Shailagh Murray's Wall Street Journal article documents the revolution in PA’s fortunes, following the appointment of Jon Moynihan as CEO in 1992, and the challenges facing the firm in the late 1990s.
PA was founded in the UK by Ernest Button in 1943, initially mobilizing the factory workforce of wartime Britain. The company grew rapidly until in 1992, the firm had 50 offices in 20 countries, but no common budget or computer system. Although one of the oldest consultancies in Europe, the firm was failing to generate profit from its client work, and was £30 million in debt.
Ex-McKinsey consultant Jon Moynihan was hired to turn the situation round. His bold recovery strategy includes cutting waste, pay structure reform, clear ethics policy, and new share-ownership scheme provided the spring board to translate its acclaimed client work into profitability and growth.
Looking ahead, PA’s strength is to sell itself as something of an anti-consultancy. Its older consultant base has solid industry experience, it keeps job spans short with focused consultant teams, and draws on its key assets including the technology centre at Cambridge, UK, where the John Smith ‘widget’ was invented.
PA’s revival has won admirers throughout the professional services for its management systems, distinctive competitive edge, and award-winning technology – assets that add real value to both PA and the companies that hire it.
This article can be read in full on The Wall Street Journal website. Please follow the link at the top right of this page
