Reorganization for Revitalization

Group 5 Akash Deep Gowtham Srinivas Kanika Jain Kanika Singhania Rudra Radhakrishnan Sohini Bera Tajeshwar Singh 127 142 147 148 173 185 188

Case Background
1913 : Andersen auditing firm was founded by Prof. Arthur Andersen

1952: The firm started getting involved in consulting business too

1980s: The consulting business outpaced the auditing business

1989: Firm was divided into two, Arthur Andersen(audit, tax and related services) and Andersen Consulting

1994: Andersen Consulting became world s largest consulting business

CRU Computer Rentals

Group 5, Section C

Governance Structure
Managing Partner Arthur Andersen Board Of Partners

Managing Partner Andersen Consulting

Managing Partner Arthur Andersen

Area Managing Partner (Asia Pacific)

Area Managing Partner (Europe)

Area Managing Partner (Americas)

Global Services Line Practice Support

Country Managers

Service Lines

Practice Support

Recruitment and Training

System Integration Recruits: o Mostly young university graduates
o 3 week rigorous training program ; Exposed to METHOD/1 training o Training stressed on standardization and formalization of tasks o Strict guidelines for project management and common language for questioning clients

System Integration Consultants:

o As associate, programming and methodology training o As engagement manager, project management skills o As partner, refine client management skills

Strategic Services Division:

o Recruited from business schools o Not put through programming courses o Also recruited from competitors directly to senior level positions

Performance Evaluation, Compensation, Promotion

Consultants and Engagement Managers:
Consultants o Assessed every three months by their project managers o Collected at end of year; ranked against others in their cohort o Detailed review at end of five years 15% counseled to leave; others promoted to engagement managers; required ability to lead and manage project teams Election to associate manager came five to seven years after becoming manager After 2-4 years, reviewed for promotion to partner; Required two-thirds majority by the partnership community

Partners:
Partners held shares in their national practices; profits were shared globally on a per unit basis Eligible to be awarded additional number of units based on performance o Committee including Country Managers, industry, service heads evaluates performance oAssessed on four category scale: Exceptional, Outstanding, Standard, Needs improvement Negative voices against this system: o Allocations made first on a country basis; Not helpful in encouraging collaboration o Partner Units are not taken away even if they are underperforming

Performance Evaluation, Compensation, Promotion

Consultants and Engagement Managers:
xxxx

Partners:
xxxx

Performance Evaluation, Compensation, Promotion

Consultants and Engagement Managers:
xxxx

Partners:
xxxx

Performance Evaluation, Compensation, Promotion

Consultants and Engagement Managers:
xxxx

Partners:
xxxx