Boston Consulting Group
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| Type | Partnership |
|---|---|
| Industry | Management consulting |
| Founded | 1963 |
| Headquarters | Boston, Massachusetts, United States 74 offices in 42 countries |
| Key people | Hans-Paul Bürkner, President & CEO |
| Products | Management consulting services |
| Revenue | US$ 3.05 billion (2010) BCG.com |
| Employees | 4,800 (consultants) BCG.com |
| Website | bcg.com |
The Boston Consulting Group (BCG) is a global management consulting firm with offices in 42 countries. It is recognized as one of the most prestigious management consulting firms in the world.[1] It is one of only three companies to appear in the top 15 of Fortune's "Best Companies to Work For" report for seven consecutive years.[2] In the 2011 list, BCG is listed as the second best company to work for, and is the only top-tier consulting firm to appear in the top 100 according to Fortune.[3] BCG is also the only firm to have been listed every year in Consulting Magazine's "Best Firms to Work For" list, since the magazine's inception in 2001.[4]
The company was formed by Bruce D. Henderson, a Vanderbilt University and Harvard Business School alumnus. After many years in the purchasing department of Westinghouse in Pittsburgh (where pricing behavior gave him the idea of the experience curve), he joined Arthur D. Little in Cambridge, Massachusetts. He was then recruited by The Boston Company, where he founded a one-man, one-telephone consulting unit he named Boston Consulting Group. In 1975, Henderson arranged an employee stock ownership plan, and employees took the company independent from The Boston Company.[5] The buyout of all shares was completed in 1979.[6]
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[edit] Concepts developed
[edit]
In 1968, BCG created the "growth-share matrix", a simple chart to assist large corporations in deciding how to allocate cash among their business units The corporation would categorize its business units as "Stars", "Cash Cows", "Question Marks", and "Dogs" (originally "Pets"), and then allocate cash accordingly, moving money from "cash cows" toward "stars" and "question marks" that had higher market growth rates, and hence higher upside potential.[7][8]
[edit] "Experience curve"
The experience curve illustrates that the more often a task is performed the lower will be the cost of doing it. The task can be the production of any good or service. Each time cumulative volume doubles, value-added costs (including administration, marketing, distribution, and manufacturing) fall by a constant and predictable percentage.
In the late 1960s, Bruce Henderson expounded the implications of the experience curve for strategy.[9] BCG research concluded that because relatively low cost of operations is a very powerful strategic advantage, firms should capitalize on these learning and experience effects.[10]
[edit] Advantage matrix
In this matrix, the two axes are economies of scale and differentiation. The four quadrants formed are called "Volume", "Stalemated", "Specialized", and "Fragmented".
[edit] Recruiting
BCG typically hires for Associate or Consultant positions. While so-called "lateral hires" as Project Leader, Principal or Partner are possible, they are not the norm. In the United States, BCG recruits undergraduates to join as Associates from about a dozen institutions. Top-performing Associates receive sponsorship to pursue an MBA, returning to BCG upon completion. Some Associates advance to Consultant and beyond without obtaining an MBA, but the vast majority of Associates attend business school. A few complete JDs, MD and other graduate degrees at various institutions (called ADCs for Advance Degrees Consultants). BCG also makes large efforts to hire advanced non-business degree holders. Graduates holding J.D.s, M.D.s and Ph.D.s in disciplines like engineering, science, and liberal arts receive training in business fundamentals and then typically join the firm as Consultants although this varies between different geographies. There is also an opportunity to join as a Summer Associate or Summer Consultant (internship) position for 10 weeks, which for many interns will result in an offer of a full-time position.
Like most consulting firms, BCG uses a modified version of the Cravath System, also known as "up or out".
[edit] Competitors
Three firms compete in providing management consulting services to Fortune 500 and large enterprises, consistently recruiting top talent from elite colleges and professional/graduate schools globally: McKinsey & Company, Bain & Company, and The Boston Consulting Group.[11] This top tier of the consulting industry is commonly termed "the MBB" by executive recruiters and industry insiders.[12]
Although these three firms compete directly across all major sectors and geographies, each firm possesses its own unique profile that defines its sustainable competitive advantage in the marketplace.
[edit] Publications
- Michael J. Silverstein and Kate Sayre. Women Want More: How to Capture Your Share of the World's Largest, Fast-Growing Market 2009.
- Harold L. Sirkin, James W. Hemerling and Arindam K. Bhattacharya. Globality: Competing with Everyone from Everywhere for Everything 2008.
- Carl W. Stern and Michael S. Deimler: The Boston Consulting Group on Strategy 2006. A collection of articles on strategy and management
- James P. Andrew and Harold L. Sirkin: Payback – Reaping the Rewards of Innovation Harvard Business School Press 2006
- Michael J. Silverstein with John Butman: Treasure Hunt – Inside the Mind of the New Consumer 2006.
- Michael J. Silverstein and Neil Fiske: Trading Up – Why Consumers Want New Luxury Goods and How Companies Create Them 2003
- Jeanie Daniel Duck: The Change Monster – The Human Forces that Fuel or Foil Corporate Transformation and Change 2002.
- Tiha von Ghyczy and Bolko von Oetinger: Clausewitz on Strategy 2001.
- Philip Evans and Thomas S. Wurster: Blown to Bits – How the New Economics of Information Transforms Strategy 2000.
[edit] Offices
[edit] Asia-Pacific
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[edit] Europe, Middle East and Africa
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[edit] The Americas
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[edit] Notable current and former employees
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This section relies on references to primary sources or sources affiliated with the subject, rather than references from independent authors and third-party publications. Please add citations from reliable sources. (August 2010) |
[edit] Business
- Jeff Immelt – CEO of General Electric
- Indra Nooyi – CEO of Pepsi
- George David – Former Chairman and CEO of United Technologies[13]
- Stefan Quandt – Owner of Delton AG
- Andy Hornby – CEO of Alliance Boots, former CEO of HBOS plc
- Neil Fiske – CEO of Eddie Bauer, co-author of Treasure Hunt: Inside the Mind of the New Consumer
- Michael Dornemann – Chairman & CEO of Bertelsmann Entertainment
- Bill Bain – Founder of Bain & Co.
- Roland Berger – Founder of Roland Berger Strategy Consultants, Advisory Board of The Blackstone Group
- Jim Whitehurst – CEO of Red Hat, former COO of Delta Air Lines
- Gerald Corbett – CEO of Railtrack
- Mauricio González Sfeir – Former President of YPFB, Former Secretary of Energy of Bolivia, owner of La Paz F.C.
- Jim Koch – Founder, CEO, & Brewmaster of Boston Beer Company[14]
- Dean Nelson – Chairman of Primedia
- Bruce Buchanan – CEO of Jetstar Airways
- Martin Halusa – CEO of Apax Partners
- Steve Hafner – Co-founder and CEO of Kayak.com, co-founder and former CEO of Orbitz[15]
- Ahmed Fahour – CEO of Australia Post
- Andreas Jacobs – Chairman of Barry Callebaut
- Jean-Christophe Babin – CEO of TAG Heuer[16]
- John Replogle – President and CEO of Burt's Bees
- Alan Tripp – Founder of SCORE! Educational Centers and InsideTrack
- Michael A. Carpenter – Chairman of Southgate Alternative Investments, former CEO of Salomon Smith Barney[17]
- Michael R. Eisenson – co-founder of Charlesbank Capital Partners, former managing director of the Harvard Management Company
- Bill Browder – Co-founder of Hermitage Capital Management
- Shikhar Ghosh – Serial Entrepreneur, MBA Class of 1961 Senior Lecturer at Harvard Business School
- John Paulson – Founder of Paulson & Co, a New York-based hedge fund
- Gary M. Reiner – SVP and CIO of General Electric
- George Barkley - Former CEO and investment banker
- Harold L. Sirkin – Author of several business books, including Payback: Reaping the Rewards of Innovation and GLOBALITY: Competing with Everyone from Everywhere for Everything
- Michael J. Silverstein – Author of several bestselling business books, including Trading Up: The New American Luxury and Treasure Hunt: Inside the Mind of the New Consumer
- John Ho – Former Asia chief of The Children's Investment Fund[18]
- Jan Koeppen – COO of News Corporation Europe and Asia[19]
- Peter Balnaves – CTO of CVS Caremark
- Mehmet Subasi – Founder & CEO of Vodaco
- Philip Hulme – Founder of Computacenter
- Ariane de Bonvoisin – Author of The First 30 Days: Your Guide to Any Change (And Loving Your Life More)
- Austin Ligon – Co-Founder, Retired CEO CarMax
- Pahala N. Mansury – EVP Coordinator Finance & Strategy and CFO, Bank Mandiri
[edit] Politics and public service
- Benjamin Netanyahu – Prime Minister of Israel (1996–1999, 2009–Present)
- Mitt Romney – Governor of Massachusetts (2003–2007), CEO of the 2002 Winter Olympics in Salt Lake City, co-founder of Bain Capital, former CEO of Bain & Company
- Margaret Spellings – Secretary of Education under President George W. Bush
- Jeffrey Hunker – National Security Council member under President Bill Clinton and professor at Carnegie Mellon University
- Hans Wijers – Minister of Economic Affairs of the Netherlands (1994–1998), CEO of Akzo Nobel
- Ira Magaziner – Aide and policy advisor to President Clinton, CEO of SJS Advisors and co-founder of Brown University's open curriculum
- Peter Lampl – Founder and Chairman of Sutton Trust
- Alexander De Croo – Chairman of the Flemish Liberals and Democrats
- Steve Poizner – California Insurance Commissioner (2007–2011) and California businessman
- Laura Liswood – Co-founder and Secretary-General of the Council of Women World Leaders
- Mahlon Apgar, IV – international authority on housing, infrastructure, and real estate
- Natasha Tsukanova – Advisor to the Russian government on Energy M&A[20]
- Ken Hachikian – Chairman of the Armenian National Committee of America and Cambridge Heart, Inc.
- David Young – COO of World Vision International
[edit] Academia
- Sally Blount – Dean, Northwestern University, Kellogg School of Management.
- Clayton Christensen – Professor, Harvard Business School. Best known for his study of innovation in commercial enterprises, particularly his theory of disruptive technology.
- Michael Chu – Senior Lecturer, Harvard Business School, Former partner Kohlberg Kravis Roberts, founding senior partner of Pegasus Capital Advisors, and co-founder and Managing Director of IGNIA.
- James Abegglen – former management and economics professor, the author and co-author of ten books on Japan, including the bestseller The Japanese Factory (1958), which introduced Japanese employment practices to America. Founder of BCG's Tokyo office.
- Jeffrey Hunker – Distinguished Service Professor of Technology and Public Policy, Carnegie Mellon University. Former Dean of Carnegie Mellon's Heinz College, and Founding Director of the US Department of Commerce's Critical Infrastructure Assurance Office
- Jeremy Davis – Former Dean and Professor, the Australian Graduate School of Management. Founder of BCG's Paris and Menlo Park offices.[21]
- Linda Bilmes – Professor, Harvard Kennedy School of Government
[edit] Others
- John Legend – Grammy award winning musician
- Liu Yiting – Subject of the book Harvard Girl, a best-seller in China
- Alex Michel – Star of the Bachelor, Season One
- Alexander N. Rossolimo – Founding chairman of Center for Security and Social Progress, Inc.
- Carl Woebcken – German film producer
- Karan Bajaj – Author of the 2008 Indian best seller Keep Off the Grass
- Yibo Shao – Founder of IDG Capital Partners, founder of eBay Eachnet Co Ltd
[edit] References
- ^ "Vault.com". Vault.com. 2012-01-05. http://www.vault.com/wps/portal/usa/companies/company-profile?companyId=322&search_type=company. Retrieved 2012-02-11.
- ^ The other two are Wegmans and W. L. Gore & Associates. Company press release
- ^ Fortune magazine, "100 Best Companies To Work For, 2011"
- ^ "Consulting Magazine, "". Consultingmag.com. http://www.consultingmag.com/article/ART646235?C=vwYyWJTDVE7NlfT. Retrieved 2012-02-11.
- ^ About BCG: BCG.com
- ^ About BCG: BCG.com
- ^ The Product Portfolio, BCG, January 1970
- ^ The Experience Curve Reviewed BCG
- ^ Hax, Arnoldo C.; Majluf, Nicolas S. (October 1982). "Competitive cost dynamics: the experience curve". Interfaces 12 (5): 50–61. doi:10.1287/inte.12.5.50.
- ^ Henderson, Bruce (1974, #149). "The Experience Curve Reviewed: V. Price Stability" ([PDF] Reprint). Perspectives (The Boston Consulting Group). http://www.bcg.com/publications/files/experiencecurveV.pdf. Retrieved March 24, 2007.
- ^ Luefschuetz, Gary S., Selling Professional Services to the Fortune 500: How to Win in the Billion-Dollar Market of Strategy Consulting, Technology Solutions, and Outsourcing Services, (McGraw-Hill Professional, 2010) via Google Books.
- ^ "Consultant speak: management consulting lingo, consulting terminology and common consulting terms". Managementconsulted.com. http://managementconsulted.com/core-content/dictionary/. Retrieved 2012-02-11.
- ^ Chief Executive magazine. "CEO of the Year 2005."
- ^ Cohan, Peter. "Will Obama serve Sam Adams at this week's White House happy hour?." DailyFinance.com. July 28, 2009
- ^ VCgate. "Kayak.com Leading The Travel Search Engine Market." March 14, 2009
- ^ Business Wire. "Appointments Within LVMH's Watch & Jewellery Business Group." July 12, 2000
- ^ GMAC Financial Services press release. "New GMAC Board of Directors is Established." May 27, 2009
- ^ Yamazaki, Tomoko and Sato, Shigeru. "TCI Loses More Than Face as Japan Says No to Foreigners Playing." Bloomberg L.P.. July 29, 2009
- ^ Thomson Reuters. "News Corp appoints Jan Koeppen COO Europe and Asia." March 19, 2009
- ^ Hiralal, Baz. "J.P. Morgan banker exits to advise Russia on M&A?." TheDeal.com. May 15, 2009.
- ^ Byrt, William John. "Management Education: An International Survey"
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