PwC's Diamond Advisory Services

Small but polished

With over 600 employees spread across six offices in the U.S., U.K. and India, Diamond Management & Technology Consultants is not one of the largest players in the world of consulting.  That said, it does operate in a niche market and has an enviable client list, having worked with the likes of Goldman Sachs, Morgan Stanley, American Express, Allstate, Pfizer, Bayer, CIGNA, Kraft, PepsiAmericas, the U.S. Department of Justice, Cadbury Schweppes, Barclays Bank and Royal Bank of Scotland.  The firm has undergone a couple of shifts in identity and focus since its founding in 1994.  Starting out under founder Mel Bergstein as Diamond Technology Partners, the firm also operated as DiamondCluster International before settling on its current identity in 2006, following the sale of one of its units.

Today's iteration works with Fortune 500 companies and covers industry practices such as consumer packaged goods, financial services, health care, insurance, logistics, manufacturing, public-sector organizations, retail and distribution, travel and transportation, and telecommunications.

Living the dot-com dream

The first of Diamond's incarnations came in 1994 when Mel Bergstein, a former partner and 20-year veteran of Andersen Consulting (now Accenture) set up a private company specializing in computer solutions for blue-chip clients.  Six years later, it boasted annual revenue of $136 million and opened its first international office in London.  That same year, in September 2000, it greatly expanded its foothold in Europe by agreeing on a $300 million merger with Barcelona-based Cluster Consulting.  The ensuing DiamondCluster, as the firm was renamed, had offices in France, Germany, Spain, the U.K. and the U.S.

Four years of sliding revenue from 2000 to 2004, as a result of the dot-com boom going bust, added to the expense and complexities of integrating two companies, meant this partnership was short-lived and the firm split in August 2006.  Mercer Management Consulting (now Oliver Wyman) bought the company's operations in France, Germany, Spain, Brazil and a new office in Dubai for a mere $30 million.  What was left of the firm after the buyout was renamed Diamond Management & Technology Consultants, the firm we know today.  At the same time, Bergstein stepped aside as CEO, clearing the way for co-founder Adam Gutstein to take over.

Facets and settings

The firm's financial services practice has traditionally been its biggest moneymaker, with clients including top investment banks and credit card brands, plus other capital markets firms, retail brokerages, asset managers, credit card issuers and processors, payment system operators and full-service retail and commercial banks.  The practice addresses issues such as adjustment to and assessment of new technology, information management strategies, productivity through strategic sourcing, profit improvement, compliance and risk management.

Diamond's insurance practice serves life, property and casualty, reinsurance and brokerage firms.  With the sector trending toward convergence of insurance, financial services and health care, Diamond advises insurance clients on a variety of issues related to growth and profitability.  It also addresses the opportunities created by a growing retirement population.

Diamond's health care practice works with pharmaceutical, biotech, device, health insurance, provider and disease management companies on such business and technology issues as consumer-directed health care strategy and execution, IT optimization and value extraction, integrated business and technology architecture, process and planning, and large transformational program management.  Marquee clients in this segment include Pfizer, Bayer and Aetna Life Insurance.

The enterprise practice has served clients of the stature of Kraft, Pepsi and Lowe's, and offers sales and operations planning, pricing, transformational technology platforms and data analytics to corporations in the manufacturing, retail, distribution, travel and transportation, and consumer packaged goods industries. 

Finally, the firm maintains a public-sector practice, working with U.S. local, state and federal government agencies to improve operational efficiency, boost responsiveness and tighten up security.  One Diamond partner, for example, recently returned to the firm after a one-year stint leading the development of the Federal Communications Commission's National broadband strategy.

A passage to India

Although Diamond's global aspirations suffered a major setback following the sell-off to Mercer Management, it hasn't stopped the firm from investing in emerging markets.  In 2006, it opened the Diamond Information & Analytics Center in Mumbai, designed to uncover areas of untapped growth and profitability for companies.  The firm also maintains an office there, opened in 2005, to serve local and international clients.

Drumming up business

As part of Diamond's efforts to keep its name in the public sphere and in front of potential clients, the consultancy regularly hosts events and conferences, and regularly publishes reports and white papers, which it calls Perspectives.  Moreover, several Diamond partner and practices regularly contribute to blogs, including the Harvard Business Review blog and CIO.com, and Diamond experts are frequently quoted in the media on a wide variety of business and technology issues.

Diamond also keeps its image shining brightly through its DiamondExchange program for executives and business leaders.  The forum, whose members come through invite only, explores the changing role of technology in business and helps member companies exploit that change.  The program includes workshops and city-based events throughout the year.

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PwC's Diamond Advisory Services


John Hancock Center, Suite 3000
875 North Michigan Avenue
Chicago, IL 60611
Phone: (312) 255-5000
Fax: (312) 255-6000
www.diamondconsultants.com

STATS


  • Employer Type: Subsidiary
  • Principal: Adam J. Gutstein
  • 2010 Employees: 600

Major Office Locations

  • Sao Paulo, Brazil
  • Chicago, IL
  • Boston, MA
  • New York, NY
  • Lisbon, Portugal
  • Madrid, Spain
  • Barcelona, Spain
  • London, United Kingdom
  • Paris, France
  • Munich, Germany
  • Dusseldorf, Germany
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Key Financials

  • 2010 Revenue: $177 million

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