Simon-Kucher with Rapid Growth Again

Now over 400 employees worldwide

Bonn, January 18, 2008 –Simon-Kucher & Partners reports a record growth of 25.3 percent for 2007. Turnover increased from 64 to over 80 million Euros. In the autumn of 2007, the number of employees exceeded 400 for the first time, up from 311 consultants in the previous year. On January 1, 2008, four new partners were appointed, bringing the total to 37. Nearly half are based outside of Germany, with ten in the United States alone.

Simon-Kucher is now ten times larger than in 1995, corresponding to an annual growth rate of 21 percent. Such growth is called for in comparison to better-known consultancies. 2007 was the 23rd year for Simon-Kucher & Partners. Simon-Kucher has more employees than Boston Consulting Group (BCG) – the most successful firm founded in the post-war era – did at this same point in time. 23 years after its start, BCG employed 308 consultants; Simon-Kucher has 330 consultants (as well as 73 additional employees). This success story confirms that consulting firms with origins outside the U.S. can also globalize rapidly and profitably. Furthermore, this growth was achieved organically, without takeovers of other companies.

Today, Simon-Kucher has 15 offices in 12 countries. Following the most recent opening of the Madrid office, new locations to be opened in 2008 include Luxembourg, Moscow, Amsterdam and Brussels. “We would like to grow even more rapidly, since our clients increasingly demand a global presence,” said Chairman Hermann Simon. However, current employee growth presents a bottleneck.

The release of the book “Hidden Champions of the 21st Century” in the fall of 2007 has proven critical for the increasing the public awareness of Simon-Kucher & Partners. “The larger companies were familiar with us already, but now the mid-sized companies are also turning to us as competent strategy consultants,” explains Professor Simon. On the other hand, in every new country, creating such awareness has to begin from scratch. Building a global consultancy requires two generations, according to Simon.

Simon attributes the successful growth to the same clear strategy that reflects the phenomenon he observed with the little-known world market leaders – the so-called “Hidden Champions.” This strategy connects focus with globalization. Simon-Kucher concentrates on revenue-driven profit growth, meaning strategy, marketing, sales and pricing. The company does not take on cost cutting and restructuring projects. This consistent focus comes to light in the new slogan “Smart Profit Growth.” For years, Simon-Kucher has proven to be the unrivalled world market leader when it comes to pricing advisory. Proving this solid focus, Simon-Kucher came in first place in a study carried out by the German Manager Magazine (August 2007) that ranked the “marketing and sales consultancies.”

“Unfortunately, there have also been types of awareness that I would rather do without,” reports Simon. In China, a consultancy operates under the name Simon-Kucher, using its logo and homepage address and pretending to be a regional office of the company. At the moment Simon is in the process of fighting this malpractice. “It is not easy,” he says. “However, the further globalization of Simon-Kucher will not be halted by such obstacles.”