Mitchell Madison Group

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Mitchell Madison Group
Corporation
IndustryManagement consulting
Founded1994
HeadquartersNew York, NY and Jackson, Wyoming, USA
Key people
Hans Dau, Apurva Nair, Steven McQueen
ProductsPrivate Equity Consulting, Strategic Sourcing, Performance Improvement
Revenue$35MM (est.),[1]
Number of employees
100 (est.) [2]
Websitewww.mmgmc.com

The Mitchell Madison Group (MMG) is a major global management consulting firm based in the United States that focuses on improving financial and operating performance for major corporations and Private Equity portfolio companies. It was founded in 1994 and re-launched in 2003. It is active in corporate performance improvement, strategic sourcing, marketing science, pricing optimization, strategy consulting, and big data analysis.

History[edit]

The firm was founded in 1994 as part of a management buyout by a group of A.T. Kearney partners as A.T. Kearney was in the process of selling itself to EDS,[3] an IT outsourcing conglomerate. The original Mitchell Madison Group had about 120 professionals in 1994.

The firm experienced rapid growth in the 1990s, primarily in its strategic sourcing practice, serving large financial institutions. With 16 offices and almost 1,000 employees, Fortune magazine named it one of the top 50 firms to work for in 1999. The firm was sold in late 1999 for about $300 million to USWeb, a Web design company which expanded during the dot-com bubble into management consulting.[4] Subsequently, USWeb merged with Whitman-Hart, another consulting firm based in Chicago.[5] The combined company, a merger of equals, had over 10,000 employees with annual revenues exceeding $1 billion and soon renamed itself "marchFIRST". With the burst of the dot-com bubble, marchFIRST went into bankruptcy in April 2001 and its assets were liquidated.[6]

In 2003, Hans Dau with other partners, who were running the West Coast offices of the original Mitchell Madison Group, re-launched the firm by acquiring the brand name in bankruptcy court. By 2008, the firm had grown to about 150 employees with main offices on New York, Los Angeles and Manila and several satellite offices in Europe and Asia.

The firm is featured, although not by name, in Matthew Stewart's book The Management Myth.[7] Stewart takes care not to state the name of the firm, but he does say that it was bought out by an Internet company whose CEO was named "Joe" and believed in UFOs.

Organization[edit]

The firm has operations in several US cities and Asia. Hans Dau is the firm's Managing Partner.[8]

Business[edit]

The Mitchell Madison Group works with large corporations in the US, Asia, and Europe on a variety of performance improvement, analytics and strategy issues. Consistent with trends in the industry, MMG is working with Private Equity firm's portfolio companies on similar issues. Much of the consulting industry has shifted its focus on servicing Private Equity clients, due to their higher level of motivation to improve earnings and their experience with management consultants. In fact, the Private Equity governance model depends on fast performance improvement to add value quickly. [9] In any large corporation, getting, say $10M in earnings improvement does not provide sufficient motivation for management to overcome organizational or political obstacles. In a Private Equity owned company, however, $10M EBITDA is equivalent to 10x or more in equity value upon exit, hence the higher level of motivation.

MMG is a functional specialist, as opposed to being focussed on particular client industries, having served the tech, telecom, banking, insurance, entertainment, healthcare, business services, and manufacturing industries. Consistent with a resurgence of manufacturing in the US and globally, the firm frequently assists major manufacturing companies with cost reduction initiatives. [10] Much of the work is global strategic sourcing, which is becoming more important as manufacturers seek to diversify their global supply chain in the wake of the COVID-19 pandemic.[11]

Recruiting[edit]

The Mitchell Madison Group is hiring various positions in the US and recruits on campus at major universities.[12] MMG's recruiting strategy is more focussed on demonstrated problem-solving skills, intelligence and creativity than on past business experience. The firm's recruiting process is fairly typical and similar to other firms, making use of testing and interview case problem-solving.

MMG is also active in MBA and selected PhD recruiting. [13]

References[edit]

  1. ^ Crunchbase
  2. ^ MMG Profile
  3. ^ NY Times "EDS Resumes Purchase Talks with AT Kearney"
  4. ^ USWeb/CKS Acquires Mitchell Madison Group In $300 Million Deal
  5. ^ CNET "USWeb to merge with Whitman Hart
  6. ^ NY Times: MarchFirst to Liquidate
  7. ^ Matthew Stewart, The Management Myth - Why the Experts Keep Getting it Wrong - ISBN 0393065537
  8. ^ Mitchell Madison Profile
  9. ^ HBR Secret of Private Equity
  10. ^ PR News Wire on MMG
  11. ^ Sourcing In Turbulent Times
  12. ^ Careers at MMG
  13. ^ MMG MBA Profile

External links[edit]

Official website Mitchell Madison Group on Twitter