Decoding Accenture

Accenture is one of the biggest technological consulting and outsourcing company in the world. Here we try to decode Accenture based on the concepts learned in POM class. A little bit about Accenture is also added to keep the blog interesting.

Origin, History and Milestones

Accenture originated as the business and technology consulting division of accounting firm Arthur Andersen. The division's origins are in a 1953 feasibility study for General Electric. GE asked Arthur Andersen to automate payroll processing and manufacturing at GE's Appliance Park facility near Louisville.

Through the 1990s, there was increasing tension between Andersen Consulting and Arthur Andersen. Andersen Consulting was upset that it was paying Arthur Andersen up to 15% of its profits each year (a condition of the 1989 split was that the more profitable unit – AA or AC – paid the other this sum), while at the same time Arthur Andersen was competing with Andersen Consulting through its own newly established business consulting service line called Arthur Andersen Business Consulting. In August 2000, as a result of the conclusion of arbitration with the International Chamber of Commerce, Andersen Consulting broke all contractual ties with AWSC and Arthur Andersen. As part of the arbitration settlement, Andersen Consulting paid the sum held in escrow (then $1.2 billion) to Arthur Andersen, and was required to change its name, resulting in the entity being renamed Accenture.

On January 1, 2001 Andersen Consulting adopted its current name, "Accenture". The word "Accenture" is supposedly derived from "Accent on the future". Although a marketing consultancy was tasked with finding a new name for the company, the name "Accenture" was submitted by Kim Petersen, a Danish employee from the company's Oslo, Norway office, as a result of an internal competition. Accenture felt that the name should represent its will to be a global consulting leader and high performer, and also intended that the name should not be offensive in any country in which Accenture operates.

On July 19, 2001, Accenture offered initial public offering (IPO) at the price of $14.50 per share in New York Stock Exchange (NYSE); Goldman Sachs and Morgan Stanley served as its lead underwriters. Accenture stock closed the day at $15.17, with the day's high at $15.25. On the first day of the IPO, Accenture raised nearly $1.7 billion.

Core Values

Services

Accenture Organization Structure

Accenture’s organization has evolved into a complicated matrix structure. This organizational method is common in the consulting world and has the following characteristics: each worker is assigned to two bosses in two different hierarchies. The first hierarchy is the executive aspect and is there to get projects completed using the resources that the company has. The second kind of hierarchy in the matrix structure is the functional aspect and is to assure that every person in the organization is well-trained in an industry and is also measured by a boss who is the top-expert in the same field. At Accenture this functional aspect is also a matrix and is made up of five industry-based operating groups and three capability groups. The five operating groups are: Communications & HighTech, Financial Services, Health and Public Service, Products, and Resources each with their own subgroups. The three capability groups are Business Consulting, Technology &Outsourcing, and Business Process Outsourcing. This matrix of operating groups (with their subgroups) and the capability groups can be seen in Figure above.

Accenture Career Path

Organization Culture in Accenture

Accenture has a high performance culture. The corporate culture is rather unique, because they often hire college graduates who are sharp and then train them to specialize in a demanding skill. One of Accenture’s assets is having the “Best People”. Most employees are very active within in the firm; it’s highly encouraged to participate in special interest groups, and recruiting within the firm. Being a global firm, the diversity of its employees is tremendous. There is an expert in almost everything within the firm and there are resources within the firm to locate these experts.

Accenture can be a very demanding place to work. The employees are usually categorized as “work hard, play hard”. Performing for the client is always demanding, especially when there are tight deadlines. It is rare to see a consultant put in 8 hours of work and call it a day; their day will go home with them. But at the same time the firm prides itself in having a good work/life balance for its employees. Accenture is a company that has very high standards and they require dedication and self-discipline on the part of employees who have the commitment and initiative to perform. 

Accenture works hard to achieve and maintain a diverse workforce. Company leadership supports and works hard to bring diversity among employees. Diversity plays an important part in its culture. The firm offers internships, jobs, and scholarships regardless of nationality and other background. Accenture also provides its employees with workshops and training programs such as Valuing Diversity and Men and Women as Colleagues. They have many programs for women and minorities. Accenture's reasons for diversity are sound: “We want to continue bringing in the best and the brightest, and retain them, so we want to make sure that if minorities come in, they see people like them in the higher ranks. And we serve clients, so we want to show our clients a diverse team.” Accenture also tries to achieve diversity within its network of affiliates and alliances.

Suggestions and Observations

Accenture is the Market Leader in Enterprise segment. But they are dehind players like IBM, Capgemini etc in Middle size and Small size segment. They will need to focus on this segment as well.

Slow down will affect both consulting and outsourcing adversely. Accenture Will need to offer more value to stay ahead in the game.

Will need to focus on emerging markets especially Asia – Pacific. Present pie: Americas:44%, EMEA:42%, Asia-Pacific:14%

Conclusion

Accenture is one of the biggest companies in the world with a strong presence in technology consulting and outsourcing. They are known for their high performance both in delivery and company culture. It is a dream company for many graduates and I hope some idea about the company has been shared through this blog

References

• http://www.accenture.com/us-en/Pages/index.aspx
• http://en.wikipedia.org/wiki/Accenture 
• WetFeet Insider Guide to Accenture
• A Look at the Future of Consulting - IS578 Final Paper Submitted by Armand Abaya Shakir, Akbari Mariamma, Kallanchira March 14, 2006.
• www.theofficialboard.com/org-chart/accenture

P.S. Inspite of the meticulous :) research, certain errors may have cropped up in this blog. Please bear with the same. Please point out such errors, if any, by means of comments and I shall make the changes after verifying.