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

Power and the diffusion of management ideas:The Case of McKinsey & Co.

In studies of the diffusion or translation of management ideas, power is frequently implied but is rarely theorised explicitly. Moreover, when it is recognised, the focus is often on only one form of power. This can obscure how different forms of power relate to each other, shape idea diffusion and connect to different forms of resistance. Using Lukes’ classic framing of power, we explore the activities of a key agent in the diffusion of ideas – management consultancy – and one of the leading players in that field – McKinsey & Co. We draw on diverse, publicly available forms of data on three different management ideas to identify how different forms of power and resistance enable and constrain the diffusion of management ideas. Our study emphasises both the dynamic relations between different forms of power over time and the importance of acknowledging the unintended consequences of power. At the same time, by focusing on power dynamics mostly operating outside of consulting projects, we add to our understanding of the role of consultancy in the diffusion of management ideas more generally

The globalization of management consultancy firms: constraints and limitations

This paper is aimed at providing a framework for the analysis of organizational structures and processes in the global management consulting industry. Our basic question is why do global consulting firms exist? What distinctive advantages (if any) are they able to bring to their clients and the consulting task which cannot be achieved by ‘national’ firms? Consideration of this question leads us into alternative modes of internationalisation in this sector. Economists in the field of international business have long posed this question in relation to manufacturing firms (e.g. Dunning 1993). However, their answers tend to be limited to economic considerations and ignore the ways in which issues of organizational structure, power and processes impact on the internationalising strategies of firms. More recently other authors have posed the same question specifically in relation to professional services firms (Aharonhi 2000: Lowendahl 2000; Nachum 2000; Roberts 1998; 1999; 2004). These authors have argued that there are specific characteristics of professional services that require an adaptation of the dominant models of internationalisation. These relate to the distinctive interface between clients and suppliers in these contexts where co-presence and interaction is typically essential. This interaction in conditions where knowledge is ambiguous and/or clients may be less ‘knowledgeable’ than the professionals about the nature and quality of the services delivered has tended also to lead to national regulatory regimes controlling how some professional services are delivered, monitored and controlled. These factors have tended to militate against the globalization of professional services. However, in recent years, the development of professional services outside strong regulatory frameworks of practice (such as in the case of management consultancies and advertising agencies), the gradual decline of national regulatory regimes under pressures of ‘free trade’ and the increased international standardisation of certain forms of professional services (such as audits) has opened up more possibilities for the internationalisation of firms in this area. The general phenomenon of what Giddens (1990) has labelled ‘time-space distanciation’ in theory makes it easier to both maintain communication and control across widely spread national contexts and also to facilitate forms of cross-national team-building and cooperation. For all these reasons, the services sector in general and professional services in particular has seen a massive expansion of international activity over the last two decades. Bryson et al, for example state that ‘the value of world commercial services exports has increased some 3.5 times between 1980 and 1999’ (Bryson et al. 2004: 217). The 2004 World Investment Report from UNCTAD noted that ‘on average, services accounted for two-thirds of total FDI inflows during 2001-2, valued at some $500 billion’ (UNCTAD 2004: xx). Interestingly, the report went on to state that ‘as the transnationalization of the services sector in home and host countries lags behind that of manufacturing, there is scope for a further shift towards services’ (ibid.). This suggests that the organizational issues concerned with the internationalization of service firms have not disappeared. It is these organizational issues which lie at the heart of our concerns

Promoting solutions and co-constructing problems:Management consultancy and instrument constituencies?

The concept of ‘instrument constituencies’ has recently emerged in policy research to reflect actors and practices focused primarily on articulating and promoting policy solutions. A central component of this is that, with such an emphasis on promotion, policy-maker decisions are subject to supply push rather than being demand-led. In particular, the ‘solutions’ of instrument constituencies come before, rather than after, the problems they are held to solve – solutions chasing problems. Key actors here are external consultants. However, the extent to which their activities match the problem chasing of the instrument constituency concept is untested. As a start in addressing such neglect, this article draws on data from secondary sources from research, outside the policy field, in organisation studies. In particular, it compares promotional practices in consulting with the supply push element of the instrument constituency model, finding that they correspond, but only partially. Consultants do not always construct problems for their clients to fit their prepared solutions, nor do they simply conform to the conventional, ‘rational’ model. Rather, it is shown that they also simultaneously co-produce both problems and solutions with clients, combining supply-push and demand-led approaches. Thus, it is argued that the model need not be so strongly associated with problem chasing (and non-rational decisions). Rather, the case of consultancy draws attention to how decision-making through instrument constituencies can occur along a continuum of three positions, from problems pre-dating solutions, being (co-) constructed at the same time, to their production after the ‘solution’

Acquiring knowledge through management consultancy:A national culture perspective

This paper examines how national culture informs the sourcing of management knowledge through external consultancy. First, it hypothesises and compares the relationship between quantitative measures of Hofstede's cultural indices with adjusted expenditure on consulting in nine countries. Two cultural indices are found to correlate with consulting use – power distance (negatively) and individualism (positively). However, the disparity between our findings and prior research suggests limitations of generalisation in studies solely employing quantitative cultural indices to understand the purchasing of business knowledge. We therefore propose the use of supplementary, qualitative data with sensitivity to local contexts and briefly apply this by using secondary sources to provide historical narratives for two countries – the UK and Japan. Overall, we find and tentatively explain significant statistical relationships between Hofstede's cultural indices and adjusted expenditure on consultancy. We then draw attention to wider implications for consulting research and for practitioners involved in this context

Professions and (new) management occupations as a contested terrain:Redefining jurisdictional claims

In this article, we discuss how research on professions and organizations may benefit from a better understanding of the emergence and prevalence of 'new' management occupations or 'corporate professions' and their interactions with 'traditional' professions. To this end, we explore the theoretical and empirical implications of selected studies, analysing how professional and occupational jurisdictions, as well as inter-occupational relationships, are redefined. This occurs as new areas of management expertise emerge and gain influence in relation to broader organizational, technical and institutional developments

Explaining national variation in the use of management consulting knowledge:A framework

The management literature frequently assumes that management consultancy is the predominant source of external management knowledge for organisations. However, its use is invariably confined to a few Western, developed economies. Such variation is rarely acknowledged, let alone explained. In this conceptual article, we draw on diverse literatures to explore what drives national variations in consulting usage. To achieve this, we develop a basic framework of influencing factors and apply it to the Japanese context. We conclude by explicating how our analysis has a wider application with respect to other knowledge sources in comparative studies