1. “Knowledge Chain” INFRASTRUCTURE KNOWLEDGE DEVELOPMENT CLIENT DEVELOPMENT STAFFING OP MGT LOGISTMKTSTRAT PROFIT MARGIN IT

2. “Knowledge Chain” Pharmaceuticals Consumer Products Banking & Finance Digital - Tech OP MGT LOGISTMKTSTRAT PROFIT MARGIN IT

3. Staffing Mechanisms n What does “staffing” really mean? n How is staffing for engagements facilitated: –Travel & Relocation –Location-specific, redundant hiring –Internal job market -- via intranet –Level-specific staffing requirements/mobility –Incentives –Technology-based substitutes

4. Managing Dual Pressures Pressures for Global Efficiency Pressures for Client Commitment-Responsiveness High Low High Low MULTI-CLIENT: MATCH CLIENT’S STRATEGY & STRUCTURE (Mini-Booz’s) EXPORT: KNOWLEDGE TRANSFERED FROM HQ GLOBAL: FUNCTIONAL & INDUSTRY CLUSTERS TRANS-CLIENT: MIX OF CLIENT-UNITS & INDUSTRY-FUNCT UNITS

5. Trans-Client Strategy: Knowledge Centers McLean, VA Wash, DC HQ Palo Alto, CA DIGITAL-TECH New York MARKETING Raleigh, NC BIOTECH Frankfurt FINANCIAL SVC Tokyo ENGINEERING-TECH Taipei MANUFACTURING N.J. Turnpike CHEMICALS Strategy

6. Trans-Client Strategy: Link Knowledge Center with Client Centers McLean, VA HQ Munich SIEMENS Tokyo TOSHIBA Houston COMPAQ Palo Alto, CA DIGITAL-TECH

8. Client- Specific Teams Knowledge Center Teams Non-Partners Partners (less travel)