Boston Consulting Group

The firm was founded in 1963 as part of The Boston Safe Deposit and Trust Company. Bruce Henderson had been recruited from Arthur D. Little to establish the consulting arm operating as a subsidiary under the name Management and Consulting Division of the Boston Safe Deposit and Trust Company. Initially the division only advised clients of the bank, with billings for the first month at just US$500. Henderson hired his second consultant, Arthur P. Contas, in December 1963.{{cite news|url=https://www.nytimes.com/1992/07/24/us/bruce-henderson-77-consultant-and-writer-on-business-strategy.html|title=Bruce Henderson, 77, Consultant And Writer on Business Strategy|work=The New York Times|date=July 24, 1992|access-date=13 April 2020|last1=Hayes|first1=Thomas C.}} In 1966, BCG opened its second office in Tokyo, Japan.{{cite web |title=Tokyo 2020 welcomes Boston Consulting Group K.K. as Official Supporter |url=https://tokyo2020.org/en/news/tokyo-2020-welcome-the-boston-consulting-group-k-k |website=Tokyo 2020 |access-date=6 August 2020}}

In 1967, Henderson met Bill Bain and offered him a role at the firm. Bain agreed and joined in 1967 at a starting salary of $17,000 per year.{{cite news |last=Gallese|first=Liz Roman|url=https://www.nytimes.com/1989/09/24/magazine/counselor-to-the-king.html |title=Counselor To The King |work=The New York Times |date=September 24, 1989|access-date=August 10, 2019}}{{cite news |url=http://www.naplesnews.com/news/2008/jan/28/dinners7/ |title=Wine Festival 2008: McNulty/Bain |work=Naples Daily News |date=January 28, 2008|access-date=August 10, 2019|archive-url=https://web.archive.org/web/20121030102217/http://www.naplesnews.com/news/2008/jan/28/dinners7/|archive-date=October 30, 2012|url-status=dead}}{{cite web|url=https://www.wsj.com/articles/william-bain-jr-founded-consulting-and-private-equity-firms-and-groomed-mitt-romney-1516236137|work=The Wall Street Journal|title=William Bain Jr. Founded Consulting and Private-Equity Firms, and Groomed Mitt Romney|date=January 17, 2018|first=James R.|last=Hagerty|access-date=August 10, 2019}} In the early 1970s, Bain was considered internally to be Henderson's eventual successor. However, in 1973 Bain resigned from BCG to start his own strategy consulting firm, Bain & Company, hiring away six of BCG's employees.

In 1974, Henderson arranged an employee stock ownership plan so that the employees could make the company independent from The Boston Safe Deposit and Trust Company. The buyout of all shares was completed in 1979.{{cite book|last=Gant|first=Tina|title=International Directory of Company Histories|date=December 2003|publisher=St. James Press|isbn=978-1-55862-503-7|url=http://www.fundinguniverse.com/company-histories/the-boston-consulting-group-history/|access-date=13 April 2020}}

In the 1970s, BCG created and popularized the "growth–share matrix," a chart to help large corporations decide how to allocate cash among their business units. The corporation would categorize its business units as "Stars," "Cash Cows," "Question Marks," or "Dogs," and then allocate cash accordingly, moving money from "Cash Cows" toward "Stars" and "Question Marks," which have higher market growth rates and hence greater upside potential.{{cite web |title=What Is a BCG Matrix? |url=https://www.businessnewsdaily.com/5693-bcg-matrix.html |access-date=19 April 2020 |publisher=businessnewsdaily.com}}{{main|Growth–share matrix}}

In the 1980s, BCG introduced the concept of time-based competition that reconsidered the role of time management in providing market advantages. The concept was the subject of an essay in the Harvard Business Review.{{cite magazine |last=Stalk Jr.|first=George|title=Time-The Next Source of Competitive Advantage|url= https://hbr.org/1988/07/time-the-next-source-of-competitive-advantage

|magazine=Harvard Business Review|location=Brighton, Massachusetts|date=July 1988 |access-date=2022-11-01}}

In May 2021, the firm elected Christoph Schweizer as CEO, replacing Rich Lesser who would step down and serve as the firm's Global Chair. {{Cite web |date=2023-05-21| title= Boston Consulting Group Elects Christoph Schweizer as Next Chief Executive Officer |url= https://www.bcg.com/press/bcg-announces-new-chief-executive-officer-christoph-schweizer |language=en}}

In 2022, Boston Consulting Group released its "2022 Annual Sustainability Report" highlighting numerous initiatives focused on societal and planetary impact. Since 2015, the progress in numbers is 30% less greenhouse gas emissions, 20% less water usage, 15% less waste generation, and 10% less energy consumption. {{Cite web |date=2023-04-25 |title=BCG's 2022 Sustainability Report: Growth, impact & action |url=https://sustainabilitymag.com/articles/bcgs-2022-sustainability-report-growth-impact-action |access-date=2023-04-28 |website=sustainabilitymag.com |language=en}}

image:growthsharematrix.pngBCG typically hires for an associate or a consultant position, recruiting from top undergraduate colleges, advanced degree programs and business schools.{{cite web|url=https://www.cosmopolitan.com/career/interviews/a33390/interview-insider-boston-consulting-group-bcg-career-jobs/|title=Interview Insider: How to Get Hired at the Boston Consulting Group|date=November 20, 2014|publisher=cosmopolitan.com|access-date=15 April 2020}}

In December 2022, BCG consolidated many of its alternative business units under a single entity, branded as BCG X.{{cite web|url=https://www.bcg.com/press/1december2022-bcg-x-new-hybrid-of-consulting-and-tech-build-design-capabilities|title=BCG Creates BCG X as New Hybrid of Consulting and Tech Build & Design Capabilities}} This included several business units focused on providing digital and technology-related consulting services for clients:

• BCG Gamma specializes in data science projects, including advanced analytics, machine learning and AI, alongside BCG's traditional consulting services.{{cite web|url=https://www.bcg.com/beyond-consulting/bcg-gamma/overview |title= BCG GAMMA: Making AI Real for Business}}

• BCG Digital Ventures partners with companies to invent, launch, and scale new products and services.{{cite web |url=https://www.bcgdv.com |title=BCG DV}} Ware2Go (a logistics platform developed with United Parcel Service), Tracr (a blockchain-based supply chain tracker developed with De Beers) and OpenSC (a supply chain tracker developed with the World Wide Fund for Nature) are projects backed by BCGDV.{{cite web |url=https://www.wired.co.uk/article/food-supply-chains-blockchain-wwf|title= The WWF backs blockchain to unpick messy food supply chains |last= Chhabra |first= Esha|date= January 31, 2019 |website= Wired.com|publisher= Wired |access-date= January 17, 2020|quote=Funded by BCG Digital Ventures, an investment and incubation arm of Boston Consulting Group, OpenSC is designed as a self-sustaining “profit-for-purpose” venture.}}{{cite web |url=https://www.reuters.com/article/us-australia-food-tracking-idUSKCN1PH150|title= From bait to plate: Blockchain platform tracks food's journey |last= Redmayne |first= James|date= January 23, 2019 |website= Reuters.com |publisher= Reuters |access-date= January 17, 2020|quote=OpenSC evolved from a WWF-led project that used blockchain to track tuna caught in the Pacific Ocean. BCG Digital Ventures was brought in to help build the platform.}}{{cite web |url=http://www.miningweekly.com/article/signet-joins-de-beers-blockchain-platform-tracr-2018-05-24/rep_id:3650|title= Signet joins De Beers' Tracr blockchain platform pilot |last= Kilian |first= Annie|date= May 24, 2018 |website= miningweekly.com |publisher= Mining Weekly |access-date= January 17, 2020|quote=It is being developed by De Beers, with support from BCG Digital Ventures, and is expected to launch later this year.}}{{cite web |url=https://www.cnbc.com/2018/08/28/ups-launches-ware2go-a-platform-aimed-at-helping-small--and-medium-sized-businesses-expand.html|title= UPS launches Ware2Go, a platform aimed at helping small- and mid-sized businesses expand |last= Brennan |first= Morgan |date= August 28, 2018 |website= cnbc.com |publisher= CNBC |access-date= January 17, 2020|quote=Ware2Go will be based in Atlanta and is partially owned by BCG Digital Ventures.}}

• BCG Platinion specializes in technology and digital transformation consulting services.{{cite web|url=https://bcgplatinion.com/about-us/ |title= BCG Platinion - About Us}}

BCG Brighthouse is a consultancy focused on business purpose consulting.{{cite web|url=https://www.bcg.com/capabilities/business-organizational-purpose/overview|title= Business and Organizational Purpose Overview}}

The Henderson Institute is Boston Consulting Group's think tank named after Bruce Henderson, the founder of BCG. The institute's primary focus is on conducting research into strategic and managerial issues that impact businesses and the global economy.{{cite web|url=https://bcghendersoninstitute.com/about|title= About}}

The Centre for Public Impact is a not-for-profit organization within BCG that is focused on improving the impact and effectiveness of government and public sector organizations. This group works with governments, nonprofit organizations, and other public sector entities to help them achieve their goals and deliver better outcomes for citizens.{{cite web|url=https://www.centreforpublicimpact.org/about-us/what-we-do|title= What We Do}}

{{Criticism section|date=April 2025}}

An article published by The New York Times on January 19, 2020, identified the Boston Consulting Group as having worked with Isabel dos Santos, who exploited Angola's natural resources while the country suffers from poverty, illiteracy, and infant mortality.{{Cite news|last1=Forsythe|first1=Michael|last2=Gurney|first2=Kyra|last3=Alecci|first3=Scilla|last4=Hallman|first4=Ben|date=2020-01-19|title=How U.S. Firms Helped Africa's Richest Woman Exploit Her Country's Wealth|language=en-US|work=The New York Times|url=https://www.nytimes.com/2020/01/19/world/africa/isabel-dos-santos.html|access-date=2020-01-19|issn=0362-4331}} According to the article, BCG was contracted by the Angolan state-owned petroleum company Sonangol, as well as the jewelry company De Grisogono, owned by her husband through shell companies in Luxembourg, Malta and the Netherlands; the firm was reportedly paid through offshore companies in tax havens such as Malta.

The New York Times also reported that Boston Consulting Group is one of the consulting firms, along with McKinsey and Booz Allen, helping Crown Prince Mohammed bin Salman consolidate power in Saudi Arabia.{{Cite news|last1=Forsythe|first1=Michael|last2=Mazzetti|first2=Mark|last3=Hubbard|first3=Ben|last4=Bogdanich|first4=Walt|date=2018-11-04|title=Consulting Firms Keep Lucrative Saudi Alliance, Shaping Crown Prince's Vision|language=en-US|work=The New York Times|url=https://www.nytimes.com/2018/11/04/world/middleeast/mckinsey-bcg-booz-allen-saudi-khashoggi.html|access-date=2020-06-22|issn=0362-4331}} While a BCG spokesperson said the firm turns down projects involving military and intelligence strategy, BCG is involved in designing the economic blueprint for the country, a plan called Vision 2030.

In June 2021, BCG was hired to examine the feasibility for the country to host the 2030 FIFA World Cup. The bid was assessed to be a great deal, as FIFA's policy of continental rotation blocked all the Asian Football Confederation (AFC) nations from hosting the World Cup until 2034, after Qatar was set to become the first Middle Eastern nation to host the tournament in 2022.{{cite news|url=https://www.nytimes.com/2021/06/10/sports/soccer/saudi-arabia-world-cup.html|title=Saudi Arabia Mulls Bid for 2030 World Cup|accessdate=10 June 2021|website=The New York Times|date=June 10, 2021|last1=Panja|first1=Tariq}}

In 2024, BCG consulting heads were summoned to appear before congress to disclose financial details between them and Saudi Arabia and warned staff that they could face jail time if they reveal information.{{cite news| last1= Foley| first1= Stephen| last2= Cornish| first2= Chloe| date= February 6, 2024| title= McKinsey and BCG warn staff face jail if they reveal Saudi work| url= https://www.ft.com/content/7009a1a9-8e07-4113-a47d-ee4724d3d427| work= Financial Times| access-date= June 6, 2024}}

Boston Consulting Group has received criticism for its involvement in the construction of the New Karolinska Solna University Hospital after an investigation by Dagens Nyheter. Specifically, the potential conflict of interest where a former BCG employee and then hospital executive approved numerous expenses without proper receipts and the high cost paid for external consultants including BCG.{{cite news |last1=Knoxborn |first1=Ellinor |title=Skandalerna som kantat Nya Karolinska |url=https://www.svt.se/nyheter/lokalt/stockholm/nks |work=Sveriges Television |date=4 September 2018|access-date=2020-08-21|language=sv}} In the investigative journalism book Konsulterna - Kampen om Karolinska (roughly The Consultants - The Struggle for the Karolinska University Hospital), the authors and Dagens Nyheter journalists Anna Gustavsson and Lisa Röstlund argue that the value-based health care model as recommended by BCG had not been properly investigated and have resulted in an exponential growth in administration and lack of responsibility for patients.{{cite book |last1=Gustafsson |first1=Anna |last2=Röstlund |first2=Lisa |title=Konsulterna : Kampen om Karolinska. |date=2019 |publisher=Mondial |isbn=9789189061217 |pages=20 |language=sv |chapter=1. Kapningen}}

In 2022, BCG filed a lawsuit against GameStop as the latter allegedly denied payment of fee worth $30 million for a project. GameStop argued that it saw it is in the best interest of its stakeholders to deny payment as BCG brought little improvement to the EBITDA of the company, which the consultancy allegedly promised to improve. BCG counter argued that the company has delivered more than it promised in statement of proposal and that the quoted variable fee was based on the "projected," not realized, improvement in EBITDA, as per the contract. {{cite web | url=https://arstechnica.com/tech-policy/2022/03/gamestop-stiffed-boston-consulting-group-on-30-million-in-fees-lawsuit-says/ | title=GameStop refused to pay $30 million bill from consulting firm, lawsuit says | date=March 24, 2022 }} On July 30, 2024 the suit was concluded in a joint dismissal. {{cite web | url=https://www.courtlistener.com/docket/63176382/239/the-boston-consulting-group-inc-v-gamestop-corporation/ | title=SO ORDERED, D.I. 238 Stipulation of Dismissal filed by The Boston Consulting Group, Inc. (CASE CLOSED) Signed by Judge Christopher J. Burke on 7/30/2024. (smg) (Entered: 07/31/2024) | date=July 31, 2024 }}

{{Main|Category:Boston Consulting Group people}}

• DICE framework
• B Capital

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Category:Consulting firms established in 1963

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