Académique Documents
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Agenda
Difficult, high stakes situations Help senior executives with their toughest problems These are problems which they cannot solve themselves Lack of relevant expertise Shortage of resources Need for outside objectivity
The type of projects cover a broad scope Often characterised by Driving revenue or profit growth Increasing market share or competitive advantage Changing the way the company thinks and works
Outstanding opportunities for training and development to build a strong foundation in How businesses and markets really work How to make money(!) Interaction with senior-level executives from day one A truly global experience Very good compensation
Team size
Generally small (3-20)
Mixture of local A balance of and global high-level strategy, staffing process and opportunities analytics across a broad range of businesses At the margin, more local office staffing As above, typically across a narrower range of businesses and partners
1-3 months
Small (3-5)
Process/ operations
Operational management
3-9 months
Medium-large (5-50)
Focus on detailed operational and process outcomes Focus on systems architecture, specification and coding
IT
6-18 months
Large (20+)
Rank2
Source: Kennedy 2007 Global Consulting Marketplace Report. 2005 market, defined as Strategy + 50% Operations, is $44.2 BN Notes: 1. Figures include all Oliver Wyman Group companies; 2. Ranked by 2006 revenue
Agenda
What we did: Soup to nuts strategy development Educate key managers (up to and including CEO) on the economics and operating practicalities of branch banking Developed multiple entry strategies (organic, acquisition, combined)
Tangible changes Client acquired SE and then NE regional bank Currently discussing further increases in business footprint (e.g. first mortgage) Visible impact Framework for business value used in client presentation announcing acquisition CEO personally thanked Oliver Wyman team for positive impact on strategy said our work was among the best pieces of consulting he had ever seen
What we did Analysis including aside of market and portfolio review risk diversification benefits and a thorough assessment of core competences within the Group Base case scenario model without international business or with continuing existing business as burning platform for internal commitment Strategic portfolio design with granular entry strategies focused on leveraging competitive advantages and market segments still open for entry Internal readiness and change program as enabler
Client benefit (after 1 year of implementation) 2 divestments of non-core and 2 new market entries done Core competencies strengthened Implementation of new organisational design and cultural change still ongoing
Example case #4 US Fortune 500 chemicals company Financial and commodity risk management
The context: A leading US chemicals company wanted to stabilise earnings in an environment of highly volatile raw material costs and currency rates What we did Developed a quantitative financial and commodity risk management tools - A market model that projects correlated spot and forward prices for a variety of chemicals and FX rates - A company simulator that projects the earning-at-risk driven by - Product pricing managers responses to commodity markets levels - Purchasing managers responses to commodity market levels - Current book of hedge instruments - Future incremental hedge instrument purchases - An optimiser that searches for hedge structures that are efficient from a risk and return perspective Presented recommendations on the design and development of best practice commodity risk management governance processes and infrastructure support
Client benefit Risk management tool enables fact-based quantitative decision-making and the identification of optimal hedging strategies in accordance with risk appetite A clearer understanding of earnings at risk as a result of overall commodity and currency risk management strategy
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Agenda
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Who does it and why? We are looking for outstanding people, whatever their background
Andrew graduated from Imperial College in Electrical Engineering He was heavily involved in the theatre at Imperial, which he continues to do in his spare time He is heavily involved in charity work and recruiting in the office
Miriam graduated from the London School of Economics with a degree in European Political Economy She enjoys running and participated in the JP Morgan Challenge, running with her colleagues and tens of thousands of others for a good cause
Kumaran graduated from Oxford in Economics & Management Represented his college at rugby and cricket, continues to play cricket competitively Edits the satirical office newsletter, plays for the office football team and is heavily involved in recruiting
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Who does it and why? In different ways, each of the consulting firms offer great opportunities for learning and development
First class business training Collaborative environments where everyone contributes to solving problems
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Who does it and why? Opportunities for diverse careers and rapid progression
2001 2002 2003 2004 2005 Transfer
Kath
Supermarket Government Supermarket ISP SABBATICAL!! (UK) (London) (US) (UK, FR, DE) Royal Opera House (London) Steel Mfg. (UK, Paris) ISP (UK) Motor Breakdown (UK) Financial Services (Turkey, Dubai) Climate Group (UK)
2006
2007
to Lippincott
Telco (Finland)
Who does it and why? Opportunities for diverse careers and rapid progression
2002 2003 2004 2005 2006 2007 2008
Sean
Economic Portfolio Sales force Model validation capital management redesign (US mortgage co.) (UK insurer) (UK corp. bank) (UK insurer) Basel II Bulk annuities (UK retail bank) (UK insurer) Strategic asset allocation (Euro insurer) EVRM (S. Africa insurer)
Mobile phone insurance 6 month sabbatical (UK private equity) (15 countries!)
Agenda
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Questions?
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Next steps
Enjoy getting to know different firms Take the opportunity to ask as many questions as you need to This is an important decision We are here to help you make the right decision for you Good luck
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Back-up slides
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OW perspective: Outside-in/customer-led
Life-style segments
Hollyoaks
Occasions
Pub segments
Young local Great local Classic local
City day Friends City night Sex in the City Value food Royale Family Mid-market food Upscale food
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Investment
Pricing
Dcor / Interior
Food
Manager
Offer
Service
Which levers to pull? What investments to make in each lever? Which segments and pubs to target?
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Applying multiple levers The trick was to find the right set of initiatives by pub, executed in the right sequence to generate substantial returns
Sales impact
Indexed sales
Example Pub
Sales Margin
"Disneyland Paris is about to experience their second best attendance year and a record revenue year. I truly believe that the focus your work provided played a big part in enabling this growth. Next year's plans...look even better. "Thanks so much, as none of what we have done to turn this company around would have been possible without your help I strongly believe the decision to hire Oliver Wyman to help us on pricing and segmentation was one of the most profitable everWell done and hope to work with you another time..."
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