In the News

“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.

“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.”

“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.”

“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.

“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.

“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.

“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.

“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.”

“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.

“‘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.

“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.

“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.

“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.”

“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.

“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.”

“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 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.”

“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.

“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)

“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.

“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.

“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.

“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.

“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.

“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.”

“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.

“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.

“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.”

“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.

“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.”

“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.”

“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.”

“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.

“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.”

“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.

“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.

“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).

“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.

“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.

“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.

“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.

“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).

“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 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.

“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.