Bcg the Boston Consulting Group

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.

Eric Wong and Michael Lao

Eric does not seem like a good fit for BCG; he is passive in asking for help or staffing assignments, he is perceived to be unpolished and has been unable to balance life and work. Eric is intimidated by his mentor and refers to him as Mr. Lao. Mr. Lao, has also failed Eric -- he has made minimal efforts to provide support and is passively waiting for Eric to come to him. Some of this passivity by Eric and Mr. Lao could be cultural and/or environmental to the Hong Kong office. My recommendation for Eric is to overcome his fears and speak openly with his mentor. Jointly they can determine how to continue his improved performance without having to work 70-80 hours a week. Additionally, Eric needs to be honest with himself; he needs to ask himself if he has the skills to be promoted, does he have the emotional maturity to proactively request staffing assignments and is the consulting lifestyle one which works for he and his family.

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