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Booz Allen Essay

1139 words - 5 pages

Booz Allen & Hamilton CaseSynopsis:Booz-Allen was one of the first management consultancy firms in the U.S. They had become a multinational organization with offices and consultants based primarily in three main regions: Atlantic, Latin America, and Asia-Pacific-Japan. However, they were currently faced with the decision of whether or not to merge these regions into one global structure. This global structure idea originated from a plan Booz-Allen put in place in 1993 called Vision 2000. This was basically a goal of the organization to increase knowledge sharing and cooperation among the many divisions of their organization by better aligning employees' incentives to cooperate. This plan started with the reorganization of business units away from a geographical basis and more towards a functional basis. This was very successful and almost everyone in the organization agreed it was for the better. However, the true fulfillment of Vision 2000 involved eliminating all geographical units as a way to give clients the best consultants possible regardless of where in the world they were located. Not everyone at Booz-Allen thought that this was a good idea and the president of Booz-Allen, Brian Dickie, was going to have to make a critical strategic decision for them.Case Notes:•Divided into three regions: Atlantic, Latin America, and Asia-Pacific-Japan•One of first U.S management consultant firms•Majority of firms important clients were multinational companies•Growing competition for clients had also increased the competitiveness for consultants and required them to produce more sophisticated solutions better targeted to the clients individual circumstances•Profit and Loss responsibility was originally allocated to the partners in each geographical region•New compensation program was introduced that provided incentives for cooperation by tying each partners compensation to the overall success of company•Partners began to better balance their efforts between sales and client service•Some felt the new compensation plan reduced motivation in finding new business•Majority, 70-80% of partners were happy with new structure•Stress on consultants and the impracticality of serving clients far from booz-allen offices gave them a footprint expansion strategy•Consulting jobs began to grow much longer in duration and could sometime take years•They began to market only target clients, and trimmed down their client base to only serving 200 clients between 1990 and 1994•Identified consultants needed content, teamwork, and Booz-Allen Institutional knowledge to be successful•Built three systems to spread knowledge: knowledge on-line, innovation teams in charge of information sharing, and hiring of information management experts•These knowledge sharing systems also gave them another product to sell to clients, or systems for best practices transfer•Regional staffing helped matched...

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