Strategy Consultants

The approaches used by strategy consultants – also known as management consultants – are advanced versions of those taught in business schools: data-driven analysis with some degree of attention given to the non-quantifiable human factor. The goal is the standardization of best practices within client companies, drawing also on insights gained from other clients.

The management consulting sector has grown dramatically since the 1930s, when the Glass-Steagall Banking Act was passed, limiting affiliations between commercial banks and securities firms. Management consulting grew out of the demand for advice on finance, strategy and organization. In 1980, only five consulting companies existed, and each had 1,000 consultants worldwide. By the 1990s, however, more than thirty firms entered the market each with at least 1,000 management consultants.

In 1993, McKinsey had 151 directors. This figure dramatically increased to 400 by 2009. From 1993 to 2004, McKinsey revenues more than doubled with 20 new offices and twice as many employees. McKinsey grew from 2,900 to 7,000 consultants scattered across 82 offices in more than 40 countries. In 1963, Boston Consulting Group had two consultants. By 1970 1980, 1990, 2000 BCG had 100, 249, 676, 2370 and 4800 consultants on its payroll respectively.

On their Own

To be given a task in Germany is a form of advanced praise. It signals that one has the ability to complete it properly. It is a sign of competence. Every new task is also an opportunity to demonstrate that ability, perhaps even to surprise the boss and other colleagues with exceptional work results.

For Germans define themselves very much through their work. Recognition for solid work is for many just as important as compensation. A job well done in the German context, however, is work done independently, on one’s own. Help now and then from the team lead or advice from colleagues are seen as bothersome, unnecessary, possibly even hostile, as a form of doubt that the personal can do solid work, on their own.

Lästig, bothersome. Germans find follow up annoying, both for the team member who has to report on the status of their work, as well as for the team lead who has to ask if the work is being done properly. Both parties believe that they have better things to do. Namely, their work.

Figures of speech: Viele Köche verderben den Brei. Too many cooks ruin the porridge. Dazwischen Funken. Literally, to radio in intermittently. Figuratively, to stick your nose in someone else’s business.

Check with Colleagues and Manager

Agreements of substance and importance have effects, ramifications, influence on the work of others. And since Americans work in teams, many of them in several teams at any given time, they are not inclined to enter fully into an agreement until they have checked out what those effects might be.

Why invest additional time discussing the details of a potential agreement, if one or two aspects of it are counter to their other responsibilities? Instead, Americans will check with key colleagues in those organizations potentially influenced by the agreement. In many cases, they will also briefly discuss the case with their direct manager.

This approach is often mistakenly interpreted as a sign that many Americans are either incapable or unwilling to make decisions on their own, without having to run to their boss for permission.

American team leads ultimately carry all responsibility for what occurs within their organization, and are therefore keenly interested in what obligations their team members make in their – the team leader’s – names.

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