Thursday, February 24, 2005
History of Consulting Unit-Towers Perrin
Source: Top Consulting Magazine
Towers and Perrin are known for their outstanding end to end solutions in three fields namely Human Resources, Re-insurance,Tillinghast.The rise of this firm since 1917 is described below:
In 1917, H. Walter Forster, founder develops the first private pension plan, for Union Carbide and Carbon Corporation.
The 30s: TPF&C becomes a reality
March 1, 1934 — Towers, Perrin, Forster & Crosby opens for business in Philadelphia with a Reinsurance Division and a Life Division. Employees number 26 and first-year income is less than $200,000.
Innovations: The Reinsurance division is instrumental in developing syndicates to provide additional capacity in London as a way of offsetting a worldwide reinsurance shortage.
The 40s:
1946 — The Life Division becomes the Pension Division. TPF&C opens its second office (Chicago).
1949 — TPF&C opens an office in New York City and firmwide employment reaches 120.
Innovations: The Pension Division publishes its first TPF&C Pension Tax Manual, which quickly becomes a standard U.S. Internal Revenue Service reference source on pension tax law.
Towers and Perrin informs informs clients of trends and regulations in the areas of pensions and benefits.
The 50s: Global expansion
1952 — The firm’s first communications consulting unit is formed. Total income reaches $2 million.
1956 — The first non-U.S. office opens in Montreal and the Pension Division becomes the Employee Benefit Plan Division as a first step toward marketing a broadening range of consulting services.
1959 — Firm income reaches $4 million.
Innovations:Towers and Perrin holds the credibility of producing the first personnel manual, which becomes the prototype for companies that want to develop formal benefits descriptions for their employees.
Tillinghast develops a prize-winning paper on discounted cash flow methodology that becomes an industry standard for pricing life insurance products and companies.
The 60s:
1962 — Introduce compensation and organization consulting services.
1965 — Brussels becomes the firm’s first office outside of North America.
1969 — The firm opens its first office in London. Income more than triples during the decade to $14 million and staff more than doubles to almost 500.
Innovations: Established a centralized, six-month training program for new consultants.
We begin a formalized research program to benefit our clients.
The consulting division focuses on expanding its services to clients, with an emphasis on direct and indirect compensation, the precursor to Total Rewards.
The 70s: Growth and prosperity continue
1974 — The firm’s first Latin America office opens in Caracas.
1979 — Opened first Far East office in Hong Kong. Total revenues reach $88.4 million — almost six times the 1970 level — and staff tops 1,300.
Innovations: The Human Resource Information Systems (HRIS) practice is established to support employers’ rapidly growing and increasingly complex HR needs.
Tillinghast suggests a practical approach for developing universal life products that is adopted by the industry. By 2003, universal life accounts for 30% of all life insurance products sold in the U.S.
The 80s:
1980 — Firmwide income surpasses $100 million.
1982 — The firm expands into Australia by acquiring Palmer Trahair Owen & Whittle, with offices in Brisbane, Melbourne and Sydney.
1983 — Merged with Cresap, McCormick and Paget, known for strategy, human resource and management processes consulting, creating a new general management services division.
1984 — The Tokyo office opens. Fifty years after founding, income surpasses $200 million.
1986 — The firm merges with Tillinghast, Nelson & Warren.
1987 — Towers Perrin is established as the umbrella name for the firm. Revenues surpass $500 million as staff grows to 4,000 and worldwide clients reach 8,500.
Innovations: Pioneer Point-of-Service plans to help employers control health care costs and improve quality of health care delivery.
Tillinghast recommends that people in need, including the elderly and those with severe illnesses, be allowed to cash in or borrow against their life insurance policies — a suggestion adopted by the industry.
Tillinghast publishes a paper on a performance measurement methodology that becomes the precursor to embedded value, now widely used in the life industry.
The 90s: Moving toward the millennium
1991 — Towers Perrin Administration Services (TPAS) is formed to handle the strain that benefit and vendor administration activities have placed on clients and quickly becomes one of Towers Perrin’s fastest growing businesses.
1995 — The firm acquires Kinsley Lord, a British change management consulting firm.
1996 — Income surpasses $1 billion.
Innovations: The '90s marked the opening and expansion of the National Employee Benefit Service Center (NEBC) to provide administrative outsourcing services.
Developed Retirement Financial Management, a coordinated approach to managing the benefit design, funding, investment and accounting of defined benefit plans.
Developed Total Rewards, a holistic way of looking at pay and benefits and using them to drive employee performance.
Tillinghast completes groundbreaking work in asbestos liability projections.
Created the Professional Development Institute to provide best-in-class benefit training to benefit and HR professionals.
Executive forums and learning centers bring clients and consultants together for two days of discussion and intensive planning around HR and business issues.
Tillinghast authors a pioneering paper on dynamic financial analysis for property/casualty reinsurers for the Casualty Actuarial Society.
2000 — Today: Acquisitions, partnerships and alliances
2000 — Acquired Pegasus, which designs innovative reinsurance products for clients around the world.
2001 — The firm formalizes strategic relationships with nine key organizations, including JP Morgan/American Century and MEDSTAT Group.
2002 — Shenzhen, China, joins the roster of Towers Perrin office locations.
2002 — Acquired Denis M. Clayton & Co., Ltd., a British insurance and reinsurance intermediary and consultancy, and acquired an 85% share of Classic Solutions, a financial modeling software company.
2003 — New strategic acquisitions include Delphi Consultants, a service provider specializing in implementing the SAP human resource module.
2003 —Launched Executive Compensation Resources, the data collection, analysis, research and information services unit of the Executive Compensation practice.
Today — the firm has:
$1.5 billion in gross revenues (2003)
79 offices in 24 countries
Towers and Perrin are known for their outstanding end to end solutions in three fields namely Human Resources, Re-insurance,Tillinghast.The rise of this firm since 1917 is described below:
In 1917, H. Walter Forster, founder develops the first private pension plan, for Union Carbide and Carbon Corporation.
The 30s: TPF&C becomes a reality
March 1, 1934 — Towers, Perrin, Forster & Crosby opens for business in Philadelphia with a Reinsurance Division and a Life Division. Employees number 26 and first-year income is less than $200,000.
Innovations: The Reinsurance division is instrumental in developing syndicates to provide additional capacity in London as a way of offsetting a worldwide reinsurance shortage.
The 40s:
1946 — The Life Division becomes the Pension Division. TPF&C opens its second office (Chicago).
1949 — TPF&C opens an office in New York City and firmwide employment reaches 120.
Innovations: The Pension Division publishes its first TPF&C Pension Tax Manual, which quickly becomes a standard U.S. Internal Revenue Service reference source on pension tax law.
Towers and Perrin informs informs clients of trends and regulations in the areas of pensions and benefits.
The 50s: Global expansion
1952 — The firm’s first communications consulting unit is formed. Total income reaches $2 million.
1956 — The first non-U.S. office opens in Montreal and the Pension Division becomes the Employee Benefit Plan Division as a first step toward marketing a broadening range of consulting services.
1959 — Firm income reaches $4 million.
Innovations:Towers and Perrin holds the credibility of producing the first personnel manual, which becomes the prototype for companies that want to develop formal benefits descriptions for their employees.
Tillinghast develops a prize-winning paper on discounted cash flow methodology that becomes an industry standard for pricing life insurance products and companies.
The 60s:
1962 — Introduce compensation and organization consulting services.
1965 — Brussels becomes the firm’s first office outside of North America.
1969 — The firm opens its first office in London. Income more than triples during the decade to $14 million and staff more than doubles to almost 500.
Innovations: Established a centralized, six-month training program for new consultants.
We begin a formalized research program to benefit our clients.
The consulting division focuses on expanding its services to clients, with an emphasis on direct and indirect compensation, the precursor to Total Rewards.
The 70s: Growth and prosperity continue
1974 — The firm’s first Latin America office opens in Caracas.
1979 — Opened first Far East office in Hong Kong. Total revenues reach $88.4 million — almost six times the 1970 level — and staff tops 1,300.
Innovations: The Human Resource Information Systems (HRIS) practice is established to support employers’ rapidly growing and increasingly complex HR needs.
Tillinghast suggests a practical approach for developing universal life products that is adopted by the industry. By 2003, universal life accounts for 30% of all life insurance products sold in the U.S.
The 80s:
1980 — Firmwide income surpasses $100 million.
1982 — The firm expands into Australia by acquiring Palmer Trahair Owen & Whittle, with offices in Brisbane, Melbourne and Sydney.
1983 — Merged with Cresap, McCormick and Paget, known for strategy, human resource and management processes consulting, creating a new general management services division.
1984 — The Tokyo office opens. Fifty years after founding, income surpasses $200 million.
1986 — The firm merges with Tillinghast, Nelson & Warren.
1987 — Towers Perrin is established as the umbrella name for the firm. Revenues surpass $500 million as staff grows to 4,000 and worldwide clients reach 8,500.
Innovations: Pioneer Point-of-Service plans to help employers control health care costs and improve quality of health care delivery.
Tillinghast recommends that people in need, including the elderly and those with severe illnesses, be allowed to cash in or borrow against their life insurance policies — a suggestion adopted by the industry.
Tillinghast publishes a paper on a performance measurement methodology that becomes the precursor to embedded value, now widely used in the life industry.
The 90s: Moving toward the millennium
1991 — Towers Perrin Administration Services (TPAS) is formed to handle the strain that benefit and vendor administration activities have placed on clients and quickly becomes one of Towers Perrin’s fastest growing businesses.
1995 — The firm acquires Kinsley Lord, a British change management consulting firm.
1996 — Income surpasses $1 billion.
Innovations: The '90s marked the opening and expansion of the National Employee Benefit Service Center (NEBC) to provide administrative outsourcing services.
Developed Retirement Financial Management, a coordinated approach to managing the benefit design, funding, investment and accounting of defined benefit plans.
Developed Total Rewards, a holistic way of looking at pay and benefits and using them to drive employee performance.
Tillinghast completes groundbreaking work in asbestos liability projections.
Created the Professional Development Institute to provide best-in-class benefit training to benefit and HR professionals.
Executive forums and learning centers bring clients and consultants together for two days of discussion and intensive planning around HR and business issues.
Tillinghast authors a pioneering paper on dynamic financial analysis for property/casualty reinsurers for the Casualty Actuarial Society.
2000 — Today: Acquisitions, partnerships and alliances
2000 — Acquired Pegasus, which designs innovative reinsurance products for clients around the world.
2001 — The firm formalizes strategic relationships with nine key organizations, including JP Morgan/American Century and MEDSTAT Group.
2002 — Shenzhen, China, joins the roster of Towers Perrin office locations.
2002 — Acquired Denis M. Clayton & Co., Ltd., a British insurance and reinsurance intermediary and consultancy, and acquired an 85% share of Classic Solutions, a financial modeling software company.
2003 — New strategic acquisitions include Delphi Consultants, a service provider specializing in implementing the SAP human resource module.
2003 —Launched Executive Compensation Resources, the data collection, analysis, research and information services unit of the Executive Compensation practice.
Today — the firm has:
$1.5 billion in gross revenues (2003)
79 offices in 24 countries
more than 8,000 employees.
Innovations: Tillinghast and Reinsurance consultants write a seminal paper on the effects of terrorism after 9/11.
Tillinghast analyzes market-consistent valuations and embedded value as methods for determining the true value of insurance companies.
Health & Welfare develops the first consumerist approach for managing health care costs.
Launhced the Work Experience Study, a new method for determining employees’ feelings about their jobs and the workplace.
Developed the Global Cost and Risk Management Channel, a Web-based system that generates daily valuations and forecasts of a postretirement benefit program’s financial conditions and annual cost.
Innovations: Tillinghast and Reinsurance consultants write a seminal paper on the effects of terrorism after 9/11.
Tillinghast analyzes market-consistent valuations and embedded value as methods for determining the true value of insurance companies.
Health & Welfare develops the first consumerist approach for managing health care costs.
Launhced the Work Experience Study, a new method for determining employees’ feelings about their jobs and the workplace.
Developed the Global Cost and Risk Management Channel, a Web-based system that generates daily valuations and forecasts of a postretirement benefit program’s financial conditions and annual cost.
