By Peter Gassmann, global leader with Strategy& and Kieran Little, Irish Partner for Strategy&

Many of the strategic challenges facing businesses in Ireland are global in origin. Whether they stem from trade disruptions caused by rising geopolitical tensions, supply chain interruptions due to extreme weather events, or new regulatory requirements, the consequences can be quite profound.

There are no off the shelf solutions to these issues.  Not only is the nature of each challenge coloured by the Irish business environment, but it will also vary according to the specific circumstances of the companies affected.

That requires an approach which combines global perspective and expertise with in-depth knowledge of local market conditions. That’s the unique proposition brought by PwC which has augmented its advisory practice with the launch of Strategy&, the firm’s global strategy consulting business here in Ireland. While this is a new launch of the global brand, the  Strategy& Irish team is well established and is led by Irish partners, David McGee and Kieran Little.

"We are in an era of uncertainty globally,” says Dr Peter Gassmann, global leader with Strategy&. “Businesses are facing continued disruption due to the unrelenting pace of change we see in today’s world and the challenges this creates. Current challenges include geopolitical uncertainty, sluggish growth in many economies leading to reduced demand, and the impact of technology and GenAI in particular.”

Climate is another issue. “Companies are thinking about how they can adapt and transform in light of climate change,” Gassmann adds. “They need to reduce their carbon footprints and reshape supply chains while biodiversity is becoming increasingly important. At the same time, they are facing talent shortages. We are also seeing companies struggling with increasingly stringent regulation. It’s both a blessing and a challenge. It creates transparency but it also creates bureaucracy and cost.”

Right strategy more important than ever

The overall challenge for business leaders is how to set their organisations up for long term success while being profitable and resilient in the short term, he explains. “In PwC’s 2024 Annual Global CEO Survey, 45 per cent of global CEOs believe their business will be unviable in a decade if they do not reinvent themselves, but they need to keep the ship afloat in the meantime. In this environment, having the right strategy is more important than ever.”

Here in Ireland, businesses are working through the strategic implications of the outcome of the recent US election and determining what the impacts of potential policy changes in areas like trade and tariffs might be, Kieran Little, Irish partner for Strategy&, notes. “They are looking at things like potential deglobalisation and the growth challenges that presents. They have to navigate uncertainty whilst seeking out new opportunities for growth at the same time. And while the worst of the inflation cycle appears to be behind us, there is a lasting challenge to be profitable in some Irish sectors. We are helping clients rethink their business models and in some cases their cost base to navigate these challenges in the long term.”

He also points to the changing investment landscape in Ireland. “A decade ago, you could count the number of active private equity firms of scale in Ireland on one hand. This has grown and matured beyond all recognition, and we now have dozens of credible PE investors active in Ireland with strong international investor interest as well. Ireland is one of the few European economies still growing strongly and with this presents huge opportunities for our clients.”

But with M&A transactions increasingly debt funded, the bar in terms of evidence to substantiate risks and opportunities in growth plans has been raised quite significantly. “This has created a requirement for a depth of understanding of market impacts that Strategy& can provide in Ireland.”

Strategy& may be a new name in Ireland but it is actually one of the oldest strategy houses in the world with a history stretching back to 1914.  when it was Edwin Booz founded the company that became Booz Allen Hamilton. “We have a very long history and heritage,” says Gassmann. “PwC has an even longer heritage and today Strategy& is the only full-scale strategy firm within a professional services network worldwide, leveraging the deep expertise of a strategy boutique with the breadth and depth of the global PwC network. We have 4,500 strategy consultants in over 50 countries, embedded in the PwC network of over 370,000 PwC professionals in 149 countries.”

Little adds: “A consulting career at Strategy& offers outstanding opportunities to gain experience solving real strategic problems and to grow professionally.”  

A partnership approach working with clients, not for clients

In practical terms, Strategy& is a network of strategy professionals with deep sector knowledge. “In addition to our strategy frameworks and experience we bring specific knowledge and insights from industry sectors such as banking, insurance, healthcare, retail, consumer, industrials, and so on,” says Little. “Strategy& consultants help clients navigate their business challenges from strategy development to implementation, combining the strategic expertise of Strategy& with the broad capabilities of the PwC network. For us it is important that our thinking gets implemented and in doing so we say we work with our clients rather than for our clients.”

That partnership approach is very important, he adds. “We have developed a culture that is unique and  highly collaborative. The key to this is the exceptional team we are building here in Ireland. The team has the highest standards for their work and is committed to delivering practical strategies with our clients. We make sure our solutions get implemented. They are not just flashy PowerPoint presentations that get filed away somewhere and forgotten about.”

We look at issues holistically -  clients want to know that you have looked at the issue from all perspectives including tax, regulation, market conditions and so on. We are able to work with our colleagues in other areas of PwC Ireland to bring that broader perspective. And it is not just a case of setting a strategy for an organisation. It is about helping them with their most  important decisions and dilemmas. Part of that includes challenging them. They may have their own hypotheses, and we bring robust debate and data to ensure all options have been considered properly.”

Nothing is set in stone. “We help clients set up for long term success, but the environment can change every six months,” says Gassmann. “The strategy needs to be able to adapt within the overall guardrails. We work with PwC colleagues and clients to constantly refresh their strategies.”

Global expertise and local knowledge

Gassmann points to a recent example where Strategy& helped clients meet specific challenges. “In one case we assisted a company with a global optimisation process. It was not just about cost reductions, it was a growth programme where we looked at client’s strengths, what should be invested in and what other, weaker areas should be wound down. This follows our proven methodology Fit-for-Growth.”

Here in Ireland, the local Strategy& team has become the point of access to the global network for Irish Plcs looking to identify where and how to expand internationally from a strategy perspective. “We have worked closely with our Strategy& colleagues across every continent to bring the best of the network’s local sector knowledge to our Irish clients,” says Little. “In one case we delivered a series of market growth strategies in the Middle East and Asia for a major Irish Plc. We brought the local experts from the Strategy& network and combined them with the Irish team to develop a clear growth and investment plan for the client’s international expansion.”

In another instance, the team supported investment into Ireland by advising an international financial services client on its market entry strategy to this country. “We were able to determine that it was not possible to enter the market through organic growth – it would have to be through acquisition. Some time later, an asset came up for sale and we executed the commercial due diligence with them. We helped them integrate the business after the transaction and we brought in our PwC Ireland colleagues to support the regulatory and other technical aspects of the process.”

That encapsulates the advantage of the Strategy& and PwC Ireland proposition, he concludes. “That’s what makes the difference. We are able to work with clients on all aspects of strategy development right through to practical implementation. With Strategy& we now have access to the sector expertise from a global strategy house combined with the knowledge of Irish specifics from the local Strategy& and PwC teams."