Vault Top 25 US Commercial Consulting Firms

Here is a list of Vault's 25 top US commercial consulting firms. Alternatively, you can go to article; however, you will need a subscription to see the other 25 consulting firms from 26 to 50. Enjoy!

2012
RANK  FIRM
1           Bain & Company
2           McKinsey & Company
3           The Boston Consulting Group, Inc.
4           Deloitte Consulting LLP
5           Monitor Group
6           A.T. Kearney
7           Oliver Wyman
8           The Cambridge Group
9           Analysis Group, Inc.
10         Booz & Company
11         Accenture
12         PricewaterhouseCoopers LLP (Consulting Practice)
13         Jabian Consulting
14         Point B
15         Cornerstone Research
16         Censeo Consulting Group
17         Milliman, Inc
18         ZS Associates
19        West Monroe Partners
20        Alvarez & Marsal
21        PRTM (a PwC Company)
22        OC&C Strategy Consultants
23        Putnam Associates
24        Health Advances, LLC
25        Novantas LLC

The Future of Apple

Forbes has article out today on Apple stating that the head of Forrester Research, George Colony, is predicting the demise of Apple. This is in spite of Apple's most recent successful financial quarter. Do you think Apple's best days are behind it? Please provide me your thoughts.

Project Management Template

The ability to manage projects is very crucial, especially in the world of consulting.  Unfortunately, based on my personal observation, project management is not taught in many business schools (especially the one I graduated from).To help would-be project managers, I am posting a simple template I use when managing the various projects at work.

Every project has five distinct phases: Creation, Preparation, Formation, Implementation, and Conclusion (C-P-F-I-C). 

A. Creation
  The Creation phase is where the idea is initially deliberated.  When considering whether or not to
move forward on the project, two questions should be considered:

1. Will the benefits of the project outweigh the costs (cost-benefit analysis)?
2. Is the project actually doable? If so, are the resources available to implement the project?

If you answered no to either or both questions, you probably should not proceed with the project.

B. Preparation

  The Preparation phase is where the planning is done.  In planning, you should considered:

1.  Project justifications

2.  Desired project outcomes

3. Work Breakdown

4.  Team member roles

5.  Project schedule

6.  Project budget

7.  Potential risks and risk mitigation

8.  Project assumptions

9.  Project constraints

C. Formation
  The Formation phase is where the team is assembled or formed.  In forming the team, the
following should be considered:

1. Roles assignment

2.Tasks assignment

3.Tracking system

D. Implementation
  The Implementation phase is where the work is actually done.

E. Conclusion
  The Conclusion phase is when the project comes to an end.  When finishing the project, you should:

1.   Get approval from client for final results

2.   Close all project accounts

3.   Transition people to new assignments

4.    Conduct post-project evaluation

What is the fate of Best Buy?

As we all know Best Buy has not had a very good month so far with their CEO leaving due to “personal conduct” and the greater fact that it cannot stop hemorrhaging money due to retailers like Amazon and Wal-mart selling the same electronic goods at lower prices while maintaining better customer service.   Already, Best Buy is in the process of closing 50 stores throughout the USA (the area I live in has a BestBuy store slated to close by the end of May 2012).   Two questions to ask are:

1.       How did Best Buy get into this situation (crisis might be a better word)?

2.       How does Best Buy get itself back on track to profitability?

To understand how Best Buy got to where it is today, we need a quick primer in business strategy.  Businesses compete in one of three ways:

1.       Low-Cost: A company competes by selling its services/products at very low prices. In this case, consumers view the products/services as commodities, which means they perceive the product/service as having little or no difference in relation to a similar product/service.  As such, consumers are price-sensitive and will buy the more low-priced product/service.

2.       Differentiation with major attribute: A company competes based on one significant sustainable competitive advantage or SCA.  An SCA is an attribute a company does really well over the long-term that cannot be easily duplicated and provides strategic value to both the company and customer. Consumers perceive the product/service as being different to a similar product/service.  As such, consumers are willing to pay a higher premium for the product/service.

3.       Differentiation with various attributes:  In this regards, the company does not have one or two overriding SCAs but various competitive advantages. 

Before I go further, I would like to give credit to my former professor of international business strategy, Dr. Lance Brouthers, who developed this competition model.

For the longest time, Best Buy was utilizing the differentiation strategy with various attributes of market power, customer service, and brand.  More specifically, Best Buy surmounted its competition because while it charged higher prices than it competition (i.e. Circuit City), it located it stores everywhere with staff who were knowledgeable in utilizing the products. As such, consumers were willing to pay a premium on the product in return for the knowledgeable in-person service and the ability to get the product on the spot. 

However, its competitive advantages started to erode with the advent of internet retailers like Amazon and even physical retailers like Wal-Mart who could sell the same product for a lower price.  Quite simply, the competitive environment changed as consumers started viewing the products as commodities.  Plus with services like quick shipping and no hassle return policy (i.e. Amazon), consumers do not have to wait very long to receive their products and can easily return them for almost any reason.  Also, the younger generations are more “connected” then ever and do not need the Best Buy services to put together a computer system.

Best Buy has an inherent disadvantage in regards to its cost structure.  Best Buy has no choice but to the pass on its overhead costs (i.e. labor, building, etc.) to the consumer to stay profitable.  On the other hand, Amazon maintains its inventory in a handful of warehouses so its overhead costs are much lower and the savings are passed to the consumer. In the financial media Best Buy is sometimes referred to as “Best Browse” because consumers simply now go to Best Buy stores to look around and use their smartphones to find a better deal online.

Without a doubt, Best Buy has a tough road ahead.  Some financial media analysts are already predicting its demise.  As stated before, Best Buy has announced the closing of 50 “big-box” stores with maybe even more on the horizon.  Best Buy has also announced the remodeling of some stores tailored to mobile products, which is one of its higher margins areas.  What effect, if any, this will have is unknown but some analysts believe this is too little, too late.  In order to survive, Best will need to develop and successfully execute a very innovative corporate strategic plan.  One idea could be to utilize its big-box store size and lease the space to back to product manufacturers and let them do the heavy-lifting in regards to customer service and sales and Best Buy would derive its profit primarily from rental and some incremental sales revenue.  Best Buy can then focus more on its online presence where it could more easily compete against Amazon.

Ultimately, no one truly knows what the fate of Best Buy will be.  But if it is to survive, it cannot keep operating the way it is now.

Welcome

Welcome to my blog MBA Strategy Consultant where I provide my own take on the world of business .  And yes, I am a consultant (strategy-driven process improvement) with an MBA.