Subject category:
Strategy and General Management
Published in:
2010
Length: 16 pages
Data source: Field research
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Abstract
This is the first of a two-case series (310-050-1 and 310-051-1). From 1995 to 2006, AT Kearney, a global strategy consultancy was a subsidiary of Electronic Data Systems. This case looks at why a global information technology giant, EDS, acquired one of the world's most successful management consulting firms, AT Kearney, at a premium price in 1995 only to sell it back at a loss to the partnership in a management buyout ten years later. In between, AT Kearney saw it all, from a high of unseating its historic arch rival McKinsey & Co as the consulting firm with the highest revenues per professional, to seeing its revenues fall for 11 consecutive quarters. Taught together, the (A) and (B) cases form a thorough series that is most appropriate for stimulating discussion and analysis on the following key issues: (1) the relevance of ownership models in professional services firms; (2) the challenges posed by the integration of two very different corporate cultures post acquisition; (3) the impact compensation and incentive systems have on performance; and (4) the critical role played by individual leaders. Even though the case mainly covers organisational issues, it is better suited for use in a course in corporate strategy at a graduate level programme.
Location:
Industry:
Size:
International companies
Other setting(s):
1995-2006
Subject category:
Strategy and General Management
Published in:
2010
Length: 8 pages
Data source: Field research
Subject category:
Strategy and General Management
Published in:
2010
Length: 13 pages
Data source: Field research
About
Abstract
This is the first of a two-case series (310-050-1 and 310-051-1). From 1995 to 2006, AT Kearney, a global strategy consultancy was a subsidiary of Electronic Data Systems. This case looks at why a global information technology giant, EDS, acquired one of the world's most successful management consulting firms, AT Kearney, at a premium price in 1995 only to sell it back at a loss to the partnership in a management buyout ten years later. In between, AT Kearney saw it all, from a high of unseating its historic arch rival McKinsey & Co as the consulting firm with the highest revenues per professional, to seeing its revenues fall for 11 consecutive quarters. Taught together, the (A) and (B) cases form a thorough series that is most appropriate for stimulating discussion and analysis on the following key issues: (1) the relevance of ownership models in professional services firms; (2) the challenges posed by the integration of two very different corporate cultures post acquisition; (3) the impact compensation and incentive systems have on performance; and (4) the critical role played by individual leaders. Even though the case mainly covers organisational issues, it is better suited for use in a course in corporate strategy at a graduate level programme.
Settings
Location:
Industry:
Size:
International companies
Other setting(s):
1995-2006
Related
Subject category:
Strategy and General Management
Published in:
2010
Length: 8 pages
Data source: Field research
Subject category:
Strategy and General Management
Published in:
2010
Length: 13 pages
Data source: Field research