A SIMPLE IDEA
Karlsson Consulting was founded on the simple idea that there has to be a better way of running a consulting company.
In 1977, Max Horn (now President, and founder of, Karlsson Consulting), along with another manager, had opened the Twin Cities’ office of a national Information Technology consulting company. Over a period of seven years that Twin Cities’ office had grown rapidly to over 60 consultants. Despite a strong presence in the local marketplace, however, the company was in debt and disarray because of its extremely rapid growth and a costly effort to try selling software packages out of its corporate offices in Chicago. As a result, there was no money available for Staff development or training.
Frustrated, Max left the company and spent several months developing a plan for a new business model that would combine Staff development and growth, ethical business practices, and care for the Community into a successful company that would survive and succeed well into the future.
The greatest challenge at this stage of Karlsson Consulting’s development was to translate these ideals into business practices that would sustain the ideals. Max had seen several companies start out with lofty ideals, only to be overtaken by the desire for faster growth and higher profits, and the desire for results now rather than building for the future. As a result, much of the initial planning effort was the development of Karlsson’s business practices, or "operating principles."
KARLSSON CONSULTING IS FOUNDED
Once the Operating Principles and business plan were developed, the Company was incorporated and began operation on September 14, 1984. Since then we have developed a strong Client base; hired and maintained an excellent team of professionals (the average tenure with the Company is about ten years); and kept our Principles intact.
Looking back, we're proud to have survived the start-up years and to have kept our Staff, even through several recessions. Most of all, we're delighted to have become a solid force in the Twin Cities technology consulting marketplace. |
OPERATING PRINCIPLES
· For all significant decisions, we strive for a balance between the short term and long term impacts on our Clients, our Staff, and the Company.
· We foster and encourage a participatory and ethical environment among all of our Staff.
· We do not use debt capital for growth or expansion.
· Our overhead costs are not to exceed 10% of gross revenues.
· We share our profits with our Staff and our local community.
· We strive to maintain a contingency reserve fund adequate to cover all operating expenses for a three month period. The primary purposes of this fund are to retain Staff during lean times and to facilitate training of our Staff to meet changing market needs.
· We are committed to spending the necessary time and money to strengthen and broaden our Staff's professional and technical skills to meet our market needs and our individual Staff member's desires for growth.
· At least twice a year (at our planning sessions) we examine the need and desire for future growth; however, our full-time Staff size will never exceed 36.
· We do not want to become overly dependent on any one Client. If 25% or more of our full-time Staff is assigned to a Client, no additional Staff will be assigned to that Client without prior discussion with the Management Team.
· We do not hire to meet particular project needs.
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