Tom Reichert
Chairman, North America
The Boston Consulting Group
Q: How would you describe your firm's outlook for 2014?
A: We are heading into 2014 quite optimistic. We have very good momentum and expect another good year. We have a broad portfolio of offerings and expect continued growth across most industries and functional areas. Our year-long 50th anniversary celebration helped highlight the uniqueness about what BCG can bring. Our clients are placing a growing emphasis on building capabilities within their own organizations and that has been an area where BCG has always been seen as strong and where we are investing heavily to get even better.
Q: Can you sum up where your firm is today?
A: I would say 2013 was a good year. We continued to build more and deeper client relationships, expanding our client base. We also continued to see a strong uptake for the new capabilities we've been investing in. We see good momentum going into 2014. Two things surprised us about the year: first, the fact that M&A activity hit a 15-year low and second, the diversity of the global economy and different moods around the world. Fortunately, our business continues to be relatively uncorrelated to the global economy. In some of the more challenged countries, we had some of our best years ever.
Q: What signs are you seeing that suggest an increase in demand?
A: We had quite a good fourth quarter in most geographies around the world and saw clear signs of initiatives extending into 2014. Many companies recognize that they need help focusing on driving growth, being fit to compete in an increasingly global and interconnected world, and being more adaptive and attuned to the ever-changing business environment. To do this, some will need to get better at harnessing their organization's creativity or "thinking in new boxes," as my colleagues say. All of these things will fuel demand.
Q: How do you see the consulting profession evolving in 2014?
A: Clients are placing a high premium on value delivered and lasting impact. We think the ability to show both tangible near-term results and stronger internal capabilities for the future will be increasingly important. We also see our industry continuing to restructure as the mid-tier firms face ongoing pressures and the big accounting firms look to expand into the c-suite strategy space to find new sources of growth.
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