The consulting industry show of force for Mexican workplace diversity

20 November 2018 Consultancy.lat

Some of the world’s largest consulting firm’s have joined the Human Rights Campaign Foundation’s five year in-the-making Workplace Equality Program, demonstrating the industry’s determination to promote diversity and inclusion in the workplace.

Diverse and inclusive workplaces benefit both companies and economies as a whole. They promote engagement, attract a greater talent pool and improve decision making as there is a broader range of knowledge across sectors. Whilst the uptake in equality policies – especially for LGBTI+ people – has been slow in comparison to Europe and North America, Latin American businesses are beginning to capitalize on the many benefits that accompany equality.

The Human Rights Campaign Foundation released the results of Equidad MX Best Places to Work LGBT 2018 – with the help of local diversity consulting outfit FVConsulting – outlining a number of companies that represent the top standards of equality. HRC Equidad MX promotes three strategic pillars to improve equality across workplaces. They include; the adoption of nondiscrimination policies, the creation of employee resource groups or diversity and inclusion council, and engagement in public activities to support LGBT inclusion.

“Corporate leaders in Mexico increasingly recognize that when they stand up for LGBT people, including their own employees, customers, and consumers, they promote justice while also serving their bottom line,” said Francisco Robledo and Fernando Velázquez of HRC Equidad MX Implementing Partners.

The consulting industry show of force for Mexican workplace diversity

The consulting industry overall exemplified best practice and joined industry heavyweights such as AT&T, Google and Walmart. At the top of the list, scoring 100% on their assessment is Accenture, EYIBM and The Boston Consulting Group who join 28 other businesses. Together, the group accounts for over half a million workers throughout the country. They were also joined by out-performers McKinsey & Company and Oliver Wyman who were also celebrated for their achievements.

“We are proud to witness the growth of LGBT-inclusive businesses throughout Mexico. This year’s honorees keenly understand that the economy of the future is built with the diverse talent of today, and that LGBT inclusion is key to attracting and retaining the best workforce,” said Deena Fidas, HRC Director of HRC Equidad MX and HRC Foundation’s Workplace Equality Program.

“Mexican multinational companies have enormous economies and employ thousands of people. This gives them the ability to influence change on this issue in a unique way, and we are delighted to recognize them for this commitment.”

Inclusion and diversity

The report states that the reasons for driving change and move into line with the global standards of inclusion and diversity can aid international growth. Anti-discrimination policies can allow businesses to align with key investors and supplier standards, eliminating barriers to trade and mobility of talent.

For example, as over 80% of Fortune 500 companies prohibit discrimination based on sexual orientation and gender identity, a lack of policy itself may be a barrier to trade in general. For Mexico in particular, the country itself has been plagued by a high level of gender inequality driven by machismo.

Described in an A.T. Kearney report last year as one of the main factors in a lack of workplace diversity in Mexico. Machismo is a large barrier to the economic benefits which diversity will bring to the Mexican economy. The report identified that the prevalence of a ‘macho' culture itself is hindering Mexican workplace growth and productivity.

That being said, the growth in partners and participants for Equidad MX shows that times are changing. “HRC Equidad MX 2019 is an unprecedented moment for LGBT inclusion in Mexico and the Latin American region,” Robledo and Velázquez concluded.

Top consulting firms in Brazil for restructuring and turnaround

23 January 2019 Consultancy.lat

A new analysis of surveys among clients on track record / engagement satisfaction and management consultants on reputation has identified Brazil’s top consulting firms for restructuring and turnaround services. 

Companies in Brazil facing financial and operational difficulties, including rapidly deteriorating commercial performance, liquidity concerns, loss of key management / clients or refinancing risk, can according to data sourced by Consultancy.lat best place their faith in ten consulting firms specialized in restructuring, turnaround and crisis management. These ten consultancies are: Alvarez & Marsal, FTI Consulting, G5 Evercore, Moelis & Co, Rothschild, KPMG, Laplace Financas, Pantalica Partners and RK Partners.

When companies fall in financial distress, executives need to move swiftly to stabilize the business, while working towards a more long term strategy for sustainable strategic, operational and financial change. Working alongside debtors, lenders, shareholders and other stakeholders, consultants support with solving short-term liquidity requirements and action-planning to quickly preserve value and address potential risks to stability.

With stabilization in place, broader restructuring plans are designed and executed, including activities that enable cost optimization, operational restructuring, improved cash and working capital management and asset / debt restructuring. In the case of (potential) bankruptcy, restructuring consultants work with shareholders, debtors, creditors, regulators and other insolvency stakeholders on executing the administration or bankruptcy process – the procedures differ per country.

Top consulting firms in Brazil for restructuring and turnaround

In Brazil, the bankruptcy law covers three main proceedings. The first proceeding (‘bankruptcy’) is the actual process of liquidating a company’s assets in order to pay off debts. This involves selling all property and goods to meet the debt’s requirements. The ‘court-ordered restructuring’ proceeding has been put into place to help the company restructure its debts while carrying on its day-to-day operations (only applicable for companies that have been in business for at least two years). The third bankruptcy proceeding, ‘extra-judicial restructuring’, involves a private negotiation between the debtor and the creditor. Restructuring and insolvency consultants typically team up with lawyers to mediate between the two parties – if however no consensus is reached, the judge takes over the process.

Top restructuring consulting firms

Brazil’s list of top consulting for restructuring and turnaround services includes three advisory players that operate globally. Alvarez & Marsal (A&M) is one of the most well-known names in the restructuring landscape, which it for a large part owes much for its key role on the Chapter 11 bankruptcy case of the collapsed banking giant Lehman Brothers. Globally, Alvarez & Marsal has over 3,000 professionals in 50+ offices, including a Latin American presence in Brazil (Rio de Janeiro) and Mexico (Mexico City). Rival FTI Consulting is with a headcount 4,700 employees worldwide larger than A&M. Both consultancies provide a range of management and economic consulting, financial advisory (corporate finance and restructuring) and technology advisory services.

KPMG is one of the Big Four accounting and consulting firms. Its Restructuring & Turnaround practice has over 1,200 professionals worldwide. The Brazilian team operates mainly from the firm’s national hubs in São Paulo, Rio de Janeiro, Recife, Brasília and Belo Horizonte.

Four of the industry’s top players are local Brazilian consultancies. G5 | Evercore is one of Brazil's largest independent financial advisory services firm, operating bases in São Paulo, Rio de Janeiro and Recife. Formerly known as Arion Capital, São Paulo-based Laplace Finanças provides a wide range of financial advisory services to private sector and private equity clients, including restructuring and turnaround. Pantalica Partners, also located in São Paulo, has completed more than 70 restructuring engagements in Brazil with a restructured debt value of over $25 billion since inception in 2014. RK Partners specialises exclusively on turnaround and crisis management offerings, and in recent years played a role in the turnaround of among others Bom Bril, Rossi, Bertin Energia and Property Brasil.

Completing the list of Brazil’s best consulting firms for restructuring and turnaround services are the advisory arms of three international investment banks. New York headquartered Moelis & Company was founded in 2007 and today employs over 750 employees in the Americas, Europe, the Middle East, Asia and Australasia. The company serves the Latin America region through its locales in São Paulo and Mexico City. Lazard and Rothschild rank among the globe’s most prestigious investment banks – they both provides financial advisory and asset management services to corporations, governments and non-profit institutions. Lazard was founded in 1848 in the US, while Rothschild – which is owned by the Rothschild family, one of the wealthiest families in modern world history – was established in 1838 and is currently headquartered in Paris, France.

Related: Consulting market of South America grows 4% to $2.6 billion.