25 Years of Transforming Business

www.abacus-global.com

Asad Ali KhanFounder & President of Abacus

Senior Executive Leadership

CONTENTS

CHAPTER 1 | PAGE 07THIS BOOK IS DEDICATED TO THE:

CHAPTER 2 | PAGE 12

CHAPTER 4 | PAGE 19

CHAPTER 5 | PAGE 22

CHAPTER 6 | PAGE 25

CHAPTER 7 | PAGE 31

PAGE 34

PAGE 42

CHAPTER 3 | PAGE 15

DAWN

DEDICATION

ACKNOWLEDGEMENTS

NEW VISTAS

CHALLENGE AND TRIUMPH

REBIRTH AND METAMORPHOSIS

RELENTLESS REINVENTION

ABACUS TODAY

THE OLD MAN OF ABACUS

THE ASCENT

DEFINING VISION

Clients of Abacus with whom the Company has had the opportunity and pleasure to work withon some of the biggest and most challenging projects;

People and key stakeholders of Abacus whose hard work and commitment has made the Company what it is today;

Strategic Partners of Abacus whose synergistic collaboration has allowed Abacus to reach new heights of success;

Abacus is forever indebted to all three, and Abacus Legacy Book is a token of its appreciation.

This Legacy Book could not have been compiled without the guidance, wisdom and patience of Asad Ali Khan, President and Founder of Abacus,

who personally took time out to sit with the team and elaborate on his experiences;the supervision and editorship of Alliya Haidar, Executive Director,

whose longstanding association with Abacus added depth to the content;and Bilal Ahmed Khan, Communication Executive,

who had the unique privilege of compiling the history of Abacus in one place.

Page 07 | Chapter 1

reat things often start off small – the story of Abacus may be summarized in this one line. For a small startup firm to become the region’s leading professional services company in consulting, outsourcing and technology

through nothing but dedication and hard work is a commendable achievement. To do it in persistently adverse economic conditions, in a country located in a war torn region is rather remarkable. And then to become a market leader in all its respective fields in a mere 25 years is nothing short of miraculous. Abacus did all of this…and more. Late 80s was the time when Pakistan was under a dictatorial rule. The Soviet-Afghan war was at its peak and its spillover impact on security as well as the economy was becoming just too hard to ignore. It was a time when Management Consulting as a professional service was viewed very differently; consultants were primarily recognized as agents who would help secure a loan from the banks at a ‘commission’. Business decisions were taken on whims; every other person was jumping on the textile-boom bandwagon inspired by a certain neighbor or a relative who had struck it rich. Business acumen was getting rusty and outdated as practices were becoming run of the mill. Planning was a word that had long lost its meaning.

It was in these conditions that Asad Ali Khan, the Founder and President of Abacus, decided to move back to Pakistan so that his family, especially the children, could feel more connected to their motherland and roots. The decision to forsake an established life for personal and patriotic reasons was labeled nothing short of ‘madness’ by his aides and friends. Indeed, the idea to leave a settled life and job in the Middle East, a secure and certain future for him and his family and the opportunity to work with some of the biggest names in the business world did seem like it had a number of negative

tradeoffs. But Mr. Khan, a graduate in commerce (Honours) from Hailey College of Commerce and a Fellow Member of the Institute of Chartered Accountants in Australia, saw in this challenge, an opportunity which few people could see at the time. He saw the vacuum that existed in business management and planning; he saw the resilience and tenacity of the Pakistani people that had resulted in economic growth even under the most difficult circumstances; he saw an imminent return of democracy in Pakistan and an end to the cold war. And above all he saw an opportunity to implement his longtime dream of creating a leading management consulting firm that could support and transform businesses in an ever changing environment and strengthen Pakistan’s economy. The decision had been taken. It was now time to execute it. The name of the company had also been decided long ago. While still a student, on his way to Australia, Mr. Khan made a two-day stopover at Hong Kong, a well-known shoppers’ paradise. In order to encash his travelers’ cheques he headed for a bank at the airport. There the woman at the counter was making quick calculations using only a rectangular frame with beads sliding on wires. Upon inquiring, Mr. Khan discovered that this simple looking device could be used to find solutions to the most intricate mathematical problems in a matter of seconds. With his childhood memories of its simplicity, effectiveness and results, Mr. Khan knew that one day he would have his own company and it would be called Abacus.

Mr. Khan sent his family back to Pakistan in September of 1986 to return himself the following year. In the meanwhile, as per his instructions, his ever supportive wife Zahida Asad Khan looked for a suitable place for a small office and found a beautifully constructed quaint little house near Zafar Ali Road at 11-E, Gulberg III, Lahore. Thus began the implementation of Mr. Khan’s labour of love.

The house was rented and furnished, and Abacus was incorporated on May 18, 1987. Business development commenced the very same day. Soon an office boy was hired to run small errands and make coffee for the boss, a task previously performed by his thoughtful wife as she dropped by on her way. A telex machine, the time’s most commonly used device for international communication was installed in the

office. Mr. Khan knew that keeping in touch with the world and staying abreast with the latest global developments would be crucial for Abacus’ evolution. He also continued his extensive travels to Europe and the Middle East - to conclude his pre-Abacus projects, attend global conferences and seminars and of course promote the newly formed Abacus.

As expected, the business in the early days was slow. But Mr. Khan had not expected the wait to be so disquieting as the interim period between assignments stretched to months. Mr. Khan had now permanently relocated to Pakistan; burnt all his boats. There was no choice but to persevere and to make this young venture work. Day after day a determined young Mr. Khan would come to office sharp at 9 and follow a routine that was, on the face of it, convenient enough: sip a few cups of black coffee, read newspapers, meet friends, take phone calls from far-off associates, then go home early around 4 o’ clock, spend time with the family and play cricket with the kids. The prospects for Abacus were beginning to appear bleak.

The consulting landscape in Pakistan was quite unorganized at the time. It was dominated by accountancy firms and brief-case consultants. The accountants thought that they had a solution for every problem. The concept of industry experience or specialization was non-existent. For instance, HR domain was eclipsed by administration functions with no recognition of talent development, performance evaluation or succession planning. However, Mr. Khan continued to hold a firm belief that the current situation was untenable and the change was inevitable. Abacus launched into holding periodical training workshops for key leaders across industries to create awareness about global transformation in terms of best practices and processes and an attempt to influence the behavior of individuals. But these efforts were not expected to bring about any quick dividends.

"Mr. Khan knew that one day he would have his own company and it would be

called Abacus"

"He rolled up his sleeves and embarked upon the

assignment himself"

11 –E -1, Gulberg 3, Lahore:The first address of Abacus (1987)

The first office of Abacus was a quaint little place (1987)

Qasim Ali Khan with Air Marshall Zafar Chaudhry and Mushtaq Chaudhry at a staff dinner (1990)

Asad Ali Khan relaxing after a hard day’s work (1988)

Mr. and Mrs. Khan on a foriegn visit (1990)

An old saying suggests that when you really want something, the whole universe conspires to help you achieve it. As fate would have it, things took a turn for the better when Mr. Khan was on a tour to Europe where he met an old Lebanese associate at the Charles de Gaulle Airport. The person was Mr. Yazbek, Regional Head of ITT Sheraton Corporation, who told him that Sheraton was planning on opening a 5-star hotel in Lahore, and an economic feasibility for the project was required. Mr. Yazbek remarked that there was “no one better to do this project” than Mr. Khan due to the number of similar studies he had conducted earlier for Karachi, Riyadh, Baghdad, Basra and Bahrain for Horwath & Horwath (now Horwath, Hotel Tourism and Leisure) – the global leaders in hospitality consulting. The discussion became serious and before they parted that day, contact details and assurances had been exchanged.

On his return to Lahore, Mr. Khan held discussions with the local sponsor, Khalifa Saifullah, and signed the contract. The project involved extensive writing and report generation, so a stenographer-cum-typist was employed and a latest model Remington typewriter was purchased for the office. Utilizing his own experience and working to his own immaculate quality standards, he rolled up his sleeves and embarked upon the assignment himself. The project involved heavy research, analysis and presentations to stakeholders, and was completed over a period of four months in 1988. The first project of Abacus had been successfully delivered.

At public gatherings, people would inquire from Mr. Khan about what Abacus did, and he would patiently explain to them about corporate finance, financial management, business planning and HR services, and the advantages to gain from them by business entities. Having spent the better part of his career abroad, he stayed fully abreast with the latest technological advancements and developments in the business world. Being a fan and avid reader of the legendary Peter

Ducker, Mr. Khan also appreciated the value and importance of HR to the success of entrepreneurship. The only problem was that people confused HR with ‘Human Rights’. The unfortunate question of the consultant’s ‘cut’ or ‘commission’ also surfaced from time to time, much to his frustration. Hence a significant amount of time had to be spent educating clients on potential value addition through consulting and trying to change mindsets In many respects, therefore, Abacus may be credited for pioneering HR consulting in Pakistan, if not management consulting in its entirety.

They say that it is only in the darkest of moments that glory is found; for if there was no darkness, the true value of light could never have been realized, nor the desire for it understood. Tenders for projects kept appearing in newspapers and Mr. Khan kept submitting proposals without fail. Replies and answers came from time to time and people responded after seeing the name ‘Asad Ali Khan’ printed on the cover page, but the lack of track record for the company clearly counted against him.

One fine morning in 1989, Mr. Khan came across another tender. It was an assignment that entailed professional consulting and outsourcing services for a project and work that was very much his expertise. The party was Ebasco.Aepes.Iteco (a joint venture of USA companies) working on USAID-WAPDA Power Distribution Program in Lahore. Sleeves were rolled up yet again and track of time was intentionally lost for another time. When he was done with the proposal, Mr. Khan knew he had created a work of art. As he took a step back to admire his work, he wondered if there was a competitor who could develop a remotely comparable technical proposal. At the same time, however, he also knew that Abacus possessed no track record at the time and this could pose a serious disadvantage. Nonetheless, Mr. Khan was open and transparent and clearly stated in the proposal that whilst Abacus virtually had no track record but he himself brought a considerable experience and expertise to the table. And the proposal was submitted.

Time passed and he nearly forgot about that particular opportunity. A few months later as he walked in to his office uncharacteristically at around 10am, he noticed that his

secretary was in an unnerved state. According to her some Americans had come to the office earlier that morning, asked for him, and in his absence took the liberty of roaming around the office in various directions and then simply walking out without saying a word as to who they were and why and wherefrom they had come. Mr. Khan was left flabbergasted. He admonished the secretary and assuming that they were next door Americans who had come there by mistake, decided to leave the matter at that.

Around lunch he received a call - an American voice on the phone said, “Mr. Khan, congratulations, you have won the contract!” “Which contract?” a puzzled Asad Ali Khan inquired. It was then that they mentioned their name, Ebasco (subsequently acquired by Raytheon), and referred to the same proposal he had submitted many months ago. The American asked for contract signing that very afternoon. Mr. Khan rushed to their office around 3pm, read the terms and conditions over a cup of coffee, and signed the first large-scale project for Abacus which was to last for several years.

This was a God-sent opportunity which had been seized and converted into a significant breakthrough. Mr. Khan knew there and then that Abacus had arrived.

Gradually, Abacus began to penetrate deeper and win a series of consulting engagements both in the public and private sectors. These developments witnessed a sudden surge in capacity building within Abacus to attain enablement of service delivery. Hence the resource pool grew to a significant level, along with the strengthening of internal processes and support services.

Page 09 | Chapter 1

reat things often start off small – the story of Abacus may be summarized in this one line. For a small startup firm to become the region’s leading professional services company in consulting, outsourcing and technology

through nothing but dedication and hard work is a commendable achievement. To do it in persistently adverse economic conditions, in a country located in a war torn region is rather remarkable. And then to become a market leader in all its respective fields in a mere 25 years is nothing short of miraculous. Abacus did all of this…and more. Late 80s was the time when Pakistan was under a dictatorial rule. The Soviet-Afghan war was at its peak and its spillover impact on security as well as the economy was becoming just too hard to ignore. It was a time when Management Consulting as a professional service was viewed very differently; consultants were primarily recognized as agents who would help secure a loan from the banks at a ‘commission’. Business decisions were taken on whims; every other person was jumping on the textile-boom bandwagon inspired by a certain neighbor or a relative who had struck it rich. Business acumen was getting rusty and outdated as practices were becoming run of the mill. Planning was a word that had long lost its meaning.

It was in these conditions that Asad Ali Khan, the Founder and President of Abacus, decided to move back to Pakistan so that his family, especially the children, could feel more connected to their motherland and roots. The decision to forsake an established life for personal and patriotic reasons was labeled nothing short of ‘madness’ by his aides and friends. Indeed, the idea to leave a settled life and job in the Middle East, a secure and certain future for him and his family and the opportunity to work with some of the biggest names in the business world did seem like it had a number of negative

tradeoffs. But Mr. Khan, a graduate in commerce (Honours) from Hailey College of Commerce and a Fellow Member of the Institute of Chartered Accountants in Australia, saw in this challenge, an opportunity which few people could see at the time. He saw the vacuum that existed in business management and planning; he saw the resilience and tenacity of the Pakistani people that had resulted in economic growth even under the most difficult circumstances; he saw an imminent return of democracy in Pakistan and an end to the cold war. And above all he saw an opportunity to implement his longtime dream of creating a leading management consulting firm that could support and transform businesses in an ever changing environment and strengthen Pakistan’s economy. The decision had been taken. It was now time to execute it. The name of the company had also been decided long ago. While still a student, on his way to Australia, Mr. Khan made a two-day stopover at Hong Kong, a well-known shoppers’ paradise. In order to encash his travelers’ cheques he headed for a bank at the airport. There the woman at the counter was making quick calculations using only a rectangular frame with beads sliding on wires. Upon inquiring, Mr. Khan discovered that this simple looking device could be used to find solutions to the most intricate mathematical problems in a matter of seconds. With his childhood memories of its simplicity, effectiveness and results, Mr. Khan knew that one day he would have his own company and it would be called Abacus.

Mr. Khan sent his family back to Pakistan in September of 1986 to return himself the following year. In the meanwhile, as per his instructions, his ever supportive wife Zahida Asad Khan looked for a suitable place for a small office and found a beautifully constructed quaint little house near Zafar Ali Road at 11-E, Gulberg III, Lahore. Thus began the implementation of Mr. Khan’s labour of love.

The house was rented and furnished, and Abacus was incorporated on May 18, 1987. Business development commenced the very same day. Soon an office boy was hired to run small errands and make coffee for the boss, a task previously performed by his thoughtful wife as she dropped by on her way. A telex machine, the time’s most commonly used device for international communication was installed in the

office. Mr. Khan knew that keeping in touch with the world and staying abreast with the latest global developments would be crucial for Abacus’ evolution. He also continued his extensive travels to Europe and the Middle East - to conclude his pre-Abacus projects, attend global conferences and seminars and of course promote the newly formed Abacus.

As expected, the business in the early days was slow. But Mr. Khan had not expected the wait to be so disquieting as the interim period between assignments stretched to months. Mr. Khan had now permanently relocated to Pakistan; burnt all his boats. There was no choice but to persevere and to make this young venture work. Day after day a determined young Mr. Khan would come to office sharp at 9 and follow a routine that was, on the face of it, convenient enough: sip a few cups of black coffee, read newspapers, meet friends, take phone calls from far-off associates, then go home early around 4 o’ clock, spend time with the family and play cricket with the kids. The prospects for Abacus were beginning to appear bleak.

The consulting landscape in Pakistan was quite unorganized at the time. It was dominated by accountancy firms and brief-case consultants. The accountants thought that they had a solution for every problem. The concept of industry experience or specialization was non-existent. For instance, HR domain was eclipsed by administration functions with no recognition of talent development, performance evaluation or succession planning. However, Mr. Khan continued to hold a firm belief that the current situation was untenable and the change was inevitable. Abacus launched into holding periodical training workshops for key leaders across industries to create awareness about global transformation in terms of best practices and processes and an attempt to influence the behavior of individuals. But these efforts were not expected to bring about any quick dividends.

An old saying suggests that when you really want something, the whole universe conspires to help you achieve it. As fate would have it, things took a turn for the better when Mr. Khan was on a tour to Europe where he met an old Lebanese associate at the Charles de Gaulle Airport. The person was Mr. Yazbek, Regional Head of ITT Sheraton Corporation, who told him that Sheraton was planning on opening a 5-star hotel in Lahore, and an economic feasibility for the project was required. Mr. Yazbek remarked that there was “no one better to do this project” than Mr. Khan due to the number of similar studies he had conducted earlier for Karachi, Riyadh, Baghdad, Basra and Bahrain for Horwath & Horwath (now Horwath, Hotel Tourism and Leisure) – the global leaders in hospitality consulting. The discussion became serious and before they parted that day, contact details and assurances had been exchanged.

On his return to Lahore, Mr. Khan held discussions with the local sponsor, Khalifa Saifullah, and signed the contract. The project involved extensive writing and report generation, so a stenographer-cum-typist was employed and a latest model Remington typewriter was purchased for the office. Utilizing his own experience and working to his own immaculate quality standards, he rolled up his sleeves and embarked upon the assignment himself. The project involved heavy research, analysis and presentations to stakeholders, and was completed over a period of four months in 1988. The first project of Abacus had been successfully delivered.

At public gatherings, people would inquire from Mr. Khan about what Abacus did, and he would patiently explain to them about corporate finance, financial management, business planning and HR services, and the advantages to gain from them by business entities. Having spent the better part of his career abroad, he stayed fully abreast with the latest technological advancements and developments in the business world. Being a fan and avid reader of the legendary Peter

Ducker, Mr. Khan also appreciated the value and importance of HR to the success of entrepreneurship. The only problem was that people confused HR with ‘Human Rights’. The unfortunate question of the consultant’s ‘cut’ or ‘commission’ also surfaced from time to time, much to his frustration. Hence a significant amount of time had to be spent educating clients on potential value addition through consulting and trying to change mindsets In many respects, therefore, Abacus may be credited for pioneering HR consulting in Pakistan, if not management consulting in its entirety.

They say that it is only in the darkest of moments that glory is found; for if there was no darkness, the true value of light could never have been realized, nor the desire for it understood. Tenders for projects kept appearing in newspapers and Mr. Khan kept submitting proposals without fail. Replies and answers came from time to time and people responded after seeing the name ‘Asad Ali Khan’ printed on the cover page, but the lack of track record for the company clearly counted against him.

One fine morning in 1989, Mr. Khan came across another tender. It was an assignment that entailed professional consulting and outsourcing services for a project and work that was very much his expertise. The party was Ebasco.Aepes.Iteco (a joint venture of USA companies) working on USAID-WAPDA Power Distribution Program in Lahore. Sleeves were rolled up yet again and track of time was intentionally lost for another time. When he was done with the proposal, Mr. Khan knew he had created a work of art. As he took a step back to admire his work, he wondered if there was a competitor who could develop a remotely comparable technical proposal. At the same time, however, he also knew that Abacus possessed no track record at the time and this could pose a serious disadvantage. Nonetheless, Mr. Khan was open and transparent and clearly stated in the proposal that whilst Abacus virtually had no track record but he himself brought a considerable experience and expertise to the table. And the proposal was submitted.

Time passed and he nearly forgot about that particular opportunity. A few months later as he walked in to his office uncharacteristically at around 10am, he noticed that his

secretary was in an unnerved state. According to her some Americans had come to the office earlier that morning, asked for him, and in his absence took the liberty of roaming around the office in various directions and then simply walking out without saying a word as to who they were and why and wherefrom they had come. Mr. Khan was left flabbergasted. He admonished the secretary and assuming that they were next door Americans who had come there by mistake, decided to leave the matter at that.

Around lunch he received a call - an American voice on the phone said, “Mr. Khan, congratulations, you have won the contract!” “Which contract?” a puzzled Asad Ali Khan inquired. It was then that they mentioned their name, Ebasco (subsequently acquired by Raytheon), and referred to the same proposal he had submitted many months ago. The American asked for contract signing that very afternoon. Mr. Khan rushed to their office around 3pm, read the terms and conditions over a cup of coffee, and signed the first large-scale project for Abacus which was to last for several years.

This was a God-sent opportunity which had been seized and converted into a significant breakthrough. Mr. Khan knew there and then that Abacus had arrived.

Gradually, Abacus began to penetrate deeper and win a series of consulting engagements both in the public and private sectors. These developments witnessed a sudden surge in capacity building within Abacus to attain enablement of service delivery. Hence the resource pool grew to a significant level, along with the strengthening of internal processes and support services.

"When he was done with the proposal, Mr. Khan knew he had created a work of art"

"An American voice on the phone said, “Mr. Khan,

congratulations, you have won the contract!”

Page 11 | Chapter 1

Mr. and Mrs. Khan at an international conference in the US (1991)

The first Abacus Annual Dinner (1990) Asad Ali Khan conducted a series of awareness workshops (1990)

Asad Ali Khan with Australian High Commissioner and his wife (1994)

Page 13 | Chapter 2Page 12 | Chapter 2

Chapter: 2

THE ASCENTEveryone Wants to Live on Top of the Mountain,But All the Happiness And GrowthOccurs While You're Climbing it.Andy Rooney

ate eighties and early nineties was the time when the world was witnessing some massive changes on the technological and business front. It was a time of technological advancement, corporate restructuring, mergers and acquisitions; the world

had started its journey to become a global village. The ‘Big Eight’ of the audit and consulting world became the ‘Big Six’ in 1989 when Ernst & Whinney merged with Arthur Young to form Ernst & Young; and Deloitte, Haskins & Sells merged with Touche Ross to form Deloitte & Touche. In 1990 Coopers & Lybrand (in some major countries) merged with Deloitte Haskins & Sells to become Coopers & Lybrand Deloitte which in 1992 was renamed Coopers & Lybrand. In 1991 the World Wide Web had become successfully operational inside CERN through the efforts of Sir Tim Berners-Lee, and in 1993 Riku Pihkonen of Nokia had sent the world’s first SMS between two cell phones. Information Technology, or Technological Engineering as it was known back then, was beginning to make a difference in the world; to what extent it would do so, nobody could dare imagine. This continuing paradigm shift on the global theater was destined to have an indelible impact on the evolution of Abacus.

In pursuit of knowledge on the ongoing global transformation and its dissemination among Pakistan’s business circles, Abacus embarked upon a mission that would facilitate direct interface with the industry leaders. Mr. Khan made frequent visits to attend international conferences and seminars on the subject. One such stop was the Woldorf Astoria, a 47-story luxury hotel in Manhattan, New York. It was here on October 10, 1990 that Mr. Khan met with Paul Batchelor at the World Congress of Management Consultants. Paul was chairing a concurrent session on China, and at that time was serving as Head of Consulting in Europe, and Chairman of the worldwide consulting business of Coopers & Lybrand. He was pleasantly surprised to learn that Mr. Khan had also worked

with Coopers & Lybrand (C&L) for over five years in the Sydney Office. Upon conclusion of the Congress, both men met for a cup of tea in the Coffee Shop of Woldorf-Astoria, exchanged pleasantries and discussed the possibility of collaboration for Pakistan. Paul requested that it would be helpful if Mr. Khan could meet with his colleagues in London on his way back to Pakistan.

Mr. Khan transited through London and held extensive talks with Christopher Lowe, Partner and Head of South Asia; and Alan Barlow, Partner Consulting Group. It was then mutually agreed to take forward the dialogue with the understanding that C&L would commission a due diligence exercise of Abacus as a first step.

Coopers & Lybrand was founded in 1898 and had expanded rapidly to become one of the world’s largest accounting and consulting firms with offices around the world. C&L, ranking 3rd among the global ‘Big Six’ firms in 1990, was interested in expanding into Pakistan for consulting opportunities and Abacus seemed to provide the perfect platform. Alan Barlow arrived in Lahore on January 31, 1991 to undertake the due diligence study. His visit came at a time when the border tensions between Pakistan and India were at a high. The fact that Alan came to visit in such perilous times is a testament to his courage and fearlessness. His resolve was tested further when Lahore was jolted by an earthquake the same night and Alan had to seek shelter under the bed in his room at the top floor of Intercontinental Hotel and then run down the staircase, through to the lobby, in his pajamas.

Alan spent several days discussing Abacus’ mission and philosophy, reviewing project files, corporate documents and financial statements, meeting with several clients and people of good standing in the business community. And then he flew

back to London without saying a single word on the outcome of his visit.

Some months later, Mr. Khan received a telephonic call from Christopher Lowe announcing the decision to admit Abacus as an associate member of Coopers & Lybrand international network, and to join hands for consulting work in Pakistan. A worldwide formal announcement was made in October 1991: Abacus had gone global.

"Abacus embarked upon a mission that would

facilitate direct interface with industry leaders"

"A worldwide formal announcement was made in

October 1991; Abacus had gone global"

Page 15 | Chapter 3

Chapter: 3

Defining Vision“In business, three things are necessary: knowledge,temper, and time.”Owen Felltham

Christopher Lowe visiting Abacus Office in Lahore (1995)

C&L International Partners Conference, Frankfurt (1994)

Asad Ali Khan and Paul Batchelor met at Woldorf-Astoria, New York City (1990)

Abacus conducted a series of workshops across Pakistan (1992)

Page 17 | Chapter 3

n the 1990s, the style of running local businesses in Pakistan bore little resemblance to the best practices that were being exercised at the global level, where relentless forces of change were constantly at work altering the business landscape. Technology changes of that time were defying one’s imagination. A huge gap was visible

between local and international business standards. However, it was only a matter of time before profound changes began to occur across the industry and commerce in Pakistan as well.

Staying at the forefront of change was always going to be an arduous challenge. If Abacus as a firm had to make a substantial impact and play its part in local and global transformation, it was certain that this could not be done without first becoming a leading knowledge-based professional services firm – the only route to bringing a tangible and insightful change. Without this knowledge and understanding of fast-changing landscape and business environment, it would be practically impossible to capture the key perspective, stimulate the thought-process and debate about complex business issues facing prospective clients with the aim of resolving them. Abacus set out to re-align its organizational structure with the global approach. At the time of its birth, there existed only one practice area, Corporate Finance and Business Consulting. In 1992, two new independent verticals were created, namely, Human Resource Consulting and Information Technology Consulting. It was a defining moment in the business landscape of the country; no-one else in Pakistan had yet dared tread such risky paths, automatically elevating Abacus to the level of an industry pioneer.

Abacus was fully cognizant of the fact that investments would be required to build a team of highly skilled leaders

with rich experience and exposure to the best global practices. Abacus spent a considerable amount of time in identifying and recruiting the right leaders, understanding their value as the true assets. To keep up with the space constraints due to growing human resource, the adjacent identical house that had recently been vacated by an American firm was also acquired on rent. Once on board, Mr. Khan encouraged the new team members to develop go-to-market strategic plans. A very strict value system with the highest form of integrity and ethical framework was inculcated into Abacus culture right from the outset.

However, the pick of the finest available minds at Abacus was proving to be an expensive decision at this early juncture in Abacus’ lifecycle, as changing the client mindset regarding consulting was a rather slow process. Having the key leaders in place did not imply an immediate transformation of business culture in Pakistan. Many people could not see the value in human capital management and could not understand the logic behind information technology beyond revamping their financial and inventory systems. Lack of availability of off-the-shelf ERP solutions in Pakistan at the time also made the marketing task difficult. Abacus persisted and, in 1992, moved on to set up an in-house IT laboratory to develop bespoke integrated IT solutions across the supply chain.

It is through challenges and disappointments that one gains the most clarity, and with clarity comes conviction and the desire to move forward despite the obstacles. Soon after becoming a network firm of C&L, in 1992, Abacus identified a potential telecom privatization opportunity. A consortium was formed to bid for financial advisory, led by C&L. Asad Ali Khan from Abacus and Stuart Macintosh, Head of Telecom, from C&L London Office, delivered a

series of presentations to the Privatization Commission in Islamabad. It was a high profile opportunity with several international firms including investment banks vying for the project. The competition was intense. The C&L–Abacus Consortium made it to the top and ended up winning the race. The win made headlines within the Coopers & Lybrand network, establishing the credentials of Abacus as a firm in South Asia with capacity to support large-scale and specialized consulting opportunities.

The world was increasingly becoming quality conscious and it was apparent that Pakistan’s indigenous products were not keeping up with quality standards. Abacus seized this opportunity and established a new business vertical titled “Environmental & Quality Consulting Services” in 1994 followed by a series of workshops across Pakistan on the impact on exports from Pakistan after the unification of Europe. These workshops were supported by European Commission with a focus on major export sectors. The purpose was to provide an atmosphere to discuss problems and ways with businessmen and industrialists to improve exports with special focus on transformation and designing of various systems and processes according to the requirements laid down in ISO and Environment Quality Management Standards (QMS). Over the years to follow, almost every exporting business house in the country had no choice but to adopt the QMS. Once again, Abacus was at the forefront of this transformation.

More new opportunities emerged for Abacus with a sudden surge in demand for financial management systems and business process reengineering activities, which prompted Abacus to launch yet another vertical “Financial Management & System Consulting Services” in 1994.

"No-one else in Pakistan had yet dared tread such

risky paths"

"A very strict value system with the highest form of integrity and

ethical framework was inculcated into Abacus, right

from the outset"

"The win made headlines within the Coopers & Lybrand network, establishing the credentials of

Abacus as a firm in South Asia with capacity to support large-scale

and specialized consulting opportunities"

Ismail Bhayat in action (1995)

President Farooq Leghari at Abacus booth,UNIDO Exhibition (1995) Abacus workshops were attended by senior government officials and industry leaders (1994)

Asad Ali Khan at an Abacus Workshop with State Minister of Finance Makhdoom Shahabuddin (1994)

Muhammad Aamer Chaudhry, Chartered Accountant, England & Wales, had just returned from London after spending several years with KPMG. He was inducted to spearhead the newly formed vertical. In the same year, Alliya Haidar with an MBA in Corporate Finance and Marketing Strategy from Lahore University of Management Sciences (LUMS) joined Abacus in the restructured Corporate Finance Consulting Services area.

Also in 1994, C&L International Abacus sought assistance to extend the scope of relationship to audit, tax and advisory services. Asad Ali Khan & Co, a duly licensed firm by the Institute of Chartered Accountants of Pakistan, already existed with an office at the Cricket House Building in Lahore. A fresh strategic plan was drawn up and agreed with C&L to set up a new firm in the name and style of Coopers & Lybrand & Co in Pakistan with Christopher Lowe and Asad Ali Khan as partners in the new firm. Subsequently, in an attempt to rationalize the network, merger talks occurred and it was decided to merge Asad Ali Khan & Co into Coopers & Lybrand & Co, culminating into one audit/accountancy firm in Pakistan. Mr. Asad Ali Khan was appointed as the Chairman and Senior Partner of the firm.

Under the arrangements, Ismail Bhayat, Chartered Accountant (England & Wales), was seconded to Pakistan by C&L from its London Office. He arrived in Karachi in September 1994 to start a new office from scratch and commence practice. The primary role assigned to Ismail was to build, establish and strengthen the institutional capacity for assurance, audit, tax and business advisory practice in Pakistan.

Meanwhile, Abacus continued to make strides by winning large-scale consulting opportunities in conjunction with C&L, funded by bilateral and multilateral institutions such as the World Bank, DFID, European Commission, CIDA, UNIDO among others. Some major examples include the Project to Improve Financial Reporting and Auditing (PIFRA); Sales Tax Reform Project for the Federal Revenue Authority; and System Retransformation at the Saudi Telecom Company in Saudi Arabia. Abacus remained at the forefront in successfully formulating and implementing these reforms at these projects for over several years. The new and innovative business fields that Abacus had introduced, previously ignored by the business community, now began to win projects and deliver results.

Page 18 | Chapter 3

n the 1990s, the style of running local businesses in Pakistan bore little resemblance to the best practices that were being exercised at the global level, where relentless forces of change were constantly at work altering the business landscape. Technology changes of that time were defying one’s imagination. A huge gap was visible

between local and international business standards. However, it was only a matter of time before profound changes began to occur across the industry and commerce in Pakistan as well.

Staying at the forefront of change was always going to be an arduous challenge. If Abacus as a firm had to make a substantial impact and play its part in local and global transformation, it was certain that this could not be done without first becoming a leading knowledge-based professional services firm – the only route to bringing a tangible and insightful change. Without this knowledge and understanding of fast-changing landscape and business environment, it would be practically impossible to capture the key perspective, stimulate the thought-process and debate about complex business issues facing prospective clients with the aim of resolving them. Abacus set out to re-align its organizational structure with the global approach. At the time of its birth, there existed only one practice area, Corporate Finance and Business Consulting. In 1992, two new independent verticals were created, namely, Human Resource Consulting and Information Technology Consulting. It was a defining moment in the business landscape of the country; no-one else in Pakistan had yet dared tread such risky paths, automatically elevating Abacus to the level of an industry pioneer.

Abacus was fully cognizant of the fact that investments would be required to build a team of highly skilled leaders

with rich experience and exposure to the best global practices. Abacus spent a considerable amount of time in identifying and recruiting the right leaders, understanding their value as the true assets. To keep up with the space constraints due to growing human resource, the adjacent identical house that had recently been vacated by an American firm was also acquired on rent. Once on board, Mr. Khan encouraged the new team members to develop go-to-market strategic plans. A very strict value system with the highest form of integrity and ethical framework was inculcated into Abacus culture right from the outset.

However, the pick of the finest available minds at Abacus was proving to be an expensive decision at this early juncture in Abacus’ lifecycle, as changing the client mindset regarding consulting was a rather slow process. Having the key leaders in place did not imply an immediate transformation of business culture in Pakistan. Many people could not see the value in human capital management and could not understand the logic behind information technology beyond revamping their financial and inventory systems. Lack of availability of off-the-shelf ERP solutions in Pakistan at the time also made the marketing task difficult. Abacus persisted and, in 1992, moved on to set up an in-house IT laboratory to develop bespoke integrated IT solutions across the supply chain.

It is through challenges and disappointments that one gains the most clarity, and with clarity comes conviction and the desire to move forward despite the obstacles. Soon after becoming a network firm of C&L, in 1992, Abacus identified a potential telecom privatization opportunity. A consortium was formed to bid for financial advisory, led by C&L. Asad Ali Khan from Abacus and Stuart Macintosh, Head of Telecom, from C&L London Office, delivered a

series of presentations to the Privatization Commission in Islamabad. It was a high profile opportunity with several international firms including investment banks vying for the project. The competition was intense. The C&L–Abacus Consortium made it to the top and ended up winning the race. The win made headlines within the Coopers & Lybrand network, establishing the credentials of Abacus as a firm in South Asia with capacity to support large-scale and specialized consulting opportunities.

The world was increasingly becoming quality conscious and it was apparent that Pakistan’s indigenous products were not keeping up with quality standards. Abacus seized this opportunity and established a new business vertical titled “Environmental & Quality Consulting Services” in 1994 followed by a series of workshops across Pakistan on the impact on exports from Pakistan after the unification of Europe. These workshops were supported by European Commission with a focus on major export sectors. The purpose was to provide an atmosphere to discuss problems and ways with businessmen and industrialists to improve exports with special focus on transformation and designing of various systems and processes according to the requirements laid down in ISO and Environment Quality Management Standards (QMS). Over the years to follow, almost every exporting business house in the country had no choice but to adopt the QMS. Once again, Abacus was at the forefront of this transformation.

More new opportunities emerged for Abacus with a sudden surge in demand for financial management systems and business process reengineering activities, which prompted Abacus to launch yet another vertical “Financial Management & System Consulting Services” in 1994.

Muhammad Aamer Chaudhry, Chartered Accountant, England & Wales, had just returned from London after spending several years with KPMG. He was inducted to spearhead the newly formed vertical. In the same year, Alliya Haidar with an MBA in Corporate Finance and Marketing Strategy from Lahore University of Management Sciences (LUMS) joined Abacus in the restructured Corporate Finance Consulting Services area.

Also in 1994, C&L International Abacus sought assistance to extend the scope of relationship to audit, tax and advisory services. Asad Ali Khan & Co, a duly licensed firm by the Institute of Chartered Accountants of Pakistan, already existed with an office at the Cricket House Building in Lahore. A fresh strategic plan was drawn up and agreed with C&L to set up a new firm in the name and style of Coopers & Lybrand & Co in Pakistan with Christopher Lowe and Asad Ali Khan as partners in the new firm. Subsequently, in an attempt to rationalize the network, merger talks occurred and it was decided to merge Asad Ali Khan & Co into Coopers & Lybrand & Co, culminating into one audit/accountancy firm in Pakistan. Mr. Asad Ali Khan was appointed as the Chairman and Senior Partner of the firm.

Under the arrangements, Ismail Bhayat, Chartered Accountant (England & Wales), was seconded to Pakistan by C&L from its London Office. He arrived in Karachi in September 1994 to start a new office from scratch and commence practice. The primary role assigned to Ismail was to build, establish and strengthen the institutional capacity for assurance, audit, tax and business advisory practice in Pakistan.

Meanwhile, Abacus continued to make strides by winning large-scale consulting opportunities in conjunction with C&L, funded by bilateral and multilateral institutions such as the World Bank, DFID, European Commission, CIDA, UNIDO among others. Some major examples include the Project to Improve Financial Reporting and Auditing (PIFRA); Sales Tax Reform Project for the Federal Revenue Authority; and System Retransformation at the Saudi Telecom Company in Saudi Arabia. Abacus remained at the forefront in successfully formulating and implementing these reforms at these projects for over several years. The new and innovative business fields that Abacus had introduced, previously ignored by the business community, now began to win projects and deliver results.

"Abacus continued to make strides by winning large-scale

consulting opportunities in collaboration with C&L"

Chapter: 4

New Vistas“We all live under the same sky, but we don'tall have the same horizon”Konrad Adenauer

Page 19 | Chapter 4

Page 21 | Chapter 4

Abacus House, 4 Noon Avenue, became the new Head Office (1999)

The new office building was a modern, state of the art facility (1999)

Abacus Annual Staff Dinner (1997)

C&L Partners’ Conference, Brussels (1996) Pakistan Navy Dockyard – Quality Management project completion (1998)

PwC Consulting MEP meeting in progress at Abacus House (2000) C&L International Partners Conference, Frankfurt (1997)Beijing- Paris Car Rally - John Stuttard, Chairman C&L China,

with his vintage Rolls Royce in Lahore (1997)

ate nineties were witness to several new forces of change as they began to emerge on the global scene, shaping the future of business, and soon became profoundly influential. One could feel that the business world was at the brink of

being swept by epic change. Mergers, acquisitions, globalization, deregulation, unbundling and ring-fencing processes spurred up all around. Industries were dissolving and re-forming before our eyes, and technology continued to grow and develop in an exponential manner. These were compelling realities altering the profile of the real world.

Internet was rapidly becoming a public commodity and e-business was starting to be taken as a new, innovative but serious way for earning money. Google, Amazon, eBay and Yahoo! had all been established, ensuring themselves the first mover’s advantage. The ‘dotcom bubble’ was beginning to expand. All these developments reinforced the need for a knowledge economy. The new freedom and empowerment that was granted by technology to consumers, employees, corporations and entrepreneurs brought about a revolution in the ways and means of doing business. Talent, as a result, was beginning to find its worth; it became abundantly clear that victory will no longer be simply the right of corporations that could write the largest paychecks.

With due recognition to the significance of human capital management, another key HR specialist resource, Fatima Asad-Said, with an MBA degree in Human Resource, Finance and Management from LUMS was engaged and inducted into the HCM vertical in 1997.

Abacus recognized the fact that in a professional services firm the most important assets are its people. So, it went about in further strengthening its internal HR policies from retention,

training and succession perspectives and streamlining the finance and admin functions. Syed Ali Shaukat, one of the senior most consultants of Abacus working in the Corporate Finance Practice Area , was designated to head the Finance Department as Chief Finance Officer.

In the meantime, Coopers & Lybrand & Co, the audit and accounting arm of Abacus, continued to grow at an exponential rate. From a small base with one office and two partners in 1994 to a leading firm in the country with offices in all major cities of the country, five partners and 300 staff, in a span of less than five years was no mean feat.

In September 1997, the corporate world suddenly heard the news of a mega-merger. Coopers & Lybrand and Price Waterhouse announced plans to merge, creating the world’s largest international firm PricewaterhouseCoopers (PwC). This reduced the ‘Big Six’ to ‘Big Five’, dwarfing the then current leaders Andersen Worldwide by more than USD 2 billion in global revenue. In terms of fee ranking, C&L was ranked ahead of Price Waterhouse by almost USD 3 billion. The merger went through the regulatory approval process and successfully concluded by the end of 1998.

In Pakistan, the merger formalities were also initiated and completed by June 2000. Consequently, Abacus’ audit and accountancy arm ‘Coopers & Lybrand & Co’ was merged with A. F. Ferguson & Co. (the member firm of Price Waterhouse in Pakistan). Abacus being the consulting arm of PricewaterhouseCoopers, now PwC Consulting, was operationally integrated into the sub-theatre called MEP (Middle East Pakistan). an integral part of the EMEA Theater comprising Europe, Middle East and Africa.

With the rapid growth and expansion in business, Abacus felt a dire need for additional customized office space compatible with its requirements and image. So in 1997, work commenced on the rebuilding and renovation of a centrally located commercial building at 4-Noon Avenue, Main Canal, Lahore. The Abacus family moved into their new state-of-the-art, impeccably furnished office in March of 1999. The new office boasted over 200 work stations, 12 office rooms, meeting rooms, a massive library, conference and training rooms equipped with the latest technology, and allied supporting facilities. However, by 2006 this office too would run critically short of space and gradually two more offices and a training academy would be established in Lahore alone. In April 2000, Abbas Ali Khan, Chartered Accountant (England & Wales) with a Bachelor Degree in Computer Sciences from Oxford University, based in London with PwC, was seconded and inducted into Abacus’ business vertical of Information Technology Consulting Services.

With the operational integration into the MEP Region of PwC Consulting, Abacus’ key leaders and other resources were inducted not only into key leadership positions but also began to be deployed on projects across the Middle East. Abacus’ Consultants left a vivid impression of their excellent performance in all professional disciplines, and Abacus was being widely recognized as a formidable arm of MEP.

"Mergers, acquisitions, globalization, deregulation,

unbundling and ring-fencing processes spurred up all

around"

"Abacus, now PwC Consulting, was operationally integrated into the sub-theatre MEP, an

integral part of the EMEA Theater"

"Abacus consultants left a vivid impression of their

excellent performance in all professional disciplines"

Page 23 | Chapter 5

Chapter: 5

Challenge and Triumph“Whenever you see a successful business, someone once made a courageous choice”Peter Drucker

Page 22 | Chapter 5

he new millennium saw some of history’s biggest accounting scandals that redefined consulting and audit parameters for the entire world. Enron Corporation, an American energy giant that claimed revenues of nearly

USD 101 billion during 2000, employed approximately 20,000 staff and was awarded ‘America's Most Innovative Company’ for six consecutive years by Fortune Magazine, filed for bankruptcy. This was following the unearthing of a massive accounting scandal in late 2001, which revealed that Enron’s financial condition had been systematically misreported through a creatively planned accounting fraud by Arthur Anderson, one of the famed ‘Big Five’ who were giving Enron audit as well as consulting services. Enron was attributed as the world’s biggest audit failure of the time until WorldCom’s bankruptcy in July 2002 (also involving Arthur Anderson). The US Securities and Exchange Commission (SEC) initiated an investigation. Enron crisis raised the concerns whether auditors are sufficiently independent of their clients if their firms were at the same time also providing those same clients with costly advice.

The scandals led to the eventual dissolution of Arthur Anderson and a radical change in the regulatory framework. Sarbanes-Oxley Act was passed in July 2002 restricting public accounting firms from providing consulting services to their audit clients. The new legislation also increased the accountability of auditing companies to remain unbiased and independent of their clients.

The Sarbanes-Oxley Act turned out to be an enormous game-changer, dramatically affecting the accounting and consulting professions and impacting the largest accounting firms. The Act stipulated several services that would be "unlawful" if provided to a publicly held company by its auditor, including information systems design/implementation, appraisals or valuation services, management and human resources services, and so forth.

By this time, however, most global accounting firms, including PwC, had separated their consulting arms from their audit divisions in an attempt to restore confidence. PwC announced in June 2002 that its consulting arm that had been spun off and demerged as PwC Consulting, would be re-branded as 'Monday’ ahead of an Initial Public Offering. But then only a month later in July 2002, ‘Monday’ plans were dropped and it was announced that IBM would acquire PwC’s global business consulting and technology services unit for a bargain price of USD 3.5 billion in cash and stock. Ironically, only two years earlier, Hewlett-Packard had been in talks to acquire PwC Consulting in a cash and stock deal worth USD 17+ billion but the deal could not be consummated.

Sale of PwC Consulting worldwide to IBM, of course, implied Abacus’ sale as well. However, Pakistan was one of the very few countries within the PwC network where the stocks were still held by the local equity partners. Hence, Abacus had a choice of going with IBM or going independent.

These were testing times for Abacus. Abacus’ key leaders put their heads together and spent several days in evaluating both the options with their pros and cons. External forces and pressures from PwC began to mount, cautioning that Abacus may not be able to sustain itself if it did not go with the sale. On the other hand, there were apprehensions on the part of Abacus’ key leaders as to IBM’s potential conflict between hardware activities and consulting services. Secondly, IBM was specifically focused on technology and system integration areas, whereas the portfolio of Abacus was much more

diversified and went far beyond the technology and integration services offered by IBM. Thirdly, Abacus consulting business model was much more aligned to and compatible with the local market conditions.

Destiny is no matter of chance. It is a matter of choice. It is not something to wait for, but something to be seized. Abacus had a hard choice to make. Realizing that it is the choices we make that define our destiny, Abacus took the final decision not to go with the sale. PwC was disappointed, so was IBM who thought that Abacus was a prize-catch within the MEP region. Subsequently, IBM recruited almost the entire key IT staff of Abacus. This was a major set-back for Abacus. At the time, Abacus had only one office in Lahore and was left with a consulting staff of about 40 people. Abacus restored its name from PwC Consulting to Abacus Consulting in October 2003.

"The Sarbanes-Oxley Act turned out to be an

enormous game-changer"

"Abacus restored its name from PwC Consulting to Abacus

Consulting in October 2003"

"Realizing that it is the choices we make that define our destiny, Abacus took the

final decision not to go with the sale"

Abacus restored its name from PwC Consulting to Abacus Consulting (2003)Triumph after challenge (2003) Despite testing times, Abacus kept true to its aim of transforming businesses (2002)

Abacus senior leadership taking part in a capacity building conference, Islamabad (2002)

With Finance Minister Dr. Salman Shah, and President SAP South East Asia Eric MacDonald (2006)ITCN Asia, Expo Center, Karachi (2001)

Page 25 | Chapter 6

Chapter: 6

Rebirth and Metamorphosis“The strong survive, but the courageous triumph”Michael Scott