Culture clash, company crisis, and a comeback

Acquisition, buyback, and reconnecting the dots

1995 EDS acquires A.T. Kearney, Inc.
2002 A.T. Kearney Procurement Solutions is formed
2006 Kearney completes management buyout
2008 Receives Excellence in Diversity award from Consulting magazine
2010 Achieves goal of becoming carbon neutral
2011 Receives Consulting magazine’s Best Firm to Work For award for fourth consecutive year
2014 One of 100 Best Companies on Working Mother’s list
2016 Celebrates 90th anniversary
2016 Grows strategic relationship with the World Economic Forum, advising on global platforms and regional agendas
2018 Reinvigorates presence in Middle East and Africa region
2019 Acquires Cervello, a business analytics consultancy
2020 A.T. Kearney becomes, simply, “Kearney”
2021 Acquires Prokura, a consulting firm of procurement specialists
2021 Caps four years of Kearney’s best performance ever

Of course, hyper growth comes with its own challenges, including the need to adapt quickly to new capability requirements, and maintaining a favorable cash position. By 1995, it was unclear how the firm would tackle either of these hurdles.

And then things took an unexpected turn.

Electronic Data Systems Corporation (EDS), an IT services giant, bought Kearney in a 50/50 cash/stock deal. It had the IT expertise the firm was lacking, and deep enough pockets to invest in infrastructure. It was also keen to expand its presence in the consulting market. The merger worked well for the first few years, doubling the size of the consultancy and expanding its technology capabilities, notably in procurement analytics.

However, within 10 years a growing culture clash threatened the partnership. With the end of the dotcom boom, revenues started shrinking and cost pressures intensified, damaging relationships further. A small group of firm leaders proposed a management buyout—a gutsy move, but one that they knew was necessary for Kearney’s future success. They negotiated terms with EDS, and ultimately convinced the firm’s 177 global partners in 26 countries that reclaiming their company was the next best step.

At the time—November 2005—the firm had 2,500 employees in 47 offices. The company was by no means a start-up. But the buyout felt very much like starting from scratch.

In fact, the breakup paved the way for a breakout, and after regaining its independence, Kearney emerged with new confidence. Revenues increased by 50 percent, the global footprint expanded to Latin America, and the awards started flowing in. In 2016, the firm celebrated its 90th anniversary as one of the original consulting firms, while targeting new capabilities that would move the business forward. In 2019, Kearney secured its leading place in a now rapidly evolving and technology-driven consulting arena by acquiring Cervello, an elite business analytics and data management firm.

With the firm rejuvenated and looking ahead to the future, the turn of a new decade was an appropriate moment to reflect on how it should position itself, both out in the market and internally. Much had changed and evolved over the years, and there was a growing desire to represent not only its heritage, but its present and future potential.

And so in 2020, the company that had traded on the name of its first managing partner for so long shortened its name to Kearney, and refreshed its brand to reflect what clients have always known about it: that its consultants work side by side with them in a real and relatable way that other firms can’t match, making the transformation journey straightforward and enjoyable, and ultimately achieving their standout success. At the same time, it made the bold move to replace stock photography with crowdsourced imagery from Kearney colleagues, to recognize the global family of employees, alumni, and friends who make the firm what it is.