1. By: Group 5
S P Jain Center of Management

2. Situational Analysis
•Consulting Industry
•Company: Arthur D. Little (ADL)
ERM
•Process Flow Diagram
•Risk Break Down Structure
•Risk Response Strategy
•Risk as revenue driver
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4. Management Consulting
Financial Consulting
Technology Consultant
HR Consulting
Environmental Consulting
Multi Sourcing
Pricing Strategies
Off Shoring
Implementation of Strategies
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5. Sources of Revenue
Metals and Natural Resources 1%
Hospitality 1% Currently worth over $100 billion
Food 1%
•US 50%
Transportation 2%
Retail 2%
•Europe 10%
Energy 2% Very good financial gains for 2005-2006
Construction 2%
Chemicals 2%
Media 3%
Electronics 3%
Education 3%
ConsumerProducts 3%
Telecom 4%
Pharma 4%
Healthcare 4%
Professional Services 6%
Utilities 7%
Manufacturing 7%
Insurance 7%
IT 7%
Government 13%
Financial Services 16%
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6. Deloitte, Bain &
New York Company, Boston
Mercer Oliver
Wyman, New York
McKinsey &
Company, New York
Boston Consulting
Booz Allen & Group, Boston MA
Company, McLean
VA
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7. Global
Services/PWC
Zurich
L. E. K. Consulting
London
Arthur D Little
Paris
Capgemini
Paris
Value Partners
Milan
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8. • Founded in 1886
• Innovative Beginnings: Late 1800s-1940s
• Continued Growth Amid Changes: 1950s-60s
• About Arthur D Little
Struggles and Changing Times: 1970s-80s
• Strengthening Operations in the 1990s
• New Arthur D Little – Post 2001
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9. • Owned by Paris based Altran Technologies
• 1000 employees, 30 offices, 20 countries
• 2000 assignments in 60 countries
• StrongAbout Arthur D Little
in Oil and Gas , Telecom ,Automotive
Chemical and Healthcare
• Taking Carbon margin and Environmental
consulting as serious business
• Consulting Experience with many governments
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10. •Brands •History of Chapter 11
•Intellectual Capital •Inability to attract talent
•Relational Capital •Involvement in volatile
•Centers of excellence in various businesses
domains
•New London ,Asia & Africa as major •Political instability
areas for investment and growth •Bad Debts
•Diversification into non •Upcoming regulatory
conventional energy compliances
consulting
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12. Risk Management
Planning
Risk Management Plan
Risk Identification
Risk Register
Qualitative and Integrated Change
Quantitative Risk Management
Analysis
Risk Register (Updated)
Risk Response
Planning Risk Register (Updated)
Risk Register (Updated) Recommended Preventive &
Corrective actions
Risk Related Contracts
Requested Changes
Risk Monitoring and
Control
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13. Enterprise Risk
Technical External Organizational Operational
Obsolescence Political Instability People Dependency Solution Failure
Solution Complexity Customer
Attrition Brand/Image Risk
Demands
Delivery Quality Regulatory Project Assignments with
Compliance Prioritization High Stakes
Competitors &
Market
Natural Calamities
Bad Debts
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14. • Obsolescence – Training and • Political instabilities - Insurance
development • Customer demands – Documentation
• Regulatory compliance – International
• Solution complexity – Constantly certifications
improving processes • Competitors and market – Leverage on
• Quality requirements – brand and intellectual capital, stay abreast
Certifications and methodologies • Natural calamities – Insurance
• Bad Debts – Payments to consultants
should be better managed and accounted
Technical External
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15. • People dependency – Knowledge • Solution failure – Have partnership extending
management into implementation, builds trust and
increases interaction with implementing party
• Attrition and Talent shortage – Better
• Brand/image risk – Choose assignments
Salaries and Improved job profiles carefully
• Project prioritization – Resource • High stakes assignments – Put the best people
rotation at work where the stakes are high
• Living with the legacy – Freshen up • Dependency on volatile domains – Diversify
their approach to work, be a new ADL into energy consulting rather than just oil and
gas. In automotive move into future
technologies
Organizational Operational
Risks Risks
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16. Positive Risk can be:
• Exploited
– Eg. Associations with unstable governments is a risk
because of political instability, but is a huge business
opportunity
• Shared
– Eg. ADL is out of Technology consulting, but they can share
the risk of doing consulting in a new domain by involving a
technology partner
• Enhanced
– Modifies the size of opportunity by increasing positive
impacts and key drivers, so that the probability of the risk
or opportunity increases. For eg. Training in future
technologies for consultants 16

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