Boston Consulting Group
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The Boston Consulting Group
Type
Partnership
Founded
1963
Headquarters
Boston, Massachusetts 66 offices in 38 countries
Key people
Hans-Paul Bürkner, President & CEO
Industry
Management consulting
Products
Management consulting services
Revenue
US$ 2.4 billion (2008)
Employees
about 7,000
Website
bcg.com
The Boston Consulting Group (BCG) is a global management consulting firm, founded by Bruce Henderson in 1963. It has 66 offices in 38 countries, and its current CEO is Hans-Paul Bürkner. BCG is generally ranked as one of the most "prestigious" management consulting firms in the industry.[1] The firm prides itself on its employee-focused culture, and over the last 4 years has been the only top-tier consulting firm to appear in Fortune magazine's "Best companies to work for" report. In
the 2009 list, BCG is listed as the 3rd best company to work at, and is the only top-tier consulting firm to appear in the top 100.[2] The company was formed when Henderson, a Harvard Business School alumnus, left Arthur D. Little to become head of a new management consulting division of the Boston Safe Deposit and Trust Company. In 1975 Henderson arranged an employee stock ownership plan, 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.
Contents [hide] •
•
1 Thought Leadership ○
1.1 BCG Growth-Share Matrix
○
1.2 Experience Curve
○
1.3 Advantage Matrix
○
1.4 Publications
2 Recruiting ○
2.1 Interview process
•
3 Competitors
•
4 Offices ○
4.1 Offices in Asia Pacific
○
4.2 Offices in Europe and the Middle East
○
4.3 Offices in the Americas
•
5 Companies founded by current and former employees
•
6 Notable current and former employees ○
6.1 Business
○
6.2 Politics and public service
○
6.3 Academia
○
6.4 Others
•
7 See also
•
8 References
•
9 External links
[edit] Thought Leadership [edit] BCG Growth-Share Matrix For more details on this topic, see Growth-share matrix.
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. The chart was popular for two decades and "continues to be used as a primer in the principles of portfolio management," as BCG says.
[edit] Experience Curve For more details on this topic, see Experience curve effects. The Experience Curve illustrates that the more often a task is performed the lower will be the cost of doing it. The task can be the production of any good or service. Each time cumulative volume doubles, value added costs (including administration, marketing, distribution, and manufacturing) fall by a constant and predictable percentage. In the late 1960s Bruce Henderson, the founder of BCG, began to emphasize the implications of the experience curve for strategy.[3] BCG research concluded that because relatively low cost of operations is a very powerful strategic advantage, firms should capitalize on these learning and experience effects.[4] The reasoning is increased activity leads to increased learning, which leads to lower costs, which can lead to lower prices, which can lead to increased market share, which can lead to increased profitability and market dominance. According to BCG, the most effective business strategy was one of striving for market dominance in this way. This was particularly true when a firm had an early leadership in market share. It was claimed that if you cannot get enough market share to be competitive, you should get out of that business and concentrate your resources where you can take advantage of experience effects and gain dominant market share. The Growth-Share Matrix was developed (in part) to manage this strategy.
[edit] Advantage Matrix For more details on this topic, see Boston Consulting Group's Advantage Matrix. Another "BCG Matrix", much less widely known, is the Advantage Matrix. The two axes are economies of scale and differentiation. The four quadrants formed are called "Volume", "Stalemated", "Specialized", and "Fragmented".
[edit] Publications BCG regularly publishes articles, industry reports, and government commissioned studies relating to particular industries or business functions. For example, a recent series of articles
called "Collateral Damage" discusses how the Subprime Crisis is affecting non-financial companies, and what they can do to survive. In addition, many partners have written books on issues facing management in the modern business environment. Some recent publications include: •
Globality: Competing with Everyone from Everywhere for Everything. By Harold L. Sirkin, James W. Hemerling and Arindam K. Bhattacharya, 2008.
•
The Boston Consulting Group on Strategy. By Carl W. Stern and Michael S. Deimler, 2006. Classic anthology of articles on strategy and management
•
Payback - Reaping the Rewards of Innovation. By James P. Andrew and Harold L. Sirkin, 2006. Published by the Harvard Business School Press, Payback has become a staple in the MBA curriculum.
•
Treasure Hunt - Inside the Mind of the New Consumer. By Michael J. Silverstein with John Butman, 2006.
•
Trading Up - Why Consumers Want New Luxury Goods and How Companies Create Them. By Michael J. Silverstein and Neil Fiske, 2003. A BusinessWeek Bestseller and Berry AMA book prize winner.
•
The Change Monster - The Human Forces that Fuel or Foil Corporate Transformation and Change. Jeanie Daniel Duck, 2002.
•
Clausewitz on Strategy. By Tiha von Ghyczy and Bolko von Oetinger, 2001.
•
Blown to Bits - How the New Economics of Information Transforms Strategy. By Philip Evans and Thomas S. Wurster, 2000.
[edit] Recruiting BCG typically hires for an Associate or a Consultant position. Whilst so called "lateral hires" as Project Leader, Principal or Partner are possible, they are not the norm. BCG recruits undergraduates to join as Associates from the world's top academic institutions. In the United States, this includes about a dozen top private institutions. Many Associates receive sponsorship to pursue an MBA, returning to BCG upon completion. A very small number of Associates are permitted to advance without obtaining an MBA. The vast majority of Associates attend one of the top business schools (most often, but not only Harvard, Stanford, MIT Sloan, Wharton, Kellogg and INSEAD). A few complete JDs, MD and other graduate degrees at various institutions (called ADCs for Advance Degrees Consultants). Like most consulting firms, BCG uses a modified version of the Cravath System. BCG recruits MBA graduates to join as Consultants from the world's top business schools. BCG also makes large efforts to hire advanced non-business degree holders. Graduates holding J.D.s, M.D.s and Ph.D.s in disciplines like engineering, science, and liberal arts receive training in business fundamentals and then typically join the firm as Consultants. There is also an opportunity to join as a Summer Associate or Summer Consultant (internship) position for 10 weeks, which for the majority of interns will result in an offer for full-time position.
[edit] Interview process 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. There are multiple case interviews before an offer for employment is extended.
[edit] Competitors BCG competes most directly with McKinsey & Company, Bain & Company and Booz & Company. These are consistently rated as the most "prestigious" consulting firms,[1] and are considered to be "pure strategy" firms. With roughly 7,000 employees, BCG is smaller than McKinsey (17,000) and larger than Bain (4,300) and Booz (3,200). BCG is the largest in some countries, such as Germany and Australia, and has a much larger international presence than Bain. BCG also occasionally competes with other firms such as Deloitte, PricewaterhouseCoopers, Accenture, Ernst & Young but less directly. These firms are generally priced significantly lower, and offer a different value proposition, often focused on their ability to implement the recommendations they give. It is common for a company to employ BCG as well as some of these firms, but often for different types of work.
[edit] Offices [edit] Offices in Asia Pacific Auckland founded in 1990
Nagoya founded in 2003
Bangkok founded in 1994
New Delhi founded in 2002
Beijing founded in 2001
Seoul founded in 1994
Hong Kong founded in 1990
Shanghai founded in 1993
Jakarta founded in 1995
Singapore founded in 1995
Kuala Lumpur founded in 1992
Sydney founded in 1990
Melbourne founded in 1990
Taipei founded in 2003
Mumbai founded in 1996
Tokyo founded in 1966
[edit] Offices in Europe and the Middle East Abu Dhabi founded in 2007
Lisbon founded in 1995
Amsterdam founded in 1993
London founded in 1970
Athens founded in 2001
Madrid founded in 1987
Barcelona founded in 2002
Milan founded in 1986
Berlin founded in 1999
Moscow founded in 1994
Brussels founded in 1993 Budapest founded in 1997
Munich founded in 1975, European headquarters
Cologne founded in 2001
Oslo founded in 1996
Copenhagen founded in 1998
Paris founded in 1972
Dubai founded in 2007
Prague founded in 2004
Düsseldorf founded in 1982
Rome founded in 2001
Frankfurt founded in 1991
Stockholm founded in 1988
Hamburg founded in 1994
Stuttgart founded in 1997
Helsinki founded in 1995 Istanbul founded in 2003 closed in 2005 Kiev founded in 2007
Vienna founded in 1997 Warsaw founded in 1997 Zürich founded in 1989
[edit] Offices in the Americas Atlanta founded in 1995 Boston founded in 1963, Global Headquarters Buenos Aires founded in 1995 Chicago founded in 1979 Dallas founded in 1994 Detroit founded in 2005 Houston founded in 2003 Los Angeles founded in 1982 Mexico City founded in 1998 Miami founded in 2003
Minneapolis founded in 2007 Monterrey founded in 1993 New Jersey founded in 2006 New York founded in 1984 Philadelphia founded in 2007 San Francisco founded in 1974 Santiago founded in 2002 São Paulo founded in 1997 Toronto founded in 1993 Washington, D.C. founded in 1996
[edit] Companies founded by current and former employees Finance •
Bain Capital
•
Charlesbank Capital Partners
•
Hermitage Capital Management
•
Paulson & Co
•
Pegasus Capital Advisors
Non-profit •
Ripple
•
Sutton Trust
Jump to: navigation, search
The Boston Consulting Group
Type
Partnership
Founded
1963
Headquarters
Boston, Massachusetts 66 offices in 38 countries
Key people
Hans-Paul Bürkner, President & CEO
Industry
Management consulting
Products
Management consulting services
Revenue
US$ 2.4 billion (2008)
Employees
about 7,000
Website
bcg.com
The Boston Consulting Group (BCG) is a global management consulting firm, founded by Bruce Henderson in 1963. It has 66 offices in 38 countries, and its current CEO is Hans-Paul Bürkner. BCG is generally ranked as one of the most "prestigious" management consulting firms in the industry.[1] The firm prides itself on its employee-focused culture, and over the last 4 years has been the only top-tier consulting firm to appear in Fortune magazine's "Best companies to work for" report. In
the 2009 list, BCG is listed as the 3rd best company to work at, and is the only top-tier consulting firm to appear in the top 100.[2] The company was formed when Henderson, a Harvard Business School alumnus, left Arthur D. Little to become head of a new management consulting division of the Boston Safe Deposit and Trust Company. In 1975 Henderson arranged an employee stock ownership plan, 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.
Contents [hide] •
•
1 Thought Leadership ○
1.1 BCG Growth-Share Matrix
○
1.2 Experience Curve
○
1.3 Advantage Matrix
○
1.4 Publications
2 Recruiting ○
2.1 Interview process
•
3 Competitors
•
4 Offices ○
4.1 Offices in Asia Pacific
○
4.2 Offices in Europe and the Middle East
○
4.3 Offices in the Americas
•
5 Companies founded by current and former employees
•
6 Notable current and former employees ○
6.1 Business
○
6.2 Politics and public service
○
6.3 Academia
○
6.4 Others
•
7 See also
•
8 References
•
9 External links
[edit] Thought Leadership [edit] BCG Growth-Share Matrix For more details on this topic, see Growth-share matrix.
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. The chart was popular for two decades and "continues to be used as a primer in the principles of portfolio management," as BCG says.
[edit] Experience Curve For more details on this topic, see Experience curve effects. The Experience Curve illustrates that the more often a task is performed the lower will be the cost of doing it. The task can be the production of any good or service. Each time cumulative volume doubles, value added costs (including administration, marketing, distribution, and manufacturing) fall by a constant and predictable percentage. In the late 1960s Bruce Henderson, the founder of BCG, began to emphasize the implications of the experience curve for strategy.[3] BCG research concluded that because relatively low cost of operations is a very powerful strategic advantage, firms should capitalize on these learning and experience effects.[4] The reasoning is increased activity leads to increased learning, which leads to lower costs, which can lead to lower prices, which can lead to increased market share, which can lead to increased profitability and market dominance. According to BCG, the most effective business strategy was one of striving for market dominance in this way. This was particularly true when a firm had an early leadership in market share. It was claimed that if you cannot get enough market share to be competitive, you should get out of that business and concentrate your resources where you can take advantage of experience effects and gain dominant market share. The Growth-Share Matrix was developed (in part) to manage this strategy.
[edit] Advantage Matrix For more details on this topic, see Boston Consulting Group's Advantage Matrix. Another "BCG Matrix", much less widely known, is the Advantage Matrix. The two axes are economies of scale and differentiation. The four quadrants formed are called "Volume", "Stalemated", "Specialized", and "Fragmented".
[edit] Publications BCG regularly publishes articles, industry reports, and government commissioned studies relating to particular industries or business functions. For example, a recent series of articles
called "Collateral Damage" discusses how the Subprime Crisis is affecting non-financial companies, and what they can do to survive. In addition, many partners have written books on issues facing management in the modern business environment. Some recent publications include: •
Globality: Competing with Everyone from Everywhere for Everything. By Harold L. Sirkin, James W. Hemerling and Arindam K. Bhattacharya, 2008.
•
The Boston Consulting Group on Strategy. By Carl W. Stern and Michael S. Deimler, 2006. Classic anthology of articles on strategy and management
•
Payback - Reaping the Rewards of Innovation. By James P. Andrew and Harold L. Sirkin, 2006. Published by the Harvard Business School Press, Payback has become a staple in the MBA curriculum.
•
Treasure Hunt - Inside the Mind of the New Consumer. By Michael J. Silverstein with John Butman, 2006.
•
Trading Up - Why Consumers Want New Luxury Goods and How Companies Create Them. By Michael J. Silverstein and Neil Fiske, 2003. A BusinessWeek Bestseller and Berry AMA book prize winner.
•
The Change Monster - The Human Forces that Fuel or Foil Corporate Transformation and Change. Jeanie Daniel Duck, 2002.
•
Clausewitz on Strategy. By Tiha von Ghyczy and Bolko von Oetinger, 2001.
•
Blown to Bits - How the New Economics of Information Transforms Strategy. By Philip Evans and Thomas S. Wurster, 2000.
[edit] Recruiting BCG typically hires for an Associate or a Consultant position. Whilst so called "lateral hires" as Project Leader, Principal or Partner are possible, they are not the norm. BCG recruits undergraduates to join as Associates from the world's top academic institutions. In the United States, this includes about a dozen top private institutions. Many Associates receive sponsorship to pursue an MBA, returning to BCG upon completion. A very small number of Associates are permitted to advance without obtaining an MBA. The vast majority of Associates attend one of the top business schools (most often, but not only Harvard, Stanford, MIT Sloan, Wharton, Kellogg and INSEAD). A few complete JDs, MD and other graduate degrees at various institutions (called ADCs for Advance Degrees Consultants). Like most consulting firms, BCG uses a modified version of the Cravath System. BCG recruits MBA graduates to join as Consultants from the world's top business schools. BCG also makes large efforts to hire advanced non-business degree holders. Graduates holding J.D.s, M.D.s and Ph.D.s in disciplines like engineering, science, and liberal arts receive training in business fundamentals and then typically join the firm as Consultants. There is also an opportunity to join as a Summer Associate or Summer Consultant (internship) position for 10 weeks, which for the majority of interns will result in an offer for full-time position.
[edit] Interview process 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. There are multiple case interviews before an offer for employment is extended.
[edit] Competitors BCG competes most directly with McKinsey & Company, Bain & Company and Booz & Company. These are consistently rated as the most "prestigious" consulting firms,[1] and are considered to be "pure strategy" firms. With roughly 7,000 employees, BCG is smaller than McKinsey (17,000) and larger than Bain (4,300) and Booz (3,200). BCG is the largest in some countries, such as Germany and Australia, and has a much larger international presence than Bain. BCG also occasionally competes with other firms such as Deloitte, PricewaterhouseCoopers, Accenture, Ernst & Young but less directly. These firms are generally priced significantly lower, and offer a different value proposition, often focused on their ability to implement the recommendations they give. It is common for a company to employ BCG as well as some of these firms, but often for different types of work.
[edit] Offices [edit] Offices in Asia Pacific Auckland founded in 1990
Nagoya founded in 2003
Bangkok founded in 1994
New Delhi founded in 2002
Beijing founded in 2001
Seoul founded in 1994
Hong Kong founded in 1990
Shanghai founded in 1993
Jakarta founded in 1995
Singapore founded in 1995
Kuala Lumpur founded in 1992
Sydney founded in 1990
Melbourne founded in 1990
Taipei founded in 2003
Mumbai founded in 1996
Tokyo founded in 1966
[edit] Offices in Europe and the Middle East Abu Dhabi founded in 2007
Lisbon founded in 1995
Amsterdam founded in 1993
London founded in 1970
Athens founded in 2001
Madrid founded in 1987
Barcelona founded in 2002
Milan founded in 1986
Berlin founded in 1999
Moscow founded in 1994
Brussels founded in 1993 Budapest founded in 1997
Munich founded in 1975, European headquarters
Cologne founded in 2001
Oslo founded in 1996
Copenhagen founded in 1998
Paris founded in 1972
Dubai founded in 2007
Prague founded in 2004
Düsseldorf founded in 1982
Rome founded in 2001
Frankfurt founded in 1991
Stockholm founded in 1988
Hamburg founded in 1994
Stuttgart founded in 1997
Helsinki founded in 1995 Istanbul founded in 2003 closed in 2005 Kiev founded in 2007
Vienna founded in 1997 Warsaw founded in 1997 Zürich founded in 1989
[edit] Offices in the Americas Atlanta founded in 1995 Boston founded in 1963, Global Headquarters Buenos Aires founded in 1995 Chicago founded in 1979 Dallas founded in 1994 Detroit founded in 2005 Houston founded in 2003 Los Angeles founded in 1982 Mexico City founded in 1998 Miami founded in 2003
Minneapolis founded in 2007 Monterrey founded in 1993 New Jersey founded in 2006 New York founded in 1984 Philadelphia founded in 2007 San Francisco founded in 1974 Santiago founded in 2002 São Paulo founded in 1997 Toronto founded in 1993 Washington, D.C. founded in 1996
[edit] Companies founded by current and former employees Finance •
Bain Capital
•
Charlesbank Capital Partners
•
Hermitage Capital Management
•
Paulson & Co
•
Pegasus Capital Advisors
Non-profit •
Ripple
•
Sutton Trust
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