Kurt Salmon Associates
Encyclopedia
Kurt Salmon is a global management consulting
firm specializing in the retail, consumer goods and health care sectors. The firm was among the first consulting firms established in the United States and remains among only a small handful in continuous operation since being founded in the early 1930s.
. Salmon was professionally educated at Chemnitz Textile University and visited the United States in 1930 at the urging of his father to gain experience in the emerging economy of the United States
. Although he did not originally intend to stay in the United States, he was favorably impressed with the culture and decided to stay on. After a series of engineering projects with two hosiery
companies, he formed his own consulting firm to redesign manufacturing
processes in the needle
trade. Although operated as a partnership, KSA was legally organized as a Delaware Corporation
owned solely by the principals of the firm.
and quality in client work. Salmon himself was a stickler for details, and this would become a fundamental part of the firm’s cultural fabric. One of the firm’s first hires was Karl Striegel, a engineer who would become Salmon’s primary partner in building the business. The two men worked closely together over the next 25 years as KSA expanded from a dozen to more than 200 professional staff.
By the 1960s KSA was the undisputed consulting leader in improving manufacturing operations in the soft goods industry sector. The firm had established the benchmark
standard of excellence in quality and impact of client results and had evolved a supportive internal culture of collegiality. Kurt Salmon personally set the tone for the culture and was instrumental in bringing both KSA and the industry sector the firm served up to new levels of professionalism and integrity
. Externally, Karl Striegel drove the commercial side of the business with clients and the overall results were outstanding. Many senior colleagues still recall this period as among the Golden Years of KSA.
The 1970s brought great changes to the firm. The manufacturing basis of the soft goods sector had been steadily migrating out of the United States to lower labor cost location, both in South America and in the Asia-Pacific. KSA’s U.S.-based practice in the operations
and manufacturing sectors increasingly lost relevance as this trend continued, and the firm shifted emphasis to retail, logistics
and sourcing
services to compensate, and also opened an office in Hong Kong. The 70s proved a time of strategic exploration as the new leadership team of Stig Kry, CEO, and Jack Ulman, president, sought to diversify KSA’s offering into new industry sectors. Despite forays into the hospitality
, mining, furniture and health care industries, the firm was unsuccessful at sustaining viable positions outside the soft goods sector. Coupled with the disastrous recession of 1970–71, the firm contracted greatly in revenue
s and profitability
. Before the decade had ended both Salmon and Striegel, the founding generation owners and the first two chairmen of KSA, had retired, marking the end of an era.
s planning and implementation, and developed expertise and alliances across a range of software such as SAP.
While KSA had made the transition from a single-offering engineering specialist to a top line management advisory practice, the internal financing of the firm did not advance at a comparable pace. The capital available from the Principals to finance global growth was limited and this resource base was further stressed by several costly expansion initiatives in the information technology implementation market. To compound matters, the KSA board voted to revalue the book stock of the company in 1999 and established a new formula value, further stressing the internal financing capability of the principals. Although the firm would continue to be privately owned under the new formula for several more years, it became clear the structure was not sustainable and the principals voted unanimously to sell KSA’s equity
to Management Consulting Group
or MCG in 2007. As part of the transaction the KSA Principals assumed a significant shareholding position in MCG, a publicly traded company on the London Stock Exchange
.
On 1 January 2011, KSA merged with Ineum Consulting
, another consultancy of MCG, to form Kurt Salmon.
Jerry Black, SVP and Director, Aeon
Howard Cooley, former CEO, Jockey
Alan Dabbiere, Chairman and CEO, Wandering WiFi, founder and former CEO, Manhattan Associates
Normand Gagnier, Director of Worldwide Manufacturing, Kimberly-Clark
Atiff Gill, COO and EVP, Metersbonwe
Thomas Heckler, Vice Chancellor, University of Oregon Health Sciences Center
James Hicks, former President, Polo for Boys
David Hitt, former CEO, Methodist Hospital Dallas
Javier Iruegas, CEO, Valley Medical Center El Paso
Bradley Morrison, PhD, Associate Professor, MIT
Shaz Kahng, Global Business Director, Nike
Philip Kowalczyk, President, Americas Region, The Body Shop, former COO, Talbots
Steven Nevill, EVP Merchandising Processes and Systems, Federated
Paul Raines, COO, GameStop, formerly EVP of US Stores, Home Depot
Richard Sawyer, Former Executive Director, American Hospital in Beirut
Steve Szilagyi, SVP Distribution, Lowe’s
Debra Wunner, Director, Global Product Marketing, Clinique
Irvine
Minneapolis, founded in 1947
New York
San Francisco, founded in 1983
San Bruno
Lyon, France
Marseille, France
Nantes, France
Paris
Düsseldorf
Rome
Leudelange, Luxembourg
Geneva
London, founded in 1956
Manchester, United Kingdom
Management consulting
Management consulting indicates both the industry and practice of helping organizations improve their performance primarily through the analysis of existing organizational problems and development of plans for improvement....
firm specializing in the retail, consumer goods and health care sectors. The firm was among the first consulting firms established in the United States and remains among only a small handful in continuous operation since being founded in the early 1930s.
Formation
The firm was officially founded as Kurt Salmon Associates (KSA) in 1935 by Kurt Salmon, a German immigrant from CologneCologne
Cologne is Germany's fourth-largest city , and is the largest city both in the Germany Federal State of North Rhine-Westphalia and within the Rhine-Ruhr Metropolitan Area, one of the major European metropolitan areas with more than ten million inhabitants.Cologne is located on both sides of the...
. Salmon was professionally educated at Chemnitz Textile University and visited the United States in 1930 at the urging of his father to gain experience in the emerging economy of the United States
Economy of the United States
The economy of the United States is the world's largest national economy. Its nominal GDP was estimated to be nearly $14.5 trillion in 2010, approximately a quarter of nominal global GDP. The European Union has a larger collective economy, but is not a single nation...
. Although he did not originally intend to stay in the United States, he was favorably impressed with the culture and decided to stay on. After a series of engineering projects with two hosiery
Hosiery
Hosiery, also referred to as legwear, describes garments worn directly on the feet and legs. The term originated as the collective term for products of which a maker or seller is termed a hosier; and those products are also known generically as hose...
companies, he formed his own consulting firm to redesign manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
processes in the needle
Sewing needle
A sewing needle is a long slender tool with a pointed tip. The first needles were made of bone or wood; modern ones are manufactured from high carbon steel wire, nickel- or 18K gold plated for corrosion resistance. The highest quality embroidery needles are plated with two-thirds platinum and...
trade. Although operated as a partnership, KSA was legally organized as a Delaware Corporation
Delaware corporation
The Delaware General Corporation Law is the statute governing corporate law in the state of Delaware. Delaware is well known as a corporate haven. Over 50% of U.S...
owned solely by the principals of the firm.
Early years
KSA expanded slowly over its first decade of operation. In these early years, the company established an ethic of diligenceDiligence
Diligence is steadfast application, assiduousness and industry — the virtue of hard work rather than the sin of careless sloth.Diligent behaviour is indicative of a work ethic — a belief that work is good in itself....
and quality in client work. Salmon himself was a stickler for details, and this would become a fundamental part of the firm’s cultural fabric. One of the firm’s first hires was Karl Striegel, a engineer who would become Salmon’s primary partner in building the business. The two men worked closely together over the next 25 years as KSA expanded from a dozen to more than 200 professional staff.
By the 1960s KSA was the undisputed consulting leader in improving manufacturing operations in the soft goods industry sector. The firm had established the benchmark
Benchmarking
Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time and cost...
standard of excellence in quality and impact of client results and had evolved a supportive internal culture of collegiality. Kurt Salmon personally set the tone for the culture and was instrumental in bringing both KSA and the industry sector the firm served up to new levels of professionalism and integrity
Integrity
Integrity is a concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes. In ethics, integrity is regarded as the honesty and truthfulness or accuracy of one's actions...
. Externally, Karl Striegel drove the commercial side of the business with clients and the overall results were outstanding. Many senior colleagues still recall this period as among the Golden Years of KSA.
The 1970s brought great changes to the firm. The manufacturing basis of the soft goods sector had been steadily migrating out of the United States to lower labor cost location, both in South America and in the Asia-Pacific. KSA’s U.S.-based practice in the operations
Business operations
Business operations are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders...
and manufacturing sectors increasingly lost relevance as this trend continued, and the firm shifted emphasis to retail, logistics
Logistics
Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...
and sourcing
Sourcing
In business, the term word sourcing refers to a number of procurement practices, aimed at finding, evaluating and engaging suppliers of goods and services:*Global sourcing, a procurement strategy aimed at exploiting global efficiencies in production...
services to compensate, and also opened an office in Hong Kong. The 70s proved a time of strategic exploration as the new leadership team of Stig Kry, CEO, and Jack Ulman, president, sought to diversify KSA’s offering into new industry sectors. Despite forays into the hospitality
Hospitality
Hospitality is the relationship between guest and host, or the act or practice of being hospitable. Specifically, this includes the reception and entertainment of guests, visitors, or strangers, resorts, membership clubs, conventions, attractions, special events, and other services for travelers...
, mining, furniture and health care industries, the firm was unsuccessful at sustaining viable positions outside the soft goods sector. Coupled with the disastrous recession of 1970–71, the firm contracted greatly in revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
s and profitability
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
. Before the decade had ended both Salmon and Striegel, the founding generation owners and the first two chairmen of KSA, had retired, marking the end of an era.
Recent years
KSA’s services and economics continued to change significantly over the course of the 1980s and into the early 1990s. The new generation of owners led by David Cole, CEO, and Barry Moore, president, redefined the firm’s strategy, organization and compensation. While retail and consumer products remained the mainstay industry expertise of KSA, the firm was finally successful in a new industry sector with the acquisition of the Hamilton Associates health care boutique in 1986. The firm additionally developed true advisory services in such areas as strategy to accompany the traditional implementation practices. Firm economics were upgraded, and KSA embarked on a global expansion supported by the buoyant 1990s market for consulting services. In particular, KSA expanded its offerings in information systemInformation system
An information system - or application landscape - is any combination of information technology and people's activities that support operations, management, and decision making. In a very broad sense, the term information system is frequently used to refer to the interaction between people,...
s planning and implementation, and developed expertise and alliances across a range of software such as SAP.
While KSA had made the transition from a single-offering engineering specialist to a top line management advisory practice, the internal financing of the firm did not advance at a comparable pace. The capital available from the Principals to finance global growth was limited and this resource base was further stressed by several costly expansion initiatives in the information technology implementation market. To compound matters, the KSA board voted to revalue the book stock of the company in 1999 and established a new formula value, further stressing the internal financing capability of the principals. Although the firm would continue to be privately owned under the new formula for several more years, it became clear the structure was not sustainable and the principals voted unanimously to sell KSA’s equity
Equity (finance)
In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists...
to Management Consulting Group
Management Consulting Group
Management Consulting Group, PLC is a consulting company listed on the London Stock Exchange under the name MMC.It comprises three independently managed practices:* Ineum Consulting acquired 2006)...
or MCG in 2007. As part of the transaction the KSA Principals assumed a significant shareholding position in MCG, a publicly traded company on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
.
On 1 January 2011, KSA merged with Ineum Consulting
Ineum Consulting
Ineum Consulting was a management consulting company based in France that specialized in corporate strategy, organization, and information systems issues. The company officially merged with Kurt Salmon Associates on 1st January 2011 to form Kurt Salmon....
, another consultancy of MCG, to form Kurt Salmon.
Consultants
Arnold Aronson, former CEO, SaksJerry Black, SVP and Director, Aeon
Howard Cooley, former CEO, Jockey
Alan Dabbiere, Chairman and CEO, Wandering WiFi, founder and former CEO, Manhattan Associates
Normand Gagnier, Director of Worldwide Manufacturing, Kimberly-Clark
Atiff Gill, COO and EVP, Metersbonwe
Thomas Heckler, Vice Chancellor, University of Oregon Health Sciences Center
James Hicks, former President, Polo for Boys
David Hitt, former CEO, Methodist Hospital Dallas
Javier Iruegas, CEO, Valley Medical Center El Paso
Bradley Morrison, PhD, Associate Professor, MIT
Shaz Kahng, Global Business Director, Nike
Philip Kowalczyk, President, Americas Region, The Body Shop, former COO, Talbots
Steven Nevill, EVP Merchandising Processes and Systems, Federated
Paul Raines, COO, GameStop, formerly EVP of US Stores, Home Depot
Richard Sawyer, Former Executive Director, American Hospital in Beirut
Steve Szilagyi, SVP Distribution, Lowe’s
Debra Wunner, Director, Global Product Marketing, Clinique
Americas
Atlanta, founded in 1971Irvine
Minneapolis, founded in 1947
New York
San Francisco, founded in 1983
San Bruno
Europe
BrusselsLyon, France
Marseille, France
Nantes, France
Paris
Düsseldorf
Rome
Leudelange, Luxembourg
Geneva
London, founded in 1956
Manchester, United Kingdom
External links
- Kurt Salmon official website http://www.kurtsalmon.com/
- Management Consulting Group official website http://www.mcgplc.com/