Consulting and the Internationalization of the Industry
5.3 Booz Allen Hamilton: Human Resources “Best Practices”
- Example of a Booz Allen Career -
Judith Mauel, 29, joined Booz Allen as a Senior Consultant in Spring 2001 and was promoted to Associate level after 21/2years. Her first consulting project as a fully-qualified “Diplom-Engineer specializing in Waste Man- agement” dealt with a topic which was completely new to her:
E-Procurement in a mobile telecommunications company. A team of ex- perienced colleagues helped her get to grips with the new matter. “The re- quirements necessary for the job – conceptual and analytical skills – were no problem for me as an engineer,” says Judith. “My own strong interest and enthusiasm for new challenges were further basic requirements for the steep learning curve.” Simultaneously, her affinity to engineering is not ig- nored. “After a couple of months working in different industries, I joined the “Operations Group” focusing on the manufacturing industry…
I can’t deny the fact that I’m an engineer! “ Assignments Abroad
Nearly all new consultants have previous international work experience and join Booz Allen with the expectation of working on a global level. Thanks to Booz Al- len Hamilton’s presence on 6 continents, the company is able to offer its employ- ees opportunities abroad. Providing the employee has the appropriate experience and the market situation warrants it, such assignments will be either for the dura- tion of a project or as a temporary deployment.
Compensation System
Booz Allen Hamilton’s compensation system offers above-average salaries for en- trants. These are complemented by the usual benefits such as a company car, life insurance and an additional pension fund. Consultants working at the same level receive the same basic salary – their cohort salary. The only differentiation is the performance-related cohort bonus, of which the amount is dependent upon the in- dividual’s overall business performance.
5.3 Booz Allen Hamilton: Human Resources “Best
standing results in their client work: It is they who, by means of their excellent performance, not only help to advance the team but also the entire firm.
The information culture at all levels of hierarchy as well as within project teams boosts the overall success of the firm. Booz Allen Hamilton supports this in several ways: The literal “open door policy” for instance is decisive for a positive working environment. The so-called “Home Office Days“ - days on which con- sultants spend their time working, meeting or participating in training courses at Booz Allen Hamilton offices - enhance open communication amongst the col- leagues and establish local and international networks. Furthermore, a non- bureaucratic culture supports these activities: continuous exchange of information between employees and the executive board ensures active communication just as much as the publication of team and industry-related newsletters at national and international level. Amongst other things they contain a press review and the latest news on Booz Allen Hamilton both worldwide and “on-site”. Last but not least, it is the communication between staff which greatly contributes to the high degree of cooperation within the project teams.
5.3.1 Mentoring Program
Being able to learn from as many colleagues as possible is an important element of an individual’s career development. Booz Allen Hamilton has established an in- tensive mentoring program, whereby one junior and one senior mentor are nomi- nated to support the professional development. Senior mentors guide their general career development and junior mentors serve as contact points in day-to-day working life through coaching and counseling.
5.3.2 Sponsorship Program
After 24 months of excellent performance, interested consultants can apply for sponsorship from the firm to complete their doctorate or participate in an MBA program. This is essentially an offer open to all young consultants who are highly qualified and have the potential to build a long-term career at the firm. The MBA sponsorship supports one or two year programs. During this period, Booz Allen Hamilton covers all tuition fees, provides a laptop and e-mail access, as well as the utilization of in-house resources. Upon completion of the course, reintegration into the firm is assured. Currently, 46% of all Booz Allen consultants in Germany, Austria and Switzerland hold a doctorate degree and 25% have an MBA.
Structured Performance Evaluation
Consultants must constantly generate excellent output for their clients. Careers depend on each individual’s continuous performance development. A consultant’s past performance and success and his or her potential for development and further
growth are continually measured and evaluated through the systematic appraisal process. Performance evaluations at Booz Allen Hamilton support the career de- velopment of each employee – from Secretary to Consultant to Partner. This kind of „monitoring“ has been conducted globally for over 40 years. Once a year, per- sonal evaluation assessments are conducted via a „360 degree process“ along a set of standardized competency criteria. The process starts with the employee writing a so-called „self assessment“ and discussing it with his or her assigned appraiser.
Based on this initial input, a senior member of staff who has not worked directly with the appraisee then conducts structured interviews with peers, supervisors and juniors, with whom the appraisee has worked during the appraisal period. Three main categories covering ten core competencies are assessed:
Delivering Value to Clients x Using core consulting craft skills;
x demonstrating thought leadership;
x structuring and managing work;
x effecting lasting change.
Developing People and Relationships x Managing and leading work teams;
x working effectively with others;
x cultivating career growth.
Building the Institution
x Developing intellectual capital;
x generating new business with both existing and new clients;
x contributing to firm development and initiating good will for the firm.
These competencies obviously vary from level to level. They demonstrate how staff should strengthen and broaden their portfolio of skills as they advance within the firm – a Principal should possess the competencies defined for a more junior member of staff and develop those specified for his or her current level. Promotion to the next level will only occur once the employee has demonstrated most of the competencies required for the next level. For example, an Associate must success- fully manage teams and projects before he or she will be promoted to Senior As- sociate level, i.e. to Project Manager level.
The appraisal is then presented to an Appraisal Committee - made up of Part- ners and Principals – which reviews each appraisal for completeness and consis- tency. Special emphasis is given to development actions and steps which will help staff to address their development needs and realize their full potential. All deci-
sions relating to the future career of staff are taken by the Appraisal Committee.
The appraisal process also applies to Partners.
The process is designed to give each Booz Allen employee a sense of his or her own potential, direction and ownership in terms of the advancement of their ca- reers. The entire process is based on the understanding that a sense of recognition and purpose and opportunities for further growth, is the best motivation a firm can offer to ambitious staff.
5.3.3 Advancement of “Diverse Minds“
Being able to support executives across the globe in both industry and public insti- tutions in solving complex issues requires talent, perspective and an open mind.
Thus, diversity among its employees is an essential element of Booz Allen Hamil- ton. Specific recruiting concepts meet this concern. Cultural diversity among em- ployees is promoted actively: regular communications of coordinated measures concerning the issue of diversity as well as mandatory training to raise awareness are standard. Furthermore an annual “Diversity Award“, has been established firm-wide, honoring particular commitment of employees in this field.
Great attention is given to the Advancement of Women: it is Booz Allen Hamil- ton’s ambition to attain a well-balanced proportion of male and female consult- ants, for example by way of attracting young academics. In 2002, Booz Allen Hamilton thus established a scholarship program for highly gifted female students in cooperation with the German National Academic Foundation (Studienstiftung des deutschen Volkes). In this context, both institutions fund a year abroad in a European country for scholarship holders; additionally, goal-oriented career ad- vice, internships and advice given by selected female mentors at Booz Allen Ham- ilton are offered to them. Booz Allen Hamilton has been honored several times for its commitment to diversity. “Working Mother“ magazine for instance, has repeat- edly placed the firm in the “Top 10” of “100 Best Companies for Working Moth- ers” in the United States.
5.3.4 Work-life Balance
Booz Allen Hamilton makes high demands on its employees. An open and flexible attitude towards the client’s expectations at all times counts among these. Never- theless, the consultancy endeavors to offer its employees flexible solutions, which in turn enable them to strike a successful balance between their working and their private lives.
The firm offers a variety of flexible work arrangements which support the work-life balance concept. One of these is a leave of absence or part-time work, where 60% can mean working three days a week, taking additional holidays dur-
ing the school holidays or maybe at the end of a project. Nevertheless, working fewer hours during a regular working day can prove to be quite difficult in an en- vironment in which the “nine-to-five” rule does not exist.
Furthermore, the firm also offers employees the opportunity to give something back to the community through firm-sponsored volunteer activities and pro bono assignments at non-government, non-profit organizations. The pro-bono projects often have an additional benefit of enabling employees to accomplish personal ob- jectives through their professional activities.