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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 l.jpg

Best in FranceProf. Michael Segalla

Christy Barlow Jean-Louis Brunin

Nathalie Gorin  Daniel Pham  Ahmad Tabbara


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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



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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


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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


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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


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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


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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


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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


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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


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In-depth analysis of Roland Berger


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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


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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


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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



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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


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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


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Constraints in France

  • Principle constraints Roland Berger experienced coming to France

    • Building a reputation

    • Initial recruitment


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Building the BrandImportance of Reputation

  • Critical for sales


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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


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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


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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


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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


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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


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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


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Recruitment Today

  • Turnover approximately 8%

    • Low compared to other consulting firms

    • Trends depending on economy

  • Currently experiencing high growth

    • Target: 40 consultants in 2005


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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


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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


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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


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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


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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


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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


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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


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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)


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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



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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



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We Thank

  • Sébastien Chanel

    • Senior Project Manager

    • 11, rue de Prony, 75017 Paris

    • +33 1 53 67 03 20

    • sebastien_chanel@fr.rolandberger.com


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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



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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



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Progression

  • Progression is slower today than in the past

  • Example: Junior consultant

    • 1996: 14- 16 months

    • 1999: 9 months

    • 2005: 2 years


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Culture Shift

  • Initially entrepreneurial

  • Need to become more structural