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Successfully split off from McKinsey An employee of McKinsey & Co. in the 1930s, Andrew Thomas Kearney split off from that firm in 1939 to start his eponymous firm in Chicago. Solid results with early engagements, including an extensive study of U.S. Steel and a longtime relationship with the Kroger supermarket chain, helped put A.T. Kearney on the map. Steady expansion exploded in the 1970s, when then-CEO Ken Block instituted the "Go for Growth" program, doubling the firm's size by 1980. While this growth spurt was impressive, in recent decades, the firm's growth has actually accelerated: Kearney has doubled in size every three years since 1984 when current head Fred Steingraber became CEO. Specialties A.T. Kearney generally targets targets Fortune 200 companies. While the firm claims expertise in many industries, it is particularly strong in automotive, financial institutions, consumer industries, and retail. Unlike some of its competitors, Kearney believes in sticking around to help its clients during implementation. In a 1998 survey conducted by Louis Harris, more than 90 percent of the firm's clients said they were satisfied or extremely satisfied by A.T. Kearney's work. So, it comes as no surprise that the firm has managed to earn a great deal of client loyalty: More than 75 percent of Kearney's business comes from past clients. A.T. Kearney currently ranks as the second-largest high-value added management consulting firm, second only to McKinsey & Co., with operations in 58 cities in 34 countries. The clever canary Under the tenure of current CEO Fred Steingraber, A.T. Kearney has experienced steady growth. In 1995 EDS, the gigantic Texas-based computer and information services giant founded by Ross Perot, acquired the firm. EDS was seeking to shore up its money-losing consulting services. Steingraber was attracted to EDS' piles of money and experience in information technology - a growing business area for consultancies. EDS merged its consulting service division under A.T. Kearney's name and direction. Thus, the venerable firm earned distinction as "the canary that swallowed the cat." Strategy marries technology The marriage between EDS and A.T. Kearney was a resounding success from the start. The firm achieved revenues of $870 million in 1996, hit $1.1 billion in 1997, and reached $1.23 billion in 1998. With its massive international expansion efforts, Kearney earned more than half of its revenues outside the U.S. in 1998. In one of its overseas forays, the firm formulated its own business model designed to help Indian banks develop and integrate IT solutions more efficiently. Industry slowdown A few years after the marriage with EDS, Kearney endured a slight downturn. Revenue growth, which was 30 percent in 1996, fell to 16 percent in 1998. As a result of reduced revenue, in March 1999 A.T. Kearney fired nearly 200 consultants and postponed start dates for a number of recent MBA hires. Kearney blamed the financial squeeze on the global economic crisis which led to cuts in overseas projects. The layoffs totalled 5 percent of A.T. Kearney employees worldwide, though the figure within the United States was closer to 10 percent. The number of MBA recruits is also being cut from 175 MBAs to 150 in 1999. Drastic times, new measures The decline in consulting contracts from parent company EDS - once one of Kearney's largest clients - also contributed to the downswing. Under the strict regime of new CEO Dick Brown, EDS announced a 1999 restructuring effort. The technology services firm intends to cut 4 percent of its workforce - some 5,200 employees. EDS will also move away from its traditional industry units and instead split its operations into five geographic regions: Europe; the Middle East; Canada; Latin America; and Asia-Pacific, Japan, and the U.S. So far, so good Since their merger, A.T. Kearney and EDS have made a commitment to collaborate in order to strengthen their respective brands. As part of this effort, EDS set aside $50 million for an upcoming marketing campaign. A.T. Kearney also contributes CEO-level insights and strategies to a new business unit formed by EDS in 1999 (called E.Solutions), which will focus on developing and implementing e-business strategies.
Kearney recruits on the campuses of selected colleges and universities for both business analysts (college graduates) and associates (MBAs). Although the majority of its consultants arrive fresh from business school, the firm also welcomes experienced consultants (the firm's recently hired head of strategy is from Bain). Insiders report that these applicants are more likely to have extensive and intense pre-interview phone screenings, however. Kearney also hires a fair number of new associates and managers through headhunters. Kearney is a place for the intelligent and the ambitious, but it is also for the persistent. One insider reports that he was able to make his way to the first round after failing to sign up for on-campus interviews, by "making an informed and dramatic plea for a much-coveted 'wildcard spot.'" Those who are dead-set on working for Kearney shouldn't lose heart. Another insider reports that, despite a "relatively shoddy resume," he was able to stake claim on a job offer by "nailing his interviews." Kearney?s interview process typically includes two rounds, with two interviews in the first round and three in the second, insiders tell us. Interviews are generally 30 to 50 minutes each and include a smattering of case studies, "fit" questions, guesstimates, and on rare occasions, brainteasers. In the past, case interviews and fit interviews (which are designed to see if an applicant's personality complements or clashes with firm culture) were equal in number. Our contacts tell us, however, that more recently the balance has swung in favor of case interviews. Both associates and analysts are given case study questions, although typically only associates are given brainteasers. Insiders report that A.T. Kearney interviewers are "kind" and "supportive." Although the interview questions – especially the case studies – are themselves often tough, the interviewers don't try to bully or intimidate. One insider reports: "The Kearney consultants who interviewed me had a minimal amount of attitude. They were bright, friendly, and very likable." Other insiders report that their overwhelmingly positive impressions of interviewers led them to pick Kearney over other firms. The firm recently instituted a new recruiting program to increase diversity among its consulting workforce. The percentage of minority hires increased in 1998 to 39 percent, although the percentage of women rose to a slightly less impressive 33 percent (at the MBA level). In terms of diversity recruitment, Kearney makes a point of attending a variety of minority and women's events such as the Women in Leadership Conference. Business analysts typically work at A.T. Kearney for two or three years. Exceptional business analysts may be promoted to associate positions during their time at A.T. Kearney. Analysts who have satisfactorily completed the analyst program are frequently invited to obtain an MBA at Kearney's expense; after that point, they are required to work at the firm for a minimum of three years. This program is extremely popular, with 80 percent of a recent class attending business school on Kearney's dime. While Kearney has no fixed promotional timetables and advancement is based on performance, MBAs generally remain at the associate level for two to three years, before moving on to a managerial level. After about another three years, managers become principals. The next step up is vice president, equivalent to partner at privately held companies. Unlike some of its competitors (most notably McKinsey), Kearney does not follow an "up-or-out" policy.
Lifestyle-conscious A.T. Kearney Perhaps even more than other consulting firms, A.T. Kearney considers management consulting a "lifestyle," not just a career. As a result, Kearney employees work "long days and even longer weeks." In addition, Kearney employees report plenty of travel ? over 65 percent of Kearney employees have worked on engagements outside their home offices. As part of its "zealous" commitment to quality, Kearney maintains a close eye on employee performance. The firm conducts periodic evaluations to assess the quality of each employee's work. Intense work and social activity Despite an environment that one employee describes as "intense," A.T. Kearney employees get along well with each other, with "plenty of socializing" among project team members. "There are a lot of extracurricular activities," says one consultant. "I pick the ones I want to go to and don't go to the rest - otherwise I'd be doing company stuff seven days a week." Another consultant says: "I find the camaraderie here very appealing, because this industry is somewhat cutthroat, and it's good to have that human touch." After all, Kearney was ranked 12th overall among Fortune's "50 Companies MBA's love" in 1999. The issue of diversity Kearney is said to employ "a mix of people including new MBAs, undergrads, and industry experts - especially from the operations and the high-tech industry." Insiders consistently report that there is "no pressure to conform to any type of image." Indeed, unlike the drone-in-a-suit stereotypes that permeate other firms, "you will rarely hear about 'the typical Kearney person.'" Despite one insider's assertion that there is "no A.T. Kearney prototype," not everybody agrees that the firm'[s diversity is up to par. "Kearney is not doing anything extraordinary in the diversity department," concedes one. "Kearney's better than most, which is not to say that it's good. About a third of the people I entered with were women. But I didn't see that many non-Caucasians, especially at the top levels. That's probably a function of the fact that this emphasis on diversity is a fairly new thing. Diversity hiring has only been in effect for four to five years, and it will probably take another four to five years before we see a difference at the top." Another insider praises Kearney for at least making the effort: "The firm's efforts are genuine, I'm sure. Kearney was a presence at a recent NAACP conference I attended." The firm also supports the National Society of Hispanic MBAs, the National Society of Black Engineers, and the National Black MBA Association. Kearney has been a corporate sponsor of the latter's annual conference for the past seven years, enabling the firm to build relationships with black business school students as part of the recruiting process. Also, for the past five summers, Kearney has recruited undergraduate business analyst interns in partnership with minority non-profit INROADS. And 1999 will mark the sixth summer that Kearney has employed college students as part of the Sponsors for Educational Opportunity (SEO) minority program. Flexible promotions - and even casual dress Many consulting firms have a rigid promotion process. Not so at A.T. Kearney. One consultant praises the lack of an "up-or-out" policy. "That kind of policy creates a lot of insecurity. It's survival of the fittest, and I don't know how much teamwork a culture like that would encourage. Kearney doesn't have that policy, and it makes it a nicer place to work." In June 1999, A.T. Kearney announced that its employees throughout North America would have the option to dress business casual five days a week - a dramatic change from years ago, when A.T. Kearney had no casual days at all. Thumbs up to "the dollars" As far as perks are concerned, insiders give kudos to Kearney's "nice, strong salary." One insider claims that "the dollars" are "higher than average," as well as "a notch above BCG and Bain." In addition, Kearney is reportedly trusting and "very relaxed" about its billing arrangements. "I've worked at other firms where there is a daily allowance or per diem maximum," reports one insider. "There's nothing like that at Kearney."
Recruiting Department Recruiting Department 222 West Adams St.1 Chicago IL 60606 (312) 223-7548 More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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