In the News

“India’s Cities Grow Fast, Develop Slowly”
In an August 3, 2010 report by Reuters News, Booz & Company Principal Ashish Sharma (India) said for India to develop its economy, Indian leaders must focus on developing the infrastructure of its largest cities. “There cannot be high economic growth without a high degree of urbanization,” said Sharma. “There is a clear, positive correlation between the GDP of a country and its degree of urbanization.” Historically, India’s government leaders and policy-makers have focused on villages, while urbanization has largely been a result of existing cities expanding economically and demographically, rather than anything planned, Sharma said. For instance, the lack of affordable housing means India has the largest urban slum population in Asia, with Mumbai boasting some of the world’s priciest real estate with some 60 percent of its residents homeless or living in slums. Meantime, said Sharma, foreign firms entering India or looking to expand are scouting locations away from Mumbai and Delhi because of poor livability, which drives up costs. “Our cities are not the magnets that Singapore, Dubai or even Shanghai are,” Sharma added. “Anecdotally, it’s very clear we’re losing our edge to these cities because of poor infrastructure.”

“Die größte Gefahr sind Händler die zu viel riskieren (The Biggest Dangers are Dealers Who Risk Too Much)”
In the August 3, 2010 issue of Die Welt, Booz & Company CEO Shumeet Banerji said the keys to economic recovery are providing higher incentives for bank supervisors and stricter regulations for bonus payments. “We need a stronger banking supervision in the micro-perspective,” said Banerji. “Supervisors must intervene, for example, if a dealer is able to reap high profits with infinite risk, but is not penalized for losses. We must monitor the incentive structures in far greater detail than before. It is not enough to extend the holding period for shares received by a manager as compensation.” So who failed in the recent global slowdown? Both bankers and regulators, Banerji added. To get the economy moving again, “if the boards of the banks do not (act),” he said, “regulators must ensure that the systems are changing.” Banerji also spoke to Handlesblatt in the August 3, 2010 article, “Falsche Anreize haben die Krise geschürt (Wrong Incentives Fueled the Crisis”).

“Unleashing the Power of the Informal Organization”
In the August 1, 2010 issue of HR Executive Magazine, Booz & Company’s August Vlak, Scott Thomas and Efram Lebovits wrote that companies returning to long-term performance and good health “will need to embrace both formal and informal structures” present in every organization. To do so, “anxieties must be counter-balanced with more positive emotions, and it is up to HR leaders to support and guide managers to engage employees in the turnaround,” the Booz & Company authors added. So in addition to formal organizational mechanisms, they wrote that companies should consider using a four-pronged attack based on: instilling pride in the organization, developing values behind which everyone can rally, capitalizing on informal organizational networks (especially central “hubs”) to accelerate the rate of change and make the changes “viral,” and instilling pride in the work itself. “By harnessing the untapped potential in the informal organization, in conjunction with traditional formal structures, companies can revitalize their workforces and put themselves in position to emerge stronger than ever,” they add.

“Roadmap To Mobile”
In the July 29, 2010 issue of ArabianBusiness.com, Booz & Company Principal Hilal Halaoui said the Middle East’s ideal television network would be a hybrid model of DVB-H in conjunction with satellite based SDMB technology. “There needs to be strong content distributed through tailored and rich channels,” he said. “Practically, subscribers to such a mobile TV service, would like to benefit from roaming capabilities, where they can view their favorite channels even when they are abroad.” Whereas mobile TV has taken contrasting paths in Europe and the U.S. in terms of technology and business models, a complex business model and an even more complex technical backdrop have made mobile TV a difficult format for telcos and broadcasters alike, while in the Middle East, there have been only a handful of roll-outs with limited success. “To secure their own position, (telecom) operators will need to leverage their key assets: their customer relationships, customer analytics, investment capabilities, and infrastructure,” added Booz & Company Principal Hadi Raad. “The mounting business generated by applications is more than just another growth opportunity. It is an imperative, a necessary component of the future of the business, in which operators must actively participate in order to thrive and not just become utility-like pipe operators.”

“The War Of The Wards”
In the July 22, 2010 issue of The Economist, Booz & Company Senior Partner Gary Ahlquist said as a growing number of investors seek to purchase hospitals around the world, they are challenged somewhat by a supply of top-notch hospitals that is rising only slowly. Triggering the big trend is a global demand for high-quality health care as rich countries age and developing countries grow more affluent. Underscoring the trend is a flurry of deals of late. In July, TPG and the Carlyle Group won a takeover battle for Healthscope, an Australian hospital chain. And in June, Vanguard Health Systems completed its acquisition of the Detroit Medical Center’s hospitals. In March, Cerberus Capital Management acquired Caritas Christi, a non-profit chain of hospitals based in Boston.

“Booming Mac Sales Drive Apple’s Best-Ever Quarter”
On July 20, 2010 on CNNMoney.com, Booz & Company Partner Barry Jaruzelski said Apple’s most recent quarterly earnings, its best results ever, make the Cupertino, Calif.-based company, “a $60 billion steamroller.” Jaruzelski was referring to Apple’s projection of annual sales for the year, adding that the “the only surprise would be if it there wasn’t a healthy exceeding of expectations.” Record Macintosh and lighting-fast iPad sales triggered the quarterly business at Apple; rising to a record $15.7 billion or 61 percent higher than Apple’s sales from the quarter last year. So with customers spending more on iPhones, Macs, iPods and iPads than on Windows licenses, Microsoft Office and Xboxes, is Apple set to dethrone Microsoft? And are Apple and Microsoft even really rivals these days? “The media loves to tell this story, but I don’t think it’s a particularly relevant comparison,” Jaruzelski said July 21, 2010 to CNNMoney.com. “In the past seven or eight years, Apple went from a computer company to a cutting-edge consumer electronics business, and Microsoft is a platform software business.” Jaruzelski also spoke July 21, 2010 to NDTV.com about Apple’s quarterly earnings.

“At Last, Women Are Bridging the Boardroom Gap”
In the July 8, 2010 issue of The Herald Sun of Melbourne, Booz & Company Partner Vanessa Wallace (Australia) said her election to the Board of Directors of Wesfarmers “shows that if you become really good at something ... these opportunities are available to the average Australian.” The newspaper reported of the 107 appointments to Australian Stock Exchange 200 boards since January 1, 2010, only 26 of those directorships have gone to women. The trend contrasts with last year when of the 187 directors appointed, just ten, or five percent, were women, according to research by the Australian Institute of Company Directors. Wallace said her background consulting across a range of sectors made her ideal to direct the diversified group. “I’ve not been a superstar, but I have been a high performer,” said the Sydney-based mother of three sons.

“The Chinese Way”
In its July 3, 2010 review of the new book, The China Strategy: Harnessing the Power of the World’s Fastest-growing Economy, The Financial Times wrote that the author, Booz & Company Partner Edward Tse (Greater China), “clearly knows China well and has a hundred interesting facts and opinions at his fingertips.” The review details Tse’s thesis that successful multinationals must see China as a fully integrated part of their global operations, “not just a source of cheap labor or a mouth-watering market.” And it focuses on Tse’s highly readable excursion to a convenience store, which he marshals as evidence that China is even more open to outside products and influences than the U.S. “Accompanying the western products Coke, Pepsi and Schweppes there are Japanese soft drinks made by Suntory, Kirin and Sapporo, Taiwanese flavors under the Uni-President label, and Hong Kong brands such as Vitasoy,” the reviewer noted. “Alongside the bottled waters, colas, and beers are teas, coffees, and Soya milk drinks, plus ones made from fruits unfamiliar to most foreigners ... Indeed, here is the brave new world of plenty.”

“Gas Glut Hastens Demise of Coal”
An article in the June 27, 2010 issue of The Sunday Times (UK) detailed a Booz & Company prediction that a five-year gas glut could speed the death of coal-fired power in Great Britain and aid the recovery by keeping a lid on household energy prices. According to the Booz & Company report, “The Next Cycle: Gas Markets Beyond the Recession,” spot-market prices are likely to remain under pressure for some time while contract prices in European and Asian markets become more structural. In the second half of the decade, the report added, gas is likely to replace more carbon-intensive fuels such as oil and coal in power production, which will lead to price rises. The economic recession is most responsible for an unprecedented reduction in demand during the last two years, and that, combined with a faster than expected expansion in unconventional gas in the U.S., resulted in a global oversupply which sent spot gas prices sharply lower, the Booz & Company report said. An analysis of worldwide supply-and-demand dynamics showed that markets could remain in oversupply until at least the middle of this decade.

“Frugal Behavior Will Be Norm for Years to Come”
In its June 14, 2010 issue, MMR Magazine, Booz & Company Partner Matthew Egol (North America) says that American consumer behavior is now distinguished by a “new frugality” in the wake of the recession and two consecutive years of declining per capita income. “Frugal behavior is now considered trendy by many shoppers, and will continue for years to come,” Egol said, “In this changed environment, marketers need to develop deeper insights into shopper attitudes and behaviors in order to better align their product, pricing and marketing communication strategies.” Egol was responding to the findings of Booz & Company survey, which based on an October 2009 survey of 2,000 consumers, described pervasive retrenchment in consumer spending across numerous categories and suggested that heightened frugality may have become a learned behavior. The trends have implications for marketers as well as shoppers, said Booz & Company Partner Andrew Clyde (North America): “As the economy recovers,” he said, “marketers need to better target their strategies to preserve the value of existing brands and avoid destroying value through too blunt a competitive response.”

“Auf zum Beratergipfel (On the Consulting Summit)”
In the June 11, 2010 issue of Die Presse, Booz & Company Principal Angela Dum (Europe) said that scientists and engineers are in demand at the firm because their analytical and technical skills create a clear client advantage. Meantime at Booz & Conmpany, where Dum services as Recruiting Manager for the Austria office, their presence is a major contributor to diversity. “We live diversity in the teams,” says Dum. “Therefore, we want to have different talents as possible in the company. Employees who come from different disciplines bring different approaches, and they add value.” Dum’s comments came after a Booz & Company recruiting event in which the firm hosted high-potential recruits at a Salzburg workshop on e-mobility.

“The Human Side of Business: Traumatized But Ready for Recovery”
In an interview in the June 8, 2010 issue of The Huffington Post, Booz & Company Senior Partner Jon Katzenbach (North America) detailed the importance of a company’s “informal organization,” the bundle of organizational elements often hidden from view but, if harnessed correctly, can help leaders gain a powerful performance boost. “In our years helping leading organizations improve performance, we’ve learned that leaders at all levels have a difficult time with, or don’t realize they need to address, a key avenue to success: balancing two distinct dimensions of human behavior and organizational performance—the ‘formal’ and the ‘informal’ elements,” said Katzenbach, co-author of the new book, Leading Outside the Lines: How to Mobilize the (in)Formal Organization, Energize Your Team, and Get Better Results. The very best leaders, he added, are those who achieve results by successfully balancing the informal with the formal, without having to make tradeoffs. “They get the efficiency of the formal with the creativity of the informal; the focused execution with the responsiveness to new opportunities; the accountability with emotional commitment,” Katzenbach said.

“GCC’s Employment Policies Not Effective: Study Shows”
In the June 7, 2010 issue of Zawya, Hatem Samman, the Chief Economist in Booz & Company’s Ideation Center (Middle East) said the six countries of the Gulf Cooperation Council or GCC (Kuwait, Bahrain, Saudi Arabia, Qatar , the UAE and Oman) must make major changes to tackle the growing dependence on the public sector as the main job creator. “The influx of expatriates to the region since the 1970’s has helped keep some critical industries running, but it has also created problems that cannot be resolved easily, such as threats to cultural identity and heritage,” said Samman, a co-author of the study. Overall, the study recommended taking a holistic approach to tackle various labor challenges, from expanding the economic base and creating additional jobs in strategic sectors in which GCC countries have a competitive advantage and can provide sufficient income for nationals to developing the workforce by reforming the education system and upgrading labor skills to create a generation of skilled nationals to match economic requirements.

“The Coherence Premium”
In the June 2010 issue of Harvard Business Review, Booz & Company Partner Paul Leinwand and Senior Partner Cesare Mainardi (both North America) contended that companies starting from the opposite direction stand to be the real winners in today’s economy. “These rare companies figure out what they’re really good at and develop those capabilities until they’re best-in-class and interlocking,” they wrote. “From there, strategy becomes a matter of aligning the distinctive capabilities system with the right marketplace opportunities.” The article marks another major step in the development of Booz & Company’s strategic doctrine of Capabilities-Driven Strategy (CDS). The team is preparing another book, set for late 2010, on Capabilities-Driven Strategy for Harvard Business Press; which last year published Cut Costs, Grow Stronger.

“Top 25 Consultants 2010: Niko Canner”
In its May/June 2010 issue, Consulting Magazine named Booz & Company Senior Partner Niko Canner (North America) to its list of “Top 25 Consultants” for 2010. Consulting Magazine honored the top consultants for accomplishment in client service and leadership, as well as outstanding achievements in six client industries—healthcare, energy, public sector, technology, retail and financial services. A member of Booz & Company’s Organization & Change Leadership Practice, Canner was recognized for his contributions to leadership, and specifically for heading the integration of Katzenbach into Booz & Company. Recipients of the annual award were selected from the nearly 400 nominations by co-workers, colleagues, clients and C-level executives.

“Teamplayer ersetzen die Charismatiker (Team Player to replace the Charismatic)”
In the May 28, 2010 issue of Wirtschaftsblatt kompakt, Booz & Company Partner Klaus Hölbling (Europe) said that the business world’s CEOs of tomorrow are “team players” and not so much the “charismatic” leaders favored by companies in the past. “A CEO must set the focus on those issues that only he can solve,” Hölbling said. “He must ensure that the right people are on the leadership team, and he must set the direction and move the company forward.” Hölbling was interviewed as part of a lengthy feature about Booz & Company’s 10th-annual study of CEO succession and governance, “CEO Succession 2000-2009: A Decade of Convergence and Compression.” The report analyzed some 3,719 succession events at the world’s largest companies during the last 10 years.

“Cities Need To Spend £15 Trillion On Greening Infrastructure”
In the May 23, 2010 issue of Greenwise Business, Booz & Company Partner Nick Pennell (Europe) said by investing heavily in energy efficient housing construction, low emission vehicle and logistics systems and “green ICT,” cities will be able to reduce CO2 emissions produced by urban infrastructure by up to 50 per cent. “This level of investment generates a realistic chance of actually limiting global warming through to 2050 to less than two degrees Celcius,” said Pennell, the leader of Booz & Company Low Carbon & Sustainability group and a co-author of a new study, “Reinventing The City–Three Prerequisites For Greening Urban Infrastructures.” Booz & Company’s joint study with the World Wildlife Fund Cities said that cities will need to spend £15 trillion on sustainable and green infrastructure over the next 30 years to prevent a disastrous increase in global warming. “Our calculations also show that investments in green ICT infrastructure generally produce a payback quickly and therefore barely result in any additional expense,” Pennell added.

“UK Makes Its Mark On CEO Role”
In the May 17, 2010 issue of the Financial Times, Booz & Company Senior Partner Per-Ola Karlsson (Europe) said that the UK model of splitting the roles of chairman and chief executive is “considered good now”—a new trend indicative of “the globalization of governance.” Karlsson was addressing the findings of Booz & Company’s 10th-annual study of CEO succession and governance, “CEO Succession 2000-2009: A Decade of Convergence and Compression.” The report, co-authored by Karlsson, analyzed some 3,719 succession events at the world’s largest companies during the last 10 years, and found that boards, regardless of country or sector, are converging on the same preferences for hiring insiders and splitting the CEO/Chairman roles. Also, the study found that CEOs were being asked to deliver results in a shorter period of time, according to the survey results. Added Senior Partner Gary Neilson (North America), another study co-author: “The role has really changed; if you are a chief executive, you now have a boss to worry about.”

“When Female Networks Aren’t Enough”
In the May 12, 2010 issue of Harvard Business Review, Booz & Company Senior Partner DeAnne Aguirre and Booz & Company Alliance Partner Sylvia Ann Hewlett wrote that women aspiring to C-suite positions can benefit greatly from a having a sponsor. “More than a mentor, (a sponsor) is someone in a senior position who’s willing to advocate for and facilitate career moves, make introductions to the right people, translate and teach the secret language of success, and most important, ‘use up chips’ for their protégés,” they write. According to research by the Center for Work-Life Policy as part of its “On-Ramps and Off-Ramps Revisited” study, 89 percent of highly qualified women don’t have a sponsor and 68 percent lack mentors. “Forward-thinking companies recognize that these hidden inequities prevent them from identifying and developing potential talent,” Aguirre and Hewlett write. “Rather than leave these strategically significant relationships up to chance, smart employers are becoming matchmakers.”

“Can Technology Make Our Cities Intelligent?”
In the May 11, 2010 issue of The Economic Times, Booz & Company Partner Jai Sinha cited several examples of progressive municipal practices or “green shoots”—areas of major Indian cities in which technology is helping create the “intelligent” city of the future. The City of Ahmedabad, for example, has been generating a Rs 600-700-crore surplus annually through various municipal reforms from creating a slum network where citizens are assured of services for a small fee to efficient solid waste management through composting; waterfront development; and basing slum policy on a partnership model. The examples, says Sinha, are among several recommendations that Booz & Company and the Confederation of Indian Industry (CII) detail in their report on intelligent urbanization.

“Gesucht wird: das beste Wirtschaftsbuch des Jahres” (Wanted: The best economic book of the year)
In the April 16, 2010 issue of Handelsblatt, Booz & Company is listed as a sponsor of Germany’s 2010 Economic Book of the Year Award. An influential panel of business and academic leaders will select the winning book to be awarded in the autumn at the Frankfurter Buchmesse (Frankfurt Book Fair). Nikolaus Pipe earned the 2009 Booz & Company Economic Book of the Year Award for Die große Rezession—Amerika und die Zukunft der Weltwirtschaft (The big recession—America and the Future of the Global Economy), his searing look at the 2008 global downturn. Co-strategic partners of the book award are Handlesblatt and the Frankfurt Book Fair.

“Get Immediate Value From Your New Hire”
In the April 15, 2010 issue of Harvard Business Review, Booz & Company Senior Partner Jon Katzenbach (North America) said that companies can go a long way in helping new managers succeed by helping them to understand an organization’s informal elements. Katzenbach called a lack of cultural adaptation “the hardest area for managers to provide good advice, in part because they are embedded in the culture and not necessarily reflective about it.” Katzenbach, the co-author with Zia Kahn of the book, Leading Outside the Lines: How to Mobilize the (in)formal Organization, Energize Your Team and Get Better Results, noted that “a lot of onboarding focuses on the formal side of the organization and is programmatic.” So helping new hires understand the informal side of the organization, he added, will accelerate their acclimation.

“Early Start For Dearer Childcare”
An article in the April 8, 2010 issue of The Daily Telegraph (Australia) detailed findings of an independent report by Booz & Company that daycare centers in New South Wales (NSW), Australia, would have to hire extra staff to meet new government mandates for the ratio of caregivers to children. Starting in January 2011, licensed center-based and mobile children’s services in NSW will be required to have one caregiver for every four children under the age of 2. Currently childcare centers must have one caregiver for every five children up to 2. The NSW mandates predate the National Quality Standard (NQS) for the centers set to start in January 2012 across Australia. In its report, Booz & Company found that more than one-third of childcare centers across the not-for-profit and commercial sectors were already operating at a 1:4 ratio. Included in its research was an economic analysis to assess the financial impact the 1:4 change would have on NSW families. The report added the new NSW mandates would have a modest cost impact of between $1 and $4 per child per day.

“A Fresh Approach To Implement Offshore Technology Innovation”
In a bylined piece in the April 2010 edition of Offshore Magazine, Booz & Company Partner Glenn Klimchuk, and Principals Pedro Caruso and Nate Clark (all North America) detailed how the offshore oil industry should “start with a new, next generation mode—‘a new normal’” to encourage collaboration among a new generation of engineers who have grown up on the Internet and are comfortable using all types of collaboration tools and interpersonal connections. That would bring technologists and R&D leaders together in the board room with accountants, engineers, and management to create create a business model in which knowledge sharing prevails ineffective, corporate-driven, top-down thinking is discouraged. “As an industry, perhaps our single biggest challenge is how to build a new multi-dimensional engagement model,” the Booz & Company co-authors wrote. “We need to form a broad, cohesive industry delegation that unifies operators, suppliers, academia, and government, and rallies around our common challenges.” The model, they add, “needs to include more integrated management processes and systems across our boundaries.”

“China Not Just Export Base, Says AmCham”
In the March 31, 2010 issue of Shanghai Daily, Booz & Company Partner Joni Bessler (China) said the percentage of companies planning to use China primarily as a base to supply other Asian markets has slipped somewhat since 2008. “Multinationals are shifting their China strategy as the country’s manufacturing sector matures,” said Bessler, who was responding to key findings of the 2009-10 China Manufacturing Competitiveness Study from Booz & Company and the American Chamber of Commerce in Shanghai. The study found that foreign manufacturers were increasingly focused on accessing the Chinese market, while the number of companies viewing China purely as an export base continued to decline. In analyzing 1,430 plants of 202 member firms, the study found that 83 percent of respondents said their primary motive for locating manufacturing in China is to access the Chinese marketplace, up from 71 percent two years ago. Meanwhile, the percentage of companies planning to use China primarily as a base to supply other Asian markets slipped to 50.5 percent from 54.6 percent in 2008.

“Telecom Industry Ripe For Consolidation”
In the March 28, 2010 issue of The New York Times, Booz & Company Partner Karim Sabbagh (Middle East) said Middle East telecom operators that can make the transition to integrated, international operators will be the ones to benefit most in the new global landscape. Whereas few Middle Eastern operators have melded their acquisitions into profitable groups, Sabbagh said, “those operators that can successfully transition from mere collections of independent multimarket companies to truly integrated international companies will sustain competitive advantage.” With Western operators cutting costs in mature markets, the bigger deals are coming in Africa and the Middle East, where mobile phone penetration remains low. The regional operators Bharti Airtel and Reliance Communications of India, Etisalat of Abu Dhabi, Qtel of Qatar, Zain and Orascom have all built their groups through acquisitions.

“Getting A Handle On Chronic Disease”
In the March 23, 2010 issue of Business Intelligence Middle East, Partner Ramez Shehadi (Middle East) said by folding health management services into their healthcare strategies, Gulf Cooperation Council (GCC) entities will take a major step in dealing with the enormous effects of chronic disease in driving up healthcare costs. “To counter these trends, GCC governments, healthcare organizations, and private insurers can deploy health management services in their overall healthcare strategies,” said Shehadi. These services can mitigate the spread of chronic diseases by establishing wellness programs and other preventive strategies, and once a chronic disease has been diagnosed, can reduce the costs of treatment through ongoing monitoring and frequent patient interaction. Those conclusions were part of a Booz & Company study showing that well-crafted health management services programs can help GCC nations stem the rising tide of chronic disease, provided governments start to lay a strong foundation for future health-management services.

“Why China Is An Incubator For Female Billionaires”
In the March 22, 2010 issue of Forbes.com, Booz & Company Senior Partner and Chairman for Greater China Edward Tse (China), said China has become the globe’s most competitive business environment. “Hundreds of thousands of new Chinese companies have made this country the world’s most competitive business environment,” wrote Tse in his new book, The China Strategy: Harnessing the Power of the World’s Fastest-Growing Economy. “China is now the world’s largest and fastest-growing source of entrepreneurial startups.” While some major sectors—such as banking, steel, telecommunications and electricity generation—are still essentially state-owned in China, a sizable chunk of new wealth being created there comes from entrepreneurs working hard in a variety of fields such as real estate, retail and consumer goods.

“The Four Drivers of China’s Growth”
In the March 16, 2010 issue of Forbes.com, Booz & Company Senior Partner and Chairman for Greater China Edward Tse (China) wrote the key to making sense of China’s next decade rests not with any single driver of the nation’s future, but instead, four very different drivers that “are pushing the country forward at once, all powerful, and all interacting with each other in unanticipated ways.” In his new book, The China Strategy: Harnessing the Power of the World’s Fastest-Growing Economy, from Basic Books, Tse took those four levers of change in China—Open China, Competitive China, Official China, and One World—in describing how they will transform the way in which which businesses operate everywhere. “Any company active in China will find its business increasingly meshed with its business in other parts of the world,” Tse wrote. “Although trade disputes, terrorism and political tensions continue, the global geopolitical community will not go back to its Cold War-era rivalries, or to the fragmented nationalism that preceded them. No major player on the world business stage can ignore China.”

“The Office Skirmish: How to Avoid Round 2”
In the March 14, 2010 issue of The New York Times, Booz & Company Senior Executive Advisor Damon Beyer (North America) said after a quarrel with a colleague who appears to have forgotten about it, it’s probably best to ignore the situation and move on yourself. “If it is clear, however, that your colleague is still upset and feeling animosity toward you,” Beyer added, “it’s best to raise the issue.” Contrary to conventional management wisdom, leaders can unleash creativity, innovation and the productive potential of their employees by strategically employing “right fights,” assert Beyer and Booz & Company Senior Fellow Saj-nicole Joni in their new book, The Right Fight: How Great Leaders Use Healthy Conflict to Drive Performance, Innovation, and Value, from Harper Collins. The Right Fight outlines the principles, practices and skills that companies need to embrace and win the battle for coherence, the competition for innovation and the diversity of views that generate breakthrough performance.

“Cut Rail Fares For Flyers: Report”
A March 12, 2010 article in The Sydney Morning Herald detailed a Booz & Company report for Sydney Airport Corporation that concluded rail travel to Sydney Airport would soar by 1.1 million journeys a year should the private operators of the airport train stations agreed to slash fares. Steep fares for passengers using the four airport stations were forcing people to use cars, the report found. “The premium fares also act as a strong disincentive to use the Airport Link stations,” it added. “'Fare reform represents a quick win in terms of increasing the attractiveness of rail as a means of travelling to and from Sydney Airport.” In its report, Booz & Company determined that that incorporating the four Sydney Airport Link stations into the subsidized CityRail fare system would mean an immediate 26 per cent increase in rail trips to the airport.

“Letter from Rome: New Advocates for Tax Cuts in Italy: Left-wing Unions”
In the March 12, 2010 issue of The Wall Street Journal, Booz & Company Senior Partner Fernando Napolitano (Europe) said the precarious state of the Italian economy could make it difficult for Italy’s main labor confederation to achieve its goals that resulted recently in a four-hour general strike. “With 1.7 trillion euros in public debt, there are no margins for this unless we want to face a Greek tragedy quickly,” said Napolitano of the strikers’ goal. The Italian General Confederation of Labour (CGIL), which represents transport workers, struck March 9 to protest what it said was an excessive tax burden on workers, given widespread tax evasion in Italy by those who are self-employed. It also wants more protection for workers who only have temporary contracts and changes in how the firing of workers can be challenged under Italy’s labor laws.

“Abu Dhabi Hopes High For Media Forum”
In the March 8, 2010 issue of The Financial Times, Booz & Company Partner Karim Sabbagh (Middle East) said behind the success of the inaugural Abu Dhabi Media Summit were executives drawn by underdeveloped media markets with demographic and digital growth dynamics that their home countries may never again be offered. The Middle East and North Africa region represents “one of the few markets where media (revenues are) still growing in double digits, even in traditional spaces,” Sabbagh said. The region’s media and entertainment markets should nearly double from $14.1 billion in 2009 to $26 billion by 2013, according to Booz & Company research, while broadband subscriber numbers should grow by 30 per cent per year for the next four years. Sabbagh spoke on the eve of the Summit, which drew some of the industry’s biggest “old” and “new” media leaders and helped establish the UAE as the hub from which media companies can tap into the growth offered by Arabic-speaking markets.

“Year-Old Alumni Help Companies Recruit the Best from B-Schools”
In the February 28, 2010 issue of Livemint, Booz & Company Partner Suvojoy Sengupta (India) said that the firm’s strategy went well beyond the standard format of campus interviews and brought its unique styles to the selection process. “You need to have gathered some data and intelligence before recruitment to narrow down candidates,” Sengupta said. A case in point was the prestigious Indian Institute of Management, Ahmedabad (IIM-A), where even before the formal recruiting process started in mid-February, Sengupota said Booz & Company, particularly its young alumni, had already networked to find out which students were likely to accept an offer. By the end of his time on campus, Sengupta, who also developed a rapport with the teacher in charge of placements, had a solid idea of how many job offers were made overall by competitors. “Hiring is a two-way match,” said Sengupta, himself an IIM-A graduate. “We want good, smart people ... who are willing to make a career with us.”

“1 Encuentro Coche Eléctrico: Las Empresas Sientan Las Bases Para Que Le Coche Eléctrico Arranque en España (First Electric Vehicle Roundtable: Companies Provide the Basis for the Launch of Electric Vehicles in Spain)”
In the February 18, 2010 issue of Expansion (Spain), Booz & Company Principal Joseph Santo (Europe) said that one of the keys to a successful introduction of the electric car in Spain is testing marketing various incentives in selected cities. “To attract the users,” Santo said, “we need to test the different incentives in those places.” Santo and Partner David Suárez (Europe) were the hosts of an unprecedented gathering of Spanish executives and government officials looking to jump-start development of the electric car. The roundtable discussion at Booz & Company’s Madrid office drew a range of senior executives from the automotive, electric-utility, battery manufacturing industries as well as government. “(This is) a complex debate that can only work through extensive cooperation across all stakeholders,” said Suárez who leads the Booz & Company business in Spain. Prime Minister José Luis Rodriguez Zapatero said recently there was a pressing need for a pan-European strategy to develop a viable electric car.

“Boards Hungrier For M&A This Year”
In the February 1, 2010 issue of Agenda, Booz & Company Senior Partner Gerald Adolph (North America) said that financial components for mergers and acquisitions (M&A) are healthy and presenting a somewhat improving market for M&As. Many companies have cash reserves, while currency for deals is available, debt capital is affordable, and stock prices are up, said Adolph, “so there’s some firepower you can get your hands on to make acquisitions.” But Adolph doesn’t expect private equity buyers to return to pre-recession numbers because “the financial fuel” such as covenant-free debt—isn’t going to reemerge. Moreover, he said that a slow economic recovery means that boards won’t approve acquisitions they weren’t considering already. So even as the market has improved somewhat, Adolph predicted that M&A volume would not rise significantly from 2009.

“Booz & Company Sets Up Virtual Climate Change Team to Serve Industry Practices”
In the January 2010 issue of Climate Change Business Journal, Booz & Company Partner Nick Pennell (Europe) detailed development of the firm’s “low-carbon sustainability” practice that supports the climate change and sustainability programs of all its clients. “We’re historically organized by industry practice but over time, each of those teams has had clients that have been increasingly interested in climate change, carbon reduction, and sustainability issues,” said Pennell, who leads the practice. “That interest has now reached critical mass, so we’ve established this formal coordinating mechanism.” The practice consists of a “virtual” team of 35 to 40 people from each of the industry-oriented groups who can connect their industry knowledge to sustainability and carbon management, and a smaller team of specialists and subject matter experts in areas such as carbon finance and the Clean Development Mechanism. “Given the slight uncertainty of the Copenhagen outcome in terms of price-setting mechanisms for carbon, for many companies, you’ll see a reversion to bread-and-butter CO2 reduction and energy-efficiency opportunities leading to tangible value creation,” Pennell said. “For companies in the renewable energy space, many of the U.S. states and European countries have renewable energy targets, so there will be continuing interest in helping companies meet those targets.”

“Indian Firms Shift Focus From Saving Money To Growing Faster”
In the January 28, 2010 issue of Livemint, Booz & Company Principal Piyush Doshi (India) said as the economy in India getting back on track, albeit slowly, companies in India are restocking their inventories and focusing again on growth. “Around (last) May (and) June, companies switched from the mindset of cash conservation to focus back on growth,” said Doshi. “But most are retaining the lessons learned last year and not going overboard. It’s like (going) back to the days of early 2008.” Doshi authored a Booz & Company study that found that many Indian firms improved their money management skills during the downturn to pare working capital needs, and has started to focus on growth again as the economy slowly improves. In its report, Booz & Company studied 158 firms from sectors such as automobiles, telecom and steel, and found that they had reduced their net working capital by seven days to 30 days. Posting the maximum cuts in working capital were automotive and fertilizer companies, with Uttam Galva Steels Ltd, Sun Pharmaceutical Industries Ltd. and Mahindra and Mahindra Ltd. among the firms that achieved the highest reductions. The Press Trust of India carried a similar article about the Booz & Company report.

“Gulf Economies Head For Slow Stabilization—Saddi”
In the January 19, 2010 issue of Gulf News, Booz & Company Chairman Joe Saddi (Middle East) said that Gulf Cooperation Council (GCC) economies are in for a year of slow stabilization with businesses focusing on consolidation and deleveraging. “Barring a major recession, again, it’s hard to see why oil prices would fall completely,” said Saddi, who was attending the INSEAD Leadership Forum in Abu Dhabi. “So we should continue to see moderate levels of growth and continued government spending on infrastructure.” Gulf economies were hit hard in 2009 by the sharp decline in oil prices from record levels set in the previous year, shortage of liquidity in the banking system and bursting of real estate bubbles. But Saddi said GCC governments haven’t shelved reformed initiatives embarked on before the crisis and have continued spending on infrastructure at levels approaching those prior to the financial crisis. Even so, sustainable growth requires increased attention to research and development (R&D) which accounts for less than 0.1 per cent of the region’s GDP, compared with 1.5 per cent in developed countries. “The kind of industry we’ve traditionally (regionally) had does not lend itself to R&D,” Saddi said. “But that’s changing. And you can see that looking at the Masdar Initiative or water desalination in Saudi Arabia.”

“Balance del Sector Turístico (Tourism Sector Balance)”
In the January 19, 2010 issue of Cinco Días (Spain), Booz & Company Senior Partner Jürgen Ringbeck (Europe) predicted that governments will pursue alternative strategies to boost the tourism industry in their countries. “This recession will force governments to adopt a new approach to tourism policy,” said Ringbeck in response to a study by the World Trade Organization (UNWTO) that found declining rates for tourism in 2009. “Competition between destinations will increase a lot as customers adjust to the maximum budget allocated to travel or sightseeing.” The study revealed that international tourist arrival declined by an estimated 4 percent in 2009, but found that growth returned in the year’s last quarter, contributing to better-than-expected full-year results with growth in 2010 projected to be between 3 percent and 4 percent. By region, Asia is expected to continue showing the strongest rebound, while Europe and the Americas are likely to recover at a more moderate pace. Growth is expected to return to the Middle East while Africa will continue its positive trend benefiting from the extra boost provided by the 2010 FIFA World Cup in South Africa.

“China Ends U.S.’s Reign as Largest Auto Market”
In a January 11, 2010 Bloomberg article, Booz & Company Senior Executive Advisor Bill Russo (China) said that new figures showing China is the world’s biggest car producer of underscores the might of the market, which will likely remain in that position even as sales slow in 2010 on a reduction in tax cuts. “China is becoming the center stage of development for the 21st-century global auto industry,” said Russo. However, in a follow-up article in Bloomberg, (“Buffett-Backed BYD Sees U.S. as Key for Electric Cars”), Russo said that plans for the Shenzhen, China-based automaker, BYD, to accelerate its planned 2011 debut in the U.S. could be a risky strategy. Speeding up the model’s debut in a market dominated by hybrids such as Toyota Motor Corp.’s Prius is “very ambitious and probably too risky,” said Russo. “Introducing a new brand and technology to a mature market is a major task for even the most experienced companies. (It) seems like a stretch for a relatively new company like BYD.”

“Logistics to Regain Steam Riding on Strong Demand”
In the January 2, 2010 issue of Zawya (UAE), Booz & Company Partners Fadi Majdalani and Ulrich Koegler (Middle East) and Simon Kuge (Europe) predicted a bright future for the logistics sectors of nations of the Middle East North Africa (MENA) region, provided governments continue to make substantial investments in the local production base. “As there are only a few sustainable transport and logistics niche markets, only dominant strategic plays will provide an attractive future for transportation and logistics providers in the region,” the Booz & Company authors write in their report, “Not Too Late: Finding Opportunity in Middle East Logistics.” Though the current economic crisis should have a moderate impact on profit margins across most segments there are several reasons why long-term profitability outlook remains positive, they added: The region has low logistics outsourcing levels when compared to global benchmarks; as well as significantly improved accessibility by road, sea, and air; strong and efficiently managed free zones and good access to markets in the Caucasian and Central African countries. Also, the evolution of global logistics hubs in key locations, such as Dubai, along the Europe-Asia trade route, is showing above-average growth rates, the Booz & Company report said.

“After Surviving Slump, Managers Ponder Next Moves”
In the December 28, 2009 issue of The Wall Street Journal, Booz & Company Senior Partner Cesare Mainardi said that CEOs who cut costs strategically during the downturn will be able to accelerate innovation in their strongest specialties. Rather than striking out into new areas, the likelihood of a slow recovery “requires sticking to your knitting,” said Mainardi, the firm’s managing director of North America and co-author of the 2009 ebook, Cut Costs, Grow Stronger. As an example, Mainardi cited Procter & Gamble Co., which has sold its prescription-drug business and most of its food brands to concentrate on strengths such as personal-care goods. Though big-company CEOs are more optimistic than at anytime in more than a year, they remain cautious, according to a November 2009 survey by the Business Roundtable. Nearly one-third of the 111 executives who responded to the survey expect to reduce their U.S. payrolls through the middle of 2010; only 19 percent expect their payrolls to grow in that period.

“Counterparty Woes Still Front And Center”
In the December 28, 2009 edition of Derivatives Week, Booz & Company Senior Associate Chuck Lyman (North America) said that fears of counterparty risk—the risk that the other party in an agreement could default—will continue as a top priority for sellside and buyside firms in 2010. Although the fears of counterparty risk were somewhat allayed in 2009 after a tumultuous 2008, Lyman said that the failure of Lehman Brothers continues to loom large and cause firms to question the stability and longevity of their trading partners. “Firms have to prove to the market they can identify they are a good credit risk, and if they are able to demonstrate that investors are more willing to give them capital,” said Lyman. “In the end, if you are in a new world where nothing is guaranteed around you, it’s up to you to discount on your own the strength of any arrangement you are in.”

“£110 billion Working Capital ‘Puts Survival Of Companies At Risk’”
In the December 18, 2009 issue of The Daily Telegraph, Booz & Company Partner John Potter (Europe) said British companies that are able to free up working capital, often tied locked into high levels of inventory, could provide a wave of cash for companies to invest in research and development to boost their competitiveness. “When capital is scarce, making better use of working capital is not merely a matter of improved practice,” said Potter. “Companies risk their competitiveness, in fact their own survival, by neglecting the cash available at home.” Potter was speaking about a Booz & Company survey, which found British companies have £110 billion tied up in working capital on their balance sheets, seriously affecting their competitive edge against overseas rivals. The study of 202 publicly-traded companies with combined annual revenues of more than £1.2 trillion, looked at three areas of working capital—receivables, payables and inventory—across 31 sectors. The research found firms were sitting on a sum equivalent to 10 percent of the total annual revenues of every business in the FTSE 100 and more than five times the UK Government’s economic stimulus package.

“Von Intelligenten Stromnetzen Profitieren (Benefit from Power Networks) ”
In the December 16, 2009 issue of Handelsblatt, Booz & Company Partner Walter Wintersteller (Europe) called the modernization of the electricity grids both a mega-market of the 21st Century—and a critical method for countries to establish better energy policies. These so-called intelligent networks “represent a key lever for achieving energy policy objectives such as reducing CO2 emissions or increasing the share of renewable energy,” said Wintersteller. Experts say that creating these power networks require many countries to devote considerable resources to modernize their sometimes decades-old power infrastructure. To do so, European counties will require an investment of €390 billion, according to research compiled by the Institute of Trend Research.

“Making Flex Time A Win-Win”
In the December 12, 2009 issue of The New York Times, the Booz & Company “partial-pay” sabbatical program was cited in an article exploring how flexible work arrangements can be a critical strategy for companies looking to keep high-performing employees motivated in challenging times. The program in which Booz & Company professional staff can take a one-month to a yearlong sabbatical at 20 percent of base pay plus medical benefits and return to a guaranteed job is “positioned as a way to cut costs in this downturn while holding on to crucial talent,” according to the article. The author, Sylvia Ann Hewlett, heads Sylvia Ann Hewlett Associates LLC, the consulting arm of the Center for Work-Life Policy, which is allied with Booz & Company in providing tailored and sustainable solutions to global companies rethinking their talent-management strategies. “The gender gap these days is about equal opportunity to stick with one’s career and not be forced into a dreaded choice between work and family,” Hewlett wrote. “A rich menu of flexible work arrangements is central to women’s progress.”

“Best Places to Work”
In a December 7, 2009 article, Crain’s New York Business named Booz & Company to its annual list of the 40 “Best Places to Work” in New York. “It’s not easy to create a meritocracy where everyone has an equal chance to get to the top, but Booz (& Company) strives hard to achieve that goal,” the magazine wrote in choosing Booz & Company to the list for the second year in a row. “It provides plenty of training and a well-defined career path.” Crain’s partnered with the Best Companies Group in conducting nearly 14,000 surveys of New York employees. Scores from employees, who answered a confidential 76-question survey, were then combined with scores from a survey of the employers of more than 150 companies. “If you’re a high-performing MBA with a few years of general consulting experience, Booz is looking for folks like you,” the magazine wrote.

“Zweifel an Islamic Finance (Doubts about Islamic Finance)”
In the December 2, 2009 issue of Handelsblatt, Booz & Company Senior Associate Philipp Wackerbeck (Europe) said that the economic troubles in the Emirate of Dubai pose one of the first real tests for the relatively new Islamic banking sector. Since its formation in 1975, the number of institutions operating in line with Islamic law or Shari’ah has mushroomed. Worldwide, there are now more than 500 Islamic financial services institutions, including Dubai Islamic Bank , which is generally acknowledged to be the first full-fledged Islamic bank. An expert in Islamic banking, Wackerbeck is an author with Booz & Company Partner Peter Vayanos (Middle East) of the report, “Islamic Banking: How Do Islamic Banks Compete in an Increasingly Competitive Environment.”

“With Eye on Competition, Firms Keep Spending on R&D”
In a November 30, 2009 article in The Wall Street Journal, Booz & Company Partner Barry Jaruzelski (North America) said a shift away from basic research and toward applying existing technology to new products is a longstanding trend in corporate labs that has accelerated during the recession. His comments were in response to the release of Booz & Company’s fifth-annual Global Innovation 1000 Study, which found that in the wake of a global recession and counter to predictions, the world’s 1,000 largest publicly traded corporate research and development spenders stuck with R&D spending in 2008. Some companies are placing research bets on health care, especially in information technology, said Jaruzelski. One such example is Intel, which in early 2009 introduced the Intel Reader, a handheld device that reads to people with dyslexia and other learning disabilities. The Booz & Company study, which earned headlines around the world, found that R&D outlays for the companies surveyed rose 5.7 percent to (U.S.) $532 billion, though sales were up only 6.5 percent.

“Laptops and Toy Hamsters Fly Off Shelves in U.S. Holiday Sales”
In a November 28, 2009 article in The Financial Times, Booz & Company Partner Paul Leinwand (North America) said that U.S. shoppers reflected a prevailing tone of practicality in the post-Thanksgiving sales, the traditional start to the country’s holiday shopping period. “Consumers have really been deferring a lot of their own purchases,” said Leinwand. “Understandably, shoppers have been thinking, ‘If it’s not broken, do I really need to replace it?’” The National Retail Federation said retailers in all sectors had reported “strong crowds” during the morning, while analysts said numbers seemed to be similar or slightly above levels seen last year, reflecting some improvement from 2008’s dismal end-of-the-year sales.

“Festival Will Expand but Stick with June”
An article in the November 18, 2009 issue of The Sydney Morning Herald detailed a series of Booz & Company recommendations that would enable the venerable Sydney Film Festival to expand revenue sources and build its audience. Booz & Company recommended that the 56-year-festival, one of Sydney’s true cultural symbols, remain at the State Theatre while expanding to other parts of city and running satellite screenings year-round. Although officials had considered shifting the June festival to November, Booz & Company recommended sticking to the current schedule in order to emphasize Australian films. By moving the date, the festival would lose several of the films made within the country.

“Indian ESO To Touch $50 Billion By 2020”
In the November 18 issue of The Economic Times, Booz & Company Partner Vikas Sehgal (India/North America) said cost arbitrage and availability of skilled professionals in India is driving more customers to increase offshoring of engineering services. “Besides semiconductor and telecom, we expect consumer electronics, automobile and aerospace to be pulling their own ground by 2020,” said Sehgal in an address to the National Association of Software and Services Companies (NASSCOM) Global Engineering Summit in Mumbai. As part of the Summit, Booz & Company and NASSCOM stated in a joint study that the Indian engineering services outsourcing (ESO) industry will achieve $50 billion in revenues by 2020, and generate employment for 25-to-30 million professionals for delivering these services. Currently, India exports engineering services worth $7 billion to $9 billion annually, according to the report, with half the ESO revenues by 2015 to come from the U.S., Europe contributing 40 percent, and the rest from Japan.

“Next Generation Trends”
In the November 17, 2009 edition of ArabianBusiness.com, Booz & Company Senior Associate Hadi Raad (Middle East) said new generation broadband access will provide both households and business with a range of enhanced services increasingly distinguished by near symmetrical upload and download requirements. Those key applications and solutions range from basic digital telephony to streaming videos, HD IPTV, more advanced high resolution video conferencing and high-definition TV—and all the way to advanced applications such as telepresence and 3D television, Raad said. “The effect of NGN broadband applications on the wider economy is definite,” he added. “ICT contributes to every sector of the economy through productivity gains. Investments in broadband networks and applications will have spill-over effects across the economy. This is even more vivid in developing economies (which) haven’t yet reached the critical mass in broadband penetration.”

“U.S. Economy Will Adapt Faster Than Europe”
In the November 9, 2009 issue of Livemint, Booz & Company CEO Shumeet Banerji predicted a “long and slow” recovery from the global recession. Speaking during a break at the India Economic Summit in New Delhi, Banerji said he believes there will be a somewhat faster improvement in the U.S. with economic troubles in Europe and Japan to last for a time. Overall, “the U.S. is more flexible, is generally more innovative and … will adapt quicker,” he added. “ I think there is much more structural rigidity in Europe and it will make it harder and longer for recovery.” At the Summit, Banerji joined Carlos Ghosn, Chairman and CEO, Renault, and President and CEO, Nissan; and Indra Nooyi, Chairman and CEO of PepsiCo, as a co-chair.

“Brands More Influential Than Price In Spurring Purchases: Study”
In the November 4, 2009 online issue of Progressive Grocer, Booz & Company Partner Matthew Egol (North America) said even with shoppers increasingly basing purchase decisions on factors other than price, manufacturers have yet to take advantage of the trend. “Most Consumer Packaged Goods (CPG) manufacturers have not yet aligned shopper marketing initiatives with other marketing capabilities that influence shoppers along the entire path to purchase, such as trade promotions, relationship marketing and brand advertising,” Egol said. “The lack of alignment leads to disconnected marketing messages, wasted spending, and missed opportunities to drive purchase.” Egol’s comments were in support of the study, “Shopper Marketing 3.0: Unleashing the Next Wave of Value,” which analyzes survey data collected from 3,600 shoppers across the food and beverage, household products, and health and beauty categories, and encompassing various retail formats. The Grocery Manufacturers Association, Booz & Company and the online consumer community, SheSpeaks, partnered on the study.

“Are You Strategic?”
In the November 1, 2009 edition of CFO Magazine, Booz & Company Principal Christopher Click (North America) said strategically-minded CFOs should look for new and pragmatic approaches to motivate business units. “Some CFOs might look into improving working capital because it’s simply part of the finance function, a box they should check, said Click. “If you’re preparing monthly reports for the business units, walk down to the business leader and say, ‘Hey, as I looked at your results, I was thinking maybe there’s a way to drive down working capital to fund the build-out of the customer-service network in the Middle East,’ or some other desirable project,” he added. That approach is strategic in several ways, according to Click: The CFO gets credit for addressing an issue face-to-face instead of by telephone or e-mail, and may succeed in motivate staff to work harder on an otherwise uninspiring task.

“Up Close And Personal”
In the October 23, 2009 issue of The Malaysia Star, Booz & Company Chairman Joe Saddi (Middle East) said that Booz & Company is looking to assist multinational companies seeking to penetrate the Asian market including Malaysia, as well as assist emerging Malaysian corporations extend their footprint at home and abroad. “Our people have global knowledge yet also understand the local culture,” said Saddi, who is based in Beirut but was attending the opening of the Booz & Company office in Kuala Lumpur, its 10th office in the Asian region. “We have expertise in navigating how the public and private sector interact together to form a more productive partnership,” he said. Saddi oversees Booz & Company’s business in Middle East, and sees synergies and possible business potential between Malaysia and the Middle East. “In the Middle East, many governments and companies always ask how Malaysia succeeded as an economy,” he said.”

“CEOs Learn the Customer Is Always Frighteningly Right”
In the October 19, 2009 issue of The Australian, Booz & Company Partner Vanessa Wallace (Australia) said she was increasingly seeing chief executives remove the layers between themselves and their customers. “People have been given lip service to getting close to customers for a decade because they knew it was important,” said Wallace. “But they didn’t have to worry about it too much because the numbers just came in.” However, the economic downturn has ushered in an era of management in which chief executives are committing in a great way to customer needs in order to succeed. “Now the numbers won’t just come in,” Wallace said of this new reality, “and (chief executives) are going to have to work out what it really means.”

“H1N1 Vaccinations Pose U.S. Public Health Challenge”
In an October 16, 2009 report from Reuters News, Booz & Company Partner Bob Hutchens (North America) predicted success for the U.S. government’s $6.4 billion swine flu vaccination program, despite strains that the program is likely to cause for the American public health sector. “There will be some long lines, there may need to be some late hours and people may not be able to get it the day they want it,” said Hutchens, an architect of the Booz & Company team that redesigned the supply chain for the Centers for Disease Control and Prevention’s Vaccine for Children program. “But if we approach this soundly and rationally, I suspect we’ll be just fine.” His comments were in response to the first mass U.S. immunization program in a generation in which the U.S. government aimed to deliver tens of millions of doses of the swine flu vaccine—setting off a debate among health experts about how well the country’s network of state and local health departments might perform. The U.S. government has ordered vaccine from five companies—sanofi-Aventis SA; CSL Ltd.; Novartis AG; GlaxoSmithKline; and the AstraZeneca unit, MedImmune.

“Johnson Pressed on Immigration Rules”
An article in the October 16, 2009 issue of The Financial Times cited a prominent Booz & Company report that confirmed many of the factors contributing to the City of London’s powerful position as a world capital of business are at risk. Presented to Mayor Boris Johnson and members of his International Business Advisory Council (IBAC) at their annual meeting at City Hall, Booz & Company’s review of London’s overall business competitiveness determined that safeguarding financial services and nurturing the leading creative and legal industries were vital in retaining the capital’s status as a premier business destination. According to the study, more than 50 business leaders said measures such as the planned 50p top tax rate and a £30,000 levy on non-domiciled residents were prompting individuals and companies to consider leaving London. The report urged the Mayor to set up a small London competitiveness unit to strengthen his lobbying capability, with one of its priorities to launch a coordinated campaign on immigration. Booz & Company delivered its business competitiveness report at the request of Ian Livingston, Chief Executive of BT; and Richard Sharp, Chair, Royal Academy.

“Wir glauben an Investitionen im Abschwung—um bereit zu sein für den Aufschwung (We believe in Investing in a Downturn—to Be Ready for the Upturn)”
In the October 4, 2009 issue of Welt AM Sonntag, Booz & Company CEO Shumeet Banerji (Europe) said that the global economic recovery appears to be underway, but could be slower than some had predicted. “It is too early to open the champagne bottles,” said Banerji in an exclusive interview. There are several reasons why that is so, he said, ranging from the high indebtedness of some countries to the need to pay off debt in U.S. and UK business and households. “There is a recovery, but will be slower than expected, and a fresh setback is not excluded,” Banerji said. In the meantime, the need to attract top talent remains the consulting industry’s greatest challenge. “What matters most in our industry is talent,” said Banerji, citing Booz & Company’s decision to expand its partner corps this year by approximately 20 percent, despite the recession. “We believe in investing in a downturn—to be ready for the upturn.”

“Beware of Cutting of the Branch on which You Sit”
In an article in the October 2, 2009 issue of The Financial Times, Booz & Company Senior Partner Cesare Mainardi (North America) said that contrary to common wisdom, cost-cutting in a downturn can actually be a strategic opportunity. Recession, argued Mainardi, a co-author of the new e-book, Cut Costs, Grow Stronger, is a chance to identify and focus on a company’s core capabilities. Seen in this way, the cost-cutting process “becomes quite easy, and can be done rapidly,” said Mainardi whose co-authors of the book, published by Harvard Business School Press, are Booz & Company Partner Paul Leinwand (North America) and CEO Shumeet Banerji. The Booz & Company authors argued that managers in a downturn often resort to across-the-board cuts that weaken their businesses—and that benchmarking against competitors following a similar strategy only makes things worse. Also needed is the need for detailed, accurate information when making decisions, which could be especially difficult for many managers. “Sometimes it is easier for an outsider to identify what must be done,” added Mainardi.

“Global Market—An Unprecedented Market”
In the October 1, 2009 issue of Petroleum Review, Booz & Company Principal Robert Oushoorn (Europe), and Partners Otto Waterlander (Europe), Thomas Schlaak (Europe), and George Sarraf (Middle East), wrote that executives of international gas markets who best understand the market’s new dynamics will emerge on top. “All players along the value chain, suppliers, buyers and infrastructure companies need to carefully assess the current new dynamics,” the Booz & Company authors wrote in a bylined piece. “Those players who fully understand the implications of the current market conditions and the opportunities they may offer can emerge from this crisis stronger than they went into it.” Prompting the new reality was the authors’ prediction that the economic recession combined with the completion of current gas export infrastructure projects could significantly reduce demand and lead to an oversupply in the market of up to 15 percent until well into the next decade. “So market change depend on supply decisions made by large National Oil Companies (NOCs),” they wrote. “Also, developments in the production of unconventional gas in the U.S. based on the recent huge reserves discoveries will play a crucial role, with a potentially shifting position of the U.S. in the global supply/demand balance adding to the situation of over-supply.”

“GCC States Urged to Diversify Economies”
In a September 30, 2009 article in Zawya, Booz & Company Partner Nabih Maroun (Middle East) said that the global economic downturn emphasized the need for further diversification in GCC (Gulf Cooperation Council) economies and highlighted the vulnerabilities in the financial system, driven primarily by high rates of leverage. “To benefit from the global recovery and build a foundation for sustainable growth, GCC policymakers will need to consider a number of key reforms to reshape their fiscal and economic management practices and governance,” Maroun said. Reinforcing his comments were the findings of a Booz & Company study that detailed steps GCC policymakers can take to accelerate the region’s recovery-and protect it from future crises. “The region seemed somewhat sheltered from the crisis, but by November 2008, it was clear that it would not ride out the storm entirely,” said Booz & Company Partner Richard Shediac (Middle East), citing a decline in the GCC stock market, falling oil prices and a dried-up credit market in the region. “Consequently, some states, including Dubai, Kuwait, and Bahrain were significantly affected by the crisis, as were certain non-oil sectors including financial services, real estate and tourism.”

“Buying A Car Is More Than Just Economics”
In the September 12, 2009 issue of The Hindu Business Line, Booz & Company Partner Jan Miecznikowski (North America) said with the automobile market becoming more fragmented, targeted and focused, India could benefit by continuing to bet on the production of small cars as well electric and hybrid vehicles. “Like SUVs, minivans and crossovers in their time, small cars are an emerging segment,” Miecznikowski said. “It is eating into the market which some of the other segments enjoyed. People who go in for small cars would be those buying a car for the first time or those using a pre-owned sedan and want to buy a new car.” Driving some customers is a green mentality—“a fairly strong dynamic that is happening in the market,” Miecznikowski said. “With incentives, sentiments to go ‘green’ and emission norms getting more stringent, I am very bullish,” he added, “that various forms of electric and hybrid-engine vehicles will become the vehicles of tomorrow.”

“Gulf: Ambition Usurps Domestic Focus”
In the September 9, 2009 issue of The Financial Times, Booz & Company Chairman Joe Saddi (Middle East) said that Google’s recent acquisition of Maktoob, the largest Arabic-language web portal, was indicative of a new generation of entrepreneurs and companies in countries of the Gulf Cooperation Council starting to make a mark on a corporate landscape dominated by state-controlled companies and family-owned conglomerates. “The main challenge for regional companies that want to become global contenders has been to acquire the right management skills,” said Saddi. “This has been the bottleneck, and the companies emerging now have finally cracked it.” Founded in 2000 in Jordan, Maktoob is now based in Dubai. Experts valued the acquisition at more than $75 million.

“Disney’s Marvel Acquisition May Not Portend More Media Deals”
In the August 31, 2009 issue of The Wall Street Journal, Booz & Company Partner Christopher Vollmer (North America) says that Walt Disney Co.’s agreement to buy Marvel Entertainment Inc. reinforced Disney’s unique financial position and solid track record of integrating new business and brands into its sprawling portfolio of media and entertainment assets. “This speaks to the ability of Disney in particular to weather a difficult economic climate and have the economic strength to get a deal done in a climate like this,” said Vollmer. “They’ve shown through the Pixar acquisition that they can successfully integrate a creatively driven company, and they’ve shown with ESPN that they can manage other brands effectively.” Disney acquired Pixar Animation in 2006, and ESPN in 1995 as part of a deal for Capital Cities/ABC. But whether the Marvel deal raised the prospect of a new wave of mergers and acquisitions hitting the beleaguered media industry is still open to question. “There’s too much uncertainty around key parts of the market for some of the other players to feel that confident about the go-forward prospects for acquisitions,” Vollmer said.

“New Edge to Manpower”
In the August 29, 2009 issue of The Australian, Booz & Company’s Peter Sullivan (Australia) said with technology transforming how HR professionals perform their jobs, it’s time for a more disciplined approach with respect to IT. “Business is pretty hi-tech and data-driven, particularly management consulting,” said Sullivan, the firm’s human capital director for Asia, Australia and New Zealand. “If HR doesn’t get some hard facts behind its views to back up its assumptions, then I think HR will be less credible than other areas of an organization.” One way to do so, Sullivan added, is with due diligence. “Cash is precious in an economy like this; any investment, be it in infrastructure or a manufacturing plant or a company’s own people, must be backed up with pretty rigorous analysis and some sort of return on investment,” he said. “You can’t do that without a system that collects data along the way so you can project what the impact of an investment will be. People programs can be expensive and it’s important to have some assurance that the investment will pay off.”

The Constant Traveller On a Mission to Inspire
In the August 24, 2009 issue of The Financial Times, Booz & Company CEO Shumeet Banerji is profiled in an in-depth look at his task “to help the firm establish its sense of purpose and build an international communal spirit” across 59 offices in 33 countries. “It has not been an easy time for consulting firms,” the newspaper wrote. “Many of their clients are now pinched for cash and unwilling to shell out for expensive consulting projects. When they do hire outside advice, they want it to be practical and focused,” something that Banerji said plays to Booz & Company’s strengths. Banerji added that Booz & Company has an uncanny ability to connect with the issues that companies care deeply about, which, in turn, builds client loyalty and helps the firm survive the economic downturn. “This is a firm that exists to serve clients, and as long as you stay focused on your clients, even when they’re going through a hard time, things will come back,” he said.

“Focus on New Opportunities Rather Than Just Cutting Costs”
In the August 18, 2009 issue of Emirates Business 24/7, Booz & Company Senior Associate Hatem Samman (Middle East) said with countries in the Middle East achieving economic stability, firms should now be preparing to face the new economic reality ahead instead of devoting all their attention to cost cutting. “We have to expand the role of the private sector,” said Samman, the director and lead economist at Booz & Company’s Ideation Center. “Clearly foreign direct investment would be a helpful factor in growing the economy. I don’t mean only in the oil sector, but also in other sectors such as real estate.” At the same time, proper development of human capital through various means would go a long way towards supporting the economy, he added. “Fields such as education and health are important,” Samman said. “One of the critical factors for growth is human capital improvement. In education, we have been lagging behind (and) we need to reform it because it is a source of innovation and efficiency. It is essential to link your education strategies with your socio-economic priorities.”

“Destination Dustbin”
In an article in the August 10, 2009 issue of The Financial Times describing how some companies are taking advantage of the economic downturn to reshape and strengthen their businesses, Booz & Company authors Shumeet Banerji (Europe), Paul Leinwand, and Cesare Mainardi (both North America) were quoted in their example of one such company, Johnson Controls, which moved quickly to identify huge cost savings. In their e-book, Cut Costs, Grow Stronger, Banerji, Leinwand, and Mainardi wrote that in the mid-1990s Johnson Controls was prodded into overhauling the workings of one division after losing a huge contract to supply car batteries to Sears. In doing so, the company moved quickly, cutting costs, closing plants and renegotiating deals with suppliers—and within months, had identified cost savings of $150 million a year and learned a lot about how to become more efficient. “Did Johnson Controls really need a crisis to figure out which costs were really essential? Theoretically, of course, the answer is no,” they wrote. “(But) to paraphrase Samuel Johnson, ‘Nothing focuses the mind quite like the prospect of your imminent removal from this world.’”

“Why Ad Industry Won't Recover In Second Half”
In an article in the August 10, 2009 issue of Advertising Age, Booz & Company Partner Christopher Vollmer (North America) predicted a continued bleak television advertising industry in the second half of 2009, mirroring the ad industry in general. “In this environment, ad spending for the broadcast networks may stabilize in the second half of 2009, but it is more likely to remain difficult,” he said. “Marketers continue to hold on to budgets longer and seek more flexibility in their buys.” Early returns on the current broadcast marketplace suggest revenues down by 15 percent or more, compared to a year ago. “(Television advertisers) also have more and more options—whether it’s cable, digital or other below-the-line marketing services,” Vollmer added. “This will not make it any easier for broadcast to get growth going.”

“Domestic Strength Key to Growth”
In the August 7, 2009 issue of Middle East Economic Digest, Booz & Company Partner Fadi Majdalani (Middle East) said in the wake of global trade flows hit by the economic crisis, Gulf Cooperation Council (GCC) countries with strong local industries such as manufacturing will benefit most from planned infrastructure investments. “The current economic crisis affects the region’s transport and logistics industry, especially in segments that are strongly dependent on the global economy and trade flows,” said Majdalani. According to the Booz & Company report, “Not Too Late: Finding Opportunity in Middle East Logistics,” the Middle East transport and logistics market will have a total value of $27 billion by 2012, compared with $18 billion in 2008. Majdalani said the key to achieving this level of growth is the development of new rail links in the region, including the GCC rail network and projects such as the Saudi Landbridge, which will connect the Kingdom’s Gulf and Red Sea costs via a new rail line. The Middle East has long recognized the advantages its geographic position gives it as a global logistics hub; GCC countries are within four hours flying time of 2 billion people, and sit on key East-West trade routes.

“Führungskräfte: Die Teilzeit-Manager (Executive: Part-time Manager)”
In the August 5, 2009 issue of FOCUS Online, Booz & Company Principal Jeno Schradrack (Germany) said that a family illness was the main reason for his decision to cut back his hours and become a part-time manager. Schradrack and Partner Irmgard Heinz, the mother of two-year-old twins, were featured as part of a look at companies where the ranks of part-time or flex-time managers are growing. For Daniela Price, the recruiting manager for Booz & Company’s Germany, Switzerland, and Austria region, part-time people, also known as flex-timers, are often very productive at the jobs, tend to feel more loyal to the firm, and stay longer.

“Marketers Turn Against TV Tactics”
In the August 3, 2009 issue of The Australian, Booz & Company Partner Simon Gillies (Australia) said television advertising alone has become an increasingly ineffective way to push their brands. His comments were in support of a global survey by Booz & Company and Naked Communications in which respondents said flashy TV campaigns, slogans, and the over-reliance of celebrities were marketing strategies that no longer worked, given the fragmentation of media consumption and the rise of new media. About 80 marketers from Australia, the U.S., Asia, and Europe were surveyed for the study, “What Marketers Want,” from companies including Unilever, Kellogg, Coca-Cola, Microsoft, Sony, Hilton Hotels, and Kookai. Gillies said that marketers felt constrained by three main factors—a failure to generate breakthrough ideas, a lack of accountability in terms of knowing what will work, and speed-to-market considerations. “The challenge is to come up with something new (instead of) falling back on what you traditionally do,” added Gillies.

“Crisis Management Lacking: Experts”
In an article in the July 23, 2009 issue of The Japan Times, Booz & Company Partner Shigeo Kizaki (Japan) said that crisis management should become another key factor for shareholders’ evaluation of corporate executives’ performance. His remarks came at a Tokyo symposium in which government and private-sector experts agreed that crisis management must be institutionalized in government policies, corporate management, and citizens’ way of life, especially to cope with new threats to public safety. Though Japan has a reputation as a country whose government, corporations and citizens are fully prepared for natural and man-made catastrophes, Kizaki and other experts said that is not necessarily the case. “Politicians, bureaucrats and business executives should be more sensitive to and be more aware of the new forms of threats to public safety,” Kizaki said.

“Apple Beats Views As New 3G iPhone, Laptops Fuel Sales”
In an article in the July 22, 2009 issue of Investor’s Business Daily, Booz & Company Partner Barry Jaruzelski (North America) said that big iPhone sales in its 3rd quarter enabled Apple to smash Wall Street’s sales and profit estimates. Apple is performing well because of the strength of its brand and the continued “halo effect” associated with its popular iPod portable media players and iPhone smart phones, said Jaruzelski. Moreover, the Cupertino, Calif., computer maker hasn’t felt pressured to get into the growing netbook category—low-cost mini-notebook computers—because demand for its premium notebooks has remained strong, he added. “Right now, the netbook trend is more of an issue for the traditional Wintel PC players than for Apple,” Jaruzelski said, referring to Intel (INTC) -powered computers running Microsoft’s Windows operating system. Apple wants to avoid the erosion of average selling prices that has plagued netbook vendors, he added.

“Telecom Key Driver Of Growth”
In an article that appeared July 8, 2009 in Gulf Weekly, Booz & Company Principal Bahjat El Darwiche (Middle East) said that the current economic uncertainty presents an opportunity to broaden the boundaries of telecoms’ domain and bolster other parts of the economy. The telecom sector’s ability to act as a catalyst for economic recovery is dependent on three factors, added Booz & Company Partner Karim Sabbagh (Middle East): the ability of regulators and policymakers to effectively fulfill their various functions, the level of integration between governance of the telecoms sector and governance of media and technology, and the level of maturity of regulatory practices. As such, telecoms policy-making and sector development should be clearly distinguished from regulatory activities, and long-term strategic planning should be rapidly institutionalized to promote the sector as an economic enabler. “The capabilities for effectively driving high-impact sector development initiatives also need to be swiftly built to support government investment and public-private partnership initiatives,” added Sabbagh.

“Economist: Credit To SMEs Key To Solid Recovery”
In the July 7, 2009 issue of China Daily, Booz & Company CEO Shumeet Banerji said that ensuring credit and lending to China’s small- and medium-sized enterprises (SMEs) will be essential to a robust economic recovery. In advising SMEs to carefully conserve cash to keep going, Banerji also urged that governments lend more support to cash-starved SMEs. “The government should pay close attention to SMEs at any time, especially in difficult times like these,” he said. The Chinese government’s pro-active intervention, however, is a key advantage over other major economies, he added. According to Banerji, loans from banks are the primary source for the operations of China’s SMEs, but the volatile economic environment makes banks ever more reluctant to lend to SMEs as credit risks increase significantly. “Although the current financial crisis is slowing down, credit and lending are still very tight,” he said, which makes financing more difficult for SMEs.

“Sprungbrett Unternehmensberatung (Stepstone Consultancy)”
In an article in the July 6, 2009 issue of Handelsblatt, Booz & Company Partner Anja-Isabel Dotzenrath (Germany) supported the premise that top-flight management consulting firms serve as a starting point for a variety of careers. “Consultancies are often being utilized for a career in industry,” said Dotzenrath.

“Die Unberechenbaren (The Incalculable Ones)”
In an article in the July 2, 2009 issue of Financial Times Deutschland about rising prices for new medications, Booz & Company Partner Rolf Fricker (Germany) said that the costs for pharmaceutical companies can be significant. “Research and development are (not) cheap,” said Fricker in remarks taken from a recent speech. “Costs between $600 million and $ 800 million (U.S.) have to be estimated to fully develop a drug for the market, including failures.” Even then, the odds are slim that the drug will ever get to market. “Only one of 500 candidates makes its way to the sales,” added Fricker.

“New Metric for Fuel Efficiency”
In a bylined piece in the June 29, 2009 issue of Aviation Week & Space Technology, Booz & Company Partners Eric Kronenberg and Andrew Tipping and Associate Justin White (North America) wrote that airlines facing a challenging future of higher, more volatile jet fuel prices can improve competitiveness and viability by optimizing fuel consumption. For better or worse, the Booz & Company authors added, permanently higher oil prices will force the airline industry to reevaluate much about how it does business, how it creates a sustainable competitive advantage, and how it measures and prioritizes decision-making. “The good news is airlines still have the power to shape their destinies,” they write. “By taking a data-driven look at their business models, focusing on and measuring their largest operating expense—fuel—and challenging assumptions around the status quo, senior management will be equipped with the analysis needed to be innovative and decisive.”

“11 Worth Listening To: The UAE’s Best Analysts”
An article in the June 10, 2009 issue of The National chose Booz & Company Partner Ghassan Hasbani (Middle East) as among the UAE’s 11 “best analysts and economic commentators,” saying of him that “few people understand (the Middle East telecom sector) better, or speak about it more fluently.” The article described the Middle Eastern telecom sector as “a perfect storm of complex challenges—flush with cash, adapting to competition, rapidly expanding, dealing with new competition from every angle—adding that Hasbani is among the best business leaders to talk it and offer “clearheaded perspective.” Others earning spots on the publication’s list of analysts “most worth listening to” include Marios Maratheftis, economist, Standard Chartered; Abdul Kadir Hussain, Mashreq Capital; Chet Riley, Nomura Securities; Dr. Nasser Saidi, chief economist, Dubai International Financial Center; and Ali Khan, Arqaam Capital.

“Booz & Company’s Second Coming”
In an exclusive interview in the June 5, 2009 issue of The Economic Times, Booz & Company CEO Shumeet Banerji said the firm’s recent re-entry into India was “a major priority,” triggered by a “long-term strategy (that) is not driven by short-term” (circumstances). “We think helping Indian companies become genuine global players is part of the mission of the firm,” Banerji added. “So in the short term, things go up and things go down but the firm’s been around for 95 years… The timing is driven as much by our strategy choices, and these issues look a little bit different around a recession but we are in good health and we are not too worried about the timing.”

“How The Auto Industry Shake-Up Affects You”
In an article that appeared June 2, 2009 on Forbes.com, Booz & Company Principal Steven Treppo (North America) said that sellers of high-end, “luxury” cars can best navigate economic challenge by sticking to the ideals that make them upscale in the first place: customization, exclusivity, uniqueness, craftsmanship and heritage. As such, Treppo said that luxury auto retailers should reinforce their strengths by resisting the urge to slash prices. “That is the last thing we want to do in a recessionary time,” he said. “It is going to be a slippery slope if you start training the customer to look for lower prices.”

“Datacentres at Risk Unless They Tackle Inefficiencies”
In an article that appeared May 22, 2009 on ComputerWeekly.com, Booz & Company Partner Louise Fletcher (Europe) said that datacenter providers may face uncertainty unless they are able to focus on efficiency. “The demand for data services is on the rise but the datacenter is under tremendous pressure to cut costs, reduce energy usage, and develop new delivery models,” said Fletcher, who heads the firm’s Global IT Practice. “Those pressures—and the threat of rising factor costs such as energy, labor or real estate—will force every datacenter operator to re-assess how it does business if it wishes to remain competitive.” Fletcher spoke in support of a Booz & Company report that specified costs can be cut by as much as 40 percent, through virtualization, server consolidation, energy management, datacenter management, global sourcing and modularization. Creating a virtualized server environment using virtualization technology can bring savings of 15-to-20 percent, the reported noted, adding that more than 50 percent of datacenter floor space is under-used.

“Continuing Reform Is Key For Mideast To Weather Economic Crises”
In a May 17, 2009 article carried by Emirates News Agency, Booz & Company Chairman Joe Saddi sided with other top Middle East business leaders who spoke at the World Economic Forum on the Middle East that pushing ahead with reforms is the key to weathering the global economic crisis. “The big worry I have is that we get distracted from long-term reforms like diversification, liberalization and while building our regulatory and supervision capabilities,” said Saddi, a WEF panelist at the three-day meeting of leaders at the Dead Sea, Jordan. “It’s about modernizing government services, labur laws and having the right social safety nets; and then the toughest is to maintain the course on educational reforms.” Those comments were echoed in the May 16, 2009 GulfNews article, “Optimism Grips Wary Middle East,” in which Saddi described the mood at the conference as somewhat improved from late January at the global World Economic Forum in Davos, Switzerland, though “I don’t think anybody (at this point) has a case to be super-optimistic.”

“CEO Turnover Adopts Global Pattern”
An article in the May 12 issue of The Financial Times detailed the findings of Booz & Company’s ninth annual survey of CEO Succession, “Stability in the Storm,” which found that in the face of the worst economic crisis since the Great Depression, CEOs in 2008 demonstrated surprising “recession resistance.” Although CEO turnover rose slightly on a global basis from 13.8 percent in 2007 to 14.4 percent in 2008, the survey revealed that turnover in 2008 actually declined in North America and Europe, the regions hit first and hardest by the economic slowdown. Booz & Company’s study of global CEO succession patterns examined the degree, nature and geographic spread of leadership change among the world’s 2,500 largest publicly traded companies. It generated prominent coverage, which in addition to the UK, U.S., Middle East, Asia and Europe editions of The Financial Times, included articles in Les Echos, Handlesblatt, NRC Handelsblad, Valor Econômico, and CNBC.

“New York and London: Twins in Finance and Folly”
In an article in the May 9, 2009 issue of The New York Times about the concept that London and New York stand “one and the same” and mirrored destructive practices that led to the current financial crisis, Booz & Company Partner Alan Gemes (Europe) disagreed, saying that the Royal Bank of Scotland, which in addition to its poor lending, did itself in by buying the Dutch bank giant ABN Amro at the very peak of the market. “Was Royal Bank of Scotland buying ABN an example of the American disease?” asked Gemes, who heads the firm’s global financial services practice. “No. American banks and U.K. banks fell prey to the same problem.” As in any banking crisis, he added, banks revert to being national institutions rather than international ones. In the United States, for instance, the political focus is on persuading banks to start lending to American companies, whereas in London, the big British banks have all tempered their once grandiose ambitions, at least for now.

“Kritischer Blick aufs Sortiment (Critical Glance on the Range)”
In an article in the May 5, 2009 issue of Financial Times Deutschland, Booz & Company Partner Johannes Bussmann (Europe) detailed the complexities of coping adequately with the range of funds available in crisis-stricken markets. “The multitude of funds has a confusing impact on customers, especially as transparency gains more and more importance,” said Bussmann. Of the various funds and certificates available in the current market, Bussmann said there are cases in which neither investment consultants or customers are able to fully comprehend the products became “things (have) become especially complicated.”

“Downturn Best Time for a Revamp”
In an article in the May 5 issue of Mint (India), Booz & Company Principal Nikhil Bahadur (India) said that an economic downturn is the best time to create or revive a brand, giving companies an opportunity to make real change rather than investing in routine advertising. “There is no better time than during a recession to create or revive a brand because this is when companies all around are cutting back, the prices are down for advertising and the noise is less, so this is the time to speak out,” said Bahadur who leads Booz & Company’s consumer, media, and retail practice in India. “Also, many Indian companies are expanding and branching out to international markets, which sometimes calls for an image makeover that will help them adapt to other markets.”

“Managing and Thriving in a Down Market”
In an interview posted May 1, 2009 on Bigthink.com, Booz & Company Chief Marketing and Knowledge Officer Tom Stewart (North America) said the biggest opportunities in the current recession could be in “the continued rise of not only of wealth in places like India and China and Brazil and Russia but also the continuing rise of great global competitors.” As a result, Stewart expects to see great companies emerge from those markets as well as a shifting of the competitive landscape. “We’re going have to learn a lot of new names,” he said. For company leaders, that could translate to more opportunities. “You should know what your long-term strategy is and then see how the recession may create opportunities or create moments when you can behave opportunistically in furtherance of the strategy that you think is right,” added Stewart.

“Wind Energy In Brazil Advances As Bidders Gear Up For First Auction”
In an article in the May 2009 edition of Renewable Energy Report, Booz & Company Partner Arthur Ramos (South America) predicted that Brazil ‘s energy mix—which already comprises 46 percent of the nation’s renewable sources, including hydropower—will evolve differently than those in developed countries “because the country was the first to focus on renewable sources.” In taking a bullish view of Brazil’s wind power market, Ramos encouraged the government and private companies to combine different energy sources, such as wind, solar and geothermal energy. “Among the renewable sources, wind farms are expected to increase in scale the most in Brazil,” Ramos said. The Brazilian wind industry, which like many clean energy sectors has been affected by uncertainty about the country’s support for renewables, is picking up speed as it prepares for a national government auction on November 25.

“Das Übernahmekarussell dreht sich (The Takeover Carrousel is Spinning)”
In an article in the April 29, 2009 issue of Handelszeitung that details the trend of middle-sized banks taking over private banks, Booz & Company Partner Carlos Ammann (Europe) said that takeover candidates are predominantly Swiss affiliates of foreign banks that have received government subsidies, which creates a dilemma for some banks. “Foreign customers that bring their money to Switzerland don’t want to be clients of a bank that is dependent from the state,” Ammann said. Moreover, he added, “some of these banks are facing difficulties and are in the process of checking their business portfolio.”

“Bay Area Businesses Remain Optimistic”
An article in the April 23, 2009 issue of The San Francisco Examiner detailed a recent study by the (San Francisco/Oakland) Bay Area Council in partnership with Booz & Company that found businesses in the Bay Area are better prepared than their global counterparts to survive this recession with some even see the disruptions brought about by the downturn as a boon. The study was based on the interviews with 56 Bay Area CEOs from a wide spectrum of industries about the recession and the strategies companies are using to approach the current crisis. Booz & Company Partner Narayan Nallicheri (North America), who spearheaded the study, said that Bay Area businesses are using the downturn to make operational improvements. “That way we’ll be better poised after the recession,” he said. “There’s a lot of skilled talent, especially in the Bay Area, and this is the time to get that talent.” The study found that roughly 80 percent of Bay Area businesses have reduced spending, compared with 71 percent of companies around the globe; all the companies surveyed appeared to be laying off between 5 percent and 15 percent of workers, and most have introduced net hiring freezes. The survey was conducted between February and April 2009.

“Apple Quarterly Results Beat Expectations”
In an article published April 22, 2009 by Reuters, Booz & Company Partner Barry Jaruzelski (North America) said that Apple Inc.’s favorable quarterly profit were “pretty respectable on an absolute basis.” Apple Inc’s quarterly profit and revenue surpassed Wall Street expectations on strong sales of iPhones and iPods, sending its shares up 2 percent in after-hours trading. “They continue to do relatively well even though Mac volumes are down only a little,” said Jaruzelski of Apple. “With only a 3 percent decline they have gained market share… because the overall PC market is down more than that. Their competitive stance has improved.”

“MENA Telecoms Need Liberalization—Hasbani”
In an article in the April 17, 2009 issue of The Daily Star (Lebanon), Booz & Company Partner Ghassan Hasbani (Middle East) said that the absence of telecom liberalization in the Middle East and North Africa (MENA) made the sector lag behind the rest of the world in cost and efficiency. “When we look at low GDP per capita markets we don’t see a drive for market liberalization which is necessary to bring prices down,” said Hasbani the 9th-annual Arab Telecom and Internet Forum in Beirut. “We don’t see as well much drive for direct foreign investment encouragement, which will help increase the GDP per capita and improve the performance of the telecom sector in the region.” Hasbani added that MENA telecom liberalization has led to a rapid increase in the number of operators, particularly in the mobile sector, which increased from 19 percent in 2000 to 44 percent in 2008.

“Indian Cos Go For Business Process Reengineering”
In an article in the April 10, 2009 issue of Economic Times, Booz & Company Principal Vikram Ramakrishnan (India) said that even for companies re-inventing themselves, the current economic slowdown poses several challenges. Those companies engaged in the practice known as Business Process Reengineering (BPR) must acknowledge the huge discontinuities in the market and understand that the fundamental nature of industries is changing, he said. And before companies even begin a restructuring, they should review the processes involved and ask if they are even needed at all, Ramakrishnan added. So goes the new reality of BPR as a means of boosting productivity in the current economic slowdown. Though BPR has been around since the early 1990s and has its loyal advocates, the current slowdown is unlike anything seen before, experts said, making it imperative for companies to take steps to ride our hard times and come out on top.

“Tide's Charitable Makeover”
In the April 10, 2009 issue of Brandweek, Booz & Company Partner Paul Leinwand (North America) said Procter & Gamble’s redesign of its Tide detergent bottles, the most significant packaging change in the brand’s 60-year history, could create issues for the company on the retain end. “The problem with that is it’s just introducing a lot of complexities for the retailers,” Leinwand said, adding that shelf space in the detergent aisle is precious. The packaging is part of P&G’s marketing program to raise funds for disaster relief, and shows faces of real people Tide has helped. The new design is denoted by Tide “yellow cap.” Major retailers will carry the bottles through June 2009.

“R&D Spending Holds Steady In Slump”
In the April 6, 2009 issue of The Wall Street Journal, Booz & Company Partner Barry Jaruzelski (North America) said companies that cut development budgets “may not be in a position to take advantage of things when they come back.” Indeed, many major U.S. companies that are cutting jobs and wages appear to still be spending on innovation, having learned from past downturns that they must invest through tough times if they hope to compete when the economy improves. Jaruzelski pointed to television and mass-produced chocolate-chip cookies as innovations that were refined during the Great Depression, but weren’t commercial hits until after World War II.

“Telecoms Struggle To Hold Line Against Crisis”
In a bylined piece in the April 4, 2009 issue of The National (Abu Dhabi), Booz & Company Partner Ghassan Hasbani (Middle East) wrote that that the global economic slowdown offers several opportunities for regional telecommunications operators to pursue acquisitions and expand globally. “Regional operators still have sufficient firepower to continue pursuing M&A investments (and) in addition, new acquisition targets are likely to emerge as a result of the depressed economic situation,” wrote Hasbani. In the meantime, he added, operators should use the pause from the global slowdown to review their international assets and extract more value out of them—a strategy that would require improved corporate governance practices and adapting to a multicultural environment. “Successful global organizations are those that are good at embracing the changes,” Hasbani added. “Regional telecoms operators will have to raise their game in this respect.”

“Much Tilling Without Harvest—Eyeing Pastures New”
In an article in the April 2009 issue of Zawya (UAE), Booz & Company Principal George Atalla (Middle East) outlined several strategies for Gulf Cooperation Council (GCC) countries to diversify their food sources and avoid the growing threats of shortages and higher food prices. “Food security is officially defined not just as a shortage, but also looking at availability and affordability,” said Atalla. “There are a number of ways to ensure supply is always available,” he added, starting by diversifying sources so one crop could come from several places. With regional wheat prices rising 83 percent in 2008 and other staples doubling in price, GCC governments have been eating into reserves to placate populations, which are spending ever-larger proportions of their income on food. Atalla detailed several other possible strategies for GCC governments, from reviewing their internal networks, such as imports through more than one port; to reviewing storage capacity of four to six months; and exploring contract farming.

“Energia Alternativa Ganha Espaço em Novo Cenário (Alternative Energy Gains Space in new Scenario)”
In an article in the April 1, 2009 issue of O Estado de S. Paulo, Booz & Company Partner Arthur Ramos (South America) said it is imperative that alternative energy sources like nuclear energy be developed in the international economy of the future and in Brazil in particular. “Brazil should aspire to be in the front line of new technologies,” said Ramos. “It is time to turn the page and invest in innovation.” Ramos spoke in support of Energy Shift, a new Booz & Company book by Senior Partners Eric Speigel (North America) and Neil McArthur (Europe) about the changing nature of energy and its significance to business leaders.

“Die Alte Werbewelt Kommt Nicht Wieder (The Old Advertising World Will Never Be the Same)”
In a wide-ranging interview in the March issue of Horizont, Booz & Company Partner Gregor Vogelsang (Europe) said “the strategies of communications must change” for the global advertising industry to survive and thrive. Making the case for change, Vogelsang added, was a marketing manager who told him recently, “We make no more campaigns, but we will build a permanent relationship with our customers.” Looking ahead a decade, Vogelsang predicted “a much smaller, consolidated landscape view” with the most significant changes occurring in the print business. Also, he predicted that the mobile web would become an independent version of the Internet and establish itself as a mass medium; and that cinema, radio and outdoor advertising would continue to transform their businesses to a digital format. As for classical, image-oriented advertising, added Vogelsang, “(that) industry must fundamentally redefine itself if they do not want to sink into insignificance.”

“‘People’s Car’ Nano To Go On Sale In India”
In an article in the March 22, 2009 issue of USA Today, Booz & Company Partner Vikas Sehgal (North America, India) called the launch of Tata Motors’ tiny, inexpensive “people’s car” a bold idea that could lead to booming sales as more people move up the socioeconomic ladder and join the working class. The Nano will be sold for 100,000 rupees, or about $2,000 as an alternative to mopeds, often used even by families to get around cities and rural areas. “There was a gap existing in the market,” said Sehgal, “and the Nano is being launched into that gap.” But a faltering economy makes prospects unpredictable for the Nano, already launching six months late because of a political battle over where the car was to be built. The delay has given rivals time to work on their own versions of a Nano. For Sehgal, questions remain: “How many...people will buy (the Nano) is still an open question,” he said.

“China Blocks Coke Bid For Juice Maker”
In an article in the March 18, 2009 issue of The New York Times, Booz & Company Partner Andrew Cainey (Greater China) said a decision by Chinese authorities to block the Coca-Cola Company’s attempt to buy one of China’s major beverage makers is a crucial sign of Beijing’s approach to allowing foreign companies to buy Chinese assets, rather than just taking stakes in them. “This deal is certainly being looked at closely,” said Cainey. “It will shine some light on what sort of behavior it takes for a foreign company to make a deal of this sort in China.” Coca-Cola’s bid for the China Huiyuan Juice Company, announced last September, would have valued Huiyuan at $2.4 billion, making it the largest takeover by a foreign company of a mainland Chinese firm. It was also the first transaction to be assessed in China under tighter takeover rules that came into effect last year. The Commerce Ministry cited competitive concerns and the potential for Coca-Cola to gain a dominant position in the juice market as the reason for its decision.

“Swiss Private Banks Face Consolidation Wave: Survey”
In an article reported March 18, 2009 by Reuters and featured in newspapers around the world, Booz & Company analysis shows that managers at Switzerland’s private banks believe the current economic crisis is the worst since 1924 and could lead to a wave of industry consolidation. “Top bankers said the severity of the crisis added to other factors would force the industry to change fundamentally, but many banks have no clear strategy going forward,” said Booz & Company Partner Carlos Ammann (Europe). The report, “Private Banking: Beyond The Perfect Storm,” was based on a survey of 20 top executives in Switzerland’s private banking sector conducted in January and February 2009. The report determined that the main effects of the crisis were still to be seen because market losses had caused a large reduction in assets and led to a significant erosion in margins. “The bankers surveyed all agreed there would be consolidation but believed that if involved they would be the acquirer, not the acquired,” added Ammann.

“India And China Are Still Happening”
In an article in the March 9, 2009 issue of Livement (India), Booz & Company Principal Nikhil Bahadur (India) said at a time when economies around the world are battling a deep downturn, Booz & Company is bullish about business in India. “India and China are still happening, so the focus has shifted to emerging markets,” said Bahadur, who leads the company’s consumer, media and retail practice in India. Bahadur said there is no better time for companies in India to create a brand, and added that applies in particular to retail, consumer products, and media sectors. “As the market matures, we will see competition increasing,” Bahadur added. “Five-to-ten years ago, the Indian market was under-penetrated, but now it’s all about winning market share. In media, for instance, it was all about TV ads and distribution until now, but we will (now) see big promotional activity for on-the-spot purchases. It will be about which brand is giving a good deal ‘today.’”

“India Among World’s Attractive Destinations: WEF”
An article in the March 4, 2009 issue of Economic Times (India) details how India has moved up three places on the list of the world’s attractive destinations, but is still at a low of 62nd position in the global ranking, which is topped by Switzerland, according to a report released by the World Economic Forum with the help of Booz & Company. Switzerland is followed by Austria, Germany, France, and Canada in the top five of the annual “Travel & Tourism Competitiveness Report for 2009,” which features a total of 133 countries and reflects the industry’s many challenges in the face of the current economic downturn. “The economic downturn forces a new view on a country’s Travel & Tourism policy by the local government and the travel industry to preserve the competitiveness of its destination,” says Booz & Company Senior Partner Jürgen Ringbeck (Europe), who headed the Booz & Company team that assisted WEF on the Report. “Competition between destinations will heat up, as many customers will manage their travel budget more tightly for some time.” Booz & Company was the project’s strategic design partner.

“Fewer MNCs Relocate”
An article in the February 20, 2009 issue of China Daily revealed key findings from a survey by the American Chamber of Commerce in Shanghai and Booz & Company in which executives of multinational manufacturing companies operating in China said they remain fairly optimistic about China’s efforts to position itself as a world-class manufacturing center. The survey found that despite the economic downturn, only 10 percent of the executives of the 108 multinational companies (MNCs) polled expressed interest in relocating their manufacturing facilities. Nearly half of the MNC manufacturers said they suffered a fourth-quarter export decline of more than 10 percent year-on-year, but most still expressed a commitment to remain in China and expand operations. News of the survey drew headlines with media outlets that included Reuters News and The Associated Press.

“Berlusconi vs. Murdoch: Italy’s Real Reality TV”
In a February 18, 2009 article in Time Magazine, Booz & Company Principal Pietro Candela (Europe) called a highly-publicized rivalry between media barons Rupert Murdoch and Silvio Berlusconi the inevitable result of the “convergence” of free and pay television, which may result in the end of the 20-year-old duopoly between Mediaset and RAI. That is in part, Candela said, because Murdoch is doing well financially in Italy with his company, Sky Italia, registering earnings of $3.2 billion last year—and closing in on RAI ($3.7 billion) and Mediaset ($4 billion). Fueling the competition between the media barons, Candela added, is that with “the TV system reach(ing) maturity, we’re now seeing open combat for ratings, profit and talent.”

“Mobilfunker Bremsen Datentransport (Mobile Network Operators Arrest Data Transfer)”
In a February 16, 2009 article in Financial Times Deutschland, Booz & Company Partner Roman Friedrich (Europe) said it is essential that telecommunications companies look to innovation for new business opportunities in the current economic downturn. “The sharp recession will take over the function of catalyzation for the necessary consolidation and the structural adjustment of the telecommunications industry,” said Friedrich. “The telecommunications companies have to realize that enduring growth requires successful innovation and new business opportunities besides the common network business.”

“A Roadmap for Saving Detroit”
In a bylined article in the February 16, 2009 issue of The Daily Beast, Booz & Company Partner Scott Corwin (North America) argued that the economic vitality of the “Big 3” U.S. domestic auto makers is contingent on investing in advanced technology and innovation to create the vehicle of the future. “To make this transition will require significant investment in technology, infrastructure, retailing, and manufacturing—all that can accrue to benefit the U.S. economy and create a powerful new economic engine that results in growth, high paying and productive jobs, and the formation of vital new enterprises,” Corwin wrote. The technology to create electric- or hydrogen-powered vehicles—that are more efficient and operate with much lower or no emissions—is within reach, he added, and requires breaking through old paradigms and narrow-minded regional and local self interest. “It is in the thicket of these very difficult choices and tradeoffs that (the U.S.), with leadership from the Obama administration and the auto panel, need to chart the future and redefine what advanced, environmentally friendly, economical, personal mobility means in the 21st Century,” Corwin wrote.

“Focus On Core Business”
In the February 6, 2009 issue of Economic Times (India), Booz & Company Chief Marketing and Knowledge Officer Tom Stewart (North America) said that CEOs in hard times need to recognize that the business world is changing, which in turn puts more pressure on every company to make decisions faster about more complex issues. “Bill Gates called his book, Business@the Speed of Thought, but the problem is when the business grows at a faster rate than the speed of thought,” said Stewart. “It puts terrible pressure on decision making.” In a wide-ranging interview, Stewart detailed several other major issues facing CEOs, including what he called “fuzzy boundaries”—a reference to global organizations that have outsourced much of their value chain, requiring that executives deal with “a multi-dimensional matrix, like a plate of spaghetti” when making decisions. Still another issue facing CEOs, Stewart said, is the challenge of decision making without knowing what the future will bring. “It’s not even about odds or risks but conditions where you just don’t know,” he added. “We have to get through the night, and who knows how long and dark the night will be.”

“Cooling Down Overheated Economies, Booz & Company Reports”
In an article in the February 4, 2009 issue of AME Info (UAE), Booz & Company Partner Rabih Abouchakra (Middle East) said Gulf Cooperation Council (GCC) nations that have taken steps to manage inflation should be significantly better off in the current economic downturn. “Countries that choose a sustainable development growth model, and who thereby manage inflation and overall macroeconomic stability typically have an easier time sustaining real GDP growth and can recover far more quickly from contractions,” he said. Abouchakra’s comments support a Booz & Company study that examined the root causes of inflation and proposes a holistic approach to GCC policy making—a particular challenge for hydrocarbon-rich economies. Among the biggest inflation jumps have been in the GCC countries of Saudi Arabia, Oman, and the UAE where fast-growing populations, high-wage growth, limited housing, and relatively immature financial systems are common and their inflation rates are highly correlated.

“Knowledge-Based Sourcing In China”
In an article in the January/February 2009 issue of Research Technology Management, Booz & Company Partner Ron Haddock (Europe), Principal Michael Pfitzmann (North America) and Senior Executive Advisor Reid Wilk (North America) wrote that companies doing business in China should “pursue a dual strategy of using the Chinese platform to make more sophisticated product components for export and simultaneously seeking to penetrate the domestic market.” As such, they advocate a strategy of knowledge-based sourcing, a new approach to working with suppliers in China and other low-cost countries. Citing the example of General Motors Corp., the authors identify three imperatives as essential to successful knowledge-based sourcing: Know your suppliers inside out; develop strong relationships with a few suppliers; and work together with them on continuous improvement.

“Online Ad Spend Set To Grow By Up To 35 Percent In 2009”
A January 29 article on ArabianBusiness.com (UAE) reveals findings from a Booz & Company report that regional spending on online advertising is expected to grow by 25-35 percent as a result of the economic downturn. And that shift from print to online advertising in the regions will continue as budgets are slashed, according to “Game Not Over,” the name of the report. “Online advertising is cheaper compared to other mediums such as television and print and is far more targeted,” said Booz & Company Partner Gabriel Chahine (Middle East). According to the report, around 90 percent of marketers are focused on campaigns that are cross-platform and inclusive of digital media while 80 percent believe insights into consumer’s digital behavior will become more important to their brands.

“Alto Escalão Admite Erros nos Planos Contra Crise (Top Management Admits Mistakes in Crisis Plans)”
In a full-page report in the January 21 issue of Valor Econômico (Brazil) about Booz & Company’s hard-hitting study, “Recession Response: Why Companies Are Making the Wrong Moves,” Senior Partner Ivan de Souza (South America) summarized the firm’s finding that senior managers of companies across the globe are struggling to make the right moves in the current economic environment. Of the 828 senior managers surveyed in December, 40 percent doubt that their company leadership has a credible plan to address the current economic crisis. An even greater number—46 percent—are uncertain their leadership could carry out the plan. Additionally, one-third of all CEO and CXO-level respondents do not have confidence in the plans that they presumably wrote themselves. The Booz & Company report attracted massive press attention with more than 110 articles and television and radio reports in at least 13 nations, and the attention of many attendees at the annual meeting of the World Economic Forum in Davos, Switzerland.

“Telecoms Spree Set To Dial Down”
In the January 19 issue of the Financial Times, Booz & Company Partner Bahjat El-Darwiche (Middle East) said that Middle East telecommunications companies are standing out in their goal to achieve competitiveness. Even after years of petrodollar-fuelled growth, few Gulf companies have made an impact on the international business scene, but the region’s telecommunications companies are a notable exception. Spurred by small, increasingly saturated but lucrative and partially protected home markets—and helped by government owners—Gulf telecoms companies have embarked upon an aggressive investment and acquisition spree in recent years. “So far, the objective of achieving competitiveness in telecoms is coming to maturity," said El-Darwiche. “Nearly all countries in the region now have at least two mobile operators and several broadband and fixed-line operators,” said El-Darwiche.

“Will The Satyam Debacle Really Harm Indian Business?”
In a bylined article in the Jan. 15 issue of Livemint (India), Booz & Company Partners Suvojoy Sengupta (India) and Vinay Couto (North America) wrote that the current troubles of Satyam “should be seen as a timely wake-up call” for Indian companies. “The issue is one of execution and operationalization of governance practices, rather than lack of governance mechanisms,” the authors argue in setting an agenda to ensure that companies avoid a similar fate. “In the near term, relevant authorities must ensure ruthless and timely action against proven wrongdoers in Satyam according to applicable laws. This will help restore the perceived erosion of trust, and also make the consequences of white collar crime crystal clear.” For the medium term, Sengupta and Couto urge Indian companies “to adopt a robust code of conduct for effective operationalization of corporate governance requirements. Such a code, they add, “should bring greater clarity on duties and obligations of management, directors, committees, and external auditors, and the consequences of not discharging the obligations adequately.” Sengupta, based in Mumbai, leads Booz & Company’s India operations; Couto, based in Chicago, heads the firm’s outsourcing advisory practice.

“Will P&G’s Streamlining Move Give Consumers What They Want?”
In an article in the January 15 issue of Marketing Week, Booz & Company Vice President Barry Jaruzelski (North America) endorsed Procter & Gamble’s strategy to scrap several of its format lines across its laundry brands, particularly in an economic recession. “It is possible to migrate the segments so there is no substantial loss,” Jaruzeleski said. “Companies are often selling a product that people buy, but they would be just as happy with another version.” In a major shake-up in the hyper-competitive laundry detergent market, Procter & Gamble plans to scrap several of its format lines across its laundry brands, Ariel, Bold, Fairy and Daz—as it pins its hopes that the low-temperature Excel Gel is what consumers want. Though the P&G strategy is based on substantial consumer research, Jaruzelski added there is a limitation in market research into what consumers want. “Sometimes it’s just what they say they want, based on what they know,” he said. “Sometimes you have got to assert what they want.”

“Pre-Empting The Tactics Of Private Equity May Be Best Way To Enhance Shareholder Value, Finds Booz & Company”
In a January 5, 2009 article in Maktoob Business (UAE), Booz & Company Principal Ahmed Youssef (Middle East) detailed a new Booz & Company report that urges management of public companies to adopt the tactics of private equity to raise share prices and make themselves less vulnerable in hard times. Youssef said that publicly traded companies are often outmaneuvered by private equity firms that swoop in, buy them, and resell them at a premium often after only a short holding period—and should consider using a similar strategy. The report, “Pre-Empting Private Equity: Six Ways to Enhance Value,” highlights the steps companies can take, including shedding non-core parts of their portfolios, rewarding shareholders with dividend increases and stock buybacks and optimizing their capital structures. “The growth in this part of the world has been tremendous over the last few years, but people aren't really thinking about the practices that maximize value and assure sustainability,” said Youssef. “These practices are critical in tough times.” (The Booz & Company study was also featured in a January 5, 2009 article in the Middle East North Africa Financial Network of Jordan.)

“Small Is Beautiful”
In a January 1, 2009 article in Hindustan Times, Booz & Company Partner Vikas Sehgal advised India’s auto industry to look at the long-term effects of the current recession and invest in research & development. “This is the time when we should be investing heavily in research and development and preparing ourselves for the new world order that will emerge from the debris of this recession,” said Sehgal. “India’s auto industry has a very good chance of emerging as a front runner in the post-2012 scenario, but the preparation for that has to start now.” According to the newspaper, the nation’s car manufacturers are already taking that advice: By the end of the first quarter of 2009, the Tatas’ Rs 1-lakh car or Nano is expected to hit the roads. Meantime, General Motors already employs 1,600 engineers at its Bangalore headquarters, while Maruti Suzuki is doubling its engineering staff to 1,000 by 2011. And Hyundai, which has already made India its export hub, is ramping up its workforce from 250 to 800 people at its R&D center in Hyderabad. (Sehgal also discussed R&D needs in the auto industry with the Press Trust of India Limited in a December 24, 2008 article)

“Flying Towards Quality When The Economy Is Grounded”
In an article in the December 22, 2008 edition of Mediapost.com, Booz & Company Partner Christopher Vollmer (North America) said that companies should consider focusing their marketing online. “Marketers are looking for advertising environments that are targeted, accountable and interactive—all of those dimensions continue to benefit online,” said Vollmer, who leads Booz & Company’s North American media practice. His advice is based on current economic economic conditions, which he said lead marketers away from advertising networks, because “they offer little additional value in the form of campaign optimization or targeting.” Nielsen Online recently reported that newspaper sites, such as NYTimes.com and washingtonpost.com, received a record 68.3 million unique visitors in the third quarter, an increase of 15.8 person above the third quarter of 2007.

“Dutch Character Emerges At Times Of Crisis”
Although producer confidence in the Netherlands plunged to an all-time low in December due to the credit crunch, a majority of Dutch consumers are not planning to cut back on their spending, a Booz & Company/MarketResponse Nederland BV survey on the Dutch economic climate has revealed. According to the findings, which were widely published in publications such as Het Financiele Dagblad, Radio Netherlands and DutchNews.nl, from which the December 22, 2008 headline above was taken, most Dutch consumers feel that the economy will have recovered in six months and less than 40 percent said they will reduce spending in the time between now and then. Even so, the financial crisis has had an impact, with three-quarters of Dutch consumers expecting a reduction in the value of their house and 77 percent predicting the same with their investments and savings. However, seven in 10 Dutch consumers think their income will remain the same or even rise, and two-thirds believe they do not have to tighten their belts in the coming period. Findings of the study also appeared in an article published by Xinhua News Agency.

“Chinese Dealocracy”
In a bylined article in the December 15, 2008 issue of The Deal, Booz & Company’s Andrew Cainey (China) and Gerald Adolph (North America) argue that the keys to a successful business transaction in China rests with both parties’ ability to work through challenges such as building trust, overcoming cultural differences and maintaining clear communication. “When dealing with a Chinese buyer, it is critical to understand exactly what type of transaction is being considered,” write Cainey, a Senior Executive Advisor for Booz & Company in Greater China, and Adolph, a U.S.-based Senior Partner who leads the firm’s Mergers and Restructurings group. “In contrast to U.S. buyers, Chinese acquirers typically are not interested in gaining control of the target. While more popular today, outright acquisitions still remain by far the minority of outbound Chinese deals.” In light of cultural differences, a lack of familiarity and the sheer novelty of some transactions, the authors write that “a greater premium on communications between the two entities themselves to customers, employees, regulators, governments and other stakeholders” is needed, all of which “requires close attention to concerns of different stakeholders as well as a detailed, well-coordinated plan to address these concerns.”

“Making The Best Of The Global Crunch”
An article in the December 8 issue of India Today highlighted Booz & Company as one of the leading firms that continues to recruit at top Indian business schools despite speculation that the global recession will cause a significant recruiting effort on campus. Booz & Company was cited in the article as still making offers to top students at the Indian Institute of Management Ahmedabad. Booz & Company professionals from the recently-opened Mumbai office also are recruiting this year at three other Indian universities—the Indian Institute of Management Bangalore; Indian Institute of Technology (Mumbai); and the Indian School of Business (Hyderabad).

“How Low Can Banks Go?”
In the December 1 issue of Forbes.com, Booz & Company Senior Partner Mike McKeon and Partner Seamus McMahon (North America) predicted that continuing financial problems may create a new U.S. banking landscape dominated by major banks. “A combination of constrained credit availability, anemic demand and intense deposit competition will put significant earnings pressure on the banks that remain,” they wrote. With several potential bank takeovers in process—among them Wells Fargo taking over Wachovia, JPMorgan Chase taking over Bear Stearns and Washington Mutual, and Citigroup also looking for a deal—McKeon and McMahon predicted that U.S. banking industry of the future could be one in which just four banks control 40 percent of U.S. deposits.

“India’s Economy Will Likely Withstand Terror Attacks”
In a November 28 article in Bloomberg, Booz & Company Partner Jai Sinha (Asia) was among several business leaders who predicted the India’s economy will withstand the effects of the recent terror attacks in Mumbai, particularly as rising incomes and record harvests boost consumer spending. “There is a lot of money to be reinvested back into the economy,” said Sinha, who is co-head for the firm’s business in India. “There is no doom and gloom over India.” India’s Finance Minister Palaniappan Chidambaram expected India’s growth to rebound to 9 percent from as low as 7 percent in 2008, even as a global recession spreads. Asia’s third-largest economy expanded more than expected last quarter as consumer spending held up and investments increased, a recent government report showed.

“Don’t Be Afraid Of The Bear”
Is Russia a good place in which to invest? “Yes,” argued Booz & Company’s Steffen Leistner, Tanvir Hanif and Thorsten Liebert (Europe) in a bylined article November 25 in Turkish Daily News. “Despite its economic and political complexities, Russia offers foreign banks a number of reasons to take a closer look,” the Booz & Company authors argue, citing the country’s economic emergence, rising incomes and lack of structure in the system, which is creating an opportunity for foreign banks at a time when the Russian oligarchs are retrenching. “Russia is the largest of the emerging economies across Central and Eastern Europe and one of the fastest growing, they wrote. “Although the recent slump in oil prices has slowed its escalation, oil is still costly enough to contribute significantly to the economy. Russian commodities industries are also surging and industries such as telecom and media are maturing.”

“Innovation in America: A Gathering Storm?”
The November 20 issue of The Economist argues that, despite recent popular belief, America is not losing its competitiveness to emerging markets. Citing the Booz & Company Global Innovation 1000 study, the article contends that the rise of emerging economies may even help companies from rich countries that take a global approach to innovation, stating that “[The study] has shown in the past that spending more on research has no correlations with better financial performance. But this year’s study, recently released, found that multinational firms that took a global approach to research outperformed those that concentrated their research spending in their home market.”

“Data Dim Hopes Of Asian Stability”
In a November 20 article in The International Herald Tribune, Booz & Company Partner Ed Tse (Asia) said that the Asian economy could take longer than expected to recover in the wake of Japanese exports to the rest of Asia falling in October for the first time in nearly seven years. “We may have passed the highest point of this tsunami by now, but we are not clear of it yet,” said Tse, who is Booz & Company’s Managing Director for Greater China. The news from Asia emerged after the U.S. Federal Reserve drastically cut its expectations for growth in the United States, and after a record sharp fall in the price of consumer goods and services.

“The Impact of the Financial Crisis in the Brazilian Automotive Industry”
In a live interview November 11 on Bloomberg Television, Booz & Company Vice President Letícia Costa (South America) predicted that the Brazilian automotive industry will face a growth retraction in 2009 die to the global financial crisis and credit shortage. However, the prediction comes against the record growth rates achieved in 2008 by the Brazilian auto industry—and Costa said that the period of retraction she predicts for 2009 could serve as a period to rebuild capacity.

“Booz & Company Offers to Create a Regulating Structure for East-West Information Main Line”
In the Nov. 11 edition of ABC.AZ Daily News (Azerbaijan), Booz & Company Partner Rainer Bernnat (Europe) detailed aspects of the Booz & Company proposal for creation of an East-West super-information highway. The firm’s comprehensive strategy program, presented at a meeting of Communications Ministers of CIS, Europe, and Asia, is a cost-effective model for building a trans-Eurasian ICT broadband infrastructure. It would do so by kick-starting the broadband connectivity of several central European states considered a long way from major global data highways—while creating opportunities for commerce and e-government. Included in the meeting were representatives of Ministries of Communications of Ukraine, Belarus, Slovenia, Estonia, Russia, Moldova, Lithuania, Kazakhstan, Georgia, Iran, and India.

“Interview with Shumeet Banerji, CEO, Booz & Company”
“I do not manage a corporation; in our business, it’s about influence rather than dictation,” Booz & Company CEO Shumeet Banerji said in an interview that appeared in the Nov. 10 issue of The Wharton Journal. “You need to lead by example, motivate and know your place in the world. We must have a clear moral compass on behalf of the firm. Our job is to help leaders lead and we work by persuasion and influence.” Banerji’s advice to business students: “Have a clear sense of your purpose,” he said. “Know what kind of person you are and what you want to achieve. If the answer is to make a lot of money, it might not be good enough.” Banerji presented his remarks during a recent visit to The Wharton School of the University of Pennsylvania.

“Companies Should Pay More Attention to Forming Their Boards”
In an article in the Nov. 10 issue of Gazeta Mercantil (Brazil), Booz & Company Partner Paolo Pigorini (South America) said although creation of three differentiated levels for listings on the São Paulo Stock Exchange (Bovespa) has grown more secure for foreign investors, the model is in need of critical adaptations like the formation of boards of directors and the rights of minority stockholders. “Our perception indicates that many companies orient the creation of their governance on ‘immediatism,’” Pigorini said, referring to the findings of a study by Booz & Company. “The company will only manage to organize good governance when it gets to the stock exchange and sees the market as the beginning of possibilities to activate its strategic plans.” The Booz & Company study encompassed a group of 15 companies, some already listed and others preparing for future access to the equity market.

“Inflation ‘Could Make GCC Vulnerable’”
In the November 4 edition of Gulf News (UAE), Booz & Company experts urged the governments of Gulf countries to move towards a more sustainable macroeconomic policy framework that supports continued economic growth while keeping the region’s severe inflation under check. “The GCC must move from a model characterized by overheated economic growth to one that emphasizes growth through sustainable development beginning with fighting inflation comprehensively,” said Partner Rabih Abouchakra (Middle East). Nations that choose a sustainable development growth model, and manage inflation, typically have an easier time sustaining real GDP growth and can recover far more quickly from contractions, said Booz & Company experts. “Historically, Gulf countries do not have both institutional and policy frameworks on both fiscal and monitory policy front to fight inflation,” added Partner Richard Shediac (Middle East). “Now is the time for policymakers in the region to develop strong inflation-fighting and macroeconomic stability systems.”

“Many Americans Looking to Spend Less on Food”
The November 3 issue of The Los Angeles Times was among major media outlets that featured the Booz & Company study, “Consumer Spending in the Economic Downturn.” The study utilized economic and survey data of early 1,000 households to identify themes and provide insight into how the current downturn has affected various population segments and purchasing behaviors in the U.S. The findings have generated a flurry of publicity for the firm, including coverage in USA Today, Business Week, The Associated Press, Washington Post, Sacramento Bee and Inc. Magazine.

“Identifying Shariah-Compliant Equities a Challenging Task”
An October 28 International Business Times article cites the Booz & Company report, “Competing Successfully in Islamic Finance.” The report states that the “total volume of Islamic assets in 2008 is estimated to be US$ 500 billion. Additionally, in 2000 the total number of Islamic funds worldwide has been 102 funds growing annually with a CAGR of 28% and is expected to reach 925 funds in 2009.” The article discusses the demand for Shariah-compliant investment products among Islamic bank customers and the challenges this presents for the banks to adhere to the changing guidelines of the Shariah scholars.

“Responsible Investments To Go Mainstream”
In the October 23 issue of Global Pensions, Booz & Company Partner Charles Teschner (Europe) predicted that responsible investments (RI) will soon be a significant trend in asset management, representing a paradigm shift in the investment landscape. “We expect the RI market to become mainstream by 2015 at the latest,” Teschner said. “RI is becoming more and more significant in the investment world, with raised social awareness and improved performance factors, as well as the fact that pension funds and other institutional investors are increasingly required to disclose their policies and positions.”

“Múltis Investem US$492 Bilhões em Inovação (Multinational Companies Invest US$492 Billion in Innovation)”
Booz & Company’s 4th annual Global Innovation 1000 Study, which revealed that companies that invested more than 60 percent of their R&D spending beyond their borders during the past three years enjoyed superior performance, has generated international coverage. “In a scenario of recession, companies tend to slow down investments to protect profitability, but this will depend on the situation of each company,” said Partner Leticia Costa (South America) in the October 21 issue of Valor Econômico (Brazil). In the study, the firm’s Innovation team headed by Partners Barry Jaruzelski and Kevin Dehoff analyzed the world’s top 1,000 public corporate research and development spenders in what continues to be the world’s most comprehensive effort to assess the influence of R&D on corporate performance. Some of the other publications to cover the study include BusinessWeek, Automotive News (U.S.),Vedomosti (Russia), Swissinfo, ComputerWeekly.com (UK); and wallstreet-online.de.

“Telecoms Industry Full Of Ins And Outs”
In the October 21 edition of The National (UAE), Booz & Company Principal Hilal Halaoui said that mobile operators are looking beyond handsets and phone calls, seeking to leverage their current position to become major players in the IT services business. “Companies have realized that they have a wealth of content and applications, so they have moved into the mobile space because of the opportunity,” Halaoui said. “On a mobile you can have Facebook, voice-over IP and applications. It is seamless, and it’s ubiquitous.” Many technology companies are working around the clock to establish themselves with almost 2.5 billion mobile users worldwide.

“The Age of Frugality”
The October 20 edition of BusinessWeek (U.S.) includes a prominent mention of Booz & Company’s recent Consumer Spending Survey that showed consumers are cutting costs and tightening their belts in response to the current economic slowdown. In a survey of nearly 1,000 households, Booz & Company researchers found that 43 percent of respondents said they are eating at home more and that 25 percent were cutting spending on hobbies and sports activities. And in both cases, consumers said they would continue doing so even when the economy improves.

“Lektion für Kids und Banker (Lesson for Kids and Banker)”
The October 17 edition of Handelsblatt quoted Senior Partner Klaus-Peter Gushurst (Europe) in an article about Deutscher Wirtschaftsbuchpreis 2008, the second-annual German Economic Book Award. “An important book at the right time,” Gushurst said of the top book, Das Geld reicht nie (The Money is Never Enough) by Winand von Petersdorff. “This book can be a decisive help for the further education of teenagers and to open teenager’s eyes to the world. It is also the basics for parents to explain the economy.” The Economic Book Award, which was bestowed in a ceremony at the Frankfurt Book Fair, is sponsored by Booz & Company in partnership with Handelsblatt and Frankfurter Buchmesse.

“Management Consulting: The Positive Is A Swift Career Progression”
In an article in the October 13 issue of Financial Times Online that explored management consulting as a career, Booz & Company Senior Consultant Rebecca Johansson (Europe) said it was the challenge of using logic and structure to solve problems for clients that brought her to Booz & Company. “You are not tied to a particular job, function or industry,” said Johansson, who joined the firm in 2004. And though Johansson described the competition to crack the strategic consulting field as “competitive,” she said “the upside” was that “that progression is guaranteed and quick.”

“Unclogging the Deal Pipeline”
In an interview with CNBC, Booz & Company’s Senior Partner for Mergers and Restructuring Gerald Adolph discusses how the financial crisis is impacting recent M&A deal volume and identifies which deals are likely to still get done.

Watch video >

“Yielding New Benefits from Public-Private Partnerships”
An article in the October 6, 2008 issue of AME Info (UAE) examined a new report from Booz & Company that demonstrates how government organizations in the Middle East and North Africa are tapping the private sector for capital, technology, and expertise to drive economic growth. Creation of these infrastructure public-private partnerships or PPPs is a way for governments to turn to the private sector for capital, technology and expertise to finance, develop and manage public-sector infrastructure projects. “With the right circumstances, PPPs can be winning partnerships; governments meet obligations without debt, the public receives better or more services, and the private sector is presented with a wider market,” said Partner Richard Shediac (Middle East). To date, telecom projects have received the most investment—but as Partner Rabih Abouchakra (Middle East) explained, the energy sector has the greatest number of projects, which, “when broken down into generation, transmission, and distribution sub-sectors, creates numerous ventures for private investors.”

“The Role of CFOs in Deal Making”
In this bylined article from the October 2008 issue of Financial Executive, Booz & Company Partners Irmgard Heinz (Germany), Jens Niebuhr (Germany), and Justin Pettit (USA) discuss the many hats CFOs wear in a company’s merger and acquisition transactions. As the article explains, there’s a reason why the role of “deal maker” is top of mind for most CFOs: “…mergers and acquisitions are often the most significant capital investment a company makes in the course of a year. Acquisitions represent a huge opportunity—and also a huge risk. A bad deal can permanently damage the reputation of an executive team and its CFO.” The article goes on to describe the three essential merger roles for CFOs—merger strategist, synergy manager, and business integrator—and six rules CFOs need to follow to ensure a successful and profitable transaction.

“European Smart Grid Faces Different Hurdles from United States”
In a bylined article in the October 2008 issue of Natural Gas and Electricity, Booz & Company Principal Rolf Adam and Partner Walter Wintersteller (Europe) argued that public pressure is growing across Europe for the transformation of the traditional electric grid into an intelligent network—a Smart Grid. As such, “a well-defined holistic strategy that takes into account how best to provide value to the customer is the first step in unlocking the commercial possibilities of the Smart Grid,” they wrote. “Only after defining such a strategy should utilities begin to tackle the challenge of choosing the best technology.” Massive investments in transmission and distribution networks are being planned across Europe—up to €200 billion by 2020, with up to €90 billion directly related to investment in Smart Grid technology.

“Supply Chain a Carbon Target”
In the September 29 issue of The Australian, Booz & Company Senior Associate Greg Lavery (Australia) said while the Australian Government continues its consultations on a proposed emissions trading scheme, British companies have begun looking for creative ways to reduce their carbon footprint by reducing energy use in their supply chains. “In a carbon-constrained environment, energy-efficiency measures represent the low-hanging fruit for companies wanting to reduce any direct emissions liability or exposure to rising energy prices,” Lavery said. “(Supply chains offer) “surprising distortions or anomalies that open up the potential for deep cuts in the emissions footprint.”

“Wir Suchen Markenchefs, Die Auch General Manager Sind (We Want Brand Managers Who Are General Managers Too)”
In the September 25 issue of Handlesblatt, Booz & Company Partner Gregor Harter (Europe) said that effective marketing decision-makers need to be savvier and more informed that ever to ensure their companies reach the best advertising channels. “To hit the right target customer segments, it is vital to dynamically plan the right media mix,” he said. “It’s no easy task. Nevertheless, some marketing managers solve the challenges with outstanding skill.” Harter headed a Booz & Company team that hosted the third-annual “CMO of the Year” Award September 24 in Frankfurt.

“Se Buscan Empresarios con Carácter (Looking for Charismatic Entrepreneurs)”
The September 21, 2008 issue of La Razón (Spain) cited the Booz & Company study, “Globalization of White-Collar Work,” and quoted Partner David Suárez (Europe). “The ability to design new models to attract talent globally and to build organizations that integrate the talent anywhere in the world effectively will be a critical competitive advantage for companies,” Suárez said.

“Cultural and Structural Shifts Rise Out of Risk-Taking Titans’ Hard Fall”
In an article in the September 21 edition of The Washington Post, Booz & Company Partner Seamus McMahon (North America) predicted that in the wake of the current credit crisis, investment bankers will need to work more closely with commercial banking colleagues, who they often considered stodgy and risk-averse. “There will be a merger of two ways of doing business,” said McMahon. “The stand-alone investment bank may have been an accident of history. It had its run and it’s over or at least vastly diminished.”

“Les Groupes Pharmaceutiques Doivent: Ils Réinventer leur Modèle? ” (Pharmaceutical Croups: Do They Have to Re-invent their Business Model?)
In an article in the September 15 issue of La Tribune (France), Booz & Company Partner Matthias Bünte (Europe) argued it is imperative that pharmaceutical companies look to achieve new business models to stay competitive in the marketplace. “Because of price controls by governments and low productivity, yes, it is absolutely essential that pharmaceuticals re-invent their business models,” he said.

“Can the New CEO End a Culture Clash After a Merger?”
In a bylined article in the September 10 edition of the Financial Times, Booz & Company Partner Richard Rawlinson (Europe) argued that the key for a new CEO following a merger is to draw on the best of the past organizations, while showing a more attractive way forward. “A new CEO can do that, but still must find allies in the old factions,” Rawlinson wrote. “Together, they must personally demonstrate new ways of behaving, and it is better to be explicit than subtle about what these are. Inevitably, some executives will go: more often than not, cultural changes imply people change.”

“Escassez de talentos irá comprometer o crescimento (Talent scarcity will jeopardize growth)”
In a front-page article in the September 1 issue of Valor Econômico (Brazil), Booz & Company CEO Shumeet Banerji (Europe) said that the biggest obstacle for growth in Brazilian and Indian companies will be a scarcity of qualified employees, adding that the lack of talent is a worldwide problem and could become the major limitation for businesses. “It is beyond capital and technology,” he said. Among the developing nations of Brazil, Russia, India and China (BRIC), Banerji said that China is the single country that has been preparing to face the talent shortage. “The country invested not only in universities, but in the technical education and foreign language training,” Banerji said. “It is planning 10 years in advance.”

“Speed Kills”
In an article in the September 2008 issue of Conde Nast Portfolio, Booz & Company Partner Kaj Grichnik (Europe) was quoted on the toll that restructuring can put on employees, particularly in a sagging economy. With most restructuring efforts following a predictable pattern of reduced budgets, layoffs among well-trained workers, and new-operations in cheaper parts of the world, manufacturers are alienating themselves from their most critical asset: their employees. “In exchange for working harder and harder, most manufacturers offer their workers static salaries, decreasing benefits, increasing anonymity, and abuse from middle managers,” Grichnik said. “And when workers feel that they are not being treated with respect, the company suffers.”

“Standardsoftware für Banken—Zwischen Wunsch und Wirklichkeit” (“Standard Software for Banks—Between Desire and Reality”)
In a bylined piece in the September issue of Die Bank (Germany), Booz & Company Partner Johannes Bussmann (Europe) and alumnus Markus Zahn wrote that banks should focus on standard software to avoid falling victim to cost and complexity problems of their own information technology in the next years. “In customer management or stock brokering, standard software is already common, but now systems like account management, banking oversight or classical deposit business, which concern the structural core of banks, are in the course of the discussion,” they wrote. “Eventually bank-IT has two sides of a coin: on the one hand it puts pressure on the cost factors and on the other hand it is a critical factor of success to stand out from the competition in products and services.”

“The Taxman Cometh”
In the September 1 edition of CFO Magazine, Booz & Company Partner Vikas Sehgal (North America) said that efforts by the Indian Government to extract more tax revenue from foreign business has caused some companies to look elsewhere. Some foreign companies with businesses in India are considering locations such as Eastern Europe and Mexico, he said. Meanwhile, other factors such as the strengthening rupee, the dollar’s recent decline and rapidly rising labor rates make India even more expensive for foreign clients. “To survive, Indian firms will need a very clear value proposition, backed up by experience and manpower,” said Sehgal.

“Lufthansa kauft in Belgien zu (Lufthansa is investing in Belgium)”
In the August 29 issue of Financial Times Germany, Booz & Company Senior Partner Jurgen Ringbeck (Europe) is quoted in an article on Lufthansa’s recent investment in SN Brussels Airlines. “Brussels Airlines is a good deal,” he said. “By investing in Brussels Airlines, Lufthansa can win more regular customers in Belgium.”

“US Could Become Net Exporter While Demand For Gasoline Falls”
An August 27 article in the Financial Times featured a new Booz & Company report that analyzes scenarios in which the U.S. could soon become a net exporter of gasoline, given shifts in demand, biofuel mandates and growth in alternative vehicle technology. Also citing increased refining capacity, the article quotes the Booz report: “It has opened up the possibility that the US will become long in gasoline (a net exporter rather than a net importer)… This is particularly likely if demand is reduced by an economic slowdown or a recession.” The article also mentions demand increases in emerging economies as contributing to the changing landscape for refiners.

“Not Just Effective But Efficient Successful Marketing In An Era Of Fragmented Media”
In the August 24 issue of Al-Bawaba (UAE), Booz & Company Partners Gabriel Chahine and Karim Sabbagh (Middle East) were quoted in an article that explores original research into the challenges faced by Chief Marketing Officers (CMOs). While the types of media for potential marketing spend are growing, overall budgets are not—explaining why the average tenure of the CMO has shortened to 23 months and made the job “bigger, more complicated and less forgiving,” said Chahine. One of the ways that CMOs can begin to meet these enormous challenges is by maximizing the efficiency of marketing, through practices like volume purchasing, the adoption of best practices and improved back-end operating models. “Efficiency is low on the CMO’s agenda because much of the budget is out of his control—it is handled at the business unit level,” said Sabbagh.

“Shumeet Banerji: Binging On The Booz”
In an interview in the August 22 edition of The Economic Times (India), Booz & Company CEO Shumeet Banerji (Europe) detailed how the firm plans to soon launch operations in Mumbai and Delhi and is re-locating six senior partners from its offices in other parts of the world to India. While he will continue to be based out of London, Banerji plans to personally oversee the firm’s Indian launch. “The Indian market has matured dramatically since I was last here,” said Banerji, referring to a previous tenure when was based in the late 1990s in Mumbai. “Indian companies now have confidence. They have a global agenda and they have access to efficient capital.”

“Crude Awakening: Economies at Risk”
In the August 11, 2008 edition of 7 Days (UAE), Partner Richard Shediac (Middle East) was quoted in an article about the recent Booz & Company report, “Economic Diversification: The Road to Sustainable Development,” which describes how Gulf Cooperation Council (GCC) nations are transforming their economies from being based on a single commodity to robust, diversified ones. “GCC countries’ non-oil sectors have not fully matured and still have pervasive structural gaps… This suggests revenues from oil and gas are not being reinvested effectively in GCC countries.” The article also quoted Principal Chadi Moujaes.

“Islamic Finance Products ‘Attractive’”
In an article appearing August 6, 2008 in APA News Service (Austria), Booz & Company Senior Partner Klaus-Peter Gushurst (Europe) said that finance products in line with the regulations of Islam present “an extremely attractive growth market” in Austria. His comments are based on Booz & Company findings that reveal the market potential for bank products in conformity with Islam is about 230 million euros, with possible annual growth of 20 percent. In Austria, according to Statistics Austria, there are about 400,000 Muslims, with the number expected to rise to 500,000 within five years.

“Guru Interview: Conrad Winkler”
In the August 2008 edition of Emerald Management First, Booz & Company Partner Conrad Winkler (North America) was quoted in an extensive interview in which he details what he calls the “new era” of manufacturing, one in which companies “are going to need to compete” or lose their competitive position. “The difference between those who can compete and those who cannot will become much more stark,” said Winkler. ”Many companies realize this and are putting manufacturing back on their agenda. Others are still treating manufacturing as a cost reduction opportunity, with no competitive advantage.” Winkler and Booz & Company Partner Kaj Grichnik are authors of the new book, Make or Break: How Manufacturers Can Leap from Decline to Revitalization.

“Telecom Duopoly Safe Until 2012”
In the July 28 issue of The National (UAE), Booz & Company Principal Bahjat El-Darwiche (Middle East) was quoted in an article detailing a Booz & Company report that predicts the liberalization of Arab telecommunications markets would remain largely incomplete until new competitors were introduced, a period that could take four years. To do so, says El-Darwiche (Middle East), it is very important that regulators evolve their markets in a managed way. “On one side, don’t rush any decisions and effect market development,” he said. “But on the other side, don’t delay decisions and slow the market.”

“Best-Selling Books: #3 - Always On”
The July 25 issue of the Wall Street Journal’s weekly “Book Index” ranked Always On: Advertising, Marketing and Media in an Era of Consumer Control by Booz & Company Partner Christopher Vollmer (North America) the number three best-selling business book for the week. The accompanying WSJ.com article highlighted Vollmer’s book as a new addition to the list. Other books on this week’s list included such well-known titles as Jim Collins’ Good to Great (#4) and Malcolm Gladwell’s The Tipping Point (#13).

“Introducing Booz & Company”
In the July 23 edition of CFO-news.com (France), Booz & Company CEO Shumeet Banerji (Europe) provided insight into what corporate leaders look for when selecting a management consulting firm. “Leaders of companies and governments know the magnitude of the challenges they face,” Banerji wrote in a bylined piece. “They are not looking for rubber stamps. They need advisors who have the courage of their convictions, who will tell clients what they need to hear. And these leaders are looking for ways to establish a global enterprise, even if that means learning to synthesize contradictory perspectives from multiple places.”

“O DNA da TI no Brasil (The IT DNA in Brazil)”
In the July 22, 2008, issue of InformationWeek Brasil, Booz & Company Partner Renata Serra (South America) was quoted in an article about a Booz & Company study, “IT Org DNA.” “In mature economies, there are clearer rules concerning IT’s role and practices, which avoids those projects that can be cancelled just to save money,” said Serra.

“Apple’s Bright Shining Star: The Mac”
The July 21, 2008 edition of TheStreet.com quotes Partner Barry Jaruzelski (North America) in an article that explores how strong sales of the Mac in the previous three months have pushed Apple into the third position in the U.S. market for the first time, behind Dell and Hewlett-Packard. “People tend to lose focus on the Mac,” said Jaruzelski. “The Mac has been in ascendancy and is gaining market share and going forward. More of the action is going to be around the continued revitalization of the Mac.”

“Population Growth to Push UAE Telecom Expansion”
In the July 19, 2008 issue of Gulfnews (UAE), Partner Ghassan Hasbani (Middle East) is quoted in an article explaining how the overall Middle East telecom market is reaching saturation levels. Booz & Company research indicates that the sector experienced a compound annual growth rate of 44 percent between 2003 and 2007, with subscribers increasing from 24 million to 103 million. “Going forward, high growth levels will become increasingly difficult to sustain by relying only on traditional expansion,” said Hasbani. “So cross-border consolidation is expected to become increasingly common in the region.”

“Boomers, Boomers, Everywhere—and Quite a Drop In When They Go”
A July 16, 2008 article in Hispanic Business places Booz & Company among the vanguard of management consulting firms creating programs to assist multinational oil companies in capturing the knowledge of outgoing workers while developing the skills of younger workers with competency programs. The article investigates how the U.S. exploration and production industry is gearing for expected mass retirements over the next few years of “Boomer-aged” employees, particularly in middle management.

“Breaking Up is Hard To Do”
In the July 10 issue of The Economist, Senior Partner Gerry Adolph (North America) is quoted in an article that explores the steadily growing number of corporate sales worldwide, and what senior executives should do to ensure value. As well as touting a division to potential buyers, managers must assess the impact its departure will have on shared corporate resources, such as finance and legal services. “Firms that don’t do their homework carefully risk being left with lots of needless overhead,” said Adolph.

“Skills Shortage Stunting Growth”
In the July 9, 2008 issue of Gulf Weekly (Bahrain), Partner Karim Sabbagh (Middle East) is quoted in an article that explores how a serious shortage of skilled professionals in the Middle East is threatening to stall the region’s oil and gas boom. “The oil and gas industry in this region cannot afford to be stunted by something as basic as acquiring a competent workforce,” said Sabbagh. “This is a problem that can have considerable consequences to this region.”

“Versorger Wollen in Smart Grids Investieren” (Suppliers Want to Invest in Smart Grids)
In the July 4 issue of Dow Jones Energy Weekly, Principal Rolf Adam (Europe) is quoted in a piece that examines the supplier, Versorger, in its strategy to invest in smaller grids.

“France Telecom Bläst Fusion von TeliaSonera ab” (France Telecom Cancels Fusion with TeliaSonera ab)
In the July 1, 2008 issue of Financial Times Deutschland, Partner Roman Friedrich (Europe) is quoted in an article that examines the canceling of an agreement between France Telecom and TeliaSonera.

“MTV Puts New Advertising ROI Metrics Into Rotation”
In the June 29 edition of Brandweek Magazine, Booz & Company Partner Chris Vollmer (North America) is quoted in an article that explores how the cable network is offering advertisers a new system that quantifies their media spends. According to Vollmer, the concept is a direction that other large media companies should explore. “Media companies sit on top of so much information (on) what resonates with the consumer,” he said. “They are creating and aggregating audiences every day, and they are in a better position to help marketers.”

“Saint-Gobain Expands Glass Capacity With New Production Line”
In the June 23 issue of Gazeta Mercantil (Brazil), Booz & Company Partner Leticia Costa (South America) is quoted in an article that examines the expansion of the Brazilian company, Saint-Gobain.

“Why management is child’s play”
In the June 23, 2008, issue of The 7 Days Daily (UAE), Principal Fabrice Saporito (Middle East) is quoted in an article about the Booz & Company study, “Learn to Innovate from your Own Kids.” “Parents are amazed by the ability of their kids to learn at an amazing pace, and believe their children’s ability to learn and create is linked with their stage of development in life,” said Saporito. “Experiences with senior managers of multi-national companies rather suggest that context has often more to do with innovativeness than age.”

“UAE’s Managers Can Learn A Lot From Example Set By Children”
According To A New Study From Booz & Company

Booz & Company Principal Fabrice Saporito (Middle East) is quoted in an article in the June 22 issue of Al-Bawaba (Jordan) that explores how managers can learn to innovate more effectively by having the courage to learn and experiment and create the right environment for innovation as children do. The comments are based on the Booz & Company survey, “Mastering the Innovation Challenge.”

“El buen gobierno dispara los despidos de los consejeros delegados en la última década”
Governance control measures increase CEO succession rates in the last ten years

Booz & Company’s major study “CEO Succession 2007: The Performance Paradox,” is the focus of an article in the June 16 edition of Expansion (Spain).

“Building a New Booz”
Shumeet Banerji is the CEO of Booz & Company, a New Global Firm Poised for Commercial Success

Booz & Company CEO Shumeet Banerji is Named to the list of Top 25 Consultants for 2008 by Consulting Magazine. An article with comments by Banerji appears in the magazine’s June issue.

“How to Get It Done”
The June 16 “What’s Offline” column in the New York Times featured the June cover story of the Harvard Business Review, authored by Senior Partner Gary Neilson and Principals Karla Martin and Elizabeth Powers (North America) about what it takes for organizations to execute effectively.

“A Closer Look at the Biofuels Future”
In the June 16 edition of Emirates Business 24/7 (UAE), a bylined piece by Senior Partners Bill Jackson and Eric Spiegel and Partner Leslie Moeller (North America) explored the truth of prevalent assumptions regarding biofuel’s promise and its impact on markets and the environment. Contributing to the article were Praneet Gupta, Martha Turner, and Frank Bogaert.

“The ICT E-volution”
On June 10 in AME Info (UAE), Booz & Company Partner Karim Sabbagh (Middle East) is quoted in an article that examines how nations in the Middle East and North Africa are developing telecommunications sectors.

“The iPhone Doesn’t Ring with Business”
Booz & Company Partner and Chief Marketing Officer Barry Jaruzelski (North America) is quoted extensively in a June 10 piece in The Street.com that explores sales of the iPhone.

“Bad Bosses Don’t Get the Boot”
A June 9 article in Management Today (UK) draws on research from Booz & Company’s seventh-annual CEO turnover study to examine why poor job performance for CEOs doesn’t guarantee dismissal.

“Demand for Product Engg Services to Grow”
On June 3, an article in Business Standard (India) cites the Booz & Company/NASSCOM Study: “Globalization of Engineering Services—The Next Frontier for India.”

“Special Report: 'Staffing Issues”
A June 1 article in China Economic Review explores Booz & Company’s “China Manufacturing Competitiveness 2007 – 2008” study.

“IT Role In Healthcare Increases”
The May 29, 2008 edition of ITWeb (South Africa) quotes Booz & Company’s Ramez Shehadi (Middle East) on how on-demand access to medical information benefits the healthcare industry.

“How To Get To The Top”
A May 29, 2008 article in The Economist cites research from Booz & Company’s seventh-annual CEO turnover study to analyze why Europe is a more dynamic and harsher environment than the U.S. or Japan for chief executives.

“India’s Next Big Job Grab: Engineering Services”
A May 29, 2008 article in Computerworld cites the Booz & Company/National Association of Software and Service Companies (Delhi) report, “Globalization Of Engineering Services—The Next Frontier For India.” The article quotes Booz & Company’s Vikas Sehgal (North America).

“Company Finance Alert—Taro Rejects Sun Merger”
A May 29 article in BMI Industry Insights (Middle East, Africa, UK) about the termination of a proposed merger of Taro Pharmaceutical with India’s Sun Pharmaceutical quotes Booz & Company’s Edward Tse (China).

“High Quality Can Beat The Credit Crisis”
In a special report May 29 entitled “Business of Luxury 2008,” The Financial Times quotes Booz & Company’s Gerald Adolph (North America) on how the current financial slowdown affects the business of luxury goods.

“Disappointing Results? The Manager Saves His Job”
The May 28 edition of Il Sole 24 Ore (Italy) quotes Booz & Company’s Fernando Napolitano (Italy) in an article about the consulting firm’s seventh annual CEO turnover study.

“Aufsichtsräte greifen härter durch”
Supervisory boards taking a tougher line

The May 27, 2008, issue of Handelsblatt quoted Booz & Company’s Stefan Eikelmann (Germany) in an article about Booz & Company’s landmark study, “CEO Succession 2007: The Performance Paradox.” "Today’s Supervisory boards are significantly more demanding, and act more quickly than they did ten years ago," said Eikelmann. "The rules of good corporate management are biting."

“CEO Security: No Replacements–Lack of Deep Bench Can Help Preserve Poor Performers”
A May 27, 2008 Wall Street Journal article uses findings from Booz & Company’s seventh annual CEO turnover study to discuss why poor-performing CEOs aren’t losing their jobs. Article cites Booz & Company’s Gary L. Neilson (North America).

“CEO Turnover Declines”
Booz & Company’s Richard Rawlinson (UK) is featured in a May 27, 2008 CNBC Europe segment discussing the consulting firm’s seventh annual CEO turnover study.

“Booz & Company to Focus on Consulting Work After Split”
The May 23, 2008 edition of Washington Business Journal features an article on the new company’s launch, strengths, and business objectives going forward. Booz & Company’s Barry Jaruzelski (North America) is cited.

“Booz & Company Starts Second Incarnation”
The May 21 edition of the Germany-based Handelsblatt cites Booz & Company’s Stefan Eikelmann (Germany) in an article about the separation from Booz Allen Hamilton.

“Booz & Company selects BRIC as a Priority”
The May 21, 2008 edition of the Brazil-based Economico Valor cites Booz & Company’s Ivan de Souza (South America) in an article about the new company, with a mention of Brazil as one of its priority markets going forward.

“Booz & Company Launched as a Global Management Consulting Business”
The May 21, 2008 edition of Financial Times features an interview with Booz & Company CEO Shumeet Banerji discussing the commercial practice’s split from Booz Allen Hamilton and its trajectory going forward.