美帝管理咨询行业报告 Management Consulting in+the US Industry Report.ppt

1,2,2,2,3,5,5,6,9,WWW.IBISWORLD.COM,Management Consulting in the US September 2011,Help wanted:Businesses will seek consultantsadvice on restructuring as the economy recoversIBISWorld Industry Report 54161Management Consultingin the US,September 2011,Caitlin Moldvay,2 About this IndustryIndustry DefinitionMain ActivitiesSimilar IndustriesAdditional Resources4 Industry at a Glance5 Industry PerformanceExecutive SummaryKey External DriversCurrent PerformanceIndustry Outlook11 Industry Life Cycle,16 International Trade17 Business Locations19 Competitive Landscape19 Market Share Concentration19 Key Success Factors20 Cost Structure Benchmarks21 Basis of Competition22 Barriers to Entry23 Industry Globalization24 Major Companies24 Accenture Ltd.25 McKinsey&Company,31 Regulation&Policy31 Industry Assistance32 Key Statistics32 Industry Data32 Annual Change32 Key Ratios33 Jargon&Glossary,26 Marsh&McLennan Companies Inc.13 Products&Markets,13 Supply Chain13 Products&Services14 Demand Determinants15 Major Markets,29 Operating Conditions29 Capital Intensity30 Technology&Systems30 Revenue Volatility,|1-800-330-3772|,2,WWW.IBISWORLD.COM About this Industry,Management Consulting in the US September 2011,Industry DefinitionMain Activities,Management consultants provideadvice and assistance to businesses andother organizations on managementissues such as:strategic andorganizational planning;financialThe primary activities of this industry are,planning and budgeting;marketingobjectives and policies;humanresource policies,practices andplanning;production scheduling;andcontrol planning.,Actuarial,benefit and compensation consulting servicesAdministrative and general management consulting servicesHuman resources consulting servicesMarketing consulting servicesProcess,physical distribution and logistics consulting servicesThe major products and services in this industry areCorporate strategyFinancial advisoryHuman resources and benefitsIT strategyMarketing and salesOrganizational designProcess and operations management,Similar Industries,54121c Accounting Services in the USAccounting firms provide financial and associated management services.54121d Tax Preparation Services in the USAccounting firms provide financial and associated management services.54133 Engineering Services in the USConsulting engineers help oversee the planning and designing of construction and industrial operations.54151 IT Consulting in the USIT consultants help plan and design computer systems.This industry is being increasingly linked withmanagement consulting.54182 Public Relations Firms in the USPR firms are brought in to ensure that a clients image and perception among customers and competitors ispositive.54191 Market Research in the USMarket research is conducted when a firm wishes to know more about the market in which they operate.61143 Business Coaching in the USThis is an education-based industry adjunct to management consulting,whereby staff develop skillsnecessary for effective and efficient implementation.,3,WWW.IBISWORLD.COM About this Industry,Management Consulting in the US September 2011,Additional Resources,For additional information on this Consulting Magazinewww.imcusa.org Institute of Management Consultantswww.consultant-Top Consultants Consultant-Newswww.census.gov US Census BureauIBISWorld writes over 700 USindustry reports that are updated upto four times a year.To see all reports,go to,%change,%change,4,and,SOURCE:WWW.IBISWORLD.COM,WWW.IBISWORLD.COM Industry at a GlanceManagement Consulting in 2011,Management Consulting in the US September 2011,Key Statistics Snapshot,Revenue Annual Growth 06-11$165.5bn 0.7%,Annual Growth 11-164.2%,Profit Wages Businesses$14.7bn$78.5bn 354,956,Market ShareAccenture Ltd.3.3%McKinsey&Company 2.4%,Revenue vs.employment growth15105,Corporate prot302010,Marsh&McLennanCompanies Inc.1.4%,0510Year 03,05,07,09,11,13,15,17,01020Year,05,07,09,11,13,15,17,Revenue,Employment,SOURCE:WWW.IBISWORLD.COM,p.24Key External DriversCorporate profitBusiness outsourcing External competitionGovernment consumption and investment,Products and services segmentation(2011)6%2%Financial Marketingadvisory and sales11%Organizationaldesign,Process31%operationsmanagement,Number of businesses16%Human resourcesand benets,p.5,17%IT strategy,17%Corporatestrategy,SOURCE:WWW.IBISWORLD.COM,Industry Structure,Life Cycle StageRevenue VolatilityCapital IntensityIndustry AssistanceConcentration Level,MatureMediumLowNoneLow,Regulation LevelTechnology ChangeBarriers to EntryIndustry GlobalizationCompetition Level,LightLowLowMediumHigh,FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32,5,Summary,WWW.IBISWORLD.COM,Management Consulting in the US September 2011,Industry PerformanceExecutive Summary|Key External Drivers|Current PerformanceIndustry Outlook|Life Cycle Stage,Executive The Management Consulting industryis composed of companies that provideadvice and assistance to organizationson management issues ranging fromstrategic and organizational planningto financial and budget planning.While management consulting is arelatively new industry,major industryfirms are among the most respectedbusinesses in the world,and theiradvice is routinely sought by thecorporate and governmental sectors.With many companies facing post-recessionchanges,demand for consultants will strengthenIn the five years to 2011,industryrevenue has increased at an averageannual rate of 0.7%to$165.5 billion.Compared with the industrys overallgrowth during the past 10 years,thisfive-year rate is somewhat sluggish,reflecting the extent of the recenteconomic downturn.The recessionseffect on industry revenue in 2008 and2009 caused sales to plummet by 4.3%and 3.0%,respectively,as manyprojects were deferred or canceled.Inaddition to decreasing revenue,firmslaid off employees,causing industry,employment to fall by 7.5%in 2008and 4.0%in 2009.Prior to 2008 and 2009,theManagement Consulting industry wascountercyclical to overall economicmovements since companies often relyon consultants to improve their businessstrategies and services.The recessionupended this pattern by causing nearlyevery industry to reduce its consultingbudget.Furthermore,the recessiondecreased industry revenue because thecost of services was revaluated in thewake of declining corporate profit.As theeconomy returns to growth and demandfor consulting services rises again,industry revenue is expected to grow2.4%in 2011.Improved demand will alsoreduce pricing pressures,causing profitto increase to 8.9%during the year,upfrom 5.9%in 2009.In the five years to 2016,industryrevenue is projected to increase at anannual average rate of 4.2%to$203.6billion.In the aftermath of the recession,many industries will face continuedrestructuring,increased regulation andchanges in the consumer landscape overthe next five years.Their new needs willlikely be excellent news for specialistmanagement consultants as they areincreasingly tapped for advice.,Key External Drivers,Corporate profitIn general,firms are more willing to usemanagement consultants when theeconomy is flourishing because increasedcorporate profit enables businesses toinvest in these services.Therefore,growthin corporate profit benefits demand for theindustry.This driver is expected toincrease during 2011,which is a potentialopportunity for the industry.Business outsourcingWhen businesses outsource moreconsulting work,industry revenue will,increase.However,some corporationshave internal consulting divisions,sothey are unlikely to outsource.Thisdriver is expected to increase slowlyduring 2011.External competitionThis industry faces competition fromother industries,such as the ITConsulting industry(IBISWorldreport 54151).When competition fromother consulting industries rises,demand for management consultantsfalls.This driver is expected to,%change,%change,6,WWW.IBISWORLD.COM Industry Performance,Management Consulting in the US September 2011,Key External Driverscontinued,increase slowly during 2011,which is apotential threat to the industry.Government consumptionand investmentThe industry is sensitive to theeconomys growth becausegovernment funds available forconsultancies are generally directlyrelated to the budgetary situation ofgovernment departments.However,there has been some flexibility withgovernment budgets recently,Corporate prot3020,particularly in the defense and securityareas.This driver is expected toincrease slowly during 2011.Number of businessesGeneral growth in the number ofbusinesses and their need for consultingaffects the demand for this industrysservices.As the number of businessesincreases,demand for managementconsulting typically rises as well.Thisdriver is expected to increase slowlyduring 2011.Government consumption and investment32,1010,10,0,20Year,05,07,09,11,13,15,17,1Year,04,06,08,10,12,14,16,SOURCE:WWW.IBISWORLD.COM,Current Performance,The need for effective management ofstaff,strategy,processes,administrationand organization rarely wanes,regardlessof economic conditions.As such,theManagement Consulting industry oftenmoves against economic cycles becausecompanies rely on consultants to improvetheir businesses strategy and services.During a boom,businesses useconsultants to maximize profit andincrease market share.On the otherhand,poor economic conditions tend toincrease demand because clients hope toshield themselves and their companiesfrom the adverse effects of a downturn.,Unfortunately for managementconsultants,this trend changed duringthe recent recession,which affectednearly every industry.In 2008 and2009,industry revenue declined by4.3%and 3.0%,respectively.As aresult,the industry has experiencedonly marginal growth in the five yearsto 2011,with revenue estimated toincrease at an annual average rate of0.7%,totaling$165.5 billion.Duringthe recession,only defense and securityconsulting continued to grow,largelydue to the countercyclical nature ofthese industries.Some nonprofit,7,WWW.IBISWORLD.COM Industry Performance,Management Consulting in the US September 2011,Current Performancecontinued,firms also turned to managementconsultants to improve operations;however,a large portion of this work,was performed on a pro-bono basis,making the effect on industry revenuerelatively insignificant.,In-demand specialties With the US economy slowly pullingitself out of the recession,demand formanagement consulting has primarilycome from large firms seeking to cutcosts and protect profit margins.Thebanking and finance sector is theManagement Consulting industryslargest customer.However,this marketwas hit hardest by Wall Streets collapse,and many firms have been frugal inemploying outside assistance,a factorthat has contributed to slow industrygrowth in 2010 and 2011.Revenue isexpected to increase 2.4%in 2011.Despite this slow growth,countercyclical work has helpedmitigate losses that other industrieshave recently experienced.Forexample,consulting firms withexpertise in restructuring performedwell in the recessionary environment.As the recession caused more firms to,The recession broughtabout a revaluation ofthe cost of services andnegatively affected revenuego bankrupt,corporations thatentered Chapter 11 bankruptcy had achance to restructure their debt withcreditors.Consequently,they tappedmanagement-consulting firms thatspecialize in this area.Furthermore,industry operators that specialize inhuman resources have performedstrongly because of the large numberof layoffs that occurred during andfollowing the recession.Such firmshelped companies reduce the cost oflabor by deciding on the type andsize of layoffs.,Internal consulting groups,Many multinational corporations haveset up their own corporate consultinggroups since 2005.These managementconsultants are hired internally throughthe corporation or from external sources.Such internal consulting groups areformed around practice areas thatinclude organizational development andstrategic consulting and implementationof new business proposals.The development of internalconsulting groups contains severaladvantages for an organization,includingmore in-depth knowledge about thecorporations strategic objectives.Unlikeoutside management consultants whofocus on a variety of different companies,internal management consultants can,better tailor their knowledge and servicesto the organization.Also,internalconsultants are able to keep sensitiveinformation private,and the cost ofinternal management consulting is oftencheaper than third parties.Some third-party consultants havebeen criticized for their cost and thesolutions that they provide.Managementconsultants have also been charged withthe overuse of jargon and stating theobvious during their engagements.Others were accused of offeringstandardized solutions when marketingcustomized solutions to a clientsproblem.Moreover,some industry firmshave increasingly moved away from themodel of engaging one client per,8,WWW.IBISWORLD.COM Industry Performance,Management Consulting in the US September 2011,Internal consulting groupscontinuedEmployment and wages slow,industry at a time,which can pose aconflict of interest to some clients.Consulting firms have tried to engagemore clients at the same time to boostrevenue because of increasedcompetition in the industry.Despite these common criticisms,many organizations continue to hiremanagement-consulting firms becausethe benefits typically outweigh the cost.As the economy slowed and companiesrevenue dried up,many consulting firmsreduced staff numbers.In 2011,IBISWorld estimates the industryemploys about 1.0 million people,representing a five-year average annualdecline of 1.1%.This trend is due tofalling demand and changingrequirements from clients over theperiod.Because of decreased demand forservices,management consultant firmscould do with fewer employees.Senioremployees were laid off,and the numberof incoming junior employees waslimited.Employee numbers increased in2006 and 2007 when the economy wasstill strong,and many management-consulting companies experienced recordrevenue because there was more demandfor work during that period.As theeconomy has begun to improve,demandfor the industry increased in 2010 and2011.Consequently,marginalemployment growth is expected in 2011.Educational requirements for entry-level jobs in this field vary betweenprivate industry and government.Mostemployers in private industry generallyseek individuals with masters degrees inbusiness administration or a relateddiscipline.Some employers also requireadditional years of experience in the field,However,the recession in 2008 and2009 brought about a revaluation of thecost of the industrys services andnegatively affected overall revenue.Theresulting price-based competition placeddownward pressure on profit margins forsome operators.Still,improving demandhas increased profit margins once again.IBISWorld estimates profit will represent8.9%in 2011,up from 5.9%from 2009.Firms have reduced staffnumbers due to fallingdemand and changingrequirements f