An introduction to the management basics The The Boston Consulting Group came up with several well-known strategic concepts under its inspirational founder Bruce Henderson.
The most famous is the Boston Matrix. Until the asses, models were the impenetrable domain of economists. The man who can be largely credited with bringing business models into the mainstream was Bruce Henderson (1915-92), an Australian engineer who worked as a strategic planner for General Electric. From GE, Henderson Joined the management consultancy A art hurt D. Lie TTT el.In 1963, he announced that he was leaving to set up his own consultancy, the Boston Consulting Group (BCC).
An engineering hybrid The first model discovered -? or in this case rediscovered -? by Henderson was something of an antique. In the asses, an obscure company called Curtiss Aircraft came up with the concept of the "learning curve", which also became known as the "experience curve". It posited that unit costs declined as cumulative proud CT ion increased because of the acquisition of experience. This had been applied solely to manufacturing. Henderson dimensions is straightforward but may beAt the time, management consulting was establishing itself as a profession.
BCC is regarded by some as the first purely strategic consultancy. While strategy drifts in and out of fashion, it is a cause which BCC still robustly champions. "Strategy leads to the continuous creation of real value. Real value requires sustained competitive advantage.
Leaping at opportunities without strategy consistently produces failure," it says. BCC quickly became a great success. Within five years it was in the top group of consulting firms -? where it has largely remained.F fem.
28 . AAA ASS applied it to strategy rather than production and found that it still worked and provided a useful practical tool. BCC went on to originate or develop concepts such as sustainable growth, time-based competition, Segment-of-One marketing, value-based strategy, total shareholder value and even disease management. However, the model for which Henderson and BCC are best known is the Boston Matrix, which measures market growth and relative market share for all the businesses in a particular company.