Boston Consulting Group
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|Headquarters||Boston, Massachusetts, U.S.|
Number of locations
|More than 90 offices|
|Rich Lesser (CEO)|
|Revenue||$7.5 billion (2018)|
Number of employees
The firm was founded by Bruce Henderson as part of The Boston Safe Deposit and Trust Company. Henderson, a Harvard Business School alumnus, had previously been employed at Arthur D. Little. In 1973 Bill Bain and others left BCG to form Bain & Company, and two years later Henderson arranged an employee stock ownership plan (ESOP), so that the employees could take the company independent from The Boston Safe Deposit and Trust Company. The buyout of all shares was completed in 1979.
In 1998 the firm created The Strategy Institute, to enrich the firm's strategic thinking by applying insights from a variety of academic disciplines to the strategic challenges facing both business and society.
BCG typically hires for an Associate or a Consultant position, recruiting MBA graduates from the high-ranking business schools. There is also an opportunity to join as a Summer Associate or Summer Consultant (internship) position for 10 weeks.
Insiders estimate that BCG North American offices receive around 10,000 resumes every year for the Associate position. Typically, 1–2% of candidates are extended an offer to join the firm, ~70% of whom accept—ratios that are considered in line with competitors.
After a two year tenure, some associates choose to stay for a third year as Senior Associates and have the opportunity to work abroad in a foreign office through BCG's Associate Exchange Program. Many Associates are also sponsored by the firm to attend business school and rejoin the company afterwards as Consultants. As is typical for the top strategy consultancies, BCG practices an "up or out" or "forced attrition" system, in which employees must leave the company when they fail to achieve a promotion within fixed time-frames.
BCG uses the case method to conduct interviews, which is an interview technique designed to simulate the types of problems inherent in management consulting and to test the qualitative and quantitative skills deemed important for abstract thinking in a business setting. The first round of interviews consists of two 30 minute cases with BCG consultants. Successful candidates may be passed on to the second round corresponding with a regional office. The second round consists of three 30–45-minute interviews with partners from that office in a similar format to the first round interviews..
In the 1970s, BCG created and popularized 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", 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.
BCG Network companies
BCG has built a network of companies that complement its management consulting skill set.
INVERTO, a BCG Company
INVERTO, A BCG Company is an international management consultancy and one of the leading specialists for strategic purchasing and supply chain management in Europe.
BCG Platinion cover the tech, architecture, implementation, and human-centered design side of digital transformations.
BCG Digital Ventures
BCG DV partner with companies to research, design and launch new products and services.
BCG Gamma apply data science, analytics and artificial intelligence to find competitive advantage.
BCG Omnia is the firm’s asset-based or product division that supplements the firm’s core consulting business with software and data products, and in some cases provides them directly to its clients.
Notable current and former employees
Every year, BCG publishes articles, industry reports, government commissioned studies and books relating to particular industries or authorial practice areas. Many partners have written books on management issues, including:
- Silverstein, Michael J.; Fiske, Neil (2003), Trading Up: Why Consumers Want New Luxury Goods and How Companies Create Them, ISBN 978-1591840800. A Business Week Bestseller and Berry AMA book prize winner.
- Andrew, James P.; Sirkin, Harold L. (2006), Payback: Reaping the Rewards of Innovation, Harvard Business School Press, ISBN 978-1422103135. Payback has become a staple in the MBA curriculum.
- Evans, Philip; Wurster, Thomas S. (2000), Blown to Bits: How the New Economics of Information Transforms Strategy, ISBN 978-0875848778
- Silverstein, Michael J.; Butman, John (2006), Treasure Hunt: Inside the Mind of the New Consumer, ISBN 978-1591841234
- Duck, Jeanie Daniel (2002), The Change Monster: The Human Forces that Fuel or Foil Corporate Transformation and Change, ISBN 978-0609607718
- ""Boston Consulting Group Hits $6.3 Billion in Sales"". March 8, 2018.
- ""Rich Lesser"".
- ""Boston Consulting Group Revenues Reach $7.5 Billion"". March 28, 2019.
- "BCG History - The History of Boston Consulting Group". https://www.bcg.com. Retrieved October 10, 2019. External link in
- "BCG Global Office Directory – Find an Office Near You". https://www.bcg.com. Retrieved October 10, 2019. External link in
- "INVERTO, a BCG Company".
- "BCG Platinion".
- "BCG DV".
- "BCG Gamma".
- "BCG Omnia".