Unpacking the client(s): Constructions, positions and client–consultant dynamics

Research on management consultancy usually emphasizes the role and perspective of the consultants. Whilst important, consultants are only one element in a dynamic relationship involving both consultants and their clients. In much of the literature, the client is neglected, or is assumed to represent a distinct, immutable entity. In this paper, we argue that the client organisation is not uniform but is instead (like organisations generally) a more or less heterogeneous assemblage of actors, interests and inclinations involved in multiple and varied ways in consultancy projects. This paper draws upon three empirical cases and emphasizes three key aspects of clients in the context of consultancy projects: (a) client diversity, including, but not limited to diversity arising solely from (pre-)structured contact relations and interests; (b) processes of constructing ‘the client’ (including negotiation, conflict, and reconstruction) and the client identities which are thereby produced; and (c) the dynamics of client–consultant relations and how these influence the construction of multiple and perhaps contested client positions and identities.     

The Consultancy Process — An Insecure Business?

This paper examines the practices and perceptions of management consultants and their clients. The existing literature, which emphasizes managerial anxiety in accounting for the persistent use of consultants and, relatedly, the transience of management ideas is critically developed. It is argued that such accounts tend to be abstracted from the power relations of organizations and capitalism and to portray management as passive victims of confident consultants. An alternative interactive model is proposed, which is based on reciprocal and self-defeating concerns of clients and consultants to secure a sense of identity and control. This is explored empirically, highlighting the hitherto neglected active role of managers in resisting consultancy and the pressures and anxieties experienced by consultants. The account selectively draws on secondary sources as well as interview, documentary and survey research of IT strategy consultants and clients in the UK financial services sector.     

Assessment and selection of management consultants: A comparative cognitive study between small- and large-scale companies

This paper explores alternative ways of evaluating and ultimately hiring a generalist consultancy for short- and medium-term projects, and how this is shaped by the size of the clients’ company. What buying factors do managers of small and large firms have in mind when hiring consultants for their projects?Instead of employing surveys incorporating predefined buying factors based on what the researchers think would be important, a cognitive mapping methodology - the repertory grid technique - is applied to investigate the underlying phenomena. Using the repertory grid technique to draw mental models is a novel research technique within the supply management field. Recent behavioral supply chain management research found the behavior of managers to be critically influenced by mental models: the lenses through which managers perceive, simplify and interpret the world.Results show differences between the buying factors used in small- and large-scale companies: managers of large companies are more ‘reputation and outcome-oriented’ and managers of small businesses are more concerned with ‘how the services are rendered’. However, both constituents stressed the importance of expertise, quality and the relationship between the client and the management consultancy, although the character of such a relationship differed between small- and large-scale firms. Results also point out criteria that managers of small and large companies employ to discriminate between good and poor performing consultancies and to judge service delivery. The practical implications for both companies hiring consultancies and the consultancy companies are discussed. For consultancies, our findings can help tailoring their efforts to a differing clientele when marketing and selling their services. For companies hiring consultancies, fixating too much on particular buying factors may lead to biased decisions.     

Careers and temporal flexibility in the new economy: an Anglo‐Dutch comparison of the organisation of consultancy work

Knowledge workers are widely considered to represent the vanguards of a new employment era, characterised by a greater degree of balance in the relationship between the employer and the knowledge worker. This fundamental shift in power relations is expected to lead to the emergence of a new group of so‐called ‘free’ or empowered portfolio workers, who share boundaryless career arrangements and internationally ‘universal’ forms of flexibility. However, such propositions have been made without extensive comparative research. This paper therefore examines the organisation of knowledge worker careers and the nature of the temporal flexibility available to knowledge workers through an Anglo‐Dutch case‐study of a multinational consultancy firm. The data collected by this study provides little evidence to support the notion of free/boundaryless career models and demonstrates that national context has a significant impact on the construction of consultancy careers and the availability, level and form of flexibility offered to consultants.     

‘Control – What Control?’ Culture and Ambiguity Within a Knowledge Intensive Firm*

ABSTRACT This paper explores the distinctive culture that existed within a knowledge‐intensive firm (KIF) and also attempts to explain the emergence and effects of this culture. The findings are based on a detailed case study that was conducted over two years within a consultancy firm that created and applied scientific knowledge and expertise to the invention of solutions for clients. The firm employed highly educated scientists, considered ‘leading’ in their respective disciplines and project work was inherently fluid, complex, and uncertain. These kinds of ‘knowledge workers’, and this kind of work, are expected to demand high levels of autonomy. This creates complex managerial dilemmas around how to balance autonomy with control and uncertainty and flexibility with efficiency. The analysis shows how a strong culture based on an acceptance of ambiguity (e.g. in roles, power relations, organizational routines and practices) promoted the development of a loyal, committed, effective workforce and sustained a fluid and flexible form of project working over time. Critically, ambiguity allowed individuals to sustain multiple identities as both ‘expert’ and ‘consultant’. This, coupled with a corporate identity premised on ‘élitism’, helped to maximize commitment to the work and minimize tensions between control and autonomy. Thus the culture that embraced ambiguity (a consensus that there would be no consensus) engendered a form of normative control whereby consultants operated freely and at the same time willingly participated in the regulation of their own autonomy.     

SOME FACETS OF THE RELATIONSHIP BETWEEN CONSULTANTS AND CLIENTS IN ORGANIZATIONS

Although frequently represented as a critical aspect of consultancy, the relationship between consultants and their clients and its relevance to the achievement of successful outcomes are subjects to which few writers have devoted serious attention. In an earlier piece of research, the author concluded that an ‘interdependent’ relationship was likely to be an important factor in successful consulting assignments. He identified eight facets of this type of relationship. This paper describes how that theory was tested when three consultants, together with a number of their clients, explained why they thought their work together had been successful. The cases illustrate both the ways in which the relationships were built and the extent to which they were perceived as having been important ingredients in the outcomes achieved. The relationships described were characterized by high levels of mutual trust and interaction as well as contingency on the part of the consultants. In several respects the relationships were seen as interdependent. A feature of this study was that the extent to which the consultants found the research useful in a personal sense seemed to depend on the quality of the relationship between the author and the consultants. In the cases described the exercise seems to have been mutually beneficial. In another example this seems not to have been the case and the explanation seems to lie at least partly in a lack of interdependence.     

THE ROLE OF MANAGEMENT CONSULTANTS IN THE DEVELOPMENT OF INFORMATION TECHNOLOGY: THE INDISSOLUBLE NATURE OF SOCIO-POLITICAL AND TECHNICAL SKILLS*

This paper explores the role of management consultants in the development of information technology (IT) in organizations. Contending that the process of IT systems development is characterized by the exercise of power, the central theme of the argument concerns the indissoluble nature of the technical and socio-political skills inherent in IT consultancy practice. IT consultancy practice is not just socio-political when winning a contract - the sales pitch - and technical when developing an IT system. Rather, socio-political skills centred on the mobilization of discursive and symbolic resources are an inherent part of the construction of such systems.     

A control rule for recruitment planning in engineering consultancy

The most valuable asset of a professional service firm is its people. Owing to the high labor turnover, staffing decision is very critical in its operations. We take engineering consultancy as a professional service and emphasize the importance of developing knowledge stock of skilled consultants in a planned manner for efficient productivity management. Our focus is management of knowledge-mix, which is the mix of consultants at different productivity levels. Our model is designed to determine the steady-state number of consultant-mix to meet demand at a desired service level. This is done through the use of control theory and chance constrained programming.      

Knowledge transfer across permeable boundaries: An empirical study of clients’ decisions to involve management consultants

We investigate the relationship between the knowledge requirements of projects and clients’ decisions whether to procure services from external management consultants for the execution of these projects. Using data from interviews with client decision-makers regarding the execution of 86 projects, we find that knowledge requirements are strongly associated with the decision whether or not to involve external consultants. The results highlight the closeness of the relationships between clients and consultants, supporting Kitay and Wright's [Kitay, J., & Wright, C. (2004). Take the money and run? Organisational boundaries and consultants’ roles, The Service Industries Journal, 24(3) 1–18] view of the permeability of the boundaries between many client organizations and their consultants. The findings also confirm our expectation that clients use the services of external management consultants in order to procure functional or industry-specific knowledge which consultants can pool and apply efficiently across many projects.     

The coalescence between synergies and conflicts of interest in a top consultancy firm: an analysis of the implications for consultants' attitudes and behaviours

The management of human resources represents a critical strategic function for consultancies. For such organisations, the HRM literature aligned to the resource‐based view prescribes practices that centre on strengthening the relationship between a consultancy firm and its staff. However, this insular framework fails to take adequate account of consultants' engagement with external actors, particularly clients. This article explores the interplay between the synergies and conflicts of interest generated by the relational environment in which consultants operate and the implications of these tensions for consultants' attitudes and behaviours in a leading international consultancy firm. The findings from this study advance our understanding of the factors that affect the management of these key human resources and contribute to growing critiques calling for the refinement of the resource‐based view.     

RESEARCH AND CONSULTANCY: TOWARDS A CONCEPTUAL SYNTHESIS

This paper describes an investigation into some of the apparent similarities between what certain kinds of researchers and consultants do in organizations. Using a facet analysis approach (Foa, 1965), an instrument was devised with the purpose of identifying and delineating overlaps between organizational research and consultancy. Sixty-six British researchers and consultants took part in the study. The results highlight certain specific similarities and suggest that these may represent aspects of research and consultancy which are crucial to their success. The facets of the two activities which emerged from the study as being common are described by reference to the qualitative data which were generated by participants. A number of important implications for the successful conduct of research and consultancy are discussed with particular reference to the process of managing the relationship between investigators and those with whom they work.     

The ambiguities and tensions in creating and capturing value: Views from HRM consultants in a leading consultancy firm

Creating and capturing value in knowledge‐intensive organizations is often marked by a high degree of ambiguity. The resource‐ and knowledge‐based views of the firm assume that this ambiguity enhances an organization's competitive advantage, but do not acknowledge or address the problems and tensions it creates for employees. This study contributes to developing these views by providing new insights based on analyzing how HRM consultants perceive their contribution and standing in the context of this ambiguity. These findings shed light on the importance of addressing consultants' perceptions of this ambiguity in seeking to manage and motivate them to maximize the creation and appropriation of value for consultancy practices. © 2011 Wiley Periodicals, Inc.     

The influence of co-location in higher education institutions on small firms’ perspectives of knowledge transfer

Since 1980, the UK has experienced a dramatic growth in firms and employment in information–intensive business services, such as management consultancy and market research. Recent expansion of new and small firms operating in these sectors is the focus of a major ESRC–sponsored research project currently under way at Cambridge University Small Business Research Centre.

Small business service firms are able to compete successfully with large firms due to the imperfect nature of the market which characterizes business services demand and supply, together with specialization of expertise. The success of small business service firms depends on informal person–to–person networks, word–of–mouth recommendation and repeal business based on successful earlier assignments or personal contacts acquired, for example, while working in a large consultancy or market research company. This paper examines the types of networks utilized by small business service firms and argues that two distinct types exist: demand– and supply–related networks; the former involves links with clients, the latter links and co–operation between complementary small business service firms.     

Telling and selling the value of diversity and inclusion—External consultants' discursive strategies and practices

On the basis of a qualitative study of a subgroup of diversity professionals, external diversity and inclusion (D&I) consultants, we explore D&I consultants' discursive strategies and practices situated within organisational structures, relations, and interactions of power and knowledge. Theoretically, the research reveals how D&I consultants' own discursive strategies interact with existing organisational and societal discourses of diversity, incrementally shaping their continual evolution. A classification is developed, which sets out four approaches taken by consultants with regard to their discursive strategies in relation to clients. The findings suggest that HR practitioners need to work in tandem with external consultants to develop strategies to improve the status and legitimacy of diversity work if the field is to progress the organisational D&I agenda.     

Commodifying the Commodifiers: The Impact of Procurement on Management Knowledge

Current conceptualizations of the commodification of management knowledge prioritize the agency of knowledge producers, such as consultancies, but downplay the role of other actors such as intermediaries. Using a qualitative multi‐method study of the role of procurement in sourcing consultancy knowledge, we demonstrate how intermediaries also commodify management knowledge, thereby limiting the exchange value of that knowledge. Through our analysis we develop a more sophisticated model of the processes and consequences of knowledge commodification. This model clarifies and extends prior research by highlighting the role of commensuration, comparison and valuation, as well as the related tactics that consultants and client managers use to resist procurement's attempts to commodify management knowledge.     

Capabilities exchange through business interaction: An empirical investigation of a client–IT supplier relationship

This article focuses on the opportunities for capabilities exchange within a specific business-to-business context: the relationship between a client and an information technology (IT) supplier. Research on the features of this type of relationship, although fairly extensive, has focused on IT implementation issues, relationship between IT resources, organisation performance and competitive advantage, IT outsourcing relationships and definition of IT capabilities. However, our understanding of the context where IT capabilities are exchanged within consultancy projects and how this exchange emerges is rather limited. The paper aims to bridge this gap by adopting the Industrial Marketing and Purchasing (IMP) group's interaction approach as a tool for conducting an in-depth investigation of a case study to analyse the context, the parties and the interactions through which IT capabilities are exchanged. The research reveals that interpersonal relationships between users and consultants within consultancy projects are crucial to establish a long-lasting and stable relationship. As a result, during consultancy projects IT-related resources, in the form of IT physical infrastructures, human IT resources and IT intangible resources are exchanged and combined to create or enhance IT capabilities. Furthermore, we also claim that the success of such an exchange depends very much on the degree of social and interpersonal exchange.     

Gender,careers and flexibility in consultancies in the UK and the USA: a multi-level relational analysis

Management consultants are a core group of knowledge workers, and interest in their work and the organisational environment in which they operate has intensified. However, the role of policies at a national and organisational level in influencing gender regimes in this field of work remains unclear. This paper examines the organisation of careers and flexibility from the perspective of management consultants from the UK and US offices of two case study firms. The findings cast light on the role of macro- and meso-level policies together with the characteristics of the occupation and its client-focus in gendering careers and flexibility. These outcomes point to the need for the structures and policies supporting women and flexible working in these types of firms to be modified accordingly, particularly given that these firms make recommendations to clients nationally and internationally.     

The Stock Market Reaction to the Hiring of Management Consultants: A Signalling Theory Approach

Drawing from signalling theory, this study examines how the stock market reacts to the public announcement of the hiring of management consultants and whether it differentially values clients on the basis of their financial profitability and the brand‐name of the engaged consultant. An event study analysis of 118 client firms that publicly announced the hiring of management consulting firms finds that the stock market, on average, responded positively and significantly to the engagement news. Regression analysis further reveals that the stock market reaction tended to be the highest for client firms that had the highest profitability levels. In addition, the stock market reaction to the hiring announcement was not related to the consultant's brand‐name reputation; clients engaging the most reputable consultants (e.g. McKinsey & Company, Bain, Boston Consulting Group, Booz‐Allen Hamilton) did not realize any different market response than those clients that employed the other consultants. Overall, most client firms that publicly announced the hiring of management consultants experienced a rise in their market value and those that had the highest financial profitability realized the highest increase. Further, the findings imply that there may be boundaries to reputational spillover benefits in partnering relationships.     

The Consultant–Client Relationship: Critical Perspectives on the Management of Organizational Change

The management consultancy industry is attracting more and more attention. The critical literature in particular has questioned how a non-codified body of knowledge like 'consultancy' could become so apparently influential. The answering emphasis has been on the symbolic nature of consultant strategies and consultancy as a powerful system of persuasion. However, an emerging structural perspective has developed a rather different view, focusing on the limits of the industry discourse, and the constraints of a consultancy role defined largely by external forces. While it is useful to contrast the two perspectives – strategic and structural – they can also be viewed as complementary, and indeed a number of writers have been well aware both of the importance of consultant strategies and the context of consultancy work. In particular, they have explored the interaction between consultant and client, and called attention to factors like the countervailing power of client organizations and the uncertainty of the management task. The paper aims to contribute to this debate and draws on case studies of consultants' role in the management of organizational change – one of clients with considerable market power, and another of interdependency between consultant and client. The point stressed is that the consultancy process contains no 'necessary' structures (which may be implied by pairings such as the dependent client and indispensable consultant, or alternatively the resistant client and vulnerable consultant). Instead the consultant–client relationship is best regarded as part of an overarching managerial structure and a contingent exchange that assumes a variety of forms.