VEP: Cap Gemini Ernst & Young 2003 (Vault Employer Profile)

EMPLOY PROFILE VAULT EMPLOYER PROFILE:

CAP GEMINI ERNST & YOUNG

© 2002 Vault Inc.

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EMPLOY PROFILE VAULT EMPLOYER PROFILE:

CAP GEMINI ERNST & YOUNG

BY THE STAFF OF VAULT

© 2002 Vault Inc.

Copyright © 2002 by Vault Inc. All rights reserved. All information in this book is subject to change without notice. Vault makes no claims as to the accuracy and reliability of the information contained within and disclaims all warranties. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of Vault Inc. Vault, the Vault logo, and “the insider career networkTM” are trademarks of Vault Inc. For information about permission to reproduce selections from this book, contact Vault Inc., 150 W22nd Street, New York, New York 10011, (212) 366-4212. Library of Congress CIP Data is available. ISBN 1-58131-142-7 Printed in the United States of America

Cap Gemini Ernst & Young

INTRODUCTION

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THE SCOOP

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History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Business Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Key Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Vault Newswire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

OUR SURVEY SAYS

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GETTING HIRED

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Overview of the Hiring Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Questions to Expect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Questions to Ask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Pay and Perks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

ON THE JOB

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A Day in the Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 Job Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

FINAL ANALYSIS

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Recommended Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35

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Cap Gemini Ernst & Young

Introduction Overview In May 2000, the magical marriage of Cap Gemini, the French consulting giant, and Ernst & Young’s consulting unit was consummated, making the new Cap Gemini Ernst & Young one of the world’s largest management and IT consulting firms. Cap Gemini benefited from the deal by doubling its revenue, increasing worldwide employment and strengthening its North American consulting group, Gemini Consulting. For its part, Ernst & Young has avoided the SEC scrutiny of conflicts of interest between its accounting and consulting businesses while watching its Big Five counterparts struggle with the same problems in a less favorable economic environment. The post-merger shareholders’ meeting resulted in a reversion to a board of directors and executive committee structure. Under the proposal of Serge Kampf, the chairman of the board, four group managing directors were chosen. These four and the four group vice presidents constitute the executive committee. IT and management consulting services in the U.S. now boast more than 55,000 people and the firm has a significant presence in more than 30 countries. The consultancy services the chemicals, consumer products, retail and distribution, energy and utilities, financial services and insurance, health care, high tech, life sciences, manufacturing, telecommunications, media and network services and transportation industries. Working for both dot-coms and more mature companies, Cap Gemini Ernst & Young provides business and technology solutions to companies looking to stay at the forefront of the connected economy. To accomplish its high-tech objectives, Cap Gemini Ernst & Young maintains strategic alliances with such companies as Cisco, IBM, Commerce One, Siebel, Oracle, SAP, J.D. Edwards and PeopleSoft.

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Cap Gemini Ernst & Young

The Scoop History Ernst & Young goes back a century, to Chicago in the 1890s. At that time, many benighted American businesses had no notion of regulated accounting practice, and the government had yet to burden American taxpayers with the income tax. English businesses based in the United States, however, knew better, and sent for Scots to look after their investments. One enterprising Scotsman, Arthur Young, set up an independent accounting firm in Chicago in 1894. This firm became Arthur Young & Company in 1906. Meanwhile, two brothers, Alwin and Theodore Ernst, Americans who had been quick to pick up on the accounting concept, launched a tiny accounting firm in Cleveland in 1903. Alwin had previously worked for the CEO of a large industrial firm and believed that accounting could be used to help corporate management make smarter, money-saving decisions. A management consultant was in the making. Arthur Young and Ernst & Ernst got a big break in 1913, when the passage of the federal income tax suddenly created big business for tax departments. Arthur Young, growing steadily, formed a national partnership in 1921, uniting its five offices behind its new headquarters in New York City. Ernst & Young’s expansion and promotion hit a snag in the early 1930s, when the AICPA adopted a policy prohibiting members from advertising. For a time A.C. Ernst resigned from the association. Still, the financial chaos of the 1930s proved to be lucrative for both Arthur Young and Ernst & Ernst, as the Great Depression spawned new financial reporting regulations that increased the need for accounting and auditing services. To snare enough employees to meet demand that decade, Arthur Young began to recruit college students and to train them in its first staff school. Both firm patriarchs went to their heavenly reward in 1948; Arthur Young at 84, and A.C. Ernst at the relatively tender age of 66. Arthur Young made news in 1957 by appointing the first female partner in what was then the Big 8, and Ernst & Ernst merged with British firm Whinney, Murray & Co. to become Ernst & Whinney. Arthur Young and Ernst & Whinney found each other in 1989, merging to become Ernst & Young. E&Y, the first of the Big Five to separate its accounting and consulting businesses, sold its consulting arm to French consultancy Cap Gemini in May 2000, creating the now-familiar Cap Gemini Ernst & Young. Looking for a new challenge? The Vault Consulting Job Board has thousands of top jobs for all experience levels. Visit www.vault.com.

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Cap Gemini Ernst & Young The Scoop

Business Description CGE&Y around the world No matter where you are on this planet, you aren’t far from an Cap Gemini Ernst & Young office. The firm counts about 55,000 employees across the globe. CGE&Y’s offices are organized into eight geographical regions: North America, the United Kingdom and Ireland, Nordic, Benelux, Germany and Central Europe, France, Southern Europe, and Asia Pacific. In fiscal 2000, CGE&Y reported worldwide revenues in excess of $6.5 billion.

One of the best CGE&Y hopes to continue what had in previous years become an annual tradition for the then-independent Ernst & Young: being named to both Fortune’s “100 Best Companies to Work For” list and Working Mother’s “100 Best Companies for Working Mothers” list. The lists take into account recruiting, development and earning, work environment, rewards and recognition, health and well being, time/work/life, and financial security. E&Y regularly earned praise for family-friendly work arrangements, its mentoring and networking opportunities for women, and for founding an Office for Retention.

Making connections During the Internet boom Cap Gemini Ernst & Young placed its bets on playing a significant role in the evolution of the connected global economy by helping traditional businesses and “dot companies” establish an online presence. The emphasis has moved away from pure-play Internet companies, with the firm concentrating on clients such as ABB, Bell Canada, Eli Lilly, Heineken and Standard & Poor’s. CGE&Y even created a stand-alone division dedicated to e-business in an attempt to compensate for the firm’s initial slow entry in the dot-com market. The move backfired, however, when intraorganizational conflicts resulted. “We made a mistake,” then-COO Paul Hermelin told the Financial Post in May 2001. “It triggered some internal resentment and as the Internet hype was fading we had to reorganize.” Fortunately Cap Gemini Ernst & Young has also evolved by branching in other directions. In December 2000, Cap Gemini Ernst & Young and Cisco Systems formalized their March 2000 agreement by launching a new industry 4

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Cap Gemini Ernst & Young The Scoop

practice, Cap Gemini Ernst & Young Telecom Media Networks that will continue working under the Cap Gemini Ernst & Young auspices with over 150 clients.

Seeking out solutions A May 2000 agreement between Ernst & Young’s consulting arm and fellow consulting firm Commerce One grew into much more by September 2000. The two companies, Cap Gemini Ernst & Young and Commerce One, agreed to form a global alliance to create e-marketplaces for business-to-business trading and e-commerce. Cap Gemini Ernst & Young has also recently initiated other technology-based service line categories, including Technology Consulting centers. One of these centers, the eCBackbone, coordinates decisions for systems integration. In addition, the Center for Business Knowledge, the Center for Business Transformation, and the Accelerated Solutions Environment are bases for accessing Cap Gemini Ernst & Young expertise. And through a partnership with Microsoft, the company also offers RapidStart, which gives access to online specialists who provide e-business solutions within 30 days or less.

Taking a creative step Launched in March 2000, Cap Gemini Ernst & Young’s wholly owned creative design and Internet branding studio, DareStep, has continued to expand. Through its staff of over 600 in North America and Europe, DareStep provides a range of branding and user experience services to clients such as McGraw-Hill, IKEA and Dell.

Pursuing partnerships Starting in November 2000, Cap Gemini Ernst & Young began a rash of partnerships and services extensions. It teamed up with Oracle and Fiat SpA to form an Internet consulting company, eSPIN, with Fiat’s new Business Solutions arm. In February 2001, the December 2000 partnership between Cap Gemini Ernst & Young and Vodafone was officially named Terenci, a company that will offer mobile communications services to a variety of industries. Then, in March 2001, Cap Gemini Ernst & Young and tagmanet launched tagmaConsultant, an online consulting service.

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Cap Gemini Ernst & Young The Scoop

Despite a series of layoffs and financial difficulties, CGE&Y also has expressed interest in acquiring smaller information technology services companies. In May 2001 then-CEO Geoff Unwin reported that the firm had been approached by a number of companies about a possible acquisition, and that it was scouting potential targets. CGE&Y is looking in particular for companies to fill niche markets in Germany and the Asia Pacific region.

Accolades abound Cap Gemini Ernst & Young brought home the Best Management Practice Award from the Management Consultancies Association (MCA) in March 2001. The company was recognized for its work with Open Interactive, the world’s leading interactive television series. MCA also offered high commendation in the Strategy & Business Transformation category for work in the military shipbuilding industry. In February 2001, CGE&Y received the “Greatest Business Impact” Lotus Beacon Award for the internal knowledge management system, Knowledge OnLine, it created for the Fluor Corporation. On the other end of the awarding dynamic, Cap Gemini Ernst & Young sponsored the E-nitiative award at London’s Growing Business Awards ceremony in December 2000.

In-house recognition To back up its belief in publicly recognizing its employees for their efforts, Cap Gemini Ernst & Young includes among its more unique programs the Consultant of the Quarter award. Each division within the company selects an employee to be its Consultant of the Quarter. Those selected are then nominated to attend the Overachievers Club celebration — a four-day, allexpenses-paid trip to an exotic location for the employee and a guest. Company sources tell us that recognition is sincere and real-time — employees are also given spot recognition with cash awards or with personalized awards that meet the employee’s special interests.

A university of our own Cap Gemini Ernst & Young University, situated outside of Paris, facilitates the sharing of best practices as well as basic skills. The Discovery program is designed to help recent graduate new hires to learn about Cap Gemini Ernst & Young and the methods it employs in studies and with clients.

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“Developing our International Leaders” is a nine-month program that takes an intensive look at a variety of industries and capabilities. The 11-year-old University was awarded the “Corporate University Xchange European Excellence Award” in October 2000. Knowledge Galaxy fits into the daily life of a Cap Gemini Ernst & Young consultant as the knowledge-sharing intranet.

Shakeup Amidst a faltering economy in late 2001, Cap Gemini Ernst & Young CEO Geoff Unwin announced that he would step down from his post at the end of the year and leave the firm altogether in April 2002. Taking his place was longtime CGE&Y executive Paul Hermelin. Coinciding with the announcement of the leadership change was word that 2,500 employees would be laid off. That round of job cuts increased the total for 2001 to 5,400, or about 9 percent of the firm’s workforce. CGE&Y made the moves as part of a massive cost-cutting initiative designed to save about $800 million. Also in the fall of 2001, the firm downgraded its annual revenue forecast from an original figure of $9.6 billion to $7.5 billion. Financial analysts have been understandably skittish when it comes to assessing CGE&Y. “The integration challenge was massive,” Goldman Sachs equity research director Richard Leggett told The International Herald Tribune in November 2001. “But it took nine months to establish the structure of the new organization. Those turned out to be a crucial nine months. As the company emerged from that period, the bottom fell out of the market.” For his part, new CEO Hermelin has remained tight-lipped about the firm’s future in light of the current climate. He has not made any specific revenue projections, and has asserted that CGE&Y will not make any dramatic shifts in strategy until market conditions improve.

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Cap Gemini Ernst & Young The Scoop

Organization Key Officers Chairman: Serge Kampf CEO and COO: Paul Hermelin

Ownership Cap Gemini Ernst & Young is a public company. French investment group Compagnie Generale d’Industrie et de Participations (CGIP) owns 5.7 percent of the firm’s stock, while Chairman Serge Kampf owns another 6 percent.

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Key Competitors Accenture Accenture — known as Andersen Consulting until January 1, 2001 — is among the world’s leading providers of management and technology consulting services and solutions. With more than 71,000 people in 46 countries, Accenture can draw from a vast array of industrial and technical expertise. Consultants in its five global market units (Communications & High Tech, Financial Services, Government, Products and Resources) and its eight service lines (Customer Relationship Management, Finance & Performance Management, Human Performance, Strategy & Business Architecture, Supply Chain Management, Technology Research & Innovation, Solutions Engineering and Solutions Operations) work together to design and deliver strategies and solutions for 84 of the Fortune Global 100 and more than half of the Fortune Global 500 — not to mention several hundred startups and spin-offs. The firm’s huge staff and technological savvy enable it to bring both focus and massive manpower to any consulting task.

Andersen The consulting practice at Andersen (formerly Arthur Andersen) was merely a gleam in the eye of parent organization Andersen Worldwide in 1989, when it decided to spin off Accenture (formerly Andersen Consulting) and professional services firm Andersen into separate-but-equal companies. Today, Andersen has its own highly regarded business consulting practice, rapidly growing from virtually no revenues in the early 1990s to an almost $2 billion practice with more than 12,000 consultants in 2001.

A.T. Kearney Founded in Chicago in 1926, A.T. Kearney has operated exclusively under its current name since 1946. (The firm was bought by EDS in 1995 but retains its name and identity.) Solid results with early engagements, including an extensive study of U.S. Steel and a longtime relationship with the Kroger supermarket chain, helped put A.T. Kearney on the map. The firm’s growth accelerated when former head Fred Steingraber became CEO in 1983. Today, there are more than 5,000 A.T. Kearney employees worldwide. A.T. Kearney’s clients typically are Global 1000 companies, although the firm’s Looking for a new challenge? The Vault Consulting Job Board has thousands of top jobs for all experience levels. Visit www.vault.com.

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Cap Gemini Ernst & Young The Scoop

growing work in e-business involves selected Internet startups as well. While A.T. Kearney has experience in many industries, it is particularly strong in automotive, financial institutions, consumer industries, communications/high technology, health care, pharmaceuticals and retail.

Deloitte Consulting Deloitte & Touche (D&T), one of the Big Five professional services firms, is the American branch of Deloitte Touche Tohmatsu, a global leader in professional services with nearly 90,000 employees in over 130 countries. The firm’s consulting arm, Deloitte Consulting, ranks as one of the largest consulting practices in the industry, with over 15,000 employees. Deloitte Touche Tohmatsu serves nearly one-fifth of the world’s largest companies as well as large national enterprises, public institutions and successful fastgrowing companies, and Deloitte Consulting counts more than half of the Fortune 100 among its clientele, including Bayer, Boeing, GM and Merrill Lynch to name a few.

IBM Global Services Back in 1992 — when IBM lost $5 billion — who would have thought that a decade later, not only would the company rise from the ashes to again be one of the leading high-tech firms in the world, but would also house the world’s largest IT consulting firm? But that’s what happened, and today, IBM Global Services’ nearly 150,000 employees offer their expertise in consulting, IT outsourcing, hosting and systems integration in 160 countries.

PricewaterhouseCoopers MCS PricewaterhouseCoopers’ 2000 management consulting revenues totaled over $6 billion. In February 2000 PricewaterhouseCoopers began pursuing steps to “dis-aggregate” its businesses in order to satisfy regulatory needs, client needs and organizational aspirations.

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Vault Newswire December 2001: Big Blue rumored to be interested in acquiring CGE&Y Less than two years after the merger of Cap Gemini and Ernst & Young, rumors have surfaced that the combined company may undergo another major merger. CGE&Y stock has risen sharply on speculation that IBM Global Services had offered to acquire it. The two companies have been the subject of merger rumors several times in the past, and both denied that any kind of a deal is in the works. December 2001: Roll out CGE&Y’s cost-cutting efforts literally have caused some employees in Europe to go hungry. In a devastating blow to fancy bread lovers throughout the firm, the traditional free Tuesday morning croissants were canceled. However, employees report that the policy, which comes during a period of widespread layoffs, probably has reduced costs enough to save at least one job. December 2001: CGE&Y to create time and materials company Responding to a slow market for information technology services, Cap Gemini Ernst & Young announced that it will create a new company focused on low-end services. The so-called “time and materials” unit will employ 5,000 people and will provide clients with short-term hardware and software solutions. Such services are unlike CGE&Y’s usual offerings, which tend to be longer and more lucrative. November 2001: Get the message Maurice Abell, CEO of Cap Gemini Ernst & Young’s operations in the United Kingdom and Ireland, took an unusual tack to tell employees about the firm’s upcoming round of layoffs: he left them a voice mail message. The UK offices will see a reduction of 750 jobs as a result of what Abell’s message described as “current market conditions.” The firm made 250 other job cuts in May. Additionally, executives in the region falling into the top 10 percent of the firm’s salary range will see their pay cut by £100,000 or more. May 2001: CGIP orders a small stake In a move aimed at simplifying its corporate structure, French holding company CGIP announced that it plans to reduce significantly its stake in Cap Looking for a new challenge? The Vault Consulting Job Board has thousands of top jobs for all experience levels. Visit www.vault.com.

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Cap Gemini Ernst & Young The Scoop

Gemini Ernst & Young. CGIP currently owns 15.2 million shares, 8 million of which it would sell. The move would reduce CGIP’s piece of the CGE&Y pie to 5.7 percent. February 2001: Another dance partner? Rumors are flying in the business community about another potential takeover target for Cap Gemini Ernst & Young. This time the would-be partner is Sema Group PLC, according to French news daily Le Figaro. CGE&Y is just one of a number of possible suitors however; Schlumberger and Logica PLC have also been mentioned. February 2001: Ernst & Young announces strategic marketing alliance with CrossLogix Ernst & Young’s alliance with CrossLogix will accelerate distribution of CrossLogix’s web-based, enterprise systems to corporate and financial customers. February 2001: Ernst & Young’s Hospitality Services Group initiates Energy Advisory Services The Energy Advisory Services help their clients identify and implement energy conservation measures and make informed energy purchasing decisions. December 2000: Ernst & Young Listed in Fortune’s 100 Best Companies to Work For” list and Working Mother’s “100 Best Companies for Working Mothers” list for three consecutive years. October 2000: Ernst & Young launches Intellinex LLC Intellinex provides customized learning systems for corporate training and education. September 2000: A New International Structure for Ernst & Young announced The new structure is meant to integrate the global operations of the entire company by combining the operations in more than 60 countries into 10 geographic areas.

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Cap Gemini Ernst & Young The Scoop

September 2000: James Turley appointed as successor to Chairman Phil Laskawy June 2000: Ernst & Young spins off eSecurity Venture Ernst & Young announced it is spinning off a new electronic security venture, eSecurityOnline.com. The company provides online vulnerability reports and solutions tailored for each of its clients. May 2000: Ernst & Young Sells Consulting Business to Cap Gemini for $11.2 billion Cap Gemini acquires 18,000 Ernst & Young employees. Ernst & Young becomes the first of the Big Five to separate its consulting and accounting businesses. February 2000: Ernst & Young Consulting eliminates 400 jobs Ernst & Young has announced the dismissal of 400 consultants, as the firm switches its focus to e-commerce. The cuts, which amount to about 5 percent of the consultancy’s North American staff, are said to be unrelated to the firm’s pending merger with European consulting firm Cap Gemini. December 1999: Ernst & Young teams up with IBM IBM Global Financing and Ernst & Young have announced a joint venture that will provide financing for IT hardware, software, and services. The loans, which are specifically for E&Y clients, are meant to help lower the barriers to breaking into e-commerce. The money can be used to buy consulting services, hardware, software, and other IT-related services. December 1999: Ernst & Young one of the best places to work in America Fortune has named Ernst & Young to its list of the 100 Best Companies to Work For for the second year in a row. The magazine selected E&Y based on a random survey of the company’s 32,000 U.S. employees, in addition to a review of its human resources program and its Office of Retention. December 1999: Cap Gemini in talks to acquire E&Y Consulting Cap Gemini has announced that it is currently in talks to acquire Ernst & Young’s management consulting unit. A British newspaper, Sunday Business, reported that Cap Gemini, which is based in France, was negotiating to buy E&Y’s consulting arm for 3 billion pounds, or about $4.8 billion. Looking for a new challenge? The Vault Consulting Job Board has thousands of top jobs for all experience levels. Visit www.vault.com.

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Cap Gemini Ernst & Young The Scoop

October 1999: Ernst & Young joins with Oracle in partnership Ernst & Young has invested about $5 million in a pact with software giant Oracle to market Oracle’s e-commerce software to businesses. Oracle will make the business-to-business software and market it in conjunction with Ernst & Young, while E&Y consultants will do most of the installation. E&Y plans to invest $10 million to $20 million in the venture in 2000. September 1999: A shiny new headquarters for Ernst & Young Ernst & Young has signed a 20-year lease for a new 37-floor, 1.1 million square-foot national headquarters to be built at 5 Times Square in New York City, in one of the largest real estate transactions in New York history. The total lease rental value exceeds $1.2 billion. E&Y will use the space to house its 4,000 NYC employees, currently scattered in seven different buildings throughout the city. The firm will move its headquarters from 787 Seventh Avenue, where it has been based since 1989. August 1999: Attention to work-life issues garners award for E&Y By paying attention to issues like flextime, work-life support, and retention, Ernst & Young earned the first-ever Business & Health ProductivityPlus award, sponsored by The Hartford, an insurance underwriter. Developed over the past three years, Ernst & Young’s work-life program has reduced turnover among women, saving the firm $8.5 million in 1998. June 1999: Movin’ on up Employees of Ernst & Young’s Irvine, California office will move into cushy new digs next year, as the firm signed a 10-year lease transaction with Cushman Realty Corp. To be known as the Ernst & Young Center at Lakeshore Towers, the firm will occupy four floors of the new 10-story, 230,000-square foot building. Construction is expected to be complete by July 2000. May 1999: Brand new PR firm Amidst a major brand-building campaign, Ernst & Young selected Cambridge, Massachusetts-based Weber Public Relations Worldwide to spearhead a new public relations program. Weber will increase the brand recognition of E&Y’s Assurance and Advisory Business Services, Tax Services, and Consulting practices. An Ernst & Young spokesperson cited Weber’s effective use of Internet tools as part of the reason for the selection.

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May 1999: E&Y takes Stock Bolstering its consulting business, Ernst & Young hired Keith Stock as Global Director of the firm’s Financial Services division. Stock, who came to E&Y from a position as vice president of AT Kearney’s Financial Institutions Group, will be in charge of strategic planning, human resources, client service, and revenue growth for the consultancy. He had previously worked for Mellon Bank, First Financial Investors, McKinsey, and Andersen Consulting. April 1999: E&Y acquires share in IntraLinks Continuing its commitment to technology, Ernst & Young announced that it has purchased a “significant minority share” in IntraLinks, Inc., an Internet company. IntraLinks uses the Net to expedite capital market deals by transferring voluminous documents into an electronic environment. The company is able to eliminate much of the paper involved in deals like loan syndications, mergers, IPOs, and others, cutting costs by up to 25 percent. April 1999: Feeling secure Already a strong practice, E&Y has stepped up the size and the presence of its Information Security Services group, both in the U.S. and globally. According to the group’s national director, Jon Darbyshire, the firm changed the name of the practice to eSecurity Solutions to accentuate its “three key tenets — electronic, enterprise, and enabling.” Ernst & Young currently boasts more than 1,200 security professionals, as well as over 20 eSolution Centers dedicated to providing clients with the latest security and control solutions. January 1999: Out of Africa In a bold new venture, Ernst & Young announced that it would create a new consultancy in South Africa. The firm’s South African operation struck the deal with the self-described “black empowerment investment company” Worldwide African Investment Holdings. The as-yet-unnamed new firm will split 60-40 between Worldwide and E&Y Consulting Services, respectively. It will subsume E&Y’s public sector consulting business as well as three other divisions, and will provide private equity investment, outsourcing, structured finance and other services.

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Cap Gemini Ernst & Young The Scoop

September 1998: Ernst & Young close to clients Ernst & Young joins competitors Andersen Consulting and PricewaterhouseCoopers in publishing books that detail some of the keys to consulting success. Ernst & Young’s book, Close to the Client, elaborates the firm’s client strategy, notably the importance of satisfying key clients. August 1998: E&Y announces $100 million advertising campaign E&Y has chosen New York’s D’Arcy, Masius Benton & Bowles to handle a $100 million advertising campaign set for fall release. In a statement, CEO Phil Laskawy said: “A global campaign will help us better communicate the consistent, high caliber of our work, our ability to work closely with our clients to provide the speed they seek.” Industry observers questioned whether the size of the campaign would effectively reach consumers already barraged by financial services ads. Allen Adamson of Landor Associates commented to CBS MarketWatch: “All the financial services brands are somewhat the same — Citibank, Merrill Lynch, Andersen. They’re all trying to scream louder.” June 1998: E&Y expands in Slovenia Ernst & Young boosted its presence in Slovenia by creating a management consulting subsidiary to complement its existing tax and audit practice. The firm anticipates increased demand for consultants in Slovenia, where privatizations are planned for key sectors such as banking, insurance, and pensions. The subsidiary will be known as Ernst & Young Consulting. June 1998: AT&T claims E&Y was pressured to drop project AT&T filed suit in Texas state court, alleging that SBC Communications, Inc. had pressured Ernst & Young into abandoning its systems-integration work helping AT&T connect to SBC’s local telephone network. For its part, E&Y denied the allegations in statements to the Texas Public Utilities Commission. An SBC spokesperson called the suit “frivolous.” February 1998: CEO Laskawy puts kibosh on Ernst-KPMG merger In the face of growing concern from US and European regulators, who feared a KPMG-E&Y merger would result in higher corporate audit prices and increase conflicts between the accounting and consulting divisions of the two firms, Ernst & Young CEO Philip Laskawy opted to put a stop to the impending merger, telephoning Colin Sharman, chair of KPMG’s

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international unit, and KPMG CEO Stephen Butler. Butler later expressed disappointment, saying that he felt regulatory hurdles could have been overcome.

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Cap Gemini Ernst & Young

Our Survey Says Comfortable conservatism Cap Gemini Ernst & Young’s size brings both advantages and disadvantages. On the less positive side, some consultants indicate that the firm possesses a conservative culture. “I think it’s a very conservative firm in terms of the way management acts and in the way projects are handled,” says one consultant disapprovingly. Some say that even though Cap Gemini Ernst & Young is “more stodgy in terms of culture, it is more professional at the client site.” Others call the firm “more laid back. Very friendly. Very helpful. The higher-ups are very into being approachable.” The same source goes on: “A lot of people here have tremendous amounts of aptitude and executive presence. There are very interesting dynamics.” Another contact notes: “It’s a large firm, and if you’re ambitious, it can be tough sometimes.” The same contact continues: “It’s great if you want to settle down, but if you want to be making the most money of anyone your age, or if you want to do everything that interests you, you might get frustrated. It’s more structured. You get assigned to something and that’s your project — hopefully you’ll like it, ‘cause that’s what you’ll be doing for a while.” However, one source professes that some of the biggest pluses are “the attention that upper management gives to all levels” and that “no one is allowed to fall through the cracks.”

Capitalizing on the culture If anything, working at Cap Gemini Ernst & Young means a sociable work environment. One contact explains: “In many cases, you’ve got a huge room of 25 cubicles, and everyone is between the ages of 23 and 29.” “It’s where I met my boyfriend!” chimes another. Insiders also report frequent lunches and regular soirees with colleagues. But when asked about firm-organized activities, one insider responds with a rather unsettling comparison: “Not as much as Andersen. I’ve talked to people there, and it almost seems like they want to make their employees a bunch of alcoholics.” One source from the former E&Y side adds, “In the last year, social events have kind of disappeared. During the course of the merger, things like that have fallen through the cracks.” While perhaps more subdued than its competitors, Cap Gemini Ernst & Young has its fun spots. “Each Looking for a new challenge? The Vault Consulting Job Board has thousands of top jobs for all experience levels. Visit www.vault.com.

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Cap Gemini Ernst & Young Our Survey Says

engagement manager has discretion to create social events, and you develop a strong bond with your team.” “There’s the training, and that’s a blast,” reports one E&Y holdover who elaborates: “Every division has their own form of training. Basically you try and stay awake all day during some kind of class, and then you go out and drink all night.” Everyone in the “decidedly European culture,” reports one Cap Gemini Ernst & Young consultant, “tries to have a good time, so long as the work that needs to get done gets done.”

Growing international presence CGE&Y insiders tend also to comment on the firm’s increasing international outlook and encouraging attitudes towards going abroad. One contact notes that 30 to 40 percent of his office actively chose international assignments, and explains: “It’s really encouraged, I guess because of globalization, and because they know that a lot of these people would just leave if they couldn’t go abroad. It’s very easy to transfer between countries.” One contact marvels: “On my first business trip ever, I went to Rio!” Some criticism of CGE&Y’s global outlook, however, emerges. One of our contacts confirms this reasoning, and tells us: “Cap Gemini Ernst & Young is all over the world, but has trouble acting like a global organization.” This source further explains: “It’s a domestically focused organization. You have these huge databases, but the vast majority is domestic information...the attitude of most of the people that really run the show is that only the U.S. matters.”

Diversity issues at the top One source tells us that minority representation is not so bad at the consultant level, but almost non-existent among the senior leadership. This source goes on to say, “Since it is historically a very white, very male firm with employees who stay at the same company for 20 or 25 years, there is a very conservative and traditional way of thinking that does not attract diverse applicants.” “With the current senior leaders,” this insider concludes, “it is not a very comfortable environment, but there is hope for the future.” Others from the former Ernst & Young consulting offices describe it as “fairly diverse” and “comfortable.”

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Cap Gemini Ernst & Young Our Survey Says

Sharing in the potential The E&Y consulting partnership has been eliminated by the merger, and the company has transitioned into a limited liability company. This has led one source to describe his new options as “incredible.” “As for compensation,” one contact tells us, “the general pattern is that you make a fair salary, but nothing spectacular.” But the bonuses from performance reviews “could be tremendous — very significant.” Others say that they are excited at the prospect of “finally being able to own shares in companies audited by Ernst & Young,” which they couldn’t before. As for promotion, “it is restricted to the annual review, and speed of advancement is based on performance.” Sources say that “compensation-wise, there is certainly room for advancement.”

Internship Program The summer internship program is described as “a pretty easy summer.” There are “projects” in addition to “events for interns and trips.” One alum says it “helped introduce [him to] the personalities of the people and the culture of the firm,” but didn’t help in terms of client service work since there was little exposure to the day-to-day.” CGE&Y hosts a Summer Internship Conference. In 2000 summer candidates spent four days and three nights in Keystone, Colo., for both indoor and outdoor programming with the executive leadership of the firm. The program, dubbed “ChallengeQuest,” earned a National Best Practice award from the National Association of Colleges & Employers (NACE).

Come train with me Post-orientation, insiders laud “the extensive training and career development” from day one and the “number of courses given by the firm either in your field or other areas.” The “most useful” aspect is the “teaching how to be a consultant — it puts everyone on the same page in terms of methodology.” Others disagree, saying: “Most is good, some not so good.” Another contributes, “There needs to be a balance to provide timely training before it is actually needed.” Cap Gemini Ernst & Young is “pretty generous sponsoring you to go to external conferences, and there is potential tuition reimbursement.” In addition, community service at Cap Gemini Ernst & Young is “strongly encouraged” and “stands out more than most companies.”

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Cap Gemini Ernst & Young Our Survey Says

In fact, the firm “actively encourages consultants to get involved [in community service], and it figures into performance reviews.”

Great technology, not-so-great support Regarding technology, Cap Gemini Ernst & Young certainly practices what it preaches. “Technology-wise, they spare no expense, no matter what area,” says one. Another agrees: “Technologically, it’s extremely advanced. Every time there’s a new technology it’s on your desk.” Another adds: “CGE&Y is known as having the leading management system. It’s all home grown — it’s cool stuff.” As for support, reviews are mixed. “Support staff is pretty good,” notes one of our contacts, who brusquely qualifies: “Personally, I don’t believe junior people should have much support. You can do your own copying.” Another contact says, “not very good.” However, insiders note strong graphic services, as “Cap Gemini Ernst & Young wants things to look graphically advanced.”

A livable lifestyle Work-life initiatives have created programs like flextime arrangements, women’s initiatives, and a concierge service “to do anything like dry cleaning or fixing your car for five dollars.” The Cap Gemini Ernst & Young “concierge service attempts to help consultants do what they find they don’t have the time to do because of work.” Sources tell us that “you never have a permanent office”; instead, there are “hoteling cubes” that you have on a “week-to-week basis,” which “keeps papers to a minimum” and encourages working at home. A “really neat thing,” this system “promotes the collegial atmosphere and means that real estate is not correlated to importance in the firm.” In addition, the firm tells Vault that it adheres to a 3-4-5 policy, which translates into three nights away, four days at the client site, and the fifth day at the home office.

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Cap Gemini Ernst & Young

Getting Hired Overview of the Hiring Process Cap Gemini Ernst & Young lists its openings on its web site and allows you to submit your resume on-line. Schedules for on-campus recruiting and other events at U.S. colleges, as well as job listings, can be found on CGE&Y’s web site: http://www.us.cgey.com/careers/campus/default.asp. Applications for experienced consultants are accepted online. On-campus recruiting starts with one or two behavioral interviews conducted on campus at target schools nationwide. The strategy & transformation group conducts two interviews that are case-based interviews. About 50 percent of these second-round interviews are also conducted on campus, with the other 50 percent taking place in the local CGE&Y offices. Candidates again are given behavioral interviews (with the exception of the strategy & transformation group) with two to three managers, senior managers and/or vice presidents. Insiders share that the interviews are rather “laid-back; they won’t try to stress you out to see how you handle the pressure.” One says that the interview was “more friendly and collegial than I expected — not confrontational.” Most candidates are contacted within 48 business hours of their second interview for potential offers. Geographic “sell days” are also held in most locations, affording candidates an opportunity to become familiar with local personnel and their specific office assignment. CGE&Y also allows campus candidates anywhere between six to 12 weeks to make their final offer decision. The firm has identified several “dimensions”: technical/professional knowledge, ability to learn, analysis and judgment, client serving orientation, knowledge of industry, flexibility, adaptability, travel, quality, commitment to excellence, leadership, integrity and executive presence. This means questions like “Tell me about a situation where you used your skills to demonstrate [one of these factors]. What was your role? What did you do? What happened? What did you learn from this experience?” Cap Gemini Ernst & Young also does extensive hiring of experienced candidates. Qualified candidates must be not only technically savvy, but also have strong business acumen. The interview process itself is very hands-on and usually consists of three interviews. Candidates can expect to have a technical interview (depending on their area of focus) and also to meet with Looking for a new challenge? The Vault Consulting Job Board has thousands of top jobs for all experience levels. Visit www.vault.com.

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Cap Gemini Ernst & Young Getting Hired

some of their peers, allowing them to experience the real look and feel of the company from a cultural standpoint as well as from an opportunity standpoint. As insiders point out, “Technical skills can be taught, but a person’s ability to interact with people, well, cannot.”

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Cap Gemini Ernst & Young Getting Hired

Questions to Expect 1. I see from your resume that you worked on developing a database during your summer job. Tell me a bit about that. How exactly did you use your skills there? Interviewers want to see your skills in action, and to start the process of the full skills match. Also, note that Cap Gemini Ernst & Young interviewers won’t necessarily be looking to see that you’ve done high-profile work for fancy companies. They simply want to see that you “have the right skills and you’ve used them.” 2. So what are some of the activities have you been involved in at school? Keep in mind here the words of one of our contacts: “We’re looking for diversity, not just in terms of ethnicity and gender and things like that, but also in terms of interesting backgrounds. We really want people with different ways of solving problems.” 3. What are some of your favorite classes? You might want to structure your answer to show off some of your talents.

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Cap Gemini Ernst & Young Getting Hired

Questions to Ask 1. Generally speaking, how many projects will I be working on in this practice? Insiders report varied work requirements depending on the department. 2. I’ve heard Cap Gemini Ernst & Young has great training. What sort of advanced coursework does E&Y offer? 3. What kinds of international opportunities does Cap Gemini Ernst & Young offer? The firm is increasing its international presence, so assignments in overseas locations should abound for globally-minded young consultants.

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Cap Gemini Ernst & Young Getting Hired

Pay and Perks Pay Salary, of course, will vary by city. Those coming to the firm from their undergraduate studies can expect salaries between $35,000 to $50,000.

Perks • 15-25 days of paid vacation, depending on rank and tenure • Generous leave of absence policy • 401(k) plan (match 50 cents to a dollar, to qualifying employees) • Flexible spending account • Pension plan (again, to qualifying employees • Reimbursement for late-night cabs, meals, etc. • Flexible work arrangements • Medical, dental and vision plans • Insurance plans • Long- and short-term disability • Adoption assistance • Service recognition awards

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Cap Gemini Ernst & Young

On the Job A Day in the Life Consultant 8:25

Arrive at the client site. At the office, “officially the hours are 8:30 to 5:30,” but you cannot expect to be on a regular schedule while working on a project.

8:30

Catch up on voice mail, e-mail and The Wall Street Journal, and plan out the day as best you can. (“I spend much of my time in meetings with the client, and a lot of time just crafting the project itself.”)

9:00

Meet with your team to begin planning a pitch for tomorrow. You have some good ideas about how to expand the client’s e-commerce capabilities, and this is your best chance to flesh them out before going public with them. (“We are constantly building spreadsheets to crunch numbers we’ve gathered, and building PowerPoint slides to show the client the results of our analyses.”)

9:45

Start crafting your part of the pitch in between fielding numerous emails and phone calls from frantic employees from the client company. (“One of the great things about my job is that I get a decent amount of interaction with director-level client employees.”) However, some days that’s more of a plus than others.

11:45 A senior CGE&Yer with whom you’ve developed an informal mentor-mentee relationship calls to check on how you’re doing and how the project is coming along. “I spend a lot of time guiding [young consultants’] career development,” says one senior manager proudly. 1:00

Order in lunch from the local deli and schmooze with your team members. (“Lunch is catch as catch can. We try to get together for lunch, but often I’ll go along with the client.”)

1:50

Work on putting the finishing touches on tomorrow’s pitch (“You make pitches to the client early in the project. Later, you tend to have more informal meetings.”)

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Cap Gemini Ernst & Young On the Job

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3:30

During another team meeting you call a co-worker at the office who has some experience that might be pertinent to your project. (“I do most of my work in person or in meetings, and not via the phone. The exceptions would be calling the client for clarification on a requirement, for example, or to conference someone else into a meeting where we need their input.”)

6:00

Take a straw poll to see where people want to go to dinner tonight. “There are social events like dinners about one night a week when I’m at the office, but I go out more often when I’m at the client’s.”)

7:15

Head out to dinner. The project is coming along well so far, so you feel OK about leaving. Of course “on crunch days — about 30 percent of a typical project — I’ll leave from 10 p.m to 2 a.m.” While enjoying a plateful of sushi, discuss tomorrow night’s social activities. (“Though most project members can go home Thursday evenings, a good number choose to stay at the client city Thursday nights and then we all go out dancing and partying. Then they get up early Friday and fly home…The after-work social life is a great ending to a long day. This pace, however, wears one out and by the weekend I don’t even want to go out with my friends. I just want to sleep!”)

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Cap Gemini Ernst & Young On the Job

Job Description Consultant Broadly speaking Cap Gemini Ernst & Young consultants work in either Strategic Consulting or Business Consulting. (These are two of the firm’s six designated “professions”; Technology, Operate, Business Development, and Enabling Professions are the others.) Many consultants arrive at CGE&Y with prior industry experience. To be considered for senior positions, prospective consultants generally are expected to have worked at least three years at another consulting firm or in a field related to that which they will specialize. Software and other technical expertise, as well as familiarity with industry trends, may also be necessary credentials. Working within a team environment, CGE&Y consultants are responsible for doing analyses, conducting research, and preparing proposals and presentations for clients. The job usually involves frequent travel to the client site and other locations. As they gain more experience, consultants will oversee the work of junior staffers and act as liaison between the project team and the higher-ups in the firm. After working their way up the ranks, they also work on identifying new business opportunities and potential clients.

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Cap Gemini Ernst & Young

Final Analysis The old maxim that nothing in life is certain fits Cap Gemini Ernst & Young to a tee. After undergoing a number of organizational changes as an independent entity in recent years, Ernst & Young separated its consulting business and merged with Cap Gemini. The combined company was then forced to cope with the standard culture adjustments and other growing pains endemic to such a union. Facing a soft market for consulting services, the firm has been forced to cut thousands of jobs. It has also seen a change in top management with CEO Geoff Unwin turning over the reins to Paul Hermelin in January 2002. As The Wall Street Journal Europe put it in December 2001, Cap Gemini Ernst & Young is “scrambl[ing] to tune up its strategy amid a down market that appears to be catching it more flatfooted than some of its rivals.” While the long-term fortunes of CGE&Y have yet to be settled, the firm indeed is doing what it can to improve its outlook. Heavy investment in its technological expertise and resources has prepared the firm to remain on the cutting edge for some time to come. To guarantee success, the firm will need to continue to consolidate its international outlook and position itself to compete in the ever-evolving consulting game.

Uppers • 16 weeks of family leave available to parents • Day care facilities • Tuition reimbursement • Generous vacation • Flexible work arrangements

Downers • No private workspace • Structured assignment system can be stifling

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Cap Gemini Ernst & Young

Recommended Reading • “Unwin Quits as Chief Executive of Cap Gemini,” Financial Times, December 12, 2001. CGE&Y gets a new fearless leader, but one who will have fewer people to lead. • “Cap Gemini Saves Dough on Pastries,” Dow Jones International News, December 11, 2001. Cost-cutting comes at the expense of tasty breakfast treats. • “Ernst & Young Cutting Consulting Jobs,” The New York Times, February 3, 2000. E&Y says good-bye to 5 percent of its consulting workforce. • “How Ernst & Young Gave Birth to a Law Firm,” American Lawyer Media, November 11, 1999. The formation of McKee Nelson Ernst & Young raises eyebrows in the legal and accounting professions. • “Accounting Giants Lead the Consulting Boom,” Accounting Today, September 6, 1998. Some numbers and insight on the Big Five’s grip on the consulting biz. • “Help from Cyberspace: On-line Consulting may Change the Industry.” The Sacramento Bee, July 8, 1998. Hello, Ernie! A useful profile of E&Y’s online service and other technological initiatives. • “KPMG Won’t Merge with Ernst & Young; Cancellation Blamed on Global Regulators.” The Washington Post, February 14, 1998. Sad but true, the marriage was called off at the altar.

Looking for a new challenge? The Vault Consulting Job Board has thousands of top jobs for all experience levels. Visit www.vault.com.

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