Kearney Merger with Eds Case

I. Statement of the Problem

How can information technology (IT) expertise be harnessed from Electronic Data Systems (EDS) to complement the global management consulting practice of A.T. Kearney while forming one new cohesive and dynamic consultancy practice?

Summary of Facts

Kearney located in Chicago, Illinois was purchased by Ross Perot’s Electronic Data Systems (EDS) in 1995. The new combined entity was believed by EDS to provide one place for clients to receive a broader range of solutions than previously provided by either entity operating alone. Senior executives surveyed by A.T. Kearney representing the top 1000 global concerns revealed the following conclusions:

* Technology has been integrated into business strategy.

* Technology investments will increase.

* Corporations are embracing the philosophy of restructuring and reengineering.

* Senior management is becoming technology-literate as, across all industries, major corporations increasingly view themselves as “technology-oriented companies.”

* Senior management expresses satisfaction with return on technology investment, even in the absence of precise measurements.

This corporate merger occurred when there existed tremendous volatility in the management consultancy world, Kearney’s CEO, believed that billable hours for management consultancy could double by the year 2000 for the industry as a whole.

The buyout by (EDS) of Kearney with its subsequent absorption into the new parent company was a bold and aggressive move in 1995.

Kearney’s CEO believed that future growth in quality, productivity, market share and profits were a function of (IT) adoption to secure a competitive advantage in the global market.

Transformative changes in the management consultancy industry in 1995 were caused by trends as follows:

* The convergence of telecommunications, technology, and information services, dramatically altering the structure of business and how...