1. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007 G LOBA L C ONSULTING L EADERS S YMPOSIUM December 5-7, 2007

2. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

3. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007 History of Globalization United States Agriculture, Mining Activity Year Trade as % of Output % Economic Activity % Employment 1900 17.0 20.8 40.2 1910 14.1 20.3 34.4 1920 23.8 18.5 30.4 1930 11.0 12.6 28.4 1940 9.0 12.0 19.2 1960 10.1 7.8 9.1 Decline in globalization corresponds to decline in commodity production & rise of the complex manufacturing Industry composition is critical to impact of globalization

4. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

5. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007 Trends in Employment – United States Year Agriculture, Manufacturing Services mining 1960 8.8 26.1 65.1 1970 5.1 24.8 70.1 1980 4.4 22.1 73.5 1990 3.3 18.0 78.7 1998 3.0 15.8 81.2

6. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

7. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

8. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

9. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

10. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007 Productivity Growth In the Services (Basic Issues) *Growth in Achieved Potential far outweighs growth in Potential as a source of Productivity Growth* EVIDENCE - Large differences among units in Best vs. Average practice - Episodic nature of productivity growth/ cost reduction (no gain -> high gain -> slippage) - Higher vs. Lower Level gaps in Productivity growth - Experience in manufacturing - Special instances of potential revealed - Case studies (no significant labor, capital, R & D inputs)

11. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

12. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

13. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

14. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

15. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

16. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

17. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

18. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

19. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

20. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

21. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

22. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

23. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

24. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

25. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

26. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007 Managerial, Professional 1983 2001 Change Managers, Executives 10,772 20,338 +89% Teachers, Librarians 4,368 6,065 +39% Nurses, Health Profiles 1,900 3,052 +61% Scientists 820 2,685 +227% Writers, Artists, Entertainers 1,675 2,336 +39% Architects, Engineers 1,675 2,336 +39% Social Worker, Soc. Sci Works 1,092 1,903 +72% Doctors, Dentists 735 1,090 + 48% Lawyers 651 966 +48% Total 23,592 41,894 +78%

27. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

28. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007

29. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007 An Aide on that Giant Sucking Sound of Jobs Going to Mexico Manufacturing Jobs (% of changes 1980-91) Consumption of Manufacturing in U.S. +31% Production of Manufactures in U.S. +25% Lose of demand to Net Imports 6% Production of Manufacturers in U.S. +25% Manufacturing employment in U.S. (9%) Loss of jobs to Productivity Growth 34% Fraction of Jobs in Manufacturing Lost Overseas: 6% / (34% + 6%)= 15%

30. GLOBAL CONSULTING LEADERS SYMPOSIUM December 5-7, 2007