Project organization and the pool concept of staffing

One of the well-known elements of a consulting firm's organizational structure is its project-based operation and pool concept of staffing. Consulting projects typically last between two and six months in strategy, organization, finance, and human resources in IT consulting the durations are often longer , and individual consultants are allocated to several consecutive projects every year so as to gain experience m a range of industries and corporate functions. While senior consultants...

The signaling effect of personnel selection

According to Bhide 1994, 1995 , Marvin Bower envisaged a professional model that demanded innovative brain power rather than business experience from management consultants. It was assumed that graduates from leading business schools had the intellectual superiority that Bower's concept of consulting required. The highly selective recruitment provided the consulting industry with a considerable touch of intellectual elitism, and this conveys a strong message to the business community...

Transaction cost analysis of consultancy

Transaction cost theory provides the central framework for solving this puzzle. The question is in which cases and for which tasks is the externalization of analytical or management functions more efficient than an in-house solution In the case of outsourcing a task to a consulting firm the market solution , ex ante transaction costs occur as a result of searching for consulting firms, assessing their competencies, selecting between several firms, negotiating, and finalizing the contract. Ex...

Why do consulting firms exist and grow The economics and sociology of knowledge

The era of strategy and organization consultancies commenced in the 1960s, when the demand for engineering-based advice on the shop floor diminished and the upturn in international trade and corporate expansion began to shift the demand for consulting services to the boardroom level Kipping 1996, 1997, 2002 . McKenna 1995, 2006 points out that the first wave of advice on finance, strategy, and organization was triggered by the Glass-Steagall Banking Act in the 1930s. From the 1950s onwards the...