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Mainland firms change mindsets on consultancy

Updated: 2007-06-06 07:13

By Hui Ching-hoo(HK Edition)

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Consultancy services are increasingly becoming important in today's business world and Oliver Wyman, a veteran consultancy firm, witnessed a change in mainland company's mindsets in this regard over the last ten years.

Oliver Wyman entered mainland market in the mid-1990s and experienced a sea change in the mainland corporate's attitude towards consultancy firms.

"Ten years ago, many domestic companies were cautious in business consultancy. Some companies just gave a snub when we were trying to approach them, but the picture is totally different today," Oliver Wyman's Director Laurence H. Alberts told China Daily.

Laurence pointed out that the companies have now begun to realize that consultancy firms could value-add them and improve their business performances.

"Earlier, we discovered that the management styles of many mainland companies were very different from other countries'. Many of them were loss-making...," he said.

"We had a client running civil engineering business in Fujian which was having acute financial difficulties. With the adoption of our business models, the company's operational cost sharply slashed and the book shortly turned to black," Laurence said.

In recent years, Oliver Wyman has developed its brand gradually and built up domestic network. "Our clients used to be solely foreign firms in the inception. Mainland enterprises now makes up about 80 percent of the overall customers," he said.

"The transformation marks the success of the company in penetrating the market, but we do not rush to weight up the proportion since multinational firms are still our core customers."

Laurence said the company has strength in logistics and energy sectors and has a variety of clients.

"Our staff have different professional backgrounds, but from time to time we shift them to new sectors. Our banking consultants might be shifted to a logistic project, for example."

"The purpose is to apply some successful management models into other areas. The approach has proved to be workable so far."

In view of the huge demand, Laurence said the company considers tripling the mainland workforce in three years. Currently it has 60 workers.

Apart from helping mainland companies to enhance domestic businesses, Laurence said, Oliver Wyman also uses its global networks to help them develop their overseas businesses.

Oliver Wyman currently has 40 offices around the world with 2500 staff. "Our overseas colleagues will carry out preparatory works including accessing potential risks before our clients make their foray."

(HK Edition 06/06/2007 page6)

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