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At Kearney, we had a monster first quarter followed by a down Q2. Overall we are close to flat YTD. Some things we did to adjust:
1. Laid off staff in Mexico City - about a quarter of the office. They say this office was a problem pre-covid, so perhaps not directly related to the change in conditions
2. 20% pay cut in the UK - down to a 4 day work week for short period.
3. Partners globally are delaying bonuses to ensure that staff get theirs
4. Start dates are delayed globally up to 6 months including the US. PTO "suggested" in the US for 5 days.
5. We are doing very well in SEA, we should grow revenue there in 2020
6. We are hiring in MENA, so again this seems like a bright spot.
They should offer a voluntary 80% cut and go on the beach to some, and keep the others on full pay or something... would be fairer at least. I would be very happy with an 80% cut and chilling
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I read there was an expected 18% decrease in the value of the consulting industry. Unsure how that will be spread across the various firms, but it’s been my impression over the last several years that clients are less willing to pay high fees for ‘pure strategy’ engagements, and look more for partners who are able to help them develop and then implement the strategy
Yes, it will be a shock to actually have to provide real value and with smaller teams.
We will have greater clarity when the public firms report Q2 later this month. Accenture reported in June and was down 1% compared to the similar quarter last fiscal year
Yes I agree, when Marsh/ Oliver Wyman reports that will be the best benchmark for strategy. When FTI reports that can be used as a benchmark for best in industry due to their restructuring bent.
At BCG we are looking at flat YoY revenue in 2020. Perhaps slightly higher than 2019, however far lower than we budgeted at the beginning of the year.