GCI Founding Member Andreas Aufschnaiter on then and now

Consulting is and always will be a people business. And as such, one thing matters above all else: people. Partner Andreas Aufschnaiter is someone who has truly understood this. As a founding member of GCI, he played a key role in shaping the firm’s core values. Acting with integrity and maintaining a professional demeanor are two of those values that apply today just as they did back then. In this interview, Andreas Aufschnaiter discusses what has changed since the firm’s founding in 1991—and how he is not just a high achiever in his career.

After completing your studies at the universities of Innsbruck and Venice, you began working as a consultant at Arthur Andersen & Co. in Vienna. You then went on to establish your own management consulting firm as a founding member of GCI. How and when did you decide to go into business for yourself?
The courage to go into business for myself took shape among the GCI founders during several rounds of discussions. The motto was “shared opportunities / shared risks.” We were happy to share successes as partners if, in return, the risks of loss—in our case spread across four people—would be manageable. In any case, this impetus from the very entrepreneurial-minded founding partners was decisive for me. On my own, I probably wouldn’t have dared to do it back then. My initial professional training in the rather risk-averse auditing industry was still too strong for that.

Quite a few successful founders were consultants before starting their own businesses. What makes management consultancies such good incubators for entrepreneurs?
Typically, a wealth of practical experience across a wide range of industries—and in a relatively short period of time. This leads to very steep learning curves, especially in the first few years as a consultant. I believe that, above all, structured and analytical thinking, combined with a knack for clear and understandable communication, are key success factors for founders. Both are systematically trained in management consulting firms.

Any advice for people who are currently thinking about starting a business?
In my opinion, anyone considering starting a business should talk to as many other founders and entrepreneurs as possible, regardless of whether they were successful or had to shut down their venture. There aren’t just “success stories,” and you learn at least as much from mistakes and setbacks. It also helps to have a mentor or a close sparring partner by your side with whom you can discuss all the key decisions during the startup phase. Above all, a solid understanding of the industry, relevant contacts, and financing experience are crucial!

Since GCI was founded in 1991, the market has changed significantly—in many places, demand is now shifting toward freelance management consultants and away from the big management consulting firms. How do you view this development?
In my observation, the consulting market has become more differentiated, specialized, and thus fragmented. Many tools and methods from the consulting industry of the 1980s and 1990s are now well-known and easily accessible even at the management level of many companies, including mid-sized firms. At the same time, rapid technological progress alone constantly creates new tasks and challenges for which external expertise and support are necessary—or at least beneficial—because they are efficient and help accelerate progress. In any case, I believe that in the future there will be both large global management consulting firms and many smaller and medium-sized boutique consultancies, as well as individuals operating within networks.

Speaking of radical market changes—50% of the Fortune 500 companies that were still on that list 20 years ago no longer exist today, and 75% of the companies that will be on the S&P 500 Index in 2020 are less than five years old. The pace at which companies come and go is constantly accelerating. Do you think the GCI will still be around in 30 years?
Yes. From 1991 to the present, the changes in the global economy have been significant, and our team has consistently succeeded in rising to the challenge and adapting. If the GCI team members continue to maintain and hone this ability, I am convinced that our services will still be in demand 30 years from now.

What makes you so confident?
Our compact size allows us to operate like a small, agile “speedboat.” Thanks to our close ties to our various industrial partners, we also stay closely connected to real-world practice and, by extension, to the realities of business. That keeps us sharp!

Consulting is generally considered a people business. Factors like trust play a major role in acquiring and executing consulting projects. How important do you think social skills are? Can they be learned?
First, they’re very important, and second, yes, you actually have to. Given the multitude of daily interactions that the digital world enables—and at the same time imposes on us—it’s not enough to be a nice person with great empathy “offline.” You also need the ability to navigate the digital world effectively and communicate appropriately. The former is perhaps more a matter of character or personality, but the latter can be acquired and continuously improved with experienced guidance—much like a language. I am convinced that trust can only be earned and maintained through consistently professional, ethical, and transparent conduct.

Have the requirements for consultants changed over the past 30 years?
Not fundamentally. Consultants still sell their services based on the “3 E’s” formula. This refers to expertise, experience, and engagement, weighted appropriately for each client or project. Nevertheless, it is clear that globalization has significantly increased the importance of languages, intercultural skills, and digital competencies. This is particularly true in the world of small and medium-sized enterprises, which have had to navigate enormous internationalization efforts during this period.

How does GCI meet this new set of requirements?
We must and will continue to focus on our own young talent and their development. Our younger colleagues already bring many of the aforementioned experiences to the table, e.g., from their studies, international internships, extensive travel, and a strong affinity for the digital world.

You are currently focusing on your role as spokesperson for the Executive Board of MS Industrie AG in Munich—the holding company of GCI. Do you ever miss working on projects with clients?
I am very happy when I can provide project-related input on selected topics. The operational experience I’ve gained over the past nearly 20 years in the private equity and industrial sectors is consistently helpful. GCI thrives on the fact that its ideas and concepts are feasible and ultimately implemented. This is demonstrably achieved more frequently and effectively when based on concrete practical experience within our own investment portfolio.

Do you miss Vienna?
Oh yes, the five years from 1987 to 1991 were—with the major upheaval of the opening to the East—extremely exciting and formative. Thanks to our GCI office in Vienna, I have the chance to visit this impressive city at least once a year and witness its development.

Consulting is known to be a field where overtime is common. How do you find a balance between your job and your personal life?
In my experience, it’s less about the extra hours or overtime these days, and more about the irregular distribution of work across weeks and months. This requires flexibility that extends into weekends and vacations. It can occasionally be a challenge for family life, but conversely, it also offers welcome free time during traditional office hours. I always find a balance to my job in the mountains, on the water, and while traveling.