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As everyone knows, it’s not so easy to simply rank all the firms. To do this well, I have to split out the firms into different groups and the type of work they do. One needs to try to make a like for like comparison.
1 – Strategy and Operations firms use the MECE type approach to advise on strategy and operations. McKinsey does a lot of operations consulting. Therefore, do not confuse operations consulting with implementation. Operations’ consulting is about understanding how to manage an operation to extract value. Therefore a similar data intensive process is used, yet different problems are solved.
2 – Implementation is taking the strategy and operations recommendations and embedding it in a company. This is usually tough work where the firm needs to work with the client to entrench the advice and bank the business case.
3 – Then there is technology consulting. For technology strategy, McKinsey/Bain/BCG will still be called up. For Technology implementation Accenture will lead the pack.
The last thing you want to do is avoid taking a snapshot. You want to look for the broad trends. So, a firm like Monitor may be at a level below Mckinsey/Bain/BCG. Roland Berger is also at this level. However, given the quality of the work, hiring decisions, management decisions and client roster, Roland Berger is on an upward trend and Monitor is going down.
The last important factor to consider is whether the firm is one partnership or a federation of independent practices. Single partnership firms like McKinsey/Bain/BCG are tightly controlled at the core. Quality control, hiring, performance management and other practices are standardized. Single partnership firms are always the top consulting firms. Federations like Deloitte pose a problem. For example, if the Greek partners are independent and unwilling to hire the best people, invest in training and build a proper consulting team, there is nothing Deloitte central can do. Each partnership is legally separated. These firms are never the top performers.
Related to this, the federated consulting firms will have pockets of excellence, areas of very bad quality and this creates an average average.
With that in mind, this is my list:
Top Strategy Advisors:
1. McKinsey
2. Bain
3. BCG
Rising Strategy Advisors:
1. Roland Berger
2. Booz
3. Marakon
Fading Strategy Advisors
1. LEK
2. Monitor
3. Oliver Wyman
4. Deloitte Consulting
Top Operations Advisors:
1. McKinsey
2. Bain
3. AT Kearney
Top Implementation Firms
1. AT Kearney
2. Deloitte
3. PWC
4. E&Y
5. KPMG
6. Accenture
7. IBM
Fading Implementation Firms
1. Cap Gemini
Top Technology and Systems Implementation Firms
1. Accenture
2. IBM
3. Deloitte
4. Cap Gemini
Interesting article and interesting, segmentation of the consulting landscape. I believe this is really a snapshot of the business consulting industry, circa 2004 (at best) and disregards the market forces that are drastically stirring up the traditional ecosystem.
Let me address the above starting with your assessment of Accenture, from a perspective of a consulting from its Management Consulting practice. I acknowledge your perspective of Accenture at large. In revenues and headcounts, Accenture is indeed an “Implementation” firm. However, Accenture has THE largest headcount of Management Consultants, period (+16k consultants). It indeed does exactly what the MBBs do in the Strategy and Ops space, and it competes with them daily (on much more than just price). I have worked on engagements in which we’ve won strategy work over McKinsey / Bain / BCG et al, on core issues such as growth and product innovation (for +100BB telcos clients for example). We have issue trees on every engagement and definitely do Hypothesis based problem solving; however, we prefer issue-based problem solving (we don’t have a valid hypothesis on week 1 of an engagement to test – that’s just arrogant).
We may not have the brand recognition of an MBB for Management Consulting, but we are eating their lunch every day of the week. Accenture Management Consulting is increasingly becoming a credible alternative to the MBBs (and I’m not acknowledging the Roland Bergers, Booz & Co’s, LEKs and Markanons as credible equivalents to the MBBs – my personal opinion is that these firms are acquisition targets of a rapidly consolidating landscape). To readers of this article, please be advised that the consulting industry is rapidly morphing – aside from the gold standard strategy firms, stand-alone strat houses may no longer be viable as most large buyers of consulting services are bringing in the core stuff in house (most Fortune 100 firms are growing / maturing their Corp Strategy / Corp Dev departments).
Lastly, here’s what IDC has to say about Accenture in a 2012 Competitive Analysis of Business Consulting providers (firms included in the report include McK, BCG, et al)
*****
“Worldwide, Accenture is seen as among the most capable consulting firms at
challenging corporate culture, delivering innovation in the project, and leveraging
global resources. Accenture is also seen as among the most capable at providing a
full spectrum of business consulting services.
Additionally, Accenture is seen as among the most capable at helping clients create a
more effective business and drive innovation.
Accenture is seen as among the most capable at helping enterprises comply with new
or existing regulations (not a focus of Accenture’s consulting practices), and the
company is seen as better than many of its peers at helping clients manage risk.
Accenture is also seen as better than many of its peers at helping clients identify and
implement options for growth.”
*****
I’m not a fan boy of my employer (as much as I’ve given you evidence otherwise), but be advised that times they say are a changing!
With the greatest respect, you are welcome to your opinion, but you are wrong.
This is not a circa 2004 survey and responding to all your marketing points will take too long.
Culture counts for a lot and they are different among the firms.
Michael,
I will quote one of your famous lines here:
“Both Singapore and Brazil have a national football team. They claim to do the same things, use the same techniques, learn from the same playbooks and do the same things. Yet, we can agree they play different football.”
That is Accenture and McKinsey.
Vijay.
Just wondering whether there is a more explanatory note other than that given in the introduction, on what was considered to be Implementation. In particular, what data was used to place A.T. Kearney in the Implementation work sector? As far as I was aware they are mainly an operations and strategy firm.
We have published many, many articles and notes on the differences between operations, strategy and implementation. You should look them up. In the section for our case candidates we would have much more videos on this. Basically, operations and strategy use the same skills sets. Heavy analyses and focus on executive level interaction. That explains why BBM can do them both. Implementation requires less analyses and a greater emphasis on working with the client, basically partnering with low level employees, to get a result. The hours worked, tools used etc are all different. Not the domain of BBM.
“In particular, what data was used to place A.T. Kearney in the Implementation work sector?” – I do not understand this question.
Question about IBM and PwC. I was wondering why IBM is ranked so far behind PwC for implementation when PwC sold its consulting arm to IBM in 2002 and only began regrouping more recently. What was the rationale for that? What has PwC done in recent years that would warrant it being ranked higher than the experienced consultants it sold off to IBM in 2002?
John – PWC has a strong remaining consulting practice and retained many of their top corporate finance team even when they sold. IBM does a lot of technology implementation and we discounted heavily for this.
Hey guys,
obviously there is no ex-Capgemini consultant with you. However, I would expect you, as former consultants, to still live up to the high quality standards found in consulting companies and double check all the names and make sure you are consistent in their use. Capgemini is written as one word unless they changed it recently.
Keep it up,
Stephan
Hi Stephan,
Actually there is – but your comment is still noted.
Michael
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