Management Consulting Considerations--Europe and USA

What are the main differences in the American and European ways of running business?

To review some of the cultural differences that impact businesses, look at these two websites:
http://www.geert-hofstede.com/hofstede_united_states.shtml

http://www.geert-hofstede.com/hofstede_netherlands.shtml  

These websites provide profiles of the cultures of the United States and of The Netherlands—as an example of Europe. The differences between these two cultures are reflected in the ways of doing business in each culture.

Aside from the cultural differences identified by Hofstede, there are basic differences recognized by the formulation of the European Union. American businesses in the USA share a common language, operate under the same federal laws and regulations—though they are also influenced by state laws and regulations. Their employees largely come from the United States or face one set of immigration and “right to work” laws from the USA. Global firms operating in the USA have the basic regulations of the USA, coupled with the requirements they must meet to operate in each of the different multinational locations they are organized in. In Europe, women and men may be regarded more as equals than is prevalent in the USA. In Europe, multiple languages, cultures, and currencies impact businesses and business consulting.

There are different sizes of business which are looking for consulting and some of their decisions on which consulting firms to engage are based on their comfort zones. In the USA, many of the largest consulting firms with 60,000 plus consultants targeted Information Technology (IT) and added strategy and human resources consulting on top of the IT business. To some extent that is also true in Europe. One major area of difference is that many European firms are more aware of the interconnected nature of change in a business and are more supportive of organized planning efforts to support that change than are some American based organizations.

What advantages could a mid-sized European-owned management consulting firm have in the American market?

What needs to be determined is your target market and fees. Firms such as Accenture and PriceWaterhouseCoopers used to have large teams of junior consultants working and reporting to senior managers or partners. Fees for those large teams were in the millions and that limited the target market to only major players in the industry. If you can target a more middle range and provide both physical presence and virtual support—a blended consulting team approach—with investment requirements (costs) that these companies can manage, that will be a significant advantage in the American market. Another goal will be to make the American market support further global expansion by how you target the market.