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

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Presentation on theme: "Best in France Prof. Michael Segalla Christy Barlow  Jean-Louis Brunin Nathalie Gorin  Daniel Pham  Ahmad Tabbara."— Presentation transcript:

1 Best in France Prof. 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 2005

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

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 2005

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 2005,

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 2005

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$ Sources: VAULT Guide 2005, *) Estimated

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 Brand Importance of Reputation Critical for sales …

20 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

21 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

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 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

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 

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 References  Marcy Lerner, “Vault Guide to the Top 50 Management and Strategy Consulting Firms 2005”      

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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