And in other news: Ernst & Young, Aon Hewitt, ECS and Navigant Monadnock Research - 18 January 2012 Operational Risk & Regulation Magazine releases results of its 2011 consultancy rankings of the top 10 operational risk management consulting practices. Ernst & Young takes the top spot in anti-money laundering, corporate governance, regulation strategy, Basil II and III, treating customers fairly, fraud and financial crime prevention, and enterprise-wide compliance and risk management strategy. Aon Hewitt signs agreement with Birches Group to remarket compensation surveys. ECS acquires Paradigm Technologies. Navigant shareholder sues, claiming excessive executive compensation. (753 words) . . . More
EC Formally Proposes Order Separating Big Four Audit and Consulting Operations Monadnock Research (Vol IV, No 40) - 2 Dec 2011 MR - The European Commission (EC) has adopted proposals that, if implemented, will dramatically change the way auditors serve public interest entities (PIE), including banks, insurance companies and publicly listed companies. The proposal prohibits firms from providing non-audit services to audit clients. The rules are particularly restrictive for the Big Four, and will obligate them to separate audit activities from non-audit consulting and advisory practices to avoid potential conflicts of interest with clients. According to the EC, "Big firms represent a very large proportion of PIE audits. It is critical that such audits are conducted in an independent manner without any 'pollution' from other commercial interests." Beyond the separation of audit and advisory operations, the change establishes more stringent governance policies for auditors to strengthen their independence and introduces more competition into the highly-concentrated market for PIE audit services. Included among those additional changes are mandatory auditor rotation; transparent bid tendering; audit committee oversight; EC supervision and international coordination of the audit sector; intra-EC auditor professional practice mobility; and less "red tape" for small and mid-sized audit firms. Audit firms will support many of the proposals, but reject separation of the consulting operations as a solution. They also oppose auditor rotation, which the EC has said is fundamental to reform. Research Note includes EC audit reform proposal, impact assessment and firm responses to the proposed regulatory actions. (1,950 words) . . . More
PwC Partners with Human Capital Consultancy, Aasonn Monadnock Research - 30 Nov 2011 MR - PricewaterhouseCoopers has formed a strategic alliance with Aasonn, a global human capital management (HCM) consulting and technology services company. Aasonn is a global HCM consulting and technology services firm that serves clients in more than 30 countries worldwide from offices in the US, Europe and Asia Pacific . It has application expertise in SuccessFactors and HCM capabilities across multiple industries and HR functions. (250 words) . . . More
Green Consulting Practices Assessed in Verdantix Report Monadnock Research - 15 Nov 2011 MR - Verdantix, an independent research firm providing services in the area of sustainable business practices, recently published the results of its 2011 UK Green Quadrant Sustainability Business Consulting study. According to Verdantix, in the last four years a combination of increasing energy expenditures, climate change policy, new market opportunities and shifting competitive dynamics has encouraged FTSE 100 firms to invest in more ambitious corporate sustainability strategies. The Green Quadrant report is positioned to help client business leaders and procurement professionals by presenting a fact-based comparison of the 14 sustainability business consulting firms most active in the UK market. Many of these firms also have top sustainability practice in other global regions. The report found that the following four firms currently lead the UK sustainability consulting market: Deloitte, Ernst & Young, KPMG and PwC. Their position is due to the breadth of their service offerings; depth of expertise in sustainability; and significant investments in internal sustainability programs. The report also found that Accenture, ARUP, Camco, McKinsey and WSP Environment & Energy all have strong practices that are well positioned to address client requirements across the seven sustainability areas assessed in the report. (500 words) . . . More
Consulting Leadership News: Korn/Ferry, CSC, KPMG, BDO, Cushman & Wakefield, PwC, CGI, E&Y, Celerant, Navigant, Alvarez & Marsal, BearingPoint, Huron, Campbell-Hill Monadnock Research - 27 Oct 2011 MR - Korn/Ferry appoints Chuck Feltz as President of its Lominger products business. CSC CEO and Chairman, Michael Laphen, to retire. KPMG LLP Names Steven Hill Vice Chair, Strategic Investments. Sixty staff and 6 partners join BDO USA from Carneiro Chumney & Co. Cushman & Wakefield cuts staff and shifts focus from Dubai to Bahrain. CGI appoints George Schindler President of US operations and Ken Taylor as Vice-President, Cybersecurity. PwC names Dietmar Ostermann Global Automotive Advisory Leader. PwC appoints Eric Israel and Clinton Moloney as Managing Directors in Sustainability Business Solutions practice. Martin Steinbach appointed to lead Ernst& Young's IPO Center. BDO Consulting names Drew Olson to expand litigation and fraud investigation within Chicago Insurance practice. Celerant appoints Neil Eurick as Vice President within Metals and Mining practice. BearingPoint hires Rob Staples as Partner in UK Communications practice. Navigant appoints nine senior consulting professionals. Alvarez & Marsal appoints Lou Pahountis as Managing Director. Huron names Joel Feliciano as Managing Director. AirTran Senior Executive Kevin Healy Joins Campbell-Hill Aviation Group; Eric K. Ford joins as Vice President. (2,735 words) . . . More
PricewaterhouseCoopers Regains Largest Professional Services Firm Title, Fueled by 20 Percent Advisory Business Growth Monadnock Research (Vol IV No 35) - 8 October 2011 MR - PricewaterhouseCoopers (PwC) has taken back the largest global professional services firm title from Deloitte. Revenues for PwC's Advisory businesses grew by 20% in F-2011, to $7.5 billion. Growth was driven by the consulting, particularly in the US, and inorganic growth through a series of strategic acquisitions that included management consultancy, Diamond. Statutory audit services now represent just 40% of PwC's total revenues. The PwC network reported total gross revenues of $29.2 billion in fiscal 2011, ended 30 June. That's an increase of 10% over fiscal 2010 - 8% in constant currency. The increase was the strongest growth in revenues since 2008. Headcount grew to around 169,000 in the period. PwC had revenue increases in all regions. Asia rose by 14%, Australasia by 38%, and the Middle East and Africa by 20%. The firm returned to growth in the Americas with North American revenues increasing by 10%, and South and Central America doubling last year's growth to 23%. Growth was less in Western Europe at 4%, and Central and Eastern Europe at 7%. Revenue figures are gross and include expenses billed to clients. (880 words) . . . More
Accenture Settles Rille Qui Tam Suit with US DOJ for $63.675 Million Monadnock Research (Vol IV, No 29) - 18 Sept 2011 MR - Accenture has agreed with the U.S. Department of Justice to settle a whistle-blower suit filed in 2006 for $63.675 million. The Qi Tam lawsuit was originally filed by Rille and Roberts alleging that Accenture submitted false claims for payment under contracts with US federal agencies for IT consulting and services. The Justice Department characterizes the settlement as Accenture agreeing to resolve the claims that it received kickbacks for recommendations of hardware and software to the government, fraudulently inflating prices and rigging bids. Accenture continues to vigorously deny the allegations and says that the firm and the Justice Department have settled only to avoid the additional time, inconvenience and expense that would come with protracted litigation. The Accenture kickback allegations were part of a larger investigation of government technology vendors that has resulted in numerous settlements to date with firms that include IBM, PwC, CSC, Oracle, Hewlett-Packard, EMC, and Cisco. The total of the settlements paid by IBM, PwC, and CSC were around $6.5 million. That aggregated total was just a fraction of that paid by each of the firms that waited to settle. So there was clearly a significant premium charged to Accenture and the other firms that refused to address the risk early. Accenture's settlement, as well as that of Oracle, were in the range predicted by Monadnock Research in a September 2010 publication. This Research Note includes MR analysis and perspective on: the cost to firms of waiting to settle; why clients need to better understand firm partnerships, since acting in the client's best interest is often not in the firm's best interest; related case settlements and supporting documents, including complaints; and recommendations on what clients and firms should do to mitigate associated risk. (2 graphics, 1,950 words) . . . More
PwC Completes Acquisition of PRTM Monadnock Research - 22 August 2011 MR - PricewaterhouseCoopers (PwC) has completed its acquisition of management consultancy PRTM. PwC says the addition of PRTM's experience in strategy, supply chain, product development, customer value management and business model innovation will strengthen and support its commitment to deliver a full range of consulting services from strategy through execution. More than 700 consultants joined PwC's global advisory practice in the transaction, including 124 principals. Over two-thirds of PRTM's professionals are located in the U.S., with the remainder in the U.K., France, Germany, the Nordics, the UAE, India, China and Japan. See our Research Note (Vol IV, No 18 - 24 June 2011) for Monadnock Research perspective on the transaction. (480 words) . . . More
PRTM to be Acquired by PwC Monadnock Research (Vol. IV, No. 18) - 24 June 201 MR - PwC has entered into a definitive merger agreement where it will acquire privately held PRTM, a global operations management and strategy consulting firm based in metro Boston. Assuming the transaction is successfully concluded, PRTM will join PwC's global Advisory practice. Much like the Diamond transaction, any acquisition faces unique challenges for a firm like PwC given its role as an auditor for many of the world's largest organizations. Clients must choose whether PwC's client work as an auditor or as a consultant and advisor is more important strategically. And this is a decision that PwC may have a different opinion on as it once again expands its advisory capabilities and pursues more sources of higher margin consulting and advisory work. PRTM does minimal work in financial services, so there is limited exposure there. This Research Note includes MR perspective and discusses many of the potential challenges. PwC expects the deal to close late summer, subject to customary closing conditions. (1,080 words) . . . More
Recent Firm Research: Accenture, KPMG, and PwC Monadnock Research - 23 June 2011 MR - Physician employment trends will drive business strategy changes for payers, providers, and vendors; Businesses say it's possible to sustain growth, drive innovation, and simultaneously address societal challenges facing nations and communities - (Accenture). Multinational tax executives say global regulatory pressure to increase transparency is most significant change ahead; Banking execs look to M&A to fuel growth; complete economic recovery not expected in near-term (KPMG). Leveraging innovation to develop new products and services as important as raising existing market share (PwC) . . . More
And in other news: Consulting Demand, BDO Censure, Pension Deficits, US M&A, Executives Lack Faith in Strategy, Sopra's Axway Spinoff, and CSC Institute Monadnock Research - 10 June 2011 (MR) An Economist report discusses the rebound in consulting services, and the current shift from cost cutting to growth as the focus of engagements after the deepest consulting recession in decades. BDO financial advisory is censured by UK's Financial Services Authority for failures in its advisory role as a sponsor of Shore Capital Group. A recent Booz & Company survey of global executives found significant concerns and a lack of confidence in their own companies' growth and strategy efforts. US pension plan deficits increase by close to 18% in May 2011 According to Mercer research. Large transactions have fueled a 39% US M&A value increase in H1 2011 according to a PwC study. The Sopra Group board has approved the spinoff of Axway Software on the NYSE Euronext exchange in Paris. Accenture has named TBWA and Tag as advertising and production agencies. CSC has launched its Global Institute for Emerging Healthcare Practices to monitor worldwide healthcare trends, conduct studies, evaluate emerging best practices, and study potentially innovative uses of technology to improve productivity. (1,063 words) . . . More
Consulting Leadership News: Deloitte, PwC. Mercer, Sopra, Navigant, E&Y, FTI, Logica, Point B, KPMG, US DoD, and Citigroup Monadnock Research - 5 June 2011 MR - Deloitte LLP elects Punit Renjen Chairman and Joseph Echevarria CEO; Jim Moffatt, Chairman and CEO of Deloitte Consulting LLP; Carl S. Allegretti as Chairman and CEO Deloitte Tax LLP; General Charles F. Wald as Director and US Department of Defense (DoD) consulting practice lead; and Deloitte's UK affiliate names 63 new partners. Richard Neiman joins PricewaterhouseCoopers as Vice Chairman of Global Financial Services Regulatory practice; Dr. Harry Broadman appointed Managing Director, Chief Economist and Leader of the Emerging Markets, Governance, and International Investment & Trade advisory practice group within PwC Forensics Services; and Keith Hubert, Managing Partner of the Hartford, Conn. office and leader, and leader of PwC's Northeast Insurance Services practice. Jimmy Johansen appointed Head of Mercer's Nordic International Consulting Group and International Leadership Group Member for EMEA; Michael Shore joins Mercer as Principal in Information Product Solutions consulting practice. Sopra appoints Christian Levi as Head of Sopra Consulting. Navigant's current Vice President and Controller, David Wartner, named Vice President, Operations and Treasurer; Scott Harper, Controller of Navigant's Disputes and Investigations segment, named Corporate Controller; Mary Jo Neville, current Segment Controller of Navigant's Business Consulting segment, named Segment Controller of Navigant's Disputes and Investigations segment; and F. Wayne Elggren joins Navigant's Disputes & Investigations practice as a Managing Director. Ernst & Young appoints Maria Pinelli as Global Vice Chair for Strategic Growth Markets practice. FTI Consulting names Lord Malloch Brown as Chairman of EMEA operations. Logica appoints Himanshu Raja as CFO and Executive Director of the Board. Point B appoints Michael Dickstein as Chief Marketing Officer. KPMG faces $350 million gender discrimination class action. Former Dutch Healthcare Cabinet Minister, Ab Klink, joins Booz & Co. Shay Assad appointed Director of Defense Pricing within US Office of the Under Secretary of Defense. John Catero appointed Citigroup Senior Vice President for US professional services procurement. (4,575 words) . . . More
Consulting Leadership News: KPMG, Infosys, Deloitte, Ernst & Young, PwC, Hayes, PFK, and Ciber Monadnock Research - 13 May 2011 MR - KPMG appoints Michael J. Andrew as Global Chairman, succeeding Tim Flynn in October 2011. N. R. Narayana Murthy's replacement at Infosys announced; Murthy appointed Chairman Emeritus; K. V. Kamath named as the Chairman of the Board; S. Gopalakrishnan named as the Co-Chairman of the Board; S. D. Shibulal named as the Chief Executive Officer and Managing Director. John McCue appointed leader of Deloitte's Energy & Resources Industry and Power & Utilities sector. Ernst & Young names Preston Thompson as Executive Director within its Financial Services Advisory practice; Mal Postings as the Chief Technology Officer within the IT Advisory Services practice; David White as Principal and Kristin Valente as Partner within Portland Advisory Practice; and Nathan Ives within its Power & Utilities Advisory Services Practice. Paul Williams Joins PwC US' Real Estate Business Advisory Services Practice. Robert Drewniak named leader of Hayes Management Consulting's Strategic & Advisory Services group. Andrea Foster Rejoins PKF Consulting USA as Vice President. CIBER Names Jayant Mehta Vice President of Business Solutions. (3,145 words) . . . More
SEC Fines Satyam $10 Million for Fraud; PCAOB and SEC Sanction PwC $7.5 Million for Not Detecting It Monadnock Research (Vol IV No 12) - 6 Apr 2011 MR - Mahindra Satyam has agreed to pay a $10 million penalty to settle charges with the U.S. Securities and Exchange Commission (SEC) over its predecessor entity, India consultancy and IT service provider Satyam Computer Services, and its fraudulent overstatements of revenue, income, and cash by more than $1 billion over five years. The Public Company Accounting Oversight Board (PCAOB) settled its disciplinary order against five PricewaterhouseCoopers (PwC) affiliated firms based in India, which included a $1.5 million penalty against two of those entities. The PwC entities violated rules and standards in connection with the audit of Satyam. The PCAOB penalty is in addition to the $6 million penalty imposed by the SEC against the PwC affiliates. The sanction is the largest-ever civil penalty issued by the PCAOB, and the largest regulatory penalty imposed by the SEC and PCAOB against any registered foreign accounting firm. Associated investigations have been ongoing since 7 January 2009, when Satyam's Chairman and Founder, Ramalinga Raju, admitted to perpetrating the fraud. Research Note includes 6 SEC and PCAOB orders. (2,500 words) . . . More
Honest Services Crisis: Professional Poison and the Chicago Connection Monadnock Research (Vol IV, No 11) - 30 Mar 2011 This Research Note was written by Monadnock Research CEO and Cofounder, Mark O'Connor, for re:TheAuditors, Francine McKenna's Big Four Weblog. The article has been published in its entirety at www.retheauditors.com; no subscription required. Research Note includes 7 recommendations for clients and firms to minimize risk; Big Four firm metrics; recognition of 2010's best and worst examples; three graphics; and 45 minute audio version. (6,200 words). . . . More
2011 Big Four Consulting and Advisory Services Rates Monadnock Research (Vol. IV, No. 10) - 17 Mar 2011 MR - This Monadnock Research Note summarizes the findings of a recent client study into Big Four consulting and advisory services rates. Since we find that rate data for the Big Four is not particularly useful unless it is presented across individual rate categories, this Note provides median rates for firms across the following 12 categories: Strategy; Operations; Accounting and Financial Strategy; Legal, Forensic and Risk Advisory; Internal Audit and Compliance; Transaction Advisory; Tax Advisory; Performance Services; IT Audit; Human Resources; IT Consulting; and IT Strategy. Research Note includes 4 charts. (850 words) . . . More
Big Four Advisory Practice Rankings Monadnock Research (Vol IV, No 9) - 17 March 2011 MR - Global non-audit advisory services of Big Four firms, including tax services, again broke the $50 billion (USD) mark in fiscal 2010 after retreating briefly in 2009, representing a 3.23 percent increase over 2009 levels. Total non-tax advisory services of Deloitte, KPMG, PricewaterhouseCoopers, and Ernst & Young were $27.8 billion, an increase of 8.1 percent over fiscal 2009. This Monadnock Research Note ranks the Big Four firms across their non-audit service categories. It also includes ratios of audit to non-audit advisory work for the Big Four, and provides MR perspective on what it all means to buyers, sellers, and regulators of associated services. Research Note includes 6 charts. (3,075 words) . . . More
Italian Government-Owned Procurement Organization, Consip, Awards eProcurement Contract to Consortium Led by Accenture and PwC; City of London Hires Accenture for Procurement Transformation Monadnock Research - 2 March 2011 MR - Italy's Consip SpA has awarded a consortium led by Accenture in partnership with PricewaterhouseCoopers a four-year, US$6 million contract to develop, implement, and maintain an eProcurement system. Accenture says it will provide Consip with management consulting and IT services to oversee the development and maintenance of a new procurement system. The system will help Consip leverage the latest eProcurement technologies and processes to reduce expenses and transform Italy's public sector procurement methods, processes, and operations. Consip is a public company based in Rome that was founded in 1997 by its sole shareholder, the Italian Ministry of Economy and Finance (MEF), and provides technology consulting on organizational and procedural projects for Italy's government. The City of London has awarded Accenture a five-year contract to help reduce procurement costs by more than £30 million over five years, creating a world-class procurement shared service center. The London agreement has value-based elements, where Accenture has tied a proportion of its fees to the savings realized. (600 words) . . . More
Oracle Reaches $46 million Settlement with U.S. Justice Department in 2004 Sun Systems Integrator Whistleblower Suit Monadnock Research (Vol. IV, No. 4) – 12 Feb 2011 MR - Oracle has agreed to pay $46 million to the U.S. to settle claims that Sun Microsystems, who completed its merger with Oracle a year ago, independently and in complicity with systems integrators, submitted false claims to the General Services Administration (GSA) and other federal agencies on its behalf. The settlement resolves allegations under the False Claims Act and Anti-Kickback Act that Sun paid systems integrators kickbacks to recommend the purchase of Sun products by federal agencies. It was also in the range predicted by MR in September 2010. According to the allegations in the original qui tam whistleblower suit, Sun executed agreements with consulting firms that provided for the payment of related fees. The suits were filed by Norman Rille and Neal Roberts in September 2004, and were intervened by the U.S. Justice department in April 2007. The settlement also resolves claims that Sun's 1997 and 1999 GSA contracts were improperly priced because Sun misrepresented information to GSA contracting officials during negotiations. It also settles claims that incomplete and inaccurate information submitted by Sun resulted in defective pricing of its contract with the U.S. Postal Service and GSA contracts held by two Sun resellers. The Sun kickback allegations are part of a larger, ongoing investigation of government technology vendors that has resulted in six settlements to date with firms that provide consulting and systems integration services. (Research Note includes copies of second amended qui tam complaint, DoJ intervention complaint, and historical perspective and documents detailing complaints and settlement of related matters. 1,830 words) . . . More
Consulting Leadership News: Wipro, Accenture, Segal Advisors, Deloitte, Booz Allen, PwC, KPMG, and Proudfoot Monadnock Research - 10 February 2011 MR - Wipro Technologies announces major reorganization; Kirk Strawser continues to lead Wipro Consulting. Accenture names Sander van 't Noordende as group Chief Executive of Management Consulting, succeeding a retiring Mark Foster; Jean-Marc Ollagnier succeeds van 't Noordende as group Chief Executive of Accenture's Resources operating group; Shawn Collinson is appointed Senior Managing Director,Growth & Strategy, succeeding Karl-Heinz Floether who will retire later in 2011; Avinash Vashistha is appointed country Managing Director and Co-Chairman of Accenture India; and Kay Kapoor is named U.S. federal government practice leader. Daniel F. Westerheide, Vice President and Consultant, was named Asset/Liability Modeling Practice Leader at Segal Advisors. Deloitte appoints Bob Contri as leader of U.S. Banking and Securities Sector practice, and as a Vice Chairman, succeeding Jim Reichbach, who continues to lead the overall Financial Services Industry group; Former Director of the U.S. FDIC Division of Resolutions and Receiverships, Mitchell L. Glassman, joins Deloitte Consulting as Director. Booz Allen Hamilton appoints Mark Gaumond to its Board of Directors. PwC Appoints U.S. Department of Treasury Executive, Douglas W. Roeder, within its Financial Services Regulatory Practice. KPMG Switzerland has appointed Marc Gossi as its new Head of Performance & Technology. Alexander Proudfoot appoints John Sharman to Head Global Procurement Practice. (2,742 words) . . . More
Consulting Leadership News: Roland Berger, Simon Kucher, PwC, E&Y, FTI, CSC, Navigant, Natoma Partners, and Capgemini Monadnock Research - 14 January 2011 MR - Roland Berger Strategy Consultants appoints 21 new international Partners. Simon-Kucher & Partners appoints nine new partners to the leadership team, increases firm's global focus. Pierre Nanterme assumes role of Accenture CEO; William Green continues as Chairman. PwC U.S. names three direct-admit principals in valuation services practice. Ernst & Young's Financial Services Office appoints Executive Director within Advisory practice. FTI Consulting appoints global leader of its Transaction Advisory Services (TAS) practice. CSC names director of Cybersecurity within its U.K. business. Navigant appoints Managing Director in its Healthcare Practice. Three Former Huron Managing Directors form Natoma Partners. Capgemini expects to add 550 technology jobs in North Carolina. (4,450 words) . . . More
PwC U.K. Affiliate Completes Purchase of Diamond's U.K. Business Monadnock Research (VIII N54)- 8 Nov 2010 MR - PricewaterhouseCoopers' U.K. affiliate has acquired Diamond Management & Technology Consultants' U.K. business following the $376 million acquisition of Diamond's U.S. business by the PwC U.S. after receiving shareholder approval on 2 November. The transaction adds five new partners and 35 staff to the firm's growing U.K. consulting practice. The U.K. advisory business had F-2010 revenues of £804 million, not including Diamond's results, up from £737 million in the 2009 fiscal year. The U.K. member firm in the aggregate had turnover of £2,331 million, up from £2,248 million in F-2009. Underlying net revenues also increased 4 percent to £2,069 million. (585 words) . . . More
Consulting Leadership News: Sopra, PwC, Navigant, True Partners, Convergys, and Yankee Group Monadnock Research - 7 November 2010 MR - Sopra Group appoints Managing Director of the firm. PwC U.S. relocates Northeast Emerging Services practice to Cambridge Innovation Center; Appoints new partner in Northern California Risk Assurance practice. Navigant appoints Managing Director and western U.S. Healthcare practice lead; Managing Director in Healthcare Disputes, Compliance & Investigations practice. Convergys signs agreement with Jeffrey Fox to stay on as President and CEO of the firm. True Partners names Director in National Unclaimed Property practice. Yankee Group names new CEO. (1,415 words) . . . More
PricewaterhouseCoopers Completes Diamond Acquisition; Launches PwC Diamond Advisory Monadnock Research (VIII N53) - 3 November 2010 MR - PricewaterhouseCoopers has completed its $376 million acquisition of Diamond Management & Technology Consultants following shareholder approval on 2 November. Diamond's outstanding shares were acquired by PwC for $12.50 per share in the all-cash deal, and it is now an indirect wholly owned subsidiary of PwC's U.S. affiliate. All of Diamond's former Practice Partners joined PwC as partners or principals, and most of its professional staff appears to have been retained. There was likely, however, significant turnover among non-professional staff, since most of these functions were redundant and could be integrated within PwC's existing operations. PwC retains the Diamond brand, and the practice will now be know as PwC's Diamond Advisory Services. The organization will continue to be led by its former President and CEO, Adam Gutstein. (Research Note includes acquisition details; Synergy of client industries, service areas, and geographical focus; Staffing and operational metrics; Rationale for sale; Diamond employee stock and option treatment; PwC Diamond rate premium strategy; and MR consulting client perspective on transaction, risks, and motivation; 3 charts; 2,530 words) . . . More
Deloitte Claims Largest Global Professional Services Firm Title from PwC, by .03 Percent Margin Monadnock Research (VIII N45) - 5 October 2010 MR - Deloitte has claimed the title of largest private professional services firm globally for the first time, beating out PwC by $9 million (US), a margin of just .03 percent. Aggregate member firm fiscal 2010 revenues were $26.578, as previously announced, essentially unchanged in local currency terms. PwC announced fiscal 2010 revenues of $26.569 billion this week. Deloitte surpassed PwC in both revenue and headcount. For the fiscal year ended 31 May, Deloitte had aggregate member firm employees of around 170,000, compared to PwC's 161,000. Revenues grew just 1.8 percent from $26.1 billion in fiscal 2009. Consulting was the only segment that grew, increasing by 14.9 percent to $7.9 billion. Audit revenues slipped by 1.4 percent to $11.7 billion (US). Financial advisory was down by 1.6 percent, and tax revenues slipped by 5.3 percent to $5.4 billion. Research Note includes 4 graphics. (1,005 words) . . . More
PwC Fiscal 2010 Global Revenues Grow 1.5 Percent; Consulting Up 15 Percent Monadnock Research (VIII N44) - 4 October 2010 MR - PricewaterhouseCoopers (PwC) reported aggregate gross revenues of $26.569 billion (US) for its worldwide network of member firms for the fiscal year ended 30 June 2010, a 1.5 percent increase over fiscal 2009 and a .3 percent increase in constant exchange rates. PwC's consulting businesses had the highest growth rate, up 15 per cent over 2009. PwC's overall advisory businesses had revenues of $6.2 billion, up 7.9 per cent. Advisory results included improvement in the economic environment and revenues from acquisitions. Revenues for assurance services were down 1.3 percent and tax was down 2.9 percent. Research Note includes 2 charts. (505 words) . . . More
PwC to Launch Global Rebranding Monadnock Research - 16 September 2010 MR - PricewaterhouseCoopers has updated its branding. PwC says the new look includes a simplified logo with the initials "pwc" in lower-case type. PwC expects the formal shortening of the name to provide consistency and simplicity for member firms, and a more unified presentation across its global network. "PricewaterhouseCoopers" will remain the full legal name globally, and will be the name used to sign audits. The new logo was designed to be easier to use and better suited for digital and online use. The new identity will be formally introduced globally on 20 September 2010 when PwC's websites will be re-launched. (380 words) . . . More
PwC UK Announces 15 Percent Increase in Fiscal 2010 Consulting Revenues Monadnock Research - 6 September 2010 MR - The U.K. member firm of PricewaterhouseCoopers International had turnover of £2,331 million, up from £2,248 million in FY09. Underlying net revenues also increased 4 percent to £2,069 million. The advisory business had revenues of £804 million, up from £737 million in FY09. The assurance group had revenues of £893 million, up from £861 million in FY09. Tax had turnover of £634 million, down from £650 million in FY09. Profit available for division among partners decreased by 7 percent to £622 million. (555 words) . . . More
Consulting Leadership News: Atos Origin, PwC, CSC, Logica, E&Y, KPMG, Mercer, Navigant, Buck, and Kurtzman Carson Monadnock Research - 4 September 2010 MR - Atos Origin Appoints CEO of Atos WorldGrid; Executive Vice President for Talent Management and Communications. PricewaterhouseCoopers LLP names U.S. and Global Talent Leader; U.S. Recruiting Leader; and Co-leader of Indirect Tax practice. CSC Appoints Senior Executive Advisor and Vice President for its North American Public Sector Civil and Health Services Group. Logica names CEO of North American operations. Ernst & Young appoints new leader for Advisory Power & Utilities Practice. KPMG International names global head of audit. Mercer appoints Managing Director, Taiwan. Navigant appoints Managing Director within Financial Risk Management Practice. Buck Consultants appoints communications practice lead. Kurtzman Carson Consultants appoints Director of Corporate Restructuring Services. (2,425 words) . . . More
Diamond to be Acquired by PricewaterhouseCoopers for $378 Million Monadnock Research (VIII N35) - 24 August 2010 MR - PricewaterhouseCoopers LLP has entered into a definitive merger agreement where it will acquire all of the outstanding shares of Diamond Management & Technology Consultants for $12.50 per share in an all-cash deal. The transaction represents a premium of 31 percent to Diamond's closing share price of $9.54 on 23 August, valuing Diamond at around $378 million. The acquisition is expected to be completed in the fourth quarter, pending shareholder approval and anti-trust clearances. The deal has already been approved by the boards of both firms. Diamond will be absorbed within PwC's Advisory group following the acquisition. (Research Note includes acquisition details; Diamond client industries, service areas, and geographical focus; staffing and operational metrics; transaction risks and motivation; PwC/Diamond Merger Agreement; and MR consulting client perspective. 1 chart. 1,600 words) . . . More
Altus Purchases PwC U.S. Real Estate Advisory Practice Monadnock Research - 3 August 2010 MR - Altus Group has completed the acquisition of the real estate appraisal management practice of PricewaterhouseCoopers LLP (PwC). It financed the acquisition through a combination of cash, bank financing and equity. Altus says the acquisition enhances its ability to operate globally, while broadening its U.S. capabilities. The acquired teams will operate from offices in New Jersey, Texas, California and Georgia, and Altus' existing locations in New York, Hawaii and Florida. (270 words) . . . More
Hewlett Packard Settles with U.S. Justice Department Over Alleged GSA Contracting Violations Monadnock Research (VIII N28) - 2 August 2010 Monadnock Research Note - Hewlett-Packard has reached a settlement in principle with the U.S. Department of Justice to resolve an investigation into HP's GSA Multiple Award Schedule contract and civil charges associated with the "Rille" complaints and alleged kickbacks involving HP. The settlement awaits approval of the U.S. Justice Department, the Arkansas Federal Court, and Federal agencies involved in associated procurements between 1997 and 2007. Several other firms also charged in Rille complaints that resolved their matters years ago, settled for aggregated amounts that were 7 times less than the amount HP appears poised to pay. HP admits to no improper conduct in the settlement. Research Note includes a copy of the HP complaint, filed under seal in April 2007. (635 words) . . . More
Consulting Leadership News: Roland Berger, PwC, Cyber, McGladrey, Buck, Accenture, Aon, Navigant, Capgemini, and Segal Monadnock Research - 28 July 2010 MR - Roland Berger leaves Roland Berger; Firm appoints Executive Committee and Supervisory Board Members; Appoints and elevates 27 partners. PwC appoints 84 new Partners, including 57 new partners in the U.S. member firm; Plans to cut several hundred positions in its Tampa, Florida IT operation. Cyber appoints CEO and SVP of Commercial Operations. McGladrey hires National Leader for its Business Consulting Practice. Buck Consultants appoints Executive Managing Director. Accenture names Global Managing Director of R&D and Alliances. Navigant Economics appoints four Managing Directors and three Directors. Aon appoints Senior Vice President of Human Capital Practice. Capgemini names head of Capital Markets practice for North America and U.K. Segal appoints Senior Vice President. (7,400 words) . . . More
PwC Makes Internal Training Courses Available to Clients for Free Monadnock Research - 21 July 2010 MR - The U.S. member firm of PricewaterhouseCoopers (PwC) is making much of its internal training material openly available and free online to clients and students through "PwC Open University," not to be confused with The Open University in the U.K. According to PwC, this is a first-of-its-kind initiative that it is making available to corporations, higher education, and public service organizations to provide executives, faculty, students, and regulators around the world an expansive and growing library of award-winning training courseware developed by the firm. PwC Open University launches with 150 functional and industry-specific courses. (424 words) . . . More
PwC Affiliates Launch Shared Services Venture in India Monadnock Research - 15 July 2010 MR - Five PricewaterhouseCoopers affiliates have launched a shared services operation in India, creating PricewaterhouseCoopers Service Delivery Centre [Kolkata] Private Limited. The center launches with approximately 600 professionals from the operation's predecessor entity, and plans to grow to more than 2,000 staff over the next three years at the service delivery center in Kolkata, India. PwC is contesting a livemint.com report that the center is a client business process outsourcing center. But it remains unclear whether the strategic focus of the new firm will be on providing backoffice BPO and knowledge support services to PwC member firms, or to provide those services internally and externally to audit and advisory clients. (545 words) . . . More
PwC Forms Alliance with Leavitt Partners Monadnock Research - 12 June 2010 MR - PricewaterhouseCoopers LLP (PwC) and Leavitt Partners have formed a strategic alliance to advise organizations on important food safety matters, including the potential impacts of proposed U.S. food safety legislation. Leavitt Partners Chairman Michael O. Leavitt previously served as the administrator for the U.S. Environmental Protection Agency. He is also the former Secretary of Health and Human Services in President George W. Bush's Cabinet, and was a three-time elected governor of the state of Utah. (535 words) . . . More
Bader Al Wazzan & Co. Defects PwC Network to Join Deloitte Monadnock Research - 25 May 2010 MR - Former PricewaterhouseCoopers (PwC) member firm Bader Al Wazzan & Co. has been acquired by Deloitte's Middle East practice. The combined firm will now be known as Deloitte & Touche, Al Fahad, Al Wazzan & Co. Deloitte's Kuwait firm has been providing audit and advisory services to clients since 1949, and the practice that Bader Al Wazzan joined in 1980 was set up to provide audit and tax services in the early 1960's. This comes on the heels of a Financial Times report that PwC has been poaching staff from firms in the Middle East. According to the report, there has been a particular focus on Ernst & Young from whom it has reportedly acquired close to a fifth of its in-region partners, most from E&Y's consulting operations. (453 words) . . . More
ChinaCare Group Consulting Team Joins PwC China Monadnock Research - 13 May 2010 MR - The international healthcare consulting team of ChinaCare Group has joined PricewaterhouseCoopers (PwC) China to guide the expansion of the firm's healthcare and life science consulting practice across China and Hong Kong. The team joining PwC includes David Wood, the former president and senior partner of ChinaCare Group, Dr. Xiaofeng Jia, and Victor Chen. According to PwC, while at ChinaCare Group, the consulting team played a key role in developing China's healthcare marketplace. (800 words) . . . More
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