IBM Consulting

IBM BusinessConsulting Services

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IBMBusiness ConsultingServicesISBN: 1-58207-330-9

The IBM Business ConsultingServices Cheat Sheet 1

The FirmOverview 4A Quick History Lesson 5Strategy: Integration & Services 7The Bottom Line 9Industry Position 10Organization of the Firm 11

On the JobResearch Associate 14Consultant 16

The WorkplaceLifestyle & Hours 20Culture 20Workplace Diversity 21Compensation 21Travel 22Vacations, Benefits & Perks 22Training 23Career Path 23Insider Scoop & Watch Outs! 24

Getting HiredThe Recruiting Process 28Interviewing Tips 29Grilling Your Interviewer 30

For Your ReferenceRecommended Reading 32Other Resources 32The Numbers 33Key People & Recruiting Contacts 33

Quick TOC

C h e a t S h e e t 1

T h e I n d u s t r y 3

O n t h e J o b 1 3

T h e Wo r k p l a c e 1 9

G e t t i n g H i r e d 2 7

Fo r Yo u r R e f e r e n c e 3 1

Table of Contents

Copyright 2002 WetFeet, Inc.™

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✃Copyright 2002 WetFeet, Inc.™

The IBM BusinessConsulting Services

Cheat Sheet

HeadquartersIBM Business Consulting ServicesNew Orchard Road Armonk, NY 10504Phone: 914-499-1900Fax: 770-644-5530www-1.ibm.com/services/fullbusiness.html

Primary CompetitorsAccenture, Cap Gemini Ernst & Young, CSC, McKinsey & Co., Booz AllenHamilton, Deloitte Consulting (Soon to be Braxton), The Boston ConsultingGroup, KPMG Consulting.

Key Differentiating Factors> Industry-leading size and technical capability> Deep experience in major industries—particularly in health care,

insurance, and telecommunications—across the globe> Access to world-class technology research

In the Recruiter’s Words> “We look for people who are quick on their feet, not necessarily being

right all the time, but exhibiting a creative thought process.”> “Being a team player is key. We work on small teams of three to eight. Be

confident enough to speak your mind, but thoughtful enough to put the group first.”

> “Be sure you understand the consultant lifestyle—that it’s long hours, that it can be a grind.”

> “Be the type who can roll with it; laugh at surprises rather than cry. Because this occupation is hectic and ever-changing—you never know what’s going to happen.”

In the Interview> “Don’t be shy. You don’t have a lot of time, so talk. The recruiter doesn’t

want to be pulling teeth. You need to volunteer information about your-self without waiting for the recruiter to ask questions.”

> “Talk about your successes. How you turned lemon into lemonade. How you won over the grumpy boss. How you stuck your neck out at the right time. How you made everyone better with your presence, your ideas.”

> “Be aware of current events. Show that you’ve read the papers, been on the IBM website, watched Louis Rukeyser on CNBC’s “Wall Street.”

> “Know the history of IBM. About Thomas Watson, Senior and Junior; about the PC; the early ’90s troubles and how Louis Gerstner turned it around …”

> “Be ready for cases—they are a big part of our interview process. Maybe study up on some famous ones so that you can reference similar concepts and fundamentals. The recruiters want to see how your mind works.”

> “Don’t try to play a ‘role.’ We want nice, smart people, and you can’t fake either one. At IBM, we’re looking for a commitment, a long-term relation-ship.”

What Insiders Say> “It’s a great company to work for, but there is a protocol that comes with

working at a big organization.” > “IBM is always voted one of the best places to work, and they aren’t

stuffing the ballots. It’s true.”> “Bigness has its benefits. You do have the ability to change careers—and

the opportunity to live all over the world.”> “Consulting is rough. Frankly, at times, I don’t know why anybody would

want to do this for a living. On the other hand, sometimes I can’t imaginehaving a normal job.”

The Career LadderUndergraduates enter as research associates. MBAs enter as consultants.

Personnel Highlights, Worldwide—IBM Business Consulting Services

Total number of professionals/employees, 2001: 60,000

Estimated number of new undergraduate hires, 2002: n/a

Estimated number of new MBA hires, 2002: n/a

Estimated number of new summer hires, 2002: n/a

Estimated Compensation Figures, 2002-03

Undergraduate starting salary: $45,000 to 60,000

Signing bonus: Variable

Relocation bonus: Depends on need

MBA starting salary: $90,000 to $120,000

Signing bonus: Variable

Relocation bonus: Depends on need

Source: WetFeet research

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The Industry“Consulting would be hard, challenging work no matter what company you went to work for.

But all the firepower we have here gives me sort of an undefinable—maybe psychological—edge.”

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OverviewFor some, the three letters “IBM” may conjure up visions of giant mainframe

computers filling up entire floors of office buildings, but the reality is far

different today. In the 1990s, under the gun competitively and thought to be in

real danger of disintegrating by industry pundits, Big Blue made a fast-paced

transformation to a services-led company under then-CEO and current

Chairman of the Board Louis V. Gerstner, Jr. How fast-paced? In 1991, IBM’s non-

maintenance services did less than $6 billion in business, about 9 percent of

IBM’s total revenues of $64.8 billion. Last year, IBM’s Global Services division did

$35 billion, about 40 percent of IBM’s revenues of $85.9 billion. Tellingly, it was

the first time that IBM’s service-derived revenue exceeded IBM’s hardware sales

revenue.

What this means is that, more than anything else, IBM today is a service company. And one of its biggest services is consulting.

Remember the date October 2, 2002. That’s when IBM’s metamorphosis to aservice company reached a new milestone, when a huge, new business groupunder the Global Services umbrella was unveiled: IBM Business ConsultingServices (BCS). BCS is so new that the paint’s barely dried on the lettering. Atthe moment, the old parts from which it was assembled are being re-jiggered;titles, functions, and hiring needs are being sorted out. But this much we knowfor sure: BCS combines PricewaterhouseCoopers Consulting—a Big Five consultancy that IBM acquired for $3.5 billion in the summer of 2002—withIBM’s existing Business Innovation Services unit. The result: the world’s largestconsulting and services organization, with estimated revenues of around $16.3billion (according to Consultants News) and more than 60,000 professionals in50-plus countries. To give you an idea of how big that is, BCS dwarfs the number-two consulting firm, Accenture, by $6 billion and is three to seventimes the size of the rest of the top ten consultancies. It accounts for morethan one-sixth of IBM’s total revenues.

BCS’s goal is to get more involved in a client’s business than ever before byoffering a unique “end-to-end” capability—an all-inclusive one-stop shop thatcan help clients capitalize on information technology to improve business performance, from strategic thinking to implementation, with accountabilityfor results. BCS offers general business consulting as well as information tech-nology consulting. In the former, it advises customers on how to become more

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competitive; better support their own customers; be more efficient; andbecome an e-business. In the latter, it offers a wide range of evaluative, advisory, and implementation services geared toward helping customers maximize the return on their technology investment. Services include info-rmation technology strategy, business recovery, networking, and systems management. In short, BCS tries to develop solutions for a company, thenbuild and deploy those solutions—even if this involves adapting othercompanies’ computer equipment.

That last statement would have shocked the founders of a company that strictlymade business equipment for nine decades before a crisis made it re-think itsbusiness. And it illustrates how important IBM Global Services and its newBusiness Consulting Services group is and will be to IBM’s future from thispoint forward.

A Quick History Lesson

The fact that Business Consulting Services has become such a crucial part ofIBM would have astounded the company’s hardware-oriented founding fathers.From the beginning, IBM was all machines, all the time. A 1911 merger created IBM’s New York City-based predecessor company, C-T-R (Computing-Tabulating-Recording Company), which made commercial scales, industrialtime recorders, meat and cheese slicers, tabulators, and punched cards.Starting with legendary president, Thomas J. Watson, Sr., in 1914, the companybegan to focus on large, custom-built tabulating machines and dumped smalloffice products. Watson also developed a distinct company culture that focusedon customer service; well-groomed, dark-suited salesmen; and a variety of team-building exercises, including employee sports teams, family outings, and acompany band. His slogan, “THINK,” became a mantra for C-T-R’s employees.Revenues zoomed to $9 million in 1918.

In 1924, after launching the Electric Accounting Machine and the high-speedCarroll Rotary Press, C-T-R changed its name to International BusinessMachines Corporation. During the Great Depression, IBM was the rare company that provided group life insurance, survivor benefits, and paid vacations, and actually grew. A lot of that was due to what was called “thebiggest accounting operation of all time”—the Social Security Act of 1935,which brought the company a landmark government contract to maintainemployment records for 26 million people. Other U.S. government depart-ments quickly followed.


IBM’s first steps to computing came during World War II, when it made bomb-sights, rifles, and engine parts as well as the 50-foot-long, eight-foot-high, five-ton Automatic Sequence Controlled Calculator, also called the Mark I. It wasthe first machine to execute long computations automatically. It took less thana second to solve an addition problem, but about six seconds for multiplicationand twice as long for division—far slower than any pocket calculator today. Inthe ’50s, things sped up fast as vacuum tubes and transistors replaced electro-mechanical switches and Thomas J. Watson, Jr., took over as CEO. Eisenhowerwas still president when the IBM 7090 transistorized mainframe computercame on line; it could perform 229,000 calculations per second.

Other major innovations followed: In 1964, System/360, the first large “family”of computers to use interchangeable software and peripheral equipment cameinto being—a bold departure from the monolithic, one-size-fits-all mainframe.In 1973, the price-reading supermarket checkout station and an early form oftoday’s automatic teller machines were introduced.

In 1981, a product was developed that would ultimately lead to a new era incomputing, rock IBM down to its foundations, spur IBM’s metaporphosis to aservices-oriented company, and ultimately lead to the development of IBMBusiness Consulting Services. It was a desktop machine with off-the-shelf parts,16 kilobytes of user memory (expandable to 256 kilobytes), one or two floppydisks, an optional color monitor, a processor chip that came from Intel, and anoperating system called DOS (Disk Operating System) from a 32-person com-pany called Microsoft. It was the phenomenally popular IBM PersonalComputer. The PC.

Ironically, as the decade progressed and PCs from many companies were coupled with servers that linked them with larger computers in the back-ground, IBM found itself in deep trouble. Individuals and individual depart-ments now made their own computer purchases; sales of the all-in-one computer systems that IBM sold plummeted. Piece-part technologies tookprecedence over integrated solutions. By 1993, the company’s annual net lossesreached a record $8.1 billion. IBM considered splitting its divisions into separate independent businesses. Articles in The Wall Street Journal and businessmagazines began to suggest the unimaginable: “Break up IBM.”

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Strategy:Integration and Services

Louis V. Gerstner, Jr. arrived as IBM’s chairman and CEO on April 1, 1993—thefirst IBM leader not from IBM. He’d been chairman and CEO of RJR Nabisco,an American Express executive, and a McKinsey management consultant.Immediately, he put the kibosh on the push to split up IBM. Gerstner figuredthat would have destroyed a unique IBM advantage: its expertise in solutions,services, products, and technologies. Customers sorely needed that expertiseall in one package, he thought, not in pieces.

“I was surprised to learn that the computer industry had been able to get awaywith inventing new things and just ‘throwing them over the wall,’ leaving customers to figure out how to integrate and apply them,” Gerstner writes inthe 2001 IBM Annual Report. “Businesses desperately needed someone to helpthem make sense of this chaos.” Gerstner saw the resultant disarray in informa-tion technology—companies’ willy-nilly, uncoordinated purchases of the latesttechnological breakthroughs—as a cry for help, for “technology integrators” tosave the day. It was a cry he thought that IBM alone was qualified to answer: “Itwas obvious that no other company had the technical expertise to win productbattles against competitors and the business knowledge to become a trustedpartner for its customers.”

In 1995, Gerstner articulated IBM’s new vision: that network computing andintegrated solutions would drive the next phase of industry growth. “As IT(information technology) moves out of the back office and into the executivesuite, what matters most is the ability to integrate technology into the lifebloodof the company,” he said. To that end, that year IBM acquired LotusDevelopment Corp. and its Notes software program in a hostile takeover. It wasthe largest software acquisition ever, and it filled the networked-computinghole in the company portfolio.

Of course, IBM had deep experience in information technology services. Butas IT became a profit center all its own in the ’90s, not just a front man sellingIBM hardware, IBM Global Services took off. Global Services, which encompassed consulting, and outsourcing, and e-business, transformation, andsystems management services, grew at 20-plus percent a year, making it IBM’sfastest-growing segment and the company’s largest revenue source by 2001.

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integration plan that the now-retired Gerstner had set in motion: the acquisition of PricewaterhouseCoopers (PwC) Consulting and the subsequentcreation of the new $16.5 billion behemoth, IBM Business Consulting Services(BCS).

The PwC DealMost onlookers called the $3.5 billion PwC purchase a shrewd move by IBM, abare-bottom, recessionary bargain, and a perfect strategic fit bound to pay off.“Cheap as Chips,” read one headline, noting that Hewlett-Packard almost paid$18 billion for PwC two years earlier. “IBM Corp reasserted its position at thetop of the IT services,” according to another headline. “Quite a deal,” numerous analysts were saying. PwC was the 30,000-strong, $5.5 billion-in-revenues (fiscal year ending in June 2002) consulting arm of the huge auditingfirm of the same name. It had been on the fence for awhile as its parent triedto figure out how to divest it—outright sale or IPO—following the rash of post-millenium accounting scandals.

Why the generally positive reviews? And why the belief among many that themove will trigger a wave of similar consolidation among IT services and consulting firms? Answer: The deal worries IBM's competitors becauseGerstner’s vision has become reality. Services customers are veering towardlarger, more established companies that offer a wide range of services andfocus on business solutions rather than pure technology.

Inside Consulting’s Tom Rodenhauser writes that IBM sees PwC as filling a “generalist void that will allow it to work its way up the client’s value chain.” ITservices reputations have suffered from, as he puts it, “the plumber syndrome,”while auditing-based consultants are seen as “architects.” Upshot: One needsthe other as they stretch to become one-stop shops—single-source partnerswith services and industry expertise up the wazoo.

Ginni Rometty, the global head of the new IBM Business Consulting Services,pretty much says the same thing. “Opportunities await any company that coulddeliver the full scope of business and technology services,” she says in an IBMinternal document. Taking on the full scope of business and technology is nowpossible through the blending of IBM’s traditional strength in technology, withPwC’s in strategy and business process consulting.

Rometty notes that each side brings specific expertise to the table: PwCConsulting’s is business process, e-business integration, supply chain, and CRM(customer relationship management). While IBM has a lower level of thesecapabilities, it brings “a treasure chest of new, value-enhancing capabilities”—innovations from the world’s largest industrial research group, with eight labs,3,000-plus employees worldwide, and five Nobel prizes, as well as the resources

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of IBM Global Finance and the strength of IBM’s software and hardwarebrands.

Will the marriage work? Despite the differences in capabilities, and the clamorof some naysayers, Rometty stresses that the couple speak the same language:“Over the last decade, IBM had established a respected consulting organizationof our own, while PwC Consulting was rapidly strengthening its technical skills,particularly in the areas of process integration and application development.”Both also bring longstanding client relationships at the senior executive level.Among their top accounts, more than 40 percent have been customers for tenyears or more.

The Bottom Line

BCS is the fusion of two organizations with complementary skills, similar cultures, and a common vision. BCS has deep experience in major industriesacross the globe, unparalleled research capabilities, and onsite, outsourced, oron-demand delivery capabilities. “By joining forces,” says Rometty, “we havecreated solid, market-leading competencies at every point in the services valuechain—making for a single, efficient, accountable, trusted partner to manage aclient’s strategic initiatives.”


Industry Position

IBM Business Consulting Services (BCS) is the world’s largest provider of business consultants and services experts, providing a wide range of generalmanagement and information technology consulting services. Specializing inhelping customers leverage technology to improve performance, it competeswith other large consulting firms. As you might expect, a consulting firm asimmense as IBM BCS has deep experience in major industries across the globe,including aerospace and defense, automotive, banking, chemicals and petroleum, consumer packaged goods, education, electronics, energy and utilities, financial markets, government, health care, insurance, life sciences,media and entertainment, retail, telecommunications, travel and transporta-tion, and wholesale. Of those, BCS has seen strong activity particularly inhealth care, insurance, and telecommunications.

Health care, which includes providers, pharmaceuticals, and life sciences, isexperiencing rapid growth with the aging population and concomitant pressure to upgrade its IT systems to reduce errors, speed drug approvals,enhance customer experiences and improve overall business performance.Insurance industry firms use BCS services to increase customer retention,reduce costs, and develop new distribution strategies. Telecommunicationscompanies need a game plan for leveraging wireless and broadband to improveservice to customers.

Consultants News estimates that BCS—in combination with PwC Consulting figures—had a global consulting revenue of $16,300 million for fiscal year 2001and enjoyed a 3 percent growth in global consulting. U.S. consulting revenuefor the same period was $5,500 million with a 4 percent decline in growth. As acomparison, IBM, Accenture, and Cap Gemini Ernst & Young came in one,two, and three in Consultants News’ June 2002 ranking of the “50 LargestManagement Consulting Firms in the World,” with global consulting revenuesof $10,800 million, $9,460 million, and $5,875 million, respectively, for fiscalyear 2001. Against these numbers, it’s clear that the merging of PwC and IBMmakes for a giant among giants.

Note: Revenue information used for the CN ranking was based on estimates; most companies that were ranked are pri-vate and do not release revenue information.

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Organization of the Firm

IBM Business Consulting Group is organized into 13 business units in threeworldwide regions. Reporting to BCS general manager Ginni Rometty areMichael S. Collins, who handles the Americas, David V. Dockray, in charge ofEMEA (Europe, Middle East, and Africa), and Hideki Kurashige, heading upthe Asia-Pacific region. The 13 units include the following:

1. Application Management Services for Enterprise ApplicationsHelps companies optimize their ERP investments by providing a flexible set ofservices focused on delivering ongoing management and enhancement of theapplications in their existing ERP portfolios.

2. Business Intelligence ServicesHelps companies understand their customers by capitalizing on the massiveamounts of information accumulated from disparate systems—transformingthem into a nimble, customer-focused, information-driven e-business.

3. Buy and Supply SolutionsProvides solutions in supply chain, e-procurement, product lifecycle manage-ment, and enterprise asset management, which center around the “valuechain” concept. This entails the ongoing, dynamic interactions between theparticipants of the entire supply chain—encompassing new product develop-ment, orders, purchase and transformation of materials, and final shipment tothe customer.

4. Customer Relationship Management Services (CRM)Helps companies retain loyal customers through consulting, implementation,and integration for packaged solutions including CRM operations assessment;operational process, design, and technology linkage; product evaluation andselection; infrastructure development; and integration with ERP and legacyapplications; business intelligence services; Web-selling consulting and packageimplementation; and interactive branding and design.

5. Dynamic WorkplacesHelps companies decrease costs, boost efficiencies, and fundamentally alter theway people work via systems integration, content management, dynamic work-place strategy, and rapid workplace implementation (including employee self-service tools like intelligent directory, distance learning, and enterprise-widebrainstorming technology).


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Addresses fundamental issues associated with planning, selecting, implement-ing, and extending ERP solutions.

7. Portals, Knowledge, and Content Management ServicesHelps companies access and leverage huge e-business information streams tofuel innovation, responsiveness, and efficiency. IBM provides workplace, knowledge, and content management services for consultative and implemen-tation services around four major areas: dynamic workplaces, portals, contentmanagement, and knowledge management.

8. Procurement Services Supports client’s strategic sourcing, business process transformation, e-procure-ment technology strategy, and a menu of custom acquisition and supplier management services to drive efficiencies, achieve savings, and enable faster“time-to-value” in the marketplace. Includes e-procurement strategy consulting,strategic sourcing, and package implementation for software providers such asAriba, CommerceOne, and Rightworks.

9. Product Lifecycle Management Services (PLM)Provides applications and services that let companies design, build, and main-tain products while reducing cost, increasing quality, and shortening develop-ment cycles. Includes end-to-end CATIA, ENOVIA, and SMARTEAM application consulting and implementation capabilities, product developmentbusiness process consulting, and relationships with MatrixOne and SAP.

10. Security and Privacy ServicesHelps clients address IT and e-business security and privacy requirements torun a secure trusted environment for the collection and use of customer andemployee personal information.

11. Strategy and Change Consulting This wholly purchased consultancy aligns business goals and direction withtechnology decisions, helping companies solve internal strategic, organization-al, operational, and IT issues within their companies.

12. Supply Chain Management Services (SCM) Uses industry and supply chain business area expertise to deliver a financialreturn through operational improvements.

13. Wireless E-Business SolutionsDevelops customized integrated wireless solutions that include the devices, soft-ware, servers, and services for company’s unique needs.

On the Job“Ask enough questions, do enough research, …

and suddenly you think you’re a genius. It’s great for your ego. Tiring as hell,

but extremely satisfying.”

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Research Associate

Research associates (RAs) are not computer geeks. They are not technical people. And while they must have an analytical bent, they usually aren’t business majors, as BCS concentrates its recruiting at schools that don’t offerundergraduate business programs. Ideally, RAs are well-rounded individualswith lots of extracurricular interests, usually with liberal-arts backgrounds ranging from economics to English. They have sharp minds, powerful curiosities, an ability to write well, and a strong sense of responsibility. All willcome in handy, because there may be occasions where the on-the-job responsibilities of RAs often don’t differ fundamentally from those of consultants. Yes, you do a lot of grunt work—after all, the first part of the titleis “research.” But you will quickly gain exposure to clients on a daily basis, endlessly contributing ideas and energy to the team.

In simple terms, RAs spend most of their time looking up things, interviewingpeople, and making reports. IBM prides itself on being a meritocracy, andexhibiting thoroughness, sharp analysis, and professionalism is a good way tomake your way up the ranks.

If you do well on your research assignments, the scope of your work increases.Higher-ups will be happy to pile on more important responsibilities if you showyou can handle it. Here are some typical duties:

> Seeking out data through client interviews, research, and observation > Conducting operational and financial analysis of data> Presenting findings to team members; persuading managers to adopt your

recommendations> Researching and preparing sales proposals> Systems analysts: designing and testing program modules

A Day in the Life of a Research Associate

9:30 Arrive at client site after two-hour drive. Day One. Was falling asleep at the wheel. But the second I go through the front door, I feel all tingly. New place, new project. It’s show time!

10:00 Check e-mail and voice mail. Head to project room to meet the team of six—a couple other RAs, consultants, a manager. Know some of them already from the office, and others from a conference call. Funnyhow they never look like what you thought. We organize, decide who’s

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going to do what, reassess, agree on a timetable. I’m on my toes—act like I’m paying attention. Heck, what am I saying? I am payingattention, writing everything down like a frantic court stenographer.

I’m afraid not to. Lots of info to process here. Like heading into the great unknown.

12:00 Still talking. Meeting’s running long, so we order lunch. Weird, working at IBM, makin’ the big bucks, and it’s McDonald’s again. But the receptionist tells us later there’s a great Indian restaurant just around the corner. No more Big Macs after this.

1:00 Check voice mail—”significant other” wants to know how long this project will take, how long I’ll be away. Never asks, “How was the work?” anymore. Just “How long?”

1:30 Our guys meet with the client point man and a coterie of his right-hand men and women. Outline the plan in detail. We have some sticking points that need to be hashed out. Takes longer than expected, but we’re finally on the same page.

2:25 We move to a bigger room that has a whiteboard. They call in the troops. A couple dozen of the rank and file roll in. I fiddle with my hair, check my collar, tuck in my shirt, and try to look bright-eyed and bushy-tailed. “Good first impression, good first impression,” I repeat in my mind. Hey, I’m still a rookie, and I look young for my age. I want tocome out of the blocks like a racehorse, and need them to respect me upfront. They introduce us IBMers to all of the client’s need-to-know personnel, who in turn introduce themselves. I note whom I need to talk to, and when it’s done, I rush over before the room empties to grab the right bodies and set up interviews.

3:30 Others go for coffee—not me. I’m on a natural high. I leave the room shooting the breeze with my first interview subject. After all, it’s a lot harder to interrupt her later, when she’s busy on the phone with her housekeeper. Plus, I want the word to get out quickly—to my bosses and to client personnel—that I’m all action, here strictly for business, squeezing every bit of productivity out of the clock.

5:00 It’s happy hour for the client’s workers, but not for me. The locals make for the exits, but I’m just getting rolling. Check e-mail, voice mail, the Internet. Research, research, research. No time to lose. A “state of the industry” report is due tomorrow at 9:00 a.m. sharp.

6:00 Talk to the team about dinner. Hey, what about Indian? I volunteer to make the food run. Ulterior motive: I need to actually see daylight at least once every 24 hours.

7:30 Wipe the curry off my chin and plunge into PowerPoint. How in the world did they do this in the old days?

10:00 My battery’s going dead. Call “significant other.” Check e-mail. Grab a shake at Mickey D’s and head home to the Holiday Inn.


Consultant

Consultants are expected to use everything in their MBA bag of tricks—peopleskills, management skills, and quantitative skills—to come up with client solutions and keep them smiling while doing it. They often have primaryresponsibility for a small project team or a small part of a larger team. Specificresponsibilities include:

> Guiding and motivating the team, encouraging contributions, and determining the appropriate analysis and course of direction

> Leading brainstorming sessions> Keeping the program on track> Interpreting the results of the team’s analysis> Preparing and delivering presentations to IBM and client management> IT practitioners: managing IT systems development through design,

programming, testing, and implementation

A Day in the Life of a Consultant

5:00 Eyes open. Immediately check e-mail and voice mail. It’s an automatic response to the alarm—like Pavlov’s dog. In this business, never know when you’ll have a change of plan.

6:00 Ride to airport. Wolf down a bagel and a grapefruit in the cab. This is why I wait till later to put on my tie. Catch 7:18 flight to the client’s headquarters.

9:30 Arrive at the client’s. Week Two. Trade pleasantries with what’s-his-name and what’s-her-name. My weakness: names. They’re paying IBM all this money, and I don’t remember … Sam and Sheila. That’s it. Those two and 20 others. Wave a “how was the weekend?” at the in-coming (other members of the IBM team). Check e-mail and voice mail.

10:00 Meet with the client. Hit him with some amazing insights I came up with over the weekend. He nods. Not sure if he thinks they’re valid.

11:00 Check messages and e-mails. Dig into a client presentation left over from Saturday. (Yes, I did some work at home on Saturday. What else isnew?)

12:30 Lunch. Client asks me out to Mexican food. On the way back, we stop at the plant to see if the idea I mentioned earlier will work. Bingo. It looks like it might fly. Client likes that I’m always thinking about how to improve his business. So what if I’m slow on names?

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2:30 Team meeting. Everyone provides updates. I present my idea and findings. Nods of approval. Yep, way more efficient that way. Boy Wonder does it again.

3:30 Check e-mail. Bang out PowerPoint presentation for the next meeting.4:45 Hour-long presentation with client brass. They like where we’re going,

but get antsy. Note to self: late meetings not a good idea. 6:00 Call my manager to report what just transpired with the client. He’ll be

in next week.7:00 Spend next hour writing up issues raised in the previous phone call.

Boss wants to see a detailed e-mail by morning. 8:30 Check e-mail and call it a day. Strange. Strange to be out this early. I

think I’ll catch a movie. Naw, forget it. Need food first. Forgot to eat again.


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The Workplace“Instead of the conformity you tend to associate with the pre-1990s IBM, the new IBM culture

actively celebrates the individual.”

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Lifestyle and Hours

Consulting is consulting is consulting, whether it’s at a big shop like IBM or asmaller one like PRTM. Living out of a suitcase. Extremely long days. Ofcourse, since it’s IBM, the stakes seem higher. Big money contracts. Relentlesschallenge, lots of pressure. Most of all, big expectations. “You might be totallyclueless at first, but people see IBM on your business card and expect you to bea genius,” says one insider. “Oddly enough, ask enough questions, do enoughresearch, stick your nose into every nook and cranny, and suddenly you thinkyou are. It’s great for your ego. Tiring as hell, but extremely satisfying. Youmake use of everything you’ve got.”

Generally, projects can last up to six months in duration, with technical pro-jects often longer. Teams of four to 12 consultants per project—often includingsome client personnel—are typical, although that can multiply fast on big jobs.IBM consultants are usually home on Thursday nights and in the office Friday.On the other hand, one insider says, some people don’t even have offices any-more. “Remote working is very big at IBM,” he says. “A cable modem and anIBM notebook are all you need.”

Culture

As you might have surmised, IBM has loosened up quite a bit in the lastdecade. “Nobody wears a suit here,” one insider says. “If the clients don’t—andmost don’t anymore—we don’t. Thank god.” They must be doing somethingright. Computerworld ranked IBM number 12 in its “100 Best Places to Work inIT” eighth annual survey (June 4, 2001); and number four in its “Top TenPlaces to Work in IT for Hot Projects” (June 25, 2001).

One veteran insider sums up those results in this way: “IBM has the feel of asmall company, with all the resources and benefits of a big one. Instead of theconformity you tend to associate with the pre-1990s IBM, the new IBM cultureactively celebrates the individual. Promotions are based solely on achieve-ment.”

Community involvement is also stressed. IBM encourages volunteerism anddonations on a vast scale. The company contributed more than $127 million in2001 to charitable programs worldwide, and employees contributed another

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$51.2 million on their own. The largesse went to more than 7,500 educationalinstitutions and non-profit organizations. As of March 2002, IBMers volunteered more than four million hours of time and expertise to a broadrange of local causes.

Workplace Diversity

To increase its focus on local or unique diversity issues back in the 1990s, IBMestablished diversity councils and eight executive-led task forces representingwomen, African Americans, Hispanics, Asians, Native Americans,Gays/Lesbians, the disabled, and men. The programs had immediate payoff,according to Ted Childs, vice president for global workforce diversity at IBM.The number of African American executives doubled in a three-year periodfrom 62 to 115. Over the past five years, the number of female executives atIBM worldwide has more than tripled from 185 to 596, with more than half ofthose working mothers. That’s one reason IBM has been named in the top tenof Working Mother magazine’s “Best Places to Work for Mothers” for ten of thelast 14 years—longer than any other company—and in the top 100 all 16 years.IBM was recognized by Catalyst (a for-women’s-advancement non-profit), for itsleadership in advancing the careers of women throughout the workforce. And,finally, the head of IBM Business Consulting Services is a woman, GinaRommety, which bodes well for future increases in diversity at BCS.

Compensation

IBM personnel are notoriously tight-lipped about salary information, reflexive-ly trained to dismiss outsider’s inquiries with “we pay very, very well.” Well, youcan probably take that to the bank. IBM’s policy is to attract and retain the bestpeople by making sure that the value of its total compensation package compares favorably with that of competitors. Given that the slumping economyhas sent salary packages and signing bonuses for new consulting hires plummeting throughout the industry, new research associates’ salaries, oncenearing $65,000, are now in the $50,000s, while starting salaries for MBAsrange from $90,000 to $120,000. Bonuses, officially called “variable pay opportunities,” are healthy—10 to 15 percent of annual earnings—with morefor extraordinary performance. Merit-based raises, keeping with IBM’s entrepreneurial model that rewards results, can jump your salary up very rapidly.


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Travel

Update all your frequent-flier programs before coming on board. Unlessyou’ve been living in a cave for a couple of decades, you’re certainly aware that“travel” and “consulting” are joined at the hip. The case of the person whotravels so much that he no longer keeps an apartment is, of course, rare—buttelling. Being on the road half the time or more is not unusual. You go towhere the client is, period, and where he is isn’t always pretty or glamorous.Weekend travel is rare (although weekend work isn’t).

Vacations, Benefits,and Perks

IBM was among the first corporations to provide group life insurance (1934),survivor benefits (1935), and paid vacations (1936). And the beat goes on inthe 2000s. Showered with a cornucopia of benefits, it’s the rare IBM employeewho does not rave about company benefits.

While annual vacation time mandated by the Board of Directors—two weeksyearly, three weeks after five years—is not generous by consulting industry standards, four “personal choice days” and 12 holidays (six national) effectivelyclose the gap. The standard pregnancy leave is six weeks. Medical, dental, andvision coverage—a wide choice of plans for self and family—begins on the firstday of employment and can include life insurance, travel insurance, and long-term care and disability.

Particularly loved by IBMers are numerous educational opportunites, includingno-charge financial planning classes, 100 percent tuition refund for pre-approved classes, and educational leaves of absence. Investment opportunitiesinclude the TDSP 401(k) (tax-deferred savings plan) in which IBM matchescontributions by 50 percent for up to 6 percent of your income (employees cancontribute up to 15 percent of their income to the plan). Employees are fullyvested in (entitled to) these company-matched funds immediately. There’s alsoan IBM stock purchase plan (15 percent discount, up to 10 percent of yourincome), an IBM Personal Pension Account (monthly pay credits equal to 5percent of pay after one year of service, vested after five years), and a LifePlanning Account, which provides up to $250 of taxable financial assistanceeach year for financial planning services, health education, and fitness expenses.

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Finally, at age 40, IBM annually credits a personal tax-free Future HealthAccount of $2,500 to help employees pay for the cost of post-career IBM healthcoverage. The fund can be used to pay for IBM health care coverage upon leaving IBM at, or after, age 55 with at least 15 years of service.

Training

Like other consulting firms, IBM BCS puts its new hires through “consultingboot camp.” Both undergrads and MBAs go on short, intensive training pro-grams—two weeks for MBAs, four weeks for undergrads. The latter, of course,focuses more on business fundamentals.

Training magazine ranked IBM fourth in its April 2002 annual “Top 100 List” attraining and developing their employees. Rankings were determined by financial investment in employee development; type and scope of training anddevelopment programs for employees; quality of programs and how closelydevelopment efforts are linked to business goals and objectives.

Career Path

The career ladder looks like this: research associate (undergraduate hire), consultant (MBA hire), then, after two to three years, senior consultant. “Fromthis point, don’t hold your breath. It’s a pretty big jump to the next levels—principal, managing principal, and vice president,” says an insider. “Of course,if you’re exceptional, sky’s the limit.” Only exceptional RAs get the opportunityto move up to consultant without going back to business school. There are fre-quent opportunities for foreign postings in BCS’s vast overseas consulting net-work.

Those who tire of the consulting lifestyle need not leave the company, as theymight at another consulting firm. BCS and parent IBM Global Services are sohuge that challenging jobs requiring normal hours and little or no travel areavailable. “I got sick of the consulting life and wanted to start a family, butcouldn’t imagine leaving IBM,” says a consultant-turned recruiter.

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Insider Scoop:What Employees Really Like

Rebels with a Cause. You know how your mother always told you to floss andwear clean underwear? How it would make you feel good and nicer to bearound? Everyone at IBM is like that—or so it seems. The blood transfusion ofgo-go entrepreneurialism that was pumped in during the company’s renais-sance in the 1990s may have permanently souped up the creativity and thedecision-making processes, but it didn’t change the fundamental DNA. Yes,speak your mind, dare to advocate the radical course, but mind mom’s man-ners. “Who says you can’t be smart, responsible, trustworthy—and exciting,too?” says one insider. “I don’t think I would have fit into IBM ten years agobecause the rebel in me would have felt too inhibited. Now, it’s the best ofboth worlds: nice, smart people and on-the-edge ideas.”

One-Stop Shop. The term is hackneyed and cliché. But “one-stop shop” ringstruer at IBM BCS than any other consultancy, and that breeds confidence.With unparalleled research and the resources at their fingertips, many IBMconsultants feel they have an advantage right out of the blocks. “Don’t get mewrong—consulting would be hard, challenging work no matter what companyyou went to work for,” says an insider. “But all the firepower we have here givesme sort of an undefinable—maybe psychological—edge. We have enoughknowledge about strategy, operations, and technology to handle whateverneeds arise. Clients know it, so overcoming resistance to change is easier.”

Speak Your Mind. Performance counts at IBM, so don’t be too awed by titles.“If you’ve got a good idea, or disagree with your boss, let him know—it canonly clarify matters and/or make for improvements. Remember: This is aninnovation culture, and you’ll ultimately be judged on your memorable contri-butions.” Just be nice about it.

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Insider Scoop: Watch Outs!

Out of the Fishbowl. Even if you like the prestige of working at IBM, don’tforget that you are merely a mercenary to the client—a hired gun. You won’tbe pampered and coddled. You might be thrown into a dank, dark office withfive people to share two phone lines. You might get a dirty look if the clientsees you checking baseball scores at 3:30 in the afternoon. You might not getyour very own parking sticker at the client site. “It’s a lot different from work-ing a normal job,’” says one insider, “but that’s the point of consulting.”

Long-Distance Lifestyle. Also, don’t romanticize the consulting life. It’sexciting going to a new town, meeting new people. “But after three days,Palookaville is Palookaville,” says one insider. “If—or rather when—you spendmost of your time at the client site, your lifestyle becomes disjointed—especial-ly if the job is out of town.” If you have a hard time when you miss events withfriends and family, or don’t like long-distance pillow talk, start checking outsome other profession.

Spice of Life. Variety is the … well, you know. A consultant’s projects, workingconditions, and quality of partners and managers may be radically differentfrom one week to the next. Remember that dank office with two phone linesfrom last week? This week you might get an entire floor with sweeping oceanviews—or a desk next to the men’s restroom. Remember the laughs you sharedwith that hotshot, go-getter group on XYZ project? Savor them. For the nextfour months, you might be stuck with a bunch of somber bumblers whohaven’t smiled since “Cheers” went off the air. Also, get used to lack of privacy,working lunches, working dinners, and late hours together. And don’t com-plain about some team members’ bad habits, which will make a high-pressuresituation even worse.


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Getting Hired

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IBM BCS recruits at roughly 115 undergraduate schools and a smaller numberof affiliated business schools. Most MBA hiring, says one recruiter, appears tocome from a dozen programs: Stanford, Harvard, Yale, Wharton (University ofPennsylvania), University of Chicago, Emory, Kellogg (Northwestern),Dartmouth, Stern (NYU), University of Virginia, Sloan (MIT), and Columbia.

To get an interview, either contact your campus recruiter directly or introduceyourself at information sessions, career fairs, or other pre-interview events heldat school or locally. If your undergraduate school isn’t on the IBM BCS itinerary, try to get an interview by tracking down the recruiter at your preferred locale or check to see if you can connect with any alums of your university working at IBM BCS.

The selection process typically takes two or three rounds, with several interviews per round. Initial interviews are informational, with the latter case-oriented.

Special Information for UndergraduatesA strong GPA, though important, is considered less so than poise, businesssavvy, relevant skills, and internship experience. Recruiters like well-rounded,self-motivated types with communication and leadership skills. All majors—ranging from economics and business to liberal arts—have a shot at researchassociate positions.

Special Information for MBAsIBM likes to hire MBAs who’ve shown involvement—not just someone who hada job, but was actively involved in learning many facets of the company. Andnot just a student, but someone who got involved in student organizations.“You weren’t just taking up space, putting in the time, and running out thedoor,” says one insider. IBM interviewers like people who do their homeworkon the company. Expect a mix of behavioral and case questions that’ll push onyour analytical strengths and work accomplishments.

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Interviewing Tips> Do your homework—don’t come unprepared. Show that you’ve done a lot

of research about IBM Business Consulting Services, IBM Global Services, and IBM in general. Attend the information sessions and the career fairs held on campus. Talk to alums working at IBM. Search the Internet. Do whatever it takes.

> Don’t waste IBM’s time and yours by using the interview to ask questions about the company—unless they are fairly specific questions that show you know your stuff. In fact, come into the interview with a list of questions, and ask them one-two-three.

> Intelligent, yes. Arrogant, no. Over and over, IBM people mention two desirable qualities: nice and smart.

> Take the initiative and start talking. Don’t wait for recruiters to prompt you with questions. Tell them why you are a good match with the company and the job. Talk about your experiences, what they taught you, and how they helped you develop your management skills and world view.

> Loose cannons need not apply. True, the man in the blue suit image is long gone; IBM has loosened up quite a bit in the last decade. The 2001 annual report talks of IBM being “fast” and “entrepreneurial.” But … remember that this is an immense organization that by its nature has a huge chain of command and channels.

> Expect to be asked, “What type of consulting do you want to do?” Providea definite area of interest—such as “the entertainment industry”—but mention two or three others, too.

> Be ready with success stories—examples from work, school, and life that demonstrate initiative, character, flexibility, and leadership. Dredge your memory; be ready to provide fresh, flattering anecdotes that show your potential as a consultant.

> In the second interview, be prepared to act like a consultant. As the partners walk you through a case, calmly ask questions. There’s no right answer. But you’ll impress by focusing the discussion on the implement-ation of your recommendations as they apply to various models.

Grilling Your Interviewer

Definitely prepare a few questions of your own about IBM BCS. In the meantime, hereare a few to get you started.

> How will the recent changes (merger with PwC, the new name) affect IBMconsulting’s culture and business, for better or worse?

> How much IT knowledge will I have to develop?

> For research associate recruits: Will the company support my decision to pursue an MBA? What percentage of associates leaves to get one, and howmany return after getting one?

> What’s your turnover rate? When people leave, why and where do they go?

> I’ve heard that there are many opportunities to work abroad at IBM. How long would I have to work here to be considered for an overseas post?

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For YourReference

Recommended Reading

“Consulting’s Romantic Comedy”During the early to mid ’90s, big accounting firms were valued as architectswhile IT services suffered from the “plumber” syndrome. Hence, IBM believesthat PricewaterhouseCoopers Consulting will fill more of a “generalist” voidand allow Big Blue to work its way up the client’s value chain.

Source: Inside Consulting, Tom Rodenhauser, 7/31/02.

“Cheap as Chips —IBM buys PwC Consulting”The announcement by IBM that it plans to acquire the consulting arm ofPricewaterhouseCoopers, highlights the effects of the economic slowdown andrecent corporate accounting scandals on the value of consulting firms. It couldalso trigger further consolidation in the IT services and consulting market,according to this article.

Source: Accountancy Age, 8/20/02.

“IBM Corp reasserted its position at the top of the IT services marketby buying PwC Consulting for $3.5bn yesterday”IBM’s takeover of PricewaterhouseCoopers Consulting at a bargain price of$3.5 billion widens the gap between Big Blue and Hewlett-Packard, whichexpanded its own services business through its takeover of Compaq ComputerCorp. earlier this year. It also seems likely to force a series of realignmentsbetween vendors and services firms—PwC has strategic relationships with anumber of IBM’s competitors including HP and Sun Microsystems Inc.

Source: ComputerWire, Joe Fay, 7/31/2002.

Other Resources

Insiders say required reading at IBM Business Consulting Services is The WallStreet Journal. As well as the Harvard Business Review, and Consultants News, published by Kennedy Information (www.kennedyinfo.com/mc/cn.html).

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The Numbers

Numbers for IBM Business Consulting Services are not available as they are notreported separately from figures for IBM.

Key People

Samuel P. Palmisano, President and CEOLouis V. Gerstner, Jr. Chairman of the BoardJohn M. Thompson, Vice Chairman of the Board

Recruiting Contacts

IBM National Recruiting Organization (NRO)Dave Farrel, Director, Staffing Channels and ProgramsBernise Winston, Staffing ManagerGigi Williams, Administrative Assistant, ext. 11444800 Falls of Neuce Rd. Raleigh, NC 27609919-850-5800

Who We AreWetFeet is the trusted destination for job seekers to research companies andindustries, and manage their careers. The WetFeet Insider Guides provide youwith inside information for a successful job search. At WetFeet, we do the workfor you and present our results in an informative, credible, and entertainingway. Think of us as your own private research company whose primary missionis to assist you in making more informed career decisions.

WetFeet was founded in 1994 by Stanford MBAs Gary Alpert and Steve Pollock.While exploring our next career moves, we needed products like WetFeetInsider Guides to help us through the research and interviewing game. Butthey didn’t exist. So we started writing. Today, WetFeet serves more than a million job candidates each month by helping them nail their interviews, avoidill-fated career decisions, and add thousands of dollars to their compensationpackages. The quality of our work and knowledge of the job-seeking worldhave also allowed us to develop an extensive corporate and university member-ship.

In addition, WetFeet’s services include two award-winning websites(WetFeet.com and InternshipPrograms.com), Web-based recruiting technolo-gies, consulting services, and our exclusive research studies, such as the annualWetFeet Student Recruitment Survey. Our team members, who come fromdiverse backgrounds, share a passion about the job-search process and a commitment to delivering the highest quality products and customer service.

WetFeet is headquartered in San Francisco. You can visit us any time atwww.wetfeet.com, by calling 1-800-926-4JOB (or 415-284-7900 from outside theU.S.), or by sending an e-mail to [email protected]. We would love tohear from you, whether you have a job success story, information about a com-pany, new product ideas, or a suggestion for improvement. Thank you for yoursupport!

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The lesson we took from the Bean case? Lots of people get wet feet, but entre-preneurs make boots. And that’s exactly what we’re doing at WetFeet.

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