Simon-Kucher & Partners has kicked off 2016 on a high – the management consultancy generated revenues of €116 million in the first six months, up 19% on the previous year. The firm added two new offices – in Hamburg and Stockholm – taking its total to 33 locations in 23 countries, and saw its workforce grow to 930 permanent professionals.
Founded in 1985, in Germany, Simon-Kucher & Partners has been on a roll in the past decade, a feat which has seen the consultancy win several awards and accolades and earned it the reputation of one of the consulting industry’s global ‘jewels’. Back in 2000, the firm had a revenue of €24 million, by 2010 it had grown its fee income to €105 million, and last year, in 2015 it celebrated its 30th anniversary, it closed the year with a revenue stream of €209 million.
At the start of 2016 Klaus Hilleke and Georg Tacke, the co-CEOs of Simon-Kucher & Partners, unveiled that 2016 was planned for to be another record-breaking year, with a target of €240 million earmarked. The firm’s results for the first six months reveal that the strategy and sales & marketing specialist is performing well on track. H1 ended with a revenue of €116 million, just about half the target, and the firm currently boasts incoming orders of €130 million, highlighting that, if all goes according to plan, Hilleke and Tacke can safely bet on reaching their objective by year's end.
In line with the overall market trend in the advisory landscape, digital is a key driver of Simon-Kucher’s growth. “Whether through the Internet of Things, the drastic increase in online sales channels, or the FinTech revolution in banking – in all areas companies are being forced to renew their traditional revenue models and make these future-proof. This is where we come into play, since it has been our specialty for over thirty years,” reflects Hilleke.
Similar to previous quarters, Simon-Kucher’s US business contributed extensively to the strong half-year result, with growth of 30% booked, in particular reaped by the firm’s West Coast operations. To accommodate for the growing demand, the management consultancy recently opened a second office in Silicon Valley – the firm now has hubs in San Francisco and Mountain View.
Asked for what he sees as the main success factor behind clients’ growing desire to turn to Simon-Kucher, Tacke points at the firm’s capability to translate strategy into bottom-line results. “Sheer growth in customer numbers without paying attention to profit is no longer sufficient for investors. They increasingly want to see profitable growth. We help companies to fully monetise innovative ideas."
Commenting on the impact of the Brexit, Hilleke says that he do not expect a major impact on projects, if anything quite the opposite. “Many of our clients are feeling uncertain about the new situation. Here too we can offer support and, for instance, develop successful reactive strategies for a weak British pound,” he concludes.