Boston Consulting Group
Bruce Henderson walked into The Boston Safe Deposit and Trust Company in 1963 to establish a new consulting arm. The division operated under the name Management and Consulting Division of the Boston Safe Deposit and Trust Company. Billings for the first month reached just US$500. Henderson hired his second consultant, Arthur P. Contas, in December 1963. The firm opened its second office in Tokyo, Japan, in 1966. In 1967, Bill Bain joined at a starting salary of $17,000 per year. Bain resigned from BCG in 1973 to start his own strategy consulting firm. He hired away six of BCG's employees during that transition. Henderson arranged an employee stock ownership plan in 1974 so that employees could make the company independent. The buyout of all shares was completed in 1979.
BCG created and popularized the growth, share matrix in the 1970s. This chart helped large corporations decide how to allocate cash among their business units. The corporation would categorize its business units as Stars, Cash Cows, Question Marks, or Dogs. Then it allocated cash accordingly, moving money from Cash Cows toward Stars and Question Marks. These categories had higher market growth rates and hence greater upside potential. In the 1980s, BCG introduced the concept of time-based competition. That concept reconsidered the role of time management in providing market advantages. The concept became the subject of an essay in the Harvard Business Review. Since 2015, progress in numbers showed 30% less greenhouse gas emissions. The firm also achieved 20% less water usage and 15% less waste generation. Energy consumption dropped by 10% according to the 2022 Annual Sustainability Report.
Christoph Schweizer took over as CEO in May 2021. He replaced Rich Lesser who stepped down to serve as the firm's Global Chair. Schweizer is a German executive leading the firm since that date. The firm typically hires for associate or consultant positions from top undergraduate colleges. Advanced degree programs and business schools feed into these recruitment pipelines. The employee stock ownership plan allowed staff to own shares after the 1979 buyout. This structure helped maintain independence from The Boston Safe Deposit and Trust Company. Modern executive leadership now operates under Schweizer's direction while maintaining the original partnership model roots.
The New York Times published an article on the 19th of January 2020 identifying BCG's work with Isabel dos Santos. Dos Santos exploited Angola's natural resources while the country suffered from poverty, illiteracy, and infant mortality. BCG was contracted by the Angolan state-owned petroleum company Sonangol. They also worked for the jewelry company De Grisogono owned by her husband through shell companies. These entities existed in Luxembourg, Malta, and the Netherlands. The firm was reportedly paid through offshore companies in tax havens such as Malta. This arrangement drew scrutiny regarding ethical standards and corporate responsibility in developing nations.
Between October 2024 and May 2025 BCG helped design and run the business operations of the Gaza Humanitarian Foundation. That foundation has been linked to US-based private security firms. It is being investigated over the identity of its donors. In June 2025, BCG terminated its contract with the GHF. The Washington Post reported that BCG submitted invoices of over $1 million per month despite claiming the work was done pro bono. Two senior partners were fired: Matt Schlueter and Ryan Ordway. Both came from the firm's U.S. defense and security practice. They did not disclose the full nature of their engagement and oversaw the GHF work without authorization. Financial Times revealed Project Aurora covered more than $4 million of contracted work. The modeling included cost estimates for giving hundreds of thousands of Gazans relocation packages worth $9,000 per person. Save the Children suspended its partnership with BCG following these revelations.
The New York Times reported that Boston Consulting Group helps Crown Prince Mohammed bin Salman consolidate power in Saudi Arabia. A BCG spokesperson said the firm turns down projects involving military and intelligence strategy. However, BCG is involved in designing the economic blueprint called Vision 2030. In June 2021, BCG was hired to examine feasibility for hosting the 2030 FIFA World Cup. The bid was assessed as a great deal due to FIFA policy restrictions on Asian nations until 2034. Saudi Arabia eventually received hosting rights for the 2034 FIFA World Cup instead. In 2024, BCG consulting heads appeared before congress to disclose financial details between them and Saudi Arabia. Staff were warned they could face jail time if they reveal information about those dealings.
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Common questions
When did Bruce Henderson establish Boston Consulting Group?
Bruce Henderson established the firm in 1963 by walking into The Boston Safe Deposit and Trust Company to create a new consulting arm. The division operated under the name Management and Consulting Division of the Boston Safe Deposit and Trust Company.
What is the growth share matrix created by Boston Consulting Group?
Boston Consulting Group created and popularized the growth share matrix in the 1970s to help large corporations allocate cash among business units. This chart categorized business units as Stars, Cash Cows, Question Marks, or Dogs based on market growth rates and potential upside.
Who became CEO of Boston Consulting Group in May 2021?
Christoph Schweizer took over as CEO of Boston Consulting Group in May 2021 after replacing Rich Lesser who stepped down to serve as Global Chair. Schweizer is a German executive leading the firm since that date while maintaining original partnership model roots.
Why was Boston Consulting Group investigated regarding Angola in January 2020?
The New York Times published an article on the 19th of January 2020 identifying BCG's work with Isabel dos Santos who exploited Angola's natural resources. BCG was contracted by Sonangol and worked for De Grisogono through shell companies existing in Luxembourg, Malta, and the Netherlands.
When did Boston Consulting Group terminate its contract with the Gaza Humanitarian Foundation?
BCG terminated its contract with the GHF in June 2025 after being investigated over donor identities and financial disclosures. The Washington Post reported invoices of over $1 million per month despite claims of pro bono work which led to the firing of two senior partners.