In the News
"Top 10 Premium Content Articles of 2011"
At the end of 2011, Computer Weekly placed Booz & Company’s article on Web 2.0 –“Lead Now or Get out of the Way: IT’s role in a Web 2.0 World” - in its Top 10 Premium Content Articles of the year. The article argues that, as new media technologies spread rapidly through companies, often without IT's direct involvement, CIOs and their IT departments must take the lead and not lose control.
"Word of Mouth has Gone Global"
Partner Olaf Acker spoke to City AM on Wednesday 14 December 2011 on the question of Social CRM and why companies should incorporate it in their business strategy. Acker emphasised that it is vital to “build a relationship with clients in the age of the internet and rise of social brands”. He added that, “business who ignore it do so at their cost”.
"Access all areas - the project helping disadvantaged children into top universities"
On 9 September 2011, The Telegraph featured an article on Project Access - a scheme which aims to get disadvantaged students into Russell Group universities. Booz & Company, led by Partner Richard Verity, is involved in the project. Acting as mock examiner, Verity helped one particular student over a course of four sessions to prepare for an interview. Verity recalls that after a month's practice, "his answers showed what a compelling, highly intelligent young man he is". The student went on to win a place at Oxford University to study chemistry.
"The Four Types of CEOs"
Partner Richard Rawlinson wrote in the June 2011 edition of European CEO magazine about Booz & Company's annual CEO Succession Study. "As economic reform slows pace and we move into a new era of risk awareness, the danger at the top of the corporate ladder is less severe", writes Rawlinson; the study found that overall CEO turnover has declined. The article outlines four different management styles of a CEO, citing that operationally involved CEOs are found to have shorter tenure whereas, in contrast, CEO tenure at holding companies is on average a third longer.
"The Essential Advantage"
On 6 June 2011, Partners Cesare Mainardi and Paul Leinwand were interviewed by BBC World Service to discuss Capabilities Driven Strategy and The Essential Advantage. In a conversation with BBC's Peter Day, Mainardi and Leinwand discussed their ideas for turning companies around in difficult times, and how management consultancy came to have such an important place in business.
"Diageo moves to revamp structure"
Partner Richard Rawlinson spoke to The Financial Times on 26 May 2011 on Diageo, the international spirits group, shaking up operational structure as it moves into emerging markets. "The issue is what activities need to be managed close to the market and which ones centrally managed, either because of the need for integrated decision making or for economies of scale," said Rawlinson.
"Surprise Improvement in Retail Results"
Principal Jason Gordon spoke to the BBC Chief Economics Correspondent, Hugh Pym, on the most recent retail results, live on the lunchtime news on 21 April 2011.
"Social Volunteering"
On 31 January 2011, Partner Richard Verity wrote in HR Magazine about social volunteering: "Consultancies run on morale, not money. We have the know-how, relationships and enthusiasm". Verity admits that "social volunteering has not added a penny to our business but it turns hierarchies upside down". Booz & Company's Community Relations.
"Christmas Trading Results"
On 13 January 2011, Principal Jason Gordon spoke to BBC Radio 5 Live and live on BBC News 24 about the results, released by the UK's largest retailers, of Christmas trading. Gordon said that the "bad weather and Boxing Day falling on a Sunday meant that retailers had more problems than they expected" and quantified the impact of the snow at 0.5 percent of sales. However, he states that the "macro-economic effect of public sector job cuts, the VAT rise, and the underlying low level of consumer confidence are the bigger issues."
"VAT increase: shops could put up prices five to eight percent"
On 4 January 2011, Principal Jason Gordon is quoted in The Daily Telegraph: "From the retailers I've been speaking to, I expect prices to increase by between 5 percent and 8 percent. The majority of retailers will 'round up' rather than 'round down'. There have been so many years of price deflation, retailers need to move up prices to stay profitable. The pressure to increase prices has been building for some time, and that time has come now."
"Bold Predictions"
On 3 January 2011, Principal Luca Raffellini made predictions about what lies ahead in 2011 for the chemicals industry in ICIS Chemical Business. He forecasts that, "as chemical executives become entirely comfortable with the fundamentals of high crude prices and China-driven growth, overall demand in 2011 is set to trend gently upward after the anomalies of the last two years" and suggests that "M&A [merger and acquisition] activity and emboldened [private equity] firms will arbitrage the rest."
"Snow sends a shiver through shops"
On 10 December 2010, Principal Jason Gordon spoke to the Financial Times on how "retailers face a nail-biting fortnight in the run-up to Christmas, amid continuing bad weather and impending austerity measures." Gordon suggests that once one retailer "loses their nerve and goes (for significant discounting), there will be a whole stream of people who will have to follow in immediate succession.”
"Three leaders on business execution"
On 5 December 2010, Partner Paul Leinwand was interviewed by The Sunday Telegraph on the subject of corporate strategies. On why corporate strategy often fails, Leinwand proposes that companies should ask themselves basic questions such as "what are we good at?" rather than focusing on growth, new markets and other external factors. He suggests that "the role of capabilities are almost always behind why some companies win and others do not". Coherent companies "build a capability system: 3-6 interconnected capabilities that work together to support the way the company competes". To read more on Booz & Company's Capabilities Driven Strategy, click here.
"Christmas bargains to win over pay packets"
On 26 November, The Daily Telegraph quotes Principal Jason Gordon on the subject of seasonal discounting: "this weekend, I suspect, there will be many discounts on large items where VAT really affects the price: furniture, large televisions and cars. The problem is that next year the amount of money in the consumer pot will be considerably smaller".
"Difficult times spur wave of change"
On 15 November, Partner Richard Rawlinson discussed the "business of consulting" with The Financial Times, specifically that whilst demand from the public sector has fallen in the difficult economic climate, private sector demand has rebounded. In particular, Rawlinson predicts "a rise in healthcare consulting overall" as "pharmaceutical and healthcare industries are big growth areas worldwide".
"Firms bank on growth as demand revives"
Also talking on the "business of consulting" on 15 November 2010, Partner Gagan Bhatnagar discusses financial services with The Financial Times. He proposes that "the outlook is much more positive" and that "financial services are once again looking for expansion opportunities". Furthermore, Bhatnagar suggests that cross-industry is useful, for example, "a retail bank might learn about customer relationship management from the consumer goods industry". Finally, Bhatnagar mentions opportunities in new regulations which will aid "faster time-to-market and easier entry into new regional markets".
"Old customs swept away by strong new currents"
On 10 November 2010, Senior Partner Alan Gemes, spoke to The Financial Times about changes in the private banking sector. Citing Booz & Company's Private Banking Report, Gemes suggests that private banks need to "fundamentally alter both their value proposition and strategy". Furthermore, wealth generation in the future is likely to come from emerging markets; "almost one-third of the world's high net worth individuals will live in the Asia-Pacific region by the end of 2011".
"Research and development spending drops"
On 3 November 2010, Partner Michael Knott was interviewed on BBC Radio 4's Today programme. Discussing the launch of Booz & Company's annual Global Innovation study, Knott explains that the overall global spending on R&D has declined yet, as a proportion of revenues globally, "it has actually still continued to rise, and within Europe and the UK, the decline is not there."
"Big oil's big shift"
In the October 2010 issue of Petroleum Review, Senior Partner Viren Doshi, Principal Hege Nordahl and Adrian del Maestro write about the changes the oil industry face following the spill on the Gulf of Mexico; "not the management of environmental risks, but every aspect of its business".
"Promoted to death"
On 24 September 2010, Principal Jason Gordon spoke to Retail Week about promotions in the retail sector: as retailers rely increasingly on promotions, customers appear to be less willing to pay full price. Gordon points out that "there are large areas of retail that are over-promoted. How do you step back from that?". He suggests "the real differentiator is the ability of retailers to distinguish themselves from rivals and ensure shoppers feel they are getting value, whether through promotions or in other ways".
"China feels the wind of change"
On 5 September 2010, Partner Nick Pennell discusses China's renewable energy plan in The Sunday Times. "The Chinese are doing what any responsible government is doing: they are pulling all the levers they can both on the supply and demand side”, says Pennell, “with both wind and solar, there is the potential for market disruption because the scale of what they are doing is so great. From the Chinese government’s point of view this is an opportunity to develop a new industrial sector." The article mentions that "the one advantage Britain has is in wind power offshore, where most of the large projects are being built. China has just one of these. The government nonetheless faces heavy odds against bringing its visions of hundreds of thousands of green-collar jobs to fruition." Pennell concludes that, "if you have a domestic renewable energy target the size of China’s, it is much easier to imagine building an industrial base round it.”
"My kingdom for a chairman"
On 5 September 2010, Partner Ashley Harshak talks to the The Sunday Times on the subject of foreign CEOs in Britain. Confirming the trend for overseas bosses, the article cites Booz & Company's annual CEO Succession Study which found that, in 2009, 33% of CEOs in Britain were foreign and across Europe, the average was 25%. Harshak comments, "there are some countries where the proportion of foreign chief executives is much higher — for example, Switzerland, which we suspect is due to a small local talent pool and a large number of multinational headquarters." He also suggests "the trend for searching out chairmen in a variety of channels may even have positive consequences. The study found that chief executives 'apprenticed' by chairmen who were once chief executives themselves have a tendency to perform less well in terms of generating shareholder returns."
"Debenhams: all about the bottom line"
In the 9 July 2010 issue of Retail Week Principal Jason Gordon commented on retailers taking measures to "establish and maintain the credentials of own-brands" and ensuring that they put "oomph into their brands through more than just one product." Gordon states that, "marketing, price perception, where you put the product in the stores, freshness of display - it all impacts brand equity".
"Gas glut hastens the demise of coal"
On 27 June 2010 The Sunday Times cited Booz & Company's gas markets study, The next cycle: Gas markets beyond the Recession, noting that "last year was the first time since the 1960s that gas demand fell in Europe, Asia and North America simultaneously". The article highlights that a "five year gas glut could speed the end of coal-fired power in Britain and aid the economic recovery by keeping down household energy bills".
"iPad fever wraps world in wire"
On May 30 2010 The Telegraph quoted Partner Michael Knott on the topic of the consequences of increased data traffic for the telecoms sector. He states that the "cost of bandwidth is not expected to increase, but operators and internet service providers are still spending a great deal of money to increase their overall capacity" and "unless they find a way to change the pricing they are going to be left holding the can for this data explosion".
"Fewer CEOs Getting the Sack"
"UK Makes its Mark on CEO Role"
"Booz & Company Sets Up Virtual Climate Change Team to Serve Industry Practices"
"£110 billion Working Capital ‘Puts Survival Of Companies At Risk"
"Johnson Pressed on Immigration Rules"
"The Constant Traveller on a Mission to Inspire"
"How to Cut"
"A Top Priority When a Business Fails"
"Thin Talent Pool Vexes U.S. Financial Companies"
The Wall Street Journal Europe cited our CEO succession study on 25 June 2009, noting that the financial services industry had the highest rate of forced succession of CEOs in 2008.
"Gas Markets Demand"
On 11 June 2009 Bloomberg cited Booz & Company’s recent gas markets survey, noting that global demand for natural gas will drop this year for the first time in the history of international gas markets, triggering an oversupply that may last for years.
"Turmoil Helps Deliver Job Security for CEOs"
On 21 May 2009 the Financial Times ran three articles on Booz & Company's annual CEO succession study. CEO Succession Survey 2008: Stability in the Storm concludes that the nature of the recession is leading boards of directors of Western companies to stick with the leaders they know.
"How To...Prepare for an Economic Recovery"
An article from The Times on 22 April 2009 cites the need to take a holistic view in a recession. "Review every facet of business activity, assess your competitive position and do not be afraid to challenge received wisdom, Shumeet Banerji, the chief executive of Booz & Co., the consultancy, writes in the magazine strategy+business. This may mean, for example, 'exiting some segments and competing harder in others, including through the acquisition of less well-managed competitors'."
"Who Owns the IT When a Company Divides?"
In an article from the Financial Times’ Digital Business supplement on 12 March 2009 dealing with how to dismantle an IT structure following a divestment, Booz & Company London principal Tanvir Hanif comments that clients are being forced to make decisions faster in the current economic climate. "The resulting 'distressed divestment' situations mean that full due diligence of IT is frequently not completed and the operational and IT assets involved in the divestment have not been fully understood or agreed. This leads to frantic post-deal activity to understand the disentanglement challenges."
"Tourism"
The daily ‘Need to know’ section in The Times on 5 March 2009 cites the new global travel and tourism competitiveness rankings released by the World Economic Forum in partnership with Booz & Company. The UK has dropped from sixth to eleventh in the global rankings.
"Mobile Firms Have to Move With the Times"
The Sunday Times on 15 February 2009 cited Booz & Company’s research—released to coincide with the launch of the Mobile World Congress in Barcelona—suggesting that UK voice and data sales, both mobile and fixed line, will fall from £33.5 billion in 2008 to £32.5 billion in the next five years.
"How Companies Tackle the Interweb Thingy"
A report from the World Economic Forum in Davos on the BBC News website on 30 January 2009 notes that some companies are still struggling to engage with the internet. Digital confidence is key, as Booz & Company’s chief marketing officer Tom Stewart remarks. “The internet is seen by many [consumers] as an extremely dangerous place.” He adds that companies have to tackle the “killers of digital confidence” , from network security to fraud prevention.
"Time For Managers to Stand and Deliver"
The Financial Times on 23 January 2009 cites Booz & Company’s global survey which found that 40% of senior managers dobted their leadership had a credible plan to deal with the current crisis and that 46% doubted that the leadership was capable of carrying out its plans, credible or not.
"The Trouble With Bosses Today"
Anthony Hilton’s City Comment column in the London Evening Standard on 22 January 2009 cites Booz & Company’s survey of 800 senior managers across the world which found that 40% doubted their company’s leadership had a credible plan to address the economic crisis.
"Taking a Breather After a Surge in Growth"
In a 17 November 2008 Financial Times article on the market for management consultancy in China, Booz & Company’s managing director for Greater China, Edward Tse, comments: “I think the global chief executive for a multinational will look at their strategy and will be thinking: ‘Given this overall situation, where is our growth spot going to be?’ and I think most of them will think it’s going to be China.”
"Change Management: Call to Avoid Big Cuts"
A Financial Times article on change management on 17 November 2008 cites Booz & Company’s survey of executives that had led large transformational programmes, with a vast majority stating that, with hindsight, they would have begun the work sooner and emphasised its importance even more.