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Roland Berger Powered By Docstoc
					Best in France
Prof. Michael Segalla




                                     Christy Barlow  Jean-Louis Brunin
                        Nathalie Gorin  Daniel Pham  Ahmad Tabbara
Agenda

 Executive Overview & Competition
 In-depth analysis of Roland Berger
     The French Office
     Company‟s values
     Why come to France?
     Constraints in France
     Building the Brand in France
     Recruitment in France
     Adaptations to the French market
 Takeaways
Executive Overview &
Competition
Executive Overview (1)

 Roland Berger Strategy Consultants
     Established in 1967
     Headquarter in Munich / Germany
     34 offices worldwide
     Employees 2003: 1,700
     Revenue 2003: > US$ 625 Million
 Key Competitors
   A.T. Kearney, Bain & Company, Boston
    Consulting Group, McKinsey & Company
                                        Sources: VAULT Guide 2005
                                             www.rolandberger.com
Executive Overview (2)

 Competence Centers
   Functional:                Industry:
      Corporate Strategy &         Automotive
       Organization                 Chemicals & Oil
      Information                  Consumer Goods & Retail
       Management                   Engineered Products &
      Marketing & Sales             High Tech
      Operations Strategy          Financial Services
      Restructering &              InfoCom
       Corporate Finance            Pharma & Medical Devices
                                    Public Services & Heatlh Care
                                    Transportation
                                    Utilities

                                                    Sources: VAULT Guide 2005
Executive Overview (3)

 What consultants at other firms are saying
   “Becoming stronger and stronger, not only in
    Germany”
   “Pretentious, provincial”
   “Deep pockets”
   “Automotive guys”




                                        Sources: VAULT Guide 2005
Competition (1)


     Established in 1926
     Headquarter in Chicago, IL / USA
     60 offices worldwide
     Office in Paris (Europe) opened in 1967 (1964)
     Employees Paris 2003: 190 consultants
     Employees WW 2003: 4,000
     Revenue 2003: US$ 857 Million

                                          Sources: VAULT Guide 2005
                                                    www.atkearney.fr
Competition (2)


     Established in 1973
     Headquarter in Boston, MA / USA
     30 offices worldwide
     Office in Paris opened in 1985
     Employees Paris 2003: 80 consultants
     Employees WW 2004: 2,800
     Revenues Paris/WW 2003: 27 M€ / 761 M$
     Voted “No. 1: Best workplace in France”
                                                 Sources: VAULT Guide 2005
                                www.bain.fr , www.editionsdumanagement.com
Competition (3)


     Established in 1963
     Headquarter in Boston, MA / USA
     60 offices worldwide
     Office in Paris opened in 1973
     Employees Paris: 200 consultants + 100 other
     Employees WW 2003: 2,600 consultants
     Revenue WW 2003: US$ 1,12 Billion

                                         Sources: VAULT Guide 2005
                                                      www.essec.fr
Competition (4)


     Established in 1926
     Headquarter in New York, NY / USA
     83 offices worldwide
     Office in Paris opened in 1964
     Employees France: 220 consultants
     Employees WW 2003: 11,000 consultants
     Revenues Paris/WW 2003: 120 M€* / 3,4 B$

      *) Estimated                                  Sources: VAULT Guide 2005
                             www.mckinsey.com , www.editionsdumanagement.com
In-depth analysis of
Roland Berger
Entry into French Market

 Opened French office in 1992
   Founding Managing Partner: Paul Goldschmidt
    • Former Bain consultant
    • Personal connections to business community
    • Entrepreneurial
   5-6 people from the German Office
Presence in France Today

 Managing Partner: Vincent Mercier
      Former GM at Carrefour
 140 consultants
 8 to 12% of worldwide business in France *
      RB largest market is Germany with 40% of sales
 Market position: 3rd strategic consultancy in
  France after BCG and McKinsey & Company
 Strong growth in 2004
      Market growth of approx 6%
      40% growth at Roland Berger France

* Note: these estimates do not take into account international optimization
Roland Berger Clients

 French and multinational firms in most
  sectors
 Significant presence
   Private Equity
   Aerospace
   Industry
 In-country presence in critical
   French clients expect French consultants
Company Values
Additional Characteristics

 Other less formalized values consistent
  across the company
   Two characteristics
     • Pragmatism
     • Commercial focus
   Initially, much of the company‟s culture
    derived from the personality of Roland Berger
Why come to France?

 France was considered a natural
  expansion for Roland Berger
   Physical proximity to Germany
 France became 4th country of operation
   After Germany, Italy, Portugal
 Now operating in over 20 countries
  worldwide
Constraints in France

 Principle constraints Roland Berger
  experienced coming to France
   Building a reputation
   Initial recruitment
Building the Brand
Importance of Reputation
 Critical for sales
…
Building the Brand
German Roots
 RB brand in Germany built in part on the
  strength of Roland Berger‟s charismatic
  personality
   Non-transferable to the French Market
 Initially the firm worked for German
  clients, German office did most of the
  project sales
Building the Brand
Importance of Networks
 Importance of education and alumni
  network critical in France
   Influence of „Grande Ecole‟
 In other markets consulting firm alumni
  networks are more important than they
  are in France
   Advantage for RB, since RB network is not as
    strong as competition yet
Building the Brand

 Build on successes
   Slowly sell to more clients
   Larger Projects
 Use senior advisors
   Ex: former CEO of Credit Lyonnais
 Recruit senior people from other
  consulting firms
Building the Brand
Successes
 Currently the vast majority of projects are
  sold by the French office to French firms
  and participation / lead in transnational
  accounts (joint teams with other offices)
 Being asked to write articles, although had
  difficulty being published 4 years ago
Initial Recruitment

 Initially difficult to compete with other
  firms because relatively unknown name
 96-98 recruited different profiles than
  other consulting firms
   Many nationalities
   Not always able to focus on „Grandes Ecoles‟
    alumni
   Positioning tended to focus around German
    roots, where reputation was very good
 This has changed as company has grown
Adaptation to France

 What kinds of adaptations have/are you making
  to your people management systems?
     Recruitment/Selection
     Compensation
     35-Hour Work Week
     Terminations
     Language
     Cultural Interactions
     Interoffice Work Schedule
     Corporate Communication Policies
     Office Location
Recruitment Today

 Turnover approximately 8%
   Low compared to other consulting firms
   Trends depending on economy
 Currently experiencing high growth
   Target: 40 consultants in 2005
Compensation

 French office pays less than German office
 RB France does not compete for
  candidates with other firms using pay as a
  primary means
   Attempts to use corporate culture as a draw
   Can be a constraint in recruitment
35-Hour Work Week

 Has not caused major issues
 Consultants work long hours
 Work Council
   Agreement to give employees 10 additional
    days of vacation in compensation for extra
    hours of work (total vacation increased from
    25 to 35 days)
 More holiday in France than in Germany
Terminations

 Need to adjust costs in 2001 / 2002
 French office terminations: 15 of 200
 Layoffs were more difficult in France than
  in Germany
 Approx ½ of cases involved legal action
 Have adjusted policy of terminations
   More friendly now, ex: 6-month notice
Language
German vs. French
 8 years ago was RB corporate policy to
  only hire people who spoke German
   Requirement has been relaxed
   Paul Goldschmidt did not speak German
 RB France hires exclusively French
  speaking consultants
   Critical for competitive advantage: proximity &
    involvement with clients
Cultural Interactions

 Client interaction
   Important differences between the German
    model and the French model
     • German: direct, forceful
 Management interaction
   Differences in decision making between French
    and German
 Inter-office interactions
   Quarterly partner meetings
   Yearly employee meetings in Germany
Inter-Office Work Schedule

 Use competency centers as internal expert
  advisors for projects
 60% of French office projects are
  domestic
 International projects
 Global staffing optimized
Communications
 RB has not traditionally spend as much money on corporate
  PR as other consultancy firms in France
    Does have impact on recruitment and large projects involving
     many people
 This is changing
    Targeted PR is being introduced, both across European based
     and France specific
    Examples: Best in European Business, articles in „Les Echos‟
 However, in France companies do not want highly visible
  consultants compared to other countries
    Sponsorship, such as high profile sailing races, in which RB
     participates in Germany, would not be effective in France
Location

 Opened in small office in expensive district
  (Rue Washington)
 Roland Berger asked: why not have a
  large office near the airport?
   Not possible in France
 Location and address are key
   All management consultancies have offices in
    good locations (8th, 17th, 1st or 16th)
Consultant Travel

 German consultants spend a significant
  portion on the road
 70 – 80 % of French business is done in
  Paris
 Higher percentage of women in the French
  office compared to other RB offices, but
  not necessarily compared to other French
  consulting firms
Takeaways
Essential Advice

 Need to be unique (especially for smaller
  consultancy firms)
   Have a strong position in one focus area
 Perception counts
   Size and power
 French people in organization
   Senior Positions
   Senior Advisors
Special Thank
We Thank

 Sébastien Chanel
     Senior Project Manager
     11, rue de Prony, 75017 Paris
     +33 1 53 67 03 20
     sebastien_chanel@fr.rolandberger.com
Sébastien Chanel
 ESCP-EAP
 Internship with Roland Berger in Germany in 1996
 Roland Berger France full-time in 1996
    12 consultants in the office at the time
    Exciting challenge
 Two leaves from RB
    Civil Service: Controller at Schnider Electric (sp?) in Austria
    High tech start up in 1999
 Currently employee with most seniority in Paris office
 Senior Manager in charge of recruiting
Bibliography
Bibliography

 References
   Marcy Lerner, “Vault Guide to the Top 50
    Management and Strategy Consulting Firms
    2005”
   www.rolandberger.com
   www.bain.fr
   www.mckinsey.com
   www.atkearney.fr
   www.editionsdumanagement.com
   www.essec.fr
Back-up Stuff
Progression

 Progression is slower today than in the
  past
 Example: Junior consultant
   1996: 14- 16 months
   1999: 9 months
   2005: 2 years
Culture Shift

 Initially entrepreneurial
 Need to become more structural