Case | HBS Case Collection | May 1998 (Revised February 1999)

Diamond in the Rough (A)

by Thomas J. DeLong and Catherine M. Conneely

Abstract

Diamond Technology Partners, a consulting firm based in Chicago, was founded in 1994 by Mel Bergstein and Chris Moffitt, with investment from founding partners and Safeguard Scientifics. In April 1996, just after fiscal year-end, the two largest clients withdrew from projects representing 50% of the previous quarter's revenues. A few weeks earlier, management had put together a $50 million revenue forecast for the year, had hired 28 new employees to start the following September, and had promised employees year-end bonuses. Management also anticipated that the company would go public within the next 12 months. Bergstein wonders whether there is a future for Diamond.

Keywords: Technology; Entrepreneurship; Going Public; Crisis Management; Finance; Consulting Industry; Chicago;

Citation:

DeLong, Thomas J., and Catherine M. Conneely. "Diamond in the Rough (A)." Harvard Business School Case 898-115, May 1998. (Revised February 1999.)