, EDS announced the formation of EDS-A.T. Kearney Ventures, ane-business fund with $1.5 billion in seed money. The fund enables EDS to takeequity positions in Internet-based consulting clients or alliance partners, with aprimary focus on investments in the Internet and business-to-business arena. EDS-A.T. Kearney began by investing in CoNext and Tradex Technologies.

Sprouting wings

EDS got involved in the airline and travel industry in a big way when, in March 2001,it signed a multibillion-dollar deal with The Sabre Group. The transaction includedEDS’s purchase of Sabre’s airline infrastructure outsourcing business and internal ITinfrastructure assets for $670 million, as well as a 10-year, $2.2 billion contract forEDS to manage Sabre’s IT systems. In December 2001, EDS agreed to provide ITservices to former clients of Atraxis, the bankrupt IT subsidiary of Swissair Group.By the end of the year, EDS was the world’s largest provider of airline IT solutions.

Keep it like a secret

In the last few years, EDS has also been pumping itself up as a leader in electronicprivacy matters. In January 2001 it named Paul D. Clark chief privacy executive andDetlef Eurich chief information security officer; it also began to offer electronic



signature software to its clients. At the COMDEX convention in April 2001, EDSlaunched its Cyber Security Institute, an electronic-security curriculum for ITpersonnel, and announced an agreement with Fortress Technologies to market the ITsecurity company’s Virtual Private Network software, which allows companies toshare sensitive information securely. And just six months later, at the COMDEX fallconvention, EDS introduced a suite of security programs: the Security AssessmentTool, the Privacy Assessment Tool and EDS Cyber Risk Management Tool.

Government circles

In October 2000, EDS signed a $7 billion deal to build and maintain an intranet forthe Navy and Marine Corps. And in January 2001, in cooperation with Indentix, EDSdemonstrated a new secure digital voting solution for members of Congress. Thesystem would allow U.S. military personnel overseas to vote online, eliminating theneed for absentee ballots (and maybe a few Supreme Court cases). EDS’s activity ingovernment electronic security increased even further after Sept. 11th, and in January2002 it named retired Army Major General Robert L. Nabors as the head of itsHomeland Security initiative, which integrates EDS security offerings into federal,state and local governments.

International sights

After buying out Karden Technology’s 45 percent stake in EDS Israel in August2000, EDS announced plans for continued expansion overseas. In October 2000,EDS and A.T. Kearney launched Kearney Interactive in France, which combinedEDS’s E.solutions group with management consultants from A.T. Kearney to provideIT strategy consulting throughout Europe. Based in Paris, Kearney Interactive hopesto grow to 1,000 consultants in France, as well as to expand into the United Kingdom,Italy and Germany by 2003. In March 2001 EDS bought Germany’s Systematics, afirm focused in e-consulting, e-applications, systems services and hosted services.The $570 million deal added 2,700 employees and clients including SingaporeAirlines, as well as several e-commerce subsidiaries that Systematics had purchasedin the previous year.

GETTING HIRED

EDS is an IT firm, but you might not guess it from the variety of people it hires —the company says it prizes brains and initiative over proven skills. The firm has



L I B R A R Y

internal training for its new hires, concentrated in three areas: systems engineering;engineering systems development; and finance, accounting and financial servicesdevelopment. The extensive careers section of the company’s web site provides afirm overview, the EDS campus recruiting schedule and a database of available jobs.Those interested can submit a complete application online. EDS accepts resumes formost entry-level positions on a continuing basis. The firm visits some colleges —though these days, as one source tells Vault, “We receive 20,000 to 30,000 resumesa month, so we don’t do as much campus recruiting as before.”

While the hiring process at EDS can vary, sources report a basic set of threeinterviews. The first, with a recruiter, is a standard resume review; the second, adiscussion of the position applied for; and the third, a meeting with threemanagement-level representatives who ask primarily behavioral questions. Onesource, who interviewed with four people, says, “They flew me to corporate for oneday of interviewing, [lasting] six to seven hours, after the initial phone interview. Imet with my future customers, my manager and the person I was replacing in theposition.” Another former interviewee says he was also asked about his “interest injoining the client’s company after 18 months should the opportunity be presented tome,” an understandable concern for a company that places most of its employees atclient offices. But take all of this with a grain of salt — one source warns that EDS’s“recruiting processes are inconsistent and/or nonresponsive at most times.”

Internships at EDS are available to students after their sophomore year in college.For this program, EDS seeks students with a proven track record of academicexcellence, strong communication and teamwork skills, professionalism andleadership ability, and an interest in pursuing a career in information technology. Inreturn, EDS provides a salary and academic credit. And a separate opportunity, theCooperative Education Program, is available for college juniors and seniors who areenrolled in their university’s co-op program and who demonstrate the same qualitiesas internship candidates.

OUR SURVEY SAYS

How do you rank?

The public face of EDS may be smiling, but inside many of its employees aregrumbling. “Employee morale is low and fears of losing your job recur everypayday,” one source tells Vault. Says another, “I have not talked to one person that



would not leave right now if the job market was better. That’s about 75 people onmy site and over 100 at another. The morale is the lowest I have ever seen.”

On the other hand, insiders roundly praise their clients and co-workers, and couchtheir criticisms in the fact that, on a daily basis, the average consultant spends moretime at client sites. And one consultant tells us that perspectives at EDS tend to differbased on a person’s position and potential in the company: “If you are in the top 10percent of the 140,000-plus employees, you will be paid generously. If you are in thetop 10 percent of the 140,000-plus employees, your career progression can be wideopen and unlimited providing you’re willing to prove yourself.” And another notesthat one’s experience “completely depends upon your manager and the organizationyou work for in EDS. For two years I had a very unpleasant time in one organizationwith three different managers, while the last two years I have worked in a differentorganization with the same manager with a great culture.”

Cuts in training

Getting in — and up to speed — at EDS is understandably harder than it used to be.The firm is still hiring, though we hear its U.S. employment rolls have been slow toexpand in recent months, with most of the growth taking place overseas. These days,one EDS employee tells Vault, “It is either complete luck or you know someone ifyou are hired at EDS.” At the same time, “our retention rates over the last two yearshave steadily improved,” another source reports. “We do a better job of hiring lessand completing less workforce reductions, thus saving money on training and re-skilling employees.”

The firm maintains a database of more than 7,000 online training courses, and upuntil 2001 encouraged employees to attend conferences and off-site training courses.In 2002 the training budget has been slashed, and “All training is restricted to onlineWeb training at your desk.” (It used to be 40 hours per year of classroom work.) Andbecause that desk is usually at a client site, computer-based training can be tough toget around to: “[Online training is] very difficult to do when at work as the customerdoes not care to see us on their time in training. [You] can’t blame them.”

The EDS life

One of the benefits of working at EDS is the low amount of travel and work hoursrelative to the industry. Hours for our sources average 50 per week, with only theoccasional Saturday. And once employees are staffed at a client site, they rarely



L I B R A R Y

travel from it, especially at a time when “all nonessential travel is not allowed andoff-site client meetings have been halted.”

Compensation, we hear, could be better, and bonuses have been frozen for 2002.Bonuses, when they are given, are divided up according to a company-calculatedranking system. As one source tells us, “If you are ranked in the top 10 percent, youwill receive a salary increase review, which is not a guarantee of an increase, every12 months. If you are in the bottom 10 percent, you will not get an increase but youwill be provided the benefit of a salary discussion with your direct manager. If youare in the middle 80 percent, you will receive a salary review — again, not aguarantee of an increase — every 15 to 18 months.”

Benefits, on the other hand, are some of the most expansive in the industry, and areparticularly thorough for working mothers. They include adoption assistance andreimbursement, mothers’ rooms, elder care support, health care reimbursementaccounts, free legal consultation and flexible work hours (for certain positions).Other benefits include discounts on GM vehicles, relocation services, home mortgagesupport, moving support, personal pension accounts and support for patent/whitepaper creations. And we hear that, at least at EDS headquarters in Plano, the facilitiesare particularly nice, with three cafeterias complete with Krispy Kreme andStarbucks vendors, “along with Aramark providing the largest variety of mealservices I have ever seen.” Outdoors there are “ponds, trees and well-manicuredlandscaping throughout the several-hundred-acre campus.”

Career opportunities

One EDS source remarks that “with over 140,000 employees in [more than 55]countries and in eight industries, you can do just about any job you want at EDS.”And she means this literally — the Career Mobility Program allows EDS employeesto seek other jobs within the company after 18 months in a position. “You mayinterview for internal postings,” one source explains, “and your current managerdoesn’t have to know until you are hired by another manager. You don’t have toleave the company to work in a different organization if your manager didn’t supportyour move. He or she doesn’t have a say in it after 18 months.”


EDS commits itself to volunteer work through its Corporate Community AffairsCouncil, which receives a yearly budget to disburse funds to various charity and



nonprofit groups. The firm also maintains a list of employees willing to help withand/or coordinate projects. According to one source, “We track our volunteer timeamong employees, and the more local volunteering, the more money that goes tothose communities from corporate.”

Good job on diversity

EDS does a good job at promoting diversity in the workplace; not only are there a lotof women and minorities, but they reportedly are promoted as easily as white males,even up to the management levels — in fact, a woman even heads the newly formedSolutions Consulting unit. One respondent tells Vault, “I have worked for somereally great women with enormous potential and seen them move on to bigger and betterthings,” and another reports noticing “lots of women managers in the last five years.”

As for minorities, one insider says, “There is a lot of diversity in my workplace. Thecompany is global and has a lot of potential for any person, regardless of religion,race, color or creed.” Another adds, “We have extensive diversity tracking forapplicants and senior positions. We are proactive in hiring women and minorities.”EDS provides benefits for same-sex partners, and the firm supports local gay andlesbian group meetings at various locations. The firm also has a number of “peoplethat are in management and non-management positions that are gay and lesbian.”



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200 State Street14th FloorBoston, MA 02109Phone: (617) 478-2550Fax: (617) 478-2555www.parthenon.com

LOCATIONS Boston, MA (HQ)San Francisco, CALondon

PRACTICE AREASPrincipal Investing Strategy Consulting

THE STATS

Employer Type: Private Company CEO: Bill Achtmeyer2001 Employees: 1502000 Employees: 150

UPPERS

• Happily hiring• Community-minded

DOWNERS

• Very small firm• Narrow recruitment from only a

few select schools

KEY COMPETITORS

Bain & CompanyBoston Consulting GroupMcKinsey & CompanyOliver, Wyman & Company

EMPLOYMENT CONTACT

[email protected]

The Parthenon GroupV A U L T


20


• “Young and happening”• “Not quite top-tier”• “Ivy League-full”• “High compensation”

THE SCOOP

Small is beautiful

Since its 1991 founding by two ex-Bain consultants, Bill Achtmeyer and JohnRutherford, The Parthenon Group has grown rapidly — about 30 percent a year. Thecompany intentionally has remained on the small side, with 150 consultants in threeoffices (in Boston, London and San Francisco). Despite fierce competition frommuch larger strategy firms, mighty mite Parthenon has amassed an impressive clientlist that includes Microcom, Pepsi, Ocean Spray, Starwood, Thomson, MadisonSquare Garden and American Express, though, like many other small firms,Parthenon also advises smaller entrepreneurial enterprises.

Cashing in

Parthenon is one of the few consulting firms willing to put its money where its mouthis. Through an innovative equity incentive program, the firm encourages itsexecutives to buy shares of its client companies, putting consultants in the sameposition as their clients’ senior management and fostering commitment and anentrepreneurial environment. It has also netted consultants between 50 and 100percent more than they would have earned with a traditional compensation package.

Caring for the community

Parthenon claims that 90 percent of its assignments are at the CEO level, but big-name, high-level clients aren’t the only file in Parthenon’s cabinet. The firm alsocommits a substantial amount of effort to community-oriented projects, whether thatmeans pro bono consulting for nonprofit groups, investments in arts and education orparticipation in Habitat for Humanity projects. Reflecting his firm’s “lead byexample” philosophy, CEO Achtmeyer chairs the Massachusetts Society for thePrevention of Cruelty to Children. Parthenon’s Charitable Contributions Committeedirects its philanthropic activities.

Spinning off

In 1998 Parthenon spun off its successful due diligence practice, Investor GroupServices, which had been in operation since 1992. Now the two firms cooperate ona number of projects, with IGS providing the in-depth research to companies looking

Vault Guide to the Top 50 Consulting FirmsThe Parthenon Group


L I B R A R Y

to make major investments and Parthenon providing the management advice toimplement those investments.

Debut fund

Founded in 1998, the Parthenon Capital fund began with a target of $250 million andclosed at $350 million. The fund has drawn interest from industry spectators becauseits strategy and portfolio of companies depend upon management consulting. Notsurprisingly, The Parthenon Group and Parthenon Capital work collaboratively, theformer providing clients with operational advice and the latter their financialresources. Following Parthenon Capital’s initial June 1999 investments in a staffingcompany and a children’s clothing company, the firm opened a second fund —Parthenon Capital II — with $650 million. Together, the funds have invested in eightfirms to date.

Fine-tuning the staff

Parthenon has a number of continuing education programs for its associates. “BestDemonstrated Practices” luncheons are held throughout the year and examineanalytical tools and presentation, management and feedback skills. At the end ofeach project, both junior and senior members of the case team submit evaluations.The firm also provides an end-of-the-year evaluation, including both upward anddownward feedback, to facilitate professional development.

Associates are paired with a mentor who helps them establish and meet career-development goals. For new associates, training begins during the first six weeks atthe firm and covers everything from office practices to basic tasks and analytical andmodeling skills. Additional on-site half- and full-day sessions include GMAT prepclasses and MBA application assistance.

Later, new associates are run through in-depth business training sessions in whichParthenon principals teach them the tools and concepts of consulting. The firm alsosends associates to classes with Harvard Business School and Tuck School ofBusiness professors. Their training culminates with casework that combines theclassroom lessons with teamwork exercises. Parthenon will pay business schoolcosts for associates who choose to return to the firm after pursuing an MBA.



GETTING HIRED

Like all consulting firms, Parthenon seeks individuals with superior intellectual andinterpersonal skills, although it emphasizes the importance of a friendly personalityto boot. It focuses its recruiting at a select number of top undergraduate and businessschools. Parthenon looks to undergraduates and pre-MBA professionals as associatecandidates, while MBA students join as principals. About 10 to 15 MBA studentshave the opportunity to join the Parthenon team via a 10-week summer program, andthere is a similar program for undergraduates.

Parthenon’s interview process consists of two rounds, with two or three 45-minuteinterviews each. Candidates can expect the standard set of questions, with case,brainteaser and personality questions making up the bulk of the discussion.



L I B R A R Y



350 Park Avenue30th FloorNew York, NY 10022Phone: (212) 651-9660Fax: (212) 756-8750www.rolandberger.com

LOCATIONS Munich, Germany (HQ)New York, NY (U.S. HQ)32 offices worldwide

PRACTICE AREASCorporate StrategyIT/E-BusinessM&AMarketing/SalesOperations StrategyOrganization/HR ManagementRestructuring

THE STATS

Employer Type: Private Company CEO: Roland Berger2001 Employees: 1,6502000 Employees: 1,6002001 Revenues: $448.3 million2000 Revenues: $379.8 million

UPPERS

• Good compensation• International opportunities

DOWNERS

• Low brand recognition in the U.S.• Still making cultural adjustments

KEY COMPETITORS

A.T. KearneyBain & CompanyBoston Consulting GroupMcKinsey & Company

EMPLOYMENT CONTACT

[email protected]

Roland Berger Strategy Consultants

V A U L T


21


• “Solid strategy work”• “In Germany fine — outside

Germany nothing”• “The German McKinsey”• “Tough environment”

THE SCOOP

The big boy on the Continent

With 1,170 consultants in 22 countries, Roland Berger Strategy Consultants is thelargest consultancy of European origin. Having almost tripled its revenue since1995, the firm is engaged in an aggressive U.S. expansion plan, opening a new SanFrancisco office in March 2001 to complement its offices in Detroit and New YorkCity. Indeed, for the last three years Munich-based Roland Berger has been growingat more than double the consulting industry’s 7 percent average annual rate.

The firm concentrates its efforts in a small number of industries, includingautomotive (hence the Detroit office), high tech, telecom, pharmaceutical,transportation and insurance, and counts such esteemed firms as DaimlerChryslerand the German utility giant e.on, as well as a number of Silicon Valley startups,among its clientele.

The über-consultant

Roland Berger, a German businessman and former consultant at The BostonConsulting Group, founded his eponymous firm in 1967. Since then he has leveragedhis success in the consulting world to become one of Germany’s most powerfulpublic figures and a confidant of both left- and right-wing governments (he evenrefers to German Chancellor Gerhard Schroeder with the informal “du,” rather thanthe formal “Sie”). He sits on a number of corporate boards and was invited to serveas Schroeder’s finance minister (he turned it down). Berger’s personal influence isso widespread that, despite his firm’s success, when Germans hear “Roland Berger”they reportedly still think of the consultant, rather than the consultancy.

Buying its own freedom

Until 1998 Deutsche Bank, Germany’s largest money manager, owned a 95 percentstake in Roland Berger, which it had held since 1987. However, thanks to twomanagement buyouts in July 1998 and June 2000, Deutsche Bank no longer holdsany part of the firm; today it is wholly owned by its 130 partners and associatepartners. Since the first buyout the firm has grown rapidly, particularly in its foreignoperations — from 1999 to 2001, its North American business grew 76 percent, itsAsian business grew 68 percent and its Western European business grew 30 percent.

Vault Guide to the Top 50 Consulting FirmsRoland Berger Strategy Consultants


L I B R A R Y

Public sector consulting

Given that Germany’s public sector accounts for 47 percent of its GDP, it’s nosurprise that Roland Berger is deeply involved in consulting for the Germangovernment. Berger himself is a strong advocate of privatizing at least 10 percent ofthe German economy, and the firm has been involved in the privatization of a numberof local, state and federal utilities and services. It has also set aside part of its publicservices knowledge center to advise German states on how to run their publicservices more efficiently, what it terms “an approach to holistic transformation thatfocuses on new visions and priorities, redesigned business processes andorganizational structures, and new incentive and controlling systems.”

Brainy industry experts

Over 50 percent of Roland Berger’s consultants are trained as engineers, naturalscientists or doctors. And while only 10 percent of its consultants have MBAs, a full20 percent have PhDs. Roland Berger has affiliations with a number of Europeanbusiness schools, and there are endowed Roland Berger chairs at INSEAD andMunich’s Technische Üniversitat.

The firm is organized into so-called Functional and Industry Competency Centers,and consultant teams cross the two in order to offer optimal client solutions.Currently, 17 percent of the firm’s revenue is derived from the high-tech industry andan additional 14 percent from its InfoCom (telecom) practice, with consumer goodsand retail weighing in at 14 percent of revenue.

Happy clients

A key to Roland Berger’s success is its client retention rate — 78 percent of its 2001clients were repeat customers, and on average clients rate their satisfaction a 15 outof 16 in the firm’s internal Happy Customer Index questionnaire. The firm even hasa clever name for its approach to clients: proCLIENT, an acronym for “competence,leverage, implementation, experience, network and target.”

New economy co-operations

In July 2000, Roland Berger purchased 10 percent of BMP AG, another Germanbusiness consultancy, combining BMP’s venture capital activities with RolandBerger’s strategy practice. Roland Berger has also set up a turnaround fund of €100million to be used to acquire companies in need of rehabilitation in order to profit



from their sale. This is all in conjunction with the firm’s “Roland Berger 2005”strategy, aimed at distinguishing the firm as a leading resource in what it terms “thenetwork economy.”

GETTING HIRED

Because of continued growth, Roland Berger says its “hiring need is almostunrestricted in our offices worldwide,” and applicants are interviewed on a cyclicalbasis throughout the year. The firm is international to the core, and it expects itsapplicants to be as well. Though the official language of Roland Berger is English,a working knowledge of another European language is a big help. And the firm looksfor people who have had at least some experience abroad, whether that be studyingor completing an internship.

Roland Berger interviews at top schools around the world, though it encourageshopefuls to complete its online application first. It then selects a number ofapplicants to interview on campus. Those who make the cut are invited to join a“Super Saturday” recruiting event, a half-day event (for U.S. offices) in whichapplicants go through four 45-minute interviews — a personality/fit interview, aninteractive case and a two-part case-presentation interview. As one consultant tellsVault, “We consider [the case presentation] a better simulation of what consultantsface on a daily basis — [where you have] some time to prepare before you submityour analysis — than off-the-cuff responses, which are necessarily less in-depthanalytically.” Another insider reveals that “besides competence and intellectualskills, personality and adaptability heavily count to make the whole team, includingthe newcomer, happy!”

For European offices, Super Saturday is a grueling 10-hour affair in which applicantsgo through multiple interviews and are presented with a number of case andpresentation assignments. The day breaks down into four modules: The first iscomposed of a 50-minute personality interview and two 50-minute cases, the secondis a 45-minute analytical test, the third is a 60-minute team case preparation, and thefourth is a presentation of that case with your team. The European offices don’t messaround, either — at the end of the day interviewers meet to discuss the candidates (wehear the cases and the personal interview are the most important factors), and extendoffers that same evening.



L I B R A R Y

MBAs and experienced hires go through much the same process, though moreindividualized. At the recruitment day, applicants can expect three first-roundinterviews (one personality and two professional interviews) in the morning. Duringlunch, the interviewers meet to decide whether to continue; if so, the afternooncomprises three modules of 45 minutes each: case-study preparation, case-studypresentation and a professional skills interview. Applicants are expected to use suchsupport materials as transparencies and flip charts, which are provided. At the end ofthe day, the interviewers meet one last time to decide whether to extend an offer.

OUR SURVEY SAYS

A global culture

Insiders characterize Roland Berger as a “non-hierarchical” culture that is“entrepreneurial, but with structure.” An international firm, Roland Bergernevertheless puts a strong emphasis on corporate culture through a high level of“collaboration across offices, competence centers and regions.” As one respondentputs it, “There exist no internal ‘domains’ that are protected, since the success of thefirm directly translates into the compensation of the management — we all win or noone wins.” At the same time, employees note that as the firm transitions from aGermany-focused operation to an international company, the inevitable culture clashcan make getting along a little harder than it normally would be. “This is a work inprocess,” says one source. “The hours can be long, and there are cultural adjustmentsworking for a Germany-based firm,” adds another consultant.

Partly to guard against flooding the ranks with too many divergent attitudes, sourcestell us Roland Berger is extremely selective in its hiring, not only in terms ofcompetency, but in fit as well. “We are not a firm that is hiring ‘bodies’ in order togrow in numbers,” says one Bergermeister. “We expect individuals that are not onlyhigh in caliber, but who also demonstrate an entrepreneurial spirit and the ability toface difficult challenges without faltering.” And while Roland Berger looks forintelligence above all else, in reality it “prefers a balance of academia with practicalwork experience.”

Across the board, Roland Berger consultants report extremely long work hours,though much of that work appears to be self-motivated. As one go-getter comments,success “means taking the initiative upon yourself to establish new tools andpenetrate new clients. No one said that consulting was easy.” And, at least in the



firm’s U.S. operations, one insider says a big downer can be “the hours you spend ifyou are really dedicated to making this firm a success within the United States.”Another reports the amount of work has employees “dreaming in charts.”

At the same time, weekend work, at least Stateside, is rare. Ultimately, the workload“really depends upon the projects — right now we are quite busy, with more andmore rolling in — but 2001 was slow for us.” Travel can also be extensive. Thefirm’s client-centric approach means logging a lot of frequent flyer miles: “WithinRoland Berger, there are no cookie-cutter solutions — each client is a new challengewith a new methodology and a new solution,” contends a Berger insider.

A little something in return

In return for their hard work, Roland Berger employees get a healthy compensationpackage — competitive salaries, a full spectrum of office amenities and a robustinsurance plan. (Though there was a freeze on raises for all of 2001, this “isloosening in 2002.”) And, making use of its international scope, the firm offers aninternational exchange program, “permitting employees to rotate internationally forvaried periods of time. Short-term central staffing permits employees to workelsewhere in the world on a project-specific basis.” In addition to the personal perks,we hear the facilities at Roland Berger are great; the New York office is “thepenthouse suite, with very lofty ceilings, well laid-out and airy.” The firm alsooperates a number of support systems to help get the job done easier, providing suchservices as graphics and editing, translating and even in-house IT consulting.

Tools of the trade

Roland Berger relies on both off-site and on-the-job training for its employeedevelopment. All new hires participate in a two-week kickoff event, held “at a venuechosen from a number of attractive European locations.” There, new consultantslearn the basics of their industry and network among their peers. Afterward, each isassigned a mentor, who guides them through the beginning of their time with the firmand makes sure they learn about Roland Berger’s continuing education opportunities.“Off-site training is encouraged and provided throughout the year,” one sourcereports. “But on-the-job training as you are attempting to face a new client challengeis usually more fun anyway.” The firm also offers PhD and MBA programs run incoordination with leading European business schools, enabling employees to worktoward advanced degrees without having to leave their jobs.



L I B R A R Y

Branching out

Gender diversity is an issue that has only recently come to the forefront at RolandBerger. The firm’s approach has always been evenhanded (as one consultant puts it,“There is absolutely no discrimination of any sort within the firm — instead,individual performance is what will set you apart from your colleagues”).Nevertheless, we hear that Roland Berger is paying increasing attention to therepresentation of women at the firm. “The culture is adjusting and learning,” onesource tells Vault. “The U.S. [office] is one of the leaders in expanding the firms’awareness of female diversity.”





“There are culturaladjustments working for a

Germany-based firm.”

— Roland Berger insider


L I B R A R Y


28 State Street16th FloorBoston, MA 02109Phone: (617) 951-9500Fax: (617) [email protected]

LOCATIONS London, UK (World HQ)Boston, MA (U.S. HQ)15 offices worldwide

PRACTICE AREASBusiness Strategy DevelopmentMerger and Acquisition SupportShareholder Value Consulting

THE STATS

Employer Type: Private CompanyChairman: Iain EvansPresident, North America:Marc Kozin2001 Employees: 5002000 Employees: 4502000 Revenue: $125 million

UPPERS

• Good social life • Excellent training• Progressive firm

DOWNERS

• Relatively low pay• Few perks

KEY COMPETITORS

Bain & CompanyBoston Consulting GroupMarakon AssociatesMcKinsey & Company

EMPLOYMENT CONTACT

[email protected]

L.E.K. ConsultingV A U L T


22


• “Focused and smart”• “Work your ass off”• “Valuation jocks”• “Boutique of boring old

Englishmen”

THE SCOOP

Growing and changing

L.E.K. Consulting has expanded from a high-end boutique founded by three ex-Bainand Company partners to one of the world’s leading strategy consultancies. Startedin London in 1983, today the firm has more than 500 employees in 15 offices spreadthroughout Europe, North America, Australia and the Pacific Rim. L.E.K. derives 90percent of its business from repeat clientele or client referrals.

In 1993 the firm, then known as the LEK Partnership, merged its U.S. operation withanother consultancy, The Alcar Group, creating LEK/Alcar, later to be known asL.E.K. Consulting. Always seeking to boost its image and name recognition, L.E.K.has improved its marketing with efforts such as a self-branding study, which led tothe adoption of a consistent worldwide name and logo, a comprehensive webpresence and the addition of periods in “L.E.K.” (“We didn’t want to be called ‘lek,’”quips one executive.)

The royal troika of business lines

L.E.K.’s work is split along three business lines. The business strategy practice,which accounts for about 40 percent of the firm’s work, assists management indeveloping high-level corporate and business strategies. Another 35 percent of thefirm’s workload is dedicated to its mergers and acquisitions practice. In this capacityL.E.K. performs several services, including acquisition strategy, acquisitionscreening, target due diligence and post-acquisition planning for both strategic andfinancial buyers. L.E.K. has been a player in more than 500 M&A transactions since1996, with a total value of more than $300 billion. L.E.K.’s third area of expertise isshareholder value analysis, representing approximately 25 percent of the firm’sbusiness. L.E.K.’s approach — founded on the principle that cash flow drives value— helps executives understand investor expectations, develop value-based corporateand business unit strategies, allocate capital, and measure and reward performance.

Across these three business lines, areas of industry expertise include the life sciences(biotechnology, pharmaceuticals, medical devices, etc.), chemicals, construction,energy, high technology, media and entertainment, telecommunications, and utilities.Nevertheless, L.E.K. prides itself on being a firm of strategy experts, not industryexperts, and places a premium on associates’ ability to adapt, rather than their abilityto absorb knowledge of a given industry.

Vault Guide to the Top 50 Consulting FirmsL.E.K. Consulting


L I B R A R Y

The Boston/London axis

More than half of all L.E.K. consultants are based in its Boston and London offices.The firm is known to be unusually flexible in its international assignments, andemployees can switch easily between offices for either short-term “swaps” orpermanent transfers, depending their on preference. The firm does not require itsconsultants to specialize in a particular practice area, though generally they gravitatetoward two or three preferred industries. L.E.K. consultants (those with MBAs oradvanced degrees) travel frequently, but perhaps not as much as the industrystandard. And the trips they make tend to be short in duration (on average one dayper workweek) with associates traveling even less. Associates typically return tograduate school, while consultants — those with MBAs or advanced degrees — canexpect to be promoted to the managerial level within two to three years.

It’s all about image

L.E.K. has a reputation for working on the nuts-and-bolts, number-crunching level ofa case, a fact it likes to emphasize when trying to differentiate itself from thecompetition. The company is also flexible and sensitive to clients’ time requirements— L.E.K. averages significantly less time per assignment than other firms. Toenhance the firm’s intellectual property and responsiveness to market needs, L.E.K.has established an advisory board of 10 renowned professionals from the academicand business worlds.

Extracurricular activities

L.E.K. distributes a quarterly publication, Shareholder Value Insights, written by VPsat the firm. It also collaborates with The Wall Street Journal on the annualShareholder Scoreboard, a unique periodical that ranks companies by shareholderreturns. L.E.K. produces similar publications with The Australian and The NationalBusiness Review of New Zealand. It was also a major sponsor of the winning yachtin the BT Global Challenge 2000/2001 (the boat, the LG Flatron, completed the racein June 2001).

Pushing out at the seams

The last few years have seen L.E.K. expand considerably In 2000 the firm openedan office in San Francisco, its fourth in North America. Also that year it mergedAlliance Asia Pacific, a Beijing-based affiliate, into its global partnership. AAP’s



offices work with L.E.K.’s Bangkok and Singapore offices to offer services throughoutChina and Taiwan. The firm says it plans continued expansion in the future.

Meetings of the minds

L.E.K. Consulting emphasizes the day-to-day involvement of its 68 senior partners,who spend about 70 percent of their time in daily contact with the rest of the firm.L.E.K. also promotes senior and junior staff interaction through regular professionaldevelopment sessions that cover analytical concepts, management techniques andproject reviews. An open-door policy at L.E.K. encourages the sharing of ideas andalso fosters mentor relationships between associates and consultants. (These mentorsprovide career support and guidance, as well as a forum for discussing “non-casework issues.”)

GETTING HIRED

As with many top consulting firms, getting a foot in the door at L.E.K. has gottensignificantly more difficult over the last few years. Thanks to the downturn in theeconomy and the drop in dot-com business, L.E.K. and others can afford to beextremely picky about who gets hired; one source tells us that “it’s incrediblycompetitive, especially in the current economic environment. We still had a fullrecruiting effort last season, but since many other firms scaled back recruiting, wewere able to be extremely selective.”

L.E.K. consultants report that personality fit is more important than a flashy resume.“We have a work culture that is cherished, and we are keen to maintain that by hiringpeople that fit into our approach to work,” says one. “The resume won’t dictate theoffer,” adds another. “People would be surprised to learn how much a strong interestin L.E.K. will do for their chances. If you really follow up and show that you’reinterested in the company, you will be automatically looked at more closely, even ifyour resume is a step below the top.”

L.E.K. hires recent college graduates for its associate positions and MBAs for itsconsultant positions, though it’s not uncommon for associates to move intoconsultant spots without an advanced degree. The firm interviews on campus at anumber of top-20 schools and accepts resumes by e-mail. Some quantitative orbusiness training is helpful, but there are many at L.E.K. who, prior to arriving at thefirm, hadn’t dealt with numbers since freshman econ.



L I B R A R Y

There are three rounds of interviews at L.E.K. The first two are on campus andinvolve two or three interviews with consultants (in the first round) and managers (inthe second round). Expect a mix of case questions and fit discussions, but alsoguesstimate problems (“How many staples are sold in Kentucky each year?”). Thethird round, held at an L.E.K. office, consists of three meetings with seniormanagement; we’re told that “Usually in this round, one of the three is designated theperson more responsible for ‘fit with the firm,’ and the other two are more focusedon case questions.”

For detailed job descriptions, visit the “[email protected].” section of the firm’s website. Applicants may mail, e-mail or fax resumes to the recruiting coordinator at theU.S. or international office of their preference.

OUR SURVEY SAYS

In the family

“Like a family” isn’t a phrase you expect to hear describing a consulting firm, butthat’s exactly what many respondents have to say about L.E.K. “People are friendly,are willing to help and see each other as teammates, not competitors for apromotion,” one source tells us. (Apparently, L.E.K. is actually more functional thanmost real families.) Socializing outside the office is a big part of the life at L.E.K.;another respondent says that “on any given weekend, there will 95 percent of the timebe some sort of gathering going on that involves a large part of the associate, andoften even the consultant class.”

And while a number of respondents say that “the partners often seem a bit distant,”they also praise the strong spirit of teamwork at L.E.K. They describe the typicalconsultant as “friendly and quirky.” As one put it, “People at L.E.K. word hard. Youwill never hear ‘I can’t’- or ‘that’s not in my job description’-type comments here.And when I say ‘work hard,’ I don’t mean plugging away at the same task over andover and over. Working hard at L.E.K. means figuring it out.”

Staying close to home

Employees are also very happy with the minimal amount of travel involved withL.E.K. projects. “This is probably the number one reason why I chose L.E.K.,” onerespondent tells Vault. “No traveling to clients within your first two years.” “This is



a good thing,” says another, “as I think the novelty of frequent-flier miles and nicehotels quickly wears off.”

Hours at L.E.K. aren’t bad, either. “I can’t complain,” says one source. “I thinkthey’ve been better than the hours for many [of my] friends in consulting, anddefinitely better than the hours for friends in banking. I’ve probably averaged 55hours a week for the last several months.” L.E.K. keeps weekend work to aminimum, with one insider telling us, “I’ve done it two years,” and during that time,“I’ve only worked two weekends.” Others, though, tell us that the hours can varygreatly depending on the partner managing a project. “Some partners are notoriousfor needlessly boiling the ocean,” one reports, while “others are concise, work smartand get you out without pointless hours.”

To perk or not to perk

L.E.K. is not the place to go if you want full-service perks. “Occasionally the firmdoes things that seem pretty cheap to the junior staff members,” one source reports.“We are one of the few consulting firms where everyone flies economy all the time.”Another adds that there are “often inconsistencies in perks from office to office andperson to person, which results in some frustration and perception of bias.” And theoffices, while “aesthetically pleasing,” are “not luxurious enough to make me wonderhow much of my potential pay goes towards décor.” But many respondents say theydon’t mind L.E.K.’s no-nonsense approach to its employees. “I’d rather beeconomical with useless frills and get a relatively fatter profit share,” says one.

While the company reportedly does pay well, with profit-sharing plans and amplebonuses, one senior associate has this to say about L.E.K.’s compensation plan:“Don’t come to L.E.K. for the money. It is a great firm in many ways. But pay isprobably the area where L.E.K. is least competitive. In profitable years, profitsharing can help close the gap with other firms. But I don’t think L.E.K. pays as wellas other top strategy firms.” At the same time, L.E.K.’s moves to cut back on payincreases in recent years is in part a tradeoff with its commitment to avoid layoffs;sources in the firm’s Sydney office report that while 2002 raises have been frozen, noone has been laid off in the last 12 months.

Constant training

L.E.K. “trains like mad,” insiders tell us. The firm requires all employees to attendat least four hours of professional development training a month, usually focusing onthe latest statistical techniques and software applications. In one source’s opinion,



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“Associates at L.E.K. get exposure and experience with far more sophisticatedanalysis than counterparts elsewhere.” The firm also has a library of educationalmodules, covering everything from how to approach prospective clients to how toimplement advanced financial models. “Professional development is taken veryseriously,” one L.E.K.er reports, “because they don’t want people in the position tonot be able to handle the work.”

Changing faces

Though the consulting industry’s effort to diversify its ranks over the last decadehave yielded varying results, L.E.K. has been more successful than most. Much ofthe senior management is made up of white males, but the rank and file is almostevenly split between men and women, with a growing number of minorities. Onewoman consultant characterizes the firm as “definitely not an old boys’ club. Thetypical L.E.K.er is not a white male business major.” She adds that “In Boston,women make up half the associates, a third of the consultants, two out of sevenmanagers and one of the [vice presidents].”

L.E.K. is a progressive firm on issues of sexual orientation as well. Insiders say that“People at L.E.K. are extremely open-minded; for example, at any L.E.K. gatheringyou expect to see significant others, and are upset if they’re not there, regardless ofwhether the relationship is heterosexual or same-sex. You want to see them becausechances are you’re friends with them as well, through your co-worker.”




“People at L.E.K. areextremely open-minded”

— L.E.K. consultant


L I B R A R Y


Suite 3000John Hancock Center875 N. Michigan AvenueChicago, IL 60611Phone: (312) 255-5000Fax: (312) [email protected]

LOCATIONS Chicago, IL (HQ)12 offices worldwide

PRACTICE AREASExecutionStrategyTechnology

THE STATS

Employer Type: Public CompanyStock Symbol: DTPIStock Exchange: NasdaqChairman and CEO: Mel Bergstein2001 Employees: 1,1412000 Employees: 1,0632002 Revenues: $203.0 million2001 Revenues: $307.4 million

UPPERS

• Choice in home base• “Phenomenal” internship program

DOWNERS

• Culture in flux• Iffy training

KEY COMPETITORS

AccentureBooz Allen HamiltonBoston Consulting GroupMcKinsey & CompanySapient Corporation

EMPLOYMENT CONTACT

www.diamondcluster.com/careers

DiamondClusterInternational

V A U L T


23


• “Cool projects”• “Questionable business model”• “Lots of potential”• “Where are they now?”

THE SCOOP

Shine on you crazy Diamond

DiamondCluster International is a management consulting firm based in Chicago andone of the nation’s few publicly traded consultancies. It got its start in November2000 after Diamond Technology Partners, founded in 1994, merged with Europeanfirm Cluster Consulting, founded in 1993, in a deal worth $930 million. The firmhelps clients in the financial services, telecommunications, energy and health careindustries utilize technology-based strategies to improve their businesses. It is alsothe home of such notable consulting works as the 1998 bestseller Unleashing theKiller App and the critically acclaimed business journal Context.

Raising intellectual capital

Recently, DiamondCluster has established a number of study centers and jointventures devoted to researching various aspects of the high-tech industry. Oneexample is the DiamondCluster Knowledge Center (KC), which offers online toolsand a support help desk to assist the firm’s consultants with their work. The FieldLeader program, run through the KC, engages cross-global teams to pull together thefirm’s intellectual capital and develop methods of delivery. In September 2001, thefirm opened the Chicago-based Center for Technology Innovation, a conceptuallaboratory where the company develops ways to help clients better integrate high-tech methodologies. DiamondCluster also operates the Center for MarketLeadership, based in Boston, which examines the drivers behind market dominance.And in March 2002, it announced the first round of funding for DevLab One, a jointventure with Motorola and Northwestern University’s Information TechnologyDevelopment Laboratory that will turn Northwestern-developed wireless solutionsinto market-ready products.

A really killer app

A key source of exposure for DiamondCluster is the renowned Unleashing the KillerApp, a bestseller by partner Chunka Mui and e-commerce expert Larry Downes. Thebook exhorts its readers toward seemingly counterintuitive wisdom like “cannibalizeyour markets” and “give away as much information as you can.” In December 2000Mui was recognized by CIO magazine as one of the “Ten Masters of the NewEconomy.” Another publication is 2001’s The New Market Leaders: Who’s Winning

Vault Guide to the Top 50 Consulting FirmsDiamondCluster International


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and How in the Battle for Customers, by Fred Wiersema, a DiamondCluster fellowand renowned business strategist. The book, based on an analysis of 5,000 globalcompanies, describes the characteristics of market leadership. Most recently, HeidiMason, another DiamondCluster fellow, and Tim Rohner, a DiamondCluster partner,authored The Venture Imperative: A New Model for Corporation Innovation. Thebook, published in May 2002, offers a holistic perspective on issues surroundingcorporate venturing.

Context and content

DiamondCluster also publishes Context, a magazine which covers the role of e-commerce and other technology changes in business. Context won eight awards atthe magazine industry’s 2001 Celebration of Excellence Gala, and in 2000 theAmerican Society of Magazine Editors nominated it in the General Excellencecategory for its National Magazine Awards. Sold bimonthly, Context hasapproximately 45,000 readers.

Singing an e-business tune

During the dot-com boom, DiamondCluster (and, before November 2000, DiamondTechnology Partners) was going with the e-business flow — resulting in significantrevenue growth and increased business. Revenues for fiscal year 2001 were up 90percent over the previous year — to $259.3 million — thanks to a surge of newclients. In February 2000, the firm struck an alliance with the Big Three automakersto combine their B2B exchange initiatives into one online marketplace. And in April2000 the firm teamed with Morgan Stanley Dean Witter and Sligon Holdings to starta new company, Packtion, a B2B marketplace for the global packaging industry.

Diamond in the rough

By 2001, however, DiamondCluster was beginning to feel the pain of the economicslowdown, combined with the popping of the dot-com bubble — a significant area ofits revenue. In early 2001 it announced a staff-wide 10 percent pay cut, withexecutives giving up an extra 5 percent. But that wasn’t enough; in March 2001DiamondCluster laid off 25 non-consultant employees, and in July the firmfurloughed 200 consultants — one-fifth of its total — for six months at 35 percent oftheir salaries, with benefits. Consultants were also given the opportunity of taking aseverance package, which a number of them accepted. In October 2001,DiamondCluster extended the furloughs for another six months and reduced



compensation for furloughed employees in North America to 25 percent. Thecompany also withdrew most of the outstanding job offers it had made to graduatingcollege seniors. In January 2002 CEO Mel Bergstein announced that another 50 to75 consultants might be furloughed later in 2002, but the move was never made.Shortly before the time of this writing DiamondCluster announced that it would bringall furloughed employees back into the fold by the end of the summer of 2002.

Aside from the drop in the market, a number of internal factors were said to haveexacerbated the company’s plight, including overstaffing, residual difficulties fromthe merger and poor implementation of DCI’s strategy practice. Nevertheless,DiamondCluster has been lauded for its employee-friendly approach to the economicdownturn, putting off staff reductions as long as possible, even at the expense of profits.

GETTING HIRED

As a firm that combines technical know-how with management strategy,DiamondCluster looks for a very specific mix of skills. “DiamondCluster is a uniqueplace and not everyone fits,” one source reports. “You have to be comfortable withtechnology as well as strategy.” And though more than a few say that it is not asselective as other top firms, “People usually have more going for them than just brains.”

(No) thanks to the decline in the economy, DiamondCluster has cut back significantlyon recruiting for 2002. “Our selectivity in hiring and retention has increaseddramatically as times have gotten more difficult,” says one DCI employee. Severalsources report that the firm “lowered the bar in the 2000-2001 recruiting seasons toaccommodate for the need for additional headcount,” and that it is using the currentdrop in recruiting to make up for the influx. But recruiting is contingent on the firm’sfinancial performance, and a sudden uptick in demand could quickly bringDiamondCluster back to previous hiring levels.

The firm operates a two-stage campus interview process. During the first round ofinterviews, applicants are assessed on their experience level and potential inleadership, as well as quantitative and communication skills, usually through onebehavioral interview and one case interview. Those who make it past the initialround are invited to a DCI office, where they interview with senior-level consultants.Candidates can expect a combination of behavioral and either business or technologycase interviews. Technical case questions “present a situation like an online kiosk



L I B R A R Y

system and then ask what needs to be considered, such as platform technologies,architecture choices and programming design decisions to use.”

OUR SURVEY SAYS

A firm in transition

For a firm that has experienced its share of turbulence over the last two years,DiamondCluster employees remain optimistic and loyal to their employer. In thewords of one employee, “The impact of the slowdown and resulting furloughprogram have had some impact on the overall culture of the firm — but in generalthe people of DCI are smart, hardworking and fun. Not a bad combination to createa good working environment.” DCIers praise their firm for its commitment to avoidinglayoffs and a “spread the pain” attitude that distributed pay cuts across the board.

DiamondCluster also still is managing the merger of Diamond and ClusterConsulting, an event that has at once created a more multicultural, vibrant companyand a firm coping with growing pains and culture shock. One DCIer says that thefirm has a “split personality,” where the “Cluster side is very southern European,more hierarchical,” while “the U.S. and Northern Europe sides are flatter.” But mostemployees are happy with the situation, reporting that the new firm is a “very openmultinational culture with a strong focus on fairness.”

Nevertheless, the DiamondCluster rank and file cite a number of frustrations.Predictably, many of these have to do with their work hours. Sources report a focuson face time and a “tendency to work more than is really necessary.” As anothercontact puts it, “Although expected in consulting, hours are way too long.Sometimes, it seems, for no good reason.”

The virtual firm

One benefit offered to North America-based employees is DiamondCluster’s “liveanywhere” policy. Although it requires weekly travel, the firm keeps to a 4-1(Monday-Thursday) policy, with “weekends as almost sacred time.” But with sucha compressed workweek, expect crushing hours: “An average of 60 to 70 hours perweek, with peaks of up to 100 hours per week.” One insider adds a note of caution,reporting that the 4-1 policy has been increasingly subject to the whims of the client,and that as a result “5-0 projects are becoming a norm.” Consultants who live in



major East Coast cities can expect to have at least some local projects, but those who“live on the West Coast should expect to travel a lot, as DiamondCluster’s core [U.S.-based] clients are all Midwest and East Coast.”

In order to stay more in touch with the firm and with one another, DiamondClusterconsultants traditionally have attended regular two-day firm-wide meetings, called“all-hands meetings.” These meetings have been suspended temporarily for financialreasons, but the firm expects that they will be brought back relatively soon. In themeantime, DiamondCluster has begun to hold individual office meetings as well asvirtual all-hands meetings where employees can watch the proceedings via webcast.

Spreading the pain

Even though it means slimmer wallets for everyone, respondents hailDiamondCluster’s efforts to “spread the pain” through across-the-board pay cuts(CEO Bergstein took home no cash at all in 2001). The firm also handed out stockoptions in the place of monetary compensation. As one respondent explains, “otherfirms have opted for significant layoffs to ensure compensation remains unaffected.We are not one of those firms. Therefore, against most of our competitors, ourcompensation lags significantly for the time being.” And the stock options are “notbad, if you believe in the firm’s future. With the share price so low, the options mightbe worth a lot in the future.” DiamondCluster also offers an almost unparalleledbenefits package, including unrestricted, zero co-pay health insurance, whichincludes dental and vision. Other perks include tuition reimbursement, an employeestock purchase plan, and maternity/paternity leave (benefits are also offered fordomestic partners).

To train or not to train

Employees give their lowest marks to the firm’s training program, which oneconsultant characterizes as “the weakest part of DiamondCluster.” While new hiresare run through a three-week orientation program, continual education ultimately isthe responsibility of the individual employee. The firm maintains a set of proprietarytraining modules, but, echoing the comments of many of his colleagues, one insidertells Vault that “I haven’t had training in two and a half years. I am always in projectsand never have time for training.” Nor is this a result of cutbacks; another sourcemaintains that “Even in good times, training options have been limited, especially foranalysts.” The firm counters, however, that it currently has more than 40 trainingsessions of two days or longer scheduled through the end of 2002. It also recently



L I B R A R Y

has rolled out a new training format offering a host of half-day, skill-specific learninglabs. Offered in all DCI offices, the labs are said to be useful and practical, and arealso an opportunity to interact and have fun with co-workers.

An international flavor

Thanks to the merger, DiamondCluster is one of the most thoroughly multiculturalconsultancies around. “We have 37 different nationalities in the company,” notes oneDCIer, “so about everybody belongs to a national minority.” And while the numberof minority employees in the United States is relatively low, insiders agree that thefirm has a very open, non-discriminatory environment. (However, one source adds,“Europe is less exemplary in this issue.”) Nor is DiamondCluster a “boisterous male-driven environment.” Although the firm is about three-quarters male, one womanconsultant says that it has “a very rich informal network” of female employees “thatI have found invaluable.”

The brass shines

DiamondCluster consultants generally are impressed with the treatment they receivefrom the higher-ups. “Every firm has its share of jerks, but the difference is thatDiamondCluster has less of them,” comments one insider. DiamondCluster has“little hierarchical BS,” and “It is not strange to find an analyst conversing verycasually with a partner over coffee.” Says one source, “The top executives havemasterfully woven respect for the individual into the fabric of the firm.” Addsanother, “I have always witnessed that the treatment towards someone is notdependent on seniority, but on knowledge, intelligence and attitude.” Many partnersare known to “go out of their way to create opportunities to allow the people on theirteam to learn and develop.” At the same time “they also push very hard and demanda lot,” explains an associate, “but they do it to bring you to the next level. As oneperson put it, we’ll bring you to the edge, maybe even dangle you over the edge —we want to push your limits so you can grow and improve.”

As the world interns

Full-time employees who began with the firm as interns unanimously rave about theirexperience. Interns are given “a significant section of the work” and “a variety ofresponsibilities” on real projects. Relates one source, “I worked on a large project inthe financial services area. [I was] treated as a full-time associate with the firm by



the team and the client.” Overall, lauds one consultant, “It was a great experienceand I would highly recommend it to anyone interested in consulting.”



L I B R A R Y



2100 E. Grand AvenueEl Segundo, CA 90245Phone: (310) 615-0311Fax: (310) [email protected]

LOCATIONS El Segundo, CA (HQ)700 offices worldwide

PRACTICE AREASApplications OutsourcingBusiness Process OutsourcingCredit ServicesCustomer Relationship ManagementEnterprise Application IntegrationEnterprise SolutionsHosting ServicesInformation SecurityIT Infrastructure OutsourcingKnowledge ManagementManagement ConsultingResearch ServicesSupply Chain Management

THE STATS

Employer Type: Public CompanyStock Exchange: NYSEStock Symbol: CSCCEO: Van B. Honeycutt2001 Employees: 67,0002000 Employees: 67,0002002 Revenues: $11.4 billion2001 Revenues: $10.5 billion

UPPERS

• Good professional developmentopportunities

• Creative and fun culture

DOWNERS

• Financial problems• Consulting business not top priority

KEY COMPETITORS

AccentureBooz Allen HamiltonDeloitte ConsultingElectronic Data SystemsIBM Global ServicesPwC Consulting (Monday)

EMPLOYMENT CONTACT

http://careers.csc.com/

Computer SciencesCorporation

V A U L T


24


• “Mainframe masters”• “Lost in the wilderness”• “Solid, not sexy”• “Constantly changing direction”

THE SCOOP

From baking to big time

Back in 1959, $100 went a long way, especially for Fletcher Jones and Roy Nutt.With that small amount they started Computer Sciences Corporation (CSC) in a smalloffice above a bakery, and soon earned a contract from Honeywell. Growing into thefirst computer services company to be listed on the New York Stock Exchange, CSCis now a global multibillion-dollar company recognized as a world leader inmanagement consulting, information systems consulting and integration, andoutsourcing. The company has identified two key factors for this success: dedicationto client satisfaction and an aggressive acquisition program. The CSC client rosterincludes both private companies — most notably in aerospace, chemical and energy,credit services, financial services and health care — and government entities, andboasts clients ranging from J.P. Morgan Chase to the U.S. Air Force to DuPont andAT&T. More than 75 percent of these clients are repeat customers, some withestablished relationships of over 30 years with CSC.

Down to business

CSC is no stranger to mergers and acquisitions. In February 1999 it acquired 51percent of CSA Holdings Ltd., one of the largest information technology servicescompanies in Asia. May 2000 saw the purchase of the information technology armof Australia’s largest resources group, Broken Hill Proprietary, for $43 million. CSCalso made moves in Europe, including the April 2000 purchase of Sweden’sCombitech Network AB and the May 2000 acquisition of IT Services Limited, aninformation technology services firm in the European energy, utility and health careindustries. On American soil, in December 2000 CSC acquired Mynd Corporation, afinancially struggling insurance software and services company. The firm stayed activein 2001, purchasing Softlab’s automotive software and services business from BMW inApril. CSC also found itself on the other side of an acquisition, selling its New Zealandoperations to Hewlett-Packard in November 2001 for an undisclosed amount.

Computer Sciences Corporation recently has shaken up its business in other ways aswell. In June 2001 it announced plans to expand in India, a process it began withthe aforementioned Mynd purchase (Mynd subsidiary Policy Management Systemswas based in India.) CSC expects to have 1,000 employees in the country by mid-2002. Back Stateside, that month the firm opened a 10,000 square-foot data center

Vault Guide to the Top 50 Consulting FirmsComputer Sciences Corporation


L I B R A R Y

in Houston. And in December 2001, CSC realigned its U.S. health care operations,rolling its health care consulting practice into its North American Consulting Group.

Recent struggles

In August 2000, just two months after landing a key $3 billion dollar contract withNortel Networks, CSC lost a bidding war with Electronic Data Systems to integratehundreds of Navy and Marine Corps computer networks into one system. Estimatedby government officials to be the largest contract ever given to a service firm, it gaveCSC’s competitor bragging rights and cash — with more than $7 billion of workstretched over five years.

The loss of that contract wasn’t CSC’s last bout of misfortune. In March 2001, thefirm was forced to lay off about 1 percent of its workforce, or somewhere between700 and 900 employees The firm continued to struggle through fiscal 2001 and into2002. Quarterly net income results were down sharply from the previous year, and2002 revenue forecasts were cut on more than one occasion. CSC has managed toincrease its revenue, but many industry analysts have suggested that the firm couldsecure more contracts if it pursued new business in a more aggressive manner.Others, according to The Asian Wall Street Journal, believe that the firm’s difficultiesare due in part to its failure to make management consulting (which earned CSC $3.6billion in 2001) as big a priority as IT services. Writes Consulting InformationServices founder Tom Rodenhauser, “Since consulting is not an A-1 priority at CSC,it’s no surprise to see revenues dwindle. Lurching back and forth through successiveconsulting managers and fractious infighting makes it increasingly difficult to seizeopportunities … even if they fall in your lap.” For his part, CSC chief executive VanHoneycutt asserts that the firm’s woes are simply the result of “going through abump,” and that its fortunes will turn around when demand increases through naturalmarket fluctuations.

Knowledgeable programs

CSC has developed several strategic offerings for its clients. CSC’s enticingly named“Corporate Knowledge Program” is comprised of several elements. CSC Sources isa global system for capturing and sharing the firm’s knowledge, solutions and bestpractices. CSC Catalyst is the company’s proprietary methodology for initiating,designing, implementing and managing change for its sizable clients.

Internally, CSC has established a series of extensive professional developmentprograms. More than 1,800 online computer-based training courses are offered



through the Technical Skills Currency Program. The Core Skills DevelopmentProgram has workshops in various core competencies, including writing,presentation, staffing and consulting skills. The list goes on to include OrientationSolution, for initial transition and orientation programs; the Key Role DevelopmentProgram, for essential competencies; the Catalyst Education Program, for educationabout assets that support the core business methodologies; and the PioneerCurriculum, for “holistic business change.”

Government work

Government contracts remain CSC’s bread and butter. Indeed, public sector clientsaccounted for 25 percent of the firm’s revenues in 2001. (Sixteen percent of its totalrevenues came from the U.S. Department of Defense alone; CSC’s latest engagementfor the department, an anti-cybercrime project contracted in December 2001, couldbe worth as much as $86 million.) In August 2001, Eagle Alliance, a joint venturebetween CSC and Logicon (Northrop Grumman’s IT services arm) won a contractwith the National Security Agency (NSA) worth a potential $5 billion. ThatDecember the firm signed a $229 million deal with the U.S. Department ofEducation. The firm stayed strong in the public sector in 2002, signing on (alongwith six other companies) to work on an information security program for the NSAand nabbing a seven-year, $31 million deal to implement a computer system for theU.S. Immigration and Naturalization Service. CSC does not restrict its governmentwork to the States, however — in June 2001 it won a $103 million outsourcingcontract with Australia’s Northern Territory Government.

Going commercial

No one-trick pony, CSC has a number of projects in the works for clients from theprivate sector. Recent CSC engagements include a $240 million outsourcingagreement with Schroders PLC and a $100 million deal with Children’s Hospital LosAngeles announced in June 2001; a five-year, $1.1 billion outsourcing contractextension with United Technologies beginning in November 2001; and a 10-year,$510 million contract with Gulfstream Aerospace Corporation, signed in January2002. The firm also won a $400 million contract with Global Crossing Ltd. inNovember 2001, but the deal was canceled three months later.



L I B R A R Y

GETTING HIRED

CSC travels to more than 100 college campuses each year; its visitation schedule canbe found on the firm’s CareerSource web site at careers.csc.com. (Note thatinterested persons must register with CSC prior to submitting their resumes.) Thefirm offers an assortment of tailored positions, including full-time, part-time, co-op,research and associate-level opportunities. The CSC web site also containsinformation on positions that are available outside of the recruiting circuit. Becausethe positions are as nonstandard and varied as CSC’s scope of technical andconsulting services, individual employment requirements vary. The site lists specificcontact addresses for each job and location.

Candidates for the U.K.-based graduate program may choose to move intoConsulting & Systems Integration, Application Services, Global InfrastructureServices, European Business Development, Professional Business Support or theFinancial Services Group.

OUR SURVEY SAYS

On the right track

CSC is “a good environment” and a “family organization,” according to employees.One insider points to the “levels of bureaucracy” at the company: “If you like bigcompanies, then you’re all set.” Another source attributes this to the “true” meaningof CSC: “‘Collection of Small Companies’ — with growth through acquisition, thetrouble is to amalgamate the multiple cultures.” However, the firm has implementedan operating model that streamlines this potentially cumbersome corporateinfrastructure for the benefit of clients and consultants. Since it’s “not very strong onmarketing,” CSC “likes to say it’s the best-kept secret in the business.”

Dressing the part

The dress “varies between offices.” While Chicago employees sport business casualall the time, others are “somewhere between business casual and business business.”CSC is trying to create a “start-up environment, so we just started wearing jeans andsneakers.” But one source advises, “You are there for business and dressappropriately.” Of course, the sartorial bottom line is ultimately drawn by the client.One insider stresses, “You wear whatever they wear — like in Simon Says.”





L I B R A R Y



99 Park AvenueFifth FloorNew York, NY 10016Phone: (212) 541-8100Fax: (212) 541-8957www.oliverwyman.com

LOCATIONS New York, NY (HQ)LondonFrankfurtMadridMilanParisTorontoSingapore

PRACTICE AREASBusiness TransformationCapital MarketsCommercial & Corporate BankingFinance & RiskInsurance & Asset ManagementRetail Financial Services

THE STATS

Employer Type: Private CompanyChairman: John P. Drzik2001 Employees: 3502000 Employees: 280

UPPERS

• Immediate responsibility given tonew hires

• Large bonuses

DOWNERS

• No formalized training• Travel often grueling and

unavoidable

KEY COMPETITORS

Booz Allen HamiltonBoston Consulting GroupMcKinsey & CompanyPwC Consulting (Monday)

EMPLOYMENT CONTACT

U.S. Recruiting:[email protected]

London Recruiting:[email protected]

Frankfurt Recruiting:[email protected]

All other recruiting:[email protected]

Oliver, Wyman & CompanyV A U L T


25


• “Great banking work”• “Boring”• “Full of VERY clever people”• “Prestigious indeed — but I

wouldn’t want to work there”

THE SCOOP

Focused on finance

Oliver, Wyman & Company is one of the foremost consulting firms dedicated to thefinancial services industry. Founded in 1984 by five consultants from Booz AllenHamilton and The Boston Consulting Group, the firm has grown to almost 300consulting professionals, with more than half its business and staff outside of NorthAmerica. Offices in Madrid, Paris, Singapore and Toronto complement OWC’s hubsin New York City, London and Frankfurt. OWC’s reach in Europe was furtherexpanded in the summer of 2002 when the firm acquired Intervaluenet, a smallMilan, Italy-based consultancy. As OWC’s longevity has increased, so has itsreputation — its clients include 32 of the world’s top 50 financial institutions.

Innovating and expanding

OWC has undertaken a number of ventures to keep up with the rapid changes in thefinancial sector over the last decade. In October 1999 it founded eRisk, a full-serviceprovider of strategic risk management solutions, offering a variety of servicesthrough its ERisk.com portal. It helps financial services organizations, propertyand casualty insurers, energy companies and other corporations reduce losses,boost shareholder value and transform risk management processes to increasemanagement effectiveness.

During the last few years, OWC also has been rolling out a new generation of default-probability estimation models through a partnership with Moody’s Risk ManagementServices. OWC Credit Ratings, LP, a wholly owned sister company of OWC, offersdefault probability estimation models covering more than 1 million private firms inEurope — including banks, insurers, Internet exchanges, rating agencies, auditors,tax consultants and regulators in middle-market and smaller commercial segments —through Moody’s KMV’s RiskCalc, a quantitative rating system. As of May 2002,RiskCalc models for private firms had been introduced for Germany, the UnitedKingdom, France, Spain and Belgium, as well as the United States, Canada, Japan,Mexico and Australia.

An academic approach

In an effort to boost its intellectual capital, OWC operates the Oliver WymanInstitute, an organization of partners and selected academics that provides added

Vault Guide to the Top 50 Consulting FirmsOliver, Wyman & Company


L I B R A R Y

insight to consultants and clients, organizes conferences and publishes workingpapers. While the institute is primarily an arm of OWC, it promotes its workthroughout the financial services industry through such channels as public roundtables, dissertation fellowships and student prizes.

Keeping it in the family

Unlike many of its larger competitors, OWC is devoted to internal promotion, and allnew hires are viewed as potential partners. In fact, 33 of the current directors —including the firm’s chairman, John Drzik — are homegrown, having joined the firmas entry-level staffers from undergrad or graduate programs. And it doesn’t take anMBA to make partner — while most of OWC’s directors have advanced degrees,according to the firm only 6 percent of all employees are business school graduates.

GETTING HIRED

As a small, focused firm, Oliver, Wyman & Company can afford to be picky. Thevast majority of the firm’s consultants arrive straight from undergraduate programs.(While OWC accepts resumes over the Internet, it usually hires only from the Iviesand Oxbridge. It does not actively recruit MBAs.) For university recruiting, the firmputs applicants through a rigorous two-stage interview process, selecting only a fewnames from a short list of resumes received during campus visits. The first round ofinterviews, held on campus, is composed of two meetings, with one fit and one caseinterview; at least one of these is with a firm director. The second round, held atOWC’s offices, ranges between four and five meetings, and applicants can expect atleast three more case interviews. The second-round interviews are “rigorous,” oneconsultant reports, as they are meant to “determine if people fit with our culture.”

Because OWC is strictly a financial services firm, it hires mostly (though notexclusively) math, economics and science majors. As one source tells Vault, “wetend to hire individuals who have demonstrated a high level of academic excellence,strong analytical skills and strong communication skills.” Case interviews areheavily numbers-oriented, and applicants should be as specific as possible whenanswering questions. The content of the cases is closely guarded, as they areconsidered proprietary information and “Most are created by the interviewers andmay relate vaguely to some client work they’ve done previously.”



OUR SURVEY SAYS

The working life

Oliver, Wyman & Company has everything one might expect in a small, elite financeconsulting firm. Respondents almost unanimously describe its culture aschallenging, but at the same time “laid back and meritocratic.” While the atmosphereapparently varies greatly from office to office, consultants at OWC tell us there is a“strong emphasis on balancing personal and professional life, especially at morejunior levels.” OWC employees work an average 55 hours per week, a firm-widestandard that “is a part of our management performance metrics and tied directly intoour compensation scheme,” meaning that “Directors can be penalized financially foroverworking staff.”

Not surprisingly, financial consulting can be a stressful endeavor, but respondentsgive OWC points for fostering “a relaxed and collegial atmosphere,” which“provides the perfect respite from and support during the rigorous hours which thissphere of work so often entails.” Because there are only two levels at OWC —director and consultant — the offices tend to be very cohesive, and directors are moreinvolved in the daily operations of OWC projects. “Many knew my name from thefirst day I joined,” one consultant tells Vault, “and at firm events the directors aremore than happy to spend time with consultants, even stretching to a quick boogie onthe dance floor.” On the other hand, another consultant remarks that firm cohesioncan vary from office to office: “Directors and staffers in the German office treatconsultants often as equals and give advice as needed. The New York office is a littlemore hierarchical and directors there are a little further removed from the consultants,although they are usually pleasant when you are working directly with them.”

Not all rosy

But there are downsides to working for such a small, focused firm. OWC has “nobrand name outside financial services,” says one source, while another adds that “Weare less developed than some of our larger competitors in certain areas. We are stillperceived to be a risk shop in spite of our other numerous capabilities.” And whileusing a small net to bring in the best of the Ivy League’s number crunchers is goodfor the balance sheet, it also means that the “people tend to be a little geeky.” Or, asone consultant puts it, “OWC consultants are overachievers. As a result, you cansense competitiveness at times when comparing project experiences, and also youmay find yourself on occasion in a discussion with someone who only likes to talk



L I B R A R Y

about him or herself.” Another says that in the U.S. office there is a “big problemassimilating non-U.S. citizens or non-Ivy BAs or BSs. There is no respect forprevious experience; people are too focused on GPA and academic achievements, noton professional experience.”

And because OWC hires almost all its consultants straight from undergrad programs,many consultants leave to pursue other interests or return to graduate school. “Thefirm does not operate an up-or-out policy, so an annual exodus of staff is notexperienced,” one consultant tells us. “However, the demands of the consultinglifestyle lead to an average stay of about two to three years.” OWC strives tomaintain a lower-than-industry average attrition rate (the firm says that the rate hasranged from 11 to 17 percent in recent years), though it can fluctuate based on theeconomy and the health of other sectors. For instance, “At the height of the dot-comboom, retention was atrocious.”

Face time? What’s face time?

Newcomers to OWC should expect to spend most of their project time away from theoffice. Consultants travel every week and spend considerably more time at clientsites than at their home base. (OWC consultants spend so little time in the firm’s ownoffices that there are no permanent desks; rather, when they are in the office they “hotdesk,” booking space prior to their return home.) Some consultants say that theconstant traveling can be tiring, but the firm tries to alleviate on-the-go stress byproviding generous per diems and paid flights home every weekend. Consultantsalso can choose to fly a significant other to the client location in lieu of returning tothe home office.

And because employees spend so much time away from the office, consultants tell usnot to expect too much in the way of home-base amenities. Of the three main offices— New York, London and Frankfurt — the New York office gets the best marks,though one consultant describes it as “very hip, but totally non-functional.” Forinstance, adds another, “the building heating systems often fail to make one sectionof the office warm enough in the winter, hence its nickname ‘Siberia.’” TheFrankfurt office is said to be merely average, while the London office draws the mostcomplaints for being cramped and uncomfortable. On the other hand, the Londonoffice is “undergoing a complete overhaul, expansion and refurbishment,” whichshould be complete by mid-2002, and new space currently is being sought forFrankfurt. Yet another insider sums up OWC’s approach to its offices this way: “Notpalatial — they supply all basic needs and comforts without ever being luxurious.



The company’s policy is to provide everything that is necessary, and use the surplusmoney on larger bonuses rather than superfluities.”

The big money

Speaking of bonuses, OWC compensates its employees very well, providing “goodmoney for the hours,” in the words of one consultant. Salaries for newly mintedundergrads tend to be “top of the market” and include a sign-on bonus and guaranteedyear-end bonus of at least 25 percent. Bonuses depend on the firm’s annual profits,while salary increases depend on an individual’s performance. While mostconsultants are happy with their compensation, there is reportedly some controversyabout a 10 percent salary increase cap put in place at the start of 2002. The firmclarifies, however, that the move was a one-time correction in response to theautomatic 10 to 30 percent salary increases it had given in recent years.

There is also confusion as to variations in starting salaries: The “discrepancy overstarting salaries needs to be made clearer. Some people with a four-yearundergraduate course are on higher starting salaries than those who have completeda master’s.” As for benefits, the firm has a profit-sharing plan, and provides “a lot offree team and company dinners,” snacks and drinks in the office, Friday happy hours,sports/entertainment discounts and long-term disability insurance — though, in general,OWC follows an “‘all-cash’ philosophy,” with “little additional fringe benefits.”

Learning by doing

Despite the fact that people at OWC “pick things up incredibly quickly, and most aregood teachers,” the firm’s training efforts receive consistently low marks from ourrespondents. OWC offers “virtually no formal training, and whatever there is isn’tvery useful,” claims one source. Training is “probably one of the less-developedspots of the company,” reports another. The firm places a strong emphasis on on-the-job training, with formal training being “ad hoc and as required. If there is somethingspecific you need, it is usually possible to get a course or have someone in the firmteach you the material.” Ultimately, as one source tells us, “For a small firm it isdifficult to coordinate a formalized training program, and you tend to learn morefrom advice and experience than from attending classes. However, there areoccasions when you may feel like you are given a task beyond you, and in thatsituation, consultants naturally tend to become tense, concerned and stressed.”



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Consulting internationale

As a thoroughly international firm, OWC employees come from a variety of nationaland ethnic backgrounds. “For example,” says one consultant, “my current team iscomposed of a German, a Romanian and myself, the American.” Indeed, just 29percent of OWC consultants are American, with 30 percent hailing from the U.K., 14percent from Germany and 27 percent from other points on the globe. At the sametime, the firm has a very low number of American minorities, “especially withrespect to African-Americans and Latinos.”

While the number of women at the firm has been rising in recent years — it’scurrently 20 percent — there are only two female directors, the CFO and a Germany-based consulting director. “There is, therefore, not significant mentoring betweensenior and junior women in the firm,” laments a source. Female hires should also beaware that the London office “has a culture of friendly banter which could offend thesensitive.” Several female respondents, however, tell Vault that the low number ofwomen at OWC does not make it any different from other firms, and, as one puts it,“Short of changing the sphere of work in which the company is involved, there isnothing more they could do to improve women’s time here.”





“At firm events thedirectors are more

than happy to spend time with consultants,

even stretching to a quickboogie on the dance floor.”

— Oliver Wyman & Company insider


L I B R A R Y


1717 H Street, NWWashington, DC 20006Phone: (202) 715-7000Fax: (202) 715-7700

Watson House, London RoadReigate, Surrey RH29PQ, EnglandPhone: (44) 1737-241144Fax: (44) 1737-241496www.watsonwyatt.com

LOCATIONS Washington, DC (HQ)Reigate, UK (HQ)87 offices worldwide

PRACTICE AREASCommunicationsCompensationGroup Benefits and Health CareHR TechnologiesInternational InvestmentOrganization EffectivenessRetirement/Defined Contribution

THE STATS

Employer Type: Public CompanyStock Symbol: WWStock Exchange: NYSEPresident & CEO: John J. Haley2001 Employees: 6,2002000 Employees: 5,8002001 Revenues: $700.2 million2000 Revenues: $624.6 million

UPPERS

• Flexible relocation policies

DOWNERS

• Stress on billable hours

KEY COMPETITORS

AccentureHewitt AssociatesPwC Consulting (Monday)Towers PerrinMercer Human Resource Consulting

EMPLOYMENT CONTACT

www.watsonwyatt.com/careers

Watson Wyatt WorldwideV A U L T


26


• “Excellent”• “Standard for HR consulting”• “Up-and-coming”

THE SCOOP

Two hearts that beat as one

With more than 6,200 associates in 87 offices worldwide, Watson Wyatt is one of theworld’s leading human capital consulting firms. The Washington, D.C.- and U.K.-based company, founded by a merger of two actuarial firms in 1995, has built abusiness around global research and information services in the areas of employeebenefits, human resources technologies and human capital management.

The firm is actually a partnership divided in half. Watson Wyatt & Company isheadquartered in Washington, D.C. and has 4,100 associates in 62 offices in theAmericas and Asia-Pacific regions. It is also a subsidiary of Watson Wyatt &Company Holdings, a NYSE-traded firm. The privately held Watson Wyatt Partners,on the other hand, is the leading European consulting partnership, with headquartersin Reigate, U.K. The two operate globally as Watson Wyatt Worldwide.

Online HR

Watson Wyatt has long been a leader in moving human resources onto the Web. Thecenterpiece of its Internet strategy is the eHR package, which offers clients a full-service platform for benefits and staffing administration, as well as 401(k)management and employee training. The company releases research papers andreports concerning Internet-based benefits administration, and a section of its website allows companies to participate in a survey that compares them against 700 others.

Buying and allying

Despite the downturn in the economy in 2001, Watson Wyatt has continued to beprofitable, and it has used that money to expand its global position. In November2001 it purchased Atuarial Consultoria of Brazil, increasing its presence in SouthAmerica. On the subcontinent, in April 2001 Watson Wyatt announced its acquisitionof M C Chakravarti & Associates in Kolkata, India.

During the same period, Watson Wyatt signed a number of strategic alliances withsmaller consulting firms to improve its position in the Web-based HR sector; theseinclude Workscape, Synhrgy and Gabriel, Roeder, Smith & Company.

Vault Guide to the Top 50 Consulting FirmsWatson Wyatt Worldwide


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IPO for the ages

As well as being one of the largest HR firms in the world, Watson Wyatt is also partof the still-small coterie of publicly traded consultancies. The firm had its initialpublic offering in October 2000, announcing 5.6 million shares priced at $12.50 pershare — though the actual opening price was $14.88 (a healthy 20 percent jump). Onthe first day of trading, the shares quickly rose to over $16, making the first-ever IPOby a benefits consulting firm an overwhelming success. (The firm retained 75percent of the total shares.)

Integrated initiatives

People Management Resources (PMR), a research division of Watson WyattWorldwide, identifies and publishes best practices case studies for improving peoplemanagement. Watson Wyatt Data Services, another subsidiary, is a searchabledatabase containing national and international reports and surveys concerning globalcompensation, benefits and employment practices information.

GETTING HIRED

Watson Wyatt’s web site allows visitors to search a database of currently availablejobs and to apply for them online. According to the company, “A degree orbackground in computer science, communications, mathematics, economics, healthcare or business will provide a foundation for success with Watson Wyatt,” though“many of our associates have degrees in the sciences, humanities or the law.”

All employees are welcome to an extensive amount of ongoing training at WatsonWyatt. Associates in the Americas and Asia-Pacific regions complete a weeklongorientation program within the first six months of hire. This “boot camp” —otherwise know as “The Business of Consulting” — serves as an introduction toWatson Wyatt, and the firm uses its “ClientFirst” program of case studies for follow-up training. Michael H. Davis Fellowships, named in honor of a past companypresident, give consultants the opportunity to transfer to a two-year post in a countryin another major region. And incoming associates from non-business-educationbackgrounds are invited to a three-day mini-MBA program that provides instructionin business terms, concepts and models.



The firm’s total compensation program includes a base salary, bonuses, stockoptions, an array of health and welfare benefits, paid time off, and pension andsavings plans.

OUR SURVEY SAYS

Sleep in

Watson Wyatt is recognized by its employees as “one of the leading benefitsconsulting firms in the world,” with a broad range of careers within the company.There is a “definite growth track” for consultants with Watson Wyatt, as well.Another insider, a late sleeper, is happy that “Watson Wyatt offers flex time — wecan start any time between 7:30 a.m. and 10:00 a.m.”

Roadies

“Billable hours are important here,” says one consultant. “The more [billable hours],the merrier everyone is.” However, “the company is willing to transfer employeesand has been known to create openings in offices where there aren’t any, just toaccommodate an employee who needs to relocate.” Employees report no “overt orcovert” attempt to “keep women or minorities out of career growth goals,” andseveral employees report having female supervisors. According to insiders, WatsonWyatt “is a company that cares as much about keeping its employees happy as it doesabout making a profit.”



L I B R A R Y


One Memorial DriveCambridge, MA 02142Phone: (617) 621-0200Fax: (617) [email protected]

LOCATIONS Cambridge, MA (HQ)17 offices worldwide

PRACTICE AREASApplication Development and

Package IntegrationBusiness Strategy Creation and

ExecutionCustomer Relationship ManagementEnterprise ArchitectureEnterprise Learning and Knowledge

ManagementSupply Chain Optimization

THE STATS

Employer Type: Public CompanyStock Symbol: SAPEStock Exchange: NasdaqCo-Chairmen: Jerry A. Greenberg &J. Stuart Moore2002 Employees: 1,9002001 Employees: 2,3002001 Revenues: $329.7 million 2000 Revenues: $503.3 million

UPPERS

• Increasing international presence• Moving into new technologies• Passionate employees

DOWNERS

• Multiple rounds of layoffs• Pay freezes

KEY COMPETITORS

AccentureDiamondCluster InternationalIBM Global ServicesWipro Technologies

EMPLOYMENT CONTACT

www.sapient.com/careers/career.htm

Sapient CorporationV A U L T


27


• “One of the few good techcompanies”

• “Good while it lasted”• “Excellent people — really

committed”• “Stick a fork in them”

THE SCOOP

Delivering wisdom

When Jerry A. Greenberg and J. Stuart Moore founded Sapient in 1991, their statedgoal was to provide exemplary services on time and on budget. In 1994, relativelyearly in the dot-com game, they turned their attentions to the Internet. Currently,Sapient — the name is derived from the Latin for “wisdom” — boasts about 1,900employees in 17 offices in the United States, Europe and Asia. The vast majority ofthe firm’s business comes from large, global clients, including Staples, Toyota,Goldman Sachs and Cisco Systems. Sapient’s team-based approach is intended tobring together business strategy, user experience research and advanced technologiesto determine the best practice tools for each client, but its big advantage over otherfirms is its guarantee to finish a project in a predetermined time frame, for apredetermined fee. This philosophy has proved appealing to clients tired of the costand time overruns incurred by other consulting firms.

Rocky road

Publicly traded since 1996, Sapient’s business, as one might guess, has sufferedamidst the economic downturn. Signs of the firm’s struggles first appeared in March2001. On the heels of strong revenue growth and widespread recognition in 2000,Sapient was forced to eliminate 720 jobs, or about 20 percent of its workforce, dueto deteriorating economic conditions. The pink slips were accompanied by anannouncement that Sapient would be closing its Sydney, Australia office and thatother global regions would be consolidated. In July 2001, the firm cut an additional390 jobs and relocated another 60 to India. Sapient posted a net loss of $189.8million in fiscal 2001 and saw annual revenues decrease by 34 percent to $329.7 million.February 2002 brought 545 more layoffs, leaving the firm with about 1,900 employees.

Spanning the globe

While Sapient’s overall 2001 financial results were shaky, the firm did manage toincrease international revenues by 72 percent, to $75 million, or 30 percent of totalcompany revenues. The firm retains high-profile clients around the world, includingDeutsche Telekom, Ferrari, Novartis, Mitsubishi Motor Corporation and others. InMay 2001, Sapient completed a technology enhancement project designed toimprove online access to Lloyd’s of London’s insurance services. That December,Sapient announced that it had completed the first stage of an engagement with

Vault Guide to the Top 50 Consulting FirmsSapient Corporation


L I B R A R Y

Opodo, an online travel service developed by nine European airlines (and an Orbitzanalogue). The firm helped Opodo establish call center, ticket fulfillment and back-office functions as well as to design and implement region-specific online traveloperations. Sapient also opened an office in Toronto in 2001.

Salaam, Sapient

Despite the appeal of America’s neighbor to the north, however, the firm’s mostimportant international focus remains on India. At the same time that Sapient wascutting staff in North America, Sapient was making plans to increase its Indianworkforce. Sapient’s Indian operation, established in March 2000, currently hasabout 600 employees. Among other advantages, operational costs in the country areconsiderably lower than in North America. India is also an excellent source ofavailable technology professionals. As a result, expanding in India enables Sapientto continue to beef up its available services while still cutting costs. Founder and co-chair Jerry Greenberg seems pleased with the firm’s progress on the subcontinent sofar, but told the Financial Times in a January 2002 interview, “All we’ll say is that25 percent [of Sapient staff being based in India] is not enough.”

Changing with the times

Just as Sapient grasped the importance of the Internet early in the game, it isanticipating the importance of mobile and voice technologies, e-learning, customerrelationship management and supply chain in the 21st century, and it has createdservices to work in these arenas. Sapient has alliances with Microsoft, SunMicrosystems, BEA Web Logic, Vignette and Oracle, among others.

It is adapting to the times in other ways as well. The firm had a business formal dresscode until 1999, when it went casual to conform with the culture of the new economy.Since the Internet bust however, Sapient has inched back toward its sartorialtraditions. Nowadays, Sapient consultants dress formally when meeting with clients,though usually not otherwise.

Widespread recognition

Sapient has won many accolades in recent years. In May 2000, Sapient became thefirst Internet consultancy to be added to Standard & Poor’s 500 Index. Also that yearit was named to the Red Herring 100, as well as the Business Week Info Tech 100.In 2001, the firm picked up a Web Business 50 Award from CIO magazine for itswork on the American Cancer Society’s web site. Sapient also topped the list of



Adweek’s Top 50 Interactive Agencies in February 2001, and ranked No. 22 amongthe fastest-growing companies in the Boston area by Boston Business Journal.Finally in May, Sapient placed fifth in Consulting magazine’s rankings of the Top 10Consulting Firms to Work For.

The future of Sapient

There’s no need to go over the recent history of Internet-focused consultingcompanies — just look at the wreckage of fellow Internet consulting firmmarchFIRST (bankrupt as of April 2001) and barely swimming Razorfish if you needa clear example. Sapient has certainly fallen from its previous heights — the firmwas profitable throughout the 1990s, and the stock price exceeded $70 per share atits height. (It was hovering around the $1 per share mark as of mid-2002.) Still, thefirm believes that it is poised to rebound when the tech slump ends.

GETTING HIRED

At Sapient, “all forms of recruitment are used,” from employee referrals to campusrecruiting measures to the use of headhunters and other candidate search methods.For prospective consultants, “On average, we conduct six to 10 interviews withvarious people throughout the organization. Questions focus on a person’s culture fitand ability to work in a team, as well as the appropriate type of case study.” Insiderssay that candidates don’t make it to face-to-face interviews until they have undergonea resume scan and screening interview over the phone. Prospective Sapientconsultants: should note that as of April 2002, recruiting in the United States to alarge extent is “now on hold due to the economy,” though hiring continues apace inEurope and India.

Initial interviews and technical skills tests for college students and MBAs are held oncampus. Those who make the grade are “asked to join one of our Super Saturdayhiring events, where we bring 30 to 50 candidates into our office for a Friday andSaturday of interviews, technical exercises or business exercises and team buildingactivities, as well as social activities.” Again, interviews during these events areconducted by people throughout the firm. Notes one insider, “Everyone in thecompany is encouraged to interview new employees. This is for the simple reasonthat one day you could be working with the person.” The hiring process is carried



L I B R A R Y

out with an eye toward the future in other ways as well, says one consultant: “We dotreat people great who we don’t hire. They can be clients in the future.”

For those who love sample case questions, here’s one from a Sapient insider: “‘Anonline apartment rental site must increase revenue and adoption of the site. How?’Interviewees must provide responses in a number of areas from business, designand technology perspectives. These cases stress the need for a generalist and broadskill sets.”

OUR SURVEY SAYS

Value-driven

Sapient consultants agree the firm’s “rich culture is what attracts many people to thefirm.” Says one consultant, “I was surprised to learn that the culture is not justrhetoric; it is woven into the DNA of the organization.” The firm apparently has beensuccessful at getting its employees to internalize its values and mission. “Fortunatelyfor Sapient, its founders actually run the firm,” remarks one source. “I believe thisis why they have been able to propagate the core values across the firm and weave itinto all our processes and activities.” As a result, “Sapient’s culture is chock full ofconsulting zealots. People are passionate and committed to the goals of our clientsand our company.” “Accountability” is a major watchword within the Sapient offices.“At Sapient,” remarks one consultant, “individual responsibility is stressed —everyone has the opportunity to make a difference in the success of their team, projector office.” By the same token, “Mistakes are tolerated as long as they are not repeated.”

The firm has “no bullshit politics” and employees are encouraged to be “open, honestand direct with each other and with clients.” Pink slips and other difficulties haveshaken things up a bit, but most of the Sapient faithful remain relatively undaunted.“Although we have a lot of hoopla about core values, the real premise of our firm isto get the stuff done right,” says a source. “Even though we had our bonuses cut,raises nixed, and good friends were gone, the people remaining fell back on theirindividual beliefs — and the one that resonates the most is the desire to do areally good job at whatever you do. It is what is carrying us through this currentphase of uncertainty.”



Too much testosterone?

Employees give Sapient fairly high marks for diversity, but their comments aremixed. According to one, “I think we have a great deal of diversity here — the headof our financial services practice is a woman, the CFO is a woman, and the generalcounsel is a woman.” On the other hand, another source asserts that “In the past year,the number of women in top leadership positions and senior management hasdeclined, and it wasn’t high to begin with.” One thing upon which all agree,however, is that the firm treats all of its employees equally regardless of gender. Saysone, “People don’t really think about the different sexes. All anyone cares about isthat you can deliver, and deliver beyond expectations.” The same is true when itcomes to members of minority groups: “All races and ethnicities are represesented andaccepted,” opines one consultant. “No one really cares when it comes to skin color.”

Ebb and flow

“Like most consultancies that are project-based with deadlines, work hours ebb andflow,” says one consultant. “There are 60- and 70-hour weeks interspersed amongthe typical 50-hour week.” Others report working longer hours — Sapient is “not forpeople that think working should be 9 to 5” — but 60 hours per week is fairlystandard and weekend work is the exception. Don’t expect a steady schedule,however, warns one insider: “The work hours are irregular. It is hard to predict whatyour hours will be like from project to project.” While the nature of the projectdictates the workflow for the most part, employees can exercise some control over it.“Since everyone is involved in some sort of planning, individuals have ownershipand responsibility for how much they will have to work,” points out one contact.Another concurs: “We work long hours but it is rarely a death march. There is noexcuse for not managing our time better and it is more the fault of the individualsthan company policy to impose long hours. A well-balanced work/personal life is allour responsibility.”

While some projects require a great deal of travel, few Sapient consultants areconstant road warriors. “It really depends on the client,” says one consultant. “Someprojects I’ve spent 100 percent of the time on the client’s site. Other projects I’vespent 100 percent of the time in my home office.” One’s function can also affecttravel time: “During an implementation project most of the team will remain atSapient locations, while the management team may spend the majority of its time atthe client site.” While the firm “brings many more clients into our office than mostfirms,” prospective employees are advised to keep their bags packed since “With the



L I B R A R Y

reduction in headcount and a vertical industry business model, travel for consultantshas increased.”

Live by the market, die by the market

When the market was booming in the late 1990s, many Sapient employeespurportedly were swimming in bonus money. Now they’ve been slapped by theinvisible hand. “Compensation is based on company profitability,” laments oneconsultant. “If the company generates a profit, bonuses are dispensed. If thecompany is running even or losing money, bonuses are not offered.” Not only havebonuses failed to materialize, “base compensation has remained level for over a yearas the company has tried to contain costs and remain competitive.” “Not seeing ourstock ever worth as much as the company was hoping, I feel far underpaid,” oneemployee grouses. Others put a more positive spin on the situation: “Now is a greattime to be at Sapient because the stock price is low, the option pool is larger, givenlayoffs, and the long-term outlook is positive.” Some ill feelings about pay areassuaged by the firm’s benefits, which include a comprehensive insurance package,an employee referral bonus, commuter passes, various discounts and a $500 personalcomputer subsidy, among others.

Training found lacking

Insiders reveal to Vault that “The company could do a better job in providing trainingto its employees.” One goes so far as to say, “In the current economic climatevirtually all training except technology certification has gone out the window.”Others offer a less extreme view, but assert that “You have to be very proactive aboutgetting the training you want. It doesn’t happen if you are waiting for someone to setit up, especially when the economy is not that good.” As is often the case in theconsulting industry, scheduling can be a problem as well: “We are expected to self-learn, which makes it incredibly difficult when you have a full plate.” Sapient doesoffer “lots of on-the-job training,” as the firm “would rather make an investment inputting an extra person on a project to learn in the trenches than [through] a cannedtraining course.” On a positive note, says one consultant, while “formal training is notextensive, there is a culture of mentorship that enables people to grow into new areas.”

Warm bodies need not apply

“We set a high bar for those we hire,” say Sapient employees. The firm has “adifficult hiring gauntlet that requires a unique blend of technical and people skills to



make it through.” “I have on numerous occasions had people remark on howthorough our process is,” comments a vice president. Simply put, “They test yourcore job skills [and] team abilities as well as behavioral attributes. They don’t leavemuch out.” “Even during the boom times we never hired ‘warm bodies’ to meethiring targets,” says one consultant, and things have gotten much tougher with fewerslots available. “Getting a job at Sapient has only gotten harder since I started,”remarks a source. “The criteria that exist today make me think that I wouldn’t havebeen hired.” “I believe one out of 10 makes it through the whole process,” estimatesone consultant, while another puts the figure at “approximately one in 20.” Theprospects may seem dim, but insiders do offer one tip: Sapient puts a greateremphasis on cultural fit and shared values than most other firms do. Says one J.F.K.wannabe, “You must believe in what the company wants to become, not just whatyou want to do at the company.”



L I B R A R Y



4050 Legato RoadFairfax, VA 22033Phone: (703) 267-8000Fax: (703) 267-5073www.ams.com

LOCATIONSFairfax, VA (HQ)51 offices worldwide

PRACTICE AREASAcquisition Business SolutionsBusiness Intelligence & Data

WarehousingBusiness Process RenewalChange Management &

Organizational DevelopmentCustomer Relationship Managemente-BusinessEngagement ManagementHomeland SecurityImaging & WorkflowInformation SecurityIntegrated Learning SolutionsKnowledge ManagementProcurementSystem Development & IT

ManagementSystems IntegrationTechnology Hosting Services

THE STATS

Employer type: Public CompanyStock Exchange: NasdaqStock Symbol: AMSYChairman and CEO:Alfred T. Mockett2001 Employees: 7,0002000 Employees: 8,000+2001 Revenues: $1.18 billion2000 Revenues: $1.28 billion

UPPERS

• Opportunities for travel,advancement and growth

• Social and friendly workenvironment

DOWNERS

• Company is tightening up onoverhead costs and cutting backon perks

• Disputes with clients

KEY COMPETITORS

AccentureAndersenDeloitte ConsultingKPMG ConsultingPwC Consulting (Monday)

EMPLOYMENT CONTACT

www.ams.com/career/

American ManagementSystems

V A U L T


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• “Positive work environment”• “Shaky client reputation”• “People-friendly”• “In flux”

THE SCOOP

Links to the government

American Management Systems has its roots with Nixon Administration officials,and it continues its legacy through frequent projects it undertakes at the behest of theU.S. government (though, we trust, without any requests for wiretapping.) The firmwas founded in 1970 by five men, one of whom, Charles Rossotti, was a protégé ofNixon defense secretary Robert McNamara and considered one of McNamara’s so-called “whiz kids.” The founders raised $300,000 in venture capital from LehmanBrothers, then wrote to 24 former Pentagon peers, offering consulting services “fromsome of the people who brought you Vietnam and the ABM.” AMS made $15,000in profits in its first year in business and won its first big contract — with BurlingtonNorthern Railroad — after another six months. AMS went public in 1979. Today,AMS has 51 offices and more than 7,000 employees. In 2001 revenues topped the$1 billion mark for the fourth straight year.

The 1990s were a prosperous time for the firm, with revenue and earnings growingby an average of 19 percent and 26 percent, respectively, per year. That growthleveled off in 2001, when revenue dipped slightly to $1.18 billion from $1.28 billionthe previous year and net income plummeted to $15.9 million from $43.8 millionafter restructuring charges, legal settlements and other fees. The firm also laid offabout 900 employees, or 10 percent of its workforce, in 2001. Late 2001 saw AMS’sprofits fall even further, a full 76 percent drop in earnings during the last quarter. Andwhile thanks to severe cost-cutting measures the firm was able to return toprofitability in the following months, it nevertheless reported another 22 percent dropduring the first quarter of 2002.

Public clients

AMS concentrates on systems and operations consulting in a variety of industries,and it still maintains close government links. Including state and local governments,approximately one-half of the firm’s revenue comes from government clients in theUnited States and Canada. The remainder comes from the financial services, newmedia and communications, insurance, health care and energy markets. According toThe Washington Post, AMS has contracts with 47 of the top 50 banks in the UnitedStates, five of the top 10 insurance companies, and 43 states.

Vault Guide to the Top 50 Consulting FirmsAmerican Management Systems


L I B R A R Y

Recently the firm has begun new engagements on behalf of public-sector clients. InNovember 2001 the New York Metropolitan Transporation Authority signed AMS toa five-year, $18 million contract to handle operations for its Transit AdjudicationBureau. The following month the Environmental Protection Agency hired the firmto provide integration software and services for its Office of Research andDevelopment. And in February 2002 AMS, along with Anteon Corporation, won amultimillion-dollar contract to provide business planning services for the Naval SeaSystem Command’s (NAVSEA) Team Submarine.

Management change

Alfred T. Mockett assumed leadership of AMS in December 2001, taking the reinsfrom interim President and CEO William Purdy. Mockett previously had served asCEO of BT Ignite, a division of British Telecommunications plc. Prior to thatposition, he held a number of executive posts with the Telex Corporation and servedon the board of Memorex Telex NV. Purdy remains with the firm as president andchief operating officer.

A wealth of training

AMS has won numerous workplace awards, including ranking No. 10 on Consultingmagazine’s June 2001 Best Consulting Firms to Work For list. And although it fellout of the rankings in 2002, AMS has made frequent appearances in recent years onFortune’s list of the 100 Best Companies to Work For. In ranking AMS in 2001,Fortune noted that each employee receives, on average, 45 hours of training per year.The firm conducts much of its training and career development through AMSUniversity, a training program that uses Web- and intranet-based coursework, as wellas traditional classroom instruction. AMSers can link courses to the kinds of workand roles they currently have, or they can focus on course offerings that prepare themto take on more challenging assignments down the road. Coursework covers a broadspectrum of technical, functional, managerial and interpersonal skills.

What’s new

AMS has been beefing up its e-business services in the last few years, concentratingespecially on public-sector services through alliances with technology companiessuch as Ariba, Siebel and Requisite Technology Services. A March 2000 partnershipwith FreeMarkets, an online auction marketplace, gives government agencies accessto the best possible prices on goods and services and gives the private sector access



to governmental purchasing agents. In August 2000 AMS acquired SynergyConsulting, thereby enhancing its government e-business service capabilities. Alsothat month, AMS joined forces with Microsoft to open the AMS/Microsoft SolutionsCenter in Norfolk, Va., and formed an alliance with Lucent Technologies to developback-office wireless solutions.

AMS, which also counts IBM, WebMethods, Oracle, Sun and Hewlett-Packardamong its partners, continued to forge alliances in 2001. In April of that year the firmpartnered with Palo Alto, Calif.-based WhiteLight Systems to implement analyticapplications for companies in the financial services industry. AMS also entered intoa reselling agreement with Charlotte, N.C.-based content integration provider Venetica.

Legal hot water

In 1999 AMS was the subject of a $234 million lawsuit, brought by the MississippiState Tax Commission, alleging that the firm broke its contract by failing toimplement a tax withholding system. In August 2000, the Hinds County CircuitCourt came down with a guilty verdict that AMS then appealed. The appeal resultedin a negotiated settlement several days later wherein the payment was reduced from$474.5 million to $185 million, most of which was covered by AMS’s insurers.

With the lawsuit came the departure of then-CEO Paul A. Brands (who received aseverance package reportedly worth $3 million), but not the end of AMS’s clientdisputes. In Utah, lawmakers were reportedly “furious” over AMS’s inability tocomplete a new tax system on time and within its $34 million budget and calledattention to the fact that the states of Mississippi, Missouri and Kansas hadexperienced similar problems with AMS. The firm had another dispute with Ohio’soddly named Department of Job and Family Services in the winter of 2001.

In January 2001 the government of Fairfax County, Va. fired AMS from an $8.8million contract when the firm was unable to deliver a satisfactory tax record-keepingsystem. Six months later the Federal Retirement Thrift Investment Board sued thefirm for $350 million in damages relating to an overdue contract. A federal judgethrew out the suit in January 2002, however, citing a lack of jurisdiction to hear thecase. The Thrift Board plans to appeal. Despite these difficulties, AMS asserts thatthe vast majority of its clients are happy with its work and that 85 percent of themrenew their contracts.



L I B R A R Y

GETTING HIRED

AMS does about 30 percent of its recruiting on campus, and every year about 85percent of its new hires come from undergraduate programs. The firm recruitsmostly from mid-Atlantic colleges, cultivating on-campus relationships withprofessors (notably in computer science and other technology-related disciplines)and leaders of computing clubs. AMS also makes extensive use of job fairs andcorporate information sessions; prospective AMSers should stay in touch with theircareer centers to obtain information about AMS’s next visit to campus. AMS’s careerinformation page enables job seekers to search the firm’s job database, learn aboutthe culture at AMS and submit resumes.

Interviewing with AMS breaks down into two rounds. The first round, on campus,is described as “your basic first interview,” with a focus more on cultural fit andresume review than skills. The second round, a half-day of meetings at an AMSoffice, involves “HR, managers and other analysts,” though we hear that casequestions are rare. AMS is as concerned with fit as it is with skill and intelligence;as one analyst tells us, the firm is “pretty selective,” but getting in is “not too hard foran intelligent, well-prepared candidate.”

OUR SURVEY SAYS

Working for the feds

If you find massive government consulting projects appealing, AMS may be theplace for you. Many of the projects are enormous, multi-year affairs, and some “haveno firm end date.” There are many ups to government work, stability being thebiggest. People “who have got kids or a mortgage or something like that like thestability of working at a government contractor.” On the other hand, some insidersdescribe the firm as a “relentlessly average cube farm,” and find the work “stultifyingand soul-numbing.” We hear that “a lot of people put in their two years and take off.”

The life

Consultants in general are happy with the work environment at AMS, though manyalso feel like the company lacks a human face. “The managers are nice, but for themost part I am an interchangeable work unit,” says one source. And while many are



happy with their managers and team leaders, one AMSer tells Vault that “behindclosed doors there is a lot of politics, and I have seen management-level people goingout of their way to hold people back because of long-held grudges.”

One of AMS’s biggest selling points is the low amount of travel relative to theindustry. Because a large number of its clients are based in northern Virginia, andbecause the work doesn’t involve a lot of meetings, AMSers tend to stay where theyare staffed. One respondent says, “I travel only about four weeks out the year.”Another, though, says the amount of travel varies with one’s level of experience andseniority. “My first year and a half at AMS was a story of how many airports I couldvisit,” he tells us. “AMS is somewhat unlike other consulting firms in many ways,in that when you just start, with zero knowledge or skills, you are thrust out onto theroad. Once you start to show some of either, you typically are moved into a role inthe office.”

Hours at AMS tend to average around 50 per week. “I usually work eight to ninehours per day, unless confronted with a deadline or client travel,” says one source.As with most firms, another reports, “They vary. They can be as much as 80 a weekand as few as 50 a week.” At least one consultant, though, says the hours spent atwork aren’t always necessary: “Although I occasionally bring it upon myself, I findmy days last until 8:00 p.m. way more often than they should.”

AMS is not the most diverse company around, but for consulting firms it has a fairlywide spectrum of employees. We hear that “women make up about 35 percent of allemployees and nearly half the management here.” And while there are not manyminorities overall, there is little barrier to their advancement — one contact notes, asevidence, that “my past two bosses have both been African-American.”

Of laptops and Oreste

Most AMSers say they are satisfied with their compensation, said to be “aboveaverage, though not at the highest end of the scale.” The firm operates a system of“compensatory time” — instead of overtime, employees receive credit in a “comp-time bank” for every hour they work over a 95-hour pay period, which can be usedas personal time. The system has its faults, however: There is no overtime pay, and“working 95 hours in an 80-hour pay period is not rewarded.” Some consultants alsosay that the pay at AMS has gotten much worse over the last year, as raises have beenpostponed repeatedly. “I cannot say enough about how crappy the pay has beenrecently,” one shares. “Of the people I know who have left recently, this has been thenumber one reason.”



L I B R A R Y

Benefits at AMS include laptops and cell phones, as well as tuition reimbursementand a healthy insurance package. There is also an on-site cafeteria at the Fairfaxheadquarters, and we hear that Oreste, one of the cooks, makes a mean sub. Amongits many volunteer and extracurricular efforts, the firm sponsors a running club,which includes weekly workouts and free entrance fees to races. The firm’s teameven placed fourth in the 2002 Penn Relays (though we’re also told that “this is alldone on a shoestring budget, and gets little recognition from top management”). Inaddition, there is an annual three-day retreat; the first day is business-related, but “theother two days are for relaxing and getting to know our colleagues from other offices.Spouses, but not kids, are welcome for the last two days.”

Staying on top

While AMS offers a wide variety of training through AMS University and otherprograms, insiders say the firm has cut back its efforts significantly in the last fewyears. Whereas before there was a wealth of classroom learning, now there is “a lotof CBT [computer-based training] as well as on-the-job training. Training is notbillable.” The firm also sends its employees to a number of industry conferencesthroughout the year. But ultimately, one source says, “The promises of training farexceed the actual training. In almost three years here I believe I attended almost allmy formal training classes within the first month, and they were all run in-house.While teams all have a budget to train their people, it is often cut when improvementsare needed in the contribution margin for a given project.”



For a detailed 40- to 50-page insider report on AmericanManagement Systems, and reports on other firms like McKinsey,BCG, Bain, Deloitte Consulting, Accenture and more, get VaultEmployer Profiles. Go to http://consulting.vault.com.


“My first year and a half at AMS was a story of how many

airports I could visit.”

— American Management Systems source


L I B R A R Y


1355 Peachtree Street, NESuite 900Atlanta, GA 30309Phone: (404) 892-0321Fax: (404) 898-9590www.kurtsalmon.com

LOCATIONS Atlanta, GA (HQ)25 offices worldwide

PRACTICE AREASConsumer Products Division:Corporate FinanceFulfillment (Logistics and

Operations)Information TechnologyMerchandisingStrategy

Health Care Division:Facilities PlanningITStrategy

THE STATS

Employer Type: Private CompanyCEO: William B. Pace 2001 Employees: 10002000 Employees: 800

UPPERS

• Rapid career advancement• Thorough job training• Innovative specialties

DOWNERS

• Relatively low salaries• Strenuous interview process

KEY COMPETITORS

AccentureA.T. KearneyBooz Allen HamiltonDeloitte ConsultingMcKinsey & CompanyPwC Consulting (Monday)

EMPLOYMENT CONTACT

Director of RecruitingKurt Salmon Associates1355 Peachtree Street, NESuite 900Atlanta, GA 30309Fax: (404) [email protected]

Kurt Salmon AssociatesV A U L T


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• “Retail gurus”• “Too specialized”• “Interesting niche player”• “Cheap to employees”

THE SCOOP

From hose to consulting

For the past 67 years, Kurt Salmon Associates (KSA) has been developing its globalniche in retailing and consumer products consulting. Before he founded hiseponymous consulting firm, Kurt Salmon worked in a stocking factory in his nativeGermany, but soon became disenchanted with hosiery and took up engineering. AfterSalmon arrived in the United States in 1930, apparel manufacturers repeatedly soughtout his assistance, so Salmon became a consultant, opening his firm in 1935. Sincethen, Kurt Salmon Associates has expanded across the globe, offering premiermanagerial advice to the retail, consumer products and health care industries. Today,the Atlanta-based firm employs approximately 800 people worldwide.

Retailers par excellence

Major groups within the company’s retail and consumer products division includecorporate finance, strategy, merchandising, information technology and fulfillment.Although Kurt Salmon Associates is smaller than most of its management consultingcompetitors, it is the largest firm specializing in the consumer goods and retailindustries. KSA focuses on increasing clients’ effectiveness throughout the supplychain by formulating strategy, as well as reworking end-to-end processes for theirclients — from sourcing, manufacturing and distribution to sales and replenishment. Itsinformation technology teams address technology opportunities from developing e-business strategies to selecting and implementing enterprise-wide software solutions.

Robust growth

Kurt Salmon Associates has experienced substantial growth over the last several years,and gets at least 80 percent of its business from previous clients. Its engagementsusually last anywhere from six weeks to over a year. The firm serves a wide varietyof companies with annual sales ranging from $100 million to billions of dollars. Theseinclude both manufacturers and clients in all channels of retailing, such as massmerchants, direct marketers (Internet and catalog), do-it-yourself shops, and specialtyand department stores. The firm’s focus has moved up the supply chain over theyears from operations to retail. Recent clients include Tiffany’s, Nike, Liz Claiborne,Talbot’s, Timberland, Polo/Ralph Lauren and the U.K.’s MFI Furniture Group.

Vault Guide to the Top 50 Consulting FirmsKurt Salmon Associates


L I B R A R Y

A healthy business of acquisitions

In recent years, KSA has pursued an acquisition strategy in tandem with itscommitment to strong internal growth. Each potential partner company is consideredfor its ability to mesh with the firm’s services and culture. In May 2000 KSAacquired MMM Consultancy Group, a leading European logistics consulting firmbased in the U.K. Five months later, Kurt Salmon Associates’ health care consultingpractice, Hamilton HMC, merged with Space Diagnostics Inc., a consultancyspecializing in hospital and health care planning services. Hamilton HMC had beenformed in 1986 with the acquisition of Hamilton Associates. The division has sinceemerged as a leader in its field, advising on such issues as strategy, facilitiesimplementation and technology. With the merger, the combined entity took on theKurt Salmon Associates name.

In November 2000, KSA purchased Chicago-based TransTech, a developer ofInternet-based applications and enterprise solutions. TransTech provides ITimplementation services to KSA’s core industries. But perhaps the firm’s biggestmove to date came at the very end of 2000, when it announced that it would mergewith Swander Pace & Company. The merger combines KSA’s industry focus inretail, consumer products and health care with SP&Co.’s strategy expertise inindustries such as food, beverage and consumer packaged goods. Swander Pacemaintained its name and San Francisco base of operations, and all of the firm’sdirectors stayed on board to lead the newly merged unit. (For more on SwanderPace, see the firm profile on p. 350.)

On Pace

Just over a year after the Swander Pace merger, its effects were manifested in KSA’smanagement structure. William B. Pace, one of the founding partners of SwanderPace, was named CEO of Kurt Salmon Associates effective March 1, 2002. Pace hadpreviously served as president of the firm he helped found. Erstwhile Kurt SalmonAssociates CEO Peter G. Brown continues in his role as chairman, while longtimeKSA executive David A. Cole was named chairman emeritus. And elsewhere inexecutive news, in March 2001 KSA’s Tony Smith was elected as vice president ofthe Management Consultancies Association (MCA).

The new wave

In 1998 KSA launched an M&A advisory practice that has acted as exclusive financialadviser in a number of important transactions. The investment banking subsidiary,



KSA Capital Advisors, is a licensed broker-dealer and a member of the NASD. Thegroup leverages the industry knowledge of KSA’s senior consultants to providetransaction expertise on M&A, capital formation and financial advisory projects.

The firm also has recently expanded its e-commerce consulting capabilities. KSAcurrently offers B2B and B2C e-commerce consulting services to retailers andconsumer products suppliers, with over half of the firm’s current assignmentsincluding an e-commerce component. To bolster KSA’s IT and e-business practice,the firm has software alliances with, among others, CommercialWare, Oracle,PeopleSoft+Vantive, Syncra Systems, Retek and Manhattan Associates.

GETTING HIRED

While getting an offer at Kurt Salmon Associates is something of an ordeal, insidersbelieve that it is a “good process.” Says one consultant, “Although all of theinterviews were challenging, the interviewers never attempted to make me feeluncomfortable.” Prospective employees can anticipate going through three rounds ofinterviews. The first is on campus, usually conducted by an employee at theconsultant or manager level. The second involves both a series of interviews withHR personnel and analytical skill assessments. Insiders say there are “no calculators,and you can’t study for them.” Those who fare well make it to the day-long officeround and “greet folks across all levels of seniority in the company.” Some roundthree interviews include case questions, and “tend to be based on specific projects thefirm has done in its area of specialization.” A former interviewee offers oneadditional tip: “Dress is business formal during all stages.”

New consultant hires at both the undergraduate and MBA levels start in all practiceareas. The firm occasionally encourages its consultants to go on short- or long-termassignments overseas. MBA hires usually have three years of work experience, comefrom the top 10 percent of their class, and have prior experience in consulting, retailor consumer products. “We’re very unique,” insiders tell Vault. “Just knowing aboutthe consulting industry isn’t enough — you need to know about the retail andconsumer products industry.” Prospective hires in the health care division reportedlyneed an MBA or MHA on top of two to five years of related experience. Fluency ina second language and additional degrees are considered pluses for all groups as well.



L I B R A R Y

OUR SURVEY SAYS

Cooperative culture

Most KSA employees agree that the firm has “an extremely cooperative andsupportive culture.” They repeatedly point out KSA’s “respect for the individual”and describe an atmosphere “based on mutual trust” and “concern with everyone’sneeds.” One factor accounting for this love-in is that “opportunities andadvancement are based on individual performance and capabilities, not tenure orquotas,” which “eliminates any competition that may otherwise crop up betweenemployees.” Even better, “KSA invests in its employees on all levels. You feel likeyou are wanted and appreciated at all times by all parts of the organization.”Unfortunately, KSA has seen some tough times of late, a fact which has affected theoriginal firm culture. Notes one insider, “The past year’s economy has forced thefirm to stop growth.” “2001 was a tough year for all of us given the market climate,”says another. “If I had been asked to rate the culture last year, it would have been a10. I sincerely hope the new leadership team can be a catalyst for revitalizing it.”

Reasonable hours

Compared to other firms, there are few complaints about work hours at KSA. Mostreport being on the road between two and four days a week, and working 50 to 60hours a week. There are very occasional weekends, but “typically there areallowances for compensatory time to make up for it.” “In general, althoughexceptions happen, KSA employees work reasonable hours,” says one source. “Lifebalance is extremely important to KSA, and project plans and timelines are createdaccurately with this in mind. Project managers and proposal participants are gradedon their accuracy and ability to stick to their timelines with standard hours — thusthis is ensured.” One consultant sums up the feelings of most of his co-workers,saying, “I have never been on a project at KSA where I felt the hours were too much.Occasionally projects get busy at a peak and you have to put in some extra time, butoverall the hours are very fair.”

Lies, damn lies and statistics

Insiders note that “as measured by numbers, the firm is heavily skewed towards menin firm leadership positions.” Additionally, “There’s definitely a lower retention rateamong women.” The statistics may not tell the whole story, however. “Seniormanagement is still male-dominated, but there seem to be equal opportunities,” says



one consultant. “Women are definitely well-represented in the new principal,manager and consultant levels of the company.” KSA “treats women in the companyextremely well. Women have as much of an opportunity for employment andpromotion as any other individual,” says one woman consultant. “Many women existin key roles throughout the company and welcome mentoring roles when asked.”Moreover, “KSA is committed to ensuring that its women employees are treated wellby the client, intervening with the client directly if required.”

Low on the pay scale

“Given the economic downturn in 2001 and its effects on the consulting industry, I’mhappy to have a job in a company I like,” says one source. “However, comparingpersonal salaries with folks in firms we compete for projects with, my salary is lowerthan theirs.” Explains another consultant, “As a result of the soft economy, salarieswere dropped 6 percent across the board [in 2001]. It remains to be seen how KSAwill reward us for this cut when the economy grows stronger. Even before the cut,the feeling at KSA among consultants is that we are paid slightly below average.”

The firm counters, however, that its compensation is “in line with the consultingsalary averages provided by the National Association of Colleges and Employers.”And if on the surface it still appears that pay is on the low side, insiders say that“because KSA believes in supporting employees for the long term, a large portion ofyour salary comes with both 401(k) matching and a separate retirement pension thatis funded entirely by KSA. These two items alone contribute significantly to theamount of money you will earn at KSA.” Indeed, the pension plan “is managed sothat a person will earn 80 percent of their final salary on an annual basis upon retiringfrom KSA.” Other firm benefits include cell phones, laptop computers, free food andan on-site gym in the Atlanta office. Unfortunately, the economy has reared its uglyhead in the perks department as well — observes one insider, in 2001 “many of theperks were taken away,” including the executive MBA tuition support program andthe concierge service.

Training: It ain’t what it used to be

Once well-regarded, training at KSA appears to have undergone cutbacks. “We useto get 40 to 60 hours of training a year, but with the soft economy I haven’t had atraining class in the last nine months,” remarks one consultant. Insiders lament thattheir newfound free time last year could have been better spent. “Formal professionaldevelopment was minimal last year,” says one. “They offered few classes. Online



L I B R A R Y

self-study was the only significant delivery vehicle. [It was a] huge mistake giventhe number of people on the beach.” However, “This year training is returning, indiminished quantities.” When they are available, training programs are known to beuseful and well-organized: “KSA has a full-time team as well as relationships withHR consulting companies to ensure that their training is as up-to-date, relevant andas best administered as possible.” There is “excellent on-the-job educating,” and“classes geared towards soft skills such as change management, facilitation andleadership.” Many groups now offer service sector-specific training as well.

Love thy neighbor

KSA consultants agree almost unanimously that their treatment by management “isone of the greatest aspects of KSA culture.” “The executives are very approachableand treat everyone as if we were all on the same level,” lauds one source. “KSAdoesn’t get stuck on titles.” Another elaborates: “I know that if I have questions orconcerns, the partners in the firm will take my questions seriously. I once had apartner tell me that if I ever felt uncomfortable going to any partner in the firm forhelp, then they weren’t doing their job.” This approach seems to filter its way intoall intra-office dynamics, observes one woman. “KSA is one of the most open andeasygoing organizations I have ever belonged to when it comes to relationships.Everyone is extremely approachable and equally interested in everyone’s well-being.Everyone wants to see you happy and see you succeed and will often do whatever ittakes to make sure you are satisfied on both fronts.”




“KSA doesn’t get stuck on titles.”

— KSA consultant


L I B R A R Y


1345 Avenue of the AmericasNew York, NY 10105Phone: (212) 261-0600Fax: (212) 581-6420www.sternstewart.com


PRACTICE AREASBusiness Management and StrategyConsulting • Communication andTraining in Value Concepts • EVAIncentive Compensation Design •EVA Value-Based PerformanceManagement • Fairness Opinionsand Valuations • FinancialRestructurings and Recapitalizations •Financial Strategy and Policy •Guidance on Mergers, Acquisitionsand Divestitures • LitigationSupport, including expert witnessservices • Measuring and ManagingBrand Value • Software for FinancialModeling and Valuation • WorldwideMVA/EVA Databases

THE STATS

Employer Type: Private CompanySenior Partner: G. Bennett Stewart III2002 Employees: 1922001 Employees: 250

UPPERS

• Good benefits• International opportunities

DOWNERS

• Narrow analytic focus• Overly competitive atmosphere

KEY COMPETITORS

Boston Consulting GroupKPMG ConsultingL.E.K. ConsultingMarakon AssociatesMonitor Group

EMPLOYMENT CONTACT

Ms. Anna [email protected]

Stern Stewart & CompanyV A U L T


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• “EVA experts”• “One-shot wonders”• “Banking meets consulting”• “Looking for an EVA encore”

THE SCOOP

All about value

Stern Stewart is a strategy consultancy that has built its entire operation on a singlepractice: value management. Founded in 1982 by two University of ChicagoBusiness School graduates, Joel M. Stern and G. Bennett Stewart III, the firm uses itstrademarked Economic Value Added (EVA) system to help companies align theirmanagement decisions, financial and acquisition strategies and incentive programswith the creation of shareholder value. Since the firm was founded, more than 300corporations, including SPX, Siemens and Sony, have hired Stern Stewart to installand apply the EVA framework. The firm advises public and private corporations ofall sizes and industries, as well as government agencies and not-for-profitorganizations. Its middle-market EVA practice was established in 1995.

Maintaining the lead

Other companies, including Marakon and The Boston Consulting Group, haveintroduced products similar to EVA. (BCG poetically dubs its system the “TotalBusiness Return.”) But because it was the originator of value-measurement tools,and has accumulated the most clients to its EVA framework, New York City-basedStern Stewart remains, for the moment, the leader of the value management field. Italso has maintained its status with strong marketing efforts. The company publishesarticles in financial journals and trade magazines and offers seminars around theworld. In addition, Stewart, the original “EVAngelist,” (believe it or not, an officiallytrademarked term) wrote The Quest for Value, a treatment of value management.Other company publications include The EVA Challenge, EVA: The Real Key toCreating Wealth and the quarterly Journal of Applied Corporate Finance.

In December 2000 Stern Stewart announced the formation of a partnership withHyperion, a business software company based in Stamford, Conn., to developprograms specifically for implementing EVA methodology. The EVA SoftwareSolution will offer EVA tracking, reporting, “scorecarding” and decision solutions.In 2001 Stern Stewart added a new unit, BrandEconomics, which uses EVA andYoung & Rubicam’s BrandAsset Valuator database to help clients with brandingissues. Also that year, the firm released the findings from The Shareowner AlignmentIndex, a study undertaken in conjunction with Hackett Best Practices to identify thebest practices in internal corporate governance.

Vault Guide to the Top 50 Consulting FirmsStern Stewart & Company


L I B R A R Y

Expanding EVA

Stern Stewart has introduced a companion performance measurement, Market ValueAdded (MVA), which measures the amount of shareholder wealth a company hascreated. The firm compiles annual performance rankings of publicly ownedcompanies according to the MVA measure and publishes them in newspapers andmagazines around the world, including Fortune, the U.K.’s Sunday Times,Germany’s Capital, Canada’s Financial Post, China’s Cajin and Japan’s Toyo Keizei.

Another resource, The Value Vault (yet another trademark!), is a database ofperformance information on 5,000 companies and firms. EVA services are alsoavailable through two software programs, FINANSEER, already in use by more than500 corporations, and EVAntage, an add-on to Standard & Poor’s Research Insightthat provides a financial analysis of 1,300 non-finance companies.

GETTING HIRED

Stern Stewart does not maintain any information about its hiring practice or jobopportunities on its web site, but those interested can find out more by [email protected].

Undergraduates with a background in finance, accounting or economics may applyfor the analyst position. Associates should hold an MBA or equivalent higher degreeand have several years of professional experience. Overall, Stern Stewart looks forcandidates with strong analytical and computer skills. The company prides itself onbeing an entrepreneurial organization and particularly favors self-starters.

OUR SURVEY SAYS

Sources tell us that Stern Stewart maintains a relaxed atmosphere that often belies itscompetitive attitude — both in the industry and within the firm itself. Work hoursand travel generally are near industry standards. We hear salaries “tend to be rathergood compared to the average,” though employees reportedly took a 10 percent paycut this year. Benefits include profit sharing, gym discounts and free refreshments inthe office. The firm has stopped making 401(k) contributions, and sources are notthrilled with their bonuses. “Once upon a time,” laments one, “Stern Stewart had the



largest bonuses in the business. ... That was a long time ago.” The firmsacknowledges that 2001 bonuses were small in some parts of the company, butexpects them to rebound this year.

While some say that executives could do more in the way of how they treat the rankand file (one source says that “partners and VPs rarely interact or even say hello tothe commoners”), the firm is tolerant, if not extremely diverse. “I, myself, am gay,”relates one source, “and there is no issue.” On the other hand, one female employeecomplains that “Stern Stewart is a very ‘frat’ type of environment, and very cliquey.”



L I B R A R Y



Mars Plaza124 Mason StreetGreenwich, CT 06830Phone: (203) 629-9292Fax: (203) 629-9432www.marsandco.com

LOCATIONS Greenwich, CT (HQ)San Francisco, CALondonParisTokyo

PRACTICE AREASStrategy Consulting

THE STATS

Employer Type: Private Company CEO: Dominique G. Mars2001 Employees: 3002000 Employees: 300

UPPERS

• Opportunity for rapid advancement• Top-level clients

DOWNERS

• Weak training• All-powerful chairman

KEY COMPETITORS

Bain & CompanyBoston Consulting GroupMarakon AssociatesMcKinsey & CompanyThe Parthenon Group

EMPLOYMENT CONTACT

[email protected]

Mars & CompanyV A U L T


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• “Small but good”• “Dictatorship”• “Secretive”• “Up-and-coming”

THE SCOOP

Old faithful

Former BCG director Dominique Mars founded his eponymous internationalconsulting firm in Paris in 1979. He claims to have created “the only consulting firmof any consequence to guarantee ‘exclusivity of its services’” to its clients. Marsargues that consulting firms are afforded an extremely intimate view of clientbusinesses, and thus cannot justifiably work for more than one corporation in a givenindustry. Mars & Company therefore serves only a limited (and highly exclusive)group of companies. The firm’s clients are usually Fortune 100 or similarly powerfulinternational companies, and each is typically the top corporation in an industry. Forthe sake of discretion, Mars does not publish the names of its clients. In fact, it doesnot even reveal them to prospective hires until very late in the interview process.

Mars focuses on business strategy — helping clients allocate their resources in orderto maximize returns. It also assists clients with international acquisitions, jointventures and other methods of penetrating foreign markets. Bucking the trend amongmany strategy consulting firms these days, Mars defines “critical paths” (strategies)for its clients, but it does not facilitate implementation.

Entering the United States

In 1982 Mars opened its first U.S. office in Greenwich, Conn. Harvard BusinessSchool professor Malcolm Salter was then hired to be the company’s U.S. president.Since then, Salter has been a major force behind the development of the firm’sbusiness concepts. Insiders say he “has a pretty extensive list of contacts on hisRolodex,” which he often uses to bring in new clients. But no matter how muchpower Salter or other executives may wield, the firm still is owned and controlled 100percent by its founder. Dominique Mars travels frequently between all of the offices,maintaining relationships with clients and courting new business.

A close-knit operation

Though the firm’s 300 consultants work in five separate offices, the firm is extremelyintegrated — in many cases, client teams are composed of consultants from two ormore offices. Because its clients come from so many different industries, Marsassociates gain familiarity with a wide variety of industries and tasks. The firm plansto expand further throughout North America and Europe, and eventually to employ

Vault Guide to the Top 50 Consulting FirmsMars & Company


L I B R A R Y

400 to 450 consultants, who will serve between 30 and 40 clients, according toDominique Mars. The firm operates as “a pure meritocracy” and is serious aboutpromoting from within. In fact, it refers to new hires (both BAs and MBAs) as“apprentices” and will promote undergraduates to the consultant level withoutMBAs. The apprenticeship format also means that top consultants still concentrateon client work and serve as mentors to new hires.

GETTING HIRED

Undergraduates are hired at Mars as associate consultants, while MBAs are hired asconsultants. “For a long time, Mars only hired people from Harvard or Wharton,”explains one source. “Mars has since expanded their recruiting to encompass all IvyLeague schools, MIT, Stanford and all the top business schools.” Mars looks forundergraduates with degrees in engineering, math, economics or any hard science,and MBAs with undergraduate degrees in one of those areas. “A quantitativebackground is a total prerequisite,” another source notes. “In fact, they’ve beenhiring a lot of people with master’s degrees and PhDs in engineering.” The firmprefers to hire multilingual individuals with diverse backgrounds. One consultantdescribes the ideal candidate as “young, single, bilingual, analytical andhardworking.” However, don’t forget your humility or your sense of humor.

Most interviews are conducted at the firm’s offices. The process entails “four to sixinterviews with senior consultants and higher over two rounds.” Candidates also“usually meet with at least three of the four vice presidents at some point in theprocess.” The interviews are heavily case-based, and “are generally offshoots of acurrent or previous project on which the interviewer has worked.”

Unfortunately for applicants, Mars is a tough place to get hired right now. “As theeconomy worsened, it became more difficult to get hired at Mars. We had no layoffs,but we did have a hiring freeze for several months. We have now become even moreselective with our new hires,” comments one insider. However, those candidates thatsuccessfully make it through the hiring process reportedly have the opportunity tomove up rather quickly.



OUR SURVEY SAYS

The stealth firm

Mars & Company is “a private firm” with a “stealthy reputation,” sources say. “Itmakes no effort to attract attention to itself,” a contact explains. “The quality of workand the projects at Mars are very high,” adds another. “From the start, you get towork with high-level consultants, and you deal with presidents from the companiesyou are working for.” Around the offices, there is a “very businesslike” atmospherewith a “‘let’s get the work done’ attitude.” On the other hand, the firm has “a lot ofyoung, nice people to work with,” and is “not very cutthroat.” “Because the office isrelatively small, everyone knows each other,” remarks a source in Greenwich. “Thathelps a lot when starting on new projects.”

My least favorite Martian

The rank and file “are generally treated with a tremendous amount of respect fromour superiors — with whom we work on a day-to-day basis — making for a verypleasant working relationship.” This is the case because “Mars generally onlypromotes from within, so everyone at the top has gone through the ranksthemselves.” Everyone but one person, that is. Some complain about being “underthe thumb of the chairman, who maintains 100 percent of equity in the firm.” Saysone insider, “Our overbearing owner does not seem to care much about our generalsatisfaction, and this results in a much lower employee morale than I would havehoped for.”

Not known for training

After many years without one, last year Mars created and implemented a trainingprogram which works in concert with the on-the-job exposure all new hires get. Still,not everyone is sold on it. “We receive very little training,” grumbles one source.“Most of it is on a learn-as-you-go basis. If you want something around here, youhave to ask for it.” Consultants are pleased, however, that “if you show that you cantake on significant responsibility, you’re going to get it.” “You move beyond numbercrunching,” explains an insider. “Early on, you’re working with CEOs of some reallyimportant companies.”



L I B R A R Y

Three years equals six figures

Mars reportedly will promote non-MBAs to the consultant level, which means“MBA-level salaries.” Indeed, “after three years, you can make a six-figure salary.”Given the firm’s strong performance in 2001, complaints linger that Mars offers “nosigning bonus, no guaranteed first-year bonus, and no bonuses below the consultantlevel regardless of [one’s] background.” Comments one six-figure earner, “Mr. Marsmaintains all control over compensation decisions despite having never worked withmost of the staff. There is no rationale or explanation for the raises or bonuses — orlack thereof — that we receive, making it a somewhat frustrating process.” Thatfrustration is somewhat offset by Mars’ benefit package, which includes “lots ofvacation and a great health care program — even LASIK eye surgery is covered.”Other perks include dry cleaning service, a “free gym membership,” an “annual outingto tennis matches at the U.S. Open, and a weekend ski trip, paid for by the firm.”

Men are from Mars

Mars “is a very young firm, in the sense that a lot of the people working here arerecent grads from both undergraduate and business school.” This makes working atMars “fun — all week we bust our butts, so on Fridays, especially in the summer, we goout to a bar in Stamford and have some drinks.” There are also company softball andbasketball teams — “Dominique used to play; now he’ll come to a game once in awhile.” While Greenwich is “a male-dominated office,” says a source, “I do not believethat this is by any conscious choice of the firm.” Employees also say there are “a fairamount of minorities here, but it is mostly limited to the senior consultant level andbelow.” They point out, though, that “we do have a lot of international people.”

Keeping busy

At the moment, Mars “has more business than [we] know what to do with.” Says oneconsultant, “Mars is a lean shop. Almost everyone is staffed all the time. This is ahuge plus, especially in a down economy.” Work hours “are reasonable for theconsulting industry,” though as is the case with most firms, “there can be a great dealof variability in the workload from one project to another.” Fortunately, “There’s noreal face time — people show up at 9:30 or 10 a.m., and that’s OK.” On the flip side,“if there’s work to be done, and you’re not in the office, there’s a problem.” Insidersadmit that “people sometimes take two- or three-hour lunches, or run errands if theyhave to. They just make sure to get their work done.”



Stay put

Prospective Martians should not expect to log too much airport time. “Marsconsultants do not do a lot of traveling,” observes an insider. “Typically, most of thework is done in the office, which is a huge advantage over other top consulting firms.”Adds another, “Reasons for travel are generally limited to meetings, data gathering,and so forth. Face time at the client site is not a concern because of our ‘one-client-per-industry’ business model. Even if they don’t physically see us, our clients knowthat we are directing all of our attention to their most immediate problems.” Manyemployees do get pretty familiar with the train, however; about “60 percent of theoffice does the commute” from New York City to the Connecticut suburbs.



L I B R A R Y



The Wanamaker Building100 Penn Square EastPhiladelphia, PA 19107Phone: (215) 861-2000Fax: (215) 861-2111www.haygroup.com

LOCATIONS Philadelphia, PA (HQ)73 offices worldwide

PRACTICE AREASChange ManagementCompensation Information ServicesCompensation Strategy and PracticeCompetency ModelingE-BusinessEmployee BenefitsEmployee and Customer SurveysExecutive Assessments Executive CoachingExecutive RemunerationIncentive DesignLeadership DevelopmentPerformance ManagementWork and Organizational Structure

Hay GroupV A U L T


32


• “Well-respected in their niche”• “Bland” • “Slick with some meat behind

them”• “Expensive HR systems”

THE STATS

Employer Type: Private CompanyCEO: Bernd Schneider2002 Employees: 2,2602001 Employees: 2,500

UPPERS

• Deep HR expertise

DOWNERS

• Low brand recognition

KEY COMPETITORS

Hewitt AssociatesMercer Human Resource ConsultingTowers PerrinWatson Wyatt Worldwide

EMPLOYMENT CONTACT

[email protected] Phone: (215) 861-2334

THE SCOOP

Make Hay while the sun shines

Founded in 1943 in Philadelphia — where it is still based today — Hay Group beganas a side project for Edward N. Hay, the head personnel officer at First PennsylvaniaBank. His first big engagement, a contract with General Foods to evaluate 450management jobs in 1945, allowed Hay to quit his job and devote himself full timeto his nascent “people and jobs” consulting firm. But it wasn’t until the 1960s thatHay Group began expanding, first to Toronto and then both nationally andinternationally. The growth and success led to a buyout of the company by ad giantSaatchi & Saatchi in 1984. However, then-CEO Chris Matthews countered with amanagement buyback in 1990, and Hay Group has remained privately held by itsown management ever since. Meanwhile the firm has continued to grow; the newestof its 73 worldwide offices opened in Santiago, Chile in 2001.

And the sun does shine

Today, Hay Group retains its focus on management consulting in the humanresources domain. In 1997 it introduced the Hay PayNet, the first interactive, onlinecompensation information system. Still a strong component of its services, HayGroup introduced a revamped Hay PayNet in mid-2000 with added capabilities forusers. All told, Hay Group’s compensation databases contain more than 5,000,000records from thousands of major corporations around the globe — an example ofhow the Internet actually can be used effectively to make money.

Hay’s management consulting arm is a highly regarded specialist in such areas as jobevaluation, salary management, performance measurement and incentive plans. Italso includes executive coaching to clients such as Gillette, Reuters, Shell and Sony.HRXpert is another of the firm’s proprietary human resources software systems. Thefirm has remained active in international work — recent engagements include an auditof the New South Wales Police Service’s reform process, an HR assessment for India’sAV Birla Group and a salary evaluation for Scotland’s Senior Salaries Review Board.

Share their sunshine

The Internet isn’t just for online shopping and downloading purloined music. It’salso a good tool for companies that need to manage their HR needs. Seeing anopportunity, Hay Group has developed several tools to help companies manage their

Vault Guide to the Top 50 Consulting FirmsHay Group


L I B R A R Y

“people needs,” including emotional intelligence programs and a training resourcesgroup. The “Organization Effectiveness and Management Development” practiceaddresses people issues with actual software. The firm also has struck a talentmanagement solution alliance with software provider Knowledge Planet. Throughthese various human resources consulting tools, more than 8,000 clients, including1,000 of the world’s largest companies, use Hay Group.

Getting published

Hay Group helps Fortune compile its annual list of the 100 World’s Most AdmiredCompanies, based on nine attributes, including quality management, financialsoundness and community responsibility. In February 2000, the firm teamed up withthe Financial Times’ web site as the new content provider for the site’s CareerAdvisor Channel, which contains industry profiles and salary data for over 100 jobs,in up to four different management levels.

GETTING HIRED

Hay Group proudly touts that it hires employees with a wide variety of backgrounds,including “academicians, actuaries, diplomats, economists, executives, linemanagers, physicians, psychologists and researchers.” Prospective employeesshould send their resumes via e-mail or snail mail to the particular office in whichthey are interested. A list of locations and addresses is available on the firm’s website, including links to the Hay Group offices outside the United States, some ofwhich contain more information about career opportunities.

Vault Guide to the Top 50 Consulting FirmsHay Group



“[We] don’t have thatstuffed-shirt mentality.”

— Grant Thornton LLP insider


L I B R A R Y


Prudential PlazaSuite 800130 E. Randolph StreetChicago, IL 60601Phone: (312) 856-0001Fax: (312) 861-1340www.gt.com

LOCATIONS Chicago, IL (HQ)49 offices nationwide

PRACTICE AREASAssuranceConsultingCorporate FinanceInternationalTax

THE STATS

Employer Type: Private CompanyCEO: Edward E. Nusbaum2001 Employees: 2,7002001 Revenues: $380 million2000 Revenues: $326 million

UPPERS

• Continued growth

DOWNERS

• Recent legal troubles

KEY COMPETITORS

AndersenCap Gemini Ernst & YoungDeloitte ConsultingKPMG ConsultingPwC Consulting (Monday)

EMPLOYMENT CONTACT

[email protected]

Grant Thornton LLPV A U L T


33


• “Scrappy”• “Second-tier”• “Efficient”• “No identity”

THE SCOOP

Almost famous

Grant Thornton LLP is the U.S. arm of Grant Thornton International, an accountingand consulting firm with more than 650 offices in 109 countries and some 21,000employees. Many of its international offices are independent affiliates, and many ofthose are dominant players in their local business circles. GT LLP, headquartered inChicago, has more than 300 partners in 49 offices and is the accountant of record formore than 300 publicly traded clients. But while such numbers render GT one of theworld’s largest professional services firms, it remains just outside the circle of mega-firms constituting the Big Five. (Of course, with Andersen’s recent woes, GrantThornton may be closer to the magic circle than ever.)

New times, new tactics

Perceiving a need to expand beyond its number-crunching roots, in the spring of 1999Grant Thornton developed an operating model that enabled it to evolve from atraditional public accounting firm to a wealth creation, enhancement and preservationfirm. The firm is now structured around two units: Business Advisory Services,which includes professional services, tax consulting, enterprise solutions andcorporate finance and risk management; and Financial Advisory Services, whichencompasses the Family Business Consulting, Personal Financial Planning, LegalServices, and Life, Property and Casualty Insurance departments.

Grant Thornton’s Entrepreneurial Consulting Services group serves middle-marketcompanies in four main areas: growth management, business performanceimprovement, information technology and industry-specific niche services. InOctober 2000 GT announced it would sell its 450-person e-business consultinggroup, now known as Experio Solutions, to Japanese computer giant Hitachi in a$175 million deal.

Putting on a high-tech face

As a part of Grant Thornton’s makeover, it has spent the last few years repositioningitself vis-à-vis the high-tech world with a string of new ventures, partnerships andsponsorships. In October 2000, GT formed a strategic partnership with BLGVentures, an incubator for minority-owned technology businesses. Just prior to that,in September 2000, GT launched BLAST! (Business Launch and Acceleration

Vault Guide to the Top 50 Consulting FirmsGrant Thornton LLP


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Services for Technology companies), a new service aimed at early-stage technologycompanies that combines services such as compensation planning, tax consulting,capital raising and IT consulting. And more recently, in February 2002, it announceda strategic alliance with Minnesota-based Adaytum to resell the financial softwaremaker’s e.Planning program, which helps companies manage their budgetingprocesses in close to real time.

Run-in with the law

But Grant Thornton’s past few years haven’t been all rosy. In October 2001 the FDICfiled a claim against the firm, accusing it of misleading regulators about fraud andnegligence at the First National Bank of Keystone, W. Va. The previous May theCarnegie International Corporation, an Internet support company, filed a $2.1 billionsuit against GT, alleging that it had failed to provide contracted accounting servicesand that it had committed fraud. In July 2001, in a twist that eerily foreshadowed theEnron/Andersen scandal a few months later, Carnegie asked for a default judgmentafter it learned that a GT senior partner had ordered key documents destroyed. Moretangles ensued in November, when GT admitted it had withheld other key documentsduring the discovery phase of the trial, leading the judge to suspend the proceedingsuntil an investigation could be completed. The special master appointed toinvestigate concluded hearings in June 2002, but the firm is still awaiting theoutcome of the trial.

Nevertheless …

Despite Grant Thornton’s legal struggles, the company continues to keep up with,and even outpace, its larger competitors. In 2001, for the fifth straight year, itexpanded its auditing practice faster than any of the Big Five, and it was the onlynational firm to post a net gain in clients — it even managed to steal 31 from the BigFive (while losing seven). GT has also expanded its workforce courtesy of one of itslarger (though soon to be former) competitors, acquiring several of Andersen’s U.S.offices and additional former Andersen middle-market professionals. Through June2002, the firm had picked up more than 40 partners and nearly 400 other staffers fromthe moribund auditor. Also in the wake of the Enron/Andersen scandal, GT has takenan industry lead in calling for self-imposed professional responsibility regulations —though critics note that it has yet to call for a stricter division between auditing andconsulting services, an often murky distinction.



GETTING HIRED

Grant Thornton’s web site has a fairly helpful career page, with a link to its joblistings. Those not going through on-campus career centers should send resumes andcover letters directly to their GT regional office of choice. Cover letters shouldinclude the applicant’s career objectives and salary history. While the interviewprocess varies, it is essentially a 20- to 30-minute meeting that includes a review ofeducational experience and career interests and a discussion of the firm’s teamworkenvironment. This is followed (for selected applicants) by an office visit that consistsof interviews with three GT professionals, a panel of recent college grads and lunchwith both staff members and partners. Candidates should expect to hear back fromGT within a week.

OUR SURVEY SAYS

The pros of the middle market

Grant Thornton LLP may hover just outside the professional services industry’s innercircle, but as one source explains, “That’s not really saying too much, because the gapbetween the smallest Big Five firm and us is huge.” Yet the middle market has itsadvantages. Compared to larger firms, insiders report, GT’s regional offices havemore autonomy, and the atmosphere in general is “much more laid-back.” Accordingto one employee, “[We] don’t have that stuffed-shirt mentality.” Furthermore, “Youare rarely, if ever, stuck on one project” when working with medium-sizedbusinesses. Another adds, “Our clients are not too large — where it’s difficult to seethe whole picture — and not too small. You also have the advantage of drawing onnationwide expertise if you need it.”

Mixing it up

Most GT insiders feel their firm makes efforts to promote diversity, and one tells usthat being a member of a minority group “would not affect your career in any way.”However, another warns, “I honestly would not want to be a woman in my practice.My group is very much male-dominated.” The same contact qualifies, though, thatthe firm’s New York office has “several female managers.”



L I B R A R Y


John Hancock Tower200 Clarendon Street, T-33Boston, MA 02116-5092Phone: (617) 425-3000Fax: (617) 425-3132www.crai.com

LOCATIONSBoston, MA (HQ)14 offices worldwide

PRACTICE AREASAerospace and Defense • AntitrustEconomics • Auctions and E-Commerce • Business Strategy •Chemicals and Petroleum • Damages • Environmental •European Competition Policy andLitigation Support • Finance andAccounting • Intellectual Property •International Trade • Market Analysis • Mergers and Acquisitions • Metals, Materials andFabricated Parts • Pharmaceuticals •Survey Research • TechnologyManagement • Transportation

THE STATS

Employer Type: Public CompanyStock Exchange: NasdaqStock Symbol: CRAIPresident and CEO:James C. Burrows 2002 Employees: 4842001 Employees: 4122001 Revenues: $109.8 million2000 Revenues: $82.5 million

UPPERS

• Interesting work• Lack of egos

DOWNERS

• Crunch times intense• Few women in senior management

KEY COMPETITORS

Boston Consulting GroupBrattle GroupLECGNERA

EMPLOYMENT CONTACT

Amy ConnollyRecruiting ManagerFax: (617) [email protected]

Charles River AssociatesV A U L T


34


• “Good econ firm”• “Middle of the pack”• “Economic eggheads”

THE SCOOP

The nontraditional consulting firm

Founded in 1965, Charles River Associates (CRA) is an internationally recognizedeconomics and business consulting firm. Headquartered in Boston, the firmspecializes in dispensing advice in the areas of litigation, regulation, finance andstrategic management. The firm works with a diverse group of clients, includingmajor law firms, domestic and foreign corporations, public and private utilities, andgovernment agencies around the world. Revenues for fiscal 2001 increased nearly33 percent from the previous year to $109.8 million, though the firm’s net incomedeclined to $7.4 million from $8.8 million in 2000.

Super specialties

CRA is composed of three main practice areas: competition, finance and businessconsulting. Litigation and regulation-related work account for about one-half of thefirm’s revenue. The goal of the practice is to help law firms and other clients byproviding economic analysis and expert support in litigious areas such as antitrust,M&A, damages, finance, international trade, environmental issues, transfer pricingand regulation. In recent years, CRA has provided consulting services for 19 of thetop 25 law firms in the United States and 14 of the top 25 industrial companies.

CRA’s business consulting practice, which accounts for the other half of the firm’srevenues, specializes in business strategy, operations management and policyplanning. The practice’s industry focus is varied, with project representation inaerospace and defense, pharmaceuticals, chemicals and petroleum, transportation,metals and materials, energy and utilities and telecommunications. The firm boostedits utility and regulatory consulting capabilities in August 2001 when it acquired aportion of PA Consulting’s Energy Economics practice for an undisclosed sum. Andin April 2002, CRA acquired the Chemical and Energy Ventures business of bankruptconsultancy Arthur D. Little for just under $7 million. The purchase added 91 staffmembers to the firm.

Experts in their fields

CRA’s consultants typically hold PhDs or MBAs and specialize in finance,economics, technology, energy policy, metals, engineering or minerals and materials.These consultants are often called upon to testify as expert witnesses in a variety of

Vault Guide to the Top 50 Consulting FirmsCharles River Associates


L I B R A R Y

cases before the Federal Trade Commission and the Department of Justice. Forexample, CRA chairman and MIT economics professor Franklin M. Fisher was anexpert witness on behalf of the DOJ in the government’s antitrust case againstMicrosoft. CRA staff supported Professor Fisher’s testimony with research, analysisand assistance with trial exhibits. Headed by Professor Steven Salop, a team of CRAconsultants also provided research to the DOJ that enabled Procter & Gamble’s $4.95billion acquisition of Clairol to go forward. The deal was finalized in November 2001.

Getting down to business

A substantial portion of CRA’s new engagements has come from government clients.For example, in July 2001 the firm published its forecast of the energy market for theOntario Energy Board. And in October of that year, the New York State EnergyResearch and Development Authority (NYSERDA) and the New YorkIndependent System Operator (NYISO) selected Charles River to analyze the state’senergy infrastructure.

Outside of the public sector, the firm conducted a September 2001 study of theworkplace productivity of smokers vs. nonsmokers in conjunction with medicalresearchers MEDTAP International and pharmaceutical company GlaxoSmithKline.In October 2001, Charles River released “Mobility 2001,” part of a transportationstudy conducted with the Massachusetts Institute of Technology on behalf of theWorld Business Council for Sustainable Development (WBCSD).

Going places

Since its May 1998 IPO, the firm has increased its expansion efforts substantially. Inits first year as a public company, CRA opened new offices in Toronto, Oakland andLos Angeles. The following year, it opened another office in Los Angeles and one inMexico; 2000 saw the firm open branches in London, Australia, New Zealand, SaltLake City and College Station, Texas. Since then CRA also has opened offices inHouston and Philadelphia.

GETTING HIRED

The career opportunities section of CRA’s web site proves a helpful resource for jobseekers. The site offers a list of frequently asked questions about working at CRA, a



collection of analyst profiles and an overview of the recruiting process for junior andsenior staff positions, as well as contact information for both.

To fill its analyst positions, CRA recruits undergraduates from top colleges anduniversities, college consortia and campus resume referrals. (The top five schools forundergraduate recruiting are Colby, Wellesley, Harvard, MIT and Georgetown.)CRA also accepts direct applications. The firm encourages applications fromfinance, economics and engineering majors, though it encourages candidates fromany major who are analytical problem solvers with research experience to apply.

CRA recruits on campus for MBA candidates but also invites them to submit write-in applications. Nearly half of CRA’s professional-level employees hold advanceddegrees — the firm’s associates typically hold master’s degrees in economics,engineering or computer technology. Higher-level professionals, insiders say, “areeconomists with PhDs — many of them are former college professors who didn’t gettenure or wanted more money.”

The recruitment process usually consists of initial interviews on campus followed by“second-round interviews in the office with five or six people.” Other candidatesmay be screened by phone, then invited to the firm to meet with managers. Insiderssay “You’ll meet with the people who will be your managers as well as with peoplein the position you’re applying for.” The firm looks for candidates with “strongquantitative and communications skills.” Case questions “are not a standard part ofthe interviewing process” for candidates who are interested in economic consulting,reports a contact, though “Some people use them from time to time.” In fact, oneinsider explains that “Business consulting candidates get at least two case interviews,which tend to be related to the type of work we do here. The other interviews arefocused on the candidate’s resume and research experience.” Also, be prepared totalk about “any research you have done at school or in another job.” “People areparticularly interested in your research experience,” explains one associate.

Insiders also tell us that applicants should be sure of their commitment to economicconsulting — “It’s much more analytical and quantitative than managementconsulting.” Another source offers this advice: “Make sure you learn about the firmand want to work here.”



L I B R A R Y

OUR SURVEY SAYS

Back to school

Consultants and research associates at CRA enjoy the firm’s “collegial” and“academic” culture, calling it “very much like a university.” Recent hires like thefact that CRA “is one of the few places where you can use things you learned inschool in a professional setting.” “The type of analysis we deal with is moresophisticated than what they do in regular management consulting or I-banking,”boasts one contact. “Lots of senior people have PhDs and love teaching,” an insidercomments, while another observes that “many senior people remind me of collegeprofessors.” Others maintain that though the firm is “a bit on the nerdy sidesometimes,” it’s refreshing to be at a place where “egos are not as much a problemas at many other firms.”

Most undergraduate recruits stay at CRA for up to three years before going tograduate school, usually to get an MBA, a PhD in economics or a JD. One contacttells us that analysts “have a good track record as far as people getting into goodschools.” Another source informs us that the “analyst/associate track is designedfor college grads who want to work for a couple of years before going back tograduate school.”

Gender and ethnic diversity

CRA insiders tell us that the female representation is strong at the lower levels buttapers off toward the top of the food chain, one CRA associate observes, though,“That’s probably because there are not many females with PhDs in economics.”“The firm is working hard on increasing diversity,” another associate begins. “Interms of nationalities, the place is very diverse.” One insider adds that CRA is “verywelcoming to gays and lesbians,” while another employee notes that CRA has“several people in top management who are openly gay.”

Cheap food, few suits

Consultants at the firm dress “business casual Monday through Thursday and casualon Fridays. “During the week, many people, VPs included, dress casually if theydon’t have to meet with clients or interact with others much.” Consultants in Bostonsay, “Our office is in a great location” with a beautiful view from the 33rd floor of



the John Hancock Tower. Inside, the offices are “very nice and extremelycomfortable, without the excess of a law or an accounting firm — no aquariums.”



L I B R A R Y



1800 Sherman AvenueSuite 700Evanston, IL 60201Phone: (847) 492-3600Fax: (847) 492-3409www.zsassociates.com

LOCATIONS Evanston, IL (HQ)10 offices worldwide

PRACTICE AREASAnalytic Data WarehousingCompensation SystemsCustomer SegmentationDecision Support SystemsForecastingGeographic DeploymentMergersMicromarketingProduct Marketing StrategyResource AllocationSales Force Size & StructureStrategic Market Research

THE STATS

Employer Type: Private Company Managing Directors: Andris A.Zoltners and Prabha K. Sinha2002 Employees: 6502001 Employees: 550

UPPERS

• Great client contact• Extensive area knowledge

DOWNERS

• Limited exposure to industries• Somewhat limited choice of

engagements

KEY COMPETITORS

AccentureBooz Allen HamiltonNavigant Consulting

EMPLOYMENT CONTACT

www.zsassociates.com/careers

ZS AssociatesV A U L T


35


• “Good group of people”• “Marketing focused”• “Whoever goes there seems to

like it “• “ZZZZZZ”

THE SCOOP

An academic background

ZS Associates is an Evanston, Ill.-based marketing and sales strategy consulting firm.It began in 1983 as a moonlighting job for two Northwestern professors, AndrisZoltners and Prabha Sinha (Z and S in the company name), who realized that theycould apply their academic research in pharmaceuticals to “real life.” Since then ZSAssociates has expanded its expertise to 19 industries in more than 70 countries.Today, the firm maintains Zoltners’ and Sinha’s academic bent — half of all ZSconsultants have graduate degrees. More than 50 percent of ZS consultants holdMBAs or MS degrees, and 11 percent have PhDs.

ZS has seen phenomenal success over the course of its lifetime, with a compoundedannual growth rate of 20 percent; from 1992 to 2001 it enjoyed a 24 percent annualgrowth in revenue. Much of its success derives from its strong client relationships— more than 80 percent of ZS’s business comes from repeat customers. As a resultof its good fortunes, the company opened Boston and downtown Chicago offices in2001; it also went on a hiring spree, with a 43 percent jump in staffing between 2000and 2001. New offices in Toronto and Milan opened in 2002.

Pharmaceuticals and beyond

Despite ZS’s success in other industries, its efforts are focused overwhelmingly onpharmaceuticals — a full 90 percent of its business over the lifespan of the firm. Themajority of its work is for large multinationals, but its expertise spans the field, withexperience in everything from over-the-counter markets to biotechnology research.Almost half of the firm’s engagements involve strategic marketing and sales analysis;other ZS specialties include forecasting sales and geographic sales territoryalignment. Nevertheless, ZS may be trying to branch out beyond pharmaceuticals.It has made efforts to appeal to a wider spectrum of industries (including financialservices, consumer products and high tech), and in January 2002 it sold its Cozintsubsidiary, a specialist online health care research and consulting firm, to Britishinformation firm United Business Media.

Team ZS

ZS places a strong emphasis on its team-centered approach. Associates work inteams of two to six people, which may include any combination of business

Vault Guide to the Top 50 Consulting FirmsZS Associates


L I B R A R Y

associates, operations research analysts and business information specialists workingwith a consultant, a manager and/or a principal. The firm approaches larger projectsby assigning multiple teams to discrete facets of the case.

A global reach

For a relatively small firm, ZS Associates has a surprisingly global purview. Twenty-one percent of the firm’s staff is based in its European offices. There are also plansto expand into Japan and Latin America. In any given year ZS has clients in morethan 30 different nations, and a full 40 percent of its business is international. Allemployees have the opportunity to work or even to be based abroad.

A way with maps

Since its founding, ZS Associates has produced a number of mapping softwareprograms to assist its sales and marketing initiatives. Its first, the aptly namedMAPS, was released in 1983 and since has been updated as MAPS 2000. Mappix,another program, can be fed data which it then displays geographically. And eMaps,released in 2001, is a Web-based program that enables field managers and centraloffices to coordinate sales and marketing alignments more easily.

Training from A to Z

The two-week New Employee Orientation (NEO) program welcomes new hires toZS Associates and covers basic tools, resources and practice areas. NEO training issupplemented with ongoing sessions including a brown-bag presentation series, skill-building courses and expert sessions, which can amount to 20 days in the first year.ZS also has a mentoring program — a professional development manager facilitatescareer growth within the firm by acting as a mentor, a liaison with project managersand schedulers, and an administrative manager, helping with hours, vacation andperformance reviews.

GETTING HIRED

ZS Associates hires for its business analyst, business associate, business informationspecialist, market research consultant, operations research analyst, softwaredeveloper and consultant positions. All call for a strong academic record and a



variety of characteristics from initiative and motivation to dedication, organizationand a committed work ethic. And ZS is nothing if not selective — as one respondenttells us, “At interview summary meetings, I’m always amazed at how many greatpeople we interviewed and how few we accepted.”

The firm hires BAs and BSs for its operations research analyst, business associate,software developer and business information specialist positions. Interviews forundergraduates usually consist of two “painless” rounds, “one on campus and one in the office.” The first is Q&A with a possible mini-case question, while thesecond involves an interview with a principal, several case questions and abehavioral discussion.

MBAs and PhDs, which the firm hires as consultants, endure two rounds ofinterviews with two and four interviews, respectively. The first round involves atleast one interview with a principal, and the second involves at least two. Round oneincludes one case and one behavioral interview; round two has one behavioral, twocases and one presentation, the last in which the “candidate gives a presentation onsome project from school or prior work experience.” The types of cases are variedto test different skills, but you can expect “typically one unstructured case to evaluatestrategic thinking, one structured case with tables, and one with numbers to evaluatecomfort with using data for decision making.”

ZS Associates also operates a summer internship program for MBAs andundergraduates. Interns are placed on both client and internal projects, and mayreceive a full-time offer if they are deemed promising potential employees.

OUR SURVEY SAYS

Columns and rows

Insiders characterize ZS Associates as a place where you “work late, price low anddeliver a lot of results,” but also one where you see “junior analysts get burned outrepeatedly.” On the other hand, those who have stuck around say the firm is one with“a collegial, non-hierarchical culture. Since starting as a consultant, I have alwaysfelt that I was treated with respect and consideration by supervisors.” ZS looks for aparticular kind of applicant — one who is “comfortable with numbers and using data



L I B R A R Y

for analysis in a business-intuitive manner.” If this isn’t you, it might be a good ideato try another firm.

ZS organizes its projects like an Excel spreadsheet, with clients as columns and“efforts to develop practice areas as rows.” This makes things look very clear onpaper, though some tell us it also tends to isolate consultants and makeconsultant/manager interaction more difficult: “Each principal seems like a separatebusiness unit. So if your work benefits a single partner, you are much better off thanif your work is practice-area oriented across multiple partners. Fast track practicallyrequires having a single top principal as your personal development manager.” Butunlike many firms, which adhere to a strict up-or-out promotional structure, ZSAssociates allows its employees to work at their own speeds, scaling back their hoursor working different schedules to accommodate family needs. As one insider reports,“I must honestly say that the company is very family-friendly. I myself and othershave been able to slow down a bit for family reasons without any apparent negativeimpact on ratings or bonuses. Many female colleagues have similarly appreciated thelifestyle after starting families.”

ZS? Never heard of ‘em

One negative that some respondents cite is the firm’s lack of name recognition,especially outside the pharmaceuticals industry. As ZS grows this is changingrapidly, but it can still be a hindrance when trying to land big contracts. There is areal “lack of CEO-level connections,” we hear. Even worse, some clients tend tothink of ZS as a pharmaceuticals-only consultancy: “Occasionally it is frustrating tobe not considered for projects in other areas because we are niched in the client’s mind.”

The benefits of ZS

Compensation at ZS isn’t the best in the business; as one ZSer tells Vault, “I’malways told it’s higher than other firms, but experience has shown me it’s average.”The firm typically offers consultants a 5 to 10 percent raise each year, along with a 5to 15 percent bonus, though we hear that “A few stars get rewarded highly, with$60,000 bonuses for managers.” ZS also offers tuition reimbursements for coursesrelevant to an employee’s work. And we hear the digs are great across the board, withconsultants moving into their own offices after only two years.

ZS training goes hand in hand with its strong ties to the Northwestern academiccommunity. “ZS has a great two-week orientation course,” one source says, as wellas “a custom in-house mini-MBA with top MBA professors,” though there’s “little



encouragement to attend workshops or conferences.” On the other hand, travel forbusiness isn’t encouraged, either; ZS “rarely staffs people at the client site,” andtravel is undertaken only “as required for kickoff, review, progress and finalmeetings.” Travel does, however, increase “as you move up in the firm, because youwill be managing more projects (and meetings) at the same time.” And oneconsultant tells us that travel may soon increase across the board: “We do plan toincrease the percentage of time spent with clients as our practice areas expand, andtravel will likely increase.”

Not for everyone

For all its perks, though, sources tell Vault that ZS isn’t for everyone. Despite fewconsultants claiming to work on weekends, hours at ZS can be grueling, and the workis constant. “There is no concept of ‘beach’ at ZS — the word is just never used,”one source comments. As a result, another source reports, “turnover has got to be 30to 40 percent, even in the recession.” According to ZS, however, this is anexaggeration; the firm reports that its turnover rate for 2001-2002 was just 12 percent.

And while ZS is still tiny relative to many of its competitors, “It is growing rapidly,so some of the ‘small-firm’ culture has disappeared.” As a result, much of the upper-level management is dedicated to expanding ZS’s client roster, and there is “definiteencouragement to ‘minimize use of partner time.’”

ZS has a 50-50 male/female ratio at the associate level, and while that number dropsoff significantly at the management levels (as at most firms), the ratio at some officesremains quite high. At the Princeton, N.J. office, for example, the manager corps is50 percent female. “Persons of color make up the majority of ZS,” we’re told, thoughinsiders claim that there are “zero or nearly zero African-Americans in the firm.” Thefirm tells us, however, that the actual figure is 5 percent.



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2300 West Plano ParkwayPlano, TX 75075-8499Phone: (972) 577-0000Fax: (972) 340-6100www.perotsystems.com

LOCATIONS Dallas, TX (HQ)35 offices worldwide

PRACTICE AREASCustomer InteractionInformation Integration & Customer

ManagementInfrastructure & Network ServicesStrategic Consulting

THE STATS

Employer Type: Public CompanyStock Symbol: PERStock Exchange: NYSEPresident & CEO: H. Ross Perot Jr.2001 Employees: 8,0002000 Employees: 7,5002001 Revenues: $1.2 billion 2000 Revenues: $1.1 billion

UPPERS

• Great internal training

DOWNERS

• Recent layoffs

KEY COMPETITORS

Computer Sciences CorporationElectronic Data SystemsIBM Global Services

EMPLOYMENT CONTACT

[email protected]

Perot SystemsV A U L T


36


• “Fresh and clever”• “EDS lite”• “Steady”• “Fading”

THE SCOOP

Ross Perot’s second effort

Soon after selling EDS to General Motors for a cool $2.5 billion, H. Ross Perot Sr.,who would later become better known as a colorful presidential candidate, started hissecond systems consulting firm, the aptly named Perot Systems, in 1988. In August2000, H. Ross Perot Jr. — already familiar as the former majority owner in the DallasMavericks, a real estate developer, and the first person to fly around the world in ahelicopter — succeeded his father as president and CEO. Ross Jr. had spent 12 yearson the board of directors and eight months immersing himself in the business. RossSr. remains as chairman of the board.

A new structure

Perot Systems revamped its structure in January 2001 to focus on three verticalindustry groups and three horizontal services sectors. The three industries aremanufacturing, health care and finance, which together constitute two-thirds of PerotSystems’ revenue. The main service areas are business consulting, softwareengineering and integration, and technology infrastructure services. As a result of therestructuring, Perot Systems laid off 200 people, 2.5 percent of its total staffworldwide, mainly in administrative and other non-billable positions.

When Perot Systems went public in February 1999, Perot Jr. had promised that thecompany was at a point where it would continue to turn growing profits. However,2000 proved troubling for the company, as it lost two major clients, East MidlandsElectricity in the United Kingdom and Switzerland’s UBS Warburg AG, and sawrevenue decline from the previous year. The company laid off an additional 350employees in May 2001 after a rough second quarter but announced, according toThe Dallas Morning News, that it’s now “ready to perform more like a full-fledgedcomputer services company.”

Be aggressive

Perot Systems has sought to improve its lot through a series of aggressive strategicmoves. In July 2001 the firm entered into a marketing, sales and consulting alliancewith Pennsylvania-based financial services software company Sanchez ComputerAssociates. In that same month, Perot acquired the assets of Advanced ReceivablesStrategy, Inc. (ARS), a Nashville hospital revenue cycle management services

Vault Guide to the Top 50 Consulting FirmsPerot Systems


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provider. The 650-employee company now operates as a subsidiary of PerotSystems. The firm struck another major alliance that September, signing a $20million agreement with Qwest Communications International focusing on the hostingand managed services marketplace. And in January 2002, Perot purchased Dallashealth care claims processing firm Claim Services Resource Group to augment itsbusiness process outsourcing services strength.

Several big-money contracts have also come through the pipeline, boosting Perot’sfortunes. July 2001 saw the firm sign a 10-year, $600 million outsourcing agreementwith Catholic Healthcare West, a large network of hospitals and medical practicegroups headquartered in San Francisco. Also that month, Tenet Healthcare Corp.extended an existing consulting contract by 10 years, a deal worth a total of about$550 million. Perot Systems is not just about health, however — in September 2001it signed a multiyear technology services contract with Burger King Corp.

Negative energy

Some of the firm’s high-profile work has not been as positive, however. In the mid-1990s Perot Systems began building software systems used to run the state ofCalifornia’s power markets. Subsequent to beginning the project, the firm tried tosell advice to energy traders on potential strategies for analyzing markets and tradingpower in the state. Now, four years later, the firm has been accused of sharingproprietary information with the energy traders, who then used the information tomanipulate energy prices. The New York Times reported in June 2002 that CaliforniaGov. Gray Davis called for an investigation by the Federal Energy RegulatoryCommission and that the state attorney general’s office issued a subpoena askingPerot Systems for information on presentations it had made to energy traders in 1998.The firm has denied any wrongdoing in the matter, contending that it shared onlypublic information and that there was no conflict of interest involved.

Important pieces of the pie

One of Perot Systems’ most prominent ventures, HCL Perot Systems N.V., wasformed in 1996 with India-based CRM consulting firm HCL Technologies. Prior tobecoming President and CEO of Perot Systems, Ross Perot Jr. was chairman of HCLPerot Systems, a position he still holds. Taking after its parent firm, HCL PerotSystems recently has made a number of key investments and partnerships. In January2001 the company invested $3 million to acquire a 1 percent stake in struggling netconsultancy iXL. (iXL has since merged with Scient.) In February 2001, HCL Perot



Systems formed a joint venture of its own, a wireless telecommunications companycreated in conjunction with Britain’s Aircom International. Also during that year,HCL Perot Systems formed strategic partnerships with enterprise managementcompanies Kana Communications and Martin Dawes Systems.

GETTING HIRED

The Perot Systems web site provides several tools to ease the job search. The JobAgent allows candidates to create a profile and receive e-mails of new job postingsthat fit their personal specifications. There is also a search engine for current jobopenings. Upcoming recruiting events are posted on the site, and there is an onlineresume submission form.

Perot Systems likes to hire from the military and big IT outsourcers, as well asundergraduate programs with strong computer science programs. The interviewprocess varies, but applicants at all levels can expect at least two interviews, one ofwhich will be a team interview.

OUR SURVEY SAYS

Insiders describe life at Perot Systems (despite the firm’s already considerable size)as “an entrepreneurial culture in a growing company,” and they heap praise on their“exceptionally smart and dedicated co-workers.” While weekend work is rare andthe hours are not bad by industry standards, the work schedule is still “customer-centric,” says one source. “We are prepared to do whatever it takes to get the job done.”



L I B R A R Y


XXXX

V A U L T



8065 Leesburg PikeSuite 500Vienna, VA 22182-2738Phone: (703) 506-3900Fax: (703) 506-3900www.dean.com

LOCATIONS Vienna, VA (HQ)

PRACTICE AREASStrategy Consulting

THE STATS

Employer Type: Private Company Chairman & CEO: Dean Wilde2002 Employees: 702001 Employees: 70

UPPERS

• Low travel and reasonable workhours

• Access to founding partners

DOWNERS

• Small company = limited resources• Less variety in case experiences

KEY COMPETITORS

Bain & CompanyBoston Consulting GroupMcKinsey & Company

EMPLOYMENT CONTACT

[email protected]

Dean & Company37

• “Strong boutique firm”• “One-man show”• “Wacko smart”• “Too small”

THE SCOOP

First-name basis

Located in the Washington, D.C. area, Dean & Company is a management consultingfirm that works with U.S.-based and international corporate clients from the Fortune100, as well as with smaller firms, technology startups and a growing number ofinvestment clients. Dean still fits snugly into the “small firm” category — at lastcount, its total number of consultants hovered below 60. It is also highly selective— 25 percent of its consultants have PhDs, and the company recruits primarily fromthe Ivy League and top-notch technology and business schools. Dean was foundedin 1993 by Dean Wilde and two senior consulting colleagues.

Elite leadership

Wilde, the firm’s chairman, was previously an executive vice president at StrategicPlanning Associates (SPA) and subsequently Mercer Management Consulting(Mercer was formed by the merger of SPA and TBS in 1990), where he ran theworldwide telecom and technology practice and was a member of the board ofdirectors. He is also a visiting lecturer at the MIT Sloan School of Management, andrecently co-authored a new book, The Delta Project, with Arnoldo Hax, a formerDean & Co. board member who serves as the Alfred P. Sloan Professor ofManagement at MIT Sloan.

Successful streak

Dean provides support to CEOs and senior management at select companies in anumber of areas, with a particular focus on industries undergoing substantial change(especially in technology-intensive situations). Recent engagements have includedeverything from the restructuring of the network of a major, establishedtelecommunications services provider to the development of the initial business planand ongoing strategy for a seed-stage Internet-based applications provider. Dean isalso engaged in a joint venture with Lindsay Goldberg & Bessemer LP, amultibillion-dollar equity capital investment firm that looks at public and privatecompanies in the United States and abroad. The firm maintains office space inLondon to handle some of the work related to the venture.

Vault Guide to the Top 50 Consulting FirmsDean & Company


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The Dean speedometer

Dean purports to use a “simple, flexible and non-hierarchical structure” in runningthe firm. A management committee composed of the firm’s senior professionalsaddresses major policy and strategy questions, while the managers lead the day-to-day casework. The remaining management and administrative functions are widelydelegated among the consultants and other professionals.

Dean claims to have a “speedometer” — rather than an “odometer” — approach topromoting its consultants. In other words, career progression is driven bydemonstrated performance, not by seniority; therefore, consultants are given as muchresponsibility as they can handle, as early as possible. To this end, Dean employs acomprehensive career review process designed to provide detailed, actionablefeedback in order to accelerate an individual’s professional development. Eachconsultant is paired with a career adviser (a sort of informal mentor), who plays animportant role in supporting the individual’s development.

GETTING HIRED

Dean tends to hire about 15 to 20 new consultants every year, though the exact figuredepends on overall headcount targets and expected retention. And because thedownturn in the economy and the falloff in the number of Internet startups have givenDean consultants more of a reason to stick around, expect the 2002-2003 classes tobe smaller. Undergraduates and holders of non-business master’s degrees come onboard as analysts; MBAs and PhDs start as associates.

The firm recruits mainly through on-campus channels and focuses on a small set ofundergraduate schools, typically including Harvard, Princeton, Dartmouth, Virginiaand Yale, as well as top PhD and MBA programs. Dean uses campus presentationsand school-sponsored career fairs to introduce itself to students. From the resumes itcollects at these events it invites a select number of candidates for on-campusinterviews, primarily during the fall.

First-round interviews are short — usually a 30-minute meeting involving a casequestion and resume review. The second round, also on campus, involves two tothree interviews, with at least one partner. Prospective associates can expect threerounds, with “at least five case-like interviews by the time you’re done.”



Dean is “focused on case interviews much more than resume or profile interviews.”Cases tend to be very analytical and quantitative, though according to one Deanconsultant, “Our interviews are more of a ‘sit down and solve a problem together’format.” Dean “rarely uses estimation or brainteaser questions; almost all arebusiness cases.” For example, adds another, interviewees might be asked to “build acost chain for Coke versus RC Cola.”

After the on-campus round, successful candidates “receive news of their status verypromptly” and are invited to the office for a “familiarization visit.” Such a visitgenerally occurs in the late fall or winter and includes one-on-one discussions,presentations on firm strategy and recent assignments, and group social gatherings.

Dean offers summer internships to a small number of MBAs and rising collegeseniors to allow prospective employees an inside look at the firm’s work and culture.Interns are staffed and reviewed as full members of Dean projects and are expectedto pull the same weight as full-time Dean employees.

OUR SURVEY SAYS

Small is beautiful

For those who consider themselves at the very top of the academic game and arewary of joining a consulting machine like Bain or The Boston Consulting Group,Dean is an attractive alternative. “If you like a smaller, more personal environment,”one source tells us, “this is a great place to complete your consulting apprenticeship.”Dean lacks some of the benefits that come with being part of a big firm, such asplacement opportunities in multiple offices and widespread brand recognition, but itmakes up for its lack of scale by cultivating a sense of anti-hierarchical cooperationnot found at larger firms. “I have found great mentors who took the time to coachme and helped me become a better professional,” one source says. The senior staff“genuinely tries to promote a collegial atmosphere,” adds another. And unlike manylarger firms, new hires aren’t lost in the shuffle at Dean: “Senior members of the firmare always interested in hearing the opinions of junior staff, and they foster careergrowth whenever possible.”



L I B R A R Y

A driven firm

Dean has an image as a hard-driving, numbers-focused firm for good reason.Sources report averaging 60 hours a week on the job, “with wide swings betweenhigh and low; I have worked 90-hour weeks for several consecutive months, as wellas some 45-hour weeks.” The firm reports that the average number of hours firm-wide in 2001 was about 55 per week. Much of the workload is project-specific,though — one consultant tells us: “I just completed a one-year engagement abroadand [put in] workweeks often in the 80 to 90 hour range.” On the other hand, thatsame consultant adds that the experience was also “high-profile work on high-profileacquisitions,” and that “I learned more in that one year than I had in my wholecareer.” The firm also provides comp time for extra hours worked and makes sure itsconsultants get top-notch amenities like five-star hotel rooms and expensive dinners“to help us slug away.”

Life in Vienna (Virginia, not Austria)

The majority of Dean’s work is at the firm’s office in Vienna, Va. — a suburbanlocation in the northern Virginia technology corridor outside Washington, D.C. thatsome say is a strike against the firm. But on the plus side, “Dean tries to keep travelto a minimum, with the exception of international cases.” Site-specific projects arerare, as “We really only travel when necessary to meet and present to clients.”Respondents like their office environment, describing it “as a whole well laid out,inviting and spacious,” with two consultants sharing each office. It is “the oppositeof cubicle world, which I fully appreciate,” says one source.

Pleasant comp and perks

Dean employees are well compensated for the work they do, though insiderscharacterize their salaries as “competitive but certainly not on the high end.”Benefits include free parking, an on-site gym, bagels in the office every Friday,employee discounts with local merchants, an MBA tuition reimbursement program,and reduced-price theater and sports tickets, as well as “somewhat regular socialfunctions sponsored by the firm for staff, consultants and friends, such as baseballgame outings, wine tastings and picnics.” Another popular and unusual event is thefirm’s annual in-office putt-putt golf tournament.



The downsides of Dean

As one might expect for a small firm, diversity is a constant challenge at Dean.“There is no intent to exclude anyone,” reports one source, “but minorityrepresentation is quite low.” And while another tells us that “Dean has made a lot ofprogress hiring women this past year,” the firm still needs “to work on mentoring andpromoting women past the associate level.” Nevertheless, while there are no seniorwomen currently at Dean (the firm has promoted a number of women to senior levelsin the past), the analyst class reportedly is now over 40 percent female, and the firmholds women’s dinners once a quarter to help support career growth.

Training is one area where the majority of respondents feel Dean could use someimprovement. New-hire training consists of two weeks of classroom instruction inthe basics of consulting, and afterward “formal training opportunities probably arisean average of once a quarter.” Most of the learning is on the job, we hear, though thefirm has a series of training modules in various aspects of consulting, includingpresentation skills practice complete with coaching by university professors. All inall, says one insider, “We have some limited in-house training and virtually noexternal training.” But another counters that “Clearly, because of the size of the firm,we are not going to have a huge training program.”



L I B R A R Y



33 W. Monroe StreetChicago, IL 60603-5385Phone: (312) 580-0033Fax: (312) 507-6748www.andersen.com


PRACTICE AREASCustomer & Channel Enterprise ApplicationsFinance & OperationsTechnology Integration Strategy, Organization & PeopleSupply Chain

THE STATS

Employer Type: Private CompanyActing CEO: Aldo CardosoBusiness Consulting Practice Leader:Gail P. Steinel2001 Employees: 12,0002000 Employees: 10,9402001 Revenues: $1.7 billion2000 Revenues: $1.62 billion

UPPERS

• Extensive training resources• Reasonable hours

DOWNERS

• Enron-related injuries • Uncertain future

KEY COMPETITORS

AccentureCap Gemini Ernst & YoungDeloitte ConsultingKPMG ConsultingPwC Consulting (Monday)

EMPLOYMENT CONTACT

[email protected]

Andersen’s BusinessConsulting Practice

V A U L T


38


• “Established and reliable”• “Tarnished by Enron”• “Familial”• “Days are numbered”

THE SCOOP

The name game

The consulting practice at Andersen (formerly Arthur Andersen) was merely a gleamin the eye of parent organization Andersen Worldwide in 1989, when it decided tospin off Accenture (formerly Andersen Consulting) and professional services firmAndersen into separate-but-equal companies. Today, Andersen has its own highlyregarded business consulting practice. In fiscal 2001, the consulting unit’s revenuegrew 5 percent to $1.7 billion from $1.62 billion the prior year. The firm currentlyoffers its services to clients in a wide variety of industries, including energy andutilities; financial services; pharmaceutical, biomedical and health care; products;government services; real estate and hospitality; and technology, media andcommunications. It has also established numerous business alliances with softwareproviders such as Ariba, Microsoft, i2, Oracle, SAP, Siebel and PeopleSoft.

For those still hazy on the relationship between Andersen and Accenture, here’s aquick history lesson: Following a nasty breakup, Accenture was given permission toleave the fold in August 2000 by paying a $1 billion penalty and relinquishing itsname (which had been Andersen Consulting). So it happened like this: AndersenConsulting became Accenture, Arthur Andersen became Andersen (officiallydropping the “Arthur” from its name in March 2001), and Arthur Andersen BusinessConsulting is now Andersen’s business consulting practice, or simply Andersen.

The Enron entanglement

Today, Andersen probably longs for the days when it made headlines only for itsprotracted and messy divorce from the firm that was to become Accenture.Unfortunately, Andersen is now better known for its involvement in the Enronscandal. Enron collapsed spectacularly in the fall of 2001 after a Securities andExchange Commission probe revealed hundreds of millions of dollars of undisclosedlosses, mysterious Cayman Island accounts and limited partnerships used as a hedgeagainst bad investments. It eventually emerged that auditors from Andersen’sHouston office had known about many of Enron’s shady business dealings, and haddestroyed thousands of company-related documents (reportedly continuing to do sofor 18 days after the SEC’s criminal investigation began) in an attempted Enron-directed cover-up.

Vault Guide to the Top 50 Consulting FirmsAndersen’s Business Consulting Practice


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Perhaps the ultimate indignity came in January 2002, when the beleaguered energycompany fired Andersen after more than a decade of service. Andersen did somefiring of its own that month, giving the ax to Houston partner David Duncan, whoheaded up the Enron audit. Amidst a series of congressional hearings, Andersen alsohired former Federal Reserve Chairman Paul Volcker to head an independent boardto look into and reform the firm’s accounting practices. Volcker immediately urgedthat Andersen’s management leave the firm, to be replaced by a seven-membermanagement committee headed by Volcker himself. In March 2002, shortly after theDepartment of Justice issued an indictment of the firm, CEO Joseph Berardinoannounced his resignation. Volcker then named two senior partners, C.E. Andrewsand Larry Rieger, to lead the firm for the initial transition period; Aldo Cardoso,chairman of Andersen Worldwide’s board and head of the firm’s French practice,took over as acting chief executive in April.

That month, Andersen commenced layoffs of as many as 7,000 employees.Following negotiations with several other firms, Andersen also announced that alarge portion of its tax business would be sold to Deloitte Touche Tohmatsu, thoughthe acquisition predictably still has legal obstacles to overcome before becoming areality. Meanwhile, in May KPMG Consulting signed a letter of intent to acquire upto 23 of Andersen’s consulting units in the United States, Asia, Europe and LatinAmerica. (Andersen’s consulting business was not directly involved in the acts thatled to Enron’s bankruptcy and the ensuing criminal investigations. The firm did,however, provide Enron with $27 million worth of non-audit work, including tax andbusiness consulting, in 2000 on top of the $25 million it made for auditing services,according to The Los Angeles Times.)

Also at that time, settlement negotiations between Andersen and the DOJ brokedown, setting the stage for lengthy court proceedings. After a six-week trial, in June2002 a federal jury in Houston found Andersen guilty of obstruction of justice. (Thegovernment also plans to prosecute individual Andersen employees in the nearfuture.) The firm, facing a maximum of five years’ probation and a $500,000 fine, isscheduled to be sentenced in October. Following the verdict, Andersen announcedthat it would cease its auditing activities as early as the end of August, essentiallysounding the death knell of the 89-year-old firm. Andersen still plans to appeal thedecision, but the process could take more than a year, meaning that the firm likelywill have already disintegrated by the time there is a ruling. The firm also may haveto contend with civil liability lawsuits from Enron investors.



In other news…

It may not have gotten as much ink, but Andersen also has made news recently forbusiness not related to Enron. In February 2001, it purchased the U.K. operations ofInternet consultant Xpedior for the reported price of between $8 million and $9million. The accounting side of the firm then lost almost that much in settling fraudcharges with the SEC over the firm’s handling of its client Waste Management.Andersen agreed to pay $7 million and be censured by the SEC to settle charges thatit filed false and misleading audit reports overstating Waste Management’s incomeby $1 billion from 1992 through 1996. Andersen neither admitted nor deniedwrongdoing. The firm was also bitten by the layoff bug, cutting 60 consulting jobs(40 of which were eliminated by attrition) in Switzerland in September 2001.

The firm announced in 2001 that it was seeking to expand its consulting operationsin a number of overseas markets, including China and South America. Andersensigned on in February of that year to advise the Russian government on therestructuring of the country’s energy industry, and two months later formed astrategic consulting partnership with Canada’s Recruitsoft. In September 2001, theFrench partners of Price Waterhouse Management Consultants S.A.S. (PWMC)joined forces with Andersen. The combined entity employs more than 900consultants and generates annual fees in the neighborhood of $140 million.Elsewhere on the international front, Andersen advised the Telephone Organizationof Thailand in an organizational restructuring and served as financial adviser tocreditor banks in the debt restructuring of BayanTel, a Philippines-based telecom.

The firm took on more new assignments in 2002. In January Andersen counseled thegovernment of Hong Kong on financial matters, and the following month was namedan adviser in the merger of five banks by the Indonesian Bank Restructuring Agency(IBRA). And, believe it or not, since the Enron investigations began Andersen haseven signed lucrative consulting contracts with the city government of Houston.

Real GROWth for Andersen women

If you had to name a Big Five firm known for its proactive and positive policiestowards women, you’d have to name, well, Deloitte. Andersen, however, has madeimpressive strides in this area, and soon the name Andersen naturally might come tomind when thinking of women’s progress in the workplace. While Andersenrecognized back in 1989 that women were more likely to leave its workforce thanmen, it wasn’t until 1998 that it started a firm-wide program, promoted from thehighest levels of the company, that aimed to retain female workers. The program,



L I B R A R Y

called GROW (Growth and Retention of Women), has already shown results. In2000, turnover of Andersen women fell to just under 20 percent — on par withAndersen men. (Turnover of women had been as high as 24 percent in 1997.) Aspart of the initiative, approximately 2,000 Andersen employees (including 20partners) partake in flex-time arrangements. Andersen also provides paid leave fornew mothers and fathers, as well as new adoptive parents, including same-sex couples.

The proof of Andersen’s efforts is in the pudding, so to speak. In December 2000, itwas chosen as one of Fortune’s Best Companies To Work For, and in October 2001got its ninth nod from Working Mother as one of the 100 Best Companies ForWorking Mothers. Among the areas in which the firm earned high marks wasadvancement opportunities for women. Nowhere is this more apparent than in theconsulting business, which is headed up by Gail Steinel, the first woman to lead a BigFive consulting firm. In its June 2001 edition, Consulting named Steinel the fifth-most influential consultant in its list of the top 25.

GETTING HIRED

KPMG Consulting’s intended acquisitions of most of Andersen’s consulting operationseventually will mean a transition to KPMG’s recruiting process. Until the process iscomplete, however, Andersen plans to proceed with its regular hiring practices.

Andersen’s undergrad and MBA interview process is split between campus and officerounds. Undergrads can expect one or two phone interviews, followed by a campusinterview with a partner. The meeting is mostly a resume review and personalitydiscussion to determine fit, though some Andersenites report completing casequestions and speaking exercises. The second round, held at a local Andersen office,is more extensive, with candidates meeting with potential peers and supervisors, aswell as at least one partner. These interviews are much more behavioral in nature,though second-round case questions are not unheard of.

When there is a case question, it tends to have a more qualitative than quantitativebent: “My case surrounded the hospitality industry. I was to apply various technicaland IT-based concepts to a struggling hotel chain. I enjoyed this exercise verymuch.” One former interviewee tells Vault that the case questions aim at acandidate’s own experiences, rather than a hypothetical situation: “We ask therecruits to go through two or three experiences or projects in their life and try to



identify if they exhibited some of the skills and behaviors that we have determinedare crucial to success in our line of work.”

MBA-level interviews vary slightly: “It started with an invite-only dinner with aselect number of people from my business school. I was then invited for an officevisit where I met with four or five managers and partners. I later received a letterwith an offer to join the firm.” Andersen also takes experienced hires from otherconsultancies or relevant industries.

Insiders say not to worry too much about the Andersen interview process. “Theinterviews were not overly demanding as compared to other consulting companies,”we hear. “They did ask situational questions and were interested in how well youwork with others.” Some sources report being placed in groups to preparepresentations, while others report that “an impromptu speech must be given to a panelconsisting of managers and partners.” Overall, those who have been through thecampus hiring process have surprisingly positive things to say about it: “I loved thevariety of people I interviewed with,” says one. “It enabled me to gain a greaterperspective on the culture and atmosphere of the company.” The interviews were“very organized,” says another, adding that “They made me feel as if they reallywanted me here.”

However, our sources tell us not to expect a cakewalk either, especially in the currenteconomic climate. The firm spends “a tremendous amount of time assessingpersonality fit.” And a good impression is vital; according to one insider,“Candidates have to get a ‘one voice’ agreement of the attending managers andpartners to get hired.” While grades and skills are important, insiders say thatpersonality is the trump card: “We would much rather have a strong B+ student withstrong leadership qualities, initiative, drive, etc. than a summa cum laude graduatethat never saw anything outside of the library or did anything outside of study.”

OUR SURVEY SAYS

Firm loyalty

Despite Andersen’s recent troubles, insiders by and large stand behind their employer100 percent. “Right now it kinda hurts to be working at Andersen,” one consultanttells Vault, “especially when you know that there is so much good about this firm. To



L I B R A R Y

see that all potentially being trashed is very, very sad. It just hurts.” And whilecurrently “morale is definitely on the low side,” many nevertheless praise Andersenas “an environment where everyone truly supports the progress of all individuals. Itis truly an environment where success depends upon the individual, with the firmthere to support each individual’s aspirations.” In any case, “on the businessconsulting side, we really had nothing to do with the Enron situation, so it’s muchmore of a ‘wrong place, wrong time’ sort of thing.”

Many employees say that part of the firm’s constant appeal is that, despite its size,there is still a sense of “unity amongst all partners, managers and consultants —across all regions and countries.” While many say that the firm’s “culture is veryclient-centric,” it also places “a very real value on each person’s personal life outsideof work. That is the part that I am most happy about. I have a family that is at thetop of my priority list and I do not feel uncomfortable expressing my feelings anddesires about work/family balance when talking to others at all levels within thefirm.” While some criticize the firm’s culture as too family focused, one sourcepraises it as “very young and energetic. We do lots of meetings, events and dinnersto get to know our co-workers on a social basis and to lighten up the work atmosphere.”

Working 9 to 5

Hours at Andersen are described as “pleasant,” and “practice management and thefirm as a whole truly respect our need for personal and family time.” The “firmmakes an effort to monitor unusually high overtime or downtime and tries to developsolutions to manage either” (although “workaholics tend to dominate management”).Andersen is flexible when it comes to the personal needs of its employees; says onesource, “Andersen is extremely understanding regarding my work schedule. I am asingle mother and attending school and they work around my schedule.” Andersenvalues good work over long hours, and one source says he has the proof: “I’ve beenwith the firm for more than seven years in the consulting group, and my averageworkweek has always remained below 45 to 50 hours. I was promoted to manager andthen senior manager in record time, so it has definitely not hurt my career progression!”

And while traveling for Andersen can be extensive, sources tell Vault that Andersenmakes every effort to lessen the stress: “There are times when the travel wears youdown, but my experience has been that the leadership will work with you to alleviateas much stress as possible around traveling. They offer concierge services andflexibility.” The firm has its own travel agent, and traveling consultants are given aplane ticket every weekend which “can be used to go home, or it can be used to flysomeone in to visit, or, if a cheaper ticket can be found, I can travel someplace else



instead.” Travel requirements differ from office to office, and in big cities “most ofour clients are in relative proximity to our office so travel sometimes requires acommute.” On the other hand, travel time is not included in a consultant’s billablehours; instead, it counts as personal time, which “is frustrating when some worklocally [while] others have to travel and no compensation is made.”

Office space

With a firm as large as Andersen, it’s to be expected that there will be some variationfrom office to office and even group to group. Some consultants, in fact, give thefirm negative marks for its tendency to “silo” — that is, for offices and practices tobecome self-contained vertical organizations, instead of the horizontal, cross-practiceideal toward which the firm strives. “Some partners are down-to-earth,” one sourcetells us, “while others — homegrown, typically — think very hierarchically. Somepartners are very easy to talk to about personal and work issues, while others are notopen at all.”

Physically, the offices vary greatly as well. We hear that the Detroit office is“depressing” and “constantly messy,” while the Baltimore office is the “best in thefirm,” located “in a renovated power plant from the turn of the century that is as newand modern as you could possibly hope for. Many local officials and otherexecutives have toured our office because it is so fabulous.” The D.C. office is saidto be cramped and uncomfortable, while the Paris outfit, in an I.M. Pei-designedbuilding, is the envy of the European consulting world. Most Andersen offices utilizea “hoteling” (or “hot-desking”) system, so that finding a good seat when a lot ofconsultants are on the beach can be a hassle.

Making the (not so) big bucks

Compensation is not a big positive for Andersen consultants. We hear that “thegeneral consensus is that the salary portion of our compensation could be better.”However, the firm gives raises quickly and often, and one consultant puts it intoperspective in this manner: “Many people are disappointed with their starting salarywith the firm. I like to remind them that they can expect significantly large raiseseach year for the next many years should their performance be superior.” Andersengives bonuses, but they are not a large part of most employees’ compensationpackage — definitely a plus when poor economic performance forces firms to cut orfreeze bonus dispersions, though a downer during boom times. And those looking to



L I B R A R Y

work in Andersen’s Northeast offices should take note: “All of the new people atAndersen in the Northeast are on reduced pay until the economy picks up.”

Benefits at Andersen have been cut in recent months, but the firm still offers thestandard gym discount/cell phone/laptop package, with a sizable insurance plan toboot. The firm also offers moving stipends, and it allows employees to “buy” extraholidays. Andersen employees truly have a lot to say about their compensation, butadvise prospective employees not to get caught talking: “It is a terminating offense ifyou are found discussing salary.”

People-focused

One of the big pluses at Andersen is the amount of time and resources the firm putsinto its employees. Though it was cut back after the economy dropped, the firm’straining program is still rated top notch by respondents. According to one source,“One of our partners equated our learning to receiving the equivalent of an MBAroughly every 1.5 years. We have formal training programs, a dedicated trainingfacility, outside learning opportunities, regional training, software training — anytraining you can dream up we have access to.” The central training facility — acollege-campus-sized facility in St. Charles, Ill. — is complemented by localfacilities worldwide. During up years, consultants are given $5,000 to spend onexternal training or to attend conferences. Unfortunately, some sources tell us thattraining priorities are not always respected: “Training is all too often the one thingthat gets cut out or forfeited when schedule conflicts arise.”

Insiders also praise the firm’s commitment to diversity, particularly with respect towomen. The GROW program ensures that “speakers and events are held regularly,”and one woman reports that Andersen also offers “programs to assist single mothersand working mothers,” which she says “is a large part of why I chose thisorganization for my place of work.” The firm offers same-sex partner benefits in itsinsurance programs, and sources tell us a number of upper-level employees areopenly gay. On the other hand, one source notes that “There has been a noticeablelack of minority representation, particularly in the African-American population.There have been a few folks but the retention rate is not high.”




“Right now it kind of hurtsto be at Andersen,

especially when you knowthat there is so much good

about this firm.”

— Andersen’s Consulting Practice insider


L I B R A R Y


1050 Winter StreetWaltham, MA 02451Phone: (781) 434-1200Fax: (781) 647-2804

1503 Grant Road, Suite 200Mountain View, CA 94040Phone: (650) 967-2900Fax: (650) 967-6367www.prtm.comwww.pmgbenchmarking.com

LOCATIONS Waltham, MA (Atlantic Region HQ)Mountain View, CA (Pacific Region HQ)14 offices worldwide

PRACTICE AREASCapital Asset ManagementCustomer Service and SupportEmerging BusinessMarketing and SalesProduct and Technology

DevelopmentStrategic IT ManagementStrategySupply Chain Operations

THE STATS

Employer Type: Private CompanyAtlantic Region Chairman: Michael McGrathPacific Region Chairman:Robert Rabin2001 Employees: 4502000 Employees: 526

UPPERS

• Excellent training• Unusual specialties

DOWNERS

• Poor gender diversity • Work can be dry and intense

KEY COMPETITORS

A.T. KearneyAccentureMcKinsey & Company

EMPLOYMENT CONTACT

[email protected]

PRTMV A U L T


39


“Gearheads”“Limited diversity”“Solid work”“Nerdy”

THE SCOOP

Taking on tech

With headquarters in both California’s Silicon Valley and Boston’s Route 128corridor, PRTM is well-positioned to provide management consulting services to awide range of high-tech industries. Currently PRTM (short for Pittiglio Rabin Todd& McGrath) is expanding its reach into other sectors including consumer packagedgoods, energy and government. Founded in 1976, the firm today is organized intoAtlantic and Pacific regions and has 14 offices worldwide — nine in the UnitedStates, four in Europe and one in Asia (located in Tokyo).

Lots of methodologies

PRTM’s practice is rooted in a set of branded methodologies it has developed overthe years, so get ready for lots of trademark symbols. Product and Cycle-timeExcellence (PACE®) was introduced in the mid-1980s as a standard framework forunderstanding and improving time-to-market in product development fortechnology-based companies. PRTM also has developed the Supply ChainOperations Reference-model (SCOR®) — a toolkit for supply-chain integration andjmanagement — in collaboration with the Supply-Chain Council and AdvancedManufacturing Research. The firm offers its Channel Opportunity Analysis®

services, a set of marketing methodologies, through its marketing and sales practice.Its Customer Value DeliverySM offering is targeted both to companies’ marketing andsales and customer service and support functions.

Adding and allying

PRTM bolstered its position in the area of product development managment solutionsby founding the Concord, Mass.-based Integrated Development Enterprise (IDE),which offers development chain management software, in 1998. The firm followedup that move with the July 1999 acquisition of Dallas’ Channel Strategies, whichdevelops focused marketing strategies for tech firms.

The following year, PRTM created an academic affiliate program enabling academicleaders to share innovative thinking in business management with executives in thehigh-tech sector. The firm has formalized relationships with professors at HarvardBusiness School, MIT Sloan School of Management and Stanford University.

Vault Guide to the Top 50 Consulting FirmsPRTM


L I B R A R Y

Continuing education

PRTM touts its rapid career development, fostered in part by its low (four-to-one)consultant-to-partner ratio. Consultants can stay current on best industry practices byaccessing the firm’s extensive archive of case studies and surveys. (These aremaintained through PRTM’s benchmarking subsidiary, The PerformanceMeasurement Group LLC, which also offers an online benchmarking service forhigh-tech clients.) Industry days and training seminars are also offered forcontinuing professional development of consulting staff. Additionally, a professionaldevelopment program provides an adviser to every consultant, which means one-on-one mentoring by a partner for a period of 18 to 24 months.

GETTING HIRED

It takes a certain kind of person to get a job at PRTM. Specifically, “The hiringpractices dictate that all consultants have a technical background, at least three ormore years of practical industry experience in the industry they serve, and a graduatedegree — typically an MBA — from a top program.”

The firm’s “hiring process is simple, but rigorous,” reports one insider. The typicalprocess for MBAs involves “one first-round, on-campus interview with a partner,”followed by “four second-round, on-site interviews with a combination of principalsand partners.” While “we tend to not rely heavily on case-based interviews formaking decisions,” case questions are used in some instances “to try to gauge thedepth of an individual’s experience.” (By all reports, case interviews are veryuncommon at PRTM.) More importantly though, “Interviews are used as anopportunity for both parties to learn about each other, with the goal being to mutuallydetermine and confirm that there is a good fit for the long term.” Adds a source,“Hiring is viewed as a very important factor in retaining the firm’s culture andattracting the right talent, so it gets a lot of attention from the partners.”



OUR SURVEY SAYS

Just like a tech firm

PRTM consultants comment that the firm’s culture “is comparable to that of a high-tech company — we tend to mirror our clients.” It is a “very collaborative and team-oriented environment,” with “little if any politics.” Additionally, says a source,“There is a great deal of independence, and taking responsibility for your own careerand performance are widely practiced values.” PRTM’s “four-to-one consultant-to-[partner] ratio means that all consultants have frequent interaction with executives ofthe firm. As a result, all consultants tend to be treated very well by [partners].” Alsohelping relations is a “mandate that all partners work on-site with project teams atleast weekly.” Prospective employees are told to expect a lot of male co-workers.According to insiders, while “the class of 2001-2002 is 39 percent women,worldwide at all levels only 14 percent are women.” These numbers seem low, butthe firm points out that they are on par with the proportion of women typicallygraduating from the engineering programs where it frequently finds new employees.

On the road again

Most PRTMers say that “The workload ebbs and flows throughout the course of aclient engagement,” with “periods of intense activity interspersed with lessdemanding days.” For most, “The typical day averages 10 hours. During times ofhigh workload, [it] can range from 14 to 16 hour days for several weeks at a time.”Despite the often grueling weeks, the firm manages to “maintain a balance that is rarein consulting. Work tends to be encapsulated during the weekdays, particularly thosedays on-site at client locations, and rarely stretches into weekends.” Consultants findthemselves on the road most of the time. “Due to the [process] implementation workthat forms the basis of our consulting, we will spend the majority of our time at theclient working with client teams,” explains one. “We typically fly down to the clienton Monday and return home on Thursday, with Friday spent in the office.” However,“The independence that PRTM consultants have allows for some flexibility intravel requirements,” and the firm “makes a real effort to staff local consultants onlocal projects.”

Tops in training

Insiders seem impressed with PRTM’s training offerings. “The firm has madesubstantial investments over the past two years which has allowed for the



L I B R A R Y

development of an extensive curriculum and continuous learning opportunities,”comments an insider. “There is a full-time training staff that ensures that consultantshave access to all training sessions conducted through webcasting, videotaping andother delivery.” Young consultants “receive in-depth practice area training, projectretrospective training, and development of consulting skills.” Everyone in the firmis “expected to participate in training, with manager-level staff and above required tolead courses or local sessions.”





“There is a full-timetraining staff that ensures

that consultants haveaccess to all trainingsessions conductedthrough webcasting,

videotaping and other delivery.”

— PRTM source


L I B R A R Y


123 Buckingham Palace RoadLondon, UK SW1W 9SRPhone: +44 20 7730 9000Fax: +44 20 7333 5050www.paconsulting.com

LOCATIONS London, UK (HQ)40 offices worldwide

PRACTICE AREASBusiness and Corporate StrategyEconomic and Environmental

Analysis Human Resources Consulting Operations Consulting Program and Project Management Systems Integration and IT

ConsultingTechnology and Innovation

THE STATS

Employer Type: Private CompanyCEO and Chairman: Jon Moynihan2001 Employees: 4,0002000 Employees: 3,7002001 Revenues: $579.8 million2000 Revenues: $467.0 million

UPPERS

• Challenging, interesting work• Bright, fun, ambitious people• Good payment and reward scheme

DOWNERS

• Little name recognition in the U.S.• Formal processes• Some culture clash between U.S.

and U.K.

KEY COMPETITORS

AccentureCap Gemini Ernst & YoungMcKinsey & CompanyPwC Consulting (Monday)

EMPLOYMENT CONTACT

[email protected]

PA Consulting GroupV A U L T


40


• “Positioned well”• “Ultra-conservative”• “Hearing more about them”• “Relatively no presence in the

U.S.”

THE SCOOP

A British firm with an international focus

With almost 4,000 employees in 40 offices worldwide, PA Consulting Group isknown internationally for its diverse interests and innovative approaches tomanagement strategy, as well as for being the world’s largest employee-ownedpractice. But while PA is one of the biggest names in the British managementconsulting world, it’s only beginning to gain name recognition in the U.S. market.Founded in 1943, the firm stepped up its U.S. presence with the October 2000purchase of Hagler Bailly, Inc. for approximately $96 million, giving it 700consultants in 15 offices across North America. In June 2001 PA opened its StrategicInformation Management capability, a suite of information processing services, inNew York. And while a planned merger with fellow consultancy Arthur D. Little fellthrough in January 2001, PA says that it’s still aiming to build its presence in theUnited States.

PA also signaled its intention to expand its efforts in Asia by signing a memorandumof understanding with China’s SP Power Economic Research Centre (SPEC) in May2001. The two will coordinate energy marketing programs, and PA will providetraining for SPEC technicians.

Twenty-seven percent of PA’s revenue comes from its IT work, and the firm focusesthe rest of its energies primarily on management, systems and technology consulting,with an emphasis on the pharmaceutical, government, transportation, energy,manufacturing and financial services industries. Through its venture capital arm, thefirm is also involved in a range of activities, including wireless communications,drug-delivery technologies and online HR solutions, some of which it has spun offinto successful businesses over the last few years.

Industry recognition

PA doesn’t have to brag about its reputation — its list of accolades speaks for itself.The firm has won the Management Consultancies Association’s Best ManagementPractice Award for five straight years, and in February 2002 it was named the MCA’soverall winner for its work on the Swiss Transport Office’s wireless strategy. At the2000 awards, presented in February 2001, PA won the Best Use of E-business andBest Strategy & Business Transformation categories and was highly commended inthe Best Use of IT category. The firm also won a silver medal in the Consumer

Vault Guide to the Top 50 Consulting FirmsPA Consulting Group


L I B R A R Y

Product category of the Institute of Packaging’s 2001 Starpack Awards for its designof the Evian Action water bottle — evidence of just how broad PA’s interests andcapabilities are.

Diverse subsidiaries

PA not only advises companies; it creates them as well. Through its venture capitalpractice, the firm has invested in numerous startups. In May 2000, it launchedCubiks, a human resources consultancy specializing in using online tools andassessments in HR practices. UbiNetics, which is developing new products for thewireless communications market, raised $71.2 million through a private placementwith blue chip institutions in November 2000. In May 2001 PA opened Meridica, amedical technology firm which, capitalizing on PA’s extensive track record inpharmaceutical and technological innovation, develops and licenses drug deliverydevices and products. And in October 2000, PA sold off one of its more successfulventures, imPAct Executives (which supplies temporary senior managers) to theHarvey Nash Group for $8.4 million.

PA is also involved in several alliances with high-tech medical industry firms. InJune 2000, the firm entered into a strategic collaboration with the U.K.’s PowderJectPharmaceuticals, a company specializing in needle-free drug delivery systems. Aspart of its compensation for providing expertise and resources in bringing PowderJect’spowder-injection drug delivery technologies to market, PA received an equity stakein PowderJect. In May 1999, PA invested in Physiome Sciences, a Princeton, N.J.-based firm that builds software to simulate life processes, to develop a virtual humanbody for use in drug discovery and medical device development. Another alliance,struck in March 2000, partnered PA with London-based SkyePharma, a drug deliverycompany, for developing a range of CFC-free asthma products.

Good ideas

PA’s clients benefit from its growing commitment to developing first-classintellectual capital. The firm’s research is complemented by Viewpoint, a businesspublication distributed to senior-level executives. Consultants also prepare a rangeof reports and surveys, such as its international series of Managing for ShareholderValue surveys.



GETTING HIRED

PA hires a few dozen U.S. consultants every year, and those interested should e-mailcover letters and resumes to [email protected]. The firm also recruits“directly at the partner level”; one feature unique to PA is an in-house executivesearch team.

Sources tell Vault that there is no standard PA interview process. The typicalprocedure, though, involves two rounds, both in a PA office. The first consists of ascreening interview with an HR representative. If the company calls a candidate backfor the second round, he or she meets with two or three PA consultants (from varyinglevels, but usually managers and principals). The interviews are said to vary in lengthand degree of difficulty; some report short, breezy discussions, while others say theywere given case questions.

While the selection process may seem extremely rigorous, “The objective is to getthe right people who will be with the firm for a long time.” To better achieve thisgoal, PA’s European offices give candidates a battery of tests: a numerical abilityexam not unlike the GMAT, a verbal skills test and the PAPI (PA PreferenceInventory) Job Profiler, a psychological assessment tool.

In light of the recent economic downturn, PA has drastically reduced its number ofnew hires. As one respondent tells us, “Under current market conditions, only thoseconsultants with the desired skills will make it through the interview.” On the otherhand, another reports, PA is “reasonably selective, but not as tight as, say, top-endstrategy boutiques.” The firm recruits on campuses near its offices and posts jobopenings on its web site; it also occasionally places ads in newspapers and on otherjob sites.

OUR SURVEY SAYS

English style

PA is a British firm, something to which many American employees say they had ahard time adjusting. It’s “very British,” notes one. “By that I mean very liberal withbenefits such as vacation time, but very strict about rules and the need to followthem.” Some find the firm a bit too “stuffy, bureaucratic and male dominated,”



L I B R A R Y

though others praise the firm’s culture of “people intent on creating efficiency andgrowth.” Like most consultancies, a career at PA is what you make of it, thoughsources say that the firm leaves a lot of doors open for individual advancement:“There’s a good culture where you can make a lot of the opportunities open to you.”

Learning the ropes

PA emphasizes constant training by its employees, and it maintains a large library ofin-house modules for them to use. The firm usually requires eight full days ofprofessional development a year (though because of a tight financial outlook it’s beencut to five). The training is geared toward newer employees, which means that “forpeople who have been at the company more than three years, the choice of coursesbecomes limited.”

Tough times

Morale at PA has taken a number of hits recently. Many say the firm fumbled theHagler Bailly purchase, causing painful aftershocks. “The firm did a very poor jobof integrating employees from [the] acquisition,” notes one source. “Many haveleft.” The overall mood of the staff is also dependent on the size of the firm’s bonuspool. Bonuses, which unfortunately in the last round “were much lower than in thepast,” are a more important part of total compensation than at other firms.Employees typically receive a base salary “a bit on the low side,” but also thepotential to make up to 100 percent of that in bonus — a great system when themarket is good, but a morale crusher if annual profits (and hence the bonus pool) aredown. That said, PA asserts that it paid out just over $70 million in bonuses in 2000and close to $60 million in 2001.

Some say that PA’s bonus policy entails arcane rules; “The firm’s compensation is fartoo complicated,” one consultant tells Vault. “Smoke and mirrors give theimpression that the employees are being duped at every turn.” And because anemployee’s bonus is usually based on the performance of his or her practice, intra-firm cooperation is affected: “The system fosters a great competitive pressurebetween practices and does not provide adequate structural incentives for practices towork together,” reports one PAer.

Working the PA life

Despite its internal reputation as a hard-driving, all-business firm, PA is relativelyeasygoing when it comes to work hours. On average, employees put in “reasonable



work hours,” one consultant reports, “with weekends required only around deadlines.The average hours per week in my practice is about 52, which I consider prettyreasonable given my salary and compared to hours required at other consultancies.”Average hours vary from practice to practice, but in general we hear that quality oflife is given a high priority: “Work hours are flexible and allow time for family andother activities.” There is a “culture of getting work done rather than having to dolong hours,” another tells us, though as a result “long hours are not directly rewarded,which is unsatisfying if you’re working at a low level on a poorly run project.”

Nor is travel a major emphasis for most PAers. “The company very noticeablyattempts to sell to clients close to our offices to decrease our physical travel,” reportsone source. Many say they make mostly day trips, with the occasional overnight tripto a client during negotiations and closure. This is especially true for the IT, Systems,and Litigation practices, though less so for Corporate Strategy. Ultimately, however,says one source in consultantspeak, “Your skills and utilization will decide where youare resourced.”

The faces of PA

One area employees feel PA can definitely improve is diversity, particularly in itsopportunities for women to advance within the firm. The lower levels are fairlyevenly split, they tell us, but the higher up the ladder, the more of an old boys’ clubit becomes. There are “fewer female partners than you would expect for a firm thissize,” one woman says, and others accuse the firm of not being accommodating tothe needs of working mothers: “[The] firm has an articulated policy againstprolonged part-time work for consultant-parents, forcing women to choose betweenwork and parenting.” Most, however, blame this at least partly on the consultinglifestyle more so than PA specifically: “I, for one, know that I will have to leave if Iwant to have a family,” comments a woman consultant. “I would say that’s 30percent owing to PA’s culture and 70 percent owing to the nature of consultancy.”

Thanks to its strong international presence, the firm is very diverse ethnically, thoughone U.S.-based consultant says that “the non-whites come directly from foreigncountries far more than from U.S. minorities.” PA’s no-nonsense attitude helps fostera tolerant environment; one gay employee tells us that “I have been immenselyimpressed, not only with the equal treatment I have received, but also in terms ofeveryday interaction.” The firm offers domestic partner coverage as part of itsbenefits package.



L I B R A R Y


10 City SquareBoston, MA 02129Phone: (617) 241-9200Fax: (617) 241-9507www.keane.com

LOCATIONS Boston, MA (HQ)Offices in 72 cities worldwide

PRACTICE AREASApplication DevelopmentBusiness ConsultingOutsourcing

THE STATS

Employer Type: Public CompanyStock Symbol: KEAStock Exchange: AmexCEO: Brian Keane2001 Employees: 7,8712000 Employees: 8,2032001 Revenues: $779.2 million2000 Revenues: $872.0 million

UPPERS

• Stable client base

DOWNERS

• Tough tech market

KEY COMPETITORS


EMPLOYMENT CONTACT

[email protected]: (800) 544-0157 (ATTN: Dept.601EL)

KeaneV A U L T


41


• “Good in their pricing tier”• “Body shop”• “Best company for allowing staff

to work locally”• “Identity crisis”

THE SCOOP

Keenly aware of success

Keane is a Boston-based IT consultancy founded in 1965 to assist clients withmainframe systems. Since that year, it has expanded its offerings to includeapplication development, staffing, health care IT solutions and managementconsulting. While Keane has a variety of clients, it derives just under 50 percent ofits revenue from the financial services and manufacturing sectors. Clients includesuch revenue-generating superstars as 3M, American Express, Fidelity and GeneralElectric. During the late 1990s it got a strong boost in name recognition — not tomention profits — after it positioned itself as one of the world’s leading Y2K-readiness firms. But following several years of phenomenal growth, the company’sgood fortune began to fade shortly before the turn of the millennium. Despite staffcutbacks and a number of acquisitions meant to reposition the firm, it has only nowbegun to drag itself out of the economic doldrums.

Y2K all the way

Keane built its business on providing nuts-and-bolts solutions for complexmainframe infrastructures, but it hit the big time after it dove into the cottage industryof Y2K preparedness. As one of the few firms willing and able to approach theproblem on a large scale, it quickly grabbed a corner of the market, and by 1999 Y2Kwork accounted for a full 20 percent of its operations. For the effort, Keane broughtin $1.1 billion in 1998 revenues, and in 1999 was named the Boston area companyof the year by The Boston Globe.

One-trick pony?

The downside to Y2K work was, of course, its Dec. 31, 1999 deadline. By thesummer of ‘99 investors had begun to cool on Keane’s potential, deeming it a one-trick pony. Moreover, the firm had hoped to convert its newfound cachet into ahigher demand for its other services, but soon found that the need for mainframesolutions was slacking off as more and more firms converted to Web-basedinfrastructures. Keane responded by snapping up a number of smaller consultancies(including Amherst Consulting Group, Prallax Solutions and Anstec), hoping torecast itself as a supply chain management and application integration firm.Nevertheless, 2000 and 2001 were rough years for the firm; even after it sliced offmore than 2,000 employees in a series of layoffs in early 2001 and sold its 1,000-

Vault Guide to the Top 50 Consulting FirmsKeane


L I B R A R Y

person staffing division to Convergys Corp., Keane’s 2001 revenue of $779.2 millionwas down almost $300 million from 1998.

A new Keane?

After the sale of its staffing business, Keane restructured its operations to focus onthree areas: business innovation consulting, e-commerce services and application-development and -management outsourcing. And while Keane’s revenues continuedto lag in late 2001, it has begun to turn itself around by inking two major, long-termcontracts. In August 2001 it signed a 10-year, $127 million deal to upgrade the AirForce Materiel Command’s logistics supply system, and in January 2002 it agreed toa 10-year, $500 million outsourcing contract with PacifiCare Health Systems. April2002 brought more success to the firm, as Keane launched its Health InsurancePortability and Accountability Act solution, a major project meant to help companiesdeal with the administrative and technological changes necessary to comply withHIPAA’s patient confidentiality and health care delivery guidelines.

GETTING HIRED

Keane is an IT firm to the core, and at most other firms its consultants would morelikely be labeled “systems gurus.” It looks for strong programming skills in itsapplicants, and proven skills in specific languages and programs. Many of itspositions require at least some knowledge of large-systems development. BecauseKeane is also involved in a number of high-level government projects, many of itsconsultants must be able to achieve security clearance.

Keane maintains a database of job opportunities on its web site, which offers onlineapplications as well. The company also has a chat room where applicants can speakwith a recruiter.

Vault Guide to the Top 50 Consulting FirmsKeane



“I view working here likeplaying for the Yankees - Iam not sure how long they

will think I am goodenough, but while I am

here it is an amazing ride.”

— McKinsey consultant


L I B R A R Y


90 Park Avenue19th FloorNew York, NY 10016Phone: (212) 557-0500Fax: (212) 338-9296www.fmcg.com

LOCATIONS New York, NY (HQ)

PRACTICE AREASA/L and Portfolio ManagementBusiness and Operations StrategyCustomer Relationship ManagementDistribution StrategyE-Commerce and MultimediaStrategyMarketing and Segmentation

AnalysesOrganizational DesignProductivity and Cost Structure

ManagementRapid Cycle Market Research and

TestingRisk ManagementTechnology Alliances/Outsourcing

Deal StructuringTechnology Strategy and

Architecture

THE STATS

Employer Type: Private Company President: James McCormick2001 Employees: 1002000 Employees: 110

UPPERS

• High-quality financial work• Good exit opportunities

DOWNERS

• Minimal training opportunities afterfirst year

• Not much support for analysts

KEY COMPETITORS

Booz Allen HamiltonMcKinsey & CompanyOliver, Wyman & Company

EMPLOYMENT CONTACT

Recruiting CoordinatorPhone: (212) [email protected]

First Manhattan ConsultingGroup

V A U L T


42


• “Leading-edge”• “A shadow of their former self”• “Very productive”• “Haven’t heard much from them

recently”

THE SCOOP

Small but powerful

First Manhattan Consulting Group (not to be confused with the investment bank FirstManhattan) is a New York-based boutique firm with a focus on financial servicescompanies. Founded in 1980 by James McCormick, a McKinsey veteran, FMCG hasgrown steadily since its inception, with revenue per consultant among the highest in theindustry. FMCG has served 80 percent of the 70 largest bank holding companies, halfof the leading investment banks, several major foreign banks and more than 25 financeindustry vendors; no wonder The Economist called FMCG “the world’s most successfulconsulting firm.” Indeed, FMCG prides itself on not having to seek out clients — itsretention rates are high enough to allow a certain pickiness on the firm’s part.

Creating shareholder value

FMCG specializes in those issues most important to the management of financialservices companies — strategy, organization, risk management, and marketing andmanagement information systems. The firm has developed several approaches tounderstanding customer profitability and behavior-based segmentation, with apremium on fact-based analyses to support its recommendations. It also publishesbenchmark studies for the financial industry, sometimes in conjunction with otherfirms or groups like the Bank Administration Institute. FMCG is one of the moretrusted providers of such information and is regularly quoted by industrypublications, from The Wall Street Journal and Fortune to the Journal of RetailBanking. In a survey of the top 50 investment banks, when bankers were asked torank consulting firms in terms of their ability to support banks on their toughestissues, First Manhattan was ranked first or second by 62 percent of the respondents.

Desired by the competition

Because it is such a well-respected industry monitor, FMCG experience is anextremely marketable asset — major utilities, telecoms and new media companiesregularly look for individuals who have been trained at FMCG. FMCG alumni havenot only done well at client companies, but have also moved on to partnershippositions at Big Five firms, while others have founded their own consultancies.

Vault Guide to the Top 50 Consulting FirmsFirst Manhattan Consulting Group


L I B R A R Y

GETTING HIRED

Most new hires (around 95 percent, according to insiders) come to FMCG throughcampus recruiting from such schools as Harvard, Cornell, Penn, Columbia and NYU,though FMCG accepts resumes and cover letters throughout the year. Recruitingclasses range in size from 15 to 25 consultants. The firm does not actively recruit atMBA programs, though it does hire experienced people with specific skills it requiresfor certain jobs.

Consultants stress that “Resumes should be perfect, and your cover letter shouldclearly state why you are qualified to work in such a demanding environment andwhy you want to work at FMCG.” The company prefers that candidates sendresumes via snail mail, though it also sets up campus resume drops through JobTrak.Applicants can expect a response either by phone or by mail within a month.Extensive information about First Manhattan’s recruiting process can be found on thefirm’s web site at www.fmcg.com/careers.htm.

Interviews are usually done in two rounds. The first is on campus with an officer ofthe firm and generally consists of “resume questions, experience questions and acase.” But be prepared: “The questions were not standard cases, yet they tested myknowledge and thinking skills.” The second round, at the firm’s office, can involvemeetings with up to five or six employees, “from analysts to the president.” Veteransof the process advise being ready for a “long and draining day” during which allinterviews will involve a business case, guesstimate or brainteaser. Current analystssuggest that applicants take the time to “practice case questions” and “read our web siteand know about the firm.” Successful candidates, insiders tell us, are generally “logical,professional and pleasant” and “communicate points in the interview very well.”

“In the end, what matters most is pure brainpower and ability to work hard,” oneinsider maintains, though “A sense of humor doesn’t hurt.” FMCG consultantsemphasize that prospective employees should make sure the fit with the firm is right:“You should be a type-A personality — proactive, enthusiastic, thick skinned, smart,confident,” says one analyst. “If it’s not a good fit, you could be unhappy very quickly.”

FMCG runs a 10-week summer internship program for upcoming college seniors.Interested juniors should send a resume, cover letter and transcript copy via snail mail.

Vault Guide to the Top 50 Consulting FirmsFirst Manhattan Consulting Group



“Although expected inconsulting, hours are way

too long. Sometimes, it seems, for no good reason.”

— DiamondCluster International consultant


L I B R A R Y


Stephenson House75 Hampstead RoadLondon, UK NW12PLPhone: +44 20 7637 9111Fax: +44 20 7468 7006www.logica.com

LOCATIONS London, UK (HQ)Lexington, MA (U.S. HQ)Offices in 34 countries worldwide

PRACTICE AREASCRMConsultinge-BusinessEnterprise SolutionsOutsourcingSecuritySystems IntegrationWireless

THE STATS

Employer Type: Public CompanyStock Symbol: LOGStock Exchange: LondonManaging Director & CEO:Martin P. Read2001 Employees: 11,9082000 Employees: 10,0002001 Revenues: $1.62 billion 2000 Revenues: $1.21 billion

UPPERS

• Strong HR programs• Continued expansion

DOWNERS

• Competition in core businesses • Dry project work

KEY COMPETITORS

AccentureElectronic Data SystemsIBM Global Services

EMPLOYMENT CONTACT

www.us.logica.com/[email protected]

LogicaV A U L T


43


• “Great delivery capability”• “Dull, dull, dull”• “The U.K. Accenture”• “Aggressive”

THE SCOOP

An international leader

Founded in 1969 by Philip Hughes, Len Taylor and Pat Coen, Logica has grownexponentially from its humble beginnings at a North London kitchen table. Nowboasting nearly 12,000 employees in 34 countries, Logica is a full-service globalsolutions company. Logica Consulting is an independent subsidiary and thecomputer consultancy component of Logica, which also has systems integration andsoftware arms. Revitalization plans, initiated in 1993 after the departure of the threefounders and the hiring of current CEO Martin Read, shifted Logica from itstraditional project-based technology roots. Read’s strategy focused on providingvalue-added, mission-critical solutions to sectors with fast-growing IT needs such asfinancial services, telecommunications and utilities. Combined with an internationalexpansion drive and a resurgence in consultancy work, this formula provedsuccessful: By November 1999, Logica had made the FTSE 100 index of the largestU.K.-listed companies.

Logica’s earning per share continued to grow at a 40 percent annual clip for the eight-year period ending in fiscal 2001. However, with its IT services business alreadysuffering from an industry slowdown, Logica has begun to see the growth of itslucrative mobile text messaging software operations slow considerably as well.Market analysts have pointed out that Logica needs to achieve greater penetration inthe United States, Germany and France, and also have expressed doubt that the firmwill maintain its top-dog status when next-generation messaging comes into vogue.According to Dow Jones, Logica plans to concentrate more on the IT consulting-services side of its business than text messaging. In November 2001 the firmannounced that it was cutting 4 to 5 percent of its workforce, much of it from themobile networks research and development group.

Mobile trendsetters

Logica takes credit for coining the term “mobile commerce” (also known as m-commerce) in February 1997, and its focus on mobile communications has beensharp ever since. After winning two prominent mobile technology awards in 1999 —the Financial Times Global Telecommunications Award for the most innovativemobile product and the Advanced Card Award for best communications application— Logica quickly amassed a client base of more than 150 operators in 60 countries.

Vault Guide to the Top 50 Consulting FirmsLogica


L I B R A R Y

The firm now serves over half of all digital mobile operators in the world today, andits systems are responsible for more than 3 billion text messages each month.

Gone shopping

Logica underwent an extensive buying spree in 2000 in an effort to expand itsservices around the globe. The firm began the year with the purchase of Contigo, aDutch IT project management company specializing in telecommunications. In June2000, Logica formed a strategic technology alliance with Centurion Bank of India tolaunch a new series of electronic banking products. In October, Logica set its sightson Germany, gobbling up the IT services company pdv UnternehmensberatungGmbH. Later that month, Logica finalized the acquisition of Australia’s MITS, an ITservices company with approximately 550 employees. And in November of that yearthe firm acquired National Grid of ESIS Limited (ESIS) and Energy Pool FundsAdministration Limited (EPFAL), two U.K.-based companies specializing insoftware for trading in the liberalized utilities markets, for $55.3 million.

The expansion initiative continued in 2001. In February Logica expanded its Irishoperations by opening a $7.2 million product center in Cork. The following month,the firm struck an outsourcing agreement worth more than $114 million with Wales-based software provider Hyder Services. With the deal, 350 Hyder employees joinedLogica’s ranks. Finally in April, Logica’s Japanese arm announced plans to open anew office in Seoul, South Korea to service that country’s telecom industry.

Energized

Paralleling Logica’s overall expansion has been the growth of its energy and utilitiessolutions practice. The arm accounted for 20 percent of the firm’s 2001 revenue,second only to the telecom unit (43 percent). The firm provides resourcemanagement services, trading and risk management, e-commerce solutions and otherservices to a host of clients, including seven of the world’s 10 largest energycompanies. In March 2000 Logica cemented a deal with British Energy reportedlyworth about £100 million. The outsourcing arrangement — at the time the firm’sbiggest contract ever — gave Logica the responsibilities of contract management,work management, billing, payment processing, credit management and contractcenter services. The firm further improved its position in the U.K. energy industryin November 2001 with the signing of a $2.86 million SAP implementation contractwith British Gas Hydrocarbon Resources Ltd.



Now Logica is seeking to make its mark in other energy and utilities markets.Attempting to take advantage of liberalized oil, gas and electric sectors, the energyand utilities group entered the Middle East in August 2000 and has expandedconsiderably since. (The firm as a whole made its first foray into the Middle East in1995, setting up an office in the United Arab Emirates.) It has also made a move intoIndia, where the telecom and financial services practices have already established afoothold. The firm expects to increase its workforce in the country fourfold to 1,000employees and invest more than $10 million to develop new software products by theend of 2002.

Human relations initiatives

In addition to an alumni society (for ex-Logicans) that now has hundreds ofmembers, Logica has initiated other human resources programs to support itsliterature’s claim that the firm “considers employees prized intellectual assets.” TheEmployee Equity Partnership Plan, launched in 1998, enables staff around the worldto become shareholders and receive subsequent awards of shares if the companymeets growth targets. When combined with the “Save As You Earn” program, morethan a quarter of all Logica staff members are shareholders in the company. TheHome Purchase Plan, through its Mortgage Deposit Scheme or Mortgage SubsidyScheme, is open to all permanent staff members and facilitates home-buying in theU.K. (Involvement in the HPP precludes concurrent participation in the pension fund.)

Getting engaged

Despite declines in earnings and warnings of flagging growth from industry analysts,Logica has picked up a number of significant engagements in the last year. In July2001 the firm secured a five-year, $6.4 million contract to install an SAP system forthe States of Guernsey. October was a particularly busy month for the firm — Logicaagreed to provide an enterprise application integration infrastructure for Britishonline grocery Ocado, struck a revenue management software implementation dealwith Czech telecom Aliatel, and signed a $10 million satellite navigation technologysolutions pact with Alcatel Space. The following month Logica signed multimillion-dollar IT services contracts with both the Reserve Bank of India and Danish air trafficmanager Naviair. And in January 2002, the firm signed a 10-year, $286 millioncontract to create a case management system for the Crown Prosecution Service ofEngland and Wales. The firm’s largest deal to date, it is the fruit of Logica’semphasis on public sector work. Logica hopes to improve on the $125 million it



L I B R A R Y

earned from public sector contracts in 2001, a figure that accounted for 8 percent ofits revenue for the year.

GETTING HIRED

Logica prefers candidates with direct experience in computing, computerprogramming languages and environments. The firm accepts arts and social sciencestudents, but they should have an extremely strong academic record. Experiencewith e-business and Internet strategies; economic and business modeling;interconnection, regulation and roaming; service development in emerging markets;and/or mobile commerce is a big plus.

Logica has eight offices across the United States, which all participate in therecruiting process. Applicants are encouraged to apply online, and will hear backfrom the HR department as to if, and where, the subsequent interviews will takeplace. The firm hires year-round, though it says it tries to schedule most of itsinterviewing between January and June.

Logica’s half-day interviewing process includes a case analysis, where candidates areasked to evaluate the case, draw conclusions and make recommendations. Logicaalso conducts periodic informational events worldwide.





“Occasionally it isfrustrating to be not

considered for projects in other areas because we are niched in the

client’s mind”

— ZS Associates consultant


L I B R A R Y


2000 Pennsylvania Avenue, NWWashington, DC 20006Phone: (202) 777-5000Fax: (202) 777-5100www.executiveboard.com

LOCATIONS Washington, DC (HQ)London

PRACTICE AREASCorporate ITCorporate SalesCorporate StrategyFinanceFinancial ServicesGeneral Counsel Human ResourcesMarketingOperations Management

THE STATS

Employer Type: Public CompanyStock Symbol: EXBDStock Exchange: NasdaqChairman and CEO:James J. McGonigle2001 Employees: 7252000 Employees: 5882001 Revenues: $128.1 million 2000 Revenues: $95.5 million

UPPERS

• Economically sound, growing firm• Reasonable hours

DOWNERS

• Infrequent client contact• Low pay

KEY COMPETITORS

GartnerForrester

EMPLOYMENT CONTACT

[email protected]

The Corporate ExecutiveBoard

V A U L T


44


• “Excellent industry research”• “Skilled, but not diverse

practices”• “Think tank”• “All talk, no reality”

THE SCOOP

New kid on the block

Once self-described as a “for-profit corporate think tank,” The Corporate ExecutiveBoard (CEB), a spin-off from Washington, D.C. consultancy The Advisory Board,now bills itself as a business-to-business content firm. In its own humble words,CEB is “a modest scribe to the remarkable advance of great ideas in commerce andhuman affairs.” The firm provides best practices research and executive education tomember firms, now more than 1,700 of the world’s leading corporations. More than70 percent of the companies in the Fortune 500 are CEB subscribers, as are overhalf of the world’s 300 leading financial firms; clients include Citigroup, Coca-Colaand Microsoft.

CEB began as an outgrowth of The Advisory Board’s health care group, eventuallybecoming a separate corporate practice in 1997. Two years later CEB went public,raising $155 million. Although the chip and the old block would seem like naturalcompetitors, The Advisory Board focuses only on the health care industry, whileCEB researches all other industries.

Your study buddy

CEB maintains that is not a consultancy in the traditional sense, inasmuch as it doesnot handle implementation and does not charge for its services on an hourly or perdiem basis. Instead, CEB simply gathers proven business solutions from largecompanies, and then charges a hefty fee (a yearly subscription in 2001 reportedly cost$30,000) to dispense expertise customized to the needs of its corporate clients. Alsounique is its practice of including “client-members” as subjects of analysis and thensharing the results with all companies involved.

If you’re going to study, study big. The firm examines broad questions affectingentire industries — such as strategy, operations and management — rather thansmaller client-specific issues. In its relatively brief history, the company hascompiled a massive base of information on the best practices of corporations, as wellas other related business strategy. (It also offers executive education and trainingservices.) CEB’s 1,700-plus clients gain access to the 80 studies and 13,000 researchbriefs the company publishes each year on a subscription basis. The result of morethan 40,000 interviews with businesspeople around the world, the briefs cover avariety of business areas, including legal, sales, information technology and insurance.

Vault Guide to the Top 50 Consulting FirmsThe Corporate Executive Board


L I B R A R Y

Growing up

The Corporate Executive Board has already seen its efforts pay off. The company’srevenues have grown at about a 35 percent clip annually through 2001, a rate itexpects to maintain through the introduction of a number of new research initiatives.The October 2001 launch of the Procurement Strategy Council — a group focusingon issues affecting chief procurement officers at large corporations — brought thefirm’s total number of research programs to 18, double the number it offered in 1998.In 2001, this rapid expansion of services and financial success landed The CorporateExecutive Board at No. 5 on BusinessWeek’s Hot Growth Companies list.

Community outreach

CEB employees take an active role in their community. Among other activities, in2001 numerous staffers helped restore a recreation center as part of Greater DC CaresDay, participated in the AIDS Ride, and were involved in a number of fundraisingendeavors. In June 2001, CEB donated 600 books to a local nonprofit organizationdedicated to helping public school students. All told, CEB and its employees havecome to the assistance of more than 150 nonprofit groups, including Language, Etc.,the Washington Literacy Council and For Love of Children.

GETTING HIRED

The Corporate Executive Board recruits on campus at a number of top universitiesand business schools. Sources report going through two interviews, an informationalinterview and a more formal interview with several managers. Applicants canexpect a “research-related case question”; one insider tells us the interview questionsprobed “how I might approach an actual topic that might be assigned to a researcherin the group.”

New hires enter one of six groups: Customized Research, Strategy Research,Marketing, Member Services, Educational Services and Administrative Groups.Information systems positions are also available. CEB says it is flexible aboutallowing employees to move between functions to achieve a “cross-pollination ofintellect across the firm.”



SURVEY SAYS

Young and restless

The Corporate Executive Board is young, both in terms of the company and its staff— even most managers are not out of their 30s. As one source remarks, “Itconsistently strikes me that if you’ve been at the firm for more than two years, you’re‘old-school.’” Sources tell us that this makes the firm’s culture extremely relaxedand open: “Each of the offices has its own distinct culture,” says one CEBer. “ButI’d say on the whole the culture is very young, fun and collegial. The firm’s ‘official’core values — spirit of generosity, force of ideas — seem to genuinely infuse the firmculture. However, by professional services industry standards, I’d say it’s unusuallylaid-back.” Nevertheless, don’t expect to simply walk in off the street and take a job.CEB “is fairly demanding about determining the applicant’s suitability for thespecific position during the recruiting process.”

The hours at CEB tend to reflect the culture. Insiders tell us it’s the “oppositeextreme of I-banking,” with a strong emphasis on quality work but a de-emphasis onface time. “Working late definitely does not impress here,” one respondent says. “Infact, I’ve been approached by my manager for working too late on occasion.”

Is it worth it?

While the work/life balance at CEB is a big plus, the compensation isn’t. OneLondon-based respondent says he “can’t imagine it being much lower, at least at myoffice. Base salary, bonus and benefits are all significantly lower than those ofcomparable positions at one of the top-tier consultancies.” Nor are benefits, outsideof the standard industry package, much to write home about. The firm has beenknown to skimp on travel expenses, and requires employees to fill out detailedexpense accounts. “It’s probably the most significant drawback of working here,”one source opines, “knowing that you’re going to face serious resistance if you takea taxi home from the airport instead of public transport. It’s more than the absenceof perks — it’s also about not feeling valued for the work you do.”



L I B R A R Y


345 California StreetSuite 2500San Francisco, CA 94104 Phone: (415) 296-9200Fax: (415) 397-2836www.swanderpace.com

LOCATIONS San Francisco, CA (HQ)

PRACTICE AREASBusiness-Unit Growth Strategy Category Management Competitive & Market Assessment Corporate Growth StrategyCorporate Portfolio StrategyMergers & Acquisitions

THE STATS

Employer Type: Subsidiary of KurtSalmon AssociatesFounders: Dan Swander and Bill Pace 2001 Employees: 43

UPPERS

• Focused operations

DOWNERS

• Small niche player

KEY COMPETITORS

AccentureBain & CompanyBoston Consulting GroupDeloitte ConsultingMcKinsey & CompanyPwC Consulting (Monday)

EMPLOYMENT CONTACT

[email protected]

Swander Pace & CompanyV A U L T


45


• “Deep industry knowledge “• “Tiny”

THE SCOOP

Humble beginnings

In 1987, consulting veterans Dan Swander and Bill Pace decided to combine theirexpertise in the consumer products industry. When Swander Pace & Company firstopened its doors in San Francisco that year, the “company” employed, in additionto the two founders, just one other consultant and an office manager. The firm hadonly one client at its inception, and it worked on one project at a time for its first yearof existence.

Growing up

Swander Pace has definitely grown up since then. The firm now employs more than40 professionals and has seen annual revenues increase by an average of 20 percentover the past three years. The firm serves some of the largest companies in the food,beverage, consumer packaged goods and retail industries; more than half of itsbusiness comes from clients with more than $1 billion in annual sales. In December2000, Swander Pace merged with the strategy practice of Atlanta-based consultancyKurt Salmon Associates. The firms have since been integrated, but Swander Pace &Company still remains as a consulting brand under the KSA umbrella. (For thisreason, the two firms are listed separately in this book.) Bill Pace, who served aspresident of Swander Pace from 1996 to 1999, was named CEO of Kurt SalmonAssociates effective March 1, 2002.

More than just consulting services

In addition to handling mergers and acquisitions, corporate strategy and otherconsulting work, Swander Pace has its fingers in a number of other pies. Each yearthe firm hosts the Consumer Markets Forum, a conference for senior executives inthe food and consumer products industries held in San Francisco. Swander Pace alsoproduces several publications, including a comprehensive annual report on thegrocery manufacturing industry and short quarterly commentaries on various issuesin the food and consumer packaged goods sectors.

Swander Pace is also involved in the private equity business, maintaining a strategicpartnership with Swander Pace Capital (SPC). (Swander Pace provides SPC and itsportfolio companies with consulting and related investment advisory services, but thetwo firms are independent businesses.) Managing more than $300 million in equity

Vault Guide to the Top 50 Consulting FirmsSwander Pace & Company


L I B R A R Y

capital, SPC, which was founded in 1996, restricts its investments exclusively toconsumer goods companies. In June 2001, SPC completed an acquisition ofCincinnati’s Totes-Isotoner Corp., the well-known gloves and umbrella manufacturer.

GETTING HIRED

Swander Pace’s literature suggests that the firm is looking for people who areinterested in staying in consulting for their entire career, but the firm says that this isnot a prerequisite. An interest in working in the consumer products sector is required,but previous experience in the industry (or anywhere in the field of consulting for thatmatter) is not. Indeed, Swander Pace asserts that it hires consultants with a varietyof backgrounds. Prospective employees should be willing to travel — according tothe firm, consultants average eight days per month on the road.

Swander Pace’s interview process, which is tied to that of Kurt Salmon Associates,consists of three rounds. The firm hires MBAs into the consultant position;consultants can advance to manager and eventually to principal. Undergrads comeaboard as analysts and may be promoted to senior analyst and consultant without anadditional degree. As a result of the merger with KSA, interested Swander Paceemployees may work in practice areas of either firm.

Vault Guide to the Top 50 Consulting FirmsSwander Pace & Company




“The company verynoticeably attempts to sell

to clients close to ouroffices to decrease our

physical travel.”

— PA Consulting Group insider


L I B R A R Y


4440 Rosewood DrivePleasanton, CA 94588-3050Phone: (800) 308-3838Fax: (925) 520-6060www.commerceone.com

LOCATIONS Pleasanton, CA (HQ)44 offices worldwide

PRACTICE AREASCreative Design and Interactive

MarketingCustomer OperationsStrategy ConsultingTechnology Consulting and

Integration

THE STATS

Employer Type:Division of Commerce OneStock Symbol: CMRCStock Exchange: NasdaqPresident of Global Services:Ken Bajaj2002 Employees: 1,1002001 Employees: 3,7002001 Revenues: $408.6 million2000 Revenues: $401.8 million

UPPERS

• Strong partnerships

DOWNERS

• Widespread layoffs

KEY COMPETITORS


EMPLOYMENT CONTACT

www.commerceone.com/careers/

Commerce One GlobalServices

V A U L T


46


• “Friendly, helpful, experienced”• “Hanging on by a thread”

THE SCOOP

Taking it to the E

Commerce One is a leader in the e-marketplace industry, helping companies increasethe efficiency of their business-to-business transactions. Since 1996, the Pleasanton,Calif., company has been moving its clients’ sourcing and procurement operationsonto the Web, and it has made a name for itself by consistently rolling out softwareupgrades and teaming up with, or acquiring, competitors. Including all of theCommerce One global operations, the company boasts 44 offices in 18 countries anda total staff of about 1,100.

Taking a bite out of AppNet

When Commerce One snapped up AppNet — which Advertising Age ranked as thefourth-largest interactive media services agency — in a $2 billion stock swap inSeptember 2000, it quadrupled the size of its consulting division, renamed the wholeoperation Commerce One Global Services, and suddenly had a major presence in thee-marketplace and e-business communities. AppNet’s founder, Ken Bajaj, cameaboard as a Commerce One executive VP and the president of Global Services. InMarch 2001, Commerce One further expanded its e-marketplace presence bypurchasing Austin, Texas-based Exterprise, which makes software for building andmanaging B2B networks, for $59.6 million.

A growing e-marketplace community

AppNet’s specialty was e-marketplaces — 80 percent of its work was with B2Bcompanies, 90 percent of which were in the Fortune 1000 and 30 percent of whichwere involved in e-marketplaces — and the acquisition contributed greatly toCommerce One’s efforts to expand within the e-marketplace industry. In December2000, Commerce One bought into Covisint, an automotive e-marketplace founded bypartners Ford, General Motors and DaimlerChrysler, by giving Ford and GM 14.4million shares of Commerce One stock each.

Grab your partner

Commerce One has proved that it is not afraid to partner with firms in otherindustries, or even within the e-marketplace industry itself, by working with suchcompanies as Microsoft, Citigroup and SeeBeyond to improve its integrated

Vault Guide to the Top 50 Consulting FirmsCommerce One Global Services


L I B R A R Y

offerings. In June 2001, the German firm SAP AG, another leading e-marketplaceprovider and a partner with Commerce One on several e-business solutions products,announced that it was investing $225 million in exchange for 20 percent ofCommerce One stock. And although the relationship faltered in late 2001 when thecompanies divided their e-procurement efforts, they later reaffirmed theircommitment to their core B2B joint development and sales efforts.

Stormy seas

In an effort to insulate itself from the tumults of the U.S. economy, Commerce Oneannounced in May 2001 that it would cut 10 percent of its workforce across theboard. But that wasn’t enough, and in October 2001 the company cut another 1,300jobs — 700 through staff eliminations and 600 by spinning off a number ofnonessential service operations. Despite its best efforts, the company still posted anet loss of $66.5 million for the fourth quarter of fiscal 2001. By the end of the year,rumors were even circulating that SAP would buy Commerce One, though SAP Co-Chairman Hasso Plattner denied them. More bad news came in April 2002, when,after reporting a $220 million loss in its Q1 report, Commerce One laid off another500 people, or one-third of its remaining workforce.

A new angle

In January 2002, Commerce One introduced the latest version of its flagshipsoftware, and with it a shift in the company’s e-marketplace strategy. Gone was theall-encompassing vision of promoting public marketplaces. In its place is a simpler,more modest focus on managing business processes and improving short-cyclereturns on investments. Commerce One admits that the change in tack had a lot todo with the downturn in the economy and the failure of its aggressive push forintegrated e-marketplaces, but the company also expects the new software to improveits financial outlook.

GETTING HIRED

Like most consulting firms, Commerce One says it’s “looking for skilled, energetic,experienced professionals who aren’t afraid to take risks or to drive change.” Thefirm does the bulk of its recruiting through the career section of its web site —www.commerceone.com/careers/ — and on campus at top business schools. On the



web site, prospective employees can search job openings, apply online and storefavorite openings in a personal job cart, where they will remain for 14 days.



L I B R A R Y



200 E. Randolph StreetChicago, IL 60601Phone: (800) 438-6487Fax: (312) 381-6032www.aon.com


PRACTICE AREASCompensationEmployee BenefitsHuman Resources OutsourcingManagement Consulting

THE STATS

Employer Type:Subsidiary of Aon CorporationCEO: Donald Ingram2001 Employees: 7,4002000 Employees: 6,6002001 Revenues: $938 million2000 Revenues: $770 million

UPPERS

• Growing practice

DOWNERS

• Alienating corporate culture

KEY COMPETITORS

Deloitte ConsultingHewitt AssociatesMercer Human Resource ConsultingTowers PerrinWatson Wyatt Worldwide

EMPLOYMENT CONTACT

http://jobsearch.aon.newjobs.com

Aon Consulting WorldwideV A U L T


47


• “Well-respected in certain riskareas”

• “Not a top-tier player”• “Not necessarily the best and

brightest, but hardworking”

THE SCOOP

Focused expansion

Aon Consulting Worldwide is a subsidiary of Aon Corporation, the world’s second-largest insurance brokerage. (Aon is Gaelic for “oneness.”) Although theconsultancy began as a strictly human resources management firm, having grown outof Aon’s benefits practice (founded in 1982), it has since flowered into a multifacetedoperation, providing everything from management strategies to marketingcampaigns. Aon divides its work into five areas: employee benefits, compensation,outsourcing, communication and management consulting — the last of whichdebuted in December 2001.

Although Aon Consulting offers a wide range of services, its primary focus remainsthe analysis of workforce productivity, particularly for firms that hav experiencedrapid structural or environmental change. In recent years, the company haspurchased a number of smaller outfits to bolster its HR-related offerings. In 1997 itacquired Pecos River, a change management firm, and the following year it boughtRath & Strong, a management consultancy. 2001 was a banner year for Aon’sexpansion strategy, as it added three firms to its herd — ASI Solutions, an HRconsultancy located outside Philadelphia; Groupe Prevention Progesst (yes, that’sreally how it’s spelled), a Canadian management consulting firm; and ActuarialSciences Associates, a New Jersey-based provider of administration andcompensation solutions.

Aon’s multimanagers

In September 2002, Aon will begin to offer its smaller clients the opportunity to workwith multiple managers instead of having a single manager directing their account.sThis new policy will allow Aon clients access to a number of specialists withouthaving to sign multiple contracts, something many smaller firms cannot afford.Aon’s clients approve — they’ve already committed $877 million to the process. Sofar the opportunity is only open to existing clients, but the firm says it plans to offerit to new clients after two or three years.

All under one roof

In December 2001, Aon restructured its consulting operation by bringing itsmanagement-related endeavors under one group, Aon Management Consulting. The

Vault Guide to the Top 50 Consulting FirmsAon Consulting Worldwide


L I B R A R Y

new practice, which operates parallel to Aon’s existing groups, is primarily a mergerof the Pecos River and Rath & Strong offerings and capitalizes on Rath & Strong’sSix Sigma suite of HR management solutions.

Like many HR consulting firms, Aon Consulting did well during the economictumult of 2001, as companies turned to the firm for help with benefits restructuringand downsizing. For the year, the firm’s revenue jumped 22 percent to $938 million,a rise also attributable in part to the ASI acquisition.

Striking a work/life balance

Unlike many consulting firms that pay lip service to a balance between work and life,Aon keeps its word by providing a number of alternative work plans for employeeswith school or family commitments, including telecommuting, flexible workschedules, compressed work schedules and job sharing. Aon Consulting also offersseveral career development programs for its employees. Aon University, an in-housecontinuing education program, offers courses in such fields as e-business, sales andrisk management. The company’s mentoring program teams new hires with olderemployees who provide them with career development advice. And all employeescan take advantage of Aon’s transfer program, which allows them to work in anoverseas office on a short-term assignment.

GETTING HIRED

Aon only accepts resumes through its online application database, submitted inresponse to posted job opportunities (access the database athttp://jobsearch.aon.newjobs.com). The company also has a limited campus visitschedule. The schedule is mostly limited to mid-Atlantic schools, though NorthCarolina students are in luck — the schedule includes Wake Forest University andUNC Chapel Hill.

Vault Guide to the Top 50 Consulting FirmsAon Consulting Worldwide



“Even an entry-level person can have his ideasheard at the very top of

the organization.”

— Integral source


L I B R A R Y


711 Boylston StreetBoston, MA 02116Phone: (617) 535-5000Fax: (617) 535-6001www.aquent.com

LOCATIONS Boston, MA (HQ)71 offices worldwide

PRACTICE AREASApplication DevelopmentDatabase Design and DevelopmentDesktop SupportLegacy SystemsProject ManagementQuality Assurance

THE STATS

Employer Type: Private CompanyCEO: John H. Chuang2000 Employees: 15,9002001 Revenues: $150 million2000 Revenues: $190 million

UPPERS

• Large client network

DOWNERS

• Evolving culture and structure

KEY COMPETITORS

AndersenBooz Allen HamiltonComputer Sciences Corporation

EMPLOYMENT CONTACT

www.aquent.com/careers

AquentV A U L T


48


• “Leader”• “Indigestion from too many

acquisitions”• “Rudderless”

THE SCOOP

Renaissance reborn

Not long ago, Aquent would not have merited consideration for the Vault Guide tothe Top 50 Consulting Firms. As a staffing agency, the company was adept at placingtech professionals, but it did not have a complementary IT solutions arm. That allchanged, however, when the privately held company acquired Waltham, Mass.-basedtechnology consultancy Renaissance Worldwide in December 2001. The deal,valued at approximately $105.8 million, signaled a new and positive chapter in therocky history of Renaissance Worldwide. The firm had struggled mightily since themarket for tech services went sour; after trading at nearly $30 per share in the winterof 1998, by the spring of 2001 its stock was on the brink of being delisted from theNasdaq. In June of that year, Renaissance CEO G. Drew Conway made a proposal,accepted by the company’s board of directors, to buy out the 78 percent of thecompany that he didn’t already own. Two months later, however, Aquent emergedwith an unsolicited offer of $2 per share, trumping Conway’s $1.65 offer. Conwaywas unable or unwilling to make up the difference, and Renaissance Worldwideofficially became the property of Aquent on December 11th, assuming the name ofits new parent.

Some background

Prior to having its operations folded into the Aquent umbrella, RenaissanceWorldwide had developed from a combination of nearly two dozen companies. Itsoriginal parent company, The Registry, Inc., was founded in 1986. Through bothorganic growth and acquisitions, the firm — renamed Renaissance Worldwide in1998 — employed more than 3,500 professionals in 28 locations in the United Statesand India. The firm went public in June 1996.

In 2000 Renaissance Worldwide began to divest itself of non-core business units.The Business Strategy Group underwent a management buyout in March 2000 andnow goes by the name of Adventis. The Hunter Group, formerly RenaissanceWorldwide’s provider of enterprise business solutions, was sold to Cedar Group ofthe United Kingdom in October 2000 for $72 million. In February 2001, the majorityof e-business and management consulting subsidiary Align360 was purchased fromRenaissance Worldwide in a management buyout for approximately $5 million andequity. (Renaissance had acquired Align360, then known as The McClain Group, for

Vault Guide to the Top 50 Consulting FirmsAquent


L I B R A R Y

$15 million in 1997.) The rest of Align360 was incorporated into Renaissance’s ITConsulting Services business unit.

Meet the parent

Like Renaissance, Aquent has also undergone a number of incarnations since its 1986founding in CEO John Chuang’s Harvard dorm room. Initially a desktop publishingoperation known as MacTemps, the company evolved into a temporary staffingagency for creative and technology workers, changing its name to Aquent (meaning“not a follower”) in 1999. The company staffs workers in areas ranging from graphicdesign to application development, in addition to performing administrative taskssuch as payroll transfer. After adding 2,900 IT personnel from Renaissance, Aquentnow employs nearly 16,000 professionals in more than 70 markets around the world.

GETTING HIRED

Applications to Aquent work differently from most other consulting firms, becauseAquent is unlike most other consulting firms. Rather than establishing an employer-employee relationship, Aquent brings consultants on as clients, acting as their agentto match them with firms looking for contract, temp or permanent staff in IT and creativefields. The firm offers an online application form and elects to represent about 10percent of all applicants. The web site also features a database of available jobs.

Vault Guide to the Top 50 Consulting FirmsAquent



“They say this is a pretty good job if you have

a bad marriage.”

— PwC Consulting (Monday) insider


L I B R A R Y


32 Via LeopardiMilan 20123ItalyPhone: +39 02-4854-81Fax: +39 02-4800-9010www.valuepartners.com

LOCATIONS Milan, Italy (HQ)RomeSão Paulo

PRACTICE AREASChange ManagementPortfolio StrategiesProduct RedesignRestructuring/TurnaroundValue Management

THE STATS

Employer Type: Private CompanySenior Director: Giorgio Rossi Cairo2001 Employees: 2302001 Revenues: $39.2 million2000 Revenues: $29.0 million

UPPERS

• Great exposure to internationalclients/culture

• Beautiful Milan and Rome offices

DOWNERS

• No U.S. offices• No U.S. name recognition

KEY COMPETITORS

Bain & CompanyMcKinsey & Company

EMPLOYMENT CONTACT

[email protected]

South [email protected]

Value PartnersV A U L T


49


• “Increasing power”• “Too Italian”• “Who?”

THE SCOOP

First Italy, then the world

Value Partners proudly holds its position as the largest strategy consultancy based inItaly. Founded in 1993 by Giorgio Rossi Cairo and Vittorio Giaroli, the firm todayhas 230 professionals and 16 principals in its Milan, Rome and São Paulo offices.While Value Partners does not have any offices in the United States, it is eager torecruit American employees. And though the firm bases most of its consultants inItaly, its has a flair for the international consulting scene — Value Partners hascompleted 150 projects in 20 countries on six continents. In 2001 the firm handledprojects — some 40 to 45 percent of which were abroad — for 60 clients. It earned$39.2 million in 2001 (a 35 percent increase from the previous year) and expects togenerate more than $61 million in fiscal 2002.

Casting a global net

Realizing the difficulty of expanding beyond the Italian borders, Value Partners hasopted to partner with two other consulting firms, OC&C Strategy Consultants ofGreat Britain and the McKenna Group of Mountain View, Calif. The three firmscooperate on a number of projects and coordinate marketing campaigns; thepartnerships also give Value Partners access to offices throughout the rest of Europeand in the United States and Japan. The McKenna Group is a 30-year-old practicethat has remade itself into an e-commerce and new media marketing firm, and its tieswith Value Partners have given the Italian firm a foothold in the U.S. market.

Recent growth

Value Partners handles market and product strategy, acquisitions, turnarounds andchange management for clients including Pirelli, Fiat, Telecom Italia, Philip Morrisand Morgan Stanley. About 45 percent of its client list is made up of companies ithas served for more than four years. Since 2000, the firm has been diversifying itsoperations. That year it launched VpWeb, a networking solutions unit, as well asVpTech, an IT security initiative. 2001 saw the creation of venture capital advisorybusiness VpVentures; VpFinance, which assists clients with the valorization andtransaction of their assets, was also rolled out that year. The firm expects to continuegrowing — it forecasts that it will employ 400 professionals and earn more than $109million in revenue by 2005.

Vault Guide to the Top 50 Consulting FirmsValue Partners


L I B R A R Y

GETTING HIRED

Predictably, Value Partners looks for employees with an affinity for internationalwork. But even more than an interest in global business, prospective employeesshould have the knowledge to back it up — a degree in economics, engineering orinternational relations, along with a fluency in at least one European language otherthan English. And while Italian is not a must, anyone with a working knowledge ofit will have a big advantage. In the United States, the company recruits MBAsexclusively, and visits Harvard, Columbia, Wharton, Stern and MIT each year.

The interview process at Value Partners is extensive. After receiving resumes, thecompany invites a select number of candidates to a preliminary interview. If thatgoes well, the candidates return for a second and third round, and finally a recruitingday, where they meet with two or three principals. If they pass through the gauntletof interviews, they receive an offer. The preliminary interviews center around anapplicant’s resume, but the second and third involve case questions. (A samplequestion can be found at: http://www.valuepartners.com/careers_samplecases.html.E-mail your answer to the case — you might get a call back from Value Partners ifyour reasoning is excellent.)

Value Partners has two entry-level positions, business analyst for those right out ofschool and associate for those with an MBA and/or at least two years of consultingexperience. From there employees will advance to engagement manager, seniorengagement manager and, if all goes well, principal over a six-to-eight-year period.

Vault Guide to the Top 50 Consulting FirmsValue Partners



“Sapient’s culture is chockfull of consulting zealots.People are passionate andcommitted to the goals of

our clients and ourcompany.”

— Sapient source


L I B R A R Y


8 Greenwich Office ParkGreenwich, CT 06831Phone: (203) 629-1200Fax: (203) [email protected]

LOCATIONS Greenwich, CT (HQ)LondonSydneyTokyoToronto

PRACTICE AREASCorporate Banking Derivatives Fixed IncomeForeign Exchange Investment Banking Investment ManagementStock brokerage

THE STATS

Employer Type: Private CompanySenior Managing Director:John H. (Woody) Canaday2002 Employees: 1502001 Employees: 160

UPPERS

• Contact with upper management• Stable client relationships

DOWNERS

• Some administrative tasks• Company claustrophobia

KEY COMPETITORS

Brendan WoodsFirst Manhattan Consulting GroupOliver, Wyman & CompanyOrion Consultants

EMPLOYMENT CONTACT

Attn: Director of Human ResourcesFax: (203) [email protected]

Greenwich AssociatesV A U L T


50


• “Banking experts”• “Unknown”• “Mysterious”

THE SCOOP

Managing knowledge every day

Greenwich Associates provides research-based consulting to commercial banks,investment banks, brokerage firms, bond dealers, investment managers and othermajor institutions. At last count, Greenwich Associates worked in more than 100major markets for professional financial services. Greenwich is now at the forefrontof one of the prime trends in management consulting, knowledge management (or asthe firm calls it, “the art of informing, advising and advocating action”).

Serving the financial community, thoroughly

Many of Greenwich Associates’ clients are the very top firms in the financial servicesindustry. Since its 1972 founding, the Greenwich, Conn.-based consulting firm hasbuilt a reputation for strong client relationships, experienced consultants and in-depthresearch (somewhat similar to the Corporate Executive Board, another top 50 firm inthis book). Annual research efforts consist of as many as 40,000 interviewsconducted in 70 countries. This information is compiled into more than 25 reportsfor 250-plus financial services companies worldwide. However, Greenwich shunsthe word “survey,” considering its research “more of a census, since we try to talk to100 percent of the market.”

Through a subsidiary, the firm operates several call centers to assist with datacollection for many of its studies. Among many others, Greenwich has recentlyconducted studies of the performance of investment banks in European bondmarkets, the popularity of online trading systems among foreign exchanges, and thepay rates of asset management professionals. Much of the firm’s recent research wasdistilled into the March 2001 Greenwich Associates-penned Financial ServicesWithout Borders: How to Succeed in Professional Financial Services.

Long-term clients

More than 95 percent of Greenwich’s work is with continuing clients. Greenwich hasmaintained some relationships for over 20 years — perhaps why it likes to say that“the clients are the firm.” Among its clients, Greenwich counts big names like Bankof America, Merrill Lynch, Deutsche Bank, Goldman Sachs, Citibank and FidelityInvestments. Moreover, the firm is proud that many of its directors have stuck with

Vault Guide to the Top 50 Consulting FirmsGreenwich Associates


L I B R A R Y

Greenwich for 10, 15 or even 20 years. Indeed, the firm’s founder, Charley Ellis,remained on board until June 2001.

GETTING HIRED

Research associates at Greenwich must have a top-tier bachelor’s degree orequivalent experience, strong organizational skills and analytical abilities, andexcellent communication skills. Research associates join the firm’s client servicesgroup; foreign language skill is a major asset for this position. Visit the“Employment Opportunities” section of Greenwich Associates’ web site for detailson job opportunities. Applicants can e-mail, snail mail or fax resumes to the attentionof the director of human resources.

Greenwich hires about three MBA associates per year; most associates are hired witha good chance of becoming partners in the pint-sized firm. Greenwich prefers thatits hires have two to four years of experience in financial services or financialservices consulting organizations. The firm also hires independent contractors toconduct interviews of high-ranking executives in the various fields it researches.

OUR SURVEY SAYS

Stuck at home in Connecticut

Greenwich Associates is described as “a little on the conservative side,” thoughconsultants note that many other firms are even more stringent. The firm has beendressing business casual for several years now. One contact reports being happy withthe company and the people, although he says that he would prefer New York to thefirm’s suburban Connecticut locale.

A very small firm

The firm is “really small. Only about 140 people work here,” reports one insider.(As of press time, the number was closer to 150.) And don’t expect much company,because “[Greenwich] is privately held and fairly unique in what it does, so there islittle likelihood of a merger anytime soon.” Keep in mind that the firm has expanded



its global footprint with locations in Sydney, London and Toronto and a representativeoffice in Tokyo. In this small and dedicated firm, “A lot of people find it’s not whatthey thought or wanted,” but “a lot of people find they like it and go with it.”



L I B R A R Y


TOP50CONSFIRMS

THE BEST OFTHE REST


L I B R A R Y

Computer Task Group

800 Delaware AvenueBuffalo, NY 14209-2094Phone: (716) 882-8000Fax: (716) 887-7456www.ctg.com

LOCATIONS Buffalo, NY (HQ)47 locations worldwide

PRACTICE AREASApplication Management OutsourcingIT Solutions IT Staffing

THE STATS

Employer Type: Public CompanyStock Symbol: CTGStock Exchange: NYSECEO: James R. Boldt2001 Employees: 3,2002000 Employees: 3,9002001 Revenues: $312.1 million2000 Revenues: $345.7 million

UPPERS

• Opportunities to work in Europe• Benefits begin immediately upon

start date

DOWNERS

• Recent job cuts

KEY COMPETITORS

AccentureComputer Sciences CorporationElectronic Data SystemsKeane

EMPLOYMENT CONTACT

http://careers.ctg.com



• “Well-respected”• “Third-tier”• “Never heard of them”

THE SCOOP

Full service in the new economy

Computer Task Group, located in the lovely but chilly city of Buffalo, N.Y., is adedicated IT consultancy offering a broad spectrum of services. Founded in 1966 asan IT staffing firm, it transformed itself during the 1990s into a full-service e-consultancy, planning, designing and implementing applications and IT solutions forlarge and mid-sized companies. But in 2000, just as CTG was beginning to reallygain notice within the e-business world, the dot-com bubble burst, saddling theconsulting firm with several quarters of enormous losses and staggering debt. Aftera series of painful cutbacks, CTG has crawled back on track — though it will likelytake another year for the firm to regain its former strength.

Service-sector beginnings

American business faced a serious problem in the late 1960s: There was a growingneed for information technology services and infrastructures, but very fewcorporations had the staff or resources to implement them. Enter the IT staffingindustry, with CTG in the lead. Developed by two ex-IBM employees, the firm tookoff quickly, going public in 1969 and purchasing a number of rivals during thefollowing decade. (Not surprisingly, IBM has always been CTG’s biggest client,accounting for 20 percent of its business today.) In 1990, CTG proudly boasted $244million in annual revenue and offices in 45 U.S. and European cities, all of whichachieved ISO 9001 quality certification, one of the highest quality ratings in the ITindustry. By the end of 1997, the firm had a market value of $570 million.

Changing course

Despite its success, by the mid-1990s CTG found itself with flagging profits, and in1996 it began to move from IT staffing to a broader range of computer-relatedservices. It trimmed its client list in half and offered its remaining customers“managed services” — planning, designing and implementing particulartechnologies and applications — and in some cases providing the staff to run them aswell. The move turned out to be a good one, at least at first — CTG’s profits grewby 61 percent during 1997.

The health care consultancy

Part of CTG’s transition included a focus on the growing IT needs of the health careindustry. In 1999 the firm purchased Cincinnati-based Elumen Solutions, an ITconsultancy for the health care provider market, for $89 million; Elumen was folded

Vault Guide to the Top 50 Consulting FirmsComputer Task Group


L I B R A R Y

into the company’s existing health care operations and renamed HealthCareSolutions. CTG also inked a number of partnerships to deliver health care-specificIT solutions, capped by a February 2002 deal with Sybase, a software company, todevelop e-business infrastructures for hospitals and other care delivery organizations.In addition, it expanded its Health Insurance Portability and Accountability Act(HIPAA) practice to better serve health care providers and payors in need ofcompliance with federal regulations.

Dark days

But just as the company had settled into its new tack, the wind dropped out of itssails. Thanks in part to sagging demand for IT outsourcing, CTG experienced severalconsecutive negative quarters beginning in mid-1999, and it had to shed more than1,500 jobs between mid-2000 and late 2001. In an attempt to return to profitability,CTG created a new e-business unit, Zenius, as well as two complementary units,Exemplar and ITCapital. In April 2000 it teamed with San Francisco’s Actuate to usethe latter’s eReporting software. CTG also began working with other software firmsin the industry to reinforce the company’s transition into the solution provider industry.

Nevertheless, profits continued to flag during 2000. CTG posted a 27 percent dropin revenues for the year, including a 92 percent drop in fourth-quarter profits from thesame period a year before. By May 2001, the firm’s profits were at a five-year low.In response, CTG eliminated the Zenius, Exemplar and ITCapital business units ithad created just the previous year. Meanwhile, the firm shifted its concentration tothe sectors in which it has fared best, such as health care. In April 2002 it launchedCTG Retail Solutions, reflecting the expansion of its vertical market approach and itsfocus on its core services of IT staffing, application management outsourcing and ITsolutions. These measures have shown results — by early 2002, CTG had achievedtwo consecutive quarters of modest profitability.

GETTING HIRED

CTG posts job openings in a database accessible through its web site. Applicants cancreate job profiles, post their resumes and engage search agents to alert them whenjobs that meet their interests become available. Applications can be completed athttp://careers.ctg.com.

Vault Guide to the Top 50 Consulting FirmsComputer Task Group


“The San Francisco officeis the nicest officeenvironment I have

ever seen.”

— Marakon Associates consultant



L I B R A R Y

First Annapolis Consulting, Inc.

900 Elkridge Landing RoadSuite 400Linthicum, MD 21090Phone: (410) 855-8500Fax: (410) 855-8599www.FirstAnnapolis.com

LOCATIONS Linthicum, MD (HQ)

PRACTICE AREAS Card IssuingCommercial CardsElectronic BankingEmerging PaymentsLitigation SupportOutsourcing Support ServicesPortfolio and Risk ManagementRetailer ServicesTransaction Processing

THE STATS

Employer Type: PrivateManaging Partner & CEO:William J. Westervelt Jr.2001 Employees: 502000 Employees: 50

UPPERS

• Strong niche practice

DOWNERS

• Little name recognition

KEY COMPETITORS

AccentureAndersenBoston Consulting GroupDeloitte ConsultingMonitor GroupStern Stewart & Company

EMPLOYMENT CONTACT

Director of RecruitingFirst Annapolis Consulting, Inc.900 Elkridge Landing RoadSuite 400Linthicum, MD 21090 [email protected] Fax: (410) 865-8899



• “Good group of people”• “Never heard of them”

THE SCOOP

Consulting and M&A advisory — in one!

First Annapolis Consulting, Inc. was formed in 1991 when two veterans of thefinancial services industry, Frederick A. White and William J. Westervelt, decided tostrike out on their own. White left his job with Washington, D.C., consultancy Furash& Co.; Westervelt was coming off a gig with Atlanta’s National Data Corp. The twoteamed up to create First Annapolis, a unique mergers-and-acquisitions advisoryservices and management consulting hybrid firm. Based in Linthicum, Md. (part ofthe Baltimore/Washington, D.C., metropolitan area), First Annapolis’ practice centerson advising clients on issues associated with payment-related services such as creditcard issuing and transaction processing, electronic banking and online paymentsystems. The firm mainly serves financial services companies, though it also countsretailers and consumer goods and technology companies among its clientele.

The firm’s management consulting offerings include strategic and business planning,financial diagnostics, risk management, vendor selection and negotiation, andoperations redesign. On the M&A advisory services side, First Annapolis handlesbusiness valuation and transaction reviews, joint venture formation and due diligencesupport. Among the clients the firm has advised are Money Station in its January2001 acquisition by Pulse, Cash Station in its August 2000 merger with Concord, andJC Penney in the December 1999 sale of its $3.8 billion credit card business to GECard Services.

Give them credit

In another notable deal, First Annapolis served as an adviser to credit card companyPartners First in its January 2000 sale to Wachovia. First Annapolis had formedPartners First in September 1997 as a joint venture with Bank of Montreal,BankBoston and Harris Bank. (Partners First then became the credit card subsidiaryof Bankmont Financial, Bank of Montreal’s U.S. holding company.) By the time ofWachovia’s purchase, Partners First’s credit card business was valued at $1.99 billion.

GETTING HIRED

First Annapolis hires three to four recent college graduates each year as analysts.Most candidates hold a degree in finance, economics or another quantitativediscipline. Consultant hires (also about three to four each year) are MBAs withrelevant prior experience. Consultants travel an average of three days a week.

Vault Guide to the Top 50 Consulting FirmsFirst Annapolis Consulting, Inc.


L I B R A R Y

According to the firm, projects can last from two to 10 months, and employeesusually work on more than one project at a time.

Vault Guide to the Top 50 Consulting FirmsFirst Annapolis Consulting, Inc.


“We receive very littletraining. Most of it is on a

learn-as-you-go basis. If you want somethingaround here, you have

to ask for it.”

— Mars & Company consultant



L I B R A R Y

First Consulting Group

111 West Ocean BoulevardSuite 1000Long Beach, CA, 90802Phone: (800) 345-0957Fax: (562) 432-5774www.fcg.com

LOCATIONS Long Beach, CA (HQ)Offices in 22 cities worldwide

PRACTICE AREASDiscrete/Full Outsourcinge-ConsultingIT Executive StaffingIT Outsourcing AssessmentIT Strategy and Performance

Improvement Program Management Systems Development and

Implementation

THE STATS

Employer Type: Public CompanyStock Symbol: FCGIStock Exchange: NasdaqChairman and CEO:Luther J. Nussbaum2001 Employees: 1,8522000 Employees: 1,9322001 Revenues: $266.9 million2000 Revenues: $248.9 million

UPPERS

• Generous benefits• Good in-house training

DOWNERS

• Recent layoffs• Narrow practice focus

KEY COMPETITORS

Cerner IDX Systems McKessonRazorfish

EMPLOYMENT CONTACT

[email protected]



• “Big in health care”• “Third-tier”

THE SCOOP

Health-conscious

First Consulting Group is an IT outsourcing and solutions firm dedicated almostexclusively to the health care, pharmaceutical and life sciences industries. Based inLong Beach, Calif., FCG has amassed a long list of big-name clients over its 22-yearhistory, including 17 of the top 20 integrated delivery networks, 17 of the top 20HMOs, all of the Fortune Global 500 pharmaceutical and life sciences companies andthe two largest government health care integrated delivery systems. The companydivides its practice into seven units: health delivery, health plans, governmenthealth care, life sciences, advanced technology, HealthCare and FCG ManagementServices (outsourcing).

e-Care

While FCG is involved in a variety of pharmaceutical and life sciences industries, itsmain focus is on the management and delivery of health care. With the precipitousrise in health care costs over the past decade, hospitals, HMOs and integrateddelivery systems increasingly have turned to firms like FCG to improve theiroperational efficiency without sacrificing care. FCG’s response has been to recast itsadministrative functions along “e” models, reducing reliance on paper streams anddesigning comprehensive, Internet-based management platforms. One of FCG’sbiggest assets is its FirstDocs suite of document management software, which allowsproviders to move their thousands of reams of paperwork onto an electronic network.In February 2002 FCG debuted its FirstDocs M&S software, which extends theFirstDoc technology into the pharmaceutical marketing and sales realm.

With friends like these…

Over the past few years, FCG has greatly expanded both the depth and breadth of itsoperations, largely by entering into strategic alliances with other health care and ITconsultancies. In 2000 alone it inked major deals with HealthCentral.com, ConferSoftware, Onyx Software, SiteWorks Solutions, VHA and Veritech to provide a rangeof e-health solutions for HMOs, hospitals and integrated service providers. In 2001it signed three significant deals: It aligned with DigiTerra, a Colorado-based ITsolutions provider, to develop optimized supply chain processes; it created anInternet-based network for managing pharmaceutical trial documentation with theVirginia-based drug development firm PRA International; and it teamed with theNew Jersey pharmaceutical maker Aventis to develop a comprehensive electroniccontent management platform for its pharmaceutical industry clients. Most recently,

Vault Guide to the Top 50 Consulting FirmsFirst Consulting Group


L I B R A R Y

FCG signed a $96 million deal with Affiliated Computer Services to providespecialized health care IT outsourcing for the University Health Systems Corporation.

Spending spree

FCG also has grown by purchasing smaller companies that complement its coreoperations. In November 1998 it bought the Integrated Systems Consulting Group,a Pennsylvania firm strong in the biotech industry, for $124 million. The followingyear it bought two British outfits: Activa, a document management firm, and SDCConsulting. Hoping to expand its e-commerce practice, it purchased DoghouseProductions in May 2000.

Shoring up weaknesses

Despite a relatively strong performance in 2001, January 2002 saw FCG lay offabout 100 employees as it restructured its web production efforts. The company’srevenues were up 7.2 percent over 2000, but the numbers masked a significant dropin the firm’s Internet-related profits, which resulted in a $6 million loss for the fourthquarter of 2001. As a result, it folded its Doghouse unit into its Healthcare Group andstreamlined a number of other divisions.

GETTING HIRED

First Consulting Group recruits undergraduates primarily for the following areas:systems development services, advanced technology services, implementationservices, consulting and emerging practices. It recruits on a number of collegecampuses, primarily tech-oriented schools in the mid-Atlantic region. It also postsjobs online (at http://www.fcg.com/career/career_finder.asp), along with an onlineapplication form.

Undergraduates typically are hired as associate consultants or consultants, whilethose with master’s degrees are brought on as master consultants. While a strongtech background is important, First Consulting says that knowledge of the health careindustry isn’t necessary; the firm provides year-long courses entitled “Introduction toHealth Care” and “Pharmaceutical Industry Overview” to get new staff acquaintedwith the sector. New hires also go through an eight-week training course, whichfocuses on such skills as computer programming, decision making, clientinterviewing and business writing. They then go on to a one-year apprenticeship.Employee skills are further enhanced through a range of in-house training programs.

Vault Guide to the Top 50 Consulting FirmsFirst Consulting Group


“The firm is relaxed on theconsultant level, but has a

much more corporatefeeling in middle

management and up.”

— Haverstick Consulting insider



L I B R A R Y

Haverstick Consulting

11405 N. Pennsylvania StreetSuite 210Carmel, IN 46032Phone: (317) 218-1700Fax: (317) 218-1701www.haverstickconsulting.com

LOCATIONS Indianapolis, IN (HQ)Cincinnati, OHCleveland, OHMinneapolis, MNParsippany, NJ

PRACTICE AREASBusiness ConsultingBusiness Infrastructuree-Commerce e-LearningEnterprise Application IntegrationIT ConsultingStrategic Design Web Development

THE STATS

Employer Type: Private CompanyCEO: Stephen C. Hilbert2001 Employees: 2502001 Revenue: $21.0 million2000 Revenue: $7.0 million

UPPERS

• Small, dynamic firm• Little or no travel

DOWNERS

• Poor corporate communication• Relatively little diversity

KEY COMPETITORS

AccentureDiamondCluster InternationalLante

EMPLOYMENT CONTACT

[email protected]



• “Small IT shop”• “Unknown”

THE SCOOP

A regional powerhouse

Founded in 1994, the e-consultancy Haverstick has quickly made a name for itself asone of the Midwest’s fastest-growing companies. Partly because of the firm’srelative lack of regional competition, it has weathered the last few years of industryturbulence quite well, though Haverstick’s web site attributes its success to the firm’sreliance on old-school solutions over new-economy whimsy: “While many consultingcompanies chased the market to find revenue in the latest fads, Haverstick Consultingremained focused on delivering proven business solutions to its clients.” Indeed, thefirm, based in the Indianapolis suburb of Carmel, distinguishes itself by presenting aunique mix of tried-and-true approaches adapted to new-economy problems.

New leadership, new name

Founded as C/soft, the company became Haverstick Consulting in December 2000after Indianapolis business heavyweights Stephen Hilbert and Rollin Dick bought anundisclosed stake in the firm (Haverstick Road is the location of the company’s firstoffice). The pair had been had been chairman and CEO (Hilbert) and CFO (Dick) ofthe insurance giant Conseco, which Hilbert had founded in 1978, but they hadresigned in tandem after the company’s stock took a nosedive in 2000. Hilbert tookover the offices of Haverstick chairman and CEO, with Dick as vice chairman andCFO — though in practice the two share leadership responsibilities.

A short but sweet track record

In May 2001 Hilbert and Dick declared that Haverstick would grow into a $250million venture within 24 months, and so far their prediction hasn’t been too far off.During their first year they tripled the firm’s profits (from $7 million in 2000 to $21million in 2001), doubled the firm’s client list, and picked up large contracts fromseveral major tech companies. Haverstick used this success to open a branch in NewJersey, giving it an East Coast presence to complement its offices in Indianapolis,Cincinnati, Minneapolis and Cleveland.

Making friends

Haverstick has leveraged its small size by signing partnerships with such high-profiletechnology firms as Cisco, Microsoft and IBM. These deals give the firm access tobeta versions of unreleased software so that its associates are well-versed when theirclients finally receive the programs. Haverstick also has been expanding into thehealth information sector, establishing relationships with regional hospitals and other

Vault Guide to the Top 50 Consulting FirmsHaverstick Consulting


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health care providers to analyze their cost structures and help them meet thestandards set by the 1996 Health Insurance Portability and Accountability Act.

Buying the competition

Hilbert and Dick have made no secret of their ambition to dominate the Midwest’shigh-tech consulting world, and a major part of their strategy has been to expand thefirm’s end-to-end consulting capabilities by acquiring smaller firms. In October2001 Haverstick took over a large chunk of Innovis, LLC (also based in Carmel), aprovider of Web-based design services and project-based software developmentcapabilities. And in December 2001 the company took over the clients and most ofthe employees of once-rising-star Eviciti, another local e-consultancy that had fallenon hard times earlier in the year. So far, 2002 has seen two more deals: in AprilHaverstick merged with A.F. Kelly & Associates, a Cincinnati-based IT servicesprovider, and in June the firm announced that it had signed a letter of intent topurchase Technium, a Chicago application and infrastructure consultancy.

GETTING HIRED

Among the key qualities that Haverstick asserts it looks for in candidates are a strongcustomer focus and a team-centered approach to work. While it does occasionallyhire undergraduates, most openings target experienced consultants with a minimumof three years of management and technical consulting under their belts.

Applicants for entry-level consultant positions can expect three to four interviews,while those looking at manager positions should expect five or six, possiblyincluding a meeting with Hilbert himself. The first entry-level interview, usually byphone, is a screening conducted by a member of the company’s recruiting staff.Additional interviews, held at a Haverstick office, are conducted by employees fromdifferent practice areas and typically include a peer, practice manager andoccasionally the branch manager. According to one insider, “If the person is beingconsidered for a management role, he or she will then meet with our COO or anothermember of the executive team to determine vision and cultural fit.”

Including the screening, there are at least one technical and two behavioralinterviews. Haverstick says its questions are aimed at identifying a good fit for thecompany, though for non-technical rounds applicants should expect “just your run-of-the-mill stuff.” Depending on the position, applicants may be asked to write codein a number of languages (at least Java and SQL), as well as to plan and deliver averbal presentation to several members of the staff.



Don’t expect to see Haverstick representatives at the next job fair; it relies mostly onemployee referrals and resumes sent to [email protected]. It alsoposts openings on such job databases as Monster, CareerBuilder and Headhunter.

OUR SURVEY SAYS

Keepin’ it real

Life at Haverstick is marked by all the pluses and minuses of a small but growingfirm. Many insiders are quick to praise the company’s entrepreneurial spirit, as wellas its familial, team-oriented work ethic. At the same time, its recent acquisitions andthe economic downturn have not made the last couple of years easy from a firm-culture perspective.

Despite any growing pains, survey respondents roundly hail Haverstick’s attempts tomaintain the firm’s small-business attitude as it grows. Says one source,“Haverstick’s goal is to grow a large consulting organization while not sacrificing theclose-knit, friendly atmosphere which defined the company in its early years.”Another describes the atmosphere as “very collegial, warm and enthusiastic,” and yetanother praises the numerous company outings, such as picnics and golf matches.

A number of consultants describe Haverstick’s work environment as “corporate,” butare split on whether this is a good or bad thing. Many appreciate the big-businessoutlook that Hilbert and Dick have brought to the firm, giving it a more seasoned,professional attitude. At the same time, others decry it for making the firm tooconservative. One puts it this way: “The firm is relaxed on the consultant level, buthas a much more corporate feeling in middle management and up.”

Because of the tough economic times, Haverstick also has cut back on a number ofamenities; as one consultant tells Vault, “Although I don’t feel it is unique to us, weare in an industry and economy that has forced us to be very diligent in controllingour expenses. This is sometimes at odds with items that have traditionally beenviewed as employee perks, such as lavish office space, high-quality chairs, etc.”

Overall, though, it is difficult for many to pin down the Haverstick culture. Reportsone consultant, “As we are a company that has been making many changes, there aremany cultures present, but no clear culture.” One consultant says that the recentinflux of Innovis and Eviciti employees has shaken up a once-comfortablecommunity: “We have a little bit of empire building and some cliques that arepreventing a global teaming environment.”



L I B R A R Y

According to sources, the lack of culture at Haverstick is reflected in its offices,which tend to be “pretty” but “generic.” One consultant sums up the firm’s officesas “great décor, [a] professional office building, and cramped working quarters.” Or,as another puts it, “It’s OK [but] it doesn’t promote staying around the office ratherthan at the client site.” Yet another blames the less-than-posh offices on Haverstick’srecent growth: “Our headcount is growing quickly and our office expansion hasn’tquite kept up. Accommodations are more conservative than they are lavish.”

Haverstick is acting to remedy these situations, though. The offices are beingexpanded, and one insider tells Vault that the firm recently has hired a director ofmarketing and brand development, part of whose job is to promote a sense ofcohesion within the firm. The company also recently launched a new intranet, and isworking on a quarterly employee newsletter. Haverstick sponsors community sportsteams, has a suite at the Indy 500 and is considering a Habitat for Humanity project.The management teams at some offices sponsor events as well, including such fareas baseball games, movie screenings and go-cart racing nights.

Staying close to home

One advantage of working for a regional firm like Haverstick is the lack of long-distance travel. While most respondents report spending at least half of their time atclients’ offices, they also say their work is close to home and that it rarely, if ever,requires flying. “All clients are located within my city,” says one. “I have not oncebeen required to travel for this company.” Workweeks at Haverstick tend to beclose to the industry average, with most consultants saying that they sometimeswork weekends.

Money on the mind

One of the major concerns of Haverstick employees is the compensation package.While the benefits are described as “good for a startup,” including a healthy long-term disability insurance package, the salary component is considered “below whatother places are offering for the same skill set.” Employees can make up thedifference through bonuses, however, which are tied in part to individualperformance and in part to the overall health of the company. According to the firm,in the Indianapolis office (which accounts for about three-fourths of the total staff) in2001 the percentage of consultants receiving at least some quarterly bonus rangedfrom a low of 55.4 percent (in Q4) to a high of 83.1 percent (in Q1). In the firstquarter of 2002, 61.1 percent of consultants in that office received a bonus.Haverstick plans to move to a semi-annual bonus schedule during 2002, but willdisburse the same amount as it would under the quarterly schedule.



Haverstick also provides each consultant with at least one week of paid training,though a few consultants report that it is sometimes “difficult to get trainingapproved.” Training is more likely to get approved, says another, if it is directlyrelevant to a consultant’s current work or if it is in a very technical field. Mostsources identify an uninspired approach to training on the company’s part; though, asone source reports, “If I wanted to pursue it, the options are there.” The firm pointsout that it is currently formalizing Professional Objective Plans for each employee todefine, approve and plan training up to one year in advance.

The best and the brightest

While Haverstick does not cast a wide geographic net in its recruiting efforts, it doesfocus on reeling in the best and brightest the Midwest has to offer. One source saysthat the firm goes “through an average of 300 resumes before selecting a candidatefor hiring.” Technical skills, particularly programming, are essential, but the firmalso prizes conventional consulting characteristics; personality and fit are key factorsas well.

In terms of diversity, Haverstick is a predominantly white firm, and sources reportthat there are just two minority employees in its management ranks. The firm assertsthat it is addressing these issues, and is in the process of developing a diversityrecruitment program. Haverstick is also male-dominated, though female respondentssaid they feel largely “comfortable with the male-to-female ratio in our office.”Opines one female manager, “While technology consulting is lightly represented bywomen at my level, the company treats me well.” And a second woman adds: “Thereare a few more technical women at this firm than [my] previous firms.”



L I B R A R Y

Integral

111 Huntington Avenue10th FloorBoston, MA 02199Phone: (617) 425-8400Fax: (617) 425-8401www.integral-inc.com

LOCATIONSBoston, MA (HQ)Cambridge, MAMenlo Park, CACambridge, UK

PRACTICE AREASCorporate Venturing StrategyCustomer Equity StrategyGrowth Strategy and Disruptive

TechnologiesNew Product and Service

DevelopmentOperations Strategy

THE STATS

Employer type:Subsidiary of Analysis GroupChairman: Bruce Stangle2002 Employees: 50

UPPERS

• Approachable executives• Strong academic affiliations with

top universities

DOWNERS

• Limited formal training• Company is still building a name

for itself

KEY COMPETITORS

Booz Allen HamiltonBoston Consulting GroupMcKinsey & CompanyMonitor GroupPRTMPwC Consulting (Monday)

EMPLOYMENT CONTACT

For U.S. offices: [email protected](617) 349-0600

For U.K. office: [email protected]+44 (0)1223 358885



• “Small but smart”• “Not growing”

THE SCOOP

It’s academic

Integral is an international consulting firm specializing in growth strategies fordisruptive markets (i.e., new technologies that upset previous markets). As the sistercompany to Analysis Group/Economics, a provider of economic and financialanalysis, and a subsidiary of the Analysis Group, Integral combines proprietarymethodologies with market and industry knowledge to help clients alleviate the risksinvolved with changing markets. Integral was founded in 1988 by PhDs Kim Clark,Steven Wheelwright and Bruce Stangle, who have used their credentials to maintainclose relationships with a network of professors at preeminent academic institutions,giving Integral’s clients access to cutting-edge business ideas.

Disruptive practices

Disruptive technologies can be, well, disruptive. According to Integral, they are“simple, convenient-to-use technologies that initially are used only by theunsophisticated customers at the low end of the market,” but soon cause trouble forestablished companies. Indeed, new technologies, shifting market trends andemerging competitors can redefine the economics of an entire industry. They caninvalidate existing business models. But they can also open doors for smartcompanies. Integral collaborates with clients to survey and assess the viability ofnew market entrants and new technologies — including potentially “disruptive”technologies — to launch new products and services with optimal effectiveness.

Industrious consulting

Integral consults in a variety of industries, including high technology, consumergoods, telecommunications, pharmaceuticals, medical products, health care,automotive, energy, semiconductors and financial services. The firm’s work isdivided into five practice areas: growth strategy and disruptive technologies,corporate venturing strategy, new product and service development, operationsstrategy, and customer equity strategy.

School ties

Integral’s academically oriented approach to strategic consulting is somewhatunusual. Viewing the university world as an incubator for next-generation conceptsand best practices, the firm uses its strong ties to the Harvard and MIT communitiesas a key resource for providing clients with the latest business and profit-enhancingideas. The company refers to its network of academic relationships as its “Affiliate

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L I B R A R Y

Center,” and attached to each of its practice areas is a team of professors who provideexpert guidance to consultants and their clients. The company also coordinatesconferences and publishes the Management Consulting Newsletter, a quarterly witharticles by affiliates and other academics.

Many of Integral’s affiliates are renowned thought leaders in their fields. HenryChesborough, a professor at the Harvard School of Business, is a world-recognizedexpert on corporate venturing. Clayton M. Christensen, also of Harvard, is anauthority on the relationship between technological innovation and the market; hiswork also informs some of the core elements of Integral’s consulting practice. It wasChristensen, in fact, who coined the term “disruptive technologies” and helpedIntegral craft its disruptive-technologies strategy.

GETTING HIRED

Integral accepts candidates from all academic disciplines, including the liberal arts,but prefers to hire from leading business schools and a variety of industry sectors.Those applying to Integral should underscore any mathematical or economicaccomplishments, since the firm emphasizes quantitative ability in addition toleadership, analytical, communication, client relation, teamwork, strategy andbusiness development skills.

On-campus recruiting occurs in the fall. During this time, Integral hostspresentations, information sessions and open houses to acquaint candidates with thefirm’s people and practice areas. Prospective employees can expect at least tworounds of interviews for a total of six individual meetings, sources tell us. AndIntegral typically gives “case interviews in half or more of the interviews. Interviewsare conducted by the more senior levels — senior consultants, managers andprincipals.” “As for the questions,” one candidate explains, “one of the interviewerswalked through my resume and another converted my previous experiences into casequestions, which was quite challenging. However, most of the interviews werebusiness case questions.” Each interview is meant to test critical reasoning skills,quantitative understanding, and conceptual and strategic interpretation. A word ofadvice: The interviewers are looking less for the right answer than for creativity andingenuity in the candidate’s problem-solving method. Fortunately, insiders say, thereis a little good news: Many of the interviewers are said to approach their task in afriendly and even lighthearted manner — though the purpose is very serious.



OUR SURVEY SAYS

Foosball frenzy

If you want to work with smart people — and you really like a good game of foosball— Integral may be the place for you. Insiders describe the firm’s culture as “veryentrepreneurial,” “friendly” and “fun but professional.” One source explains, “Thefirm is relatively laid back, considering that the dress code is business casual, leaningtowards the casual side. We can wear jeans in the office. Plus, we have a foosballtable at the Cambridge [Mass.] office. A good game eases the stress a bit whenneeded.” Others say that the firm gives you “a lot of latitude and consultants areencouraged to take on more responsibilities than in larger consulting firms, whichtend to have predefined ‘roles’ for certain levels in the organization.”

The workload

Much like at other consulting firms, the workload at Integral tends to be “highlyvariable.” Insiders say that “Hours fluctuate wildly depending on caseload. Short,30-hour weeks are common between bursts of activity, with 60- to 70-hour weeksbeing the norm.” Most agree that the pressure is “tame” compared with other firms,but “There are definite anomalies.”

Accessible executives

Consultants at Integral overwhelmingly agree that it is all right to approachexecutives and discuss ideas openly. Insiders explain that the firm is “verydemocratic,” and “Even an entry-level person can have his ideas heard at the very topof the organization.” One source says that “The partners are extremely accessibleand are always willing to chat or go to lunch. In general, they are extremely open tomy ideas on the case team. They also share almost all information with us about thestate of the firm and upcoming cases.” Another insider offers, “I can always talk tothe managing principals and principals here about questions, issues or suggestions Ihave. All I have to do is ask when they have a free moment. Usually, they make thetime to give me my answers within the day.”

A diverse bunch

Insiders report that Integral is, well, integrated. “[It’s] a pretty diverse groupoverall,” says one consultant. “The firm is tolerant,” offers another. And “At theassociate and consultant levels, the male-to-female ratio is about equal. Integral isvery open to hiring minorities, foreign citizens and gays and lesbians. A visit to ouroffice will quickly show that!”



L I B R A R Y

Lante

600 W. Fulton Street4th FloorChicago, IL 60661Phone: (312) 696-5000Fax: (312) 976-9866www.lante.com

LOCATIONS Chicago, IL (HQ)Dallas, TXHouston, TXNew York, NYSeattle, WA

PRACTICE AREASDelivery ManagementStrategyTechnologyUser Experience

THE STATS

Employer Type: Public CompanyStock Symbol: LNTEStock Exchange: NasdaqPresident and CEO: Rudy PuryearChairman: John Kraft2001 Employees: 2162000 Employees: 4762001 Revenues: $41.9 million2000 Revenues: $76.1 million

UPPERS

• Continuing to expand business• Relationships with other high-tech

firms

DOWNERS

• Significant layoffs• Management shake-up

KEY COMPETITORS

AccentureComputer Sciences CorporationSapient

EMPLOYMENT CONTACT

[email protected]



• “Internet nerds”• “Game over”

THE SCOOP

Still standing

While scores of high-tech firms failed during the dot-com bust and the ensuingrecession, taking numerous consulting firms down with them, Lante has managed toremain standing, though its outlook remains precarious. Thanks to a large cashreserve, strong relationships with strategic clients and a thorough corporaterestructuring, the Chicago-based e-consultancy has survived the worst and, despitelayoffs and severe profit losses, even managed to expand, buying another ITconsulting firm, Luminant, in January 2002. In July 2002, SBI and Companyannounced it would acquired Lante. The deal is expected to close in the fall of 2002.

Humble beginnings, impressive results

In 1984 Mark Tebbe had $10,000, a credit card and a dream. Unable to focus on hisinterests — personal computers and nascent LAN technologies — in his job at ArthurAndersen, he and Andrew Langer started Langer, Tebbe & Associates as a PCconsulting business. In 1985 the name was changed to Lante, a contraction of thetwo founders’ last names (though Langer left later that same year). After severaltransformations over the years, by the late 1990s Lante had found its niche as an e-services firm, bringing in heavy hitter Rudy Puryear as CEO in 1999 (Puryear hadformerly served as Andersen Consulting’s global managing partner for e-commerce).

The road to riches

Lante’s February 2000 IPO, on the tail end of the dot-com boom, was an overnightsuccess. The company’s $20 offering price more than doubled on the first day andeventually hit a high of $87.50. But the stock price took a reality-induced nosedivesoon after. In response, Lante undertook the first of its several recent restructurings,moving away from dot-coms to corporate clients in October 2000 and inking anumber of big contracts with the likes of Dell and Aon Corporation. Its relationshipwith Dell goes even further than consulting, including joint alliances for Dellcustomers, a 10 percent stake in Lante for Dell and a seat for Michael Dell on Lante’sadvisory board. (Guess which brand of PC Lantesians use.)

Redefining B2B

Lante has also evolved from developing “e-marketplaces” — online stores forconducting business-to-business transactions — to helping Global 2000 firms useonline channels to work more effectively with their employees, customers and

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suppliers. This more focused approach to B2B involves developing clients’ back-endtechnology and designing web site navigation to integrate customers and businesspartners. Lante’s evolution away from e-marketplaces and toward collaboration-focused engagements is reflected in its work for Airborne Express and the First LookDealer Network. In 2002 Lante moved into the field of real-time interactivetechnologies (i.e., technologies that enable people to have instantaneous interactionswith one another over a secure Internet connection). The company announced theformation of alliances with firms in this area such as San Francisco’s Kenamea andGrand Central Communications in the spring of that year.

Tough times

Lante’s woes began to appear publicly in October 2000, when the company sharplydowngraded its Q4 earnings expectations. In December 2000 it closed its Singapore,Delhi and Charlotte offices and laid off 120 employees, or 19 percent of its staff, inan attempt to reduce costs and reach a break-even point in its balance sheet by mid-2001. Simultaneously, Lante launched a series of initiatives, including additionalbenefits, equity grants and an option exchange program, to keep its core talent fromjumping ship. But all of this wasn’t enough to counter the effects of the downturn inthe consulting market, and in June 2001, after a $10-million second-quarter loss, itcut another 70 employees and reduced executive salaries by 10 percent. By the endof the year the company had managed to cut its net losses significantly, though saleswere still down.

In January 2002 Tebbe stepped down as chairman and was replaced by Jack Kraft, aformer vice chairman of Leo Burnett. By mid-March 2002 the company was stillstruggling, and on March 15 announced 80 more layoffs, representing 25 percent ofits workforce. The company also significantly revised its first-quarter earningsexpectations downward, from $11.5 million to $7.5 million, with an expected $4.8million loss.

A luminous purchase

Despite Lante’s ongoing financial difficulties, in January 2002 it completed its $8.7million purchase of Luminant, a recently bankrupted Dallas-based e-consultancy.With the newly acquired assets, which include all of Luminant’s contracts and mostof its offices, Lante formed an energy practice headed by former Luminantexecutives. While it resulted in a one-time, $2.5 million charge, Lante expects thedeal to help put it back on the road to profitability.



GETTING HIRED

Lante says it strives to strike a balance between the relaxed working environment ofa high-tech company and the conservative, professional culture associated withtraditional consulting firms. Dress is casual; in fact, job candidates are encouragedto dress casually for interviews. When interviewing, Lante will check outcandidates’ capabilities and skills, at the same time evaluating potential andenthusiasm. The work environment is said to be flexible, without a strict hierarchy.

Quantitative research and an analysis of a client’s needs are important aspects oftechnology consulting. However, Lante considers creativity an equally importantcomponent in developing successful web strategies because it designs the userenvironment for its clients. In the past, Lante has recruited undergrads and MBAs ona number of college campuses, including Berkeley, Carnegie Mellon and Duke, but thefirm has not had formal campus hiring in the past two years. Instead, it is now focusedmore on making experienced hires as needed in an effort to re-grow very conservatively.

Lante provides every employee with the opportunity to participate in a variety ofcareer enhancement activities, including conferences and software certificationprograms, and picks up the tab for industry association fees and subscriptions toindustry publications. The company assigns new hires to development managers,who help them chart their career goals.



L I B R A R Y

Sibson Consulting (Segal)

One Park AvenueNew York, NY 10016-5895Phone: (212) 251-5901www.sibson.com

LOCATIONS New York, NY (HQ)17 offices in North America

PRACTICE AREASEmployee EffectivenessManagement AlignmentSales & Marketing

THE STATS

Employer Type:Subsidiary of The Segal CompanySegal President & CEO:Howard Fluhr 2001 Employees: 950

UPPERS

• Good combination of services with Segal

DOWNERS

• Uncertainty from change inownership

KEY COMPETITORS

• Hewitt• Mercer Human Resource Consulting• Towers Perrin

EMPLOYMENT CONTACT

[email protected]



• “Solid comp work”• “Touchy-feely”• “Who?”

THE SCOOP

Changing hands

Sibson Consulting is the management consulting arm of The Segal Company, a NewYork City-based human resources consulting and actuarial firm. Segal acquiredSibson Consulting Group in January 2002 from Nextera Enterprises for $16 millionin cash, plus an additional sum based on future operating results. When Segal tookover, Sibson Consulting became part of its new parent’s Human ResourcesInnovation Practice, which provides clients with compensation planning, work/lifeprograms and other HR plans. But while Sibson’s ownership has changed, its leaderhas not — Nextera chief operating officer Vincent C. Perro moved to The SegalCompany in order to continue heading up Sibson’s business.

Sibson’s history in human resource consulting stretches back more than four decades.Prior to being acquired by Nextera in 1998 it was known as Sibson and Company andwas based in Princeton, N.J. The firm handles HR and sales and marketingconsulting in a number of industries, though the financial services, professionalservices and health care sectors remain its specialties. More than half of thecompanies in the Fortune 500 are current or former Sibson clients. Sibson maintainsalliances with software solutions providers Incentive Systems, MarketSoft, OckhamTechnologies and Synygy Inc. to provide clients with on-time compensation andbenefits payments and to implement and manage incentive compensation plans.

Under old management

Segal got into the employee benefit consulting game early — it was founded in 1939— and has remained independent and privately held. The firm serves clients in thepublic, private and nonprofit sectors as well as multi-employer groups administeringemployee benefit plans under the Taft-Hartley Act. Its clients range from smallbusinesses to large government agencies and multinational corporations. Segal-sponsored benefit plans cover more than 8 million employees and their dependentsin North America and Europe.

GETTING HIRED

According to firm sources, Sibson plans to keep its recruiting efforts separate fromthose of Segal for about a year following the merger. Sibson hires new employees atfour levels: associate consultant, consultant, senior consultant and principal.Associate consultants conduct research, gather data, interview clients, facilitate focus

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groups and interpret analysis and then convey these findings through reports andpresentations. Consultants (MBAs and experienced hires) direct projectimplementation and manage the daily interaction with clients.

Vault Guide to the Top 50 Consulting FirmsSibson Consulting (Segal)


“It doesn’t take much toget denied an offer.

Monitorites who attendedyour college or universityare often consulted as to

your character even beforeyou get an interview.”

— Monitor Group source



L I B R A R Y

Technology Solutions Company

205 N. Michigan AvenueSuite 1500Chicago, IL 60601Phone: (312) 228-4500Fax: (312) 228-4501www.techsol.com

LOCATIONS Chicago (HQ)Atlanta, GADallas, TXIrvine, CANew York, NY

PRACTICE AREASDigital Supply Chain ManagementElectronic LearningEnterprise Resource PlanningExtended SupportKnowledge ManagementSAP Implementation

THE STATS

Employer Type: Public CompanyStock Symbol: TSCCStock Exchange: NasdaqPresident & CEO: Jack Hayden2001 Employees: 5382001 Revenues: $123.4 million2000 Revenues: $131.6 million

UPPERS

• Small, focused firm• Stable client list

DOWNERS

• Lots of travel

KEY COMPETITORS

AccentureComputer Sciences CorporationIBM Global Services

EMPLOYMENT CONTACT

[email protected]



• “Appears to be growing”• “Inconsistent quality”• “Is that made up?”

THE SCOOP

Where IT’s at

Technology Solutions Company got its start in 1988 as a dedicated client/serversystems development firm. Over the years, though, it has ridden the client/serverwave into other IT consulting sectors, most notably providing packaged softwareintegration and enterprise customer management solutions. TSC also offers ASPhosting solutions and does a large amount of e-business consulting work. Most ofthe Chicago-based company’s clients are mid- and large-cap corporations in themanufacturing, technology, health care, telecom and financial services industries.TSC divides its operations into three application-specific practices: PeopleSoft, Brioand SAP. The firm went public in 1991.

Peerless

Until 2001, TSC was also a software developer, through its Peer3 division; in 1999it purchased CourseNet Systems, an e-learning software provider, to bolster Peer3’scapabilities. But the slow economy and the accompanying need to shore up its corepractices led TSC to shut down Peer3 in June 2001 and sell off its assets. However,thanks to the closure, as well as other timely cost-savings measures, TSC bucked theloss trend among IT consultancies by reporting a small profit of $455,000 at the endof 2001.

A number of new engagements have also helped TSC’s bottom line. The PeopleSoftpractice has been active, handling an HR software implementation for Californiawireless technology company Intersil in September 2001 and an HR and financialmanagement applications implementation two months later for the Oklahoma-basedWestern Farmers Electric Cooperative. TSC also signed a deal to host an onlinepayment system for ChevronTexaco-owned petroleum marketer Caltex in June 2001,and in August was selected to provide application hosting services and an Aribaprocurement software installation for the American Cancer Society. Finally, inFebruary 2002, TSC inked an agreement to provide SAP-related consulting servicesfor General Motors Locomotive Group.

GETTING HIRED

Interviews at TSC involve meetings with several mid- to senior-level staffers, usuallya practice area leader, a general team member and a senior technical person.Technical skills are a must (knowledge of PeopleSoft and/or Brio is a big plus),

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L I B R A R Y

though interviewees should expect more behavior-oriented than detail-specificquestions. TSC maintains a database of available jobs on its web site(www.techsol.com/Careers/Careers22.cfm).

Vault Guide to the Top 50 Consulting FirmsTechnology Solutions Company


TOP50CONSFIRMS

APPENDIX


L I B R A R Y


L I B R A R Y

The consulting industry uses many buzzwords. Consultants easily lapse into theirlingo while conversing with the layman, imposing panic on those who were unawarethey even possess a “skill set” (those areas where you excel). Here is a shortrundown of some of those words that consultants like to throw around:

APD: Advanced Professional Degree (e.g., JD, PhD, or MD).

Application Service Provider (ASP): A company that offers its clients online accessto applications that would otherwise be located in their own computers.

B2B: Business-to-Business.

B2C: Business-to-Consumer.

Balanced Scorecard: A conceptual framework for translating an organization’svision into a set of performance indicators distributed among four perspectives:financial, customer, internal business processes, and learning and growth.

Bananagram: A graph showing profitability vs. relative market share. The graphshows that the higher the market share, the higher the profitability. (The typicalmeasure of profitability for this graph is Return On Capital Employed, or “ROCE”[pronounced “roachy”].)

BCG matrix: A portfolio assessment tool developed by The Boston ConsultingGroup. Also called a growth/share matrix.

Benchmarking: Measuring a value, practice or other quantity (such as costs) againstthose of other companies in the industry.

Blank slide: Initial sketch on paper for a slide to be used in a case presentation(called blank because it does not include data until analysts input it).

Brainteaser: A consulting interview question in which the job seeker is asked tosolve a logic problem.

Boiling the ocean: When a project team finds itself faced with an impossibly largeamount of data.

Business Process Re-engineering (BPR): The process of reviewing a client’sbusiness processes, eliminating unneeded or “non-value-added” tasks, and thenimplementing the leaner, more efficient process.

Industry Buzzwords

Case team: Team working on a consulting project for a client; usually composed ofone partner (or director), one consultant, and two or more analysts.

Change management: A service where the firm helps a company cope with a periodof significant change (such as a merger, downsizing or restructuring).

Consultancy: A typically European term for “consulting firm,” though the word haspicked up currency in the United States.

Core competencies: The areas in which a company excels. Consultants believe acompany should enter only those businesses that are part of its core competencies.

Critical path: A term from operations management theory. Every business processconsists of a series of tasks. Some of these tasks are related to maintenance of theprocess or administrative and bookkeeping issues. Taken away, they do not directlyimpact the end result of the business process. If you eliminate these tasks, thereremains the core set of tasks that must occur in order to produce the desired result.This is the critical path. In everyday consulting language, the term refers to onlythose work tasks that are most important at the time.

Customer Relationship Management (CRM): Term that refers to the data-gathering methods used to collect information about a client’s customers. CRMusually focuses on sales force automation, customer service/call center, field serviceand marketing automation.

DCF: Discounted Cash Flow. The present value of a future cash flow.

Deck: A report detailing client issues and recommendations from the project team.Also known as a “deliverable.”

Drilldown: Asking questions to gather more detail about a situation, usually from ahigh-level (big-picture) view.

80/20 rule: Getting 80 percent of the answer first in 20 percent of your time. Theother 80 percent of your time might not be worth it. (A favorite of Bain chairpersonOrit Gadiesh.)

Engagement: A consulting assignment received by a consulting firm; also called a“case” or “project.”

Enterprise Resource Planning (ERP): Processes or software that help streamlinedepartments or divisions of a company.

Experience curve: The principle that a company’s cost declines as its productionincreases. One assumption used by consultants is that a company’s costs decline byroughly 25 percent for every doubling in production (e.g., a company’s 200th unit ofa product costs 75 percent of the 100th unit’s cost).

Vault Guide to the Top 50 Consulting FirmsAppendix: Industry Buzzwords


Granularity: Refers to the basic elements that make up a business problem. Imaginea handful of sand. At a high level, it is simply a handful of sand. At a granular level,it is bits of rock and shell matter reduced to fine granules over time by the ocean.

Guesstimate: A type of consulting interview question. Guesstimates require jobseekers to make an educated estimate of something (often the size of the market fora particular product or service) using basic calculations.

High-level view: Also referred to as a “50,000-foot view.” It describes a situation ingeneral terms or as an overview of a situation. Also known as “helicoptering.”

Hoteling/Hot-desking: A system used to assign space to consultants working on-site. Consultants move around so much that in some firms they are not assignedpermanent offices — just a voice mail extension. Whenever they know they need towork on-site, they call up the office nearest them to request a desk.

Hurdle rate: A company’s cost of capital. In general, if the return on an investmentexceeds the hurdle rate, the company should make the investment.

Implementation: The process by which a consulting firm ensures that the advice itgives to a client company is enacted.

Incubator: A place or situation that encourages the formation and development ofnew companies by providing certain services (e.g., office space, Internet connections,support staff).

Learning curve: The rate at which a consultant acquires background information orindustry knowledge needed for a case. A steep curve is a good thing.

Letter of Intent (LOI)/Letter of Proposal (LOP): A sales pitch to a potential clientthat lays out how and on what a consulting team will focus its efforts and what resultsthe client should expect.

NPV: Net Present Value. The sum of a series of discounted cash flows. Used toassess the profitability for a client of making an investment or undertaking a project.

O’Hare test: A test used by interviewers to assess personality fit. “If I were stuckovernight with this person at O’Hare Airport, would I have fun?”

On the beach: The time between assignments, when consultants’ work hours usuallydecline significantly. This expression originated at McKinsey.

Out-of-the-box thinking: Creativity.

Outsourcing: Hiring an outside vendor to perform a task normally performed withina company, often at a lower cost and with better results. Examples of processes



L I B R A R Y



commonly outsourced include payroll, data processing, recruitment, accounting anddocument processing.

Pigeonholing: Usually refers to a consultant’s becoming overspecialized.

Porter, Michael: A founding principal of Monitor Group and the father of theconsulting framework known as “Porter’s Five Forces.”

Re-engineering: A largely discredited fad of the early 1990s, which advocates acomplete overhaul (and usually downsizing) of a company’s strategies, operationsand practices.

Rightsizing: Also known as “downsizing” — just a kinder, gentler term forrestructuring the elements of a company. This is most often used in reference toheadcount reductions but can apply to plants, processes, technology, financialelements and office locations.

Scope creep: When clients find themselves overly involved in tangential aspects ofa project.

Shareholder value: The total net wealth of a company’s stockholders. The primarygoal of consultants in undertaking most engagements is to maximize shareholder value.

Silo: The tendency for a firm to emphasize vertical relationships within theorganization at the expense of horizontal (interdepartmental, etc.) ones.

Six-Sigma: A process used by consultants to measure a company’s performance.The term comes from the notion that a company’s performance metric should neverbe more than six standard deviations (sigmas) from the ideal.

Stakeholder: A person who has a stake in the outcome of a particular situation. Mostcommonly, the stakeholders in a case are the shareholders, creditors, or employees.

Supply chain: The means and process of physically distributing goods to theconsumer.

Total Quality Management (TQM): Management with the purpose of producing aproduct or service of the highest quality, with zero tolerance for defects.

Up or out: Promotion policy that requires consultants to leave a firm if notpromoted within a certain period of time (usually two to three years). Also known as“sink or swim.”

Value-based management: Consulting strategy whose ultimate goal is to increaseshareholder value for the client.


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Value migration: The flow of economic and shareholder value away from obsoletebusiness models to new, more effective designs.

Value-added: Used to define a service or product in a marketplace that adds value toa preexisting product or way of doing things.

Venture capital: Any kind of equity-related financing.

Work plan: A schedule for completing a consulting engagement.

Writing a deck: Preparing slides for presentations to clients.

White paper: A report whose goal is to educate consumers on a major issue.

White space opportunity: An opportunity for a company to make money in an areain which it currently generates zero revenue (for example, launching a new productline, licensing an existing brand or technology or entering a new geographic market).


L I B R A R Y

AlphabeticalA.T. Kearney . . . . . . . . . . . . . . . . . .136Accenture . . . . . . . . . . . . . . . . . . . . .120American Management Systems . . . .254Andersen’s Business Consulting

Practice . . . . . . . . . . . . . . . . . . . . . .310Aon Consulting Worldwide . . . . . . . .358Aquent . . . . . . . . . . . . . . . . . . . . . . .362Bain & Company . . . . . . . . . . . . . . . .72Booz Allen Hamilton . . . . . . . . . . . . .82Boston Consulting Group, The . . . . . .62Cap Gemini Ernst & Young . . . . . . . .160Charles River Associates . . . . . . . . . .288Commerce One Global Services . . . .354Computer Sciences Corporation . . . .228Computer Task Group . . . . . . . . . . . .376Corporate Executive Board, The . . . .346Dean & Company . . . . . . . . . . . . . . .304Deloitte Consulting . . . . . . . . . . . . . .112DiamondCluster International . . . . . .220Electronic Data Systems . . . . . . . . . .192First Annapolis Consulting, Inc. . . . .380First Consulting Group . . . . . . . . . . .384First Manhattan Consulting Group . .336Gartner . . . . . . . . . . . . . . . . . . . . . . .130Grant Thornton LLP . . . . . . . . . . . . .284Greenwich Associates . . . . . . . . . . . .370Haverstick Consulting . . . . . . . . . . . .388Hay Group . . . . . . . . . . . . . . . . . . . .280Hewitt Associates . . . . . . . . . . . . . . .176IBM Global Services . . . . . . . . . . . . .106Integral . . . . . . . . . . . . . . . . . . . . . . .394Keane . . . . . . . . . . . . . . . . . . . . . . . .332KPMG Consulting . . . . . . . . . . . . . .152Kurt Salmon Associates . . . . . . . . . .262L.E.K. Consulting . . . . . . . . . . . . . . .212Lante . . . . . . . . . . . . . . . . . . . . . . . .398

Logica . . . . . . . . . . . . . . . . . . . . . . . .340Marakon Associates . . . . . . . . . . . . .168Mars & Company . . . . . . . . . . . . . . .274McKinsey & Company . . . . . . . . . . . .52Mercer Human Resource Consulting .182Mercer Management Consulting . . . .100Monitor Group . . . . . . . . . . . . . . . . . .92Oliver, Wyman & Company . . . . . . .234PA Consulting Group . . . . . . . . . . . .326Parthenon Group, The . . . . . . . . . . .200Perot Systems . . . . . . . . . . . . . . . . . .300PRTM . . . . . . . . . . . . . . . . . . . . . . . .320PwC Consulting . . . . . . . . . . . . . . . .142Roland Berger Strategy Consultants .204Sapient Corporation . . . . . . . . . . . . .246Sibson Consulting (Segal) . . . . . . . . .402Stern Stewart & Company . . . . . . . . .270Swander Pace & Company . . . . . . . .350Technology Solutions Company . . . .406Towers Perrin . . . . . . . . . . . . . . . . . .186Value Partners . . . . . . . . . . . . . . . . . .366Watson Wyatt Worldwide . . . . . . . . .242ZS Associates . . . . . . . . . . . . . . . . . .294

Strategy FirmsA.T. Kearney . . . . . . . . . . . . . . . . . .136Bain & Company . . . . . . . . . . . . . . . .72Booz Allen Hamilton . . . . . . . . . . . . .82Boston Consulting Group, The . . . . . .62Dean & Company . . . . . . . . . . . . . . .304Kurt Salmon Associates . . . . . . . . . .262L.E.K. Consulting . . . . . . . . . . . . . . .212Marakon Associates . . . . . . . . . . . . .168Mars & Company . . . . . . . . . . . . . . .274McKinsey & Company . . . . . . . . . . . .52Mercer Management Consulting . . . .100Monitor Group . . . . . . . . . . . . . . . . . .92

Index of Consulting Firms


Vault Guide to the Top 50 Consulting FirmsAppendix: Index of Consulting Firms

Parthenon Group, The . . . . . . . . . . .200Roland Berger Strategy Consultants .204Swander Pace & Company . . . . . . . .350Value Partners . . . . . . . . . . . . . . . . . .366ZS Associates . . . . . . . . . . . . . . . . . .294

HR FirmsAon Consulting Worldwide . . . . . . . .358Hay Group . . . . . . . . . . . . . . . . . . . .280Hewitt Associates . . . . . . . . . . . . . . .176Mercer Human Resource Consulting .182Sibson Consulting (Segal) . . . . . . . . .402Towers Perrin . . . . . . . . . . . . . . . . . .186Watson Wyatt Worldwide . . . . . . . . .242

IT FirmsAccenture . . . . . . . . . . . . . . . . . . . . .120American Management Systems . . . .254Andersen’s Business Consulting

Practice . . . . . . . . . . . . . . . . . . . . . .310Aquent . . . . . . . . . . . . . . . . . . . . . . .362Cap Gemini Ernst & Young . . . . . . . .160Commerce One Global Services . . . .354Computer Sciences Corporation . . . .228Computer Task Group . . . . . . . . . . . .376Deloitte Consulting . . . . . . . . . . . . . .112Electronic Data Systems . . . . . . . . . .192First Consulting Group . . . . . . . . . . .384Haverstick Consulting . . . . . . . . . . . .388IBM Global Services . . . . . . . . . . . . .106Keane . . . . . . . . . . . . . . . . . . . . . . . .332KPMG Consulting . . . . . . . . . . . . . .152Logica . . . . . . . . . . . . . . . . . . . . . . . .340PA Consulting Group . . . . . . . . . . . .326Perot Systems . . . . . . . . . . . . . . . . . .300PwC Consulting . . . . . . . . . . . . . . . .142Sapient Corporation . . . . . . . . . . . . .246Technology Solutions Company . . . .406

Public CompaniesAccenture . . . . . . . . . . . . . . . . . . . . .120American Management Systems . . . .254Cap Gemini Ernst & Young . . . . . . . .160Charles River Associates . . . . . . . . . .288Computer Sciences Corporation . . . .228Computer Task Group . . . . . . . . . . . .376Corporate Executive Board, The . . . .346DiamondCluster International . . . . . .220Electronic Data Systems . . . . . . . . . .192First Consulting Group . . . . . . . . . . .384Gartner . . . . . . . . . . . . . . . . . . . . . . .130Hewitt Associates . . . . . . . . . . . . . . .176IBM Global Services . . . . . . . . . . . . .106Keane . . . . . . . . . . . . . . . . . . . . . . . .332KPMG Consulting . . . . . . . . . . . . . .152Lante . . . . . . . . . . . . . . . . . . . . . . . .398Logica . . . . . . . . . . . . . . . . . . . . . . . .340Perot Systems . . . . . . . . . . . . . . . . . .300Sapient Corporation . . . . . . . . . . . . .246Technology Solutions Company . . . .406Watson Wyatt Worldwide . . . . . . . . .242

HQ Outside the U.S.Cap Gemini Ernst & Young . . . . . . . .160L.E.K. Consulting . . . . . . . . . . . . . . .212Logica . . . . . . . . . . . . . . . . . . . . . . . .340PA Consulting Group . . . . . . . . . . . .326Roland Berger Strategy Consultants .204Value Partners . . . . . . . . . . . . . . . . . .366Watson Wyatt Worldwide . . . . . . . . .242

Over 10,000 EmployeesAccenture . . . . . . . . . . . . . . . . . . . . .120Andersen’s Business Consulting

Practice . . . . . . . . . . . . . . . . . . . . . .310Aquent . . . . . . . . . . . . . . . . . . . . . . .362Booz Allen Hamilton . . . . . . . . . . . . .82Cap Gemini Ernst & Young . . . . . . . .160Computer Sciences Corporation . . . .228Deloitte Consulting . . . . . . . . . . . . . .112


L I B R A R Y

Vault Guide to the Top 50 Consulting FirmsAppendix: Index of Consulting Firms

Electronic Data Systems . . . . . . . . . .192Hewitt Associates . . . . . . . . . . . . . . .176IBM Global Services . . . . . . . . . . . . .106Logica . . . . . . . . . . . . . . . . . . . . . . . .340McKinsey & Company . . . . . . . . . . . .52Mercer Human Resource Consulting .182PwC Consulting . . . . . . . . . . . . . . . .142

Under 1,000 EmployeesCharles River Associates . . . . . . . . . .288Corporate Executive Board, The . . . .346Dean & Company . . . . . . . . . . . . . . .304First Annapolis Consulting, Inc. . . . .380First Manhattan Consulting Group . .336Greenwich Associates . . . . . . . . . . . .370Haverstick Consulting . . . . . . . . . . . .388Integral . . . . . . . . . . . . . . . . . . . . . . .394Kurt Salmon Associates . . . . . . . . . .262L.E.K. Consulting . . . . . . . . . . . . . . .212Lante . . . . . . . . . . . . . . . . . . . . . . . .398Marakon Associates . . . . . . . . . . . . .168Mars & Company . . . . . . . . . . . . . . .274Oliver, Wyman & Company . . . . . . .234Parthenon Group, The . . . . . . . . . . .200PRTM . . . . . . . . . . . . . . . . . . . . . . . .320Sibson Consulting (Segal) . . . . . . . . .402Stern Stewart & Company . . . . . . . . .270Swander Pace & Company . . . . . . . .350Technology Solutions Company . . . .406Value Partners . . . . . . . . . . . . . . . . . .366ZS Associates . . . . . . . . . . . . . . . . . .294

5 or Fewer OfficesCorporate Executive Board, The . . . .346Dean & Company . . . . . . . . . . . . . . .304First Annapolis Consulting, Inc. . . . .380First Manhattan Consulting Group . .336Greenwich Associates . . . . . . . . . . . .370Haverstick Consulting . . . . . . . . . . . .388Integral . . . . . . . . . . . . . . . . . . . . . . .394Lante . . . . . . . . . . . . . . . . . . . . . . . .398

Marakon Associates . . . . . . . . . . . . .168Mars & Company . . . . . . . . . . . . . . .274Parthenon Group, The . . . . . . . . . . .200Swander Pace & Company . . . . . . . .350Technology Solutions Company . . . .406Value Partners . . . . . . . . . . . . . . . . . .366

Over 50 OfficesA.T. Kearney . . . . . . . . . . . . . . . . . .136Accenture . . . . . . . . . . . . . . . . . . . . .120American Management Systems . . . .254Andersen’s Business Consulting

Practice . . . . . . . . . . . . . . . . . . . . . .310Aon Consulting Worldwide . . . . . . . .358Aquent . . . . . . . . . . . . . . . . . . . . . . .362Booz Allen Hamilton . . . . . . . . . . . . .82Boston Consulting Group, The . . . . . .62Cap Gemini Ernst & Young . . . . . . . .160Computer Sciences Corporation . . . .228Deloitte Consulting . . . . . . . . . . . . . .112Electronic Data Systems . . . . . . . . . .192Gartner . . . . . . . . . . . . . . . . . . . . . . .130Hay Group . . . . . . . . . . . . . . . . . . . .280Hewitt Associates . . . . . . . . . . . . . . .176IBM Global Services . . . . . . . . . . . . .106Keane . . . . . . . . . . . . . . . . . . . . . . . .332KPMG Consulting . . . . . . . . . . . . . .152McKinsey & Company . . . . . . . . . . . .52Mercer Human Resource Consulting .182PwC Consulting . . . . . . . . . . . . . . . .142Towers Perrin . . . . . . . . . . . . . . . . . .186Watson Wyatt Worldwide . . . . . . . . .242


L I B R A R Y

Douglas Cantor is the editor and co-author of several Vault books, includingeditions of the Vault Guide to the Top 100 Law Firms. Douglas graduated fromVanderbilt University in 1996 with a bachelor’s degree in communication studies.

Clay Risen is the consulting writer at Vault. He holds a bachelors degree fromthe Georgetown University School of Foreign Service and a masters in socialscience degree from the University of Chicago.

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