10 th Anniversary Meeting of FEACO-VTMSZ New Trends

10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 Quo vadis management consulting - megatrends 2010 Prof. Dr. József Poór President of Organizing Committee

“For a long time, the Swiss had a lock on watch making. They built the best watches money could buy, and by the 1940 s, they produced 80 percent of all watches world-wide. In the late 1960 s, when an inventor presented an idea for a new type of watch, Swiss watch companies rejected it. Believing his designed merit, the man took it to a company in Japan. The name of the company was Seiko. The design of the watch was digital and today, 80 percent of all watches use a digital design. ” ( Maxwell, 1999: 50) 10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 2

Evolution of knowledge doubling 10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 3

Evolution of knowledge management and its technology Peter Drucker (1966) Davenport - Prusak (1998) John Naisbitt (1980) Michel Polanyi (1964) ”velocity - viscosity" John Luck (1689) ”information age" ”knowledge worker" "explicit & tacit KH" "ideas of reflection" E-learning Internet Computer Printing Integration Universalization Hybridization High specialization 10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 4

Evolution of socio-economic environments and their drivers Post – Capitalism/Industrial Capitalism P. Samuelson A. Smith “Value creation thru convergences” “To earn money to shareholders” Post - Socialism K. Marx “Egalitarian value creation to the society” 10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 “Value creation thru Wild or moderated Capitalism” Egalitarianism Individualism Mix approach 5

Clients- trends and tendencies at multinational firms 10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 Globalization Out&in-sourcing M&A Interculturalsensitivity 6

Clients- trends and tendencies at SMEs § Important role of SMEs in employment (40 -68%) and in total sale (38. 8 -59. 1%) § Growing number of self-employed people § Steady birth and death rate of these firms § Firm survival ratios increases by size and age 10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 Usage of managers Create functions IPO Internationalization Outsourcing 7

Clients- trends and tendencies in public sector Adaptive Public Management New Public Management (NPM) Anglo. Saxon World Bureaucratic (traditional) NPM Other part of the World Bureaucratic (Traditional) 1945 10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 1979 1997 Today Effectiveness Client-orientation Openness& transparency Regulations 8

The Five Waves of the consulting industry 5 3 Near- or Outsourcing Age? ? ? Information Age Knowledge, Search and usage information 2 Management Age Combination See the big picture 4 People Age Cooperation Intercultural understanding 1 Industry Age Efficiency Cost consciousness 10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 Innovation Cooperation Knowledge Combination Efficiency 9

Evolution of consultant intelligences 1 Technical Intelligence 2 Left brain IQ EQ Right brain Emotional Intelligence 3 CQ Besides technical KH and skills of consultants, the competency development (i. e. people, culture) is a growing issue Right brain Cultural Intelligence 10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 10

Changes in the nature of consulting intervention Information ? Planning Change Learning Small Big Large Participative Mix role High specialization & global app. . for MNCs All-round app. . for PS& SMEs 10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 Source: Markham 11

Future - find right balance among. . Institutional targets Professional targets Social & ethical targets 10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 12

Thank you for your attention! Contact: József Poór, Principal&Market Leader Mercer Hungary Professor of Management (PTE-KTK) phone: 00 -36 -20 -464 -9168 jozsef. poor@mercer. com 10 th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8 -10, 2006 13