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ManagementConsultingServicesSICCode:8742-ManagementConsultingServicesNAICSCode:541611-AdministrativeManagementandGeneralManagementConsultingServicesManagementconsultantsprovideadministrative,strategic,andtechnicaladviceandtrainingtoorganizationsinthepublicandprivatesectors.Examplesoftheseservicesincludefinancialplanning,organizationalplanning,marketingadvice,informationtechnologyconsulting,humanresourceplanning,andlogisticsadvice.Certainindustryfirmsalsoprovidemanagementaccountingandauditingservices;seealsoAccounting,Auditing,andBookkeepingServicesforadiscussionoftheseactivities.Othersspecializeinvariousformsofinformationtechnologyplanningandsystemsmanagement,whichisdiscussedingreaterdetailundertheheadingInformationTechnologyServices.BackgroundandDevelopmentTheoriginsoftheindustrycanbetracedbacktotimeandmotionstudiesperformedintheUnitedStatesinthe1880s.AroundthattimeFrankandLillianGilbrethimprovedmethodsforlayingbricksbyeliminatingunnecessarystepsormotionsinthebricklayingprocess.FrankW.TaylorsimilarlyincreasedproductivityintheU.S.steelindustrybyidentifyingandtimingindividualelementsinvolvedinvariousprocessesandthenpinpointingsourcesofinefficiency.In1881thefirstmanagementconsultingfirmwasestablishedinCambridge,Massachusetts,byArthurD.Little.Thefirm,bearingthesamenameasthefounder,quicklyestablisheditselfasaviablebusinessandmaintainedaleadershippositioninthemanagementconsultingindustryforover100years.ThatsameyearsawtheestablishmentofthefirstU.S.collegiatebusinessschool,theWhartonSchool,alsolocatedinCambridge,Massachusetts.Nearlytwodecadeslater,in1900,thefirstgraduateschoolofbusinessappeared,DartmouthAmosTuckSchool,followedbytheHarvardBusinessSchoolin1908.ThefirstEuropeaninstitute,InstituteEuropeand'Administration(INSEAD),appearedinFontainbleau,France,in1959.Businessschoolssuppliedbothqualifiedconsultantsandbusinessresearchtothemanagementconsultingfield.Duringthefirsthalfofthetwentiethcentury,acontingentofsmallconsultingfirmsandenterprisingindividualsbegantoadvisebusinessesintheUnitedStatesandEurope,primarilyonmattersofindustrialproductivity.Theseearlyconsultantsdevelopednewmethodsforsavingtimeandotherresourcesandappliedthemuniversallyacrossbusinessesandindustries.Someofthebetterknownfirmsthatappearedduringthisperiodinclude:U.S.firmBooz,AllenandHamilton(1914);BelgianfirmBuckConsultants(1917);ItalianfirmOrgaSRL(1925);U.S.firmMcKinseyandCompany(1926);SwissfirmGherziManagementConsultants(1929);DutchfirmsVandeBuntManagementConsultants(1933)andB.W.Berenschot(1938);BritishfirmPAConsulting(1943);andFrenchfirmBossard(1956).The1960sbroughtanumberofsignificanteventsthatacceleratedandinfluencedthedevelopmentofthemanagementconsultingindustry.U.S.accountingfirmsbegandiversifyingintomanagementconsultingaroundthistime.Within10yearsthesefirmscapturedsignificantsharesoftheU.S.managementconsultingmarketandbegantoexpandintointernationalmarkets.Towardtheendofthedecadelargeconsultingfirmsalsobegantodiversifyservicelinesandexpandedintointernationalmarkets.Forthemostpart,globalexpansioninvolvedestablishinghighlyautonomousforeignofficesstaffedbylocalconsultantswhounderstoodlocalbusinessenvironments.In1963BruceHendersonfoundedtheBostonConsultingGroup(BCG)inCambridge,Massachusetts.Thefirmoperatedasthefirstpurestrategyconsultingfirmanddevelopedseveralnewmanagementtoolsincludingthegrowthsharematrixandtheexperiencecurve.Thetoolswereusedinstrategicplanningtoassessacompany'scompetitivepositionoritsindividualbusinessunits.BCG'ssuccesshadanumberoflong-termramificationsfortheindustry.Itcatalyzedthedevelopmentofalongstringofstrategyboutiques,manyofwhichwerefoundedbyformerBCGconsultants.Italsodemonstratedhownewmanagementtheoriesandbusinessmethodologiescouldearnafirmcompetitiveadvantage.Finally,itsaggressiverecruitingofMBAsdroveupsalariesforentry-levelmanagementconsultants.The1980swereaperiodoftremendousgrowth,expansion,turbulence,andchange.ThousandsofbusinessprofessionalslaidoffduringmassivedownsizingsinthemajorU.S.industriesjoinedthegrowingranksofconsultants.U.S.consultingindustryrevenuesdoubledbetween1980and1985,anddoubledagainwithintwotothreeyears.MeanwhiletheEuropeanmarketwasgrowingatarateof50percent,fueledbydemandforinformationtechnologyconsultingandassistancewithprivatizationefforts.Newmarketsbegantoopenuparoundtheworld;smalllocalfirmsandindividualconsultantsbegantospringupinthesenewmarkets.WithU.S.andEuropeanmarketsshowingearlysignsofmaturity,largeconsultingfirmsrushedtoestablishanearlyfootholdinthepromisingnewmarkets.Asaresulttheglobalmarketbecamelargerandmoreintegrated.EasternEuropeandAsiawerethefastest-growingnewmarketsinthe1990s.LargeJapanesecorporationsandAsianorganizationsemergedasmajornewclients,alongwithworldorganizationsandgovernmentsineasternandcentralEurope.ThebreakupoftheSovietUnionledtoincreaseddemandforpoliticalriskstudies,industrialinfrastructureanalyses,legalsystemassessments,andinvestment/marketanalysisinformerSovietnations.OngoingdevelopmentofPoland,Romania,andothertransitioneconomiesineasternEuropefueledtheregion'sdemand