The Market for management consultancy services

1. Presented by Richard Stewart Market for Management Consultancies

2. Richard Stewart Previous: 2000-2003 AXA IM Impact Plus Kaiser Associates 2003-2009 Mindbench , Founder & Director Clients: Deloitte, Ernst & Young, OC&C Strategy Consultants, HSBC, Spectrum, Analysys etc.

4. Mindbench client list Our clients include:

5. “ The market for management consultancy”

6. The European consulting market is growing Source: FEACO Consulting Industry data 1996-2007 Like for like fee income (€ billion), and growth (%), by year Compound annual growth rate 1996-2007e 12.3% 74.0* 66.8* * FEACO introduced new industry definitions in 2006 to cover all consulting sales

8. Some consultancies specialise in a particular discipline, some are more generalist Sector Description Examples Corporate strategy Assesses the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors Bain McKinsey PWC Business process re-engineering Increase business efficiency and effectiveness of the processes that exist within and across organizations approached from a "clean slate" perspective Accenture BCG PWC Human resources Optimizing administrative personnel functions, with performance management, employee relations and resource planning Acceliance Hay Group PWC Mergers & acquisitions Corporate strategy, finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity Bain Deloitte PWC Change management Structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state, characterized by a shift in behaviors and attitudes in people to adopt and embrace the future state Axon PWC WCL

9. The choice is vast and covers almost every country, industry and sector Company Main business areas Industry sectors Notes Geographic coverage CIL Corporate strategy, CDD P an-industrial UK & US offices, research-based strategy house with strong links to private equity and investment banks Global Deloitte CTS (UK) Corporate strategy, CDD Pan-industrial Global office network and links to all aspects of the consulting world Global Greenwich Partners Corporate strategy CDD & investment Financial services, private equity, etc French based with offices throughout Europe Global Roland Berger Marketing, corporate strategy, acquisitions Pan-industrial 24 offices worldwide, covering Europe, Far East, Americas Global Valoris Technology, corporate strategy, sales & marketing Technology focussed, telecoms, media, IT, etc Implementing technology & process to maximise strategic effectiveness French based with European focus Value Partners Turnaround & change management, corporate strategy, VC Pan-industrial 2007merged with London-based Spectrum, a media & broadcast focussed strategy consultancy India, China, Latin America, SE Europe WCL Change management, BPR, risk management, cultural transformation Public sector focus, with smaller private sector practice Sector leaders in complex, large-scale project management, risk assessment and change implementation UK

10. MBA recruitment is at record levels MBA recruitment by Management Consultancies 1990 - 2007e 1 Top MBA recruitment study 2006 Index base 1990 MBA recruitment

11. Where do we go from here? Fiona Czerniawska www.arkimeda.com The UK consulting industry 2008-09

12. 2007: Almost £6 billion in MCA fee income* *Estimated to represent 70 percent of the UK consulting industry Source: Arkimeda

13. Numbers of consultants Source: Arkimeda 2006 2007 % Change "Pure" management consulting 15,965 17,535 10% IT consulting 10,879 11,493 6% Outsourcing advice 3,884 4,445 14% Management consulting 30,728 33,473 9%

14. Average revenue per consultant up by 2% Source: Arkimeda

15. The major private sector markets Consumer products £200m £400m £600m 0% -20% 40% 20% % Change 2006-07 Aerospace & defence Retailing Chemicals, Utilities Telecoms Banking Size of market Source: Arkimeda Transportation Insurance

16. Trends by service line £500m £1,000m £1,500m 0% -20% 60% 20% Size of market % Change 2006-07 Outsourcing advice Financial mgmt Operations Strategy HR Programme mgmt Marketing IT consulting 40% BPR Environmental Source: Arkimeda Change mgmt

17. The outlook? Scenario 2 Source: Arkimeda Scenario 1 Scenario 3 Phase 1 Paralysis Phase 2 Re-focus Phase 3 Recession Depends on extent of bad economic news

19. Mindbench contacts Richard Stewart (Managing Director) Telephone: ++44(0) 20 7089 9017 Address: 28A Cole Street, London, SE1 4YH Email: richard@mindbench.co.uk www.mindbench.com