1、“Strategic management consulting the A.T.Kearney perspective”,Warsaw,May 28,2001,Wysza Szkoa Przedsibiorczoci i Zarzdzania im.Leona Komiskiegow Warszawie,Presentation,an EDS company,Agenda,Overview of management consulting A.T.Kearney as a strategic management consulting firmConsultants role in A.T.
2、KearneyThe future of management consulting,Overview of management consulting,Today,one is confronted with a variety of consultants.,Tax“consultants”Hair“consultants”Image“consultants”Color“consultants”Catering“consultants”,What then,is“management consulting?,Overview of management consulting,One def
3、inition.,Management consulting=assisting management in facilitating change to gain and sustain competitive advantage,Overview of management consulting,Companies engage management consultants for several reasons some good,some not so good,Some reasons why companies hire consultantsThe company does no
4、t have the necessary skills internally-Good reasonThe company has never confronted this situation before-Good reasonManagement needs fresh ideas and a new perspective-Good reasonManagement wants the consultant to confirm its ideas-Not-so-good reasonEveryone in the company is too busy-Not-so-good rea
5、sonManagement needs a“tie breaker”-Not-so-good reason,Overview of management consulting,Why does management consulting seem to be growing in importance?,The nature of business is changing so rapidly that companiesCannot provide for every eventuality in the organizational structureFind it difficult t
6、o maintain permanent staff functionsCompanies need“tailored”solutions to remain competitive in an increasingly global marketplaceThe high cost of what management consulting provides can only be justified by companies on an outsourced,as needed basis,Overview of management consulting,Why does there c
7、ontinue to be a demand for management consulting?,Most companies do not know how to Analyze themselves”in an objective way when business situations change significantlyOperate in a temporary,project modeUnfortunately,most business schools do not Prepare managers for“exceptions”in business situations
8、Teach real project management,Overview of management consulting,Information technology,Operations,Strategy,System strategy creation Information systems market analysisSelecting appropriate IT solutions Inplementation of selected IT solutions,Process optimalizationChange management Business process r
9、eengineeringStrategic sourcingSupply chain managementService level improvementBenchmarkingOrganization restructuring,Corporate strategyStrategic business unitse-business strategyProduction strategyDistribution strategyMarket entry strategyRestructuring,The major global management consulting firms co
10、ncentrate in three areas of consulting;A.T.Kearney,together with EDS,cover the whole spectrum,McKinsey,Monitor,BCG,Bain,Booz Allen,Accenture,CSC Index,IBM Consulting,“Big Five”firms,Overview of management consulting,Consulting Industry Market Size and Growth Rates,Market Size($B),Per Annum Growth Ra
11、te(%),Source:The Global Consulting Marketplace:Key Data,Forecasts&Trends 2000 Edition,Kennedy Information Research Group.Chart pertains to the market for consulting firms independent of hardware/software organizations,IT projects to represent over 50 percent of the market,The world consulting market
12、 is estimated at$117 billion and is characterized by a double-digit annual growth.,Overview of management consulting,The consulting services in Poland emerged after the transformation in 1989 with privatization;other segments of the market developed later,Development of the consulting market in Pola
13、nd,Privatization consulting,Audit and legal services,IT consulting,High value added consulting,Start of the economic transformation,Overview of management consulting,The development stages in Poland were significantly different than in Western Europe,Source:A.T.Kearney,1998-2000,1994-1997,1990-1993,
14、Externaltrends,Start of economic transformationPrivatization of state own enterprises,Fast growth of the economyDevelopment of the free market institutions(e.g.stock exchange)Acquisitions by foreign investors,Consolidation of the economyIncreased competitive preasureAcquisitions and post merger inte
15、grationsBig ticket privatizations,Consultantsvalueproposition,PrivatizationFinancial valuation,Privatization/Due DilligenceIT consultingRestructuring,Efficiency improvementReorganization/ReengineeringStrategyIT consulting,Key players,Small Polish companiesSmaller foreign companies specialized in fin
16、ancial/privatization consulting,Big fiveSpecialized Polish companies,Big fiveA.T.KearneyMcKinseyBCG,.,Key factors for success,RelationshipsPrices,Local knowledgeQuality standards,Value addedGlobal networkRelationship,Major client group,State administrationLargest Polish state-owned enterprises,Forei
17、gn investors,Foreign investorsLargest Polish,privately owned corporations,Overview of management consulting,The consulting market in Poland is still significantly different than in other countries,Differences,Drivers,Low sophistication of the market.Many potential clients do not recognize the need f
18、or consulting servicesBrand names of global players not knownConsulting fees relatively higher in relation to personal costs Two groups of clients:International companies entering PolandLargest Polish companies of which many are state ownedLocal shortage of consulting and industry knowledge and expe
19、rience,Market dominated by financial and tax advisoryLocal consultancies enjoy important market position in PolandDifferent product offerings and selling strategies for domestic and for international clientsNeed to transfer knowledge and experience from developed markets,Overview of management consu
20、lting,Consulting market in Poland is still dominated by financial and tax advisory services,Percentage of companies using different consulting services,Source:BOSS-Gospodarka,Financial and tax advisory,Quality management,Business strategy,Human resources,Public relations,Other,Do not use consulting
21、services,Overview of management consulting,In parallel to world-wide brands,local consultancies enjoy important market position in Poland,Polish subsidiaries of global consultancies,Dominant strategies:Focus on long-term relationship with clientFocus on several key products/industriesKey success fac
22、torsGlobal networkCombination of industry and local knowledge Tangible resultsTargeted client segmentInternational companiesLargest Polish corporations from strategic industriesProductsValue added projects,Dominant strategiesNiche playersSpecialization in one product/industryKey success factorsPrice
23、Personal relationshipsTargeted client segmentSmall and medium enterprisesState and local governmentsProductsOff-the-shelf reportsCompany valuationsIssuing prospectusesFeasibility studies,Local companies,Overview of management consulting,Clients can be split into two groups having different expectati
24、ons regarding consulting services,International clients,Local clients,ProductsMarket entry strategiesDistribution strategiesPost merger integration of acquired local companiesEfficiency improvement in acquired companiesProjects sold mostly outside Poland(at the HQ level)Co-operation characteristicsU
25、sed to work with consultantsUsed to consulting feesExpect involvement of own staffValue added driven,ProductsStrategy developmentMarketing strategiesRestructuringCost reductionIT systemsProjects sold in PolandCo-operation characteristicsUsed to work with consultantsUsed to consulting feesExpect cons
26、ultants to do“everything”Price driven,Overview of management consulting,Global high-value-added consulting companies will have an advantage over local consulting companies because global companies-Can leverage worldwide intellectual capital and experience-Still have necessary local capabilities,Glob
27、al capabilities and support,On-line access to intellectual capital,data bases,benchmarks,Training and global project experience for local consultants,Overview of management consulting,A.T.Kearney as a strategic management consulting firm,Founded in 1926International scope 65 offices in 34 countriesO
28、ver 3000 consultantsSince 1996,A.T.Kearney is the second largest strategic management consulting firm in the worldOver 3000 projects engagements per year1,4 bln USD turnover in 2001Since 1995,A.T.Kearney is part of EDS,the international leader in technology information80%of work for repeat clientsAverage consultant work experience:17 years,Tokyo,Chicago,New York,Madrid,London,Dsseldorf,Milan,Amsterdam,Brussels,Munich,Stuttgart,Beijing,Singapore,Stockholm,Oslo,Copenhagen,Hong Kong,Sao Paulo,Melbourne,Sydney,Berlin,Toronto,Boston,Cleveland,Washington,
