Helvetic Management Consulting:
The Case Centre University St Gallen, #311-021-1
STRAT MAGT: Strategy of a consulting firm in a moving environment
The case examines a mid-sized Swiss Management consulting firm, named “Helvetic Management Consulting” from 1977 to 2008, during a period of time where that company experiences strong challenges and a strategic renewal.
The year 2004 marks a time where the firm faces severe problems initiated by a market downturn and a resulting misfit between its positioning, management system, and ownership model and the new market environment, characterized by changing client demands and increased competition.
Between 2004 and 2007, the new Managing director initiates three major renewal activities which he implements in the face of severe internal obstacles and inertial forces. Two additional growth initiatives in 2007 and 2008 are described that should set the stage for future growth.
Suggested Questions:
1-What was the initial business model of HMC* before 2004? Identify its attributes and the reasons for its success.
2-Which challenges and issues emerge around 2004? How severe are they? If you were a partner of the firm in 2004, would you leave the firm?
3-What new strategy would you recommend for HMC?
To propose a new external strategy (product x market) and internal strategy (organizational components) please a) justify your choice, and b) indicate which method you use to select an external and internal strategy
4-What are the triggers of strategic renewal at HMC?
5-Which challenges exist for the implementation of this new external and internal strategy?
6-Which questions would you pose in a job interview to gain a better understanding of the external and internal strategy of the firm you are interested in?
*To discuss the business model, you can use the PSF Management Circle that is designed for Professional Services Firms. This framework includes the most relevant dimensions for the management of PSF: 1) external strategy; 2) professionals; 3) intellectual capital; 4) clients and projects; 5) economics; and 6) organizational context.