2. Quo vadis management consulting - megatrends 2010 Prof.Dr.József Poór President of Organizing Committee 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006

3. 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006 2 “For a long time, the Swiss had a lock on watch making. They built the best watches money could buy, and by the 1940s, they produced 80 percent of all watches world-wide. In the late 1960s, when an inventor presented an idea for a new type of watch, Swiss watch companies rejected it. Believing his designed merit, the man took it to a company in Japan. The name of the company was Seiko. The design of the watch was digital and today, 80 percent of all watches use a digital design.” ( Maxwell, 1999: 50)

4. 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006 3 Evolution of knowledge doubling

5. 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006 4 Evolution of knowledge management and its technology Integration Universalization Hybridization High specialization "ideas of reflection" John Luck (1689) Michel Polanyi (1964) Peter Drucker (1966) John Naisbitt (1980) "explicit & tacit KH" ”knowledge worker" ”information age" Davenport - Prusak (1998) ”velocity - viscosity" Printing Computer Internet E-learning

6. 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006 5 Evolution of socio-economic environments and their drivers Egalitarianism Individualism Mix approach Capitalism “To earn money to shareholders” A. Smith Socialism “Egalitarian value creation to the society” K. Marx Post – Capitalism/Industrial “Value creation thru convergences” P. Samuelson Post - Socialism “Value creation thru Wild or moderated Capitalism”

7. 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006 6 Clients- trends and tendencies at multinational firms Globalization Out&in-sourcing M&A Intercultural- sensitivity

8. 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006 7 Clients- trends and tendencies at SMEs  Important role of SMEs in employment (40-68%) and in total sale (38.8-59.1%)  Growing number of self-employed people  Steady birth and death rate of these firms  Firm survival ratios increases by size and age Usage of managers Create functions IPO Internationalization Outsourcing

9. 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006 8 Clients- trends and tendencies in public sector New Public Management (NPM) Bureaucratic (traditional) Adaptive Public Management Anglo- Saxon World 1945 1979 1997 Today NPM Bureaucratic (Traditional) Other part of the World Effectiveness Client-orientation Openness& transparency Regulations

10. 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006 9 The Five Waves of the consulting industry Innovation Cooperation Knowledge Combination Efficiency 5 Near- or Outsourcing Age??? Industry Age 1 Efficiency Cost consciousness Management Age 2 Combination See the big picture Information Age 3 Knowledge, Search and usage information People Age 4 Cooperation Intercultural understanding

11. 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006 10 Evolution of consultant intelligences Technical Intelligence CQ EQ IQ Right brain Left brain Emotional Intelligence Cultural Intelligence 2 1 3 Besides technical KH and skills of consultants, the competency development (i.e. people, culture) is a growing issue Right brain

12. 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006 11 Changes in the nature of consulting intervention Information Planning Change Learning Small Big Large ? Participative Mix role High specialization & global app.. for MNCs All-round app.. for PS& SMEs Source: Markham

13. 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006 12 Future - find right balance among.. Professional targets Institutional targets Social & ethical targets

14. 10th Anniversary Meeting of FEACO-VTMSZ “New Trends and Tendencies in the Consulting Industry in an Enlarging Europe”, Budapest, November 8-10, 2006 13 Contact: József Poór, Principal&Market Leader Mercer Hungary Professor of Management (PTE-KTK) phone: 00-36-20-464-9168 jozsef.poor@mercer.com Thank you for your attention!