The Role of Human Resource Management in Consulting Firms

Michel E. Domsch and Elena Hristozova
Helmut-Schmidt-University / University of the Federal Armed Forces Hamburg,
Germany

1.1 Introduction
1.2 A Framework for Literature Review
1.3 Results of the Review
1.4 HRM as Strategic Partner and Change Agent
1.5 HRM as Administrative Expert
1.5.1 Recruitment
1.5.2 Selection
1.5.3 Training and Development
Training
Socialization and Initial Training
Further Training
Career Development
Coaching and Mentoring
1.5.4 Performance Appraisal
1.5.5 Reward Management
1.5.6 Separation
1.5.7 Personnel Administration
1.6 HRM as Employee Champion
1.6.1 Employee Commitment and Moral
1.6.2 Personal and Family Needs
1.7 Conclusion
References

1.1 Introduction
The importance of human resources for the consulting business is indisputable.
The consulting business (see Appendix I to IV) is seen as a personnel intensive
service (Fritzel and Vaterrodt 2002), the success of which depends to a great extent
on the human resources and, more particularly, on the human capital of consultants
(Höselbarth and Schulz 2005). This resource has been defined as the most
significant or even the only significant strategic and crucial factor of success
(Höselbarth and Schulz 2005; Robertson and Swan 2003; Franck, Opitz and Pudack
2002; Alvesson 2000).
Over recent years both academic and business interest in the consulting industry
has grown rapidly. The most discussed topics within the relevant literature are
the growth of the industry, its market development, the relationship between clients
and consultancies, the evaluation criteria of consulting projects, and the criteria
for selecting consultancies. In the recent years a further topic has become of
central importance for consulting research, namely the issue of knowledge management
in consulting companies (Mohe 2004; Engwall and Kipping 2002).
Although there is widespread interest in different topics with regard to consulting,
and personnel has been defined as the most important resource within this
field of industry, only few contributions deal with the issue of human resource
management in consulting firms. One possible explanation for such a paradox
could be the confidentiality of the consultancies regarding their internal issues
(Mohe, 2004). Another explanation for the lack of (empirical) research done on
HRM in consulting firms could be the hitherto existence of “less formal” and “explicit”
HRM in this industry compared to other industries (Graubner and Richter
2003).
Today however, owing to challenges resulting from the clients’ increasing demand
for high quality service (Höselbarth and Schulz 2005; Graubner and Richter
2003) coupled with the current shortage of personnel (Bornmüller 2005; BDU
2004) there is a need for more awareness regarding the HR policies and practices as well as for a more proactive attitude towards their implementation (Graubner
and Richter 2003).

The present volume aims at investigating specific aspects of the role of HRM in
consultancies derived from the nature of consulting. In order to get a better understanding
regarding the specific aspects of the topic, we first deliver an integrative
review of the existing literature on HRM in consultancies.

1.2 A Framework for Literature Review

Ulrich (1993) differentiates four roles for the up-to-date HRM derived from two
dimensions (see Figure 1.1.). The first dimension represents the focus of HRM
and it ranges from operational to strategic. The second dimension reflects the HR
activities and distinguishes between managing HR processes and managing people.
Crossing these axes we arrive at the four roles of HRM: strategic partner,
change agent, administrative expert and employee champion.

fig

HR as strategic partner is responsible for contributing to the organizational
success, by developing and executing the HR strategies and practices. The role of
change agent is aimed at managing transformation and change. HR professionals
are both guards and the catalyst of organizational culture and the main contributors
with regard to identification and implementation of change processes. The
role of the administrative expert is actually the traditional responsibility of HRM, namely to cope with administrative tasks. In the context of this role HR must deliver
efficient HRM processes for staffing, training, remuneration and promotion.
HR as employee champion is responsible for managing employees’ commitment
and moral. In order to achieve it this role implies an engagement in day-to-day
problems, concerns, expectations and needs derived from the workforce (Ulrich
2000). An empirical study of the roles of HRM (Conner and Ulrich 1997) confirms
the existence of three of the four roles. The data does not discriminate between
the roles of strategic partner and change agent. As a result, using Ulrich’s
conceptual framework and the findings of the study as a basis, we adopted for the
purpose of our integrative review a slightly different framework (see Figure 1.2.).
Furthermore, according to our understanding of personnel work HRM agents include
not only the HR people, but also the management.

fig

Based on the above mentioned framework we run an integrative review within
the literature on HRM in consulting firms with the purpose of answering the following
questions: Which specific aspects of the HRM roles in consulting firms are
discussed within the extant literature?

1.3 Results of the Review

As a result of the literature search we obtained 26 contributions (see Table 1.1.)
that deal explicitly with different aspects of human resource management in consulting
firms. From the total amount, 15 are research and 11 are practice-oriented
articles. The contributors of the practice-related articles are either representatives
of consulting companies reporting about concrete HR practices developed and implemented
in their organization or scholars contributing to practitioners’ magazines.
There are 22 contributions originating from Anglo-Saxon magazines and 5
from German. With regard to the content, the issues range from ergonomics to aspects
of organizational culture.

table

1.4 HRM as Strategic Partner and Change Agent

Not surprisingly, there was only little evidence regarding the role of HR as strategic
partner in consulting firms. The only report on this issue concerns the role reorientation
of the HR department in Accenture, connected with a shift of operational
responsibilities from the HR department to the line management. Due to this
shift the HR department is freer to focus on strategic imperatives and thus to operate
more strategically (Norman and Powell 2004).
In order to execute its new strategic role, HR has to develop new skills and attitudes
to lead change, facilitate business growth and enhance innovation across
the firm. Doing so, the HR starts a change process at the strategic level and executes
simultaneously its role as a strategic partner and as a change agent (Norman
and Powell 2004). More concretely, HR professionals in Accenture have to develop
new skills like guiding and supporting rather than directing and giving answers.
HR will use facilitation and coaching skills to lead change and add value to
the business by building competence at senior director level. In order to ensure
competence for its new roles, HR in Accenture has developed a special tool called
“High impact Program for HR People”. Central to this program are coaching,
mentoring, problem sharing, networking and exchanging support (Norman and
Powell 2004).
A further aspect of the role of change agent in consultancies is transformational
leadership. This style of leadership refers generally to the ability of a leader
to transform a subordinate’s beliefs and values. Transformational leadership is
considered to be an organizational mechanism for responding to increased economic
competition and the demand for innovative services. Thus, supervisors in
consulting companies are more likely to acquire transformational leadership skills
than in other knowledge intensive services (Viator 2001).

1.5 HRM as Administrative Expert

In this part of our contribution we focus on different HR processes in consulting
firms such as selection, training and development, separation and so on.

1.5.1 Recruitment

Against the background of the existing “war for talents”, two specific aspects with
respect to consulting firms appear. First, growth in the consulting industry can be
achieved only by increasing the number of consultants. In this context consulting
firms compete among each other, but also with other dynamic and forwardlooking
sectors (Barkawi 2004; Kubr 2002). The second aspect concerns the relevant
labor market. As consulting firms cannot afford to recruit the “second best”
people, the rejection rate is about 1 to 2 %. Thus, consultancies share the same narrow pool of “suitable” applicants. Additionally to this restriction, the “highest
potentials” are aware of their high value and the broad range of options they have
on the labor market (Barkawi 2004). Forced by such developments, consulting
firms seek to make consulting careers attractive and by doing so to increase their
employer attractiveness.

Since consulting firms recruit mainly from universities and business schools,
the current profile of the potential employees they are trying to attract usually includes
the following features: university degree irrespective of the field of study,
and an age limited between 25 to 30 years (Kubr 2002). For several reasons consultancies
avoid recruiting consultants at senior level. An exception can be made
in special cases when senior people have to start new lines or head divisions (Kubr
2002). For the purpose of recruitment, consulting firms use two main sources:
business enterprises and universities. The mostly used recruitment tools are job
advertisements in business journals and management periodicals (Kubr 2002),
and, more recently, career fairs.

Due to changes in the business environment and increased customer expectation,
consultancies are forced to ensure the superior experience of their staff.
Therefore, a more heterogeneous pool of applicants has to be addressed, where the
applicants are older, more diverse and more experienced compared to the current
practice (Graubner and Richter 2003).

1.5.2 Selection

Selection as a HR process contains two stages: the selection procedure when entering
the organization and the continuous selection during the whole process of
“climbing the pyramid”. Franck and Pudack (1999) define the process of permanent
selection as rank-order tournaments based on the “up or out” rule. These
tournaments are very central to the consulting business in general, as they send
several signals to different targets: customers, applicants and employees (Armbrüster
2004; Franck, Opitz and Pudack 2002; Franck and Pudack 1999). Figure
1.3. depicts the signaling effects resulting from a tough selection procedure and
the recipients of these signals.

fig

As the effect of consulting services cannot be accurately estimated let alone

proved, a firm‘s reputation is very central to this business. By executing rankorder

tournaments, consultancies signalize a “high-quality guarantee” to their clients.

The quality of the human capital is a sign of the service quality (Franck,

Opitz and Pudack 2002). Further, high rejection rates signal selectivity and rationality

to the business environment (Armbrüster 2004; Franck, Opitz and Pudack

2002; Franck and Pudack 1999). The signal of rationality can be explained with

the existing symbolism regarding consultants as “analytically gifted employees”

(Armbrüster 2004).

The tough selection procedure sends signals of “rationality”, “analytically

gifted people”, “intellectual elitism”, and “belonging to the best” also to their own

employees. These symbols are part of the organizational culture in consultancies

(Armbrüster 2004; Robertson and Swan 2003). In this context the importance of

“organizational fit” should be mentioned (Robertson and Swan 2003). In order to

ensure workforces “fit in”, selection procedures are usually based on peer assessment

(Robertson and Swan 2003; Kubr 2002).

A further effect of tough selection is the mechanism of self-selection among

potential applicants. That is why management consultancies invest in “expensive”

personnel marketing events, not only to attract applicants but also to generate long

lists of applicants (Armbrüster 2004; Franck Opitz and Pudack 2002). The high rejection

rates make consultancies highly attractive. This phenomenon can be explained

with the fact that the best candidates on the labor market are forced to apply

for a job in consultancies in order to ensure positive signals are sent to

potential employers about their own human capital (Franck and Pudack 1999).

1.5.3 Training and Development

Training and Development as a HR process contains several sub- processes, some

of which run simultaneously. These are socialization, training, career development

as well as coaching and mentoring. In the following we will have a closer look at

these processes in the particular context of consulting companies.

Training

Consultancies invest in training and development to satisfy the permanently increasing

clients’ expectations and to ensure employer attractiveness (Graubner and

Richter 2004; Hunter 1999).

There are two central questions regarding the intention and effectiveness of

training in consultancies. Is the training aimed at delivering knowledge or at developing

skills? And is the training more effective when delivered in a group or to

an individual? (Hunter 1999). Team work is the main production form in the consulting

industry. Usually teams are mixed with consultants working together with

customers. The human capital of the team is central for the generation of peereffects

in the learning and development (Franck, Opitz and Pudack 2002). Thus,

the group dimension of exercises is very important for the training process in consultancies

Hunter 1999).

The process of training can be divided into two main stages: initial training and

other socialization activities for the new recruit aimed at integrating the new consultants

into the particular consulting philosophy and handicraft as well as into the

specific organizational culture. The second stage is the further training for operating

consultants, including senior consultants, project leaders and partners.

Socialization and Initial Training

There is a range of different objectives a successful initial training has to fulfill:

to ensure the ability of the new consultants to investigate existing situations; development

and “sale” improvements; to establish relationship with the client implement

changes, etc. (Kubr 2002). Typical components of the initial training

process include training courses for new consultants, practical field training at the

client organization and individual study. The individual study happens simultaneously

to the other parts. In addition, there are two evaluation phases, one at the end

of the course-training and one at the end of the field training (Kubr 2002).

Even if T&D policies of consulting firms tend to respect the diversity of the

work force by offering different training activities (Kubr 2002), the redefinition of

the workforce attracted - more diverse in terms of gender, age and experience –

leads to an adjustment of the socialization activities (Graubner and Richter 2003).

The traditional process of quick adaptation to the existing culture, supported only

by a two-week boot camp has to be replaced with a continuous integration, requiring

adaptation not only from the newcomers, but also from the existing members.

For that purpose one or two-day events involving employees with different tenures

seem to be more efficient (Graubner and Richter 2003).

Further Training

The general practice in consultancies shows that training for junior consultants is

more intensive than for the operating professionals (Hunter 1999), probably because

senior consultants are thought to “know their trade” (Graubner and Richter

2003). However consultants’ development is a continuous experience-driven

learning process and the developmental needs for senior consultants, project leaders

and partners should not be underestimated. There are two important reasons

for redefining the attitude towards the training of operating consultants: the extremely

short life-time of managerial concepts and techniques forces experienced

professionals to update their knowledge and skills more frequently. Second, training

can motivate these consultants (Graubner and Richter 2003; Kubr 2002).

Operating consultants can be present as always busy and often traveling individualists

(Kubr 2002; Hunter 1999). In order to meet the needs of these often

traveling professionals, multimedia, internet, and self-study formats can be offered

as training methods. For enhancing cooperation and team work the firm can organize

discussion forums, workshops, meetings and annual symposia (Hunter

1999).

The practice of development centers at KPMG takes into account the training

needs of partners. The firm runs development centers at three levels. The target

group of the third is partners. According to the internal rules of KPMG all partners

have to be reselected every 7 years. As a result of this rule there is a continuous

need for further development at the partner level. Central to this development centre

are strategic issues and personal identification (Oertig and Stoll 1997).

Career Development

Career prospects are seen traditionally as the most important incentive for choosing

consultancy as a profession (Graubner and Richter 2003). The current practice

in consulting firms reveals career development as a 4 to 5 stage process (see Figure

1.4.) that usually takes about 6 to 12 years until the level of partner has been

reached (Kubr 2002).

fig

Successful junior consultants nowadays are no more willing to wait about 10

years in order to become partners (Ibarra 2000). Fast career progression positively

motivates consultants and creates a dynamic and competitive working environment.

However, such progression turns into an organizational challenge in turbulent

times. As a consequence, consultancies can use some career alternatives as

answer to the dilemma of fast progression (Kubr 2002).

One alternative could be to reorient the firm to more complex assignments and

so to increase the demand for senior consultants without partnership (Graubner

and Richter 2003; Kubr 2002). There are two further considerations regarding this

initiative. As only few consultants can obtain a partnership, there is a need for developing

other incentives in order to secure employer attractiveness. Secondly,

since new recruits in the future will tend to be more experienced than now, career

development will have to learn to integrate such newcomers who have already developed

know-how (Graubner and Richter 2003).

Another alternative to formal career paths is provided by the practice of “perspective

groups” in CSC Ploenzke Germany. This practice is based on an understanding

of career in which the gaining of new competence is more important than

promotion. The organization encourages multiple qualifications in order to enhance

the shift from “specialists” towards “generalists” (Fuchs 1997).

Another very typical aspect of career found in consultancies is the process of

career transfer. This practice is derived from the existing “up or out” rule whereby

less successful employees are encouraged and supported by outplacement and

alumni networks to continue their careers outside the consultancy (Kubr 2002).

Coaching and Mentoring

Coaching and mentoring are very central to successful career development. According

to best practices in the consulting industry, partners and other senior consultants

are responsible for the development of the junior consultants (Kubr 2002).

The existence of a strong mentoring culture and a convenient ratio between senior

consultants and mentees enhance the progress of the junior consultants (Graubner

and Richter 2003). However, in some consultancies the career path from junior

consultant to partner is considered as a natural process of selection; as a proof for

endurance. This argument is also often the excuse for not offering coaching or

mentoring (Ibarra 2000).

In the case of partner aspirants, partners have to be involved as mentors. An

added value of this kind of mentoring is mentees can be brought together with as

many senior consultants as possible. In this way the junior gains different experiences

until he/she has found the most suitable mentor. Ideally speaking, the mentor

programs should allow mentees to change their mentors if necessary (Ibarra

2000).

“Intervision” - a practice whereby two peers supervise each other on a regular

basis, by using mutual criteria and principles – presents a possible alternative to

time consuming mentor and coaching activities at senior level (Graubner and

Richter 2003).

1.5.4 Performance Appraisal

Consulting companies conduct review processes where supervisors periodically

evaluate the performance of the staff members with whom they work. In some

cases groups of partners meet to discuss the consultants’ performance and to rate

them along several dimensions (Saltzman and Meyer 2004). There are two reasons

why performance appraisal is particularly important for the development and promotion

of consultants. Career patterns in consultancies require consultants to develop

rapidly and second, the operational environment in which a consultant

works changes frequently, e.g. a consultant can be a member of five or more different

teams (Kubr 2002).

Two central aspects are typical with regard to performance appraisal processes

in consulting firms: supervisors and consultants can discuss and agree upon the

evaluation outcome and partners’ group evaluation procedures exist (Saltzman and

Meyer 2004; Robertson and Swan 2003; Kubr 2002). The main advantage of partners’

group evaluation meetings is that they ensure the implementation of standardized

evaluation criteria within the organization (Saltzman and Meyer 2004).

1.5.5 Reward Management

The general practice in consulting firms shows that merit pay is a relatively common

tool, whereby the performance-related part of the compensation depends on

the reaching of individual and/or group targets (Franck, Opitz and Pudack 2002;

Robertson and Swan 2003). Usually the bonus paid to junior and operating consultants

reflects the profitability of the firm as a whole, the individual fee-earning,

and the new business generation. Due to their position as owners, partners participate

in the profit and also receive compensation for their work as consultants

(Kubr 2002).

Due to the specifics of consulting work, Kennedy Information has suggested

several improvements regarding reward management in consultancies: non-billed

time has to be taken into account; by converting partnerships into public companies

the consultancy will be able to provide stock option incentives to employees;

consultancies should create “near partner positions” that offer earlier equity- or

profit sharing (Kubr 2002). Graubner and Richter (2003) suggest that the responsibility

for the firms’ future has to be shared among more senior consultants. This

risk should no longer be compensated for by the premium resulting from partnership

status, but by performance-related compensation, depending on the organizational

performance.

1.5.6 Separation

Due to a strict “up or out” policy, separations are relatively central to HRM in

consulting firms and not only in turbulent times. The average staff turnover (10 to

15%) in consultancies is relatively high compared to other sectors. Separation can

also arise because of different views on consulting methods, on career advancement

or preference for other careers. Many young people consider large consultancies

as a kind of “business school” and join them without intending to stay

(Kubr 2002).

Best practices regarding separation in consulting firms focus on maintaining

good relations or even cooperation with former staff, based on regular and active

communication (Graubner and Richter 2003; Alvesson 2000).

1.5.7 Personnel Administration

Considering the current consultancy practice with regard to personnel administration,

we can notice the existence of three main tendencies: the shift of different

administrative operations from HR departments to the line management or to the

employees; the concentration of personnel data in integrative systems and tools;

and the search for new ways to increase cost efficiency, for example via outplacement

or shared personnel services.

The shift of operations such as personnel reporting or travel administration towards

line management and employees is made possible by concentrating the necessary

information in integrative systems and tools for the purpose of HR administration.

Usually parts of a company’s own service range, such personnel technology,

is also offered today to the internal clients (Sweat 2001).

1.6 HRM as Employee Champion

The themes central to the role of HRM as employee champion in consulting firms

are employee commitment, employee moral, loyalty and meeting employees’ personal

and family needs.

1.6.1 Employee Commitment and Moral

Due to their high intrinsic motivation and their professional identity as knowledge

based workers, employees in consultancies are willing to work long hours. Thus,

working hard and long hours may be part of their professional identity (Rasmussen

2004; Alvesson 2000). In the context of employee commitment the HRM in

consultancies has to be aware of the fact that employees can be strongly committed

to their tasks, customers and co-workers, but this does not mean that their

commitment to the organizations is durable (Rasmussen 2004).

Further, HRM in consulting firms has to distinguish between short and long

term employee commitment. At the beginning of their careers consultants can be

considered underpaid. The willingness of consultants to accept low to medium

pay while working long hours can be explained by their being offered interesting

and challenging tasks, a very good social environment and the prospect of obtaining

a partner position and so becoming overpaid (Rasmussen 2004; Franck and

Pudack 1999). If the consultants are not able to reach the “partner level”, they

consider the missing salary as the “price” they have to pay to the consulting firm

for obtaining the reputation of “belonging to the best” (Franck and Pudack 1999).

However, these alternatives can work only in the short term. A long-term commitment

to the organization includes professional development, challenging and

interesting tasks, as well as work-life-balance. As long as consultancies are not

willing to help employees meet their personal and family needs, consultants will

be committed to their work, colleagues and probably clients, but not to the firm

(Rasmussen 2004).

1.6.2 Personal and Family Needs

As already mentioned increased client expectations and changes in the business

environment are forcing consultancies to recruit a more diverse workforce in terms of work experience, age and gender. The new background of the employees

leads to new personal and family needs, where the HRM has to contribute to their

satisfaction by developing and communicating work-life balance practice, mainly

by avoiding excessive working hours. In this way consultancies will be able to attract

and retain more experienced worker and women (Graubner and Richter 2003;

Hördt 2002). Traditionally women are underrepresented in the consulting business.

In order to benefit from a gender mix, HRM in consultancies has to implement

additional measures regarding female promotion focused on removing the

existing glass ceiling in this field of industry (Hördt 2002).

Job security is a need central to all employees irrespective of the industry they

work in. The “job security” issue started to become relevant to the consulting

business first in the recent past, when the demand for highly trained consultants

decreased sharply (McMann 2000). Consultancies have realized that they do not

want to lose their carefully selected and highly qualified human capital in which

they have already invested a lot (Fritzel and Vaterrodt 2002). Further, downsizing

leads to impending fear, uncertainty, and insecurity. As consequence, consulting

firms are creatively exploring alternative approaches to downsizing and other nontraditional

methods of maintaining staff capacity (McMann 2000).

Alternatives to downsizing in consultancies might include some of the following:

a hiring freeze, overtime restrictions; part-time contracts for consultants; job

sharing for back-office staff; and contractor pools of former consultants (McMann

2000). Flexible leave which enables employees to retain their connection with the

company is another alternative created and implemented in Accenture. This practice

is based on working flexibility and implies a longer timeout combined with

partial remuneration. The main advantages of this practice are: noticeable personnel

cost reduction, retention of highly qualified work force and highly motivated

and committed consultants after their leave (Fritzel and Vaterrodt 2002).

1.7 Conclusion

In conclusion, it is important to mention that the HR systems and tools in consulting

firms are tending to shift towards those in traditional industries (Graubner and

Richter 2003). Nevertheless, we believe that the specifics of consulting services

are quite distinctive and thus HRM in such companies will keep its unique features.

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McKinsey & Company

Inc. Deutschland

1,750 1,770 1,812 1,768 1,660

2 Roland Berger Strategy

Consultants

1,630 1,630 1,685 1,650 1,510

3 The Boston Consulting

Group GmbH

1,050 1,050 1,100 1,150 1,000

4 Deloitte Consulting GmbH 646 677 683 456 435

5 Booz Allen Hamilton

GmbH

430 410 384 365 340

6 Mercer Consulting

Group GmbH

520 470 450 300 240

7 A.T. Kearney GmbH 440 510 543 620 616

8 Mummert Consulting AG 1,097 1,186 1,254 - -

9 Bain & Company

Germany Inc.

310 290 260 260 250

10 Droege & Comp. GmbH 285 280 280 315 290

11 Arthur D. Little GmbH 280 280 280 290 335

12 MC Marketing

Corporation AG

225 190 160 150 132

13 Simon, Kucher & Partners

GmbH

235 205 169 160 134

14 Horváth AG (Horváth &

Partner Gruppe)

229 236 209 185 147

15 Management Engineers

GmbH & Co. KG

142 132 125 105 105

16 Dornier Consulting GmbH 156 142 138 - -

17 Kienbaum Management

Consultants GmbH

165 158 195 189 165

18 Towers Perrin Inc. 145 140 140 140 120

19 Celerant Consulting GmbH 112 98 92 85 70

20 Kurt Salmon Associates

GmbH

130 145 135 145 160

21 TMG Technologie

Management Gruppe

80 80 70 - -

22 Monitor Group 90 80 - - -

23 d-fine GmbH 109 102 - - -

24 RWE Systems Consulting

GmbH

89 79 68 - -

25 TellSell Consulting GmbH 40 35 - - -

McKinsey & Company

Inc. Deutschland

540.0 590.0 580.0 595.0 475.0

2 Roland Berger Strategy

Consultants

530.0 318.0 526.0 511.0 433.0

3 The Boston Consulting

Group GmbH

246.0 246.0 258.0 238.5 217.3

4 Deloitte Consulting GmbH 198.0 198.0 214.6 145.0 135.5

5 Booz Allen Hamilton

GmbH

190.0 190.0 160.0 148.0 127.0

6 Mercer Consulting

Group GmbH

167.0 167.0 125.0 106.0 93.0

7 A.T. Kearney GmbH 158.0 153.0 215.0 246.0 230.0

8 Mummert Consulting AG 147.0 143.0 - - -

9 Bain & Company

Germany Inc.

130.0 130.0 110.0 105.0 97.0

10 Droege & Comp. GmbH 112.6 80.3 128.2 122.0 95.0

11 Arthur D. Little GmbH 72.1 72.1 85.0 89.5 100.3

12 MC Marketing

Corporation AG

54.8 54.8 42.3 36.1 30.8

13 Simon, Kucher & Partners

GmbH

46.5 36.0 30.1 29.0 24.1

14 Horváth AG (Horváth &

Partner Gruppe)

46.5 33.7 40.5 30.0 21.0

15 Management Engineers

GmbH & Co. KG

46.0 38.2 43.0 38.0 27.0

16 Dornier Consulting GmbH 43.6 32.6 - - -

17 Kienbaum Management

Consultants GmbH

39.0 36.0 34.0 33.0 29.0

18 Towers Perrin Inc. 36.0 36.0 29.0 28.3 23.4

19 Celerant Consulting GmbH 28.1 24.6 24.0 18.3 14.5

20 Kurt Salmon Associates

GmbH

28.0 28.0 28.0 24.3 22.8

21 TMG Technologie

Management Gruppe

28.0 25.0 - - -

22 Monitor Group 25.0 25.0 - - -

23 d-fine GmbH 21.0 20.0 - - -

24 RWE Systems

Consulting GmbH

20.4 20.4 - - -

25 TellSell Consulting GmbH 18.7 17.2 - - -

2004 Name 2004 2003 2002 2001 2000

IBM Business

Consulting Services

- - - - -

Lufthansa

Systems Group GmbH

4,500 4,400 4,200 3,457 4,125

3 Accenture GmbH 3,603 3,600 3,606 3,450 2,506

4 CSC Ploenzke AG 4,900 4,911 4,823 5,070 4,783

5 gedas AG 4,930 4,751 4,814 5,211 3,808

CapGemini Deutschland

Holding GmbH

3,256 3,085 3,124 3,555 3,279

7 BearingPoint GmbH 2,600 2,800 3,277 - -

8 Atos Origin GmbH 3,500 2,400 2,200 2,300 1,800

SAP SI Systems

Integration AG

2,200 1,859 1,819 1,536 1,136

10 IDS Scheer AG 2,132 1,955 1,379 1,400 1,032

Deutsche Post IT

Solutions GmbH

1,300 1,300 - - -

12 Msg Systems AG 1,900 1,650 1,450 1,300 1,150

ESG Elektroniksystemund

Logistik-GmbH

1,030 1,003 990 845 816

14 Softlab GmbH 1,180 1,042 1,114 1,230 1,451

IT-Services and

Solutions GmbH

1,200 1,300 1,300 1,450 1,400

LogicaCMG Deutschland

GmbH & Co. KG

1,500 1,922 - - -

17 Intelligence AG 936 1,068 1,465 1,486 1,433

18 GFT Technologies AG 1,039 1,058 1,204 980 562

sd&m Software

Design & Management

950 877 897 906 790

20 Unilog Holding GmbH 1,100 786 1,111 1,129 1,135

21 Materna GmbH 1,100 1,115 1,309 1,150 1,050

Unisys

Deutschland GmbH

462 506 - - -

SerCon Service

Consulting GmbH

950 1,066 1,276 1,649 1,650

24 C1Group GmbH 629 467 - - -

25 entory AG 485 485 - - -

Rank

2004

Name 2004 2003 2002 2001 2000

IBM Business

Consulting Services

966.0 966.0 - - -

Lufthansa

Systems Group GmbH

628.0 628.0 557.4 478.1 -

3 Accenture GmbH 586.0 586.0 594.0 644.0 1,070.0

4 CSC Ploenzke AG 571.0 404.0 608.0 719.0 1,375.0

5 gedas AG 567.0 150.0 619.0 628.0 964.0

CapGemini Deutschland

Holding GmbH

477.0 477.0 466.0 519.0 1,105.0

7 BearingPoint GmbH 400.0 400.0 488.9 578.3 -

8 Atos Origin GmbH 380.0 380.0 250.0 260.0 440.0

SAP SI Systems

Integration AG

336.0 269.0 293.2 268.8 364.0

10 IDS Scheer AG 280.2 111.2 181.4 160.2 246.0

Deutsche Post IT

Solutions GmbH

216.0 216.0 - - -

12 msg Systems AG 203.0 185.3 162.0 144.0 250.0

ESG Elektroniksystemund

Logistik-GmbH

175.0 185.3 143.0 166.0 233.0

14 Softlab GmbH 165.0 135.0 164.0 173.0 370.0

IT-Services and

Solutions GmbH

151.0 151.0 143.6 166.0 310.0

LogicaCMG Deutschland

GmbH & Co. KG

136.0 136.0 - - 270.0

17 intelligence AG 131.0 64.9 168.5 182.9 290.0

18 GFT Technologies AG 125.5 84.3 155.7 147.9 -

sd&m Software Design

& Management AG

125.0 125.0 129.0 138.0 245.0

20 Unilog Holding GmbH 125.0 125.0 113.0 126.0 -

21 Materna GmbH 120.0 108.0 153.0 181.0 349.0

Unisys

Deutschland GmbH

106.0 106.0 - - -

SerCon Service

Consulting GmbH

85.0 85.0 125.0 161.0 -

24 C1 Group GmbH 76.3 76.0 - - -

25 entory AG 67.4 61.5 72.5 96.5 -

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