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PA Consulting Group

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PA Consulting Group
FormerlyPersonnel Administration
Company type
Founded1943; 81 years ago (1943)
Founders
  • Ernest E. Butten
    • Tom H. Kirkham
    • Dr David Seymour
Headquarters
London
,
UK
Number of locations
19[2]
Key people
  • Christian Norris, CEO
  • John Alexander, Chairman
Revenue£785m[3] (2022)
Number of employees
4,200 (2023)
Websitewww.paconsulting.com

PA Consulting Group (formerly Personnel Administration) is a professional services firm that works with public, private and third-sector organisations. It was founded in 1943 by Ernest E. Butten, Tom H. Kirkham and Dr David Seymour, who used a new approach to people management to increase productivity in munitions factories during World War 2. PA grew to become the world’s largest management consultancy by headcount in 1970.[4]

Today, PA employs more than 4,000 people globally.

PA works with organisations in seven industries: consumer and manufacturing; defence and security; energy and utilities; financial services; public services; healthcare and life sciences; and transport. It operates in these industries from offices in the UK, US, Ireland, Nordics and Netherlands.[2] It is also a member of the United Nations Global Compact, a non-binding UN pact that encourages businesses to adopt sustainable practices, and the WePROTECT Global Alliance,[5] a network of governments and companies aiming to tackle online child exploitation and abuse. PA produced the first two Global Threat Assessments for WePROTECT.[6][7]

The company is privately held, with 65% of shares owned by Jacobs Solutions and the remaining 35% owned by current and former employees.[1] Staff can buy shares during an annual share-trading period.

History

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1940–1950

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PA was founded in 1943 as Personnel Administration by Ernest E. Butten, Tom H. Kirkham and Dr David Seymour. Britain's war effort created great demand for munitions and goods, which had to be produced by a relatively unskilled workforce. Butten and his colleagues formed Personnel Administration Limited to provide advice to industry as to how to improve the productivity of their workers.[4][8] PA was an offshoot of the pre-war Bedaux Company.[9] Bedaux in turn had been developed based on the 'scientific management' theories of Frederick Winslow Taylor and Frank Gilbreth. Butten sought to take the mechanistic and task-orientated concepts of scientific management and add a human dimension to them. The chief idea, along the lines of Douglas McGregor's 'Theory Y', was that by involving the worker in the process of change and a suitable form of ownership, greater gains could be made both by the worker and the organisation.[10]

PA's first assignment was to train volunteer women to assemble the tail gun section of Avro Lancaster bombers, as part of Britain's policy of bringing women into the factories to free up male workers for the armed forces.[8][11]

1950–1970

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By 1964, PA had dropped the name Personnel Administration and was known as simply PA Consulting Group.[12] PA expanded and, by 1970, was the world’s largest management consulting firm by headcount.[13] PA had also expanded geographically, mostly along the lines of the Commonwealth, with its operations in Australia providing about a third of the firm's revenue.[4]

Butten retired from PA in 1970, having earlier sold his 100% shareholding in PA to the Butten Trust in 1958. The Trust was intended as a long-term guardian of PA's fortunes and an assurance that the company would be 'owned by the employees'.[14]

1970–1992

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During this period, PA found success in advising companies on potential applications of technology to business issues. This led to them building technology centres in Melbourn, UK, and Princeton, USA.[4]

Towards the end of the '80s, PA's management took the firm public. The Butten Trust, after an application to the courts in the UK, agreed to give 15% of its shares to its employees. However, the company changed its strategy after 1992 to one of staff ownership.

1992–2015

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Between 1991 and 1994, PA reduced its workforce by almost half. In 1992, Jon Moynihan was appointed as chief executive of PA.[15][16]

Jeremy Asher became group CEO in 1998.[17][18] The firm acquired Hagler Bailly Inc. in 2000 for around $96 million in cash.[19]

Government figures released in 2010 showed that PA was the second largest beneficiary of UK Government contracts to consulting firms, receiving £11million over the first year of the coalition.[20] It has gained publicity for its work on analysing what it has called the zombie economy.[21][22] Other work includes its annual survey of opinion in higher education,[23] and ongoing technological innovations, including a new type of round kitchen towel.[24]

On 31 December 2013, Jon Moynihan retired as executive chairman,[25] and was replaced by Marcus Agius, the former chairman of Barclays Bank.[26] In March 2014 the company launched a new logo (the third in its history), a new visual identity and redesigned website.[27] Also in March 2014, Health Select Committee member Sarah Wollaston MP questioned PA Consulting's uploading of a pseudonymised extract of Hospital Episode Statistics to Google BigQuery.[28][29] The Health and Social Care Information Centre confirmed that PA had used the data in accordance with the information sharing agreement in place.[29][30]

2015–present

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In 2015, The Carlyle Group bought a majority stake in the company, giving it a value of US$1 billion.[31][32]

In October 2017, PA relocated its global corporate headquarters.[33]

In April 2018, PA's chairman, Marcus Agius, announced he would step down and assume the role of deputy chairman, with John Alexander replacing him. Alexander made the move from environmental and sustainability consultancy ERM, where he took the company through two rounds of private equity funding.[34] In December 2018, PA announced it was appointing a new head of its Americas business, Ken Toombs.[35] The group announced Ken Toombs as CEO in October 2020, following on from Alan Middleton who stepped down after 13 years as CEO of the consultancy.[36]

In November 2020, PA’s board announced its recommendation to accept a proposal by Jacobs Solutions to acquire a 65% stake in PA. Following a vote by PA shareholders and UK Court approval, the deal was finalised on 2 March 2021, valuing PA at £1.825 billion.

In 2021, John Cala joined PA's business in the Americas.[37] In 2022, PA appointed a new chief financial officer and chief information officer, and created new roles for a chief research officer, head of alliances, platforms and products, and head of markets. Chartered Accountant Will Lambe joined as CFO, moving from KPMG,[38] while Kelly Olsen joined as CIO.[39] Charlene Li, co-author of Groundswell and founder of Altimeter, became chief research officer.[40] Rina Ladva joined the firm as head of alliances, platforms and products, making the move from Microsoft.[41] And Tracey Countryman took on the role of Head of Markets, joining PA from Accenture.[42]

In 2023, Christian Norris was named as CEO.[43]

Technology and innovation

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Remote-control "Panama" Land Rover with ground-penetrating radar to detect IEDs followed by Mastiff with Choker mine rollers

PA has a strong focus on technology dating back to its work with the earliest computers in the 1950s.[4] Its Global Innovation and Technology Centre, designed by Richard Rogers and founded by Professor Gordon Edge in 1970,[44] helped create the Cambridge Phenomenon where the city became a centre for the UK’s technological companies.[45]

Innovations developed at the centre over the past 50 years include: the original brushless servo motor; medical injectors that mean the patient does not need to see the needle; a self-monitoring device for people with diabetes that measures blood glucose levels; micrometers; and 4G wireless test equipment.[8] During the Iraq War, PA developed the "Panama System" to protect UK troops from improvised explosive devices, winning the Management Consultancies Association's top prize for innovation.[32][46]

EV chargepoint concept designed by PA Consulting with the Royal College of Art for the UK Government

More recently, the Centre designed a prototype electric vehicle charging point that aims to be “as recognisable as the red post box or black cab” with the Royal College of Art for the UK Government;[47] developed the manufacturing equipment needed to mass produce edible water bottles for Notpla;[48] and helped build the world’s biggest battery in California with Vistra Energy.[49]

PA ventures

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PA's venture programme (PA Group Ventures) was established in 2000.[50]

Ventures include a third-generation mobile phone business called UbiNetics that was sold for a total of $133 million in 2005;[51][52] and Meridica – a drug delivery system company – that was sold to Pfizer for $125 million in 2004.[53] PA demerged its venture arm, Ipex Capital, in June 2008.[54]

Other recent ventures include:

Exacsys, which develops solutions to improve Point of Care (PoC) diagnostic systems. One application of this technology is the self-monitoring of blood glucose (SMBG) to help people manage their diabetes.[8]

ProcServe, which provides a cloud-based procurement system. The ProcServe Trading Network covers more than 17,000 organisations and is used by central government, and the National Police Procurement Hub, as well as commercial sector customers including Orange and Xerox.[55]

Argenti, a business that innovates telecare technology in partnership with local councils in the UK to improve adult social care.[56]

References

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  1. ^ a b "PA Consulting press release". PA Consulting. Retrieved 26 September 2023.
  2. ^ a b "About us". PA Consulting. Retrieved 30 March 2022.
  3. ^ "PA Consulting report and accounts 2022" (PDF). PA Consulting. Retrieved 12 April 2022.
  4. ^ a b c d e The story of the PA Consulting Group 1943-1992’, Christine Jackson and Mark Smalley
  5. ^ "Private sector". WePROTECT Global Alliance. May 2014. Retrieved 18 March 2022.
  6. ^ "WeProtect Summit and report". PA Consulting. August 2017. Retrieved 3 March 2020.
  7. ^ "WeProtect Global Threat Assessment". PA Consulting. November 2019. Retrieved 3 March 2020.
  8. ^ a b c d Pagano, Margareta (30 January 2011) A perfect partnership between the geeks and suits The Independent
  9. ^ Kipping Matthias Management Consultancies and Organizational Innovation in Europe in Pérez, Paloma Fernández and Rose, Mary (Eds) Innovation and Entrepreneurial Networks in Europe p.66, Routledge, 2009. ISBN 1135213801
  10. ^ Ernest Butten Obituary - The Times (London, England), Tuesday, 26 March 1985; pg. 14; Issue 62096.
  11. ^ Power, Helen (15 August 2008) Britain's biggest private companies: Expertise at your service The Daily Telegraph
  12. ^ The Times Monday 1 June 1964, p.19, Issue:56026
  13. ^ Hill, Andrew (11 November 2013) Change ripples through fish tank FT.com
  14. ^ The Times, 26 March 1985, Ernest Butten obituary
  15. ^ Inspirational Chief works wonder for PA Consulting, Sunday Times 7 March 1999
  16. ^ Hill, Andrew (22 December 2013) Jon Moynihan, the consummate consultant FT.com
  17. ^ 2 November 1999 (Tewksbury) PROFILE: JEREMY ASHER - This man enjoys watching his employees run in accountancyage.com
  18. ^ Jeremy Asher - Executive Profile Business Week | Tower Resources Plc
  19. ^ (20 June 2000) Company News; Hagler Bailly agrees to purchase by PA Consulting The New York Times
  20. ^ Hope, Christopher and Quilty-Harper, Conrad (19 November 2010) Coalition spends more than £200m on consultants, PR and marketing The Daily Telegraph
  21. ^ (13 November 2012) 'Zombie' companies eating away at economic growth BBC News Online
  22. ^ Ahmed, Kamal (7 November 2009) Zombies are lurking on every high street The Daily Telegraph
  23. ^ Garner, Richard (24 June 2013) Up to 30 universities 'could close or face merger' because of government reforms and dwindling student numbers The Independent
  24. ^ Chapman, Jenny (11 December 2012) Brains Factory - from bomb disposal . . . to paper towels Cambridge News
  25. ^ (10 June 2013) UPDATE: PA Consulting Group Executive Chairman Jon Moynihan Announces Plan to Retire Yahoo! Finance
  26. ^ Quinn, James (20 November 2013) Aguis to Chair PA Consulting The Daily Telegraph
  27. ^ (4 March 2014) PA celebrates 70 years of innovation with new logo re-branding theconsultant.eu
  28. ^ Ramesh, Randeep (3 March 2014). "NHS England patient data 'uploaded to Google servers', Tory MP says". The Guardian. Retrieved 19 February 2018.
  29. ^ a b Sharwood, Simon (4 March 2014). "Triple-headed NHS privacy scare after hospital data reach marketers, Google". The Register. Retrieved 19 February 2018.
  30. ^ "Statement: Use of data by PA consulting". Health and Social Care Information Centre. 3 March 2014. Retrieved 19 February 2018.
  31. ^ Becker, Nathan (29 September 2015). "Carlyle Takes 51% Stake in U.K.'s PA Consulting". Wall Street Journal. ISSN 0099-9660. Retrieved 18 May 2016.
  32. ^ a b Gwyther, Matthew. "Why private equity firm The Carlyle Group bought PA Consulting". Management Today. Retrieved 18 May 2016.
  33. ^ "PA Consulting Group relocates headquarters to 10 Bressenden Place". PA Consulting. 9 October 2017. Retrieved 3 March 2020.
  34. ^ "Marcus Agius Announces His Intention to Move From Chairman of PA Consulting Group to Deputy Chairman". PR Newswire. 3 April 2018. Retrieved 3 March 2020.
  35. ^ "Veteran consulting exec Ken Toombs to lead PA Consulting's Americas team". Consultancy.org. 19 December 2018. Retrieved 3 March 2020.
  36. ^ "Ken Toombs named Chief Executive Officer of PA Consulting". www.consultancy.uk. 5 October 2020. Retrieved 8 October 2020.
  37. ^ "John Cala joins PA Consulting as Americas leader". www.consulting.us. 12 November 2021. Retrieved 25 March 2022.
  38. ^ "PA Consulting welcomes Will Lambe who joins PA today as its new Chief Financial Officer". paconsulting.com. 15 March 2022. Retrieved 25 March 2022.
  39. ^ "PA Consulting names Kelly Olsen as Chief Information Officer". www.consultancy.uk. 26 January 2022. Retrieved 25 March 2022.
  40. ^ "Charlene Li joins PA Consulting as chief research officer". www.consulting.us. 15 March 2022. Retrieved 25 March 2022.
  41. ^ "Rina Ladva named Global Head of Alliances at PA Consulting". www.consultancy.uk. 21 February 2022. Retrieved 25 March 2022.
  42. ^ "PA Consulting welcomes Tracey Countryman as Head of Markets". paconsulting.com. 23 March 2022. Retrieved 25 March 2022.
  43. ^ "Norris takes reins at burgeoning PA Consulting". Business Weekly UK. 30 August 2023.
  44. ^ Professor Gordon Edge - 1990 Archived 23 August 2015 at the Wayback Machine brunel.ac.uk - Brunel People
  45. ^ Quested, Tony (12 June 2013) Cambridge Tech Consultancies Rule the World businessweekly.co.uk
  46. ^ Baxter, Andrew (12 November 2012). "'Panama': Groundbreaking project aids UK troops". Financial Times. ISSN 0307-1766. Retrieved 18 May 2016.
  47. ^ Wong, Henry (10 November 2021). "SeUK government unveils EV chargepoint design in electrification push". Design Week. Retrieved 18 March 2022.
  48. ^ Sweeney, Kate (16 May 2018). "Seaweed extract drink containers designed to end plastic bottles shame". Business Weekly. Retrieved 15 June 2020.
  49. ^ "PA Consulting appoints clean energy expert Aris Karcanias as global head of energy and utilities". Consulting Point. 3 February 2020. Retrieved 18 March 2022.
  50. ^ Advisers harness home-grown ideas,. Financial Times 1 September 2005
  51. ^ (25 May 2005) UbiNetics test arm sold to Aeroflex electronicsweekly.com
  52. ^ (28 July 2005) CSR buys 3G software firm Ubinetics electronicsweekly.com
  53. ^ (23 September 2004) COMPANY NEWS; PFIZER ACQUIRES REST OF MERIDICA FOR $125 MILLION The New York Times
  54. ^ Hill, Andrew. "Jon Moynihan, the consummate consultant". Financial Times. ISSN 0307-1766. Retrieved 18 May 2016.
  55. ^ "Digital procurement 'could save councils millions'". www.localgovernmentexecutive.co.uk. Local Government Executive. Retrieved 18 May 2016.
  56. ^ Haynes, Luke (18 October 2018). "Talking Alexa: how assistive technology can help adult social care services". Community Care. Retrieved 16 June 2020.
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