Boston Consulting Group

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Boston Consulting Group
Private
IndustryManagement consulting
Founded1963; 56 years ago (1963)
FounderBruce Henderson
HeadquartersBoston, Massachusetts, U.S.
Number of locations
More than 90 offices[1]
Area served
Worldwide
Key people
Rich Lesser (CEO)[2]
Revenue$7.5 billion (2018)[3]
Number of employees
18,500 worldwide[3]
Websitewww.bcg.com

Boston Consulting Group (BCG) is an American management consulting firm founded in 1963.[4] The firm has more than 90 offices in 50 countries,[5] and its current CEO is Rich Lesser.[2]

History[edit]

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.[citation needed]

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.[citation needed]

Boston Consulting Group (BCG) ranked 8th overall and 1st among smaller companies in Fortune magazine's 2007 "100 Best US Companies to Work For" survey.[citation needed]

Recruiting[edit]

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.[citation needed]

Interview process[edit]

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.[citation needed].

BCG growth-share matrix[edit]

Growthsharematrix.png

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.[citation needed]

BCG Network companies[edit]

BCG has built a network of companies that complement its management consulting skill set.[citation needed]

INVERTO, a BCG Company[edit]

INVERTO, A BCG Company is an international management consultancy and one of the leading specialists for strategic purchasing and supply chain management in Europe.[6]

BCG Platinion[edit]

BCG Platinion cover the tech, architecture, implementation, and human-centered design side of digital transformations.[7]

BCG Digital Ventures[edit]

BCG DV partner with companies to research, design and launch new products and services.[8]

BCG Gamma[edit]

BCG Gamma apply data science, analytics and artificial intelligence to find competitive advantage.[9]

BCG Omnia[edit]

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.[10]

Notable current and former employees[edit]

Publications[edit]

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.[citation needed]
  • 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.[citation needed]
  • 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

References[edit]

External links[edit]