organising and sustaining internal consultancy
DESCRIPTION
Presentation on organising and sustaining internal consultancy delivered at the CASS Business School on behalf of the Institute of Consulting by Andrew Sturdy from the University of Bristol and Nick Wylie from Oxford Brookes UniversityTRANSCRIPT
ORGANISING AND SUSTAINING INTERNAL CONSULTANCY
Andrew Sturdy, University of Bristol Nick Wylie, Oxford Brookes University
AGENDA
9.45 – 10.05 IntroductionsVeronica Hope-Hailey, Cass Business SchoolCaroline Lumb, Head of Institute of Consulting
10.05 – 11.30 Organising internal consultancy
11.30 – 12.00 Break
12.00 – 13.15 Sustaining internal consultancy
13.15-13.30 Closing remarks
ORGANISING INTERNAL CONSULTANCY
Outline of internal consultancy research project
Key findingsOutcomesVariety of forms and practiceShared characteristics
THE RESEARCH PROJECT
BackgroundMinimal research on internal consultancyFocus on internal consultant rather than
consultanciesOutsider view
The organisation of internal consultancy units (ICUs)Dynamics / narrativesForm, structureClaimed outcomesDilemmas
THE RESEARCH PROJECT
Defining and identifying internal consultancy – self-identify
MethodologyExploratory research
Qualitative / Interview based - 93 interviews across 24 organisations (public and private sector)
ICs and some clients
KEY FINDINGS
Wide range of outcomes / impacts
Variety, dynamism and no fixed type
Shared experiences
Challenge of sustaining ICUs
OUTCOMES
Common perceptions of outcomes:Cost savings (e.g. headcount) / Efficiency /
Integration
Less common outcomes of ICU work Strategic direction / knowledge transfer
Difficulties of demonstrating impactAbsence of charging mechanisms Negotiate not implement Joint working
‘So there is all sorts of scope for money zipping all over the place. So it’s very unlikely that we
can have a sensible mechanism for doing it (charging for services)’
‘If we did have a charging mechanism I suspect we’d have much less work. We don’t switch
money around, that would be a waste of time and management accounts’
‘We’ve had no problem getting services to pay for the work because they find it useful.’
VARIETY OF FORM & PRACTICE
Consultancy traditionOperational efficiency Organisational DevelopmentStrategyProject / Programme Management
SizeLess than 10 consultants = 9Between 10 and 20 = 4Between 20 and 50 = 750+ consultants = 4
VARIETY OF FORM & PRACTICE
Structural LocationCentralised and independentCentralised service function Divisional
Structural formFunctional teams Mapped onto business units Hierarchies linked to size
VARIETY OF FORM & PRACTICE
Dynamics Tradition - Activities , diversificationSize - Headcount Structural location – Centralisation /
decentralisation
Alternative providersMultiple ICUs in same organisationDuplication Vs differentiation (variety)?
SHARED CHARACTERISTICS AND EXPERIENCES
Internal outsider and project/programme managing roles
Work generation – formal and informal mechanisms (‘corridor conversations’)
Limited implementation, knowledge transfer and/or use of KM systems.
Sustainability
‘All I needed was for an independent group to come up with the same thing that I’ve been telling them over and over. Because
that way I know my message will be listened to’.
‘Implementation is often long-term, heavily involved, difficult to extract yourself from,
so I don’t think that’s us. I don’t think implementation requires consultancy
skills…’
ORGANISING IC - SUMMARY
Wide range of outcomes / impacts
Variety, dynamism and no fixed type
Shared experiences
SUSTAINING INTERNAL CONSULTANCY?
It is perfectly possible that somebody could turn round in a year or two’s time and say “right, we’re going to bin internal consultancy”
WHY SUSTAINABILITY?
Uncertainty is at the heart of management and change
Consultancy as solution, but has its own uncertainties
Product RelationshipSectorOrganisational - greater for internals?
PRECARIOUS ICUs
All ICUs reflected on uncertain existence; most had persistent concerns
Even in stability/growth, a quarter were disbanded or found new homes
SOURCES OF UNCERTAINTY AND SOLUTIONS?
Sponsorship / relationship management
Value-add / expertise and diversification
Consultancy identity / credibility and work prioritisation
SPONSORSHIP AND RELATIONSHIP MANAGEMENT
Senior management sponsorshipNecessary but precarious and possible
burden
Formal and informal relationship management Consultants responsible for client
departments New lease of life/home or raise expectations
unduly
‘(A new executive) took one look at it (the ICU) and said, “What you’re doing, the HR department ought to be doing, and the other bit that you’re doing, the
managers ought to be able to do for themselves. I don’t want an internal
consultancy anymore.”’
‘We became almost seen as that deputy CEO’s eyes and ears around the
organisation, which was actually quite detrimental to what we were trying to
do’
VALUE-ADD / EXPERTISE AND DIVERSIFICATION
Provision of value adding, (usually) ‘high level’ and continually relevant service?
Branded (e.g. Six Sigma) or generic methods
DiversifyUp-skill to strategy, facilitation and/or
programme managementRisks credibility loss
VALUE-ADD / EXPERTISE AND DIVERSIFICATION
Diversify to external clients Income & added credibility but risks too
(Or specialise/concentrate)
‘I said to my people, “Reputation, reputation, reputation.” If they
abolished us tomorrow, what would change? So reputation is all, really’
‘….We could even let the internals have a go at it…’
‘…Going out and just re-validating how many posts (jobs) you should have in a
particular area…in retrospect I don't think (that) was the best use of their
(consultants) time.’
CONSULTANCY IDENTITY / CREDIBILITY AND WORK PRIORITISATION
Not just reducing uncertainty – also say ‘no’!
Assert identity as expert, independent & professional
Some ICUs also rejected implementation
Saying ‘no’ is high risk but…. Compromise (train/oversee; ‘rational’ work
prioritization)Longer term legitimacy?
‘Some people just want an extra pair of hands and I say never appear willing to be the minute taker, the admin. It
does our reputation no good’
‘I think that if you spoke to somebody outside of the (ICU) and said, “How do
you view this team as internal consultants?” However they say it, the
reality is [that] it’s a body shop.’
Organisational Uncertainty
Reduction Dilemma/risk
Who you know Relationship management
Raised client expectations
What you know Diversify(or specialize)
Core business & can’t compete
What you are willing to do
Work prioritization
Legitimation & extras roles
THE DYNAMICS OF UNCERTAINTY AND SUSTAINABILITY – SOME OUTCOMES
Increasing Credibility
Decreasing Credibility
Diversify EXPANDING SURVIVING
Specialize ENDURING DYING
COMMENTS AND QUESTIONS
Experiences of sustainability
Who you know? Relationship management?
What you know? Diversification?
What you are willing to do? Work prioritisation?
Increasing / decreasing credibility?
SUMMARY
Outsiders’ view on hidden sector – touch surface
Variety – Outcomes, forms and dynamics
Shared characteristics - Sponsorship, internal outsider/PM; work generation, (low implementation and knowledge transfer/KM)
Sustainability - A preoccupation, but dilemmas and dynamics too. No easy solutions!
AND FINALLY…
A future for IC – yes, but…?
What resonated, what didn’t …?
Future research needed?
Final report, book, feedback?
