Deloitte and Roland Berger in merger talks

Global consulting and accounting giant Deloitte Touche Tohmatsu Ltd. and Roland Berger Strategy Consultants are discussing a possible merger. In a conference call yesterday, Deloitte Germany Chief Executive Martin Plendl told the press that the two companies would make a decision by mid-December, which is when both companies’ shareholders meet to decide on the deal.

Deloitte’s takeover is expected to create a global strategy consulting arm that would earn about $2.8 billion in revenue each year, explained Plendl. The merger will combine Deloitte’s operations, strategy and company restructuring consulting divisions with Roland Berger, and the merged company will be called Roland Berger Deloitte Strategy Consulting.

Deloitte Touche Tohmatsu is based in New York and has about 170,000 employees globally. Its services include tax, audit, consulting and financial advisory. In 2010, Deloitte's global revenue totalled $26.6 billion.

Roland Berger was founded in 1967 as a consulting firm specializing in marketing consulting. Today, it is a versatile consultancy well known for its business and management research and studies. Last year, the company employed about 2,000 people in 27 countries and made 616 million euros in sales.

“A merger opens up a unique opportunity for growth for both firms,” said Plendl. Roland Berger confirmed that discussions were underway in a statement saying, “Discussions with Deloitte are taking place to open new and fascinating growth prospects for our company.”

Vault 2011 prestige rankings: Top consulting firms

Employment and careers portal Vault.com released the 2011 prestige rankings for consulting firms - The Vault Consulting 50 - in late August in an attempt to determine the best consulting companies to work for.

The rankings were determined by a formula that factored in the results of Vault's Management and Strategy Consulting Survey, conducted annually between March and July. More than 4,500 consultants were asked to rate the prestige of their peer consulting firms on a scale of 1 to 10 as well as their own firm's quality of life.

"We went out and asked consultants what mattered most to them in choosing an employer and prestige, while important, was not the biggest determining factor," said Brian Dalton, managing editor at Vault.com. "According to consultants, company culture was the most important factor, followed by practice strength, prestige and compensation, along with several other factors."

The Top 10 Firms from the Vault Consulting 50 Rankings for 2011 are:

1. Bain & Company
2. The Boston Consulting Group
3. McKinsey & Company
4. Analysis Group
5. The Cambridge Group
6. Deloitte Consulting
7. Oliver Wyman
8. A.T. Kearney
9. Triage Consulting Group
10. Censeo Consulting Group

Respondents note that Bain "set the bar (with McKinsey) in terms of prestige” and noted that the firm was “great for management consulting."

In terms of quality of life, one strategy consultant at Bain & Company said of the firm: "There is no other company I’ve seen in my 10 years of professional experience with a stronger, healthier culture." A Toronto staffer added, "It is a demanding career, but yes, I have been able to live a very rewarding personal life over my last 10-plus years at Bain."

Boston Consulting Group also received high praise. Said one health care consultant: "BCG is a fantastic place to work. They go the extra mile to invest in their consultants. The work is interesting, the people are brilliant, and the compensation and benefits are second to none."

Other smaller, more niche firms that were recognized for their quality of life, include Analysis Group (No. 4), The Cambridge Group (No. 5), Triage Consulting Group (No. 9), Censeo Consulting Group (No. 10), and West Monroe Partners (No. 11).

As an example of why these smaller niche firms are succeeding, one senior consultant at The Cambridge Group said, "I feel very lucky to have found TCG. I am constantly challenged and enjoy the work and the people. As a testament to the great experience I have had, I'm the only one of my friends from business school who has not switched companies since leaving school."

According to Mr. Dalton, more jobseekers are discovering the benefits of joining these niche consulting companies. "These firms often get overlooked in the prestige rankings in favor of the more well-known firms," he said, "but they shine in the quality of life areas that many consultants care most about, leading to some deserved recognition in our Vault Consulting 50 Rankings."

"Bain & Company, and Boston Consulting Group for that matter, historically dominates many of our quality of life categories, in addition to carrying a lofty reputation in the industry," added Dalton. "McKinsey, which is perennially the most prestigious firm, slips due to lower firm culture and work/life balance scores areas - where smaller firms tend to have the advantage."

View the entire Vault Consulting 50 Rankings for 2011.

Deloitte ranked second largest energy consulting organisation

Kennedy Consulting Research & Advisory recently released the results of its report, "Energy Consulting Marketplace 2009-2012," in which tax and consulting firm Deloitte is ranked second largest energy consulting organisation by aggregate global revenue and leader in several related categories.

The report states:

• Deloitte ranks as the second largest organization for energy consulting by measure of aggregate global revenue.
• Deloitte is a leader for energy consulting by a measure of aggregate global revenue.
• Deloitte is a leader in energy consulting capabilities and has the greatest breadth of capability of any organization.
• Deloitte has one of the largest and strongest upstream practices.
• Deloitte is one of only two organizations with at least 5 percent aggregate market share.

Aiming to facilitate solution development and client service, the consulting giant and its member firms have established Centers of Excellence for oil and gas in a number of cities across the globe: London, Madrid, Rotterdam, Moscow, Oslo, Buenos Aires, Johannesburg, Singapore, Dubai, Calgary, Houston, Washington, and others.

In the report, Kennedy Consulting points out a number of Deloitte's strengths and capabilities in the oil and gas consulting industry, including strong IT consulting, risk managemenent, support, and industry-specific capabilities in the energy sector.

Dick Cooper, Deloitte Touche Tohmatsu (DTT) Global Energy Consulting Leader commented on the report, saying, "To help Deloitte member firms’ oil & gas clients address issues critical to the industry, including carbon management, ongoing cost management regulatory complexity, ongoing mergers and acquisitions, and health and safety, Deloitte has executed a number of acquisitions of smaller consulting firms around the world, which has greatly strengthened Deloitte’s client service offerings and capabilities. Over the past several years, Deloitte member firms have also been developing services in the area of climate change and carbon markets, resulting in a geographically diverse group of advisors who have successfully built significant practices in this area."

Find the latest energy consultant jobs on ConsultancyRoleFinder.co.uk.

Government spending on consultants on a sharp rise

The Home Office spent £140 million on external consultants in 2008/09 despite having thousands of experts on staff. This is a 46 percent increase over the previous year.

The consulting firms that benefited the most were PA Consulting (£24.5 million), Deloitte (£21 million) and Ernst and Young (£13.8 million).

PA Consulting was contracted to work on the national identity scheme and the Interception Modernisation Programme (IMP). Deloitte and Ernst & Young also won contracts for the national identity scheme, a project that has since suffered a climb down.

The government has been criticized for spending so much money on external advisors. “Whenever anyone questions the large salaries paid out to Home Office staff we are told it is because they are the best people for the job,” said Mark Wallace, the campaign director of the TaxPayers' Alliance. “If that is the case why on earth are we paying an army of consultants to tell them how to do their job properly? Whitehall must drastically rein in spending on consultants if it is ever going to control its costs, especially at a time of recession.”

A Home Office representative responded: "The Home Office spend with consultancy firms is comparable with other large scale and complex service delivery organisations. All Home Office contracts are subject to a competitive process.”

Deloitte reaches new milestone in diverse leadership, gets saluted as Best Company for Multicultural Women

Deloitte has reached a high point in its commitment to diversity in leadership. The consulting firm has chalked a new milestone, topping 1,000 women partners, principals and directors in the U.S.

The company's historical milestone reflects its commitment to supporting women and minority leaders through its Initiative for the Retention and Advancement of Women (WIN). Deloitte was the first Big Four firm to officially launch such a program.

Deloitte chief executive Barry Salzberg said: “We take great pride in reaching this major achievement. We work in a highly competitive, knowledge-based profession where having the best resources and the most intellectual capital is a critical determinant of our success. At Deloitte, we are focused on improving leadership opportunities for all of our people, regardless of gender or background, and this landmark highlights the fostering of a culture in which everyone has the opportunity to reach their potential.”

“It is extremely rewarding to see the tremendous progress we have made since launching our Women's Initiative in 1993,” said Barbara Adachi, national managing principal of Deloitte LLP's WIN. “Over the past 16 years, we have seen how having a strong group of female leaders inspires new thinking and brings about new approaches to business challenges, which in return enables us to provide the best possible solutions to our clients' problems. This fresh thinking has led to a number of innovations, including mass career customization, a new workplace model that enables professionals -- women and men -- to build sustainable careers.”

In related news, Deloitte was named a 2009 Best Company for Multicultural Women by Working Mother magazine for the fourth consecutive year. The accolade salutes the best 20 U.S. companies each year for their efforts to enhance diversity and inclusion in the workplace.

Cathy Benko, Deloitte's chief talent officer and vice chairman, said: “Maintaining a culture where all of our people, regardless of their gender and backgrounds, can have a rich and rewarding career is paramount to our culture. At Deloitte, we celebrate and harness strength from the diverse backgrounds, experiences and perspectives of our people to the benefit of our organization and our clients. As such, fostering a culture of inclusion and innovation is, and has always been, a top priority for our organization.”

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