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Best in Fr an ce Prof. Michael Segalla

Best in Fr an ce 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

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Best in Fr an ce Prof. Michael Segalla

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  1. Best in FranceProf. Michael Segalla Christy Barlow Jean-Louis Brunin Nathalie Gorin  Daniel Pham  Ahmad Tabbara

  2. 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

  3. Executive Overview & Competition

  4. 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 2005www.rolandberger.com

  5. Executive Overview (2) • Competence Centers • Industry: • Automotive • Chemicals & Oil • Consumer Goods & Retail • Engineered Products & High Tech • Financial Services • InfoCom • Pharma & Medical Devices • Public Services & Heatlh Care • Transportation • Utilities • Functional: • Corporate Strategy & Organization • Information Management • Marketing & Sales • Operations Strategy • Restructering & Corporate Finance Sources: VAULT Guide 2005

  6. 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

  7. 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 2005www.atkearney.fr

  8. 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 2005www.bain.fr , www.editionsdumanagement.com

  9. 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 2005www.essec.fr

  10. 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 2005www.mckinsey.com , www.editionsdumanagement.com

  11. In-depth analysis of Roland Berger

  12. 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

  13. 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

  14. 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

  15. Company Values

  16. 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

  17. 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

  18. Constraints in France • Principle constraints Roland Berger experienced coming to France • Building a reputation • Initial recruitment

  19. Building the BrandImportance of Reputation • Critical for sales • …

  20. Building the BrandGerman 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

  21. Building the BrandImportance 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

  22. 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

  23. Building the BrandSuccesses • 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

  24. 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

  25. 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

  26. Recruitment Today • Turnover approximately 8% • Low compared to other consulting firms • Trends depending on economy • Currently experiencing high growth • Target: 40 consultants in 2005

  27. 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

  28. 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

  29. 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

  30. 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

  31. 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

  32. 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

  33. 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

  34. 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)

  35. 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

  36. Takeaways

  37. 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

  38. Special Thank

  39. We Thank • Sébastien Chanel • Senior Project Manager • 11, rue de Prony, 75017 Paris • +33 1 53 67 03 20 • sebastien_chanel@fr.rolandberger.com

  40. 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

  41. Bibliography

  42. 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

  43. Back-up Stuff

  44. Progression • Progression is slower today than in the past • Example: Junior consultant • 1996: 14- 16 months • 1999: 9 months • 2005: 2 years

  45. Culture Shift • Initially entrepreneurial • Need to become more structural

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