**Author: Suet Ying Chow, Kristina Proskurina, Cloud Walker** This workshop was held by the three authors (as mentioned above) at Berlin School of Economics and Law. Market information of European consulting industry was introduced and the market was analyzed with using Porter's 5 forces model. Furthermore, in order to have deeper understanding on the demands and needs from both employee and customer's perspective, comparison of big and small consultancy companies was conducted and results were shown respectively. In addition, the two highlights of the workshop are interaction session with the audience and conducting interview with Mr. Andreas Dippe who is the consultant in one of the law consultancies in Berlin. To conclude, this workshop got the very satisfactory responses from the audiences.

1. STRATEGIC MANAGEMENT WORKSHOP
„EUROPEAN CONSULTING INDUSTRY“
Prepared by Cloud Walker, Suet Ying Chow & Kristina Proskurina
Berlin School of Economics and Law, 2017

2. AGENDA:
1. What is consulting and what are the most popular areas of
consulting in Europe.
2. Porter‘s 5 forces analysis of a big consulting company.
3. Challenges in the consulting industry and different solutions.
4. Comparative analysis of big and boutique consulting
companies.
5. Video with a professional consultant from Derra, Meyer &
Partner Rechtsanwälte PartGmbB.
2

3. WHAT IS CONSULTING AND WHY IS
IT USED?
“Consulting is the process by which an
individual or a firm assists a client to achieve
some stated outcome.”
E. Biech, The Business of Consulting (San Francisco: Jossey-
Bass Pfeiffer, 1999).
The main reasons to hire an external
consultant:
 special projects;
 strategic planning;
 surge support (temporary,
permanent help, consultant on call);
 audit Support/Prep/Mitigation
Source: Ryan Burke, 2015 “COMPELLING REASONS TO HIRE A CONSULTANT”
[Online] Available at
http://read.nxtbook.com/ncma/contractmanagement/june2015/ourchatwithanitabales_fe
at.html [Accessed 03 June 2017]. 3

4. WHAT IS CONSULTING AND WHY IS
IT USED?
“Consultants are people who, when asked,
agree to use their expertise to help clients
narrow the gap between what they now
have and what they want or need.”
G.M. Bellman, The Consultant's Calling
(San Francisco: Jossey-Bass Inc., 1990).
Clients are considering putting some portion of
this success on the line with you, a consultant.
They are considering giving you powers in
their organization that they ordinarily reserve
for themselves and a few trusted others.
G.M. Bellman, The Consultant's Calling (San
Francisco: Jossey-Bass Inc., 1990). 4

5. EUROPEAN CONSULTING MARKET
The most popular types of consulting services:
Operations (McKinsey & Company, Deloitte
Consulting)
Legal & Finance (Ernst & Young, PWC, KPMG)
Strategy (Boston Consulting Group, Deloitte
Consulting, McKinsey & Company, PWC)
Technology (Capgemini, Accenture, IBM Global
Services)
Management (A.T. Kearney, Accenture, Bain &
Company)
HR (Oliver Wyman, Deloitte Consulting) “Consulting explores what you can do to
help the organization move from where it
is to where it wants (or needs) to be.”
G.M. Bellman, The Consultant's Calling
(San Francisco: Jossey-Bass Inc., 1990).Source: Anonymous, 2016 “Consulting Industry” [Online]
Available at http://www.consultancy.uk/consulting-industry/europe [Accessed 03 June 2017]. 5

6. EUROPEAN CONSULTING MARKET
Source: Anonymous, 2016 “Consulting Industry” [Online]
Available at http://www.consultancy.uk/consulting-industry/europe [Accessed 06 June 2017].
6

7. PORTERS 5 FORCES ANALYSIS FOR A BIG
STRATEGY CONSULTING COMPANY
Competitive Rivalry
MEDIUM
There are not a lot of companies
such as McKinsey, BCG,
Delloitte, which could be defined
as big consulting companies.
Emmerich, G., 2014. CLEVERISM. Porters Five Forces Model Strategy Framework.. [Online] Available at: https://www.cleverism.com/porters-five-forces-model-
strategy-framework/ [Accessed 06 June 2017].
7
7

8. THE THREATS FOR THE CONSULTING INDUSTRY
Source: Clayton M. Christensen, Dina Wang Derek van Bever., 2013. Consulting
on the Cusp of Disruption, s.l.: Harvard Business Review. 8

9. CONSULTANCIES ARE SHIFTING FROM INTEGRATED
SOLUTION SHOPS TO MODULAR PROVIDERS
Source: Clayton M. Christensen, Dina Wang Derek van Bever., 2013. Consulting
on the Cusp of Disruption, s.l.: Harvard Business Review. 9

10. ACQUISITIONS OF DIGITAL CONSULTING
COMPANIES, CREATING NEW DEPARTMENTS
Source: Desai, F., 2016. Forbes. The Rise Of Digital Consultancies..
[Online]
Available at: https://www.forbes.com/sites/falgunidesai/2016/03/23/the-
rise-of-digital-consultancies/#1c9d13db6a79
[Accessed 04 June 2017]. 10

11. BIG VS. BOUTIQUE. COMPARATIVE ANALYSIS OF CONSULTING
COMPANIES. MBB – THE BIG 3.
Source: Chin, E., 2013. The MBB Trio In Strategy Consulting: A Tale Of Three Kingdoms. [Online] Available at:
https://web.archive.org/web/20141022145029/http://www.beatoncapital.com/2013/08/the-mbb-trio-in-strategy-consulting-a-tale-of-three-kingdoms/. Accessed June 11, 2017.11

12. BIG VS. BOUTIQUE. COMPARATIVE ANALYSIS OF CONSULTING
COMPANIES. BOUTIQUE CONSULTING COMPANIES
Source: Anonymous, 2017. GEP. MIND. [Online] Available at: https://www.gep.com/mind/blog/advent-boutique-consulting-firms
[Accessed 11 June 2017].
 Growing demand in developed nations - North America, Europe,
DACH
 Growing at 6.1% to 2.8 billion (Feb, 2017)
 Strategy-focused most sought after:
Roland-Berger (Strategy) - revenue: $560 million
Simon-Kutcher (Sales, Marketing, Strategy) - revenue tripled in last decade
 Risk & Regulatory Compliance consulting - fastest growing at 8.9% to $707 million
UK (Similar Trend)
 Putnam Associates & Clearview Healthcare Partners - Biopharmaceutical & Healthcare
 Brattle Group & Eagle Hill Consulting - Corporate Financial, Regulatory and Compliance
Europe
 Insight Sourcing Group - Procurement and Supply Chain Expertise Europe
 Operations & Supply Chain - largest growth 10.9%
12

13. BIG VS. BOUTIQUE. EMPLOYEE PERSPECTIVE
Source: Anonymous, 2015. Reddit. [Online]
Available at: https://www.reddit.com/r/consulting/comments/2a5djo/boutique_mc_firms_vs_big_34/ [Accessed 11 June 2017].
Boutique Big
Off-cycle recruitment Fixed cycle recruitment
Choose area of your interest Less say
Visibility - 1 in 20, easy to move
up
Less visibility - 1 in 20,000
Less travel, less bureaucracy More travel, more bureaucracy
Lower Compensation Higher Compensation
Brand: Average Brand: Prestige - better on CV
13

14. BIG VS. BOUTIQUE. CLIENT‘S PERSPECTIVE
Source: Anonymous, 2017. Consulting Researcher. When to choose niche vs. big consulting firm?. [Online]
Available at: https://www.consultingsearcher.com/eng/Cardea-competence-centre/Selection-of-consultants/Small-vs.-Big-Consulting-Firm [Accessed 11 June 2017].
Big
Reputation & risk-
adjusted value
You never go wrong -
Professionalism,
Quality, Reputation
Scope & reach International & global
Expert pool Top talent
Boutique
Focus &
Specialization
In-depth expertise on
specific industries
Pragmatism &
Implementation
No “Pyramid” - staff
more senior
consultants to clients
projects
Flexibility Flexible in providing
services targeted to
clients needs
14

15. BIG VS. BOUTIQUE. GROWING PREFERENCE OF BOUTIQUE
Functional and Vertical Expertise -
meeting clients expectation better
Example Areas: Customer
Satisfaction, Sales, Biopharma,
Finance, Manufacturing
Headed by specialists with
entrepreneurial spirit
Hire passionate domain experts in
comparison to generalists
Lesser employee attrition Assigned greater responsibilities and
more job satisfaction - long term
relationship between clients and
consultants
Alternative pricing models Value based pricing as compared to
per diem pricing
Reaction from Big consulting firms Offer suite of consulting services
across domains to be cost-efficient
Source: Anonymous, 2017. GEP. MIND. [Online] Available at: https://www.gep.com/mind/blog/advent-boutique-consulting-firms
[Accessed 11 June 2017].
15

16. VIDEO WITH A PROFESSIONAL CONSULTANT FROM DERRA, MEYER
& PARTNER RECHTSANWÄLTE PARTGMBB
Rechtsanwalt
Name: Mr. Andreas Dippe
E-Mail: icondmp@derra-b.de
16

17. CONCLUSIONS
Consulting should
be individual,
intelligent and
highly
professional
Consulting
companies nowdays
face various
difficulties in their
operations…
´Boutique consulting
companies in
comparison with big
ones have advantages
and disadvantages
Implementation
of special high
tech
technologies is
the most
current trend
in consulting 17

18. QUESTIONS FOR INTERACTION SESSION
 You are a medium consulting company and you don’t have
capacities to handle clients’ questions. What are your
options?
 You are a big consulting company, and you are losing
employees. What will you do?
 You are a medium consulting firm, and you have strong
competitors. How can you stand out of the crowd?
 You are a boutique consulting company. What strategy will
you use to attract more clients?
 You are a medium consulting company, and your client is
not satisfied with your services, and spreading the bad
word. What are you going to do?
18

19. YOUR QUESTIONS AND COMMENTS
ARE VERY WELCOME!
THANK YOU FOR YOUR ATTENTION!
19
OUR TEAM PHOTO WILL BE HERE!!!!