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INPUT Research Bulletin A Publication from INPUT’S Business Integration Programme - Europe Voi. V, No. 22 December 1994 Management Senior Consultants Migrate Business Integrator’s increasing requirement profile personnel from Big Six management for business consulting skills has lead to a consultancies to vendors of business period of intensive recruitment from audit- integration (BI) services, as summarised in based management consultants. Exhibit 1. However, as Digital Equipment Corporation’s Business consulting skills have been highly recent experience has demonstrated, this sought for some time by equipment policy produces serious challenges in manufacturers, system integrators, and attempting to forge a new enterprise-wide software houses. culture from the disparate styles of new However, these moves suggest that BI aggressive, high-profile recruits. vendors are pursuing a more strategic agenda INPUT believe that those vendors who can than the occasional tactical hire of a suitable, negotiate this period of change successfully available consultant. will be subsequently well positioned to: Perhaps the most high profile of these recent • Clearly differentiate their reshaped and moves has been that of John Pendleburys to enhanced service offering in the EDS. Pendlebury, a long-term executive & marketplace partner at Coopers Lybrand, has been EDS brought in by to run its European • Gain leverage from their own experience consulting practice, which has grown over the of change in future client engagements. last nine months to around 400 people. industry Figures on the Move Pendlebury has already been followed by a number of less senior, but highly experienced, Recent months have witnessed a noticeable consultants from Coopers’ IT consulting and significant trend in the movement of high division. ©1994 by INPLfT. Reproduction prohibited. BIPR-E Exhibit 1 Senior Management Consultant Migration Paths 9 Source: INPUT These European developments are a part of a Coster has recently hired another senior worldwide development. EDS have also made Coopers partner, Winston Muktarsingh, and important hires from Andersen Consulting, has been active in making other senior hires McKinsey, and Arthur D. Little (ADL). Bryam from PA Consulting, Ernst & Young, and Johnston from Andersens has been recruited Price Waterhouse, to support the to run EDS’s Asia Pacific interests; Andrew 'Customerize' initiative, which is now the Power, ex-McKinsey, is establishing a market- foundation stone of the delivery of all leading vertical presence in healthcare and business integration services. ADL insurance; two dozen aerospace industry consultants have also recently been recruited. Other B1 vendors, such as ICL and SHL Sytemhouse, are also examining opportunities EDS’ change in management and business re- to undertake similar recruitment activity; ICL engineering competencies are headed by ex- as part of an overall re-assessment of skills Gemini Consulting partners. Communications requirements wdthin their professional & SHL is run by an ex-Deloitte Touche partner, services operations, and as part of a and the consumer goods practice by a former strategic movement to substantially expand senior Price Waterhouse partner. their European business. These developments at EDS are echoed by The Resulting Culture Clash those at Unisys where the ex-head of DEC Coopers’ consulting operations, Malcolm Recent developments at provide perhaps Coster, is now running Unisys Europe and the clearest evidence that the strategic vision SHL Africa. EDS, Unisys, ICL, and are pursuing is awash with potential tactical problems. 2 ©1994 by INPUT. Reproduction prohibited. INPUT Research Bulletin DEC Gresh Brebach’s departure from in June The large management consultancies have 1994 illustrates that the complex and often themselves undergone much of the pain of widely misunderstood issue of culture is of cultural change, driven by the pre- crucial significance in the transformation of recessionary drive for market share, which KPMG organisations. Issues of culture are at the led to the merger that formed Peat crux of all people businesses. Marwick, and the mega merger between Coopers & Lybrand and Deloitte Haskins & Brebach, who was hired in April 1993 (see Sells. KPMG’s experience and that at the now Business Integration Programme - Europe, renamed Coopers & Lybrand (after a brief Research Bulletin Volume W, Number 10) to time as Coopers & Lybrand Deloitte) run dec’s worldwide systems integration and demonstrates that there are many casualties professional services business, was an of often bitter and intense restructuring DEC extremely strong candidate to push attempts to derive a new culture from two through the painful transition of becoming a existing ones. predominately services orientated company. Whether the moves made by EDS and Unisys Ex-Andersen and McKinsey, Brebach’s are successful remains to be seen. EDS will recruitment signalled DEC’s commitment to for some time be a melting pot of the aim of helping their clients to utilise management consultancy cultures. Either a technology for the sake of the business, hybrid EDS culture, distinct, robust, and rather than for the sake of utilising marketable, will emerge, or the differences technology. will lead to a difficult period of internal struggle in which focus on the marketplace The fact that Brebach was unsuccessful in will be undermined and the very advantages fulfilling his remit is illustrative of the power of the exercise will be lost. of ingrained culture, and the difficulty of New changing it, even where there is senior Cultures will Offer executive commitment. Marketplace Opportunities Change in any sphere, be it operational or Success in this period will offer BI vendors a strategic, is a long-term exercise which brings clear differentiation opportunity in the dislocation, pain and self-doubt. Changing marketplace, as shown in Exhibit 2. culture increases these experiences by a factor of ten. 3 ©1994 by INPUT. Reproduction prohibited. Exhibit 2 Current and Future Positioning of Bl Vendors Skill Profiles strong A Technical Skills ? Weak Source: INPUT Technical“based BI verxdors, with enhanced increasingly business-conscious environment, and revamped business consulting skills, but an environment that is still technology especially in the soft areas of change driven. management, will be well positioned to help their clients introduce and manage new The other key gain vendors will achieve is the emerging technologies and management ability to leverage, from reference through to approaches. delivery, their own experience of undergoing and benefiting from change. The market proposition of business enabling technology will be a powerful message in the This Research Bulletin is issued as part of INPUT'S Business Integration Programme. If you have any questions or comments on this bulletin, please call your local INPUT organisation or Ben Pring at: WIX INPUT, 17 Hill Street, London, 7FB, +44(0)71 493 9335. 4 ©1994 by INPUT. Reproduction prohibited.