Accenture plc (NYSE: ACN) is a global management consulting, technology consulting and technology outsourcing company. Previously incorporated in the USA, then in Bermuda, since 1 September 2009 the company has been incorporated in Ireland with its global headquarters there in Dublin.[2] It is the largest consulting firm in the world, as well as being a global player within the technology consulting industry.[3] Accenture is a Fortune Global 500 company.[4] As of January 2011, the company had more than 214,000 employees in 120 countries.[3][5] Accenture's current clients include 96 of the Fortune Global 100 and more than three quarters of the Fortune Global 500.
For the fiscal year ended 31 August 2010, the company generated net revenues of US$23.09 billion.[1][5] The operating profit of the company was $2,914.8 million in FY2010, an increase of 10.2% over 2009. Its net profit was $1,780.7 million in FY2010, an increase of 12% over 2009.

The temperature of the CEO hot seat is rising by
the year. Analysis has shown that the average
tenure for a European CEO is now estimated at six
to seven years and falling. In the telecoms sector
this average is approximately four years—and
corporate performance in the first half of this
CEO life-span historically has been significantly
better than in the second half.
For the European mobile industry, these statistics
are of critical interest. The market turmoil and
sweeping corporate change from 2000 to 2002
triggered the appointment of new CEOs in most
of the continent’s major mobile operators,
including several from outside the industry, whose
background ranged from cosmetics to fast-
moving consumer goods. Given the current
average tenure, many CEOs are about to complete
the first halves of their tenures.
Accenture believes now is an ideal point to assess
their performance. Several of the CEOs already
have driven transformations of their businesses,
albeit usually through incremental rather than
revolutionary change. Others have adopted a more
steady-as-she-goes approach, riding the tide of
revenues from established voice services and
investing modestly in areas such as third-
generation technology.
With traditional voice revenues still strong and no
sign of a burning platform, there is little
immediate pressure for CEOs to tear up their
operating model and replace them. However,
Accenture sees a range of subtle but strengthening
pressures that indicates the current halcyon days
may not have much longer to run. When they
finish, companies will have little time in which to
refocus and realign themselves with their markets.
Four key leadership styles
As the new CEOs have settled in, they have
selected a variety of ways to make their mark. This
divergence of approach enables us to categorize
them into various behavioral groups. Research
Accenture conducted among CEOs at a number of
European mobile operators has enabled us to
identify four key leadership types (see Table 1).
The first half is up: Evaluating leadership styles
and performance in the European mobile industry
By Tom Barry and Tunc Yorulmaz
Revenue
enhancement
(Increase average
revenue per user)
Captains (20 percent)
Delivery
efficiency
(Decrease cost base)
Evolutionary
(Limited change at
a slower speed)
Revolutionary
(Major change at
a high speed)
Cavaliers (25 percent)
Chameleons (45 percent) Chainsaws (10 percent)
• Mostly external CEOs with
telco/IT experience
• New orientation for innovation
and segmentation
• Mostly external and
non-telco CEOs
• Expect to see more CEOs
taking this route in future
• Mostly, CEOs promoted internally
• Limited number of bold
moves with increments
• Limited popularity
• Avoidance from
the establishment
Table 1. Four leadership styles in European mobile industry
Source: Accenture Industry Survey, 2004. Sample size includes approximately 20 European mobile
operators from different countries and varying market positions.
1• CEO chameleons, the largest group, have adapted to the
current environment and are waiting for the next pick-up in
the market. They make their numbers with the help of a
stabilizing oligopoly, cutting costs progressively rather than
actively driving deep change. A higher percentage of CEOs
promoted organically within their respective companies
prefer to take this route, in contrast to the ones assigned
externally.
• CEO captains differentiate themselves from the chameleons
by focusing on sales and future revenues rather than cutting
costs. Most of the CEOs in this category have come into the
operators from external companies and sometimes from non-
telecommunications businesses, bringing with them a readiness
to identify and attack alternative sources of revenue.
• The other two groups—CEO cavaliers and CEO chainsaws—are
more limited in number within the industry. The fact is that
the majority of revolutionaries prefer to start with revenue
enhancement rather than cost cutting. This preference may
reflect the strong embedded establishment in mobile
companies and the awareness that a new CEO who decides
to confront this establishment head-on runs a high risk
of failure.
Leadership style performance
In terms of the relative performance of these CEO categories,
the jury is still out. Almost all CEOs managed to improve
their earnings before interest, tax, depreciation and
amortization (EBITDA) and revenues significantly between
2000 and 2002—on average approximately 28 percent
revenue growth and 55 percent EBITDA growth.* By any
industry standards, most mobile industry CEOs delivered a
stellar performance (see Table 2).
When we analyzed the results achieved by each category,
several differentiating factors emerged. CEO captains
managed to achieve the biggest revenue increases, while CEO
cavaliers were delivering the greatest value to their
shareholders. As befits their approach, CEO chameleons have
adapted well to the sector’s circumstances and generally
deliver roughly average performance for the industry. In fact,
Accenture believes these dynamics are increasing pressure on
chameleons to reposition or transform themselves into either
captains or cavaliers.
None of the leadership styles described above is intrinsically
better than the others. CEOs generally select the most useful
style depending on the market and company context in
which they are operating.
This Outlook Point of View is one of three related articles examining the
state of executive leadership in the European mobile industry. The other
articles in the series are “Achieving higher performance at mobile
operations: A CEO’s challenge” and “Will it be evolutionary or revolutionary?
Making change happen at mobile operators.”
Tom Barry, managing partner-Accenture Wireless industry
group, Europe and Latin America, can be reached at
[email protected].
Tunc Yorulmaz, senior manager-Accenture Wireless industry
group, can be reached at [email protected].
*The subjective nature of CEO categorization and lack of relevant data on
certain mobile operator performance had an impact on statistical
completeness. Therefore, the percentages used in this article should not be
taken out of their original context.
Accenture’s Wireless Industry Group teams with many of the world’s leading
mobile telecommunications companies helping them achieve high
performance. Accenture is a leader in serving the mobile telecom-
munications sector with a robust combination of industry expertise, business
solutions, technology acumen and outsourcing capabilities. Accenture uses
its pioneering solutions to help mobile telecommunications companies
achieve high performance by maximizing revenue opportunities, controlling
costs, optimizing asset use and capitalizing on emerging industry trends.
Accenture is a global management consulting, technology services and
outsourcing company. Committed to delivering innovation, Accenture
collaborates with its clients to help them become high-performance
businesses and governments. With deep industry and business process
expertise, broad global resources and a proven track record, Accenture can
mobilize the right people, skills and technologies to help clients improve
their performance. With approximately 90,000 people in 48 countries, the
company generated net revenues of US$11.8 billion for the fiscal year ended
August 31, 2003. Its home page is www.accenture.com.
For additional ideas, visit the Research & Insights section of
www.accenture.com.
The views and opinions expressed in this article are meant to stimulate
thought and discussion. As each business has unique requirements and
objectives, these ideas should not be viewed as professional advice with
respect to your business.
Copyright © 2004 Accenture. All rights reserved. Accenture, its logo, and
Accenture High Performance Delivered are trademarks of Accenture.
Revenue
enhancement
(increase
average
revenue
per user)
Evolutionary (Limited change
at a slower speed)
Revolutionary (Major change
at a high speed)
EBITDA = Earnings before interest, tax, depreciation and amortization
Delivery
efficiency
(decrease
cost base)
Captains (20 percent) Cavaliers (25 percent)
• Revenue growth (2000-2002)
4 percent above average
• EBITDA growth (2000-2002)
7 percent below average
• Revenue growth (2000-2002)
equal to average
• EBITDA growth (2000-2002)
6 percent above average
Chameleons (45 percent)
• Revenue growth (2000-2002)
4 percent below average
• EBITDA growth (2000-2002)
1 percent above average
Chainsaws (10 percent)
• Revenue growth (2000-2002)
not applicable
• EBITDA growth (2000-2002)
not applicable
Table 2. How the four leadership styles performed
The average revenue growth for all CEOs is 28 percent. Therefore, for the
CEO captains, for instance, 4 percent above average means that captains
managed to deliver around 32 percent revenue growth.
Source: Accenture Industry Survey, 2004. Sample size includes approximately 20
European mobile operators from different countries and varying market positions.*
 
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