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Oliver Wyman

From Alfawiki
Oliver Wyman, LLC
Company typeSubsidiary
IndustryManagement consulting
PredecessorOliver, Wyman & Company; Mercer Management Consulting; Mercer Delta Consulting
Founded1984 in New York City, United States
FounderAlex Oliver, Bill Wyman
Headquarters
New York City
,
United States
Area served
Europe, North America, Middle East, Asia-Pacific
ProductsManagement consulting services
OwnerMarsh McLennan
Number of employees
5000+
ParentMarsh McLennan

Oliver Wyman, LLC is a United States-based management consulting company established in 1984 in New York City by former Booz Allen Hamilton partners Alex Oliver and Bill Wyman. The organization maintains a presence with more than 60 offices throughout Europe, North America, the Middle East, and the Asia-Pacific region, employing upwards of 5,000 experts. It functions as a division within the Oliver Wyman Group, itself a segment of Marsh McLennan.

History

The origins of Oliver Wyman trace back to Oliver, Wyman & Company, created in 1984 when six consultants left Booz Allen Hamilton to form a boutique firm concentrating on financial institutions. Bill Wyman, one of the co-founders, exited in 1995, citing a transition from people-focused consulting toward more analytical assignments.

The firm’s evolution involves a series of mergers and acquisitions. In 2003, Oliver Wyman emerged through the combination of Oliver, Wyman & Company with Mercer's financial services strategy and risk practices. Prior to this, Mercer had absorbed firms including Temple, Barker & Sloane (1987), Strategic Planning Associates (1989), and Delta Consulting Group (2000). Expansion into Europe was marked by acquiring Unternehmensberatung Munchen (1993), Marketing Innovation Design pour l'industrie (1995), and Corporate Decisions, Inc. (1997).

This strategy of growth through acquisitions has persisted into the 21st century, with Oliver Wyman and its antecedents integrating over 20 companies to broaden industry expertise and enhance global coverage.

Temple, Barker & Sloane (1969–1987)

Established in Lexington, Massachusetts in 1969 by James R. Barker, Carl Sloane, and Herbert Temple, Temple, Barker & Sloane quickly became notable in management consulting. Carl Sloane observed that while early consultants were characterized by Harvard MBAs and formal business attire, the recession during the 1980s shifted client demands toward more specialized advisory services as they developed internal capabilities.

The firm focused on areas such as supply chain management, transportation, and financial services. Significant engagements included conducting studies for the United States Coast Guard concerning international oil protocols during the 1970s; restructuring American Presidential Lines (APL), which grew to become the largest American shipping company in the Pacific throughout the 1980s; and identifying alternative applications for state-owned railcars amid reduced freight rail demand in the 1990s. Among its notable employees was Burunda Prince, who later became Bain & Company's first female consultant of color.

In 1971, the chairman provided expert testimony related to the Energy Policy and Conservation Act, drawing upon the firm's marine transportation expertise and receiving commendation from U.S. Congressman Edward Garmatz.

At the time of its acquisition in 1987, Temple, Barker & Sloane was valued near $45 million (equivalent to over $100 million today).

Strategic Planning Associates (1981–1990)

Strategic Planning Associates was founded in 1981 by Walker Lewis, a former associate at Boston Consulting Group, who applied computing methodologies to strategic consulting. Unlike many contemporaries, Lewis did not attend business school but developed computerized models for clients such as Ameritech Corporation (later part of AT&T), Chase Bank, General Electric, and Royal Dutch Shell.

By 1986, the firm's valuation reached $25 million (in 1990 dollars), although two clients contributed to more than 40% of revenue. After losing one key client in 1987, Lewis determined that the firm was too small to compete effectively, asserting that a viable consulting firm requires over 2,000 professionals. The company was subsequently acquired by Marsh McLennan in 1989.

Mercer Delta Consulting (1980–2003)

Established in 1980 by organizational theorist David A. Nadler, Delta Consulting Group concentrated on building high-performing executive teams. Its clientele featured prominent companies such as 3M, Citicorp, Procter & Gamble, The New York Times, and Xerox. After being acquired by Marsh McLennan in 2000, the firm was rebranded as "Mercer Delta."

Mercer Delta specialized in leadership development and organizational transformation, growing its presence through acquisitions including Canadian Johnston Smith International, French Change Management Consultants, Spanish c.r.m. Concord, and American CDR International. The company conducted annual surveys of Fortune 1000 board members and monitored trends in corporate governance. It promoted the concept of strategically aligned business units connected to a larger entity, enabling flexible sharing of capabilities rather than adhering to conventional rigid organizational frameworks.

Mercer Management Consulting (1990–2003)

In 1990, Temple, Barker & Sloane (TBS) merged with Strategic Planning Associates (SPA) to create Mercer Management Consulting, with a focus on risk management and financial services sectors. TBS brought deep industry-specific knowledge, while SPA contributed data-driven approaches across various industries. The integration encountered difficulties, resulting in the departure of key SPA figures such as Jim Manzi and Scott Setrakian—founders of Applied Predictive Technologies—as well as Richard Fairbank and Nigel Morris, who later founded Capital One.

Despite these challenges, Mercer expanded its specialized expertise and global reach during the consulting surge of the late 1990s. The firm worked with leading international organizations including the World Bank, IBM, and the International Finance Corporation. Additionally, Mercer increased its involvement in public sector projects like the restructuring of Polish State Railways and the privatization of Argentina’s commuter rail system.

The company suffered significant losses during the September 11 attacks; Marsh McLennan had nearly 2,000 employees at the World Trade Center, with Mercer losing 295 staff members and 63 consultants. In response to this tragedy, Mercer reorganized operations and closed offices in Washington D.C. and Geneva.

Mercer Oliver Wyman (2003–2007)

By 2003, Mercer Management Consulting was ranked 6th and Oliver, Wyman & Company 9th among consulting firms according to Vault rankings. Mercer’s expertise lay in transportation, insurance, asset management, and retail brokerage sectors, while Oliver Wyman was known for strengths in capital markets and investment banking. Their merger that year created "Mercer Oliver Wyman," which was widely considered a successful combination.

Following this merger, Mercer Oliver Wyman experienced rapid growth—up to 25% annually—becoming the fastest expanding consultancy within the top ten firms.

Oliver Wyman (2007–present)

In 2007, Mercer Management Consulting, Mercer Delta Organizational Consulting, and Mercer Oliver Wyman consolidated under the single "Oliver Wyman" brand to unify offerings and enhance client services. The firm held the 7th position until 2013 when it advanced back to 6th place and further climbed to 5th by 2017, surpassing PricewaterhouseCoopers.

Although senior personnel carry the title "partner," Oliver Wyman functions as a wholly owned subsidiary within its parent company. Additionally, "Oliver Wyman" denotes a larger business segment inside Marsh McLennan known as "Oliver Wyman Group."

Between 2013 and 2019, Oliver Wyman Group achieved an average annual growth rate of 7%, outperforming the overall global management consulting market despite experiencing revenue declines linked to Brexit.

Services

Oliver Wyman operates as an international management consulting firm, providing strategic guidance to enhance performance across a variety of industries such as automotive, defense, education, energy, healthcare, telecommunications, transportation, and travel. The firm holds a prominent reputation particularly within the financial services domain. Partners at Oliver Wyman regularly contribute insights to prestigious business outlets including Forbes, Harvard Business Review, The Financial Times, and The Wall Street Journal. The company achieves revenue exceeding $500,000 per consultant, which is more than twice the national mean and ranks second only to McKinsey & Company.

2005 Citigroup advice

In 2005, Mercer Oliver Wyman reportedly served as the consulting advisor to Citigroup, recommending an expansion of its fixed income division, particularly in areas such as collateralised debt obligations. This strategy later contributed to losses exceeding $50 billion during the 2008 financial crisis, necessitating a U.S. government bailout. Comparable guidance was extended to UBS, resulting in substantial losses and requiring intervention by the Swiss government. Some accounts indicate that Mercer Oliver Wyman's analysis included cautionary notes regarding risks in the structured product market. The firm declined to provide comments, citing confidentiality agreements with clients.

2006 Irish Bank endorsement

At the 2007 World Economic Forum, Oliver Wyman designated Anglo Irish Bank as the "best bank in the world." However, following the global repercussions of the US subprime mortgage crisis, the Irish property market collapsed on March 17, 2008, severely affecting AIB’s investment portfolio. This downturn led to a dramatic fall in the bank’s stock during what became known as the St. Patrick's Day Massacre and culminated in $30 billion worth of government bailouts and eventual nationalization. Oliver Wyman faced criticism for its prior endorsement, later clarifying that their 2006 accolade was based solely on historical shareholder returns and did not foresee the impending financial crisis.

This incident tarnished Oliver Wyman's standing in Ireland, leading to heightened scrutiny of subsequent projects. Nonetheless, the firm continues to maintain a strong presence across Europe, auditing 130 of the largest banks within the eurozone. Oliver Wyman has played roles in conducting stress tests that influenced the 2012 Spanish bailout, prevented privatization efforts of Slovene banks in 2013, advised on divestitures involving rescued Italian banks in 2016, and formulated anti-money laundering frameworks in Malta. Frequently, they are engaged by the "troika" lenders: the European Central Bank, European Commission, and International Monetary Fund.

2012 LIBOR decommission

The London Inter-Bank Offered Rate (LIBOR) functioned as a critical benchmark interest rate underpinning approximately $340 trillion worth of global financial contracts. In 2012, Oliver Wyman was commissioned by the British Bankers' Association to assist in evaluating LIBOR’s rate-setting procedures following investigations into fraud and collusion. Although LIBOR suffered a loss of market trust, no definitive alternative benchmark existed at that time. Oliver Wyman highlighted that substitute reference rates—calculated through different methodologies—would modify firms' exposure to market risk, necessitating revisions to risk assessment models, valuation methodologies, product structures, and hedging approaches. The transition was estimated to impose costs of around $1.2 billion on banking institutions. As a result, the UK Financial Conduct Authority planned a gradual phase-out of LIBOR by 2021.

In 2013, Oliver Wyman was engaged by the International Swaps and Derivatives Association (ISDA) to address manipulation concerns surrounding ISDAFIX—the global benchmark rate for fixed interest rate swaps. The firm developed the current calculation methodology for ISDAFIX based on regulated electronic trading quotations.

2013 Kuwaiti joint venture

In 2013, the Kuwait Investment Authority and Kuwait Fund for Arab Economic Development collaborated with Oliver Wyman to establish "Tri International Consulting Group." The Kuwaiti partners brought strategic connections, while Oliver Wyman provided consulting expertise, allowing the firm to navigate regional challenges such as the limited availability of Arabic language professionals and secure enduring contracts. Within Kuwait, Oliver Wyman functions solely under the Tri International brand.

By 2018, Tri International was offering advisory services for the $90 billion Kuwaiti stock market IPO, which had been postponed for several years due to political complications. The group also provided guidance on debt management amid declining oil revenues and contributed to plans for implementing smart energy infrastructure throughout Kuwait.

2015 Eskom-McKinsey scandal

In 2015, partners from Oliver Wyman engaged with key South African entities including Eskom, Transnet, and the Department of Cooperative Governance through Trillian, a local consultancy associated with the controversial Gupta family. Trillian proposed introducing prominent clients to Oliver Wyman for cost-reduction projects in exchange for a commission-based fee; however, Oliver Wyman declined after conducting due diligence on Trillian.

That same year, McKinsey & Company secured a R1.6 billion ($117 million) contract with Eskom via Trillian, initially denying any subcontracting arrangement. Subsequent leaked communications confirmed Trillian’s role as a subcontractor. Allegations surfaced that McKinsey charged inflated fees to divert payments to Trillian, which McKinsey denied.

Eskom commissioned Oliver Wyman to review its contract with McKinsey. The resulting report described the fee arrangement as "highly unusual," raised concerns about invoicing practices, and recommended pursuing legal action against both McKinsey and Trillian. Eskom initially misrepresented the report’s conclusions as positive but later issued corrections following pressure from the Democratic Alliance and parliamentary oversight.

Following Oliver Wyman’s findings, criminal charges of fraud and racketeering were brought against McKinsey and Trillian. McKinsey repaid R1 billion and issued an apology for lapses in judgment in what The Financial Times described as "South Africa’s largest ever corruption scandal." Meanwhile, Trillian faced legal proceedings concerning R600 million in disputed fees.

2017 Saudi mega-city leak

In 2017, the Kingdom of Saudi Arabia unveiled plans for a $500 billion investment to construct Neom, an advanced smart city along the Red Sea. Crown Prince Mohammad bin Salman enlisted consultants from Oliver Wyman, Boston Consulting Group, and McKinsey & Company to provide recommendations on urban design, economic strategy, and legal frameworks. In 2019, a leak of over 2,300 pages exposed proposals from these firms that included futuristic technologies not yet developed—such as flying taxis, robotic domestic helpers, and an artificial moon. Neom characterized the consultants’ contributions as "productive and valuable," emphasizing their commitment to pioneering and occasionally theoretical innovations. The project aims for completion by 2025.

The leaked documents also raised potential human rights issues by suggesting forced relocation of indigenous Howeitat tribes, continuous surveillance employing facial recognition, and enforcement of Sharia law. This sparked debate in the United States regarding Saudi Arabia's dependence on American consulting firms heavily involved in numerous kingdom initiatives. Beyond governmental engagements, Oliver Wyman additionally sponsors the Saudi Future Investment Initiative.

2018 Australian stress tests

In 2018, the Australian Prudential Regulation Authority (APRA) mandated that Commonwealth Bank perform stress testing in response to reputational damage caused by various scandals. A panel consisting of three members supervised the process; while two members supported appointing Oliver Wyman to carry out the assessments, former ACCC chairman Graeme Samuel opposed this decision, contending that external consultants were unnecessary and that executives failing to address governance problems should resign. Despite Samuel's objections, Oliver Wyman was contracted for a multimillion-dollar engagement, and APRA described the resulting report as "valuable." Samuel later criticized the engagement as "a waste of money."

Following this, Oliver Wyman conducted comparable stress testing for Westpac in 2019.

Recruitment

From 2015 through 2018, Oliver Wyman expanded its digital practice significantly, prioritizing recruitment of professionals with advanced digital expertise. The firm initiated an autism-focused hiring program in 2015 and pledged to employ qualified refugees during the 2016 European migrant crisis. In 2019, the French publication Consultor ranked Oliver Wyman lowest among consulting firms regarding women partners but recognized ongoing initiatives aimed at enhancing female recruitment.

COVID-19 pandemic

Due to the COVID-19 pandemic, Oliver Wyman cancelled its summer internship programs in 2020, substituting some internship offers with full-time roles slated for the following year. The onboarding of new graduates was postponed, and a hiring freeze was implemented; however, the company committed to avoiding layoffs. CEO Dan Glaser reassured staff about job stability, highlighting the firm’s robust financial standing despite the challenges posed by the pandemic.

Alumni

External links

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