Boston Consulting Group's human resources development and mentoring system

BCG

The Boston Consulting Group takes it human resources very seriously; their employees and the employee's skills are their means of production and are the firm's most important assets. BCG has devoted significant resources to ensuring that they hire the brightest candidates and keep the top performers. In 1997, CEO Carl Stein establish "the people team" which is responsible for monitoring the success of BCG's recruiting, consultant development, project staffing, performance reviews and promotions. Career development committees (CDC) at the local and regional levels support the "people team" and are responsible for all activities expect recruiting.

Each new recruit is assigned a CDC advisor who is the individual responsible for providing feedback on the consultant's performance. The advisor and the consultant identify action plans for improving the consultant's weaknesses and they create a career plan, which includes an estimate of when the consultant may be promoted to a project lead. In addition to a CDC advisor, a consultant is assigned two other resources to help them assimilate into the BCG culture. They share an office with a second year consultant or a newly promoted project leader and receive a mentor. A mentor is an officer of the firm and is responsible for nurturing the consultant.

This case provides several issues for consideration: recommendations for the consultants based on their last CDC performance review, recommendations on how the mentors can better assist their consultants and are recommendations for changes to the human capital management system.

The consultants

This business case presents four consultants who have just completed their first year at BCG. Each has worked on a minimum of two projects and has received two CDC performance reviews. Each consultant has had different issues to deal with as they assimilated into the BCG culture: Josh had to deal with returning to BCG post- graduate school, Eric's challenge was being an industry hire, Michael was a hire from academia with a PhD in sociology and little to no work experience and Madeleine was struggling with her simultaneous success and boredom.

BCG has a policy of up or out; if you did not achieve a promotion to project lead within 26 to 30 months, you would be asked to leave. In order to be promoted, a consultant needed to exhibit strong performance is three areas: strong analytical problem-solving ability, effective communications and interactions with both colleagues and clients and that their personal values aligned with the values of BCG.

The mentors

In this business case we meet four mentors: Matt, Michael Larissa and Eric. All are vice-presidents and officers of the firm. Matt and Larissa were experience and proactive mentors, while Michael was a passive mentor and Eric was inexperienced and unsure of his role. In 2001, mentoring became an element of the performance criteria for officers and their rating would effect both discretionary compensation and timing of promotions.

Recommendations for the consultants and their mentor

Josh Coopersmith and Matthew Glassman

Josh is on track to be promoted within a year and it was recommended that he apply for the Ambassador program, which is available to second year consultants and first year project leaders. Josh thought this would help him stand out amongst his classmates but he worried that it could affect his ability to be promoted. It is my recommendation that Matt, encourage Josh to stay in Chicago until he was promoted. After receiving his promotion, Josh could then apply to the Ambassador program. This would also give his family a chance to plan for a possible overseas relocation.

Michael Nelson and Larissa Ogden

Michael has not been successful in transitioning from academia to consulting. His presentation, slide writing, analytical and client management skills are sub-par. He is viewed as unpolished and lacking in confidence. I recommend that Larissa be very frank with Michael. Jointly they should map out a plan for Michael to improve his performance within six months and they should map out a plan for Michael's career if he must leave the firm.

Madeleine Lagarde and Eric Peret

Madeleine is the dream consultant and will be promoted quickly. The catch is that Madeline is bored, unhappy; uncomfortable with the praise she is receiving and believes she is better suited to run a business rather than advise a business. After a mediocre start to her mentoring relationship with Eric, she has decided she needs to be upfront with him at their next meeting. Eric is an inexperienced mentor and this situation maybe challenging. I recommend that Eric meet with Madeleine and share his experiences. He may need to consult with a member of the CDC before dispensing advice. Given the value employers place on BCG consultants, I recommend that the firm encourage Madeleine to stay commitment for at least three years total. They must work with her to make sure she is getting staffed to projects that interest her and tone down the praising.

Recommended improvements for the human capital management systems

BCG measures a mentor's performance based on the mentor's ability to achieve high revenues and high apprenticeship performance. While BCG had establish a way to measure performance and link it to compensation and advancement, the firm did not provide training or expectations of what it meant to be a good mentor. The failure to provide training has led varying quality of mentors. BCG needs to establish criteria for good mentorship and provide training on how to mentor. This will improve both the quality and consistency of their mentoring program.