LMU alumnus Roland Berger: Entrepreneur, strategy consultant, philanthropist

You were already a successful entrepreneur while still a student. Was that early entrepreneurial instinct something that came naturally to you?

Professor Roland Berger: I believe I always had a kind of “entrepreneurial gene,” because I found that entrepreneurship gave me the greatest possible freedom: freedom to shape ideas, be materially independent and, above all, contribute to society and be of value to others. For me, freedom was never an end in itself. It always went hand in hand with responsibility and the desire to create something.

How did you prepare yourself intellectually for this path?

At an early age, besides devouring every novel by Karl May, I read the biographies of entrepreneurs. They impressed and motivated me, but they also made me aware of the tremendous opportunities and risks that come with an entrepreneurial life.

I was always interested in how people assume responsibility, make decisions and deal with uncertainty. You always have to be prepared for the unexpected. This mindset shaped me early on.

About Roland Berger
Roland Berger (born 1937 in Berlin) is the founder of Roland Berger Strategy Consultants, one of the world’s leading strategy consulting firms. After studying business administration at LMU, he grew the firm into a global partnership with around 4,000 employees. Since 2008, the Roland Berger Foundation has supported talented children from socially disadvantaged families on their journey from elementary school through to high school graduation.

To what extent did your family background influence you?

My parents had a profound influence on me and played a role in my entrepreneurial path. Despite the tragic aspects of his life, my father successfully managed a large company. My mother ran the business operations of a major furniture store in Munich. She was also the one who supported me financially when I founded my laundry business as a student. And it was she who raised me to become a creative and successful leader and entrepreneur. She always believed in me and was both emotionally and practically a vital source of support.

How did you manage the dual burden of studying and running a business?

Studying came easily to me, partly because—as tests have since confirmed—I have an above-average IQ. In addition, throughout my school and university years, I systematically trained my memory.

My studies were not limited to business administration. I also attended lectures in history with Franz Schnabel, theater studies with Arthur Kutscher and philosophy with Romano Guardini. In this way, I pursued something like a course in general studies—a broad, interdisciplinary education. And such breadth was crucial for me. Having such a wide-ranging knowledge gives you an advantage over narrowly specialized experts.

What kind of memory training did you practice?

I trained myself to consciously reverse engineer chains of thought—an exercise that strengthens the memory, disciplines the thinking and helps you understand complex interrelationships.

You were already a successful entrepreneur. Why pursue a degree in business administration at all?

Because I was convinced that entrepreneurial activity must rest on a solid foundation. To understand business, you have to understand the mechanisms of labor, capital and knowledge. And you have to recognize that knowledge, embodied in technology, is the principal driver of economic development.

Looking back, both my formal studies and the broader educational opportunities were formative. It was never an option for me to abandon my studies in favor of immediate full-time entrepreneurship. On the contrary, my academic education is what enabled me to move into self-employment. It laid a foundation of knowledge and values that, for me as a humanist, continue to guide my ethical outlook to this day.

At some point, your focus shifted to consulting. What was the turning point?

I always asked myself: What are my strengths and what do I really enjoy? In management consulting, I was able to combine both intellectual challenges and entrepreneurial activity.

An unexpected opportunity arose through a customer at my laundry business. She suggested I contact her son, who worked at Pietro Gennaro Associati (PGA) in Milan. I did not hesitate: I traveled to Milan, introduced myself and was hired. That gave me the opportunity to learn the consulting business from the ground up, working on projects in Italy and the United States.

I learned analytical and creative problem-solving techniques, how to acquire clients and work professionally with them, and how to work effectively with experienced consultants. I soon realized that consulting is far more than analysis and strategy. It also raises essential questions: How important is sensitivity in dealing with people? How crucial are communication skills and personality?
Consulting is not only about solving problems: It is about building lasting human relationships.

The German business newspaper Handelsblatt once called you “consultant to the nation”. Given your international presence, wouldn’t “consultant to the nations” be more accurate?

During my active years, I did indeed advise numerous top executives of global companies, including Ferdinand Piëch of Volkswagen, and Alfred Herrhausen and Joe Ackermann of Deutsche Bank. I also provided pro bono advice to leading politicians internationally, including German chancellors Helmut Kohl, Gerhard Schröder and, at the beginning of her tenure, Angela Merkel. At the European level, I advised European Commission presidents such as Romano Prodi, José Manuel Barroso and Jean-Claude Juncker. I also worked for Japan’s Ministry of International Trade and Industry (METI).

When you set up Roland Berger, what did you consciously do that was different to other consulting firms?

When I founded Roland Berger, the big names in consulting were primarily US firms. I essentially started out as a one-man operation.

Our competitors mostly had a strong financial orientation. We focused above all on substance. It was important to us not to work merely for companies, but with them—with their leadership teams and employees. We didn’t just deliver concepts: We supported their implementation with creative and innovative ideas and methods.

Also, we always firmly believed that broad-based knowledge outweighs early specialization. I never wanted young consultants to specialize immediately in one industry or topic. First, they should get to know everything they could about the business world.

Looking back, which decisions had the greatest impact—positive or negative—on your career?

The founding of Roland Berger Strategy Consultants and its growth from a one-man firm to a global partnership with more than 4,000 employees were defining milestones. Equally significant was when Deutsche Bank stepped in as a shareholder and, ten years later, when my partners and I repurchased its shares.

Another far-reaching engagement was helping to establish and advise the Treuhand, or trust agency, whose mission was to transition East Germany’s planned economy to a social market economy with competitive enterprises.

How has the role of management consultants changed?

Their fundamental aspiration—to meet or exceed clients’ expectations—has not changed at all. But the number of providers has grown significantly and has become much more diverse. The spectrum ranges from highly specialized individual consultants to mid-sized partnerships to global auditing firms and technology consultants such as Accenture.

The content tackled in the consulting space, too, has evolved. In addition to individual executive advisory services, many problem-solving techniques are now increasingly standardized, so price often plays a decisive role in the award of contracts.

Technologically, the profession has been transformed by digitalization and artificial intelligence. Entry-level consulting tasks, as well as programming and coding, are increasingly automated. Today, only about ten to fifteen percent of project time is devoted purely to analysis. More than 80 percent is made available for developing solutions and concepts.

Yet one thing remains essential: the ability to understand, weight and contextualize analytical data. Technology provides the numbers. But people provide judgment, analytical strength, creativity, personality, communication skills—and above all values such as honesty, reliability, integrity, loyalty and discretion. Technology cannot replace any of these things.

Are careers like yours still possible today?

Yes, of course they are—more than ever. The world is more complex, dynamic and technologically disruptive. Because social, political and geopolitical changes occur so rapidly, there are tremendous opportunities for entrepreneurs and consultants. And to rise to these challenges, companies and governments increasingly require specialized capabilities that they can only access externally.

At the same time, we see economic weakness in Germany due to technological lag. That is why innovation and education must have the highest priority.

For many years, you have supported education and social cohesion through your foundation. What motivated your commitment to these issues?

I wanted to give something of lasting value back to the society that gave me so many opportunities. To me, education seemed most important because it is the key to everything and shapes the country’s future.

Given the unequal distribution of educational opportunities—which especially puts children from underprivileged and low-income families at a disadvantage—it became clear to me that reducing this inequality is the central challenge in our education system. The Roland Berger Foundation therefore focuses on supporting talented, hard-working children from socially disadvantaged families—from elementary school through to high school graduation.

The results are impressive: Of the approximately 1,400 scholarship recipients to date, about half are already studying at university, pursuing demanding professions or on the path to doing so.

What responsibility do successful entrepreneurs bear?

Their primary responsibility is to lead companies successfully—innovatively, profitably and with a focus on growth. That leads to innovation, jobs, prosperity and tax revenue. Profits should first be reinvested in the future of the company before some of them are paid out as dividends to the owners. Owners may invest or spend their dividends as they choose—but using them for the common good is, in my view, a moral obligation. This can take the form of foundations like mine or support for social institutions, culture, art and music, for example.

What would be your advice to young people aspiring to a similar path?

First, take an honest look at yourself: What am I particularly good at? What do I really enjoy? Only those who know both answers are prepared to go the “extra mile” that is needed for success.
It is equally important to recognize megatrends and innovations early on in order to choose professional and life paths that truly have a future.

Another fundamental prerequisite is the ability to genuinely love people. Anyone who wants to work well with colleagues, clients and employees must value and understand people. Lastly: It takes hard work, hard work and more hard work. Especially at the beginning of your career, it may be wise to devote more time and energy to professional development—albeit without neglecting personal relationships.

How important is academic education?

University graduates, on average, earn higher incomes and face lower unemployment risks. In purely material terms, a degree pays off. Beyond that, higher education encourages deeper learning, asking the right questions and systematic problem-solving capabilities. Universities cultivate these skills particularly well. They also bring you into contact with outstanding individuals—both professors and fellow students—who enrich your intellectual and social development in lasting ways.

Looking back at your life’s work, what do you hope will endure? And did you have a personal guiding principle?

Above all, I hope that the consulting firm I founded, the Roland Berger Foundation, its scholarship program, and my wife’s and my art collection will endure. I would like to be remembered as someone who always sought to be there for others and to shoulder responsibility. One guiding principle has shaped my work: “Master the details, but never lose sight of the big picture.”

On my gravestone, I could imagine having the words of Georg Wilhelm Friedrich Hegel: “The true essence of a person lies in their actions.” And on a very personal level, one quote by Theodor Heuss has accompanied me throughout my life: “The only manure on which nothing grows is pessimism.”