eprints.qut.edu.au · iii acknowledgement i would like to extend my special thanks and appreciation...
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Faculty of Information of Technology
IT Management Consulting in Australia: A Major Issues Study
Candidate: Jason Kennelly Degrees: Bachelor of Information Technology
(Honours)
Centre: Centre for Information Technology Innovation
Qualification Sought: Masters of Information Technology (Research)
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Authorship
The work contained in this dissertation has not been previously
submitted for a degree or diploma at any other higher education
institution. To the best of my knowledge and belief, the thesis does not
contain material previously published or written by another person
except where due reference has been made.
Signature
22 November 2005
Date
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Acknowledgement
I would like to extend my special thanks and appreciation to Professor Guy Gable,
Doctor Bob Smyth and Darshana Sedera. Without their guidance and inspiration I
would not have been able to successfully complete this thesis. I will always consider
these individuals role models for whom I will strive to achieve their standard of
excellence and professionalism.
I would also like to acknowledge the role of two Honours students, Tracey Nguyen
and Dale Bulmer who contributed to the study.
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Abstract
Research Project Title:
IT Management Consulting in Australia: A Major Issues Study
Key Words:
Management Consulting, Case Study Method, major issues study, Delphi Method,
Knowledge Management, Professional Service Firms
Research Project
We are amidst a period of radical change in Management Consulting worldwide. The
latter half of the twentieth century has seen major extensions to the range of services
promoted under the umbrella of Management Consulting. The traditional
Management Consulting Firms, such as McKinsey & Co., tend to provide strategy
consulting. By contrast, the other multinational Management Consulting Firms have
focused on Business Process Re-engineering and other services with an Information
Technology emphasis. Significantly, several multinational Management Consulting
Firms have come under the control of Information Technology companies. As yet,
very little research has been conducted into the issues that Management Consultants
face in Australia. This research project provides an empirical investigation aimed at
identifying these issues. In doing so, the study intends to answer the following
research question “What are the major issues facing Management Consulting Firms
in Australia?” To assist in answering this overarching question the study
endeavours to address three investigative questions (1) What is the relative severity
of issues facing Management Consulting Firms in Australia? (2) What are the
Knowledge Management related issues facing Management Consulting Firms in
Australia? And (3) What distinctions can be made between Knowledge Management
issues and approaches of small-medium sized Management Consulting Firms and
large Management Consulting Firms?
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This thesis is a compilation and comparison of evidence gathered from four separate
but related sub-studies into the Management Consulting industry. The first, a Context
Case Study of Management Consulting issues faced by small-medium sized firms,
aimed to generate a rich, qualitative description of the study context, which, in turn,
provides background to a larger follow-up Issues Delphi Study. Interpretation of the
data gathered for the Context Case Study focuses on gaps between the literature and
observed practice. The Issues Delphi Study garners response from members of the
Institute of Management Consultants (IMC) in two survey rounds that inventory
issues and then gauge their importance.
In addition, an exploratory and descriptive case study was performed to investigate
Knowledge Management Strategies and Practices in the Australian branch of
Accenture, a well known International Management Consulting Firm. Though the
Accenture Case Study has an operational emphasis, both macro and micro issues of
Knowledge Management are considered; macro issues pertain to the strategic
leverage of Knowledge Assets, while micro issues pertain to creation, transfer and
reuse of knowledge within the firm, and between the firm and its clients.
Knowledge Management is identified as essential to the achievement of sustained
competitive advantage for all Professional Service Firms; of which Management
Consulting Firms are a subset. As such, a conceptual analysis of the Knowledge in
Professional Service Firms model, developed by Empson and Morris (1998), was
performed to enhance the researchers understanding of Knowledge Management in
Management Consulting Firms. The analysis of the model’s constructs and their
relationships assists the researcher’s analysis of data gathered from the other three
sub-studies. In addition, the attempt to develop several model variants is explored
and an argument for the resulting final model variant which incorporates a new
construct, Knowledge Management, is presented.
Finally, the study compares the issues identified from the four separate sub-studies.
The issues gathered are mapped into Knowledge in Professional Service Firms
model, providing useful insights into the importance of sound Knowledge
Management practices in small, medium and large Management Consulting Firms.
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Table of Contents
1 INTRODUCTION .....................................................................................................1 1.1 MOTIVATION FOR THE STUDY......................................................................................................1 1.2 RESEARCH QUESTION..................................................................................................................2 1.3 PROBLEM STATEMENT.................................................................................................................3 1.4 OVERALL STUDY APPROACH .......................................................................................................4
1.4.1 Context Case Study and Issues Delphi Study...............................................................5 1.4.2 Accenture Case Study ..................................................................................................5 1.4.3 Knowledge in Professional Service Firms...................................................................6
1.5 STUDY CONTEXT.........................................................................................................................6 1.5.1 Evolution of Consulting in Australia ...........................................................................7 1.5.2 State of the Contemporary Management Consulting Industry.....................................8
1.6 THE THESIS STRUCTURE............................................................................................................11 1.7 CONTRIBUTIONS AND ACKNOWLEDGEMENT...............................................................................12 1.8 CHAPTER SUMMARY..................................................................................................................13
2 LITERATURE REVIEW .......................................................................................14 2.1 DEFINITIONS OF MANAGEMENT CONSULTING ............................................................................14
2.1.1 What is the Impact of Major Corporate Collapses and September 11? ....................18 2.1.2 The Consultant-Client Relationship...........................................................................21 2.1.3 The Effect of Technology on the Consulting Industry................................................25
2.2 KNOWLEDGE MANAGEMENT .....................................................................................................29 2.2.1 The Knowledge-Intensive Firm..................................................................................32 2.2.2 Why Firms are Implementing Knowledge Management Practices and Strategies ....35
2.3 DELPHI METHOD .......................................................................................................................36 2.4 LITERATURE REVIEW SUMMARY ...............................................................................................37
3 RESEARCH PLAN .................................................................................................40 3.1 OVERALL RESEARCH PLAN........................................................................................................43 3.2 CONTEXT CASE STUDY..............................................................................................................46
3.2.1 The Research Question for the Context Case Study ..................................................48 3.2.2 Position of the Context Case Study............................................................................49
3.3 ISSUES DELPHI STUDY...............................................................................................................49 3.4 ACCENTURE CASE STUDY .........................................................................................................51 3.5 CHAPTER SUMMARY..................................................................................................................53
4 MANAGEMENT CONSULTING ISSUES CONTEXT CASE STUDY............55 4.1 CONTEXT CASE STUDY RESEARCH QUESTION ...........................................................................55 4.2 STUDY SAMPLE – INSTITUTE OF MANAGEMENT CONSULTANTS..................................................56
4.2.1 Institute of Management Consultants’ Function........................................................56 4.2.2 Background of Institute of Management Consultants................................................57 4.2.3 Characteristics of IMC Membership .........................................................................57
4.3 STUDY CONTEXT.......................................................................................................................58 4.4 METHODOLOGY.........................................................................................................................59
4.4.1 The Case Study Research Design ..............................................................................59 4.4.2 The Unit of Analysis ..................................................................................................59 4.4.3 Relevance of the Case Study Method.........................................................................60 4.4.4 The Context Case Study Design.................................................................................60 4.4.5 Case Validity and Reliability .....................................................................................60
4.5 DATA COLLECTION ...................................................................................................................62 4.5.1 Selection of IMC as Primary Source of Evidence......................................................62 4.5.2 Data Collection Methods for the Case Studies ..........................................................63 4.5.3 The Case Study Protocol ...........................................................................................66
4.6 DATA FROM THE STUDY ............................................................................................................67 4.7 DATA ANALYSIS .......................................................................................................................68
4.7.1 The Changing Client Environment ............................................................................68 4.7.2 The Changing Consultant Environment ....................................................................69 4.7.3 The Changing Client-Consultant Relationship..........................................................71 4.7.4 Matching Issues from Data Gathering against the Issues from the Literature..........72
4.8 FINDINGS FROM THE CONTEXT CASE STUDY..............................................................................72
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4.8.1 Issues Consistent with the Literature.........................................................................72 4.8.2 Issues Emerging from the Data but not in the Literature ..........................................74 4.8.3 Issues Prominent in the Literature but not Present in the Data ................................75
4.9 CHAPTER SUMMARY ................................................................................................................. 75 5 ACCENTURE CASE STUDY................................................................................77
5.1 UNIT OF ANALYSIS AND STUDY SAMPLE ................................................................................... 78 5.1.1 Organisational Overview ..........................................................................................78 5.1.2 Study Sample Scope...................................................................................................80 5.1.3 Knowledge Management at Accenture ......................................................................80
5.2 STUDY PARTICIPANTS ............................................................................................................... 82 5.3 DATA COLLECTION AND ANALYSIS ........................................................................................... 82
5.3.1 The Interview Process ...............................................................................................83 5.4 FINDINGS .................................................................................................................................. 85
5.4.1 Influencing Factors of Knowledge ............................................................................86 5.4.2 Knowledge Management Tactics...............................................................................88 5.4.3 Challenges of Knowledge Management ....................................................................92 5.4.4 Limitations of the Research Sub-Study ......................................................................94 5.4.5 Potential for Future Research ...................................................................................95 5.4.6 Implications for Accenture ........................................................................................95
5.5 CHAPTER SUMMARY ................................................................................................................. 96 6 ISSUES DELPHI STUDY ......................................................................................97
6.1 STUDY CONTEXT ...................................................................................................................... 97 6.2 DATA COLLECTION ................................................................................................................... 98
6.2.1 Inventory Round ........................................................................................................98 6.2.2 Issues Synthesis .........................................................................................................99 6.2.3 Weights Round......................................................................................................... 103
6.3 WEIGHTS DATA ANALYSIS...................................................................................................... 107 6.3.1 Descriptive Statistics ............................................................................................... 108
6.4 FINDINGS ................................................................................................................................ 109 6.4.1 Consulting Fees....................................................................................................... 110 6.4.2 Globalisation ........................................................................................................... 110 6.4.3 Government Regulation........................................................................................... 111 6.4.4 Sparse Availability of Consulting Work .................................................................. 112
6.5 CHAPTER SUMMARY ............................................................................................................... 115 7 KNOWLEDGE IN PROFESSIONAL SERVICE FIRMS ................................ 116
7.1 CONCEPTUAL ANALYSIS OF A PROPOSED MODEL .................................................................... 117 7.1.1 Role of Knowledge in Professional Service Firms .................................................. 118 7.1.2 Interpretation of Knowledge in Professional Service Firms Model Constructs ...... 121 7.1.3 Argument for the Knowledge in Professional Service Firms Model ....................... 124 7.1.4 Interpretation of Knowledge in Professional Service Firms Model Constructs ...... 126 7.1.5 Potential Value of the Knowledge in Professional Service Firms Model................ 133
7.2 MODEL VARIANTS .................................................................................................................. 134 7.3 CHAPTER SUMMARY ............................................................................................................... 144
8 COMPARATIVE ANALYSIS AND FINDINGS ............................................... 145 8.1 RELATIONSHIP OF ISSUES DELPHI STUDY EVIDENCE WITH KNOWLEDGE IN PROFESSIONAL
SERVICE FIRMS MODEL........................................................................................................... 145 8.2 RELATIONSHIP OF ACCENTURE CASE STUDY EVIDENCE WITH KNOWLEDGE IN PROFESSIONAL
SERVICE FIRMS MODEL........................................................................................................... 149 8.3 COMPARISON OF SUB-STUDY FINDINGS................................................................................... 152
8.3.1 Client Consultant Relationship................................................................................ 152 8.3.2 Knowledge Management ......................................................................................... 154 8.3.3 Public Sector Consulting......................................................................................... 157
8.4 CHAPTER SUMMARY ............................................................................................................... 159 9 CONCLUSION...................................................................................................... 163
9.1 RESEARCH OUTCOMES............................................................................................................ 163 9.2 STUDY CONTRIBUTION............................................................................................................ 166
9.2.1 Implications for the Management Consulting Industry ........................................... 168 9.3 LIMITATIONS OF THE RESEARCH.............................................................................................. 169
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9.3.1 Accenture Case Study ..............................................................................................169 9.3.2 Issues Delphi Study..................................................................................................169 9.3.3 Knowledge in Professional Service Firms Study .....................................................170
9.4 POTENTIAL FOR FUTURE RESEARCH.........................................................................................171 9.4.1 Accenture Case Study ..............................................................................................171 9.4.2 Issues Delphi Study..................................................................................................171 9.4.3 Knowledge in Professional Service Firms Study .....................................................172
9.5 CHAPTER SUMMARY................................................................................................................173
APPENDIXES APPENDIX A - CONTEXT CASE STUDY PROTOCOL APPENDIX B – INVENTORY ROUND SURVEY INSTRUMENT APPENDIX C – WEIGHTS ROUND SURVEY INSTRUMENT APPENDIX D – ACCENTURE CASE STUDY PROTOCOL APPENDIX E – ACCENTURE CASE STUDY INTERVIEW TRANSCRIPTS APPENDIX F – EMPSON & MORRIS MODEL FOCUS GROUP APPENDIX G – CONSULTING ISSUES MAPPED INTO KNOWLEDGE IN PROFESSIONAL SERVICE FIRMS MODEL APPENDIX H – ACCENTURE ISSUES MAPPED INTO KNOWLEDGE IN PROFESSIONAL SERVICE FIRMS MODEL APPENDIX I – CONSULTING ISSUES STUDY TIMELINE APPENDIX J – DATA AND ANALYSIS TABLES APPENDIX K - SYNTHESIS PROCESS COGNITIVE MAPPING
REFERENCES
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List of Tables and Figures TABLES 1.1 Breakdown of Four Sub-Studies ................................................................................................................. 4 2.1 Consulting Firms Purchased by Information Technology Firms............................................................... 21 2.2 Two Coexisting Views of the Consultant………………………………………………………… .......... 23 2.3 Types of Knowledge-Intensive Firm......................................................................................................... 33 2.4 A Brief Chronology of Knowledge Management Effort ........................................................................... 36 3.1 Sub-Studies Emphasis on Research Questions.......................................................................................... 40 4.1 Relative Strengths of Case Study and Survey Method.............................................................................. 60 4.2 Methods for Ensuring Good Case Study Design....................................................................................... 61 4.3 Structure of the Case Study Protocol......................................................................................................... 67 4.4 Issues that Emerged from the Case Study Data......................................................................................... 67 5.1 Operating Groups and Industry Groups of Accenture............................................................................... 79 5.2 Themes from Accenture Case Study Data................................................................................................. 85 6.1 Rationalisation Exercise Rules ................................................................................................................ 100 6.2 Demographic Data of Respondents ......................................................................................................... 109 8.1 Number of Issues that Fit in Each of the Knowledge in PSF Model Constructs..................................... 146 8.2 Comparison of Mapping in the Knowledge in PSF Model ..................................................................... 150 8.3 Themes from Accenture Case Study Data............................................................................................... 150 8.4 Issues Gathered from the Data of the Context Case Study...................................................................... 152 8.5 Significance Test of Issues ...................................................................................................................... 153 8.6 Knowledge Emphasis of Research Studies ............................................................................................. 154 9.1 Breakdown of Four Sub-Studies ............................................................................................................. 163 9.2 Sub-Studies Emphasis on Research Questions........................................................................................ 164 FIGURES 2.1 Data, Information and Knowledge ............................................................................................................ 31 3.1 Study Research Plan.................................................................................................................................. 43 3.2 Components of Context Case Study.......................................................................................................... 47 3.3 Issues Delphi Study Phases ....................................................................................................................... 50 4.1 Three Major Issues Categories .................................................................................................................. 68 5.1 Knowledge Management Responsibility Hierarchy.................................................................................. 82 6.1 Rationalisation Process............................................................................................................................ 100 6.2 Issue Hierarchy........................................................................................................................................ 102 6.3 Conceptual Framework ........................................................................................................................... 108 7.1 The Role of Knowledge in PSFs ............................................................................................................. 117 7.2 Linking the Three Goals of PSFs ............................................................................................................ 118 7.3 Maister’s Continuum............................................................................................................................... 119 7.4 Organisational Knowledge Base ............................................................................................................. 122 7.5 Knowledge in Professional Service Firm Model Variants ...................................................................... 135 7.6 Comparison of Knowledge Management and Firm Management........................................................... 138 8.1 The Role of Knowledge within PSFs ...................................................................................................... 145
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1 Introduction
1.1 Motivation for the Study
The principal objective of this study is to identify important issues facing the
Management Consulting industry in Australia. Initial investigations into the
predominant Management Consulting literature suggested that Knowledge
Management has a large role to play in the Management Consulting Firm’s ability to
attain a sustainable competitive advantage. The predominant literature maintains that
Professional Service Firms (PSFs) are exemplars of best practice in the Knowledge
Management field (Empson, 2001b). Management Consulting Firms are considered
one type of Professional Service Firm, whilst others include, but are not restricted to:
Legal Firms, Accounting Firms, Professional Research Firms, or any other firm that
offers a service for fees based upon their ability to leverage the unique experience or
knowledge of the employees of their firm (Empson, 1999b).
Much of the literature focuses on large Professional Service Firms. The study sample
includes a large International Professional Service Firm, Accenture. However, the
study also draws on data from the Institute of Management Consultants (IMC), the
representative association of small-medium sized Management Consulting Firms in
Australia. The majority of IMC’s members are small-medium consulting firms
having five or fewer staff. Very little research has been conducted into small-
medium sized Management Consulting Firms, making the identification of issues
facing this demographic group particularly relevant.
Investigation into Knowledge Management in a large Professional Service Firm,
together with analysis of responses gathered from the Institute of Management
Consultants, has identified a key distinction between small-medium sized firms and
large firms. Small-medium sized firms do not appear to concern themselves greatly
with Knowledge Management at a macro (strategic) level but are more concerned
with the micro (transactional) perspective on Knowledge Management. Small-
medium sized Management Consulting Firms place substantial emphasis on
delivering value to clients through Knowledge Transfer from consultant to client.
large Professional Service Firms appear more concerned with the best way to
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develop and exploit Knowledge Assets, with relatively less emphasis on Knowledge
Transfer between consultant and client.
1.2 Research Question
The objective of this study is to identify important issues facing the Management
Consulting industry in Australia, in particular, to identify the extent to which the
issues faced are Knowledge Management related issues. This emphasis originates
from the assertion that Management Consulting Firms are Knowledge-Intensive
Organisation whose main stock-in-trade is knowledge. Knowledge Management is a
key component of an effective Knowledge Strategy, which is intended to ensure: the
capture, storage and sharing of knowledge amongst the firm’s employees. An
effective Knowledge Strategy also ensures the re-use and exploitation of Knowledge
Assets; and encourages the exploration and exploitation of knowledge (Zack, 1999).
Gable (1991) recommends that an effective means of generating research questions
for a study in Information Systems is to develop a ‘Research Question Hierarchy’ as
proposed by Emory (1985). The main purpose of the hierarchy is as a logical ‘top-
down’ structure for the questions that the study seeks to answer. The first level in the
hierarchy is a Management Question which in essence provides the motivation for
the study. In this study, the Management Question is: “How do current issues for
small-medium sized Management Consulting Firms in Australia compare with
those for large Management Consulting Firms? ”
The second level in the hierarchy is the Research Question; it derives from the
Management Question and captures the general purpose of the study (Emory, 1985).
The Research Question for this study is: “What are the Major Issues Facing
Management Consulting Firms in Australia?”
The third level of Emory’s (1985) Research Question Hierarchy - Investigative
Questions - “should fractionate the research question and guide details of the
research effort, including the development of concepts, operational definitions and
measurement devices” (Guy G. Gable, 1991). Investigative Questions for this study
include:
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1. What is the relative severity of the issues?
a. By demography: (State, Firm Size, Public Sector Work).
b. Between the Context Case Study and the Issues Delphi Study.
2. What are the Knowledge Management related issues facing
Management Consulting Firms in Australia?
3. What distinctions can be made between Knowledge Management
issues and approaches of small-medium sized Management
Consulting Firms and large Management Consulting Firms?
The fourth and final level of abstraction comprises Measurement Questions; these are
the questions the investigator intends to ask the respondent, and form part of the data
collection instruments and protocols.
1.3 Problem Statement
We are amidst a period of radical change in Management Consulting worldwide.
Significantly, many of the multinational Management Consulting Firms have
relatively recently come under the control of Information Technology companies. As
yet, very little research has been conducted into the issues that Management
Consultants face in Australia in these turbulent times. This research project provides
an empirical investigation aimed at identifying these issues, with particular emphasis
on Knowledge Management. The case study methodology is employed in two
separate case studies. The first was conducted to generate a rich, qualitative
description of the issues faced by the Management Consulting industry in Australia.
The second case study was performed to gain an in depth understanding of the
workings of Knowledge Management in an International Professional Service Firm,
Accenture. Both case studies provide background to a larger follow-up Issues Delphi
Study involving two survey rounds having the purpose to firstly identify, and then
gauge the importance of, issues faced by the Management Consulting industry with
an emphasis on Knowledge Management.
The latter half of the twentieth century has seen major extensions to the range of
services promoted under the umbrella of Management Consulting (Poulfelt, Greiner,
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& Bhambri, 2005). Traditional Management Consulting Firms, such as McKinsey &
Co., tend to provide strategy consulting. By contrast, the other multinational
consulting firms have focused on Business Process Re-engineering and other
services with an Information Technology emphasis (Stensholt, 2004; Walters &
Andrews, 2004b). Not surprisingly, professional organisations and experts in the
field provide varied definitions of Management Consulting. Management Consulting
is defined in this study as “the attempt by an individual or firm, by means of
collaborative effort between client managers and consultants, to recognise and derive
advantage from opportunities in conjunction with transferring and/or leveraging
knowledge in order to achieve the client organisation’s goals.” The derivation of this
definition is discussed in section 2.2 Definitions of Management Consulting.
1.4 Overall Study Approach
The overall study is a compilation and comparison of evidence gathered from four
separate sub-studies which answer the research question “What are the major issues
facing Management Consulting Firms in Australia?” Table 1.1 provides the
breakdown of units of analysis, study samples and research methods for each of the
sub-studies.
The overall study’s unit of analysis is the Australian Management Consulting
industry. Each of the four separate sub-studies allows the researcher to explore the
Management Consulting industry from the perspective of small-medium and large
sized firms with particular emphasis on Knowledge Management.
Table 1.1 – Breakdown of Four Sub-Studies Study Unit of Analysis Study Sample Research Method Overall Study Australian
Management Consulting Industry
Combination of Four Sub-Studies
Multi-Method
Context Case Study Small-medium Consulting Firms
IMC Executive Case Study
Issues Delphi Study Small-medium Consulting Firms
IMC Membership Delphi (Survey)
Accenture Case Study International PSF Accenture Government Group
Case Study
Knowledge in Professional Service Firm
Small, Medium and Large PSFs
IMC and Accenture (Predominately Literature Based)
Literature Review, Model Analysis
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1.4.1 Context Case Study and Issues Delphi Study
The researchers, Guy Gable, Bob Smyth and Jason Kennelly, originally believed that
IMC would be representative of the Australian Management Consulting industry.
However, once data collection for the Context Case Study had begun, the researchers
soon discovered that IMC consisted predominately of small-medium sized firms. In
which case, the unit of analysis for the Context Case and the Issues Delphi Study
became small-medium sized Management Consulting Firms.
IMC was selected as the study sample because they are the only Australian
Professional Society that caters exclusively to the Management Consulting industry.
The Context Case Study was conducted as a forerunner to Issues Delphi Study and
for this purpose; the IMC Executive was considered representative of IMC
membership. The Context Case Study was an important initial step to gain a
preliminary understanding of the issues facing the Australian Management
Consulting industry.
1.4.2 Accenture Case Study
The opportunity to investigate Accenture’s Knowledge Management Strategies and
Practices was a result of a preexisting relationship between the Queensland
University of Technology (QUT) and Accenture. Accenture was approached about a
possible extension of the Issues Delphi Study that would allow the researcher to
investigate issues faced by International Professional Service Firms operating in the
Australian Management Consulting industry. However, Accenture strongly declined,
but were receptive to a case study into their Knowledge Management Strategies and
Practices. Accenture was more receptive to the case study approach because they
could limit access to evidence, placing QUT in contact with key personnel and
providing QUT with non-sensitive information. Whereas the Issues Delphi Study
would canvass all the consultants of Accenture Australia to garner issues faced by
the firm and would reduce Accenture’s control over sensitive information. The unit
of analysis for The Accenture Case Study is the International Professional Service
Firm whilst the study sample is limited to Accenture’s Government Group in
Australia plus key personnel in the Manila Knowledge Centre. The Government
Group is considered to be representative of all five Accenture Operations Groups
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operating in Australia (see Chapter 5) in terms of Knowledge Management Strategies
and Practices.
1.4.3 Knowledge in Professional Service Firms
The overall study’s emphasis on Knowledge Management in Management
Consulting Firms led to the analysis of the Knowledge in Professional Service Firms
model. This model provides a description of how knowledge impacts the firm’s
Economic Structure and Organisational Structure regardless of size. Empson and
Morris (1998) argue that the Knowledge in Professional Service Firms model applies
equally to small, medium and large sized firms. Whilst the three other sub-studies
concentrate on either small-medium or large sized firms, the unit of analysis for the
Knowledge in Professional Service Firms sub-study is the Professional Service Firm,
regardless of size.
This sub-study involved the conceptual analysis of the relationships between all the
constructs of the Knowledge in Professional Service Firms model. Analysis of the
model served to improve the researcher’s understanding of the role of Knowledge
Management in Professional Service Firms and assisted with the analysis of the data
gathered from the other three sub-studies. Therefore, the study sample consisted of
IMC and Accenture but as no direct empirical research was performed the study is
predominately literature based.
1.5 Study Context
The Accenture Case Study, dealing as it does with a large Management Consulting
Firm, offers a complementary perspective to the Context Cases Study and Issues
Delphi Study. The Context Cases Study and Issues Delphi Study provides insight
into a broad spectrum of issues facing the Australian Management Consulting
industry, this sub-study focusing on small-medium sized firms, which is
characteristic of the membership of Institute of Management Consultants (IMC) in
Australia. IMC’s membership consists primarily of firms with fewer than five
consultants. Given the emphasis the literature has placed on Knowledge
Management within the Management Consulting industry, the study researchers, Guy
Gable, Bob Smyth and Jason Kennelly, predicted that Knowledge Management
Issues would also be significant. The Accenture Case Study considers an in depth
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examination of the Knowledge Management Practices and Strategies of one of the
Australian Management Consulting industry’s leading International Professional
Service Firms, Accenture. The Accenture Case Study considers both the macro
(strategic) and the micro (transactional) perspective of Knowledge Management.
The micro perspective considers Knowledge Management from a transactional level,
more concerned with the process of Knowledge Transfer, capture and re-use on
consulting engagements. The macro perspective is concerned with the strategic
level, with emphasis on how best the firm may exploit Knowledge Assets to achieve
a sustainable competitive advantage.
1.5.1 Evolution of Consulting in Australia
Management Consulting in Australia has had an altogether different beginning from
its counterpart in the United States. In the United States, Management Consulting
was established in the late 19th century. In Australia, Management Consulting did not
find its beginning until the post-Second World War economic boom. Prior to the
Second World War there were many impediments to the establishment of
Management Consulting in Australia including: the immature state of the Australian
industry, a small scale domestic market, geographical isolation, and the less
developed nature of the management profession. (Wright, 2000)
The Australian economy went through some essential changes as a result of the
Second World War. “Under wartime pressures, industry underwent dramatic
modernisation as new industries and techniques of production control developed.”
(Wright, 2000) More and more emphasis was placed on the role of management, as
a need for planning and systemic production became evident. This created an
environment where the Management Consultant was sought to provide advice on
new management techniques to improve the production and efficiency of client
factories and offices. (Wright, 2000)
Since post war establishment of Management Consulting in Australia, the industry
has evolved and redefined its role many times throughout the 20th Century. The
Management Consultant’s role had originally been to assist managers in making the
most of their shop floor staff and machinery with a focus on process improvement.
By the late 1950s Management Consultants were being asked to advise on personnel
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matters. Many of the new generation of consultants had psychology degrees with
their focus now on executive recruitment and selection, and executive and middle
management training and development.
In the 1960s Management Consultants began to provide a wider range of services to
their clients with increasing emphasis on developing expertise in computers and
electronic data processing (EDP) as a means of assisting client management improve
financial control systems. (Wright, 2000)
The 1970s and 1980s brought about a transformation from domestic to a global
economy. This promoted the movement of large global accounting firms into the
Management Consulting industry, as they sought to diversify in the new marketplace.
This movement was brought on by economic and technological changes influencing
Management Consultants to specialise in a variety of different areas including:
Information Technology, organisational development, corporate strategy, human
resources, accounting and auditing. (Wright, 2000)
Moreover, the 1990’s brought many technological innovations promoting
globalisation. Kubr (1996) explains that “Information and Communication
Technologies (ICT), regional economic groupings, the fall of the communist
regimes, privatisation, and many other developments” have reshaped the nature of
Management Consulting. It was during this period that ICT topics took centre stage
for global Management Consulting Firms. The market is now more competitive with
consumers having greater choice. It is more open and liberal, and work in foreign
countries is more accessible, because the domestic laws are not as stringent as they
once were, thus assisting in the global nature of the business and allowing new
consulting firms to establish a presence in countries that were once restricted. (Kubr,
1996)
1.5.2 State of the Contemporary Management Consulting Industry
In recent times, the Management Consulting industry was faced with the challenge of
transforming its image, as the industry confronted issues on the scrutiny of the
independence of auditing from consulting. In addition, the industry is attempting to
deal with a change in client expectations by ascertaining ways for it to ‘partner’ with
clients, rather than acting merely as an advisory service with little or no
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accountability for the outcome of its engagements (Trinca, 2002b). As a result, the
industry is currently in a state of transition, fragmented with no particular firm
dominating the market. The contemporary client focus is on “nuts and bolts” issues
such as Information Technology implementation, with an emphasis on joint ventures
and outsourcing.
Trinca (2002a) reports that Accenture intends to generate 30% of its revenue for the
next three years from outsourcing. Trinca (2002a) quotes Steve James, Accenture’s
global Chief Operating Officer as stating that Accenture expects high growth from
the outsourcing of human resources, learning, logistics, sales and marketing, and
customer contact. Corporations are focused on cutting costs and are investing in web
technology as a way of doing so. Outsourcing is a prevalent trend in the Australian
market place. It appears many of the Australian consulting firms are placing a great
deal of focus on outsourcing to assist clients cut costs. For the large international
consulting firms, this new focus represents an adaptation to offset the decline in
demand for the Management Consulting services that had been their major revenue
earners.
In response to Australian clients placing increasing emphasis on results, Accenture
reports that over 20% of their projects involve result-based fees. Although flat fees
are the predominant method used by clients to pay consulting firms, a third of large
clients insist on performance based fees and 27% insist on result-based fees (Trinca,
2002a). This indicates that clients are in a better position to negotiate price, as they
tend to move away from employing consultants for areas they consider non-essential.
In fact, clients have become much more sophisticated and as a consequence the
selection process is much more rigorous than it was in the past. Managing partner of
Deloitte Touche Tohmatsu, Gerhard Vorster, stated that clients have begun to
interview teams of consultants to ensure they get right people. It’s no longer the case
that the partner negotiates and completes the deal and then the juniors are brought in
to complete the work. Instead, clients will select what they believe to be the right
people and form teams of consultants specialising in different areas (Trinca, 2004).
In order to increase market share, Management Consultants are selling their services
at below market value. The pressure to reduce consulting fees is creating a
destabilising effect on the global consulting industry with firms hungry for fees as
they are preparing to go public. (Trinca, 2002b)
10
A poor economy in 2001, 2002 forced many consulting firms to downsize (Trinca,
2002c, 2004), with companies such as Deloitte shedding approximately 15% of its
consultants in Australia in 2002 (Trinca, 2002c). There are still indications that the
Consulting industry’s numbers are in a state of flux. IBM and Deloitte are still
downsizing their consulting arms, whilst BearingPoint intend to increase the number
of consultants in their firm by 150 to 200 (Connors, 2004). The initial exuberance
over Enterprise Resource Planning has since settled; consequently, consultants are
finding their once highly sought after expertise in packaged solutions such as SAP is
no longer in demand (McMann & Hordes, 2000). Whilst clients are placing more
emphasis on Information Technology implementation than strategic planning, it is
important to note that Information Technology, by its nature is a fast paced industry
constantly changing as technology evolves. This indicates that in order for
consultants to remain competitive or even survive, they must endeavour to become
multi-skilled, maintaining a commitment to update their knowledge and expertise in
order to adapt to constant change in the industry.
Although there is evidence to suggest that consulting firms are still reducing their
workforce (Connors, 2004), the recent economic recovery in 2003, 2004 bodes well
for the consulting industry (Lim, 2005; Mitchell, 2004; Murphy, 2004; Rennie, 2004;
Stensholt, 2004).
It is in the context described above that the study examines the research question
stated in section 1.2. Recent events have led to a major restructuring of the industry,
which makes the investigation of issues faced by the Management Consulting
industry an important study in its own right. Knowledge Management is growing in
prominence, with more organisations realising the importance of harnessing their
most important resource; knowledge. The effective exploitation of knowledge is
crucial for Management Consulting, as knowledge is this industry’s main stock-in-
trade. Therefore, the emphasis on Knowledge Management is both timely and
valuable.
11
1.6 The Thesis Structure
Chapter 1 – INTRODUCTION: The purpose of this chapter is to introduce the
focus of the research and the motivation behind the study. The chapter
also includes the study context which explores the evolution of the
Management Consulting industry and the state of the contemporary
Management Consulting market.
Chapter 2 – REVIEW OF RELATED LITERATURE: The purpose of this
chapter is to review relevant literature that implicitly or explicitly points
to issues affecting the Management Consulting industry, and to provide
the reader with an understanding of current issues facing the industry as
a whole. Furthermore, it explores the nature of Knowledge
Management and its impact upon the Management Consulting Firm, as
well as salient literature on the Delphi Method.
.Chapter 3 – RESEARCH PLAN: This chapter provides justification for the
approach adopted for the overall study and the contribution that each of
the four separate sub-studies makes toward the overall study. Its
purpose is to demonstrate how validity and reliability of the data will be
assured and to discuss the reasoning behind the selected units of
analysis.
Chapter 4 – CONSULTING ISSUES CONTEXT CASE STUDY: This chapter
provides the reader with findings from the preliminary Context Case
Study of major issues impacting upon the Australian Management
Consulting industry. The chapter highlights several issues, including
differences between large and small-medium sized Management
Consulting Firms, globalisation, government and e-business, client-
consultant relationship, and Knowledge Management.
Chapter 5 – ACCENTURE CASE STUDY: This chapter presents the findings of a
case study into the Knowledge Management Strategies and Practices in
an International Professional Service Firm, Accenture.
12
Chapter 6 – CONSULTING ISSUES DELPHI STUDY: This chapter discusses
the methods and approach employed to conduct two surveys for the
purpose of firstly identifying issues faced by the Australian
Management Consulting industry, and secondly, gauging the
importance of the issues identified. Useful insight into the issues faced
by members of the Institute of Management Consultants (IMC) is
provided, and analysis of the importance of these issues to IMC
members discussed.
Chapter 7 – KNOWLEDGE WITHIN PSFs: This chapter provides an in
depth analysis and interpretation of Empson and Morris’s model
describing the Role of Knowledge in Professional Service Firms. The
model describes the four factors that impact the effectiveness of a firm’s
Knowledge Strategy. The chapter also describes the extension of the
Knowledge in Professional Service Firm model to a model variant
incorporating a new Knowledge Management construct.
Chapter 8 – COMPARATIVE ANALYSIS AND FINDINGS: This chapter
integrates the findings of the four separate sub-studies comparing
results from each and performing analysis from the comparison.
Chapter 9 – CONCLUSIONS: This chapter discusses the research outcomes
and highlights the contribution and limitations of the study. It also
discusses the future implications for the industry and suggestions for
future research.
1.7 Contributions and Acknowledgement
The Context Case Study examined in Chapter 4 comprises predominantly research
and findings that the researcher conducted as part of his Bachelor of Information
Technology (Honours) Degree. Insight and literature have since been updated and
the comparison of findings from the Context Case Study and the other three sub-
studies performed in Chapter 8 are part of this most recent study.
The Accenture Case Study examined in Chapter 5 is predominantly the work of
Tracey Nguyen; a Bachelor of Information Technology (Honours) student attached
13
to the study. The researcher has added his own insight and additional literature that
was not part of Nguyen’s original dissertation. The researcher had a critical role in
the Accenture Case Study as Associate Supervisor. The researcher was involved in
all aspects of the case study investigation, including the data collection process in
addition to assisting with the data analysis.
The Consulting Issues Delphi Study examined in Chapter 7 is predominately the
work of the researcher, Jason Kennelly. However, Dale Bulmer, a Bachelor of
Information Technology (Honours) student, played a role in using SPSS statistical
software to produce statistical data from the evidence gathered during the second
(Weights) data collection round of the Issues Delphi Study. The researcher used this
statistical data to interpret the issues gathered and synthesised during the first
(Inventory) data collection round. The researcher performed his own analysis partly
based upon a framework developed as part of the synthesis process described in
Chapter 7. In Chapter 8 the researcher uses the statistical data to compare the
findings from the four separate sub-studies.
1.8 Chapter Summary
In this chapter, the research question was outlined as “What are the Major Issues
Facing Management Consulting Firms in Australia?” The scope and focus of the
study was addressed by discussing four related sub-studies: (1) The Context Case
Study, (2) the Issues Delphi Survey, and (3) the Accenture Case Study, (4)
Knowledge in Professional Service Firms model. The context of Management
Consulting is discussed from an historical perspective particularly in relation to the
influence Information Technology has had on service offerings, as well as the current
state of the Management Consulting market. In addition, the chapter presents thesis
structure and discusses the contributions of other parties and acknowledges prior
work performed by the researcher.
The next chapter reviews relevant literature that implicitly or explicitly points to
issues affecting the Management Consulting industry. It provides the reader with an
understanding of current issues facing the industry as a whole. Furthermore, it
explores the nature of Knowledge Management and its impact upon the Management
Consulting Firm, as well as salient literature on the Delphi Method.
14
2 Literature Review
The objective of the literature review is to examine to what extent Management
Consulting issues have been implicitly or explicitly identified in the currently
available literature. The literature review will also examine relevant studies into the
Management Consulting industry conducted prior to this study.
Several definitions of Management Consulting are identified from the literature and
examined, and a contemporary definition presented. Major disrupts to the consulting
industry are identified and discussed (e.g. Enron, WorldCom, September 11, HIH,
Ansett and OneTel). Related changing client expectations are analysed to determine
how these disrupts have impacted on the Management Consulting industry. The past,
present and future implications of technology innovation are also examined to
establish the influence they have had on the way Management Consultants are
selling, buying and delivering services. The influence of Information Technology on
globalisation and centralisation is also considered.
The literature review will explore the Management Consulting industry with an
emphasis on gaining an understanding of the Knowledge Management related
literature. In addition, the literature review will examine Knowledge-Intensive Firms
recognising that Professional Service Firms are considered a subset of Knowledge-
Intensive Firms and Management Consulting Firms a subset of Professional Service
Firms.
Finally, the literature review examines the Delphi Method including the process and
the benefits of using this method.
2.1 Definitions of Management Consulting
Management Consulting has evolved and diversified to such an extent that it is now
difficult to define. Different organisations provide varied services, which they
promote under the umbrella of Management Consulting. The traditional
Management Consulting Firms, such as McKinsey & Co., tend to be involved in
‘strategy consulting’ (Trinca, 2002e). In contrast, the ‘Big Five’ accounting firms
have tended to provide services on Business Process Re-engineering with an
Information Technology focus. As a reflection of the range of services variously
15
associated with Management Consulting, professional organisations and experts in
the field provide varied definitions of Management Consulting.
The Management Consultancies Association (MCA), which represents the major
United Kingdom consultancy firms, defines Management Consulting as:
The rendering of independent advice and assistance about management
issues. This typically includes identifying and investigating problems and/or
opportunities, recommending appropriate action and helping to implement
those recommendations. (Rassam, 2001)
It can be seen that this definition emphasises independence of advice and the
processes felt to be common to Management Consulting. A virtue of the definition is
the potential breadth of services covered; yet this breadth embodies a vagueness that
limits the precision and usefulness of the definition.
The Institute of Management Consultants (IMC) is a professional body representing
Management Consultants, which has representative offices across the globe
including Australia (Gowan, 1999). IMC defines Management Consulting as:
The service provided to business, public or other undertakings by an
independent and qualified person or persons in identifying and investigating
problems concerned with policy, organisation, procedures and methods,
recommending appropriate action and helping to implement
recommendations. (Rassam, 2001)
This has much in common with the MCA definition but is more specific in its
interpretation of the problems relevant to Management Consulting.
L Greiner and R Metzger, in Consulting to Management (1983), a publication for
IMC Members define Management Consulting as:
…an advisory service contracted for and provided to organisations by
specially trained and qualified persons who assist, in an objective and
independent manner, the client organisation to identify problems, analyse
such problems, recommend solutions to these problems and help, when
requested, in the implementation of the solutions. (Rassam, 2001)
16
Although each of the above definitions differs to some degree, they state either
explicitly or implicitly three inherent aspects of the Management Consultant’s role.
Rassam (2001b), identifies these as the identification of a problem, recommendation
of a solution, and assistance with implementation.
This is in contrast to the perception that Management Consultants act merely as
advisors; whilst in reality they do much more. Clients are requiring a great deal
more services for their money from Management Consultants, not just asking for
advice but assistance in implementing the advice they receive.
However, Greiner and Metzger’s definition as well as IMC’s definition (Rassam,
2001) appear to suggest that consultants are just trouble shooters. In contrast,
MCA’s and Kubr’s definitions indicate that Management Consultants do more than
merely solve problems. In addition, Management Consultants identify opportunities
and assist their clients to exploit these opportunities. In this sense Milan Kubr (1996)
defines Management Consulting as:
…an independent professional advisory service assisting managers
and organizations in achieving organizational purposes and objectives
by solving management and business problems, identifying and seizing
new opportunities, enhancing learning and implementing changes.
Despite their similarity, Kubr’s definition is more comprehensive than MCA’s;
suggesting that Management Consulting is not only advising or troubleshooting, but
also that this service enhances learning and implements changes. This means that
Management Consultants may act as change agents and assist also by transferring
their knowledge to the staff of the client organisation in order for them to become
more self-sufficient.
Furthermore, Beth Gowan (1999) has interpreted Management Consulting in a
different way, defining it as:
…an independent service where through the development of an
agreed collaborative relationship new knowledge is introduced to
motivate and produce change to achieve or sustain competitive
advantage. (Gowan, 1999)
17
This definition differs from the previous four, focusing on the client-consultant
relationship. It suggests that Management Consulting is about more than just
providing the answers; it is about a collaborative effort between consultant and client
to achieve the desired aims of the relationship. This reflects the expectation that
clients have of the Management Consultant to partner with the client.
There are many definitions for Management Consulting. Many academics and
professionals have struggled to succinctly define it. The industry is constantly
evolving and, accordingly, so does its definition. In light of the contemporary
literature, the researcher considers the following to be a contemporary definition of
Management Consulting.
The attempt by an individual or firm, by means of collaborative effort
between client managers and consultant, to recognise and take
advantage of opportunities in conjunction with transferring and
improving knowledge in order to achieve the client organisation’s
goals.
The above definition is considered to be a more accurate representation of the
contemporary Management Consultant than the previous five definitions referred to
in section above. The contemporary definition reflects the growing trend of
knowledge transfer that is key to the modern client-consultant relationship identified
in the Context Case Study data and the prominent literature (Semadeni, 2001; Trinca,
2004). In addition, the contemporary definition is not restricted to organisations that
are solely seeking Management Consultants to assist in achieving competitive
advantage as Gowan’s definition suggests. It is foreseeable that government and not
for profit organisations will engage Management Consultants as well.
Although not all of the definitions provided by organisations are an entirely accurate
reflection of the modern Management Consulting industry, they are nevertheless
useful to provide insight into how the role of the Management Consultant has
evolved during this last century.
18
2.1.1 What is the Impact of Major Corporate Collapses and September 11?
2.1.1.1 Major Corporate Collapses
In 2001 and 2002 Management Consulting Firms worldwide had to deal with the
economic downturn and waning customer confidence in the industry due to events
such as the collapse of Enron and WorldCom ("Consultant, Heal Thyself," 2002;
Lipper, 2002; Naughton, Peraino, Ehrenfield, & Foote, 2002; Niece & Trompeter,
2004; Trinca, 2002b, 2002c). Australian Management Consulting Firms found
themselves further impacted by the collapse of such high profile companies as
Ansett, HIH and OneTel, thereby exacerbating scepticism in the minds of Australian
client managers about the possible pitfalls of dealing with large service providers
(McBride, 2002).
The collapse of Enron in late 2001 has had far reaching consequences, impacting a
variety of markets including the Management Consulting industry in Australia. The
alleged unscrupulous behaviour of Arthur Andersen’s auditors has triggered major
restructuring of the ‘Big Five’ accounting and Management Consulting Firms, who
have restructured their businesses to create separate legal entities out of their
consulting arms (D Cantor & C Risen, 2002). In the past, in addition to providing
auditing services, large accounting firms such as Andersen’s offered advisory
services including Management Consulting and advice on Information Technology
(Bailey, 2002a). This created a conflict of interest as pressure was applied to the
auditors by the consulting side not to allow any damaging financial information to
become public. It was felt that any damaging financial information made public
would jeopardise other services that were being provided to that same client. Thus,
the reputation of the entire consulting industry suffered as a result of Andersen’s
actions. Reduced confidence in the ‘Big Five’ consulting firms has exacerbated the
overall downturn in consulting services. This may be due to the fact that clients
appear to perceive consulting as a part of auditing practices and do not make the
distinction between auditing and consulting services (Trinca, 2002b). Although not
directly stated within the literature, it is possible that the collapses of HIH, Ansett
and OneTel (McBride, 2002), amid the continued allegations of impropriety, have
likely increased suspicion of other large corporations in the minds of many client
managers.
19
2.1.1.2 After the Downturn
However, toward the end of 2003 a global economic recovery began, leading to a
resurgence in economic growth in 2004 (Lim, 2005; Mitchell, 2004; Murphy, 2004).
The Australian economy experienced a 4% growth during the 2003-2004 financial
year (Lim, 2005). Nevertheless, the flow-on effect for the Management Consulting
industry has been slow. Many predict a flow-on effect of Information Technology
consulting work from the recent high economic growth, with many Australian
companies feeling comfortable about adding Information Technology expenditure to
their company’s budget (Lebihan, 2004a; Rennie, 2004). In addition, since the
majority of companies upgraded Information Systems to stave off the millennium
bug and in anticipation of GST in 2000, many systems are now becoming dated and
require upgrading.
Many medium-sized Information Technology consulting firms are having difficulty
recruiting experienced Information Technology staff and graduates as many have left
the sector for good. Many of the large firms, including Accenture, are finding little
difficulty with their recruiting because of the extra benefits they offer, such as
professional development and travel. However, many of the medium-sized firms are
forced to recruit from overseas to accommodate the recent growth in the Information
Technology sector (Walters, 2004). Last year, consulting salaries remained stable
but the recent growth in demand for consulting services means that those with highly
sought-after skill sets can now command premium salaries (Lynch, 2005).
2.1.1.3 September 11
In the wake of September 11 many companies realised that their current disaster
recovery plans were inadequate. The unthinkable had happened and many
companies were unprepared for the devastation wrought from the destruction of the
World Trade Centre.
IBM alone had more than 1100 customers whose disaster recovery
plans – often antiquated, rarely tested and never used – were pulled off
the shelf, dusted off and put to the test after that fateful day. Many were
found wanting, with the lost data and financial difficulties they faced
proving fatal. (Braue, 2002)
20
This meant a resurgence of interest in consulting services in the areas of Information
Technology security and Disaster Recovery Planning. Steve Price, the director of
online technologies at the West Australian Department of Industry and Technology
believes the attacks increased management emphasis on disaster recovery planning
and the ability to conduct the organisation’s essential operations from alternative
sites in the event of a catastrophe (Braue, 2002). The shift in customers’ priorities
towards their Information Technology infrastructure, the assurity of currently
available services, has been summarised as follows:
Before the attacks, most companies focused on IT investments that
would increase profitability by improving customer care and retention.
After the attacks, a sombre business community – spooked further by
the collapse of Enron, WorldCom, Ansett, HIH and others – realised
the time had come to take security more seriously (Braue, 2002)
This may suggest that Australian businesses are less likely to call on consultants for
strategic planning in favour of more operational support to improve system security
and Disaster Recovery Planning.
2.1.1.4 The New Conflict of Interest
Many client managers are suspicious of large audit firms providing Management
Consulting services, as a result of the recent corporate collapses and the perceived
conflict of interests which were responsible for deceiving the public and relevant
governing bodies about the true financial state of Enron (D Cantor & C Risen, 2002).
Beyond this view a new conflict of interest has emerged from the literature that
relates to the purchase of consulting firms by large Information Technology
providers.
One of the most noticeable changes in the Management Consulting industry of the
since 1999 has been the restructuring of the ‘Big Five’ accounting firms (Bailey,
2002b). Large Accounting Firms have sold off their consulting arms in order to
address the conflict of interest issues pertaining to firms that provide auditing, legal
and consulting services to the same client.
21
It is notable that virtually all of these new separate consulting entities have been
acquired by large Information Technology companies (Poulfelt et al., 2005). Table
2.1 provides examples of which company bought into which consultancies (James,
2002). Table 2.1 - Consulting Firms Purchased by Information Technology Firms
Consulting Firms Information Technology
Firms
Share Approximate
Date
Ernst & Young Consulting Cap Gemini 100% May 2000
KPMG Consulting Cisco 20% Feb 2001
PwC Consulting IBM Global Services 100% Sep 2002
AT Kearney EDS 100% 1995
Extracted from (James, 2002)
With client confidence already at an all time low, it is possible that consultant
solutions may be met with scepticism when the recommendations include substantial
products from the consulting firm’s parent company. This begs the question of
whether consulting firms are perceived by clients to be independent enough to ensure
that they are not biased toward recommending the products of their parent company
over products that may be better suited to the client’s situation. It is possible that this
potential conflict of interests may promote further scrutiny of consulting practices.
2.1.2 The Consultant-Client Relationship
2.1.2.1 How are Client Expectations Affecting the Management Consulting
Industry?
It appears that it is presently a buyer’s market for consulting services in Australia
(Trinca, 2004). The annual AFR BOSS survey (Trinca, 2002b) of consulting clients
reveals increasing fragmentation in the consulting industry, with dozens of firms
being used across the country by consulting clients, instead of relying upon just one
consulting firm to service the entire client organisation. Australian companies
generally engage approximately seven different consulting firms each year on
average; whilst larger organisations use about nine (Trinca, 2002b). The AFR BOSS
survey further reports “that the ‘strategic’ market has eased in the past couple of
22
years with increasing emphasis on ‘implementation’. Human resource management
and Information Technology are the hot areas for consulting, followed by strategic
management and mergers and acquisitions” (Trinca, 2002b)
However, the survey fails to mention why the industry is more fragmented at present.
One might infer that it is the result of several factors including lack of customer
confidence in the consulting industry. It has become much easier for clients to
conduct their own strategic planning as many former consultants are in top corporate
jobs in Australian companies (Trinca, 2002c). This has seen a tendency for clients to
reduce their reliance on consultants for strategic planning in favour of Information
Technology implementations only. One explanation for the fragmentation is that
clients attempt to obtain the correct technical expertise by employing several
specialist firms. In many cases two or more firms collaborate on a project to employ
a combination of specialist skills (Kanter, 1994; Lilja & Poulfelt, 2001; Pereira,
2001; Weisenfeld, Fisscher, Pearson, & Brockhoff, 2001).
Moreover, clients are reassessing their technology needs and are attempting to derive
increased value from their existing systems rather than introduce new ones (D Cantor
& C Risen, 2002), placing pressure on process consultants like
PricewaterhouseCoopers (PwC) and technology suppliers like IBM to demonstrate
how value can be added. PwC and IBM Global Services have merged in an attempt
to provide the combination of consultancy services and technology provision that
they believe will meet consumer demands. IBM is hoping their merger with PwC
will position them with the likes of Accenture as traditional process consultants and
alter the public’s perception of them as merely providing computing hardware and
software (Trinca, 2002c).
In the past, the main role of the consultant has been to investigate an opportunity or
problem and then provide a detailed report of how to solve or take advantage of the
current situation the client firm faces. This traditional model is not consistent with
the current expectations of today’s clients (Catherine Fox & Trinca, 2002; Trinca,
2002b). But is this view well founded? Werr and Linnarsson (2002) have
discovered, after interviewing a number of clients, that the client’s view of the
consultant’s role within the relationship is somewhat ambiguous. Werr and
Linnarsson (2002) argue that under certain circumstances clients prefer the
23
consultant to have an outsider status; allowing the Management Consultant to
maintain a neutral and external perspective in order to generate new ideas and
internal knowledge for the client. Clients said that they valued the consultant’s
energy and initiative during the change process but emphasised the importance of the
client remaining in control at all times. Furthermore, clients considered the
consultant’s main role to be during the early phases of the consulting assignment,
during which the consultant would diagnose the problem and provide the solution. It
would then be the client’s intention to phase out the consultant, which the client
believed to be a major challenge to managing the relationship (Werr & Linnarsson,
2002).
Werr and Linnarsson (2002) suggest that clients have two co-existing views of the
consultant’s role within the client organisation: the first being that of ‘traditional
expert consultant’ which fits into the first of Schein’s (1990) models of helping;
consisting of ‘Providing Expert Information’, ‘Playing Doctor’, and ‘Process
Consultation’. “Here the consultant is viewed as a neutral outsider, hired to
contribute his expertise in solving a delimited problem defined by the client.” (Werr
and Linnarsson, 2002) This is traditionally considered to be a short-term relationship
by the client, although in Werr and Linnarsson’s study the clients expressed the
difficulty disengaging the consultant once the engagement was completed. The
second role is referred to as ‘business development partner’. This is a long-term
relationship and the consultant adopts a process consultation role (Schein, 1990)
where the consultant is more integrated with the client organisation, gaining a greater
familiarity with the organisational culture and knowledge system and granted the
ability to initiate improvements and oversee the process from analysis to
implementation in order to achieve the desired results. (Werr & Linnarsson, 2002)
Table 2.2 compares the two client views on the consultant’s role.
Table 2.2 - Two Coexisting Views of the Consultant Traditional Expert Consultant Business Development Partner
Neutral, detached outsider Well connected insider
Controlled by client Driver, takes initiative
Analysis support/advisor Implementation support/co-responsible for result
Contractual short-term relationship Long-term relationship
Extracted from (Werr & Linnarsson, 2002)
24
Most clients look to Management Consultants to temporarily work with the client
staff as a unit intent on common goals. This situation is commonly referred to in the
literature as a “virtual organisation” (Weisenfeld et al., 2001) where consultants and
client staff work closely together as a unit bound by common goals. These ‘virtual
organisations’ establish their own hierarchies, idiosyncratic processes and methods
of communication.
2.1.2.2 Distrust of Perceived Management Fads
In the past, clients have been big on technological trends including Enterprise
Resource Planning, Business Process Re-engineering, Customer Relationship
Management and the like. Australian companies were spending large sums on new
technology, based on the assumption that purchasing the most up-to-date technology
would provide them with a competitive advantage. Once the euphoria of perceived
technological trends subsided, Australian companies were hit with the realisation that
technology implementations frequently did not deliver promised benefits (C Fox,
2002). This is just one of the factors that have triggered a downturn in the consulting
market. As a result, clients are reassessing their technological needs, no longer
searching for the “next big thing” and afraid of big ideas. Australian companies are
tending to make the most of what they have, preferring to partner with consultants in
a collaborative effort to improve the skill base of their employees via knowledge
transfer from consultant to client (Semadeni, 2001; Trinca, 2004). (D Cantor & C
Risen, 2002; Catherine Fox & Trinca, 2002; Werr & Linnarsson, 2002)
Furthermore, clients are focused on cutting costs out of their business, implementing
smaller more customised solutions to improve the processes of their business (D
Cantor & C Risen, 2002; Trinca, 2002a). It appears that adverse publicity in relation
to conflict of interest has negatively impacted the large international consultancies,
thus providing an opportunity for smaller firms (Schmerken, 2002) who are able to
leverage more junior consultants capable of performing procedural implementations
that would otherwise have been provided by larger more experienced firms (Maister,
1997).
In light of the current lack of confidence in relation to large consulting firms, it might
be expected that potential clients of Management Consultants would feel more
25
comfortable engaging a smaller management consultancy where the principal, of
known expertise and reputation, can be engaged to undertake a more complex
project. This is in contrast to the engagement of a large consultancy where the
consultants working on the project may be drawn from a pool containing many staff
unknown to the client.
2.1.3 The Effect of Technology on the Consulting Industry
2.1.3.1 The Impact that Evolving Technology has on the Way Consultants
Conduct Business?
As the technology of the 20th century has evolved, so has the role of the Management
Consultant. Tom Rodenhauser of Consulting Information Services, estimated that in
2001 60% of the Management Consulting market in the United States is made up of
e-business consulting (Buffini, 2001). It would appear that the same applies to
Australia, where Information Technology is still a major driving force in
Management Consulting (Lebihan, 2004a; Rennie, 2004; Trinca, 2002b, 2004).
Moreover, system integrators are attempting to gain entry into the consulting market,
while at the same time Management Consultants have come to the realisation that
delivering technical solutions is essential. This trend is further blurring the
distinction between what is a Management Consulting Firm and what is an
Information Technology implementation house (Sharif, 2002; Trinca, 2004).
In earlier times, Management Consultants were considered to be the providers of
advice relating to strategic, tactical and operational improvement. On the other hand,
Information Technology consultants were considered to be systems integrators,
application developers, and analysers of Information Systems in an attempt to align
business and technology strategy (Sharif, 2002). The two industries appear to be
converging as clients are searching for a one-stop shop of consulting services.
2.1.3.2 The Impact of the Internet on the Management Consulting Industry
The internet is proving to be one of the fastest growing technological areas. In
Australia internet usage grew by 8% in 2001, 2002, reaching 53% of the population
in 2002 (GeR 2002, 2002), and has since increased to 65.4% as of December 2004
(Internet World Stats, 2005). Globally, more than 817 Million people use the internet
26
worldwide. The United States of America has the greatest number of internet users
with approximately 201 Million of a population of 293 Million using the internet.
China currently has 93 million internet users up from 22 Million users in the year
2000 (Internet World Stats, 2005). Businesses in Australia are finding that they
must get online in order to remain competitive. The Management Consulting
industry has, like other industries, been heavily impacted by this trend.
The impact of the Internet on the consulting industry has been
substantial… the technology is accelerating already existing trends
such as centralisation…” and globalisation “…reversing others such
as leverage ratios, and introducing completely new capabilities, such
as finding qualified consultants online (Pereira, 2001)
The Internet is impacting on the way that “services are bought, sold, and delivered,
altering relationships amongst clients, firms and employees and speeding the
globalisation of the consulting industry” (Pereira, 2001). The smaller new entrant
firms are perceived by many clients as having their finger on the pulse in terms of e-
business, more so than the larger incumbent firms (Czerniawska, 2002; Pereira,
2001). The smaller new entrants have a reputation for being more creative, having a
deeper knowledge of internet technology, and a better appreciation of the e-business
marketplace (Pereira, 2001). Pereira argues the larger incumbent firms will place
more emphasis on e-commerce, investing more money in improving their knowledge
of and skills in this expanding area of the industry. This will position the larger
incumbent firms with an advantage over their smaller rivals, due to the long-standing
relationships and large extensive networks that the incumbents have with existing
clients.
Although the large incumbent firms had to deal with negative perceptions deriving
from the collapses of Enron and WorldCom, the large incumbent firms’ long track
record of successfully delivering results will give them greater credibility with
clients. Although there is a great deal of competition between new entrants and the
incumbents such as the ‘Big Four’ accounting firms, it is predicted that the market
will be dominated by the likes of PwC, KPMG and Cap Gemini Ernst and Young
due to their established relationships with clients (Pereira, 2001). However, Arthur
Andersen is finding it difficult to recover as they were at the centre of the collapses
27
of both Enron and WorldCom (Turner, 2003; "Unresolved Conflicts," 2003; Walters
& Andrews, 2004a).
Not only is the internet influencing the services that consultants are providing to
clients, it is affecting the manner in which they buy, sell and deliver them. “Sites
such as Expert Marketplace allow prospective clients to search a large number of
potential consulting firms, post requests for proposals, or ask the site’s staff to
recommend someone” (Pereira, 2001). Although the internet assists clients in buying
services, it may not be particularly well suited to the selling process, since many
sales are built on the establishment of personal relationships between client and
consultant. The medium of the internet is too restrictive and does not carry the
weight of a face-to-face meeting. (Pereira, 2001)
However, there is potential for the delivery of services over the internet. Clients’
expectations are increasing. They want services provided faster and better than
consultants have done in the past. The internet provides the possibility of distributed
project teams, pooling expertise from all over the world, communicating via
electronic means, rather than being bound to one physical location. IBM’s Notes and
Microsoft’s Exchange make it possible for project teams to collaborate on a project
in separate locations (Pereira, 2001).
Furthermore, delivery of services involves a great deal more than just the
coordination of project teams. The internet allows consultants to dispense advice and
provide expertise online, commonly referred to as ‘virtual consulting’ (Pereira,
2001). This medium is limited to small, uncomplicated consulting engagements.
Nonetheless ‘virtual consulting’ facilitates the provision of services from countries
that can provide expertise at a much lower rate, undercutting Australian consulting
firms.
However, large consulting firms still see this as an avenue to provide better customer
service. Ernst and Young provide an online advisory service for their clients, which
includes such services as news, alerts and analysis, a reference library, online
diagnostic tools, a secure web space for online collaboration and links to other web
resources. Ernst and Young Online (Ernst and Young Online, 2002) is not designed
to act as a replacement for the standard form of client engagements but is a tool to be
28
used by clients who may not wish to pay the hefty price of a face-to-face meeting to
find a solution to a simple problem.
The internet’s improved accessibility for customers and the greater ability for
organisations to disseminate information are influencing firm-client relationships. It
enables intermediaries to establish consistent standards for the evaluation of firms
and their consultants. Whilst this assists the client to make sound judgements based
on a firm’s past history of success and failure, it can also expose the client to the
inherent risks associated with trying to find an appropriate intermediary.
Intermediaries rely on information from clients in order to make an accurate
evaluation of consulting firms’ abilities. This can result in sharing information that
may be confidential or potentially embarrassing to existing clients if it were to be
released to the public. (Pereira, 2001)
Moreover, the internet has the potential to influence the balance of power attributed
to firm-employee relationships. Clients appear to be placing more emphasis on skills
of the individual delivering the services rather than the firm they belong to. The
internet makes it easier for clients to seek out the most qualified individuals rather
than rely on the consulting firm as an intermediary. “Auction-style markets, such as
FreeAgent.com, are developing, where individuals post their skills and are then
bought by companies and consulting firms to complete a specific project.” (Pereira,
2001)
2.1.3.3 The Impact of Globalisation on the Management Consulting Industry
In addition, the internet transcends geographical boundaries, providing opportunity
for consulting firms to establish dispersed teams of consultants across the globe
bringing to bear a unique mix of skills to meet the client’s expectations, thus
influencing the structure of the industry. The internet is encouraging a trend towards
centralisation of an industry, which traditionally consisted of decentralised
organisations (Pereira, 2001). As businesses moved towards the trend of
globalisation, they wanted to deal with a consulting firm that has a global focus
(Price, 2002; Roberts, 2004). However, as a consequence of recent events
concerning large accounting firms and the perceived conflict of interest of these
firms providing both auditing and consulting services to the same client; lack of
29
client confidence in large firms has resulted in many client organisations now
preferring to engage small consulting firms (Schmerken, 2002). In addition, many
smaller and medium sized firms have merged with or been acquired by larger firms.
This is opening a niche market for smaller consulting firms. The newly formed large
firms appear to concentrate their efforts on large clients. This allows small
consulting firms to target small and medium sized client firms (Roberts, 2004).
However, many client organisations wanting to expand globally will only engage
larger global consulting firms. This is based on the belief that global consulting
firms are at the leading edge of their industry and that local firms, without a global
presence, are incapable of understanding the issues associated with a global
expansion (Poulfelt et al., 2005; Roberts, 2004). That is, there are counter balancing
forces influencing clients’ decisions on whether to use small or large Management
Consulting Firms. John Bailey, of the Melbourne-based Carlton Consulting Group,
believes that small consulting firms need to build relationships with CEOs and other
senior executives in order to compete with big name firms such as McKinsey or
BCG (Trinca, 2004).
Poulfelt et al. (2005) and Roberts (2004) argue that in order for large and small firms
to prosper in the future, they will need to position themselves to deal with the
globalisation of industries and companies. Large firms will need to establish
themselves in many cities across the globe, whilst smaller firms will need to join
with larger firms to assist clients to address globalisation issues. In addition, in order
for smaller firms to compete they may need to brand and promote themselves as a
large “alliance” of firms by forming complementary networks or partnerships to meet
the needs of the clients.
2.2 Knowledge Management
Before first attempting to understand what Knowledge Management is or how
organisations go about managing knowledge we must first understand what
knowledge is. Is it distinct from information or are they the same? We are currently
in what is termed the ‘Information Age’, but are we moving toward a ‘Knowledge
Age’?
30
There is little agreement in academic literature on what knowledge actually is.
Nonaka (1994) quotes Plato by defining knowledge as “justified true belief”,
Davenport & Lawrence (2000) provide a more extensive definition of knowledge:
Knowledge is a fluid mix of framed experiences, values, contextual
information, and expert insights that provides a framework for
evaluating and incorporating new experiences and information. It
originates and is applied in the minds of knowers. In organisations, it
often becomes embedded not only in documents or repositories but in
organisational routines, processes, practices and norms.
Davenport and Lawrence (2000) point out that the definition makes clear knowledge
is more complex than any definition can describe. This complexity derives from
knowledge being situated in a social and conceptual context (Nonaka, 1994). As
human beings we cannot confidently say that we have a complete understanding of
what knowledge truly is. It is quite possible that we never will.
Empson and Morris (1998) provide a much simpler definition of knowledge:
Knowledge is viewed as information which professionals acquire
through experience and training, together with judgement which they
develop over time which enables them to deploy that information
effectively in order to deliver client services.
However, there appears to be much consensus on what knowledge is not. That is that
data and information, although related to knowledge, are definitely distinct from
knowledge (Awad & Ghaziri, 2004; Becerra-Fernandez, Gonzalez, & Sabherwal,
2004; Davenport & Prusak, 2000). Empson (1999a) consider data to be “objective
facts, presented without any judgement or context. Data becomes information when
it is categorised, analysed, summarised, and placed in context. Information is
therefore data endowed with relevance and purpose. Information develops into
knowledge when it is used to make comparisons, assess consequences, establish
connections, and engage in a dialogue. Knowledge can therefore be seen as
information that comes laden with experience, judgement, intuition and values.”
Sparrow (1998) goes a step further suggesting that at a human level knowledge is
distinct from skill and opinion. One could interpret knowledge as truth or fact, skill
31
as the individual’s aptitude to apply knowledge to a particular task or situation, and
opinion as reflecting personal bias and persuasion rather than fact. These variances
in definition of knowledge indicate how complex and elusive the concept of
knowledge is.
Furthermore, there are different types of knowledge, Polanyi (1958) separates
knowledge into two categories, explicit and tacit knowledge. Explicit knowledge is
knowledge that is easily captured, stored and codified and therefore able to be
represented in a formal and systematic language. Tacit knowledge, however,
belongs to the individual, is difficult to capture and is therefore considered more
valuable. It has been suggested that if the knowledge can be captured it is no longer
tacit but explicit, as tacit knowledge can only reside in the mind of the knower
(Armbrecht Jr. et al., 2001; Empson, 1999a, 2001a; Leonard & Sensiper, 1998;
Prusak, 1996). However, although tacit knowledge may be considered by many
academics and practitioners as too difficult to capture and store, it can still be shared.
Tacit knowledge may be externalised by the sharing of personal experience or social
interaction often referred to as “war stories” (Davenport, Javenpaa, & Beers, 1996;
Davenport & Marchand, 1999; Grant, 1996; Griggs, Wild, & Li, 2002; Sunassee &
Sewry, 2002). However, there is the view that there is no such thing as tacit
knowledge and therefore all forms of knowledge are capable of being codified
(Fransman in Dutrenit, 2000). Tacit knowledge is considered the most valuable
because it so difficult to replicate and is often the source of innovation, providing
Data
Information (data “in formation”)
Knowledge (actionable information)
Wisdom
Figure 2.1 - Data, Information and Knowledge (Awad & Ghaziri, 2004)
32
greater competitive advantage to the organisation that can harness it (Leonard &
Sensiper, 1998; Nonaka, 1991; Saint-Onge, 1996; Teece, 1998).
Armbrecht Jr. et al. (2001) suggest that many purists believe that once knowledge is
captured (i.e. documented) then it can no longer be considered knowledge but data or
information. However, knowledge need not be captured or stored in a Knowledge
Repository for it to belong to the organisation’s Knowledge Base. The tacit
knowledge stored within the organisation’s Knowledge Worker may be considered
part of the organisation’s Knowledge Base (Empson & Morris, 1998).
2.2.1 The Knowledge-Intensive Firm
Alvesson (2004) defines Knowledge-Intensive Firms as “organisations that offer to
the market the use of fairly sophisticated knowledge or knowledge-based products….
The core activities in these companies are based on the intellectual skills of a very
large proportion of the labour force deployed in development and often in the sale of
products and in service work.” However, a clear definition of the term ‘Knowledge-
Intensive Firm’ is still considered elusive (Newell et. al., 2002). In addition, the
attempt to distinguish Knowledge-Intensive Firms from myriad other types of firms
is considered a difficult undertaking.
Alvesson (2004) identified seven characteristics specific to Knowledge-Intensive
Firms which include:
1. Highly qualified individuals doing knowledge-based work, using intellectual
and symbolic skills in work;
2. A fairly high degree of autonomy and the downplaying of organisational
hierarchy;
3. The use of adaptable, ad hoc organisational forms;
4. The need for extensive communication for coordination and problem solving;
5. Idiosyncratic client services;
6. Information and power asymmetry (often favouring the professional over the
client);
33
7. Subjective and uncertain quality assessment.
Alvesson (2004) comments that with the exception of the fifth and sixth
characteristics that all the characteristics are valid for production-oriented knowledge
work and organisations. The fifth and sixth characteristics are mainly relevant to
Knowledge-Intensive and Professional Service Firms.
Professional Service Firms are considered a subset of Knowledge-Intensive Firms
(Empson 1999b; Newell et. al., 2002). “Strictly speaking, a professional is someone
who has won the right to membership of a professional association by completing an
accredited programme of training and examinations. This definition represents a very
narrow group of organisations - accounting, law, architecture and engineering
practices” (Empson, 199b). Lowendahl (1997) has attempted to draw a distinction
between types of Knowledge-Intensive Firms by suggesting that the role of the
professionals employed by the firm and the type of projects targeted is the key
strategic difference between Knowledge-Intensive Firms and other kinds of firms.
Lowendahl identifies three generic types of Knowledge-Intensive Firms depicted in
Table 2.3. Table 2.3 - Types of Knowledge-Intensive Firm
Types Strategic Focus Resources Examples Client Focused Client Relations Individually Controlled Law and Accountancy
Practices Problem-Solving Creative Problem-
Solving - Innovation Team-Based Advertising Agencies,
Software Development Firms
Output-Based Adaptation of Ready Solutions
Controlled by the Organisation
Some Large Management Consultancy Firms
Extracted From (Lowendahl, 1997)
Newell et, al (2002) argue that traditional Professional Service Firms consist of law
and accountancy firms, are generally organised along partnership lines, adhere to a
general code of practice, and adhere to clearly defined ‘up-and-out’ career paths.
Newell also comments that large Management Consulting Firms such as Accenture,
KPMG, and Cap Gemini Ernst & Young are often loosely referred to as Professional
Service Firms as they are organised in much the same way as a traditional
Professional Service Firm; the difference between these two types of firms being that
the traditional Professional Service Firm is client-based whilst the Management
Consulting Firm is output-based.
34
Newell et al. (2002) suggest that in the latter half of the twentieth century more
contemporary Knowledge-Intensive Firms have emerged in the form of advertising
firms, public relations firms, software development companies, and other high-tech
and specialist consulting firms. For many of these contemporary firms it is not
necessary for a knowledge worker to possess a degree or other formal education.
Considering the example of a software development firm, it is not necessary for a
knowledge worker to have obtained a degree in computer science to gain the
knowledge required to become a software developer. Many of the skills necessary
can be self taught (Newell et al., 2002). In the instance of a public relations and
advertising firm it is conceivable for someone to enter the industry in a lower level
administrative role with little if any tertiary qualifications, and work their way up the
organisational hierarchy via a system of observation, mentoring and on the job
training. These situations represent a lack of barriers to entry that are often enforced
by traditional Professional Service Firms and large Management Consulting Firms,
that require a minimum bachelor degree level education in a particular field.
Important writers in the field of Management Consulting, Professional Services and
Knowledge Management, like David Maister, Mats Alvesson and Bente Lowendahl,
use the term, Professional Service Firm more broadly to include organisations like
consulting firms, advertising agencies and investment banks (Empson, 1999b).
Empson (1999b) argues that a Professional Service Firm is any firm that uses the
specialist technical knowledge of its personnel to create customised solutions for
clients. The provision of customised solutions is what distinguishes Professional
Service Firms from the broader concept of the Knowledge-Intensive Firm (Empson,
1999b).
Empson (1999b) provides the example of a pharmaceutical company to distinguish a
Professional Service Firm from other Knowledge-Intensive Firms. Empson argues
that a pharmaceutical company develops a physical product to resolve a specific
problem and then exploits the innovation by selling it to multiple consumers.
However, Professional Service Firms, particularly Management Consulting Firms,
attempt to tailor the solution to the unique requirements of their client.
35
Accounting and consulting firms have received much attention in the prominent
literature because they are perceived as exemplars of Knowledge Management best
practice (Empson, 2001b; Lowendahl, Revang, & Fosstenlokken, 2001).
2.2.2 Why Firms are Implementing Knowledge Management Practices and
Strategies
The perceived high value of knowledge and recent advances in technology have
encouraged many organisations to turn their attention to the effective management of
knowledge (Empson, 2001b). Many organisations, including Professional Service
Firms, see knowledge as the key ingredient to sustainable competitive advantage
(Armbrecht Jr. et al., 2001; Davenport & Prusak, 2000; Dunford, 2000; Nguyen,
2004).
Doyle and Adeline (1998) quote Skyrme and Amidon (1997) as listing four key
factors that have given rise to an emphasis on Knowledge Management:
• Realization of the changing role of knowledge in society and business;
• Cost avoidance by reducing duplication of knowledge processes;
• Knowledge leverage as a competitive enabler; and
• Increasing appreciation of the value of intangibles which is often reflected as
intellectual capital in the share price of listed companies.
Knowledge Management is more than the mere capturing, sharing and dissemination
of knowledge as an internal process of more effective communication. Knowledge is
now considered a strategic asset (Zack, 1999) and as Skyrme and Amidon (1997)
have indicated, Knowledge Management’s real value is in knowledge re-use and the
ability to leverage knowledge to achieve a competitive advantage. Organisations are
discovering that in the contemporary market place the company that is more
competitive is the one that can best take advantage of its intangible assets such as the
organisation’s Knowledge Base. In the Information Age competitive advantage is
driven by the experience and expertise of its employees as opposed to the tangible
assets considered so important during the industrial age.
36
Table 2.4 - A Brief Chronology of Knowledge Management Technology Evolution
A Brief Chronology of Knowledge Management Technology Evolution
Period Orientation
1960s Data-centric, Information Technology orientation
Knowledge captured in forms, reports and databases
1970s Information-centric, MIS orientation
Data converted to information via ad hoc database queries, graphics, and
presentations
1980s Decision Support DSS Orientation
Knowledge encapsulated in models and simulations, more sophisticated statistical
applications
1990s Web-based Knowledge Support
Capture, organisation, and dissemination of knowledge using the Web
2000s Advanced Computation Techniques
Convert information to knowledge using concept clustering, linking, and
searching, ontologisms, multimedia, AI, and others
Extracted From (Griggs et al., 2002)
The pursuit to understand the nature of knowledge dates back to the time of Plato and
Aristotle. An investigation of the prominent literature suggests that there is little
agreement on the origins of Knowledge Management. However, the term
Knowledge Management is a recent one (Cheng Min, 2002). Table 2.4 provides a
brief chronology of how Knowledge Management technology has evolved since the
1960s. Although companies have been attempting to manage knowledge with
technology since the 1960s in order to assist managers and administration staff to
perform their job more efficiently and productively, it has only been in recent times
that the perceived value of knowledge as a means of sustainable competitive
advantage has been realised.
2.3 Delphi Method
The Delphi Method has taken several forms owing to its flexible nature (Hasson,
Keeney, & McKenna, 2000). The method’s flexibility has drawn much criticism
from pure scientific researchers who base their objections on the method’s alleged
lack of methodological rigour (Sackman, 1975). What the scientific purists fail to
realise is that the successful implementation of the Delphi Method requires both
37
methodological precision (Peiro Moreno & Argelaguet, 1993) and research rigour
(Hasson et al., 2000).
For the past 30 or so years the Delphi Method has been gaining more attention as a
means for distilling issues in the Information Systems (IS) discipline (Chang, Gable,
Smythe, & Timbrell, 2000). The Delphi Method can be best described as a group
facilitation technique that aims to gather the opinions of experts through a series of
structured questionnaire surveys, commonly referred to as rounds (Hasson et al.,
2000). The method is an iterative multistage process (Lynn, Laman, & Engelbardt,
1998; McKenna, 1994) which in our case serves the purpose of eliciting expert
opinion. Experts are the representative sample of individuals who have knowledge
in the discipline under investigation (Hasson et al., 2000).
The initial round collects qualitative comments in the form of issues from the
experts, which is then fed back to the respondents in the second round (Hasson et al.,
2000). This facilitates feedback to the respondents of the current status of the
collective opinion of the issues presented in the first round (Goodman, 1987). This
allows the respondents the opportunity to identify issues that they may have missed
or they thought were unimportant and change their opinion on the weight of the issue
(Couper, 1984; McKenna, 1994). The distinct advantage the Delphi Method has
over other group facilitated methods is the anonymity respondents can enjoy from
other respondents. This anonymity aids in the presentation of more unbiased opinion
from the shyer respondents than a group forum will allow (Hasson et al., 2000).
2.4 Literature Review Summary
The Management Consulting industry has been facing the challenge of an economic
downturn in demand for consulting services. Prior to 2001 the industry was booming
with no decline in sight. Several factors came into play impacting on the success of
the industry. The literature review established that the downturn could be attributed
to the events involving the collapse of Enron and WorldCom, and the destruction of
the World Trade Centre. On the Australian scene, the collapse of Ansett, HIH and
OneTel added to the mood of corporate fear and distrust. This has led to the
potential downsizing of the industry, the separation of consulting arms from their
parent accounting firms, and the resurgence in security and Disaster Recovery
38
Planning. The Management Consulting industry is attempting to boost its revenue by
focusing on outsourcing, placing greater emphasis on collaborative relationships with
clients, reducing fees and focusing on technology implementations.
Moreover, the literature review examined the way that technology innovation has
affected the Management Consulting industry and that many Management
Consulting Firms are diversifying to gain entrance into a much larger market and
provide an assortment of synergistic services to give their firm a competitive
advantage and promote long-term relationships with clients.
The literature review explained that the internet, whilst beneficial in assisting
consultants with customer service, distributed project teams, and the sale, purchase
and delivery of services, can also have a detrimental effect on local consulting firms.
The internet has encouraged the introduction of virtual consulting firms that are
established in countries with a lower labour cost enabling them to undercut local
Australian consulting firms. It also explained the possible negative impact that
supplying services over the internet can have on consultant-client relationships.
The literature further explored the Management Consulting industry with an
emphasis to gaining an understanding of the Knowledge Management related
literature. The literature review explored the nature of knowledge and the distinction
that can be drawn between data, information and knowledge. In addition, the
literature review examined Knowledge-Intensive Firms and identified that
Professional Service Firms are considered a subset of Knowledge-Intensive Firms.
Management Consulting Firms were recognised as being a subset of Professional
Service Firms with the key distinction between a Management Consulting Firm and
the traditional Professional Service Firm (law and accountancy firms) being that the
former is output-based whilst the latter is client-based.
The literature review also considered the importance of knowledge and Knowledge
Management to Management Consulting Firms. Management Consulting Firms see
knowledge as the key differentiator between themselves and other firms and the
means of attaining a sustained competitive advantage. This belief is driven by the
recognition that knowledge is the principal input and output of Management
Consulting Firms and as such is the industries stock-in-trade.
39
Finally, the literature review examined the Delphi Method including the process and
the benefits of using this method.
The next chapter will outline the various phases of the overall study and the
relationship between each of the four separate sub-studies to answer the following
three levels in the research question hierarchy of Management, Research and
Investigative Questions.
40
3 Research Plan
The objective of this chapter is to outline the various phases of the overall study and
the relationship between each of the four separate sub-studies to answer the
following three levels in the research question hierarchy of Management, Research
and Investigative Questions. The Management Question being: “How do current
issues for small-medium sized Management Consulting Firms in Australia
compare with those for large Management Consulting Firms? ” and the Research
Question being: “What are the Major Issues Facing Management Consulting
Firms in Australia?”
The three primary investigative questions the overall study will answer are:
1. What is the relative severity of the issues?
a. By demography: (State, Firm Size, Public Sector Work).
b. Between the Context Case Study and the Issues Delphi Study.
2. What are the Knowledge Management related issues facing
Management Consulting Firms in Australia?
3. What distinctions can be made between Knowledge Management
issues and approaches of small-medium sized Management
Consulting Firms and large Management Consulting Firms?
Each of the above questions are answered to a greater or lesser extent by each of the
four sub-studies of the overall study which attempts to answer the following question
‘What are the major issues facing Management Consulting Firms in Australia?’
Table 3.1 – Sub-Studies Emphasis on Research Questions Sub-Studies Emphasis on Research Questions
Sub-Study\Questions Question 1 Question 2 Question 3
Context Case Study High Low Medium
Accenture Case Study Low High Medium
Issues Delphi Study High Medium Medium
Knowledge in PSFs Low High Medium
Table 3.1 provides the emphasis of each of the sub-studies in relation to each of the
research questions. Both the Context Case Study and the Issues Delphi Study place a
high level of emphasis on identifying and gauging the importance of issues faced by
41
the Management Consulting industry in Australia. The Context Case Study attempts
to identify issues faced by the Australian Management Consulting industry by
gathering data from the executive of the Institute of Management Consultants (IMC).
The Issues Delphi Study expands on the findings of the Context Case Study via two
survey rounds of the entire IMC membership. The first round gathers as many issues
as possible from the membership whilst the second round asks the membership to
weight the issues gathered during the first round.
Both the Accenture Case Study and the Knowledge in Professional Service Firms
Study place very little emphasis on the first research question as the focus of both of
these studies is on the role of Knowledge in Professional Service Firms. The
Knowledge in Professional Service Firms Study is shaded in Table 3.1 because it is
not an empirical research study in the same sense as the others, but rather a
conceptual analysis of the Knowledge in Professional Service Firms model
constructs and the relationships between the constructs (undertaken to increase the
researcher’s understanding of the role that knowledge plays in Professional Service
Firms).
In attempting to answer question two, ‘What are some of the Knowledge
Management related issues facing Management Consulting Firms in Australia?’, the
Context Case Study places a low level of emphasis on this question. The IMC’s
membership, being predominately small-medium sized consulting firms, meant that
the respondents paid little attention to the value of Knowledge Management.
Evidence gathered from the Context Case Study discovered that the majority of
small-medium sized firms consider Knowledge Management to be unimportant. The
evidence identified several factors including: the unique nature of projects
undertaken, and as most were sole traders, the respondents believed there was no
need to capture, store and transfer knowledge for use by other staff.
The Issues Delphi study placed a medium level of emphasis on the second research
question, as a substantive number of Knowledge Management related issues were
gathered during the Inventory Round of the Issues Delphi Study. However, the focus
of both the Context Case Study and the Issues Delphi Study was not solely on
Knowledge Management related issues but on a broader range of issues faced by the
Management Consulting industry and small-medium sized firms specifically.
42
However, the Accenture Case Study and the Knowledge in Professional Service
Firms Study placed substantial emphasis on the Knowledge Management issues that
Management Consulting Firms face. The Accenture Case Study and the Knowledge
in Professional Service Firms Study considered the role that Knowledge
Management plays in a Management Consulting Firm, particularly in relation to
Knowledge Management Strategies and Practices.
All four sub-studies place a medium level of emphasis on question three, which is
‘What distinctions can be made between Knowledge Management approaches of
small-medium sized Management Consulting Firms and large Management
Consulting Firms?’. The Context Case Study and the Issues Delphi Study focus on
the small-medium sized Management Consulting Firms. The focus is due to the
demographic nature of the study sample, the membership of the Institute of
Management Consultants comprises mainly of small-medium sized consulting firms
of fewer than five consultants. The Accenture Case Study focuses on the large firm
perspective. Although the Accenture Case Study sample is the Government Practice
of Accenture Australia, Accenture operates as a global organisation. Accenture’s
Government Practice in Australia can be considered a large organisation in its own
right by virtue of its size and complexity. Empson and Morris (1998) argue that their
model describing the role of Knowledge in Professional Service Firms is equally
applicable to firms of any size.
43
3.1 Overall Research Plan
Figure 3.1 depicts the seven main activities of the study, with a brief description of
each phase discussed in section 3.1.
Research Context & Motivation
Research Design and Strategy
1. Research Context and
Strategy
2. Context Case Study
3. (Accenture Case Study)
4. Issues Delphi Study
5. K – in PSFs(Empson &
Morris)
7. Masters Thesis Write-up
6. Comparative Data
Analysis
MC Issues
Comparative Analysis (3
Studies)
Lit Review
THESIS
Figure 3.1 - Study Research Plan
Kno
wle
dge
Man
agem
ent
in P
rofe
ssio
nal S
ervi
ces
Managem
ent Consulting
Adapted E & M Model
(K in PSFs) Consulting Issues
Framework
KM Issues, Strategies and
Practices
Research Questions
Activities Outputs Input
Document/ Instrument
Final Output
Legend for Figure 3.1
Items Grouped Together
or
IMC Issues and Demographics
Issues Mapped into E & M
44
1. Research Context and Strategy
During this phase, the study motivation was identified and crystallised. In doing so,
the principal research question was developed from which a hierarchy of research
questions was derived to drive the research. From this research question hierarchy
the approach adopted to gather data and perform data analysis was determined.
2. Context Case Study
The Context Case Study on major issues in Management Consulting Firms is one of
few attempts to address this important problem area in Australia. The study assists in
identifying issues by obtaining data from Executive of the Institute of Management
Consultants (IMC), the professional body for Management Consultants in Australia.
By initially identifying issues consultants perceive as most important, the results of
this study can assist IMC to provide new services to effectively address member
needs.
The Context Case Study was conducted as a forerunner to a larger survey-based
Issues Delphi Study into Management Consulting issues. The Context Case Study is
an important initial step in the overall study, providing an opportunity to gain a
preliminary understanding of the issues. In addition, the Context Case Study assisted
in the design of the survey instruments for the Issues Delphi Study and assisted in
interpreting the data derived from the survey.
3. Accenture Case Study
An exploratory and descriptive case study was conducted to discover Knowledge
Management Strategies and Practices in the Australian branch of Accenture, an
International Professional Service Firm. The large size of Accenture provides a
complement to the study of small-medium sized Management Consulting Firms
investigated by the Context Case Study and the Issues Delphi Study. Though the
Accenture Case Study has an operational emphasis, both macro and micro issues of
Knowledge Management are considered; macro issues pertain to the creation of
Knowledge Assets, while micro issues pertain to creation, transfer and reuse of
knowledge within the firm, as well as Knowledge Transfer between the consultant
45
and their clients. The data was gathered from interviews with Accenture staff and
from access to Accenture documentation.
The Accenture Case Study offers a large sized firm perspective of Management
Consulting compared with the almost exclusive small-medium sized firm perspective
of the Context Case Study and the Issues Delphi Study.
Knowledge Management is identified as essential to the achievement of sustained
competitive advantage for Professional Service Firms including Management
Consulting Firms (Armbrecht Jr. et al., 2001; Davenport & Prusak, 2000; Dunford,
2000; Nguyen, 2004). The overall study attempts to compare the issues gathered
from IMC and Accenture, in addition to mapping the issues gathered from both
organisations into a model that describes the role of Knowledge in Professional
Service Firms.
4. Issues Delphi Study
Both the Context Case Study and the Issues Delphi Study place a high level of
emphasis on identifying and gauging the importance of issues faced by the
Management Consulting industry in Australia. The Context Case Study attempts to
identify issues faced by the Australian Management Consulting industry by gathering
data from the Executive of the Institute of Management Consultants (IMC). The
Issues Delphi Study expands on the findings of the Context Case Study via two
survey rounds of the entire IMC membership. The Inventory Round gathers as many
issues as possible from the membership whilst the Weights Round asks the
membership to weight the issues gathered during the Inventory Round.
5. Knowledge in Professional Service Firms
Investigation into the role that knowledge plays in Management Consulting Firms led
to the analysis of the Knowledge in Professional Service Firms model. This model
provides a description of how knowledge impacts the firm’s Economic Structure and
Organisational Structure. Furthermore, the model implies that the firm’s knowledge
strategy also affects its ability to compete in the external market for consulting
industry workforce and for client projects.
46
This phase of the project involved the conceptual analysis of the relationships
between all the constructs of the Knowledge with Professional Service Firms model.
Analysis of the model served to improve the researchers’ understanding of the role of
Knowledge Management in Professional Service Firms.
6. Comparative Data Analysis
Each of the separate sub-studies involves their own form of data analysis, with
greater detail covered in each of the sub-study chapters. In addition, a comparative
analysis of the four studies was performed, with an emphasis on Knowledge
Management. The comparative analysis involves the comparison of findings from all
four sub-studies.
7. Masters Thesis Write Up
The purpose of this phase is to generate a detailed report of the entire study findings,
culminating in this study dissertation.
3.2 Context Case Study
Figure 3.2 – ‘Components of the Context Case Study’ expands the view of ‘Activity
2 – Context Case Study’ in Figure 3.1 – Overall Study Design depicted above. The
Context Case Study consists of seven main activities. 1) An annotated bibliography
of the salient literature including an abstract and comments on the relevance of the
literature to the Context Case Study. 2) A comprehensive literature review into the
issues facing the Australian Management Consulting industry. 3) A Context Case
Study protocol based upon the literature review as well as the research questions.
The Context Case Study protocol is attached as Appendix A 4) Interviews conducted
with the IMC Executive. The interviews adhered to the Context Case Study protocol
which included a combination of open-ended and closed questions to gather as much
rich detail as possible but at the same time gather answers to specific questions of
interest.
47
5) Prior to the conduct of the data collection and analysis a project proposal was
developed which outlined the plan and approach of the Context Case Study. This
plan included the Context Case Study protocol, timelines, resources and ethical
concerns that needed to be addressed prior to performing the data collection attached
as Appendix A. 6) The data analysis involved comparing the issues identified during
the data collection process with those identified in the predominant literature. The
findings revealed issues that were consistent with both the literature and the data
gathered, issues revealed within the data gathered that were not identified in the
literature, and issues that were identified in the literature but not revealed in the data
gathered. 7) The final activity involved the write-up of the Context Case Study
2.1 Annotated Bibliography
2.2 Literature Review
2.3 Case Study Protocol
2.4 IMC Exec Interviews
2.6 Report Write-up
ACIS 2003 Conference Paper
2.5 Data Analysis
MC Issues (Derived from
Literature)
MC Issues (Derived from
IMC)
Consulting Issues
Framework
Lit’ & IMC Comparison Data
IMC Demographic
Data
ITN100 ITN264
Context Case Study Report
Figure 3.2 – Components of Context Case Study
48
report which also yielded a conference paper in the Australasian Conference in
Information Systems on the findings of the Context Case Study.
The QUT Postgraduate Subject ITN100 – Research Methodologies is an introductory
subject that guides students through the initial conduct of research up to and
including the project proposal. In addition, the researcher was involved in the
subject ITN264 – Information Systems Consulting which assisted me to interpret the
issues identified in the literature as well as the issues revealed in the data gathered. It
also provided the opportunity to present findings from my initial investigations and
receive feedback from a cohort of Information Systems Consulting students.
3.2.1 The Research Question for the Context Case Study
What are the issues facing firms in the Australian Management Consulting industry?
This problem statement, in accord with the problem statement for the overall study,
forms the basis of the Context Case Study that is described here. The Context Case
Study is an important initial step in the overall study design as it provides an
opportunity to gain a preliminary understanding of the issues facing the Australian
Management Consulting industry.
The Context Case Study aims to achieve the following objectives:
Provide preliminary indications of issues facing the Management Consulting
industry in Australia as an early aid to Institute of Management Consultants
(IMC) in targeting services to members.
Provide the research team with a feel for the environment to facilitate the
design of the Issues Delphi Study survey instrument and survey approach.
Provide rich qualitative data to assist in interpreting data from the other sub-
studies (Accenture Case Study and Issues Delphi Study), and the constructs
and relationships of the Knowledge in Professional Service Firms model.
The investigative questions listed above assist in answering the overall study
research questions in section 1.2 by comparing the relative severity of issues across
demography from both the Context Case Study and Issues Delphi Study. In addition,
49
the comparative analysis presented in Chapter 8 identified several similarities and
differences between the findings of both sub-studies.
Furthermore, the Context Case Study addresses the overall study’s second and third
research questions by identifying several issues with regard to Knowledge
Management, Knowledge Transfer and Knowledge Sharing. This was particularly
useful when comparing the data gathered with the Accenture Case Study. This
allowed the researcher to compare Knowledge Management issues and approaches of
both small-medium and large sized Management Consulting Firms.
3.2.2 Position of the Context Case Study
The Context Case Study provides insight into an area not previously studied
formally, providing preliminary indications of challenges and opportunities for
Management Consultants in Australia. Importantly, it offers potential insights into
these issues at a time of major change for Management Consulting in Australia and
internationally. Furthermore, IMC’s membership consists predominantly of small-
medium sized firms consisting of less than five consultants. This makes both the
Context Case Study and the Issues Delphi Study valuable in their own right as the
predominant literature focuses on large Management Consulting Firms and provides
little insight into small-medium sized consulting firms.
The follow-up Issues Delphi Study (discussed in Chapter 6) builds on the
understandings derived from the Context Case Study. The Issues Delphi Study
assists in clarifying these issues by obtaining data from members of the Institute of
Management Consultants Australia (IMC) as a primary source of evidence.
By identifying the issues consultants perceive as most important, IMC can assist
their members to address them. Furthermore, members of IMC will have the
opportunity to use the results of both the Context Case Study and the Issues Delphi
Study to compare their own perceptions of opportunities and challenges with those
of their professional peers.
3.3 Issues Delphi Study
The overall study commenced with refinement of the overall study design,
confirmation of IMC access, and agreeing the study instruments, including: case
50
study protocol, multi-round survey instruments, draft covering e-mails and web-
based data collection facilities. Early decisions were required on the data collection
approach (e.g. e-mail attachments, web-based, or both) the destination of survey
returns.
The Issues Delphi Study, involving a survey of the IMC membership, had been
preceded by the Context Case Study of Management Consulting issues in Australia.
The survey involves a Delphi-like approach, which seeks to first brainstorm major
issues facing the Management Consulting Firms in Australia, then work toward
consensus across the respondents on a synthesised list of Major Issues and their
relative importance.
Figure 3.3 depicts the principal phases of the Issues Delphi Study. We use the term
‘institute’ herein to refer to any organisation studied. Initially this investigation
seeks to study IMC in Australia and
discussions have been opened with IMC Hong
Kong and Canada who have expressed interest
and it is anticipated that the study will be
extended through Europe and other Countries
in South East Asia and North America via the
International Council of Management
Consulting Institutes. Substantial potential
exists for extending the study to other
countries and from cross-country
comparisons. Also, for comparison purposes,
the design treats IMC as a separate entity or
institute for each repetition of the study over
time (possibly bi-annually), providing the
possibility of further study in this research
field beyond the study reported here.
The Issues Delphi Study consists of two survey rounds. Round one seeks to
inventory issues. The basic question being asked is “What are the major issues facing
your consulting firm?” The wording of this simple question is crucial, being
CaseStudy
Inventory(round 1)
Confirm(round 2)
Synthesis
Weight(round 3)
Analyze
Interpret& Report
Del
phi d
ata
colle
ctio
n ro
unds
Original issues
Summary Main and sub-issues
Confirmed Main and sub-issues Weighted Main and sub-issues
Clusters & Statistics
Context report
Individual
case report
For E
ach
Inst
itute
Agree Instruments Protocol,
Survey,Report templates,Web
Institute
Figure 3.3 – Issues Delphi Study Phases
51
consistent with the major research question of the overall study. A copy of the
Inventory Round survey instrument is attached as Appendix B.
Having gathered a large number of factors, we next sought to synthesise a
manageable, summary set of Major Issues (17) and Super Issues (72). Both top-
down (mapping onto existing frameworks) and bottom-up (data-driven) approaches
were attempted and results evaluated and compared. In Round two of the Issues
Delphi Study, our mapping of original issues from each respondent to the summary
set was to be returned to each respondent for confirmation, thereby further co-opting
respondents to the study, while further validating the summary factors. However, for
the purpose of this study the confirmation round was circumvented due to the
complex nature of this process. Adding to this, IMC’s sensitivity about allowing the
researchers to contact IMC members directly made this round too difficult to
conduct. In the final survey round, respondents were asked to score or weight the
relative importance of the 72 Super Issues distilled from the original 396 issues
gathered during the Inventory Round. An example of the weights survey is attached
as Appendix C.
Weights returned have been analysed to first identify clusters of respondents with
differing priorities, and then to compare relative ranks and weights from respondent
clusters and across various sample segments based on demographics. This institute-
level analysis and the earlier institute-case study yields an individual institute
report.
3.4 Accenture Case Study
The Accenture Case Study offers a contrasting and complementary perspective to the
Context Case Study and the Issues Delphi Study into Management Consulting issues.
The Context Case Study and the Issues Delphi Study provide insight into a broad
spectrum of issues facing the Australian Management Consulting industry with
emphasis on small-medium sized firms, arising from the demographic nature of the
IMC membership. Given the emphasis the literature placed on Knowledge
Management within the Management Consulting industry, the researchers predicted
that Knowledge Management issues would also be significant. By contrast the
Accenture Case Study considers an in depth examination of the Knowledge
52
Management Practices and Strategies of one of the leading International Professional
Service Firms, Accenture.
The Accenture Case Study can be considered exploratory and descriptive in nature as
there is no underlying theory to be tested and the case study serves to improve the
understanding of an International Professional Service Firm’s Knowledge
Management Strategies and Practices. Both macro and micro issues of Knowledge
Management were explored. Macro issues consider knowledge as a strategic asset,
while the micro issues include the capture, codification, transfer and reuse of
knowledge within the firm and between the firm and its clients. In addition, the
ownership of knowledge captured on consulting engagements and methods used to
gain access to client knowledge are considered. Furthermore, the client consultant
relationship is examined in the context of knowledge transfer and intellectual
property to understand the challenges with administering Knowledge Management
issues across organisational boundaries.
The focus of the Accenture Case Study is on the consultant perspective of the
relationship. The characteristics and difficulties of Knowledge Management within
the client-consultant relationship are considered, to grasp the complexities faced
during engagements. This may serve as a basis to suggest opportunities for
improving the outcomes from consultant engagements for Accenture (Nguyen,
2004).
The Accenture Case Study attempts to answer the following investigative questions:
1. How is knowledge created, captured, accessed, shared and reused from one
engagement to the next?
2. Why is Knowledge Management considered important within client
consultant projects?
3. Why is some knowledge captured and how is the extent of what knowledge is
captured from engagements determined?
4. How is the effectiveness of Knowledge Management measured in Accenture?
53
The Accenture Case Study investigative questions focus on Knowledge Management
related issues is directly linked to the overall study investigative questions (2) What
are the Knowledge Management related issues facing Management Consulting Firms
in Australia? and (3) What distinctions can be made between Knowledge
Management issues and approaches of small-medium sized Management Consulting
Firms and large Management Consulting Firms? The focus on Knowledge
Management related issues in Accenture provides the researchers with insight into
Knowledge Management’s impact on large Management Consulting Firms and
allows the researchers to compare this insight with the evidence gathered on small-
medium sized Management Consulting Firms.
In addition, understanding of Accenture’s Knowledge Management Strategies and
Practices allows the researchers to identify other issues faced by large firms
including Accenture’s Knowledge Management Strategies and Practices impact on
the client-consultant relationship.
3.5 Chapter Summary
This chapter outlined the various phases of the overall study and the relationship
between each of the four separate sub-studies. Each of the sub-studies addresses the
overall study’s three investigative questions, 1) What is the relative severity of issues
facing Management Consulting Firms in Australia? 2) What are some of the
Knowledge Management related issues facing Management Consulting Firms in
Australia? and 3) What distinctions can be made between Knowledge Management
approaches of small-medium sized Management Consulting Firms and large
Management Consulting Firms?
In addition, the chapter outlined the approach taken with each of the sub-studies as
well as each of the sub-studies’ aim and purpose. The next chapter takes a more in
depth look into the Context Case Study outlining the research approach of the
Context Case Study, as well as the analysis of the data gathered and consequent
findings. The Context Case Study marks the initial step in the overall study by
providing a background context of the Management Consulting industry to assist
with the interpretation and analysis of data gathered during the subsequent Issues
54
Delphi Study, Accenture Case Study and the conceptual analysis of the Knowledge
in Professional Service Firms model.
55
4 Management Consulting Issues Context Case Study
The objective of this chapter is to outline the approach taken toward the Context
Case Study’s data collection and analysis as well as present the findings of the
Context Case Study. In addition, this chapter will provide information about the
study sample, the members of the Institute of Management Consultants (IMC). This
information will include IMC’s function and objectives, and background as well as
the characteristics of IMC membership.
Furthermore, the case study method will be explored in terms of its relevance to the
study as well as validity and reliability provisions. The approach and considerations
observed for the interview process followed are also explained.
4.1 Context Case Study Research Question
What are the issues facing firms in the Australian Management Consulting industry?
This problem statement, a restatement of the problem statement of the overall study,
forms the basis of the Context Case Study that is described here. The Context Case
Study was planned as a forerunner to a larger survey based study, an Issues Delphi
Study. The Context Case Study is an important initial step in the overall study as it
provides an opportunity to gain a preliminary understanding of the issues, and assist
in the design of the survey instrument for the Issues Delphi Study. It also offers the
potential to assist in interpreting the data derived from the survey and analysis of the
data from the other three sub-studies.
Specifically, the research project aims to use a Context Case Study to achieve the
following objectives:
Provide preliminary indications of issues facing the Management Consulting
industry in Australia as an early aid to Institute of Management Consultants
(IMC) in targeting services to members
Provide the research team with a feel for the environment to facilitate the
design of the Issues Delphi Study survey instrument and survey approach
56
Provide rich qualitative data to assist in interpreting data from the other sub-
studies (Accenture Case Study and Issues Delphi Study), and the constructs
and relationships of the Knowledge in Professional Service Firms model.
4.2 Study Sample – Institute of Management Consultants
4.2.1 Institute of Management Consultants’ Function
The Institute of Management Consultants (IMC) is the professional
body representing Management Consultants. It sets and maintains
standards for the profession in Australia. It seeks to make the
profession of Management Consulting recognised, respected and
accepted as providing a valuable and indispensable service to
organisations in Australia and the Asia Pacific Region. (IMC(AUS)
Home Page, 1999)
IMC Objectives (IMC(AUS) Home Page, 1999):
Raise the character and status and to advance the level of the Management
Consulting profession;
Increase the confidence of the community in the employment of Management
Consultants;
Promote honourable practice, to repress malpractice and to settle disputed
points of practice;
Provide for the delivery and holding of lectures, exhibitions, meetings,
classes and conferences;
Encourage the study of principles involved in the practice of Management
Consulting; and
Test by examination or otherwise the competence of persons engaged or
intending to be engaged in the profession.
IMC’s objectives are designed to promote awareness of the Management Consulting
industry and encourage members to abide by a high ethical standard as well as a high
57
standard of professional excellence. These objectives can be considered
characteristic of most professional societies. IMC hopes that by applying these
standards to its members it will become recognised as the representative body and
advocate for Management Consultants in Australia.
4.2.2 Background of Institute of Management Consultants
The Institute of Management Consultants was established in Sydney, Australia in
1969 with five members. Since 1969 IMC has now relocated its national office to
Brisbane, Queensland. Although IMC is a national body it maintains independent
chapters in each state of Australia, each governed by a Chapter President.
The Queensland Chapter boasts the largest number of members, whilst the
Tasmanian Chapter has the highest percentage membership per number of practising
consultants within their state. As of 2004, 1096 of 30,000 (Provided by IMC from
Australian Bureau of Statistics, 2001) practising Management Consultants in
Australia are members of IMC (IMC, 2004, 2005). The majority of IMC’s members
belong to small consulting firms, consisting of five or fewer consultants. Like most
professional bodies, membership to IMC is restricted to those professionals that meet
IMC’s entry requirements and who also agree to abide by the IMC Code of Conduct.
4.2.3 Characteristics of IMC Membership
In order to become a member of IMC a person must satisfy certain conditions, the
most important criterion being that the person is providing Management Consulting
services in some form or another whether it is as a full-time practising Management
Consultant, an internal consultant of a firm that is not in the business of Management
Consulting, or an academic staff member who provides consulting services.
In addition to these conditions, applicants must also be able to satisfy requirements
of professional qualifications, industry experience and personal standards. These
requirements are assessed in the form of an application form, interview and the
investigation of references provided by the applicant.
Once accepted, there are different grades of membership based upon the member’s
experience and qualifications. The grades of members are as follows:
58
Associate: This grade includes graduates with less than three years experience,
non-graduates with more than eight years experience and academics
who have provided internal consulting services for less than three
years.
Member: This grade includes graduates and academics with more than three
years experience and full-time non-graduate Management Consultants
with more than eight years experience.
Fellow: This grade includes individuals that have held the member grade for
more than five years, have practised Management Consulting for at
least fifteen years and in that time, have done so with distinction.
These grades of membership form the basis of a recognition system to assist
members reputation and standing within the professional community.
4.3 Study Context
The Context Case Study provides insight into a broad spectrum of issues facing the
Australian Management Consulting industry with emphasis on small-medium sized
firms. Emphasis on this demographic was due to the characteristics of the Context
Case Study’s sample, the membership of the Institute of Management Consultants
(IMC). IMC’s membership consists primarily of firms with fewer than five
consultants. Given the emphasis the literature has placed on Knowledge
Management within the Management Consulting industry, the researchers predicted
that Knowledge Management Issues would also be significant.
The Context Case Study on major issues in Management Consulting Firms is one of
the few attempts to address this important problem area in Australia. The study
assists in identifying issues by obtaining data from the Executive of the Institute of
Management Consultants (IMC), the professional body for Management Consultants
in Australia. By initially identifying issues consultants perceive as most important,
the results of this study can assist IMC to provide new services to effectively address
member needs.
Furthermore, by comparing the issues derived from the IMC Executive with that of
the salient literature, the researcher was able to draw a picture of the industry in
59
Australia. This picture allowed the researcher to better interpret the data from the
Issues Delphi Study and assisted the researcher to synthesis the original 396 issues
received to a manageable 72 Super Issues and 17 Major Issues.
The results of Context Case Study helped to foster the research team’s relationship
with IMC. Preliminary results gave IMC a marketing tool to demonstrate IMC’s
solid commitment to identifying issues faced by its members and in-turn, develop
products and services to assist its membership deal with the issues. The Context
Case Study was a means of guaranteeing access to IMC’s membership and raising
the profile of the Issues Delphi Study with preliminary results.
4.4 Methodology
4.4.1 The Case Study Research Design
The purpose of this sub-study is to provide insight into preliminary issues to give
context to the larger more extensive Issues Delphi Study of IMC members. The case
study method adopted lends itself to the exploratory nature of the study allowing for
the gathering of rich qualitative data (Yin, 1994).
4.4.2 The Unit of Analysis
The unit of analysis for this study is the Management Consulting industry in
Australia with particular emphasis on small-medium sized firms. Data gathered
from the perspectives of the Chapter Presidents of Queensland, New South Wales,
Victoria, Tasmania, South Australia and the Manager for the IMC Secretariat. The
study aims to identify and explain the range of issues affecting the Management
Consulting industry in Australia. The IMC Executive speaks on behalf of the IMC
members and as such is the best source of data to assist in identifying a preliminary
set of issues associated with the Management Consulting industry.
The study draws on information from the perspective of the Management Consultant
more than it does from the client’s perspective. It is felt that this perspective will
assist IMC determine how best to serve its members and to serve as an advocate and
voice for the profession.
60
4.4.3 Relevance of the Case Study Method
The purpose of the Context Case Study is to generate rich qualitative data as
background to the Issues Delphi Study into the issues faced by Management
Consultants in Australia. The reasons for selecting a combination of the case study
and survey method are described below in table 4.1. These two approaches are
complementary because each addresses the other’s weaknesses and each contributes
distinctive strengths. The case study method lends itself to this preliminary study
because it allows the researcher to take an exploratory approach where much of the
evidence is qualitative in nature. In this particular application it is particularly useful
as a preliminary study providing the researchers with a feel for the current
environment that the parent study is investigating. (Burns, 1997)
Table 4.1 - Relative Strengths of Case Study and Survey Method
Relative Strengths of Case Study and Survey Method
Strengths Case Study Survey
Controllability Low Medium
Deductibility Low Medium
Repeatability Low Medium
Generalisability Low High
Discoverability (explorability) High Medium
Representability (potential model complexity) High Medium
Extracted From (Gable, 1994b)
4.4.4 The Context Case Study Design
For the purposes of the Context Case Study the design is a single exploratory case
study. The primary objective is to gain some contextual understanding of major
issues for Management Consultants in Australia, drawing on data gathered from
members of the IMC Executive.
4.4.5 Case Validity and Reliability
Yin (1994) has identified four commonly used tests to ensure good case study
design. Table 4.2 reveals tactics for dealing with the four tests when conducting case
studies. How each tactic is used in this case study is explored in greater detail in the
subsequent sections.
61
Table 4.2.- Methods for Ensuring Good Case Study Design Tests Case Study Tactic Phase
Construct Validity Use multiple sources of evidence Establish chain of evidence Have key informants review draft case
study report
Data Collection Data Collection
Composition
Internal Validity Do pattern-matching Do explanation-building Do time-series analysis
Data Analysis Data Analysis Data Analysis
External Validity Use replication logic in multiple case studies
Research Design
Reliability Use case protocol Develop case study database
Data Collection Data Collection
Adapted from (Yin, 1994)
4.4.5.1 Construct Validity
The purpose of construct validity is to establish the correct operational measures for
the concepts being studied (Yin, 1994). Table 4.2 provides three tactics for ensuring
construct validity, the first being the use of multiple sources of evidence. Evidence
gathered in this study includes notes and transcripts from interviews with the
Executive of the Institute of Management Consultants (IMC), literary material
gathered as a part of the literature search, and any relevant documentation provided
by IMC. Yin (1994) states the benefits of collecting evidence from multiple sources
is that it “provides multiple measures of the same phenomenon.” Yin, Bateman and
Moore (1983) comment that case studies that gathered evidence from multiple
sources are rated more highly in terms of quality than those relying on a single
source of information.
The second tactic listed in table 4.2 is establishing a chain of evidence, which is
achieved by documenting the process of investigation and maintaining a database of
the data gathered for the study. The documentation and database should allow a third
party to follow the chain of evidence employed in the case study and as a result draw
the same conclusions as the researcher. The chain of evidence was achieved by
maintaining a record of the literature gathered to in an EndNote Database,
spreadsheets of survey data and analysis, hardcopy documentation from study
samples, and interview transcripts.
The third tactic is to have key informants review the evidence collected as well the
draft case study report. The key informants in this situation are the IMC Executive.
Interviewee reviewed notes taken during interviews, made any modifications and
62
added comments about the notes and then returned them to the research team. In
addition, the IMC National Secretariat reviewed the draft case study report providing
feedback to the researchers.
It can be seen from the above tactics that appropriate steps have been taken in the
conduct of this study to attempt to safeguard its construct validity.
4.4.5.2 Internal and External Validity
Yin (1994) suggests that internal validity is only concerned with causal or
explanatory case studies. As this is an exploratory case study it does not apply. The
main purpose of external validity is to generalise a particular set of results to a
broader theory (Yin, 1994). This does not apply for the purposes of the Context Case
Study.
4.4.5.3 Reliability Provisions
To ensure reliability, two tactics are employed, the adoption of a case study protocol
and the maintenance of a case study database. A case study protocol has been
developed by the Senior Research Associate Doctor Bob Smyth, and is attached as
Appendix A. For the purposes of the study, ‘EndNote’ software is used as the
database repository. EndNote is used to store reference data and the electronic or
physical address where material is stored.
To ensure reliability in a case study it is important to ensure that the entire process is
documented, so that if another researcher were to follow the same process they
would come to the same conclusions. The procedure for documenting the process
forms part of the case study protocol.
4.5 Data Collection
4.5.1 Selection of IMC as Primary Source of Evidence
The reasons for selecting the IMC Executive as the primary source of evidence are
twofold. Firstly, IMC is the industry sponsor for the Issues Delphi Study and
secondly, the IMC Executive can be seen as somewhat representative of the IMC
63
members and thus a sound source for identifying preliminary issues that assisted with
the design of the Issues Delphi Study.
4.5.2 Data Collection Methods for the Case Studies
For the purpose of this study data collected was primarily by interviewing the IMC
Executive. Supporting documentation relating to the structure, membership
requirements and Code of Conduct of the Institute has been supplied, via the IMC’s
National Secretariat. The collection of data from multiple sources is recommended
when adopting the case study approach (Benbasat, Goldstein, & Mead, 1987; G. G
Gable, 1994a; Yin, 1994).
The interviews were conducted in a semi-structured fashion to ensure that all
anticipated data required was gathered, yet allowing scope for the interviewer to
pursue additional, potentially fruitful, data when responses of an unexpected nature
occurred. An interview protocol was adopted to ensure consistency across all the
interviews conducted.
4.5.2.1 Interviewees
The interviewees were selected based upon their membership to the IMC Executive.
The interviewees included the Chapter Presidents from New South Wales,
Queensland, Victoria, Tasmania, South Australia and the Manager of IMC’s National
Secretariat. Unfortunately, the Western Australian Chapter President was unable to
be interviewed due time and distance constraints.
Martin White is the New South Wales Chapter President. He is a Certified
Management Consultant with more than 17 years consulting experience. Martin's
assignments have been in a wide range of Australian and US companies and a variety
of environments from large multi-nationals to small and medium sized enterprises.
Martin holds a Masters degree in Management. He is a Certified Management
Consultant (CMC), Certified in Production and Inventory Management, Qualified
Engineer; accredited mentor, Fellow and a past president of the Institute of
Management Consultants (NSW), and a Fellow of the Australian Institute of
Management. (IMC)
64
Colin Paroz is the Queensland Chapter President. He is a Certified Management
Consultant (CMC) and a Fellow of the Institute of Management Consultants and has
been a Management Consultant in private practice for more than 14 years. His
consulting experience includes participation in the AusIndustry Business Networks
Program as an accredited Network Broker and training support provider. He has also
spent two and a half years as the Lead Consultant to the Supply Chain Partnerships
Program. Colin has also provided support to the Federal Government Department of
Industry, Tourism and Resources for the delivery of the Value Chain Management
Program. (Meridian Consulting Partners)
Rowan McClean is the Victorian Chapter President. He has an accounting
qualification and an MBA from the University of Western Ontario (Canada). His
experience over the last 30 years has involved him living and working in Australia,
Papua New Guinea, Canada, Indonesia and Japan. In addition to strategic consulting
for PA, Arthur Young and Needham Consulting Group (where he was Managing
Director), Rowan had periods managing an electronics manufacturer and as a Trade
Commissioner in Asia. Rowan's current work involves mainly organisation
effectiveness reviews, strategic planning, corporate governance, and international
business development. (IMC)
Barry Blumstein is the Tasmanian Chapter President. He is a Certified Management
Consultant (CMC) with over 21 years experience and is registered as a Certified
Quality Management Consultant with the Quality Society of Australasia. Barry
graduated from New York University School of Commerce with a BSc degree in
General Business. He also received an MBA in Transportation from Northwestern
University's Graduate School of Management located in Chicago, Illinois, USA.
Barry has experience with a variety of business types including transport; electricity
generation, transmission, and distribution; design engineering; asset management;
land rehabilitation; reprographics; product management / marketing; surveying and
geographic Information Systems. (M. Worsley - International Consultants; Total
Business Consultants Team)
Tim Millar is the South Australian Chapter President and Current National President
of IMC. His professional career spans more than a decade in senior management
with considerable hands-on experience in advising some of Adelaide’s top firms how
65
to maximise their business growth activities. Mr Millar consults to a number of
commercial and industrial enterprises. Several leading educational institutions have
engaged Mr Millar to lecture in strategic planning, financial accounting and
electronic commerce. He currently teaches at Clements School of Management and
at the Enterprise Workshop. (Intrinsic Corporation, 2001)
4.5.2.2 The Interviewer
Dr Robert Smyth (Associate Supervisor) was selected as the interviewer based on his
past experience. The selection of the interviewer was considered by the project team
to be of great importance since the interviewer can influence the quality of the data
gathered (Stewart & Cash, 1988). Smyth has had training and prior experience
interviewing, making him a team member well suited to the responsibility of
interviewing the IMC executive.
A number of skills are important when conducting interviews. The interviewer must
be able to present questions in a clear and unambiguous manner, and put the
interviewee at ease to facilitate honest and candid responses (Smyth, 2001). Smyth
(2001) comments:
To capitalise on the potential of the interview to provide richness of
data, the interviewer must be alert to the possible richness and
significance of remarks diverging from the initial focus of the
interview. Body language and tone of voice may also be cues to the
skilled interviewer to probe further or to take a different angle. This
also implies that the interviewer has a sound global view of the topic
and sufficient composure to be prepared to assess the benefit of
deviating, at least temporarily, from the prepared direction of the
interview.
Consistency has been assured by the use of an Interview Protocol developed by
Smyth and the fact that Smyth has been the only team member interviewing the IMC
Executive.
66
4.5.2.3 The Interview Locations and Timings
It was considered ideal to conduct the interviews in the interviewee’s workplace or
office, as it is an environment that the interviewee feels comfortable with, where he
or she is more likely to disclose information that is honest and candid than if the
interview were to take place in an unfamiliar environment. In selecting the location
it is also important for the interviewer to seek a location within the interviewee’s
workplace, that will allow an uninterrupted and distraction free interview to be
conducted (Smyth, 2001).
It was difficult to achieve this result due to the geographical location and schedule of
the interviewees. Seven interviews were conducted: three in the interviewees’ work
places and the other four via telephone. The timings of the interviews were
determined by the availability of the interviewee. The average interview time was
between 40 minutes to an hour during which the desired quality and quantity of data
could be obtained.
The research team’s ability to be flexible in the location and timing of interviews
assisted in gaining the support of the interviewees towards the research study.
4.5.2.4 The Recording of the Interview
The research team discussed the advantages and disadvantages of recording each
interview, knowing that the tendency of interviewees is to be more guarded with
their responses when being recorded (Stone, 1978). The research team decided that a
combination of interview recording and note-taking would be the most desirable
method of documenting the interviews. The interview notes proved to be very
effective, but the quality of the recordings was poor for most interviews. The lack of
adequate recording equipment in addition to the inability to meet face-to-face with
all the interviewees meant that little reliance was placed on recording compared with
the interview notes.
4.5.3 The Case Study Protocol
The Case Study Protocol provides a guide to the rules and processes that will be
followed during the course of the case study (Smyth, 2001). The full protocol is
67
provided as Appendix A to this report. The structure of the protocol is provided in
table 4.3 below.
Table 4.3 - Structure of the Case Study Protocol (attached as Appendix A) Structure of the Case Study Protocol
1 Theory to be Tested
2 Demographic Considerations
3 Justification of Postulated Theory on Management Consulting Issues
4 Validity Provisions
5 Reliability Provisions
6 Methods of Data Collection
7 People to be Interviewed and Other Sources of Data
8 Questions
4.6 Data from the Study
Based on the seven interviews, as confirmed by each of the interviewees, a list of
issues was assembled. In most instances, the issues were nominated by the
interviewees. With other issues, interviewees had raised points of clarification or
expansion that were felt by the interviewer to be possible additional issues and were
acknowledged as such by the interviewees. The researchers conferred to rationalise
issues where interviewees had nominated issues that could be construed as the
different wording of a common issue. Table 4.4 shows the rationalised list of issues
resulting from the interviews, the interviewees to whom they are attributable, and the
number of times each was cited. Table 4.4 - Issues that Emerged from the Case Study Data
Issue Category / DescriptionSec VIC QLD NSW ACT TAS SA # T10
X X X X X 5 YX X X X X 5 YX X X X 4 Y
X X 2X X 2
X 1X 1
X X X X X 5 YX X X 3 Y
X X X 3 YX X 2
X X 2X 1
X 1
X X X X X X 6 YX X X X X X 6 Y
X X X 3 YX X X 3 Y
X X 2X 1
X 19 8 11 8 6 5 12 59
Citations
Changing Client EnvironmentOpportunities for Small Niche consultanciesGovernment intervention in businessEconomic Conditions – a decline in MC WorkRisks from management fadsLittle Lasting Impact on MCs of E-Business BoomNeed for MC firms to globalise their businessesCompetition from A/C & Legal Firms and academicsChanging Consultant EnvironmentNeed for the consultant to retrain in new skillsNeed for a More Rounded Consulting ProfessionalTrends to loose aliances of MCsTendency for MC home officesDemand for Process Experts across Industry SectorsChanges in the Work Ethic amongst EmployeesNeed for MC to Have Strong Marketing SkillsClient-Consultant RelationshipImportance of the Client-Consultant Relationship
MC’s Qualifications Less Important than reputationsInefficiency and Harm of Tendering ProcessNotes: MC=management consultant T10=top10 Sec=Secretariate
Change in Client Expectations of ConsultantsEmphasis on Transfer of Skills and Knowledge Damage to MC reputation from low-fee consultantsVirtual Organisation
68
Changing Client Environment
Changing Client-Consultant
Relationship
Changing Consultant
Environment
Figure 4.1 - Three Major Issues Categories
4.7 Data Analysis
In the first instance, an attempt was made to group the individual issues into
meaningful and useful categories. In situations where there is relevant existing
theory, a top-down approach can be used to categorise the issues (Chang and Gable
2000). However, in this instance,
there was no theory framework to
guide a top-down approach; thus a
bottom-up approach was used. The
researchers reached consensus on
three Major Issues Categories to
encompass the twenty-one
individual issues identified. The
results of this process of
categorising the issues are shown
in Table 4.4 and again in Figure 4.1 it can be seen that issues have been grouped into
three categories: Issues relating to The Changing Client Environment; Issues to do
with the Client-Consultant Relationship; and Issues peculiar to The Changing
Consultant Environment. These three categories appear to reflect well the powerful
forces of change that have impacted on Management Consultant and their clients
over the past two years.
4.7.1 The Changing Client Environment
Interviewees identified changes in client perceptions of the large corporate
consulting firms as the basis of new opportunities for small, niche consultancies;
where clients may previously have relied more heavily on the services of the large
international consultancies, corporate scandals had made small, specialist local
consultancies more appealing. Similarly, Government intervention into business,
particularly in relation to business governance, is seen as an issue for Australian
consultants in that it demands of all businesses a higher level of accountability and a
consequent reworking of policies and processes relating to governance; a
consequence is an increased demand for suitably skilled Management Consultants to
advise on and support these changes. Yet, for many consultants, an issue arising from
69
the economic slow-down over the past two years has been an overall decline in
available Management Consulting work.
Consultants are wary of the impact on their clients of what the consultants depict as
changing fads in management; one Chapter President points out that every year there
seems to be some new focus in management, whether it is Quality or Corporate
Planning or Performance Indicators, and so the demand for consultancy skills
fluctuates, whereas these concepts “all really need to be integrated into the
organisation” holistically. While perceived management fads are an issue for
consultants, the e-commerce boom is similarly seen to have initially generated a
large demand for new consultancy skills, yet is viewed as having reached a stage
where there is no longer a large demand for these as specialist skills; instead,
interviewees depict e-commerce as now just “part and parcel of doing business”, so
some knowledge of it is a routine requirement for all Management Consultants.
One interviewee identifies as a current issue the adverse impact of what he referred
to as “part-time Management Consultants”. In particular, he singles out Accounting
and Legal firms who use proprietary methodology packages to be able to address
specific Management Consulting tasks, such as Business Process Re-engineering, as
an adjunct to their mainstream services. Similarly, he comments on the adverse
impact on Management Consultants of academics carrying out consulting activities.
His complaint is that these competitors enjoy higher status with prospective clients,
because of their university connection, and have lower overheads than full-time
consultants.
4.7.2 The Changing Consultant Environment
The interviewees identify a large range of issues that can be seen to pertain to
changes to the consulting environment that are in keeping with recent worldwide
trends. The need for consultants to retrain in new skills is an issue seen as a response
to changed client expectations, changes in business priorities, and increased
competition among Management Consultants. As a corollary to this issue, some
interviewees identify as an issue a need for Management Consultants to become
“more rounded” in the sense of developing a range of consulting skills rather than
relying too heavily on a limited range of specialist skills. As the Victorian Chapter
70
president observes, “the modern consultant needs to have some strong specialist
skills supported by a broad range of business skills, like an inverted T”. The same
interviewee believes also that, in current times, Management Consultants in Australia
need to globalise to extend their opportunities. As a mechanism for consultants to
offer the large range of skills felt necessary in the current business environments,
several interviewees point to the importance of smaller consultancies forming loose
alliances with each other. These loose alliances allow small consulting firms to offer
complementary services to prospective clients requiring a larger skill set than
possessed by an individual consultancy. Allied to this issue is one raised by the
Queensland President, that every consultancy needs access to strong marketing skills.
He argues that, particularly in the current consulting environment, there are dangers
for consultancies that become absorbed in providing their skills to existing clients
without ongoing attention to marketing these skills to new clients.
While a number of interviewees point to risks in Management Consultants over-
specialising, the South Australian president suggests that Management Consultants
need to be alert to a trend for “process specialisation” in Australia in place of
industry specialisation. The issue, he says, is that a consultant with good skills in,
say, inventory management is better placed to offer these skills across industry
sectors rather than concentrating on a single industry sector; he argues that clients
now perceive that engaging the same consultant across competitors in a sector
encourages an inward-looking approach within that sector.
The tendency for many Australian management consultancies to operate from home
offices is identified as an issue. The interviewees who raise this as an issue suggest
that neither clients nor consultants are self-conscious about home offices in a way
that was common ten years earlier. The disadvantages of home offices were felt to be
offset by a number of factors: the improved, and often portable, office and
communication facilities now available for small consultancies, the savings in office
overheads in not needing expensive premises, and the increasing amount of
consulting business being conducted away from the office, across Australia and
overseas.
An unanticipated issue for Management Consultants identified by one interviewee is
a perceived change in the work ethic amongst Australian workers. The argument is
71
that the current business environment, with high turnover rates among employees, is
not conducive to employees feeling strong personal commitment to their employers.
A consequence for Management Consultants is that they need to take account of
these changed worker attitudes in helping clients with their business plans and
processes.
4.7.3 The Changing Client-Consultant Relationship
The issues relating to the Client-Consultant Relationship, though sometimes
longstanding, are cited by respondents as having new potency because of the major
recent corporate scandals in Australia and America. More than ever before,
consultants are aware of the need to establish and maintain personal trusting
relationships between themselves and significant individuals in client firms.
Consistent with this, the Queensland President of IMC suggests that “a consultant’s
reputation is now more important than their academic qualifications”. An emphasis
on the effective transfer of skills and knowledge, from the consultant to the
management and staff of the client organisation is seen as a vital part of the
relationship (Morrison 2002). In pointing to the importance of this issue, one
respondent comments, “the ‘Investigate and Report’ model of Management
Consulting has been replaced by a model that emphasises skills and Knowledge
Transfer”.
In this environment where reputation is so important, respondents identify as an issue
the potential damage to the overall reputation of Management Consultants caused by
the operations of some members of the profession who charge substantially lower
fees. The perception expressed is that within this low-fee group of consultants are
some who “claim to be able to do anything” yet who deliver sub-professional
services.
The South Australian Chapter President identifies as an important current issue the
requirement by some clients that Management Consultants respond by tender to win
the right to deliver consulting services. He argues that the process of tendering is
damaging to client-consultant relationships because of the perceived unreasonable
demands on the consultants; apart from the large demands on time in preparing
tender responses, consultants believe that they are unreasonably required to divulge
72
valuable intellectual property, in relation to techniques that they propose for projects
that may ultimately be awarded to competitors or be undertaken in-house.
4.7.4 Matching Issues from Data Gathering against the Issues from the
Literature
The purpose of the study is exploration. Since Management Consulting issues have
seen little research, there is a dearth of immediately relevant theory to apply in
analysing the data gathered. While looking to the specifics of the data observed, it
was also planned to evaluate the observed data relative to the existing literature on
the topic. The criteria used to analyse the data in this way relate to: Consistency of
the data gathered with the relevant literature; identification of issues present in the
data but not present within the literature; and the identification of issues present in
the literature but not present within the data.
4.8 Findings from the Context Case Study
4.8.1 Issues Consistent with the Literature
Although the history of Management Consulting in Australia has many differences
from that of other western countries, and although the demographics of the IMC
membership appear quite different from those of (overseas) Management Consulting
Firms commonly referred to in the Management Consulting literature, the majority of
issues gathered from the study data are consistent with those in contemporary
Management Consulting literature. However, with others, although the issues are
outwardly common, the data demands a reappraisal of the issue as treated in the
literature. For instance, the importance of Knowledge Management as an issue for
Management Consultants is well recognised in the literature and emerges from the
Context Case Study as an issue for IMC members as well; yet the emphasis on
Knowledge Management for IMC members appears different from that in the
literature. While the data gathered suggests IMC members are attuned to the
importance of transferring to client organisations the necessary knowledge for the
client to function more effectively and independently, the data does not reveal an
emphasis on procedures within the Management Consulting Firms to conserve and
share professional knowledge. By contrast, the literature points to Knowledge
Management in the Management Consulting Firm as an issue of prime concern
73
(Semadeni 2001), often incorporating the use of software like Lotus Notes and MS
Exchange (Pereira 2001). Preliminary analysis suggests that the different emphasis is
likely a result of the small-firm emphasis in IMC membership compared with a
large-firm emphasis in the literature.
Again, while the literature refers to a useful role for collaboration among service
providers (Kanter 1996), the issue of establishing loose alliances among
Management Consulting Firms, as revealed in the data, here connotes a very specific
response to changing circumstances. It would appear that these alliances have taken
on greater importance in the wake of the Enron collapse and subsequent restructuring
of the multinational Management Consulting groups. Not only do the alliances allow
the cooperating firms to share knowledge bases in tackling new projects, they permit
small consultancies to capitalise on low overheads and a new preference for clients to
deal with known individuals rather than “anonymous employees”.
The importance of Client-Consultant Relationships as an issue also takes on a
different emphasis in the data from this study. In this study, the importance of
establishing a personal relationship between the principal of the consultancy and the
client is identified as vital for competitive advantage of small consulting firms. In the
literature (Fincham 1999), the emphasis is much more on relationships at a corporate
level, again reflective of the emphasis in the literature on larger consultancy firms.
The Virtual Organisation as an issue takes on a different connotation for small
management consultancy firms, such as those represented in the IMC membership,
compared with its meaning for large consultancies. As represented in the data, the
concept of the virtual organisation represents both an opportunity and a threat. The
Internet allows consultants to dispense advice and provide expertise online,
commonly referred to as ‘virtual consulting’ (Pereira 2001). This provides small
consultancies with the possibility of keeping overheads low in dealing with small,
uncomplicated consulting engagements. On the other hand, ‘virtual consulting’
facilitates the provision of services from countries that can provide expertise at a
much lower rate, potentially undercutting Australian Management Consulting Firms.
Large firms can be seen to be using virtual consulting approaches to complement
their other services, at lower cost. Ernst and Young, for instance, provide an online
advisory service for their clients, which includes such services as news, alerts and
74
analysis, a reference library, online diagnostic tools, a secure web space for online
collaboration and links to other web resources (Ernst and Young Online 2002).
4.8.2 Issues Emerging from the Data but not in the Literature
An issue to emerge from the data that does not appear to have been given
prominence in the literature is the level of competition faced by professional
Management Consultants from a range of “part-time” Management Consultants.
Interviewees pointed to accountancy and legal firms acquiring process management
packages to enable them to offer some Management Consulting services as an
extension of their specialist services. Pringle (1998) does make reference to potential
negative impact of proprietary packaged tools although the implications for
competition from part-time users of packaged approaches are not examined. The
South Australian President was also concerned at competition from university
academics who, he felt, had the advantage of higher status and lower overheads.
Although a literary source was found (Ormerod 1996) that discusses the benefits of
academics providing Management Consulting services to the public, it does not
explore any negative impacts on Management Consulting professionals.
The negative impact of low-fee practitioners is identified in the data as an issue
affecting members of IMC. Interviewees comment that these low-fee practitioners
harm the reputation of small to medium sized consultancies. As much of the
literature places emphasis on large consulting firms, it is not surprising that this
issue, considered important by members of IMC, has received no attention in the
literature.
Another issue from the data, the detrimental impact that the tendering process has on
practising Management Consultants, is not prominent in the Management Consulting
literature. The prime concern related to potential loss of intellectual property in
being obliged to divulge in tender responses, methodologies, approaches and
solutions for the project. The main negative aspects of this are in the probability that
a tender response will be unsuccessful yet the recipients will have obtained valuable
intellectual property.
Interviewees identify a shift in demand from industry expertise to process expertise
as an important issue. This is in conflict with a 1998 article on client selection
75
processes for choosing consultants in Australia and New Zealand (Page 1998). Page
asserts that, in fact, clients prefer industry specialists rather than process specialists.
Recognising that that Page’s article is almost five years old, it may be the case that
its conclusions are no longer an accurate reflection of the state of the Management
Consulting industry in Australia.
Identification of these issues that do not appear in the literature has consequences for
the Issues Delphi Study. It is important for the Issues Delphi Study to examine
whether these issues from the Context Case Study are widespread among
Management Consultants.
4.8.3 Issues Prominent in the Literature but not Present in the Data
Recent corporate collapses and the perceived conflict of interest within large
accounting firms has emerged as an important issue in both the data and the literature
on Management Consulting. However, the data from the Context Case Study does
not show possible conflict of interest within Information Technology firms now with
management consultancy arms as an issue for Australian Management Consultants.
The literature, however, points to the issue that consultants might be predisposed to
recommend products or services from their parent Information Technology company
in the solution they provide to clients (James 2002). It is possible that the IMC
Executive did not perceive this issue as important because the majority of their
members belong to small firms. However, it will be of interest to see whether the
broad membership of IMC have a different view on this.
4.9 Chapter Summary
The Context Case Study has provided preliminary insight into some major issues
impacting Management Consultants practising in Australia. In comparing data
gathered from the executive members of IMC with contemporary Management
Consulting literature, the researcher has discovered a dearth of literature specific to
Management Consulting in Australia and in particular to small-medium sized
consulting firms. Data from this Context Case Study reveals issues not detected in
the Management Consulting literature. Important issues affecting the small-medium
sector of the Australian Management Consulting industry such as the drain on time
and resources of the tendering process, in addition to the potential loss of intellectual
76
property resulting from the tendering process, have failed to appear as issues in the
prominent literature. Furthermore, the impact that part-time and unqualified
Management Consultants have on smaller practising full-time consultants has not
been identified as an issue in the prominent literature.
This suggested a need for the issues affecting this sector of the Australian
Management Consulting industry to be further explored.
The next chapter takes a look into the Accenture Case Study outlining the research
approach of the Accenture Case Study, as well as its analysis and findings. The
Accenture Case Study offers a contrast and complementary perspective to the
Context Case Study into Management Consulting issues. The Context Case Study
provides insight to a broad spectrum of issues facing the Australian Management
Consulting industry with emphasis on small-medium sized consulting firms. By
contrast the Accenture Case Study considers an in depth examination of the
Knowledge Management Practices and Strategies of one of the leading International
Professional Service Firms, Accenture.
77
5 Accenture Case Study
This case study offers a contrast and complementary perspective to the Context Case
Study and the Issues Delphi Study into Management Consulting issues. The Context
Case Study and the Issues Delphi Study provide insight to a broad spectrum of issues
facing the Australian Management Consulting industry with emphasis on small-
medium sized Management Consulting Firms. Given the emphasis the literature
places on Knowledge Management within the Management Consulting industry, the
researchers predicted that Knowledge Management issues would also be significant.
By contrast this case study considers an in depth examination of the Knowledge
Management Practices and Strategies of one of the leading International Professional
Service Firms, Accenture. This case study considers both the macro (strategic) and
the micro (transactional) perspective of Knowledge Management. The micro
perspective considers Knowledge Strategy from a transactional level more concerned
with the process of Knowledge Transfer, capture and re-use on consulting
engagements. The macro perspective is concerned with the strategic level with
emphasis on how best the firm may leverage Knowledge Assets to achieve a
sustainable competitive advantage.
This investigation attempts to answer the following investigative questions:
1. How is knowledge created, captured, accessed, shared and reused from one
engagement to the next?
2. Why Knowledge Management is considered important within client
consultant projects?
3. Why some knowledge is captured and how is the extent of what knowledge is
captured from engagements determined?
4. How is the effectiveness of Knowledge Management measured in Accenture?
The investigative questions listed above assist in answering the overall study
research questions in section 1.2 through a narrower focus on Knowledge
Management. The investigative questions for the Accenture Case Study will assist
the researcher to identify Knowledge Management related issues specific to large
78
Management Consulting Firms. Furthermore, the Accenture Case Study will allow
the researcher to draw distinctions between Knowledge Management issues and
approaches of small-medium sized Management Consulting Firms and large
Management Consulting Firms by comparing finding from this and the other sub-
studies.
5.1 Unit of Analysis and Study Sample
For the purpose of this study the Unit of Analysis is an International Professional
Service Firm. Accenture was selected as the case for this study for several reasons,
the first reason being easy access to evidence. Accenture is currently involved in a
long-term project with Queensland University of Technology and agreed to allow us
access to non-sensitive documentation and Accenture personnel for the purpose of
the study. Second, Accenture are considered one of the world’s leading Professional
Service Firms with a reputation for heavy investment in Knowledge Management.
5.1.1 Organisational Overview
Below is a statement about Accenture by Accenture.
“Accenture is a global Management Consulting, technology services
and outsourcing company. Committed to delivering innovation,
Accenture collaborates with its clients to help them become high-
performance businesses and governments. With deep industry and
business process expertise, broad global resources and a proven track
record, Accenture can mobilise the right people, skills and
technologies to help clients improve their performance.” (Accenture
Fact Sheet)
Accenture net revenue for 2004 fiscal year was approximately $13.67 Billion USD,
an increase of $1.85 Billion USD on 2003. In the Asia Pacific region Accenture
earned approximately $968 Million USD in 2004, which was a growth of 22% over
2003 fiscal year. As of 31st August 2004 Accenture consisted of 110 offices in 48
countries across three geographic regions of the: Americas, Asia Pacific, and
Europe/Middle East/Africa. In addition, Accenture employs over 100,000 staff,
approximately 2300 of which are Partners. (Accenture Fact Sheet: Nguyen, 2004)
79
Accenture was established in 1989, and was at that time known as Andersen
Consulting. Andersen Consulting (Accenture) was formally a division of the Arthur
Andersen Accounting Firm but was separated as part of a restructuring move to
establish two stand-alone business units providing separate but complementary
services under the umbrella of Andersen Worldwide. Arthur Andersen was to
continue as a tax and audit accounting firm, while Andersen Consulting (Accenture)
would provide management and technology consulting. Andersen Worldwide was
responsible for coordination between the two units to ensure they continued to
operate cooperatively and compatibly. After a protracted court battle, Andersen
Consulting finally severed its ties with Andersen Worldwide in August 2000 and
changed its name to Accenture in January 2001. Accenture became a publicly traded
corporation in July 2001. (Accenture's History and Status)
Table 5.1 – Operating Groups and Industry Groups of Accenture
Operating Groups and Industry Groups
Communications & High Tech
Financial Services
Products Resources Government
Industry Groups Industry Groups Industry Groups Industry Groups Industry Groups
Communications Electronics &
High Tech Media &
Entertainment
Banking Capital Markets Insurance
Automotive Health Services Industrial Equipment
Pharmaceuticals
& Medical Products Retail &
Consumer Transportation &Travel Services
Chemicals Energy Forest Products Metals &
Mining Utilities
Government
Extracted From (Accenture Fact Sheet)
Accenture's clients span the full range of industries around the world and include 84
of the Fortune Global 100 and two-thirds of the Fortune Global 500. In addition, 93
of Accenture’s top 100 clients in fiscal year 2004, ‘based on revenue’, have been
clients for at least five years, and 73 of which have been clients for at least 10 years.
(Accenture Fact Sheet)
80
“Accenture delivers its services and solutions through 18 focused
industry groups in five operating groups. This industry focus provides
Accenture’s professionals with a thorough understanding of industry
evolution, business issues and applicable technologies, enabling
Accenture to deliver solutions tailored to each client's industry.”
(Accenture Fact Sheet)
5.1.2 Study Sample Scope
For the purpose of this study the sample scope was limited to Knowledge
Management within the Asia-Pacific region and the Government Practice of
Accenture (Australia).
At present Accenture (Australia) is a registered subsidiary company of Accenture,
operating offices in Sydney, Melbourne, Brisbane and Canberra. It must be noted
that although the focus of this study is on Accenture Australia, Accenture operates as
a global entity with a matrix structure, meaning that staff often report to managers in
different countries and regions. (Hall, 2003)
“Accenture operates in a highly competitive, global business
environment. In addition to the other big global Professional Service
Firms, Accenture competes with the ‘boutique’ Professional Service
Firms such as McKinsey and Boston Consulting Group and, in the
area of IT outsourcing in particular, competes with companies like
IBM, CSC and EDS.” (Hall, 2003)
5.1.3 Knowledge Management at Accenture
It is obvious from Accenture’s own description of their organisation that they wish to
seen as innovative market leaders and adding value to client solutions (D. Cantor &
C Risen, 2002). Furthermore, Accenture sell their organisation as a Knowledge-
Intensive Firm with the following statement:
“With deep industry and business process expertise, broad global
resources and a proven track record, Accenture can mobilise the right
people, skills and technologies to help clients improve their
performance.”
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This statement alludes to the strength of Accenture’s Knowledge Base, by declaring
that that they have the expertise, resources and the experience (proven track record).
This statement alludes to the fact that Accenture has at its disposal a Knowledge
Repository of proven methods, templates, processes and knowledge from past
projects, in addition to the expertise of it people to provide their clients with
innovative solutions. Moreover, Accenture asserts that they can mobilise the right
people, skills and technologies, suggestive of a Knowledge Management strategy that
allow them to leverage their Knowledge Assets to address the client’s problem or
opportunity. Accenture’s own description of what their organisation does is a
testament to the importance of Knowledge Management at Accenture.
Accenture further demonstrates its commitment to Knowledge Management through
its Institute of High Performance Business. The Institute’s Mission is “to create
strategic insights into key management issues through original research and analysis
which help organizations achieve high performance… its management researchers
combine world-class reputations with Accenture’s extensive consulting, technology,
outsourcing and client experience to conduct innovative research and analysis into
what makes great companies and high-performance organisations.” The institute is
currently based at Cambridge Massachusetts (Accenture Institute for High
Performance). The Institute boasts an impressive record of achievements:
• More that 300 enterprises impacted by formal use of the Institute’s work.
• Among the Institute’s staff, 21 Ph.Ds, MBAs or other advanced degrees.
• Staff holding concurrent teaching appointments at universities such as
Massachusetts Institute of Technology, Fletcher School of Law and
Diplomacy at Tufts University and Babson College.
• Seven books and more than 50 leading business journal articles published
since 2001.
• More than 150,000 PDF document downloads from its website annually.
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5.2 Study Participants
This case study consisted of four members: an Honours Student, Tracey Nguyen as
primary researcher; myself acting as Student Associate Supervisor; Dr Bob Smyth as
Academic Staff Associate Supervisor and Professor Guy Gable as Primary
Supervisor.
My role was to assist Tracey by providing her literature in the area of study,
guidance throughout her Honours Degree, a sounding board for ideas and concepts
related to the study, decisions related to data collection and analysis, and assistance
and participation in the process of data collection.
5.3 Data Collection and Analysis
Several sources of evidence were used for the purpose of triangulation. The various
sources included current seminal literature, Accenture website, annual reports, and
internal documents provided by Accenture. However, the primary data collection
method was through a series of interviews with Accenture staff. For this purpose we
targeted a junior consultant acting as Knowledge Champion, a Project Manager, a
Program Manager, a Partner of the Government Practice in Brisbane, Australia, and a
Knowledge Manager in Manila, Philippines. All these individuals, from the junior
consultant to the Knowledge Manager in Manila, have a responsibility toward
Knowledge Management at Accenture.
Junior Consultant (1)
(Knowledge Champion)
Junior Consultant (n)
Junior Consultant (2)
Project Manager (Manager/Senior
Consultant)
Program Manager
Partner (Govt Practice)
Knowledge Manager (Govt Industry Group)
Figure 5.1 - Knowledge Management Responsibility Hierarchy
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The hierarchy depicted in Figure 5.1 above is not necessarily the organisation’s
chain-of-command in terms of management of the firm. However it does represent a
chain-of-responsibility for Knowledge Management related tasks. A full description
of this chain-of-responsibility is discussed throughout the chapter.
A review of the prominent literature on Knowledge Management assisted in
developing the study context and providing initial insights into the possible
Knowledge Management Strategies and Practices that Accenture would employ.
This understanding of the context also served to assist in the developing a sound case
study protocol (Appendix D) to guide the interviewer.
5.3.1 The Interview Process
Three separate interviews were conducted: the first with the Knowledge Champion
(Junior Consultant), Project Manager and Program Manager at a TAFE College in
Brisbane’s Northern Suburbs. The second was conducted at Accenture’s office with
one of the Partner’s of the Government Practice of the Brisbane Office. The final
interview was conducted in a meeting room at Queensland University of
Technology’s Centre for Information Technology Innovation. All interviews were
conducted in person with the exception of the final interview. The final interview
was conducted by teleconference because the Knowledge Manager responsible for
the Government Industry Practice in the Asia Pacific region was based in Manila,
Philippines. All members of the project team were present at all three interviews
with the exception of the Principal Supervisor, Prof Guy Gable who was present at
the final interview only.
Nguyen (2004) quotes Rowley (2002) as commenting that a “researcher should
actively ask questions, listen and interpret responses from interviewees without
bias.” Smyth’s knowledge and experience of interview technique was invaluable in
this respect. In his role of Associate Supervisor he was able to guide both Nguyen
and myself in effective interview etiquette and technique. It is acknowledged that
the ability to ask effective questions requires time and experience in order to develop
this skill to high standard. It is generally considered good practice for junior
researchers to carefully plan and consider which questions they wish to ask in
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advance to improve the effectiveness of the interview process (Maykut &
Morehouse, 1994).
Furthermore, a case study protocol (Appendix D) was developed to assist the
researchers with the data collection process. The case study protocol provided a
guide for questions during interviews and assisted in the reliability of data collection
during the interview process by ensuring consistency across multiple interviews. Yin
(2003) stresses the necessity of case study protocol for data collection purposes. The
case study protocol may also act as an interview guide. This is a useful tool of
experienced researchers but is considered a necessity for junior researchers. An
interview guide allows the researcher to classify their interview questions and
thereby provides the researcher with a logical structure to follow but at the same time
allows the flexibility to follow an unexpected but potentially fruitful line of inquiry
which is often desirable during qualitative investigations (Kvale, 1996; Maykut &
Morehouse, 1994; Patton, 1990). More importantly, an interview guide allows the
researcher to make sure all questions have been answered or at the very least obtain
answers for questions that are of the highest priority (Maykut & Morehouse, 1994;
Patton, 1990).
Due to the exploratory nature of the study many of the questions were open-ended, in
accordance with Yin’s (2003) suggested approach. “Closed questions make it
difficult to draw out insights from interviewees and posing unclear questions may be
caused by unclear objectives of research study. Questions should have a single focus
not multiple questions combined into one. This makes it easier for the interviewee to
remember all points of the question to answer” (Nguyen, 2004 quoting: Maykut &
Morehouse, 1994)
To improve the validity of the data gathered, transcriptions and interview summaries
were passed to the interviewees for verification (Appendix E). “Failure to reproduce
an accurate transcript as a result of these errors by the transcriber can lead to altered
interpretations from the intended meaning of the interviewee” (Nguyen, 2004
quoting: Holstien & Gubrium, 2003; Patton, 1990)
One of the more common approaches to data analysis is the division of data into
smaller components to facilitate the identification of themes and pattern recognition.
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For the purpose of this study Nguyen (2004) took the approach of developing a
descriptive framework (table 5.2) as there were no theoretical propositions to rely
upon. The analysis also relied upon existing Knowledge Management models
identified in the prominent literature to determine if Accenture’s Knowledge
Management Strategies and Practices were consistent with the models identified.
This descriptive framework reflected themes drawn from the literature directing the
data collection effort. Data collected was then compared with the descriptive
framework during the analysis phase to produce the case study findings.
5.4 Findings
Table 5.2 - Themes from Accenture Case Study Data THEMES ISSUES
Culture is ingrained into organization
Technology enables Knowledge Management
Importance of experience and judgement in knowledge capture
Incentives to motivate knowledge sharing
Knowledge was ingrained into Accenture
Support networks (communities of practices, expert forums)
Innovation of Knowledge
Not from first principles
Success factors of Knowledge Management
Stewardship to knowledge contribution – core value
Capture of Knowledge from projects into documents for repository
Creation and innovation of knowledge from reuse of knowledge
Identifying Knowledge Gaps
Appropriate reuse of knowledge
Knowledge Management Activities
Reviewing shelf-life of Knowledge
Time was a challenge
Culture was a challenge
Definitive measurement for knowledge
Correct knowledge reuse
Volume of data in repository too large
Challenges
Costs of knowledge translation
Client demand drives Knowledge Transfer Internal Focus
Consider internal knowledge needs Extracted From (Nguyen, 2004)
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5.4.1 Influencing Factors of Knowledge
From the data collected five influencing factors of Knowledge Management at
Accenture could be identified: (1) Nature of Knowledge; (2) Technology; (3)
Culture; (4) Incentive; and (5) Support Networks.
The Nature of Knowledge refers to the nature of knowledge within the organisation.
Since Accenture is a Knowledge-Intensive Firm, knowledge is the organisation’s
stock-in-trade and is therefore integrated into almost every aspect of the organisation.
This situation makes it difficult to truly quantitatively measure the impact of any
Knowledge Management initiatives.
Accenture do not consider Knowledge Management to be a revenue raiser for their
organisation but supports the services that do. However, this fact does not diminish
the value of knowledge to Accenture. In fact, they consider knowledge to be a
strategic asset. Accenture believes that its ability to generate innovative new
knowledge by effectively capturing, sharing and reusing knowledge within its
organisation acts as a differentiator between it and its competitors. The tangible
benefits of Knowledge Management come from savings in cost and time and the
ability to reuse knowledge from past engagements on future projects.
However, Accenture would be unable to realise the benefits of Knowledge
Management if it were not for a robust technological infrastructure to support it.
Accenture have invested heavily in technology that will allow employees to exploit
tacit and codified knowledge reserves.
Employees have access to myriad technological tools and services to assist them in
their role as consultants. The primary purpose of these tools and services is to
facilitate knowledge capture and sharing. The key aspect that makes Accenture’s
technological infrastructure so powerful is that Accenture operates as a global
organisation. This characteristic means that Accenture is able to marshal knowledge
from all over the world beyond geographical barriers. Accenture’s technological
infrastructure includes: email, instant messaging services, a firm-wide intranet,
discussion forums and online special interest groups, online ordering of documents
and articles, a helpdesk facility for Knowledge Management support and a
knowledge repository containing documents from past engagements (Nguyen,
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2004). Accenture’s knowledge repositories are maintained by Knowledge
Management professionals who index contributed material to increase the possibility
of maximum exposure to Accenture staff that require it (Nguyen, 2004).
Technology is integral to the effective Knowledge Management of Accenture;
however, Accenture does not consider technology the principal driver of an effective
Knowledge Management Strategy, Accenture considers organisational culture to be
the greatest influencing factor toward an effective Knowledge Management Strategy.
Accenture staff tend to believe that the good of the firm comes first but they do not
contribute to the knowledge repository or share knowledge for completely altruistic
reasons. Accenture staff share knowledge based upon a belief that sometime in the
future the favour will be returned, that when they require knowledge to complete an
important task someone will be willing to share what they know.
Accenture does not rely upon culture alone to encourage knowledge capture, sharing
and re-use amongst its staff but offers incentives to make sure this occurs. An
employee’s participation in Knowledge Management is evaluated as part of
Accenture’s formal performance review process. These reviews assess the
employee’s involvement with Communities of Practices, how effectively they have
contributed to the knowledge repository and the re-use of knowledge contained
within the repository. Communities of Practice are organisation wide; Accenture
employees from across the globe can be involved in the same Community of
Practice. Employees are required to be a member of a minimum number of
Communities of Practice in their area of specialisation or expertise. Contribution to
the firm’s knowledge repository is also factored into each employees timetable and is
formally recorded on each individuals timesheet, this is another measure used to
evaluate an employees contribution during the performance review process.
The final influencing factor attributed to enhancing Knowledge Management at
Accenture is the support networks that the firm has instituted including the
aforementioned Communities of Practice, discussion forums and expert networks.
These support networks ensures the flow of knowledge throughout the firm by
facilitating frequent contact between all of Accenture’s employees. The
Communities of Practice hold conferences and possess a bulletin board for members
to post knowledge items or questions. Each time a post is made, members are
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emailed the details so that they can respond to the post on-line or email direct to the
member that made the original post.
The expert network is known as the Knowledge Exchange. The Knowledge
Exchange provides expert information to all Accenture staff with varying degrees of
access. Accenture employees are able to retrieve the information they require from
both an internal knowledge repository and external sources through a sophisticated
search engine. The Knowledge Exchange also provides contact details for the expert
that deposited the knowledge in the repository so the Accenture employee can gather
more detail if required. In addition, the Knowledge Exchange provides a discussion
forum to allow informal exchange of knowledge and ideas between employees
regardless of geographic location.
These support networks are vital to the effective Knowledge Management of
Accenture because it facilitates the sharing of tacit knowledge, which is difficult to
capture and codify in knowledge repositories. The support network acts as a safety
net that captures the knowledge that is not captured by the formal Knowledge
Management practices.
These five influencing factors play a vital role in effective Knowledge Management
at Accenture.
5.4.2 Knowledge Management Tactics
Accenture has instituted several Knowledge Management tactics to ensure the
success of adoption and acceptance of Knowledge Management with Accenture staff.
The first tactic that Accenture has implemented is that of Best Practice. These
practices include procedures for building on past employee experiences, developed
methodologies, classifications for knowledge for intellectual property, and security
obligations.
Accenture considers the reuse of knowledge from past engagements as playing a
vital role in the success of future projects. We as humans have a tendency to re-
invent the wheel. To negate this Accenture places a great deal of emphasis on taking
advantage of the past efforts so that Accenture staff can focus on the creation of new
ideas and innovation. With this in mind Accenture relies upon the experience of its
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senior consultants and project managers to determine which knowledge represents
value to future projects and therefore captured and reused.
Accenture’s internal portal provides access to the firm’s Methodology Finder,
facilitating access to newest topics being discussed, the most frequently visited
sections, and templates for projects of all types and sizes. Although all projects are
often unique and require a certain degree of customisation, these resources reduce the
time it takes for consultants to produce basic documentation allowing the consultants
to focus on the solution to the client’s problem.
Communities of Practice do more than just capture tacit knowledge that escapes the
formal Knowledge Management process; it also serves to refine methodologies from
feedback received on consulting engagements. However, all documents and
refinements are subject to Accenture’s Quality Process Improvement program to
ensure that they meet the required quality guidelines. The Quality Process
Improvement program is implemented across Accenture. Knowledge Management
Centres work directly with the Quality Process Improvement section to ensure the
quality of certain documents meets Accenture’s requirements for deposit in the
firm’s Knowledge Repository.
Accenture consultants also place a confidentiality classification on each document to
dictate the appropriate access level. These classifications consist of the following,
unrestricted (everyone has access including clients), through to the highest
classification for posting (internal use only). Some documents are not posted due to
sensitivity of their content and can only be obtained by contacting a delegated
Accenture staff member. These classifications serve to protect the intellectual
property of Accenture and their clients.
The second tactic employed by Accenture is to elect a Knowledge Champion to each
project. The Knowledge Champion is responsible for generating an inventory of
deliverables and documents from the project to capture the relevant knowledge
required. In addition, it’s the Knowledge Champion’s responsibility to review all
project outputs and determine their capability for reuse as well as assigning an
appropriate classification and generating an abstract for each document to be
transferred to the repository. The abstract serves to inform the employee conducting
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a search for knowledge material as to the content of the document posted. The
Knowledge Champion in co-ordination with the Project Manager faces the difficult
task of determining the optimum time for transferring a document to the firm’s
Knowledge Repository. The problem the Knowledge Champion faces is if they
transfer the document prematurely the content contained within may be inaccurate or
worse incorrect. At the same time the knowledge captured needs to be transferred to
the Knowledge Repository when it’s deemed to be of most value. In this instance the
support networks discussed earlier again act as a safety net in this instance, allowing
for knowledge in a valuable but still premature state to be transferred if necessary.
The Knowledge Champion is assisted in their role by a specialist Knowledge
Manager based in one of Accenture’s regional Knowledge Management Centres. In
this case the Knowledge Manager for the Asia Pacific region in Manila. The
Knowledge Manager provides training and details of the kind of knowledge to
capture. The Knowledge Manager reviews the quality of the documents submitted
by the Knowledge Champion prior to transferring them to the knowledge repository
and posting the link to the document in the relevant area of the knowledge portal to
ensure the correct Accenture staff can locate it. Furthermore, each document is given
an expiration date for archiving by one of Accenture’s Knowledge Management
Centres. This helps to keep the document relevant and addresses the issue of
outdated knowledge in the repository. The document owner may override the
expiration date if the document is still relevant and accurate.
As described by Accenture, the Knowledge Managers has three principal duties (1)
Management of the Knowledge Repositories, (2) Identifying areas that present
potential value from knowledge capture and discovery, and (3) Providing guidance to
myriad Knowledge Champions within their regions. The Knowledge Manager’s
interviewed were members of the Global Knowledge Network (GKN), based in the
Knowledge Management Centre in Manila. GKN also has Knowledge Management
Centres in Canada, the United States, the United Kingdom and Europe. One of the
distinct Knowledge Manager roles is that of an Area Coordinator who is responsible
for the Knowledge Management of particular region such as Asia Pacific, Europe or
the Americas. Area Coordinators address urgent requests from Accenture staff for
knowledge. Furthermore, Area Coordinators monitor requests for knowledge from
the GKN Helpdesk and the redirects the request to the appropriate researcher to
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provide a response. In addition, the Area Coordinator assists GKN’s three teams to
share and contribute knowledge to the repository via the Client Team Services
program.
GKN’s helpdesk facility researches any requests that have been made by opportunity
or project teams requiring information that they have been unable to locate in
Accenture’s Knowledge Repository. GKN provide research from internal Accenture
sources only.
In addition to the GKN helpdesk Accenture possesses a separate external shared
services group named Accenture Research. All of Accenture’s operating units are
able to access Accenture Research services which include: research conducted by
competitors, third party analysis of current topics and potentially relevant media
reports. There are two key distinctions between the GKN Helpdesk and Accenture
Research: (1) Accenture Research has access to external sources, and (2) Accenture
Research services are billed to the client whilst GKN services are costed back to the
operating unit.
GKN consists of three teams: (1) Client Development and Packaging (CDP), (2)
Client Group Support (CGS), and Project Management and Support (PMS). CDP is
responsible for Accenture’s knowledge capital plan which identifies the knowledge
areas required to support the industry group for which they belong. CDP works in
collaboration with industry executives and subject matter experts to identify ‘hot
areas’ from which Accenture may derive competitive advantage. They also
determine whether this knowledge can be gained internally or needs to be gathered
from external sources. In addition, the CDP audits the Knowledge Repositories to
identify “knowledge gaps”. Knowledge gaps occur when there is a great demand for
particular areas of knowledge that are not present in the Knowledge Repositories, or
the GKN helpdesk cannot answer knowledge requests. CGS operates at an
opportunity and project level and is responsible for providing Knowledge
Management support to project teams. Opportunity refers to projects not yet won;
project refers to an active project. Opportunity services include assistance with
research and packaging during the proposal drafting phase to improve Accenture’s
success rate at winning tenders. Furthermore, CGS uses the knowledge capital plan
to identify target areas for knowledge to be captured in order to address knowledge
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gaps. PMS, the smallest of the three teams, is responsible for proving information to
program managers about Knowledge Management. This information may take the
form of metrics, tracking reports, performance data, troubleshooting information, and
technical faults with the Knowledge Repository.
5.4.3 Challenges of Knowledge Management
Analysis of the data gathered identifies several challenges for the effective
management of knowledge at Accenture: time, measurement and knowledge reuse.
As with many organisations, time is an issue. The Information Age has brought with
it the need to do a lot more in a lot less time. However, the issue of time availability
represents a considerable challenge for Knowledge Management at Accenture. It
was indicated earlier that a certain amount of time was allocated specifically toward
knowledge capture on projects. Nevertheless, as is often the case, we as human
beings underestimate the amount of time required to complete a given task.
Alternatively, unforeseen circumstances may arise requiring greater attention than
originally anticipated. In these situations, when a deadline is looming and perhaps
financial penalty for not adhering to the deadline, Knowledge Management activities
may be overlooked in order to complete critical project tasks. In this circumstance,
Accenture staff would reschedule Knowledge Management activities to a later date.
Accenture admitted that in some situations Knowledge Management activities would
be overlooked completely, although this not a common occurrence and instances of
this were rare.
The firm’s capability to measure the cost in time and resources is also a dilemma for
Accenture. For instance, as Accenture is a global organisation it faces the problem
of differing languages between countries. To make knowledge accessible to all who
might require it, documents must be translated into the native language of those that
require it. This is a costly exercise for Accenture and it is almost impossible to
measure the benefit versus the cost of such activities. Attempts to establish a
standardised system of metrics of knowledge across Accenture have been
unsuccessful. Knowledge by its very nature is difficult to measure, particularly when
attempting to measure tacit knowledge, which represents the most value, but is often
difficult to identify in the first instance and difficult to quantify in the second. The
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first attempt to establish metrics was abandoned after Accenture’s restructure in
2001. Each unit of Accenture is now responsible for generating its own metrics of
Knowledge Management activities.
Knowledge Management Centres have adopted a balanced scorecard approach to
measuring the impact of Knowledge Management. These balanced scorecards
provide data on content quality, taking into account the age of the documents and the
number of times content is accessed within the repository, as well as the number of
projects contributing knowledge. In addition, the balance scorecard measures the
staff’s level of satisfaction with using the repository and the level of knowledge
sharing activity on discussion forums and Accenture’s expert networks. In addition,
the Knowledge Management Centres attempt to estimate the number of hours saved
on projects from knowledge reuse and the number of tenders won, based on
knowledge captured from past projects of research conducted by the GKN helpdesk.
Accenture has adopted Knowledge Management as a cost saving strategy rather than
a revenue raising strategy as the value of revenue raising potential is too difficult to
measure. Admittedly, Accenture has invested substantially in Knowledge
Management, but has nonetheless taken considerable steps to reduce the cost of
Knowledge Management by placing their Knowledge Centres in low-cost labour
areas such as the Philippines.
Another critical issue that Accenture faces is that of knowledge reuse. Accenture has
discovered that new graduates have the greatest difficulty. Accenture’s knowledge
repositories contain vast amounts of knowledge. The inexperienced graduate finds it
difficult to identify the appropriate knowledge content required and often spends
many wasted hours wading through the almost limitless amount of knowledge stored
within Accenture’s Knowledge Repository. Accenture attributed this difficulty to
three factors: (1) laziness, (2) inexperience, or (3) lack of time. Furthermore, once
identifying the appropriate knowledge, graduates also found it difficult to apply this
knowledge in varying situations.
One of the other difficulties associated with knowledge reuse is the language barrier
between Accenture staff in other countries. Accenture faces the loss of context when
translating content into foreign languages, as is the case when translating from
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English to another language as English possesses several times the number of words
of most other European languages. However, Accenture expressed the view that
knowledge captured on projects is generally not too context specific that the
underlying value would be lost in translation.
Accenture possesses very much an internal focus toward Knowledge Management.
The driving force behind Accenture’s Knowledge Management efforts revolves
around the ability to save money through knowledge capture, creation and reuse.
Knowledge sharing is concentrated internally, with little consideration given to
sharing knowledge with clients unless contracted to do so. Accenture’s knowledge is
treated as extremely sensitive and allows access to the Knowledge Base by outsiders,
such as clients, on rare occasions. Accenture believes effective Knowledge
Management to be crucial to sustainable competitive advantage and its stance on
security of its Knowledge Repository is a means of protecting the confidentiality of
its clients.
5.4.4 Limitations of the Research Sub-Study
Firstly the scope of the case study was limited to the Asia Pacific region and within
that Accenture’s Government Operating Group. For the study to be considered truly
representative of Accenture’s Knowledge Management Practices and Strategies, it
would be necessary to increase the scope of the case study to include all five of
Accenture’s Operating Groups, and all three of Accenture’s Regions.
The case study is purely exploratory and does not test any theoretical propositions
that would provide evidence to support Accenture’s assertion that their Knowledge
Management Strategies and Practices act as a cost saving device. Furthermore, there
is no attempt to quantitatively measure the effectiveness of Accenture’s Knowledge
Management Initiatives.
In addition, as this is a single case study it cannot be considered as convincing as a
multiple case study. Yin (2003) comments that evidence gathered from Multiple
Case Studies is often more compelling because it is gathered from multiple sources
and the overall study is therefore considered more robust. The logic behind the
decision to adopt a multiple case study approach does not stem from sampling logic
but from the point of view of replication, which is often used to test an hypothesis or
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generalise to theory. Yin (2003) suggests that case study is more akin to experiment
than survey research. In experimental research, experiments are often replicated to
add reliability to the findings.
A further limitation to the study is the potential bias of the findings due to the data
collection approach. The people interviewed were Accenture staff, and Accenture
provided very limited access to any internal documentation.
5.4.5 Potential for Future Research
There is potential to extend the case study to other regions and/or Accenture
Operating Groups, to provide a more compelling exploratory examination of
Accenture’s Knowledge Management Strategies and Practices. However it is
suggested that any future research examining Knowledge Management at Accenture
should be based upon a theoretical framework designed to measure the effectiveness
of Knowledge Management Initiatives in Professional Service Firms.
There is potential to explore further at the micro (transactional) level the impact that
Knowledge Management and Knowledge Transfer has on the success of projects and
consulting engagements.
5.4.6 Implications for Accenture
Accenture is very much internally focused, placing considerable emphasis on
capturing knowledge from projects and sharing knowledge internally, relying heavily
on its proven track record and not seeking to gather much knowledge from external
sources. Accenture has the opportunity to learn a great deal from its interactions
with clients and by exploring further ways to capture knowledge from the external
environment. Dawson (2000) comments that Knowledge-Based Relationships
between client and consultant can result in new sources of competitive advantage for
Professional Service Firms.
In addition, Accenture has no true method of measuring the effectiveness of it
Knowledge Management Initiatives. Accenture acknowledges that the Knowledge
Management Strategies and Practices implemented are not instituted as revenue
raising devices but as a cost reduction approach. However, Accenture has no way of
knowing whether this is indeed the case or whether the strategies and practices
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implemented are costing the firm more than they are saving. Nor is Accenture able
to determine whether Knowledge Management is providing them with a sustainable
competitive advantage. If Accenture were to develop metrics that demonstrated the
effectiveness of Knowledge Management, this could lead to greater competitive
advantage. In the future, Accenture may make the transition to a more aggressive
approach of revenue raising through Knowledge Management rather than just cost
control.
5.5 Chapter Summary
The objective of the Accenture Case Study was to gain an understanding of
Accenture’s Knowledge Management Strategies and Practices. Data gathered from
Accenture consultants was compared with the literature to identify gaps that exist
between practice and the salient literature. The Accenture Case Study investigated
Accenture’s Knowledge Management Strategies and Practices through the roles of
Consultant, Knowledge Champion, Project Manager, Program Manager, Partner and
Knowledge Manager. Investigation of each these roles allowed the researcher to
compare the approaches of each role and improve the researcher’s overall
understanding of Accenture’s Knowledge Management Strategies and Practices.
The Accenture Case Study contributes to the overall study by assisting in interpreting
the data gathered from the Context Case Study and the Issues Delphi Study. The
findings of the Accenture Case Study have enhanced the researchers understanding
of the role of knowledge in Professional Service Firms and contributed to the
researcher’s subsequent interpretation of the Knowledge in Professional Service Firm
model.
The next chapter explores the data collection, analysis and findings of the Issues
Delphi Study. The Accenture Case Study improves the understanding to the
Knowledge Management related issues of the Issues Delphi Study as well as
assisting with contrasting issues relating to the large consulting firm examined in the
Accenture Case Study with small-medium sized consulting firms examined in the
Issued Delphi Study.
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6 Issues Delphi Study
The key purpose of the Issues Delphi Study is to identify and weight the importance
of issues facing Australian Management Consulting Firms. This chapter describes
the approach of the Issues Delphi Study. Data collection was performed by two
survey rounds. The first was an Inventory Round with the purpose of gathering as
many issues as possible from IMC members, and a second survey round, the Weights
Round, giving IMC members the opportunity to weight the importance of each of a
synthesised list of the original issues gathered from the Inventory Round.
The synthesis process is described, presenting in detail the process of fractionation,
harmonisation, reduction and cleaning in section 6.3.2. In addition, the rules
governing the synthesis process as well as the wording of the synthesised issues used
in the Weights Round survey instrument are also described.
One of the principal purposes of this chapter is to provide information on the use of
the Delphi Method paying particular attention to the guidelines and processes applied
to distil issues and develop a conceptual framework generated from the bottom-up
derivation of the issues received. Whilst the study’s primary aim is to identify issues
affecting Australian Management Consultants, it also aims to make a valuable
contribution to knowledge by documenting the process for the distillation of issues
using the Delphi Method and the generation of a conceptual framework in an attempt
to develop guidelines for this process. This will result in a repeatable methodology
with broad applications to studies involved in distilling issues using the Delphi
Method.
Findings of the Inventory and Weights Round are presented, Descriptive statistics
are analysed by mean scores and the top and bottom four Major Issues are
interpreted. Comparative statistics across demographics are also presented and
discussed.
6.1 Study Context
The Issues Delphi Study provides insight into a broad spectrum of issues facing the
Australian Management Consulting industry with emphasis on small-medium sized
firm. Emphasis on this demographic was due to the characteristics of the study
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sample; the Institute of Management Consultants (IMC). IMC’s membership consists
primarily of firms with fewer than five consultants. Given the emphasis the literature
has placed on Knowledge Management within the Management Consulting industry,
we predicted that Knowledge Management issues would also be significant.
The Issues Delphi Study on major issues in Management Consulting Firms is one of
the few attempts to address this important problem area in Australia. The study
assists in identifying issues by obtaining data from the Executive of the IMC, the
professional body for Management Consultants in Australia. By initially identifying
issues consultants perceive as most important, the results of this study can assist IMC
to provide new services to effectively address member needs.
Both the Context Case Study and the Issues Delphi Study place a high level of
emphasis on identifying and gauging the importance of issues faced by the
Management Consulting industry in Australia. The Context Case Study attempts to
identify issues faced by the Australian Management Consulting industry by gathering
data from the Executive of the IMC. The Issues Delphi Study expands on the
findings of the Context Case Study via two survey rounds of the entire IMC
membership. The first (Inventory) round gathers as many issues as possible from the
membership whilst the (Weights) second round asks the membership to weight the
issues gathered during the first round.
6.2 Data Collection
6.2.1 Inventory Round
The Inventory Round aimed to gather as many issues affecting Australian
Management Consultants as well as collect demographic data that would assist in the
later data analysis and the interpretation of the issues including, type of firm, number
of consultants employed with the firm, firm location (city), role of the respondent
within the firm and the firm’s specialisation. This allowed the researchers to
distinguish whether the respondent was a sole proprietor or part of a group of
consultants. In addition, it allowed the researchers to determine whether the
respondent’s firm was located in a regional or metropolitan area and whether their
firm possessed specialist or generalist expertise.
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The research question posed to potential respondents was “What are the major issues
facing your consulting firm?” The wording of this simple question is crucial and has
been debated at length with the researchers deciding to adopt the aforementioned
question. The wording is key to the success of the Delphi Method. If respondents
are unable to understand the question or misinterpret it, they may answer
inappropriately (Chang & Gable, 2000) or may be discouraged from responding at
all. Great care was taken not to suggest a limit of issues for respondents to list in
order to elicit as many issues as possible. Some respondents returned one issue
whilst others returned upwards of twenty issues.
The survey was distributed by IMC’s National Secretariat Manager via email and
returned directly to Queensland University of Technology via the same means. This
approach was taken to maximise the number of responses by presenting an IMC
sanctioned survey. In addition, regular updates of the study were posted in IMC’s
quarterly newsletter to further maximise the number of responses. Of approximately
1082 IMC members, the researchers received 73 responses consisting of 396 issues.
6.2.2 Issues Synthesis
The Synthesis Process was broken into two phases, the first being the rationalisation
of issues from the original 396 to a workable shortlist of issues. The second phase
was the classification of the shortlist of issues into the 3 Major Issue Categories, 17
Major Issues and 72 Super Issues.
The rationalisation exercise is an iterative process, with a number of rules designed
to make the data more useful. The main purpose is to generate a short workable list
of issues from a large list of raw issues.
The rationalisation process (Figure 6.1) is a four step process applying the four rules
presented in Table 6.1.
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Table 6.1 – Rationalisation Exercise Rules Rule Rationale for Rule
Rule 1 – Retain only
Management Consulting
Specific Issues
Many issues received are non-specific to Management
Consulting and can be otherwise categorised as: personal,
industry specific or SME specific issues. The study is not
specific to any particular sector of Management Consulting. The
exclusion of non-Management Consulting specific issues yields a
more useful list of issues.
Rule 2 – Consult another
researcher when encountering
an ambiguous issue(s)
In interpreting the issues there is some ambiguity. In this case
the primary researcher conducting the rationalisation exercise
meets with a senior researcher to gain assistance with
interpreting the ambiguous issues.
Rule 3 – Use of Context Case
Study in Interpreting Issues
A Context Case Study into issues impacting upon Australian
Management Consultants was conducted prior to this study. This
Context Case Study compared issues gathered from IMC
Executive and the predominant literature. By constantly
referring to this document it assists in the interpretation of issues
received from IMC members.
Rule 4 – Refer to
demographic data when
encountering an ambiguous
issue
This rule performed in conjunction with Rule 2 would assist the
researchers to ascertain the true meaning of the issue. If in the
application of both Rules 2 and 4 the true meaning of the issues
can not be ascertained then the issue is discarded.
Fractionation
This phase separates compound issues gathered
from IMC members into individual single issues.
Many of the respondents would phrase multiple
individual issues as a single issue. The researcher
was required to isolate the individual issues in the
text and break the compound issue into two or
more individual issues.
Harmonisation
The purpose of this phase of the process is to
search for like statements of particular issues.
This is performed by comparing the list of issues gathered during the Context Case
Fractionation
Harmonisation
Reduction
Clean
Figure 6.1 – Rationalisation Process
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Study (Rule 3) and comparing like statements of issues gathered during the Inventory
Round of the Issues Delphi Study. Rules 2 and 4 are also used in the interpretation
of ambiguous issues.
Reduction
This phase reduces the long list of issues into a short list of issues by removing
redundancy and applying Rule 1 to disregard any non Management Consulting
specific issues. The primary focus of this phase is to derive a workable set of issues
from the long list of issues received from IMC members. In this step it was also
important to recognise that different respondents used different terminology to
describe the same issue. Care had to be taken not to misinterpret the original
meaning of the issue.
Clean
The cleaning phase is a rewording of issues. This step was crucial to the entire
process. It was important for as much of the original issue wording to be retained
(Hasson et. al) in order not to lose the original intent of the issue. In several
instances issues gathered from the Inventory Round would have the same meaning
but would be worded differently by the respondent. It was important to reword the
issues so they would be easily recognisable by all potential respondents. This was
achieved by attempting to use more generic language rather than using jargon that
may only be understood by a small proportion of respondents.
The result of the Synthesis Process was a usable set of 190 synthesised issues
reduced from the original 396 issues. The second phase of the Synthesis Process is
the classification exercise; the purpose of which is to isolate the seminal issues
affecting Management Consultants in an attempt to produce a manageable set of
Super Issues for respondents to weight in the Weights Round.
The Synthesis Process was first attempted by a text based interpretation of issues and
list system to isolate issues that were perceived as key as well as grouping like issues
together. This approach had been adopted by prior researchers in similar issues
studies employing the Delphi Technique. However, the researcher found this
approach too difficult and ultimately abandoned it in favour of a cognitive mapping
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approach in an attempt to design a conceptual framework. This approach was a
purely bottom up derivation of the conceptual framework. The researcher found this
visual approach to mapping and clustering issues into groups much easier than the
prior attempted text based approach.
During the process, the researcher managed to isolate and generate rules for this
process. The first step in the process was to isolate idiosyncratic issues that affected
what was perceived as a small proportion of the Management Consulting market.
This perception was based upon the Context Case Study that was conducted prior to
the Inventory Round to gain an understanding of the current state of industry. The
Context Case Study presented data gathered from the IMC Executive as well as the
prominent Management Consulting literature to draw an overarching picture of the
Management Consulting industry in Australia. Issues that appeared novel in nature
or appeared to affect only a small sector were discarded to maximise the number of
respondents. The decision to discard an issue was difficult but ultimately required, to
narrow the 190 synthesised issues to a manageable set of Super Issues and Major
Issues.
The major advantage of the Cognitive Mapping approach was the ability to visually
compare textual statements (Cognitive Maps attached as Appendix K). This allowed
the researchers to
isolate an existing
issue that was
broader in scope
than some of the
narrower focused
issues; thus
allowing the narrow
issues to map into
the broader issue to
create a Super
Issue. In addition,
if the case was that several similar but distinct issues would cluster together into a
meaningful group, the Context Case Study would be referred to in order to identify a
prominent Super Issues that the issues would readily map into. This was an iterative
Synthesised Issue 1
Synthesised Issue 2
Synthesised Issue (n)
Super Issue 1
Super Issue 2
Super Issue (n)
Major Issue
1Major Issue
2
Major Issue
(n)
Major Issue Category (n)
Figure 6.2 – Issue Hierarchy
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process. Once all the Super Issues were identified the similar but distinct Super
Issues were clustered into groupings. These groupings formed Major Issues, which
further mapped into three Major Issue Categories, the Changing Consultant
Environment, the Changing Client Environment and the Consultant Engagement
Process Figure 6.2 depicts the hierarchy which is (in top-down order):
• Major Issue Categories
• Major Issues
• Super Issues
• Synthesised Issues
To facilitate the mapping of issues, briefer statements were required to fit the issues
into a bubble but care was taken to ensure the statement generated still captured the
essence and intended meaning of the original issue. This was achieved by referring
to the issue as originally stated by the respondent as well as interpreting the issue in
light of the demographic data gathered from the respondent. This was particularly
useful when attempting to convert more ambiguous or unwieldy issues into briefer
but useful statements.
The unexpected benefit of the Cognitive Mapping process was the further
identification of redundant or irrelevant issues that were not discovered during the
rationalisation exercise, thus assisting in the production of a more succinct list of
shortlist issues.
6.2.3 Weights Round
6.2.3.1 Weights Round Preparation
The Weights Round aimed to gauge the importance of the synthesised list of issues
collected during the Inventory Round. Furthermore, demographic data was collected
that assisted in the later data analysis and the interpretation. The demographic data
collected included: type of firm, number of consultants employed with the firm, firm
location (city), role of the respondent within the firm and the firm’s specialisation.
This allowed the researchers to distinguish whether the respondent was a sole
proprietor or part of a group of consultants. In addition, it allowed the researchers to
determine whether the respondent’s firm was located in a regional or metropolitan
area, as well which state they were located in and whether their firm possessed
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specialist or generalist expertise. The issues were weighted using a 7 point Likert
scale.
The question posed to potential respondents was “What are the major issues facing
your consulting firm?” The wording of this simple question is crucial as were the
issues in the Weight Round instrument. A long and rigorous process was followed to
achieve the optimum wording of the issues. The wording is key to the success of the
Delphi Method. If respondents are unable to understand the question or misinterpret
it, they may answer inappropriately (Chang & Gable, 2002) or may be discouraged
from responding at all.
Once the research team had arrived at the 72 synthesised issues, the wording of the
issues and the survey instrument was subject to a rigorous process of evaluation. In
the first instance the researchers conducted several iterations to review the wording
of the issues and the instruction text of the document. In addition, IMC took the
opportunity to review the instrument and the wording of the issues. When changes
were made to the instrument IMC would review the changes prior to final approval.
The instrument was also piloted with a sole proprietor consultant not belonging to
IMC, and with IMC’s State Chapter Presidents. This evaluation process led to the
development of the rules listed below:
1. Issues must be clear and unambiguous.
• The issue must be easy to understand and the meaning clear.
2. Wording must reflect current business terminology rather than the academic
equivalent.
• As the sample consisted mainly of business professionals, it was felt that
academic speak would be too difficult for the sample to understand so it
was decided that any academic terminology should be converted to
business speak.
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3. Issues must be worded as a sentence rather than as a statement.
• It was felt by IMC that issues phrased as sentences rather than statements
were easier to read and interpret
4. The wording of the issue must reflect the original meaning of the synthesised
issue.
• This is crucial, if the wording of the issue changed the original intended
meaning the issue would not be a true reflection of the responses received
during the Inventory Round.
5. The issues must not be expressed to imply novelty when this may not be the
case.
• Feedback received from the pilot survey was that many of the issues
contained a phrase similar to “increasing” or “greater emphasis” when it
was felt that this was a perennial issue. The word “increasing” suggested
that this was a new issue and because he did not agree with the statement
the respondent would rate the issue as less important than had it not
contained this phrase.
In addition, the feedback received from the Chapter Presidents was that the issues
could be interpreted as important/unimportant or agree/disagree. This concern was
addressed by rewording the issues as best as possible to reflect a response of
important/unimportant. However, this was difficult to achieve without leading the
response. Many other ideas were proposed to correct this issue including: two
separate Likert scales – the issue with this approach was considered to be too
confusing for the respondent. It was possible for the respondent to become confused
with the two scales and weight the issues incorrectly; the second approach suggested
was for the respondent to tick a box to declare whether they agreed or disagreed with
the issue; however the final decision was made that if the respondent disagreed with
the issue then they would consider it unimportant to their consulting firm.
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6.2.3.2 Weights Round Distribution and Collection
The survey was distributed by IMC’s National Secretariat Manager via email, post
and fax and Queensland University of Technology accepted the responses in the
same manner. In addition, the research team established a web survey which was the
preferred method of response by the study sample. Both the Web Survey and the MS
Word version included the IMC Chapter Presidents names to demonstrate their
support for the study. This approach was taken to maximise the number of responses
by presenting the appearance of an IMC sanctioned survey. In addition, regular
updates of the study were posted in IMC’s quarterly newsletter to further maximise
the number of responses. Although with such strong support from IMC Executive,
response from the sample was slow and several attempts were made to garner
maximum response. The research team had gone to great effort in the attempt to
devise methods of garnering as greater response as possible. Most of the effort went
into the design of the MS Word and Web Instrument. The aesthetic design, layout of
the instrument and wording of the instruction text went through many revisions in
order come to a design that the researchers believed would maximise response.
Furthermore, the all IMC members were sent an email direct from IMC’s National
Secretariat Manager with the MS Word Instrument attached and an URL Link to the
web survey if they preferred to respond in this fashion. Information about the study
featured prominently in the IMC newsletter reminding members of the survey and
how they could respond. Moreover, a prominent message was displayed in the
member area of IMC’s website inviting members to complete the instrument on-line
or download the MS Word version.
After the first iteration, the research staff reduced the text on the information page of
the survey at IMC’s suggestion. Originally it was felt that 72 issues was a large
number of issues to weight, so the instrument attempted to disguise the number of
issues from the respondent by not mentioning it in any of the instruction text of the
survey. However, for subsequent iterations the number of issues was included in the
instruction text as it was suggested by IMC that this attempt to disguise the number
of issues meant that the study sample could not estimate the time it would take to
complete the survey. Hence, it was felt that members may become frustrated half
way through the instrument owing to the length and fail to complete the rest of the
survey.
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In addition, the list of respondents was provided to IMC so that they could contact all
the members that had not responded by personal email to encourage their response.
This encouraged an initial significant response from 112 IMC members. In addition,
IMC’s National Secretariat Manager contacted the President of each IMC State
Chapter garnering further response. The result was a response of 184 (17%) of
IMC’s 1082 members.
6.3 Weights Data Analysis
As part of the Synthesis Process described above, a framework was developed from
an inductive (bottom-up) approach. After going through the four step process
discussed in section 6.2.2 a Cognitive Mapping approach was used to define
groupings of issues and identify Super Issues that would encompass and represent
the meaning of several smaller issues. Cognitive Mapping is used to allow people to
frame, interpret, simplify and makes sense of otherwise complex problems (Fleck,
Scarbrough, & Swan). Cognitive Maps “are built from past experiences and
comprise internally represented concepts and relationships among concepts that an
individual can then use to interpret new events. This is important because decision-
makers have a limited capacity for processing information so that, when dealing with
complex problems like innovation, they could rarely process all the information that
would be relevant. Their mental models help decision-makers to select information
and to decide what actions are appropriate.” (Fleck et al. quoting: Weick, 1979) In
this instance the Cognitive Mapping approach was adopted to assist in the decision of
which issues constituted Super Issues, and which issues would be included in the
final 72 synthesised issues for the Weights Round Instrument. A Cognitive Map
may take several forms; the cognitive map used for the purpose of this study was a
hierarchical structure of the issues. The common mind mapping approach often
adopted in Cognitive Mapping was used to develop a classification that would assist
the researchers during the analysis phase of the study.
However, the normal approach adopted with mind mapping is to begin with a single
idea in the centre of the map and then branch other ideas from the centre out to form
outer nodes. Each of the outer nodes may continue with more branches to children
nodes, this continues until all ideas are exhausted.
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The researcher adopted a different approach to the typical Cognitive Mapping
process (Cognitive Maps attached as Appendix K). The researcher was not
beginning with one central idea and working outward: instead the researcher was
working with 190 synthesised issues that needed to be reduced and categorised.
Therefore the synthesised issues were grouped into categories allowing the
researcher to further eliminate redundant issues, identify issues which could
represent the several other issues without losing the meaning of the issues it was
representing, and generate a hierarchy of issues and categories from which a
conceptual framework (Figure 6.3) would derive. Figure 6.3 – Conceptual Framework
6.3.1 Descriptive Statistics
Table 6.2 provides the breakdown of response by state, firm size, and extent of
public sector work that the respondent’s firm is engaged in. The results show that
there is a high concentration of Management Consulting Firms in Queensland (QLD)
and New South Wales (NSW), with the Australian Capital Territory (ACT) and
Tasmania (TAS) showing a much small percentage of consulting firms.
Table 6.2 also demonstrates that IMC’s membership consists predominantly of
small-medium sized firms with 82.6% of the response composed of firms with fewer
than five consultants. The data also show that Public Sector involvement is fairly
even across the range.
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Table 6.2 - Demographic Data of Respondents
Demographic Data of Respondents (n=184)
Frequency Percent State ACT 5 2.7 NSW 43 23.4 QLD 56 30.4 SA 13 7.1 TAS 7 3.8 VIC 34 18.5 WA 23 12.5 UNKNOWN 3 1.6 184 100 Firm Size Sole Trader 87 47.3 2 TO 5 65 35.3 6 TO 20 24 13 21 TO 100 6 3.3 100+ 2 1.1 184 100 Public Sector Involvement 0% 32 17.4 1-25% 26 14.1 26-50% 26 14.1 51-75% 52 28.3 76-100% 40 21.7 Unknown 8 4.3 184 100
Adapted From (Bulmer, Gable, & Kennelly, 2004)
6.4 Findings
Figure 6.3 depicts the framework developed as part of the Synthesis Process. Of the
17 Major Issues the top four rated Major Issues from the Weights Round were: (1)
Consulting Fees, (2) Globalisation, (3) Government Regulation, and (4) Sparse
Availability of Work. The lowest rating Major Issues in descending order are: (1)
Practice Management, (2) Consulting Skills, (3) Client Perception of the Industry,
and lastly (4) Professional Status. Detailed information listing the 72 issues and the
comparative demographic data discussed in this chapter is located in Appendix J.
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6.4.1 Consulting Fees
“Consulting Fees” rated as the Major Issue with the highest mean score overall of
4.67. This Major Issue included the top ranking Super Issue (Super Issue #51)
“There is a need for a Management Consulting industry standard billing system and
general fee structure (like solicitors)” (Mean = 4.88). The other Super Issue
belonging to “Consulting Fees” was (Super Issue #47) “Government is promoting a
standard fee structure to clients for Management Consulting Services, which is
limiting fee flexibility” (Mean = 4.46). These issues demonstrate that IMC members
believe it is important that the industry develops a standard fee structure but would
prefer that the industry develop their own standard rather than a fee structure being
imposed by government. AFR Boss surveyed Chief Financial Officers of 261 small,
medium and large companies and learned that flat fees are the common method of
charging clients. However, a third of the big companies preferred to adopt
performance-based fees to pay their consultants and 27 % use result-based fees
(Trinca, 2002b). This reflects the need for flexibility as competition increases and
the need to demonstrate to clients that they are getting value for money, places
increasing pressure on consulting fees (Trinca, 2002b, 2002d).
6.4.2 Globalisation
The second highest Major Issue was “Globalisation”. The respondents place
considerable emphasis on their difficulty competing with global consulting firms as
well as the need to meet the clients’ desire to become a global organisation. Client
organisations appear to have a predilection towards engaging global consulting firms,
as they are not convinced that a local firm is capable of providing the outcomes that
will propel the client to success in the global market. As a consequence, many
smaller firms are forced to globalise their brandings, services and product offerings
to remain competitive. This is difficult for smaller firms to achieve, many instead
seeking to adopt a specialist niche that will allow them to trade on lower fees and
good reputation in order to compete with larger firms (Roberts, 2004). However, the
problem of many small firms competing with global consulting firms for global
clients is not one that is likely to be quickly resolved. Trinca (2002) quotes one long-
time consultant as saying “When you look at the large scale companies, the Cokes
and the Shells, they need global firms working 24/7 to carry out transformation of
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business process.” Smaller firms find meeting the demands of a global client
difficult or often impossible to achieve given their firm’s small size.
Poulfelt et al. (2005) and Roberts (2004) argue that in order for large and small firms
to prosper in the future, they will need to position themselves to deal with the
globalisation of industries and companies. Large firms will need to establish
themselves in many cities across the globe, whilst smaller firms will need to join
with larger firms to assist clients to address globalisation issues. In addition, in order
for smaller firms to compete they may need to brand and promote themselves as a
large “alliance” of firms by forming complementary networks or partnerships to meet
the needs of the clients (Roberts, 2004). However, evidence from the survey would
suggest that the respondents disagree.
Although they consider globalisation to be an important issue the respondents
considered the following Super Issue (Super Issue #19) “There is a need to establish
a network of complementary Management Consulting skills across Management
Consulting alliances/partnerships.” ranked 56 with a mean of 3.52, as a relatively
unimportant issue. We can draw the conclusion that this is either not important
because they are achieving this quite successfully or that it is more likely that they
prefer to work independently rather than as part of an alliance, for fear of losing
competitive advantage by the unintentional sharing of esoteric knowledge.
The notion that consulting firms must be international for clients to recognise them
as a leading-edge player is supported by Poulfelt et al (2005). All fifty leading
global consulting firms now occupy offices spread across the globe. The majority
have expanded abroad through mergers, acquisitions, joint ventures and alliances.
Today, the focus is on Asia, particularly China (Poulfelt et al., 2005), as this country
experiences rapid growth in internet related work. China currently has 93 million
internet users, up from 22 Million users in the year 2000 (Internet World Stats,
2005). This is providing opportunities for many small and large consulting firms
alike (Poulfelt et al., 2005).
6.4.3 Government Regulation
The “Government Regulation” Major Issue was rated third most important by
respondents, with an overall mean of 4.20. The following government regulation
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Super Issues were considered important by respondents: (Super Issue #3)
“Government is influencing which consulting projects private enterprise take on by
approving or rejecting subsidy applications” (Mean = 4.70), (Super Issue #17)
“Clients who rely on a consulting-work-subsidy from government, delay project start
dates and are indecisive about whether to engage consultants” (Mean = 4.34). Super
Issue #3 rated second of all 72 Super Issues with a mean of 4.7. A search of the
literature failed to identify any articles pertaining to government subsidies for
Management Consulting work, indicating an unexplored area of research for the
consulting industry in Australia. The weighting that Super Issue #3 has received
coupled with Super Issue #47 “Government is promoting a standard fee structure to
clients for Management Consulting Services, which is limiting fee flexibility”,
belonging to the top ranking Major Issue “Consulting Fees”, demonstrates that
consultants feel over regulated.
6.4.4 Sparse Availability of Consulting Work
The fourth highest ranked Major Issues is the “Sparse Availability of Consulting
Work” with an overall mean of 4.17. The following three issues were weighted as
substantially important (Super Issue #37) “A lack of available, challenging and
rewarding consulting work is forcing Management Consultants to relocate interstate
or overseas” (Mean = 4.63)’, (Super Issue #30) “The poor economic climate is
resulting in limited opportunities for Management Consulting work” (Mean = 4.28),
and (Super Issue #39) “Changed government policy regarding the engagement of
external consultants is negatively impacting the availability of government work for
Management Consultants” (Mean = 4.20).
6.4.4.1 Strong Growth before the Economic Downturn
The 1980s and 1990s marked what is purported to be a golden era for Management
Consulting, which evolved around Information Technology and global expansion.
This period saw many mergers and acquisitions of small and large firms and the
transformation of the ‘Big 8’ to the ‘Big Five’ by the year 2000. The growth and
high profitability attracted many non-consulting organisations to enter the consulting
industry through high profile acquisitions. The main drive behind these acquisitions
was a shift toward providing one-stop integrated Information Technology solutions
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as well as marking the beginning of many consulting firms purchasing Information
Technology companies to address the growing trend toward Information Technology
solutions. The largest growth during this period came from Information Systems
providers who would assist clients to formulate an information strategy, and then to
design and install the appropriate Information Technology infrastructure (Poulfelt et
al., 2005).
6.4.4.2 Factors Contributing to the Economic Downturn
However, since the year 2000 a series of economic catastrophes has resulted in an
unprecedented major decline in consulting work. The dot.com crash, followed
quickly by the fall of the telecommunications industry, a market saturated with
Enterprise Resource Planning implementations, and the inordinate spending of
companies world-wide to correct the millennium bug have all contributed to the
decline in consulting work. In 2001 the attack on the New York World Trade
Centre occurred, followed by continuing threats of terrorism and a world-wide
economic recession. Simultaneously the collapse of Enron negatively impacted the
perception of the consulting industry. Fear that an unfavourable audit of Enron
would jeopardise Andersen’s lucrative consulting work with Enron, led to a conflict
of interest where Andersen was concerned. Andersen appeared more focused on
pleasing their client than adhering to proper auditing practices and standards (Bailey,
2002b; Braue, 2002; Catherine Fox & Trinca, 2002; Trinca, 2002b), the
consequences of this reduced the ‘Big Five’ Accounting Firms to the ‘Big Four’ as
Andersen fell into disrepute over the incident. This behaviour on the part of
Andersen’s acted as a catalyst for a major restructuring of the consulting industry.
Many large Accounting Firms have severed their consulting arms by selling them
off, establishing them as separate divisions and rebranding them. This action on
behalf of these large Accounting Firms has been motivated by the need to establish
the appearance of independence or through legislative intervention (Allis, 2002;
Braue, 2002; Byrne, 2002; Catherine Fox & Trinca, 2002; Haddad & Prasso, 2002;
James, 2002; McMann & Hordes, 2000; Trinca, 2002b, 2002d).
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6.4.4.3 Supporting Data
The effects of these economic catastrophes are far reaching and have impacted the
market’s perception of small, medium and large sized consultancies. The study
pointed to similar conclusions: as discussed earlier, the Major Issue “Sparse
Availability of Consulting Work” ranked fourth in the 17 Major Issues with an
overall mean of 4.17. The mean scores of the following two Super Issues: (Super
Issue #37) “A lack of available, challenging and rewarding consulting work is
forcing Management Consultants to relocate interstate or overseas” (Mean = 4.63),
and (Super Issue #30) “The poor economic climate is resulting in limited
opportunities for Management Consulting work” (Mean = 4.28). Super Issue #37
received a high mean score from respondents indicating that many consider either
moving to another country to be a good alternative to a sparse availability of
consulting work or expanding their firm’s operations into countries like China that
are experiencing rapid Information Technology growth.
Super Issues #37 and #30 make the inference that clients are now distrusting of
consultants’ advice, and are still in a cost cutting mindset due to the poor economic
conditions of 2001 to 2003. Furthermore, due to the downsizing of the consulting
industry, client companies have eagerly employed former consultants in addition to
becoming more sophisticated, thus enabling them to perform in-house solutions
rather than seeking the advice of outsiders (Trinca, 2004).
6.4.4.4 Comparison by State
For all Australian states, with the exception of Tasmania and Western Australia, the
issue surrounding the need to relocate interstate or overseas was considered an
important issue, ranking between 2 and 6 with New South Wales assigning the
highest weighting of the issue. This indicates the highly competitive nature of
consulting in these states. However, Tasmanian and Western Australian respondents
considered this issue to be unimportant, with rankings of 70 and 37 respectively.
This coupled with the recent economic downturn may force consultants in the
aforementioned states to consider opportunities overseas, particularly in China where
there exists great potential for Information Technology consultants due to the
countries high rate of internet growth. The internet growth in China has created
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opportunities for many small and large consulting firms to expand or relocate to a
market where there is increasing demand for Information Technology related
products and services (Nolan & Bennigson, 2005; Poulfelt et al., 2005).
6.5 Chapter Summary
This chapter described the approach of the Issues Delphi Study. Data collection was
performed by two survey rounds. The first was an Inventory Round with the purpose
of gathering as many issues as possible from IMC members, and a Weights Round
giving IMC members the opportunity to weight the importance of each of a
synthesised list of the original issues gathered in the Inventory Round.
The synthesis process is described, presenting in detail the process of fractionation,
harmonisation, reduction and cleaning in section 6.2.2. In addition, the rules
governing the synthesis process as well as the wording of the synthesised issues used
in the Weights Round survey instrument is also described.
Findings of the Inventory and Weights Round are presented, Descriptive statistics
are analysed by mean scores and the top and bottom four Major Issues are
interpreted. Of the 17 Major Issues the top four rated Major Issues from the
Weights Round were: (1) Consulting Fees, (2) Globalisation, (3) Government
Regulation, and (4) Sparse Availability of Work. The lowest rating Super-Issues in
descending order are: (1) Practice Management, (2) Consulting Skills, (3) Client
Perception of the Industry, and (4) Professional Status.
Comparative statistics across demographics are also presented and discussed.
Demographics were compared along: state, firm size, and the percentage of public
sector work the firm was engaged in.
The next chapter presents the findings of a conceptual analysis of the Knowledge in
Professional Service Firm model. The Knowledge in Professional Service Firm
model assists in the overall analysis of the Management Consulting industry through
a Knowledge Management lens. Understanding the role that knowledge plays in
Professional Service Firms is essential as knowledge is the consulting industries
main stock-in-trade and the industries primary source of revenue.
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7 Knowledge in Professional Service Firms
As discussed earlier in Chapter Two, an effective Knowledge Strategy is crucial for a
Professional Service Firm to attain sustainable competitive advantage. A
Knowledge Strategy is crucial because Professional Service Firms are considered a
subset of Knowledge-Intensive Firms (Empson, 199b; Newall, 2002). A
Knowledge-Intensive Firm is one which has knowledge as its main stock-in-trade.
Professional Service Firms sell the expert knowledge and expertise of their staff to
assist clients in solving a problem or exploiting an opportunity, in ways possible only
with assistance from outside of their own organisation (Empson, 1999b; Empson &
Morris, 1998).
The Knowledge in Professional Service Firms model, depicted in figure 7.1,
represents an important component of the overall study. The Knowledge in
Professional Services model and variants (depicted in figure 7.5) arrived at through
in depth conceptual effort involving a focus group of senior academic staff, yielded a
valuable conceptual model for interpreting the data gathered from the other three
sub-studies. The Knowledge in Professional Service Firms model not only presents a
useful conceptualisation of the role of Knowledge in Professional Service Firms but
also provides the researcher with a broader insight of how consulting firms attempt to
compete in two external markets for clients and staff.
This chapter presents the results of a conceptual analysis of the Knowledge in
Professional Service Firms. The chapter will explore the origins of the model and
how it developed from Maister’s (1997) model of balancing the three aims of a
Professional Service Firm through leveraging junior staff with senior staff’s
knowledge and expertise.
The chapter will also present the researcher’s interpretation of the Knowledge in
Professional Service Firm model constructs and the relationships between each of the
constructs. In addition, the attempt to develop several model variants will be
explored and an argument for the resulting final model variant which incorporates a
new construct, Knowledge Management, will be presented.
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7.1 Conceptual Analysis of a Proposed Model
The research team identified Empson and Morris’s (1998) model (Figure 7.1)
describing the role of knowledge in Professional Service Firms as providing potential
value to practitioners and researchers by enhancing understanding of Knowledge
Management in Professional Service Firms. The researcher went through a process
of attempting to interpret and understand the meaning of the constructs of the model
and the relationships between the various constructs. Empson and Morris provided
very little discussion on the model itself but understanding of the constructs and their
relationships could be interpreted from the article ‘Organisation and Expertise: An
Exploration of Knowledge Bases and the Management of Accounting and Consulting
Firms’ and Empson’s (1999) article ‘Lessons from Professional Service Firms’.
This was a difficult process which also involved the interpretation of much of the
predominant Knowledge Management and Management Consulting literature as well
as the findings from the Context Case Study, Issues Delphi Study and the Accenture
Case Study. Analysis of the constructs involved identifying the components of each
Market forProfessionalWorkforce
(who we want)
Markets forPSF’s Services(what we do)
KnowledgeBase
(what we have)
EconomicStructure
(how we profit)
OrganisationalStructure
(how we manage)
Figure 7.1 - Knowledge in Professional Service Firms
Adapted from Maister (1997) and Morris & Empson (1998)
External Environment
Internal Environment
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of the five constructs and also attempting to understand the relationships between the
constructs.
In addition, a focus group was held with many senior academics in the Faculty of
Information Technology in an attempt to analyse the model. Part of this process
involved the generation of two variants of the model discussed further in section 7.3.
However, further analysis identified that the variants generated during the focus
group were flawed in that they excluded the need of an Economic Structure, which
was considered by Maister and, Empson and Morris to be one of the principal
motivations behind the establishment of an effective knowledge or staff leveraging
strategy.
7.1.1 Role of Knowledge in Professional Service Firms
Maister (1997) suggests every Professional Service Firm (PSF) has three goals that it
needs to achieve in order to survive. The Professional Service Firm needs to balance
service, satisfaction and success, as depicted in Figure 7.2. ‘Service’ is the
Professional Service Firm’s ability to manage and renew the Client Market’s
demands for its services, ‘Satisfaction’ is the Professional Service Firm’s ability to
recruit and retain the right mix of staff, and ‘Success’ is achieved by maximising the
Professional Service Firm’s profit. Maister suggests that the best way for
Professional Service Firms to strike a balance between these three goals is to recruit
and retain the correct ratio of junior, middle-level and senior staff. He refers to this
as ‘leverage’, where a Professional Service Firm selects the correct ratio of junior to
senior staff to take best advantage of the knowledge and skills for individual projects.
Figure 7.2 – Linking the Three Goals of PSFs (Maister, 1997)
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The correct ratio depends upon the Professional Service Firm’s Practice Type.
Maister (1997) describes three Practice Types: Brains, Grey Hair, and Procedural
(Figure 7.3). These three Practice Types are often referred to as Maister’s
‘Continuum’, as no Professional Service firm typically adheres completely to only
one type of practice but may be situated closer to one practice type than the other on
the continuum (Maister, 1997).
The Expertise (Brains) Practice engage in leading edge highly customised work often
referred to as a ‘blank page’ approach to problem solving. Often these firms recruit
top graduates only and attract high fees for their work. The Expertise Practice would
leverage a higher ratio of senior staff to junior staff on projects (Maister, 1997).
The Experience (Grey Hair) Practice utilise past knowledge and experience on
familiar problems. Clients engage this type of firm because the consulting firm has
faced the client’s type of problem before. The approach is still very much
customised but the Experience practice leverages past knowledge with more junior
staff by allowing them to work alongside more senior staff. This allows the
Experience firm to charge high fees but pay lower salaries for actual work
performed.
Figure 7.3 – Maister’s Continuum (1997)
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The Efficiency (Procedural) Practice provides very procedural solutions for very
common problems. Most of the methods employed by an Efficiency Practice are
procedural in nature, making it easy to leverage more junior staff. Clients employing
this type of practice are often after a low risk and low cost solution. This market is
extremely competitive with many players in it.
Maister (1997) talks about the leveraging of Professional Service Firm staff to
achieve the three goals of Success, Satisfaction, and Service. Empson and Morris
(Empson, 1999b; 1998) have extended Maister’s concept of leverage to include
Knowledge by adapting Maister’s Model to the Figure 7.1 to describe the ‘Role of
Knowledge in Professional Service Firms’. Empson and Morris’s model is an
adaptation of Maister’s model of Balance in Professional Service Firms (Figure 7.2).
Empson and Morris have rephrased Maister’s ‘Market for Staff’ as ‘Market for
Professional Workforce’, Maister’s ‘Client Market’ as ‘Market for Professional
Services’, Maister’s ‘Profitability’ as ‘Economic Structure’, and Maister’s
‘Leverage’ as ‘Knowledge Base’. In addition, Empson and Morris have added an
‘Organisational Structure’ construct. Each of these constructs is explored in greater
detail in section 7.1.2.
Empson and Morris (1998) allude to the impact that the firm’s practice type (i.e.
Expertise, Experience or Efficiency) has on the form of the firm’s Knowledge Base.
The researcher has extended Maister’s description of practice types to include a
continuum of uncodified through codified knowledge. A firm adopting a procedural
approach to their firm is more likely to codify the firm’s Knowledge Base due to the
similar nature of the problems the firm faces with multiple clients. This is based
upon the assertion that a codified Knowledge Base will better accommodate the
leveraging of junior staff. Junior staff rely heavily on the knowledge and experience
of more senior staff so that the firm can charge junior staff out at a higher rate. A
codified Knowledge Base makes it easier for the firm to disseminate the knowledge
of senior staff in a useable form to a large number of junior staff.
However, an Expertise practice type relies much more heavily on the creativity and
innovation of its staff. Due to the unique nature of the problems this type of firm
deals with, it is more likely that this practice type will adopt an uncodified
Knowledge Base. The focus in terms of Knowledge Management of an Expertise
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type practice is on knowledge sharing rather than knowledge dissemination. The
distinction between knowledge sharing and knowledge dissemination is the means by
which knowledge is transferred. In an Efficiency type practice, junior staff obtain
disseminated knowledge via procedures and methodologies stored within a company
manual or a codified Knowledge Repository. Staff in an Expertise practice will rely
heavily upon sharing this tacit knowledge with their peers to provide a unique and
customised solution for their client.
Empson and Morris’s model (1998) can be considered a blueprint for Knowledge
Strategy in Professional Service Firms. Interpretation of each of the constructs and
discussion of the relationships between each of the constructs are detailed in section
7.1.2.
7.1.2 Interpretation of Knowledge in Professional Service Firms Model
Constructs
We describe in detail each of the five constructs of the Knowledge in Professional
Service Firms model.
Knowledge Base (Maister Model: Leverage) - The Knowledge Base represents both
an input and an output of the Professional Service Firm. It is an input in terms of the
expertise residing in the firm and it is an output in the form of products or services
generated to solve client problems (Grant, 1996). The Knowledge Base consists of
the organisation’s Knowledge Repository and the tacit knowledge and expertise of
the organisation’s Knowledge Workers depicted in figure 7.4 (Doyle & Adeline,
1998; Empson & Morris, 1998; Robertson, Swan, & Scarbrough, 2000). Analysis of
the Accenture Case Study data indicated that the input for a Knowledge Base is more
than just expertise, it is also the knowledge captured on engagements, or
organisational routines and processes (Scarbrough, 1996), project management or
idiosyncratic knowledge of the client organisation; methods developed by the firm to
give it a competitive edge; external research of competitors, potential clients, and
potential lucrative markets.
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How this knowledge is created, deployed and updated has implications for
recruitment and training as well as for product definition and delivery. In addition,
the form and content of the Knowledge Base affects the level of fee rates the firm
charges and the degree of leverage it achieves. Therefore, the firm’s ability to
compete in the two external markets (client and staff) is directly impacted by the
firm’s organisational and economic structure (Empson, 1999b). The relationship
between the two internal firm structures (organisational and economic) and the two
external markets is explored later in the chapter.
Organisational Structure (Maister Model: No Equivalent) – is the management
structure of an organisation. Professional Service Firms will adopt either a flat or a
hierarchical structure dependent largely upon the organisation’s size, organisational
culture and content and form of the organisation’s Knowledge Base (Empson, 1999b;
Empson & Morris, 1998). A Professional Service Firm’s organisational hierarchy
will typically consist of three levels. Finders: Partners (Senior); Minders: Managers
(Middle); and Grinders: Consultants (Junior) (Empson, 1999b; Maister, 1997). The
firm’s organisational structure will influence the firm’s policy on training, employee
promotion, as well as organisational culture and the firm’s ability to share and
disseminate knowledge. For instance, if a firm decides to adopt a flat organisational
structure, Empson and Morris (1998) suggest training will occur on an informal basis
via the tacit transfer of knowledge from a senior consultant to a junior consultant.
The organisational culture will have an emphasis on knowledge sharing rather than
Knowledge Workers
Knowledge Repository
Figure 7.4 - Organisational Knowledge Base
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knowledge dissemination. The flatter organisational structure allows all members of
the firm to work and interact on a collegial level in order to promote the sharing of
ideas and encourage creative and innovative thought amongst its consultants (Doyle
& Adeline, 1998; Empson & Morris, 1998; Maister, 1997; Robertson et al., 2000).
In addition, promotion is less rapid but reward for good performance comes in the
form of public recognition and increased status within the firm (Empson & Morris,
1998).
Alternatively, a firm that adopts a multi-level hierarchical structure will adopt a
structured training approach through codified knowledge in the form of manuals,
training packages, formal instruction. This approach to training is designed to
disseminate the maximum amount of knowledge to the widest audience possible. It
is also designed to allow junior consultants to leverage the knowledge of senior
consultants so the firm may charge clients higher rates for those juniors. The
promotion system in these firms is often an up-or-out system. Junior and senior
consultants must prove themselves within a specified period of time in order to be
promoted. If they do not achieve the standard required to be promoted they are often
politely asked to leave the firm. The organisational culture in this type of firm is less
collegial and often maintains a strict chain of command leaving little opportunity for
creative and innovative thought (Empson & Morris, 1998; Maister, 1997).
Economic Structure (Maister: Profitability) – is designed to ensure the firm’s
ability to be profitable. Profitability is the difference between salaries paid and fees
charged for hours worked (Empson, 1999b). The better the firm can leverage its
staff the greater the firm’s financial performance and therefore its success (Empson,
1999b; Empson & Morris, 1998; Lebihan, 2004b; Maister, 1997). Maister (1997)
explains that success is measured in terms of profitability. The firm’s profitability is
often a result of the firm’s ability to leverage its junior staff at higher fees than would
normally be the case. Clients pay the increased fees because they are sold on the
concept that the junior staff engaged on the client’s project are utilising the
knowledge of senior staff either disseminated in codified form or transferred via a
form of mentoring.
Market for Professional Workforce (Maister: People Market) – This market is
driven by the recruits’ desire to belong to an organisation that provides a sufficient
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flow of interesting and lucrative client work and reasonable prospects for
advancement (Empson, 1999b; Empson & Morris, 1998; Maister, 1997).
Professional Service Firms need to achieve a standard of employee satisfaction to
compete in this market by managing incentives for motivation and retention of its
staff.
Market for Professional Services (Maister: Client Market) – is the demand for
services offered by the Professional Service Firm. Most clients are sophisticated
enough to determine the level of customisation they require. The client will only
employ a firm if they believe it has sufficient numbers of staff of high calibre to
deliver the appropriate level of professional service (Empson, 1999b; Empson &
Morris, 1998; Maister, 1997). The firm needs to manage and generate demand for its
services by assuming the correct practice type along the Maister Continuum.
7.1.3 Argument for the Knowledge in Professional Service Firms Model
A Professional Service Firm’s ability to effectively exploit its Knowledge Base is
essential to an effective Knowledge Strategy. The content and form of the firm’s
Knowledge Base influences a Professional Service Firm’s ability to compete in the
Market for Professional Workforce and the Market for Professional Services.
Maister (1997) discusses the importance of a Professional Service Firm’s ability to
exploit the knowledge and skills of individuals within the firm to achieve the firm’s
three goals of Satisfaction, Service, and Success. Empson and Morris (Empson,
1999b; 1998) have extended Maister’s concept of leverage to include the
Professional Service Firm’s Knowledge Base. Empson (1999b) quotes Maister
(1997) as stating that Professional Service Firms must achieve a balance between
four fluctuating factors: (1) Organisational Structure, (2) Economic Structure, (3)
The Market for Professional Staff, and (4) The Market for Professional Services.
This balance is essential to the performance of the Professional Service Firm.
Empson (1999b) argues
“If staff members leave or are promoted, the organisational and
economic structure of the firm is inevitably affected. To mitigate this, the
Professional Service Firm must recruit and train new staff to an
appropriate standard so that those moving up or out can be replaced. If
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the Professional Service Firm does not compete successfully in the
market for professional staff, it risks losing its ability to compete
effectively in the market for professional services.”
This statement by Empson suggests that an affect on any one of the Knowledge in
Professional Service Firm model constructs will impact the remaining model
constructs. The example provided by Empson above will be further illustrated using
the up-or-out model of a traditional Professional Service Firm as described by
Maister (1997). Many traditional firms employ a hierarchy of consulting staff
including Partners (Finders), Managers/Senior Consultants (Minders), and Junior
Consultants (Grinders) (Maister, 1997). When a consultant at any step of the
hierarchical ladder is promoted or leaves the firm this impacts all the constructs in
the following way. The Market for Professional Services is impacted because the
firm requires the correct number of staff of sufficient calibre to deliver services to
clients. In order for the firm’s Organisational Structure to be maintained the firm
will need to consider whether to recruit someone from outside the organisation or to
promote employees to different levels to fill gaps in the organisational hierarchy.
The firm will be forced to compete in the Market for Professional Workforce in order
to recruit staff of sufficient calibre to either replace the person that has left the firm
or fill the positions now left vacant by employees that have been promoted. This will
impact the firm’s Economic Structure because the firm will need to consider the
salaries to be offered to employees promoted and recruited as well as consider the
fees to charge clients for the expertise of those promoted and recruited.
Finally the Knowledge Base will be impacted in several ways. Firstly, the gap in
knowledge created by the individual leaving the firm will need to be identified. The
form of the knowledge (i.e. tacit or explicit) will need to be ascertained. The
knowledge may have been stored within the individual that left the firm or it may
reside in a codified form in the firm’s Knowledge Repository. The firm will also
need to consider which members of the firm possess the knowledge required to fill
the gap in the firm’s Knowledge Base or are capable of utilising the knowledge
stored within the firm’s Knowledge Repository. Alternatively the firm may need to
consider recruiting from outside the firm to find the capabilities they require.
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7.1.4 Interpretation of Knowledge in Professional Service Firms Model
Constructs
The researcher describes in detail the relationships between each of the five
constructs of the Knowledge in Professional Service Firms model.
Knowledge Base Market for Professional Workforce
Junior professionals accept relatively low salaries though the salaries are still
considerably higher than those available in alternative graduate-entry occupations.
Empson (1999b) argues
“How this knowledge is created, articulated, disseminated and renewed
has implications for the recruitment and training of staff…”
The content and form of the organisation’s Knowledge Base determines the
Professional Service Firm’s ability to compete within the Market for Professional
Workforce. The firm’s ability to compete in the Market for Professional Services
has much influence on the firm’s ability to compete within the Market for
Professional Workforce. If the firm is effective in winning interesting and lucrative
projects, graduates and experienced consultants will be more likely to join the firm
rather than another.
Professionals will only join and remain with a Professional Service Firm if they can
see a sufficient flow of interesting and lucrative client work and reasonable prospects
for advancement (Empson, 1999b; Empson & Morris, 1998; Maister, 1997). Clients
will only employ a Professional Service Firm if they believe it has a sufficient
number of staff of sufficiently high calibre to deliver the appropriate level of
professional service. This relationship between the two external markets is mediated
by the firm’s Knowledge Base. The content of the Knowledge Base will determine
what knowledge a candidate will require to join the firm. The firm may either look
for someone with the background to leverage or exploit the knowledge stored within
the firm’s Knowledge Base or the firm will be looking for a candidate with the
knowledge and expertise to fill a gap in the organisation’s Knowledge Base.
The Knowledge Base’s input takes the form of the expertise residing in the firm and
its output is in the form of products or services generated to solve client problems
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(Grant, 1996). The knowledge and expertise may take a codified or an uncodified
form, dictating the manner in which the firm delivers services and the firm’s staff
requirements. The firm will more likely market itself to attract junior staff if the
knowledge base is in a codified form and the firm has a reputation for successfully
leveraging its codified Knowledge Base, offering procedural style services.
However, if the firm Knowledge Base is largely uncodified then it will market itself
to attract senior more experienced staff that are more interested in belonging to a
firm that values the consultant’s ability to exploit their knowledge and expertise
rather than a codified knowledge base (Empson & Morris, 1998; Maister, 1997).
The content of the Knowledge Base will also determine the staff the firm will attract.
For example, if a firm is considered the leader in Information Technology consulting,
top Information Technology graduates are more likely to apply for work at that firm.
To become a leader the firm must constantly update and renew knowledge within
their Knowledge Base to remain leaders within their industry.
Knowledge Base Professional Service Firm Organisational Structure
The Knowledge Base influences the Organisational Structure by determining
whether the Professional Service Firm adopts a strict hierarchical structure or a
flatter Organisational Structure. Empson and Morris (1998) argue that Professional
Service Firms are more likely to adopt a strict hierarchical structure if the Knowledge
Base takes the form of codified knowledge; on the other hand the Professional
Service Firm is more likely to adopt a flat structure to encourage knowledge sharing
if the Knowledge Base consists primarily of tacit knowledge stored within its people
(Doyle & Adeline, 1998; Empson & Morris, 1998; Maister, 1997; Robertson et al.,
2000).
Empson (1998) argues that a Professional Service Firm wishing to grow large must
learn to codify the esoteric and tacit knowledge accumulated within experienced staff
and disseminate this throughout its Organisational Structure. Codification relaxes
some of the more stringent constraints of the apprenticeship model of Knowledge
Transfer. Increasing the number of juniors supervised by a senior professional
increases the degree of leverage and, therefore, profitability. Codification also
reduces the risk of losing valuable knowledge when someone leaves the firm. The
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issue “Management Consulting Firms suffer from the loss of intellectual property
that occurs when consultants leave the firm” ranked 18th of the 72 Super Issues
identified during the Synthesis Process of the Issues Delphi Study. This indicates
that knowledge gaps created when staff leave the firm are a real concern for
Management Consulting Firms.
However, knowledge once codified loses its value because it is demystified and more
portable and therefore more likely to fall into the hands of a competitor when people
leave the firm (Empson, 1999b).
Knowledge Base Market for Professional Services
The form and content of the Knowledge Base impacts the firm’s ability to compete
in the Market for Professional Services by determining which professional services
the Professional Service Firm may provide. The Professional Service Firm will
attempt to leverage the knowledge stored either through developed methods and
processes; and/or via tacit knowledge, skills and expertise of its people (Empson,
1999b; Empson & Morris, 1998; Maister, 1997). Evidence gathered from the
Accenture Case Study indicated that demand and opportunities in the market will
influence the knowledge captured within the Knowledge Base for potential leverage
on future projects. Accenture engage a special team to conduct research to identify
potential market trends for the firm to target in the future. This information is passed
along to project staff so they can isolate the relevant knowledge to capture and store
in the firm’s Knowledge Repository.
The content of the Knowledge Base will dictate the products and services the firm
can offer to clients, e.g.: if the firm’s expertise is in Enterprise Resource Planning
implementation then the firm will target clients seeking this type of product or
service. The form of the Knowledge Base will dictate the firm’s approach to
delivering the service and the level of complexity that the firm can cater to, e.g. if the
firm’s Knowledge Base takes the form of codified knowledge then the firm can
deliver programmatic, low risk, low fee solutions by leveraging many junior staff.
However, if the Knowledge Base is in an uncodified form with the majority of the
firm’s knowledge residing within the expertise of its people, then the firm can deal
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with complex, high risk, highly innovative and novel solutions by exploiting the
knowledge and expertise of its senior staff (Empson & Morris, 1998; Maister, 1997).
Knowledge Base Professional Service Firm Economic Structure
The form and content of the Knowledge Base has a great impact upon the
Professional Service Firm’s Economic Structure. The ratio of junior to senior staff
determines the fees to be charged as does the value of the knowledge to be leveraged.
Professional Service Firms will attempt to leverage more junior staff to increase the
margin between salaries paid and fees charged in order to improve profitability. The
Professional Service Firm’s economic structure also influences the Knowledge Base
by determining which knowledge has the greatest earning potential.
Empson (1998) argues that the ability for Professional Service Firms to transform the
esoteric and tacit knowledge accumulated within experienced staff to a codified form
enables this knowledge to be expressed in terms of procedures or method. This
esoteric knowledge can then be applied to a wide range of client problems, thus
increasing the potential for leverage. Codification relaxes some of the more stringent
constraints of the apprenticeship model of Knowledge Transfer. Increasing the
number of juniors supervised by a senior professional increases the degree of
leverage and, therefore, profitability. However, knowledge once transformed to a
codified form loses its value because it is demystified and more portable and
therefore more likely to fall in the hands of a competitor when people leave the firm.
Furthermore the content within the Knowledge Base also impacts the firm’s
profitability. The value of knowledge is not only determined by the form it is in but
also the demand for a firm’s knowledge content. If the firm has knowledge content
that is unique to its firm, i.e.: expertise and know-how of its people or codified
knowledge that is esoteric in nature and in high demand, this knowledge would be
considered extremely valuable and Professional Service Firms could charge higher
fees for it. However, if the content of the firm’s Knowledge Base is common to
many firms within the industry then it is likely that this knowledge will be in less
demand and will yield a much lesser return for the firm. As discussed earlier
Accenture engage a special team to conduct research to identify potential markets
trends for the firm target in the future. In addition, the team will identify markets
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that possess the most potential for leveraging the knowledge and expertise of its
people for the highest fees.
Market for Professional Workforce Professional Service Firm
Organisational Structure
The firm’s Organisational Structure impacts the firm’s ability to compete in the
Market for Professional Workforce. According to Empson and Morris (1998)
Professional Service Firms will typically adopt either a flat or a hierarchical
structure. An effective Organisational Structure requires the firm to have the correct
mix of junior, middle and senior level staff. One of the key factors that will attract
people to a Professional Service Firm is the opportunity for advancement. The
effective functioning of a Professional Service Firm’s Organisational Structure
presupposes an effective up-or-out system of promotion, retention and attrition to
maintain the correct mix of staff. The firm’s ability to maintain the correct mix of
staff impacts its ability to compete with other Professional Service Firms in the
Market for Professional Workforce.
The firm’s Organisational Structure will influence the firm’s policy on training,
employee promotion, as well as organisational culture and the firm’s ability to share
and disseminate knowledge, all of which are factors that attract staff to join the firm
(Empson, 1999b; Maister, 1997). Some people are attracted to hierarchical
structures and formal training, which fuel aspirations of climbing to the top, whilst
others are attracted to flatter more open structure where they have an opportunity to
learn and grow via the mentoring of experienced and talented senior staff. A flatter
structure promotes an open organisational culture, making the firm feel more like a
family than a firm, promoting knowledge sharing amongst as many staff as possible.
(Doyle & Adeline, 1998; Empson & Morris, 1998; Maister, 1997; Robertson et al.,
2000). However, a hierarchical structure promotes a bureaucratic organisational
culture with strict chains of command and channels of communication. A deep
vertical hierarchical structure is designed to control the flow of information and
knowledge within the organisation, limiting access to only those that require it
(Empson & Morris, 1998; Maister, 1997).
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Professional Service Firm Organisational Structure Market for Professional
Services
The firm’s Organisational Structure impacts the firm’s ability to compete in the
Market for Professional Services. Empson (1999b) argues that clients will only
engage a Professional Service Firm if they believe it has a sufficient number of staff
of sufficiently high calibre to deliver the appropriate level of professional service.
This also includes staff at the appropriate level. The client expects that a firm
possesses the appropriate number of junior, middle and senior staff to deliver
appropriate quality services at an appropriate price.
It is important to note that factors such as training, promotion policy, the
management hierarchy all impact upon the firm’s organisational culture.
Organisational culture is important because it influences the behaviour of the firm’s
staff when dealing with clients. If the culture is strong it will instill a sense of loyalty
to the firm and strong belief in the products and services that the firm delivers to its
clients. This sense of loyalty will be implicitly and explicitly communicated to
clients.
Market for Professional Services Professional Service Firm Economic
Structure
According to Maister (1997) the principal determinant of success for a Professional
Service Firm is profitability; the firm must strike the right balance between fees
charged and salaries paid to its staff. It is essential for a Professional Service Firm to
achieve the correct mix of staff to maximise the firm’s profits. A Professional
Service Firm can command higher fees for more senior staff but at the same time can
leverage more juniors to deliver the same services and therefore maximise its profits.
Empson (1999b) argues
“Clients will pay high fees because they accept juniors are leveraging
the expertise of senior professionals and because they cannot afford to
pay for large amounts of senior professionals' time.”
The relationship between the fees charged and salaries paid is a key determinant of
the firm’s ability to compete in the Market for Professional Services. For a
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Professional Service Firm to compete with other firms the fee structure is important
and can signify many different things to the client. If the fees the firm charge are too
high then the firm is likely to be undercut by a competitor with a similarly good
reputation, if the fees the firm charge are too low, then the firm’s credibility and
quality may come into question from the client’s perspective. Empson (1998)
suggests that fee rates and salary rates are determined by an individual's position
within the organisational hierarchy.
Professional Service Firm Economic Structure Market for Professional
Workforce
As suggested earlier Maister (1997) argues that profitability is the principal
determinant for success in Professional Service Firms. The inability of the firm to
attract and retain the correct ratio of junior to senior staff can negatively impact the
firm’s profitability. Without the correct ratio the firm may be forced, for example, to
engage more senior staff for junior work. As with the firm’s Organisational
Structure the salaries paid impact the firm’s ability to compete in the Market for
Professional Workforce.
Salaries are a delicate balance between recruiting the right people and trying to
maximise profits for the firm. Empson (1998) argues that
“salaries are by far the biggest cost in a Professional Service Firm.
Plant and equipment are relatively limited and most project-related
expenses are passed on to the client. … But clearly the economic
viability of all Professional Service Firms depends on both maximising
hours billed and maximising the margin between fee rates charged to
clients and staff salaries.”
Empson’s statement demonstrates the importance of a sound Economic Structure to
attract the right type of people. The firm must attract the right people at the right
price or otherwise risk charging fees that are uncompetitive and subsequently losing
competitive advantage.
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7.1.5 Potential Value of the Knowledge in Professional Service Firms Model
The value of the model derives from its potential for diagnosing the effectiveness of
an organisation’s Knowledge Strategy. Empson and Morris (1998) emphasise the
importance of a balance between all four constructs, mediated by the firm’s
Knowledge Base. If through analysis of the organisation it is discovered that the four
constructs of the model are out of balance, this is a good indication that the
organisation’s Knowledge Strategy requires evaluation and modification to bring the
four constructs into balance.
The researcher sees this model as having application to small, medium and large
organisations. Empson and Morris (1998) argue that a key determinant of a firm’s
Organisational Structure is based upon the form and content of the Knowledge Base
rather than the firm’s size. That is
“the fact that knowledge remains primarily uncodified and unleveraged
is not simply a reflection of the size of the firm but is a fundamental
characteristic of how members of the firm perceive the nature of the
service offering” (Empson and Morris, 1998).
In this scenario staff are likely to perceive service offerings to be more customisable
in nature, requiring creative thinking and innovative solutions, as the firm is dealing
with problems it has not faced before.
Empson (1999) further suggests that the firm’s Economic Structure applies equally to
small firms as it does large firms. All firms with the intention of expanding and
maintaining their current level of service provision and competitiveness, regardless of
size, need to ask themselves a series of questions in order to survive, particular when
developing a knowledge strategy. For instance, should staff codify and/or document
their experiences and their work for future reference, or does the firm rely solely on
the tacit knowledge and expertise of the staff? How will the firm compete in the
Market for Professional Workforce (staff market) if someone leaves the firm or the
firm is considering expansion? How will the firm compete with its competitors in the
Market for Professional Services (client market) in terms of winning projects? How
will the firm hierarchy be organised, will everyone be treated as equals or will there
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be a deep management structure? What salaries will the firm pay its staff and what
fees will the firm use to charge its clients?
All firms regardless of size will ask themselves these questions. Even sole
proprietors will ask most of these questions, perhaps with the exception of recruiting,
and Organisational Structure, unless they are considering an alliance, partnership or
expanding their firm. This suggests that the Knowledge in Professional Service
Firms model applies to small, medium and large firms with the exception of sole
proprietors.
However, the researchers have identified that the model’s application to large firms
may be limited to practice areas or organisational divisions, due to the size, diversity
and complexity of large firms.
7.2 Model Variants
The research team at the Information Systems Management Research Group
conducted a focus group aimed at conceptually analysing the Knowledge in
Professional Service Firm model from which several variants of the model were
generated. One of the additional aims of the focus group was to explore key parallels
between Management Consulting Firms and University Research Centres in an effort
to broaden the model’s applicability to a larger variety of Knowledge-Intensive
Firms.
The half-day focus group consisted of four senior academic staff of the Faculty of
Information Technology, a research assistant and the researcher. The focus group
began with a discussion of the aims, then a presentation of the researcher’s
interpretation of the constructs and relationships between the model’s constructs.
The focus group was then turned over to an open forum of discussion and
brainstorming to interpret the model. A detailed summary of the Focus Group is
provided as Appendix F.
It was felt by the majority of the group that the Economic Structure (difference
between salaries paid and fees charged) was not an important consideration for
University Research Centres. This perception resulted in variant A, depicted in
figure 7.5, a model with only four constructs, excluding the Economic Structure
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construct because it was considered by the group to be redundant. The Knowledge
Base is important in its own right because of the impact that it has on the internal and
external environments of the Professional Service Firm. However, the group also
felt that the diagram describes a total Knowledge Strategy for a Professional Service
Firm and, as such, a major component of a successful Knowledge Strategy is
Knowledge Management so this construct was added, depicted as variant B in figure
7.5.
However, Knowledge Management can be considered more complex than Empson
and Morris suggest. Therefore the researcher added a Knowledge Management
construct to encapsulate the Knowledge Base (depicted in Figure 7.5, Variant D).
The Knowledge Base itself cannot ensure the effective leverage or exploitation of the
firm’s Knowledge. Therefore it was important to consider Knowledge Management
as a separate entity to the organisation’s Knowledge Base, both of which are driven
by a firm’s Knowledge Strategy.
A.
OrganisationalStructure
(how we manage)
KnowledgeBase
(what we have)
Market forProfessionalWorkforce
(who we want)
Markets forPSF’s Services(what we do)
The Role of Knowledge within PSFs
Adapted from Maister (1997) and Morris & Empson (1998)
Internal Environment
External Environment
C.
Market forProfessionalWorkforce
(who we want)
Markets forPSF’s Services(what we do)
KnowledgeBase
(what we have)
Knowledge Management
(how we leverage)
Firm Management(how we manage)
The Role of Knowledge within PSFs
Adapted from Maister (1997) and Morris & Empson (1998)
External Environment
Internal Environment
B.
Market forProfessionalWorkforce
(who we want)
Markets forPSF’s Services(what we do)
KnowledgeBase
(what we have)
Knowledge Management
(how we leverage)
OrganisationalStructure
(how we manage)
The Role of Knowledge within PSFs
Adapted from Maister (1997) and Morris & Empson (1998)
External Environment
Internal Environment
D.
Market forProfessionalWorkforce
(who we want)
Markets forPSF’s Services(what we do)
EconomicStructure
(how we profit)
OrganisationalStructure
(how we manage)
The Role of Knowledge within PSFs
Adapted from Maister (1997) and Morris & Empson (1998)
External Environment
Internal Environment
Knowledge Base
Knowledge
Management(How we leverage)(How we leverage)
Figure 7.5 – Knowledge in Professional Service Firm Model Variants
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Ruggles (1998) provides a definition that appears to capture the essence of what
Empson and Morris describe as Knowledge Management.
“It is an approach to adding or creating value by more actively
leveraging the know-how; experience; and judgement resident within,
and in many cases, outside of an organisation” (Ruggles, 1998).
An appropriate Knowledge Strategy will impact the firm’s ability to effectively
leverage Knowledge Assets which is best described as a Knowledge Strategy for
Knowledge-Intensive Organisations (Empson, 1999b).
Variant C is an adapted version of the Knowledge in Professional Service Firm
model. The reason for the modification of the original model is because Empson and
Morris’s (1998) model is particular to Professional Service Firms. The researcher
adapted the model to increase its application to a larger variety of Knowledge-
Intensive Organisations such as University Research Centres. Therefore, the
researcher extended the notion of Organisational Structure to incorporate total Firm
Management.
Firm Management incorporates Empson and Morris’s (1998) notion of
Organisational and Economic Structure in the one construct. It also incorporates
Maister’s (1997) perception of the Professional Service Firm’s method of managing
the firm, which impacts the firm’s approach to training, employee promotion, and
organisational culture. The most influential factor for determining the firm’s
management approach is the practice type adopted by the Professional Service Firm
i.e.: Efficiency, Experience, or Expertise. The practice type adopted will affect the
firm’s ability to exploit its Knowledge Base and the manner in which it manages the
firm.
Both Firm Management and Knowledge Management are influenced by the
organisation’s Knowledge Base. The content and form of the Knowledge Base has
implications for the recruitment and training of staff, as well as the definition and
delivery of services to clients (Empson, 1999b). Alvesson (2004) suggests that
Human Resource Management and Knowledge Management are closely related and
cannot be neatly separated. Many of the elements of the Firm Management
Construct, Organisational Structure, fees charged, salaries, training and a
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management of organisational culture, may all fall under the banner of Human
Resource Management. A balance needs to be achieved between Firm Management
and Knowledge Management constructs, in much the same way that Knowledge
Strategy is most effective when it equals Corporate Strategy (Zack, 1999). The
firm’s organisational culture needs to promote knowledge sharing by encouraging
staff to openly communicate with their peers whilst the Knowledge Management
strategy needs to provide the technology and logical grouping and structures to
facilitate knowledge sharing. The firm needs to be able to take stock of its codified
and uncodified knowledge and then be able to leverage it with the correct mix of
junior, middle and senior staff.
Whilst Maister (1997) emphasises the leverage of junior, middle and senior staff as
an integral strategy to achieve firm profitability, Empson and Morris (1998)
emphasise the importance of leveraging Knowledge Assets to achieve the same aim.
“A Professional Service Firm wishing to grow large must learn to codify
the esoteric and tacit knowledge accumulated within experienced staff
and disseminate this throughout its organisational structure. If this
knowledge can be expressed in terms of established procedures and
applied to a wide range of client problems, the potential for leverage
increases. Codification relaxes some of the more stringent constraints of
the apprenticeship model of Knowledge Transfer. Increasing the number
of juniors supervised by a senior professional increases the degree of
leverage and, therefore, profitability.”
This relationship can be best described in terms of Maister’s Continuum. Firms
toward the efficiency end of the spectrum are likely to leverage codified knowledge
as well as junior staff that are capable of using this codified knowledge. However,
firms closer toward the expertise end of the spectrum tend to exploit uncodified
knowledge. Uncodified knowledge is inherently tacit and is better untilised by more
senior and experienced staff.
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Knowledge Management and Firm Management work hand in hand but this
relationship is mediated by the organisation’s Knowledge Base, depicted in Figure
7.6. The need to leverage the correct ratio of junior to senior staff on projects is
linked to the firm’s need to also leverage the Knowledge Base. Knowledge
Management assists in identifying the staff at appropriate levels with the requisite
expertise for leverage in the project; it also assists to identify the codified knowledge,
which may take the form of methods or procedures, to leverage on the project as
well. Whilst the firm’s Economic Structure will determine what fees will be charged
for the service being delivered, the firm’s Knowledge Management will determine
the market value of the knowledge to be leveraged and fees the firm can charge the
client for its use. With this in mind, the firm will attempt to achieve a lucrative
margin between the salaries paid to project staff and fees charged for the services
provided.
Furthermore, Knowledge Management will determine what knowledge needs to be
captured during the project and offers the process for doing so. Knowledge sharing
is as much a cultural issue as it is a management issue. The knowledge sharing
culture needs to be promoted from the top of the organisation down to the knowledge
workers that possess the knowledge the organisation wishes staff to share.
Davenport and Prusak (1998) discuss the notion of lounge areas or common rooms
KNOWLEDGE MANAGEMENT
Knowledge Sharing Culture
Leverage of Codified/ Uncodified Knowledge
Fees for provision of
Knowledge Assets
Knowledge Dissemination and Training
Communities of Practice
and Special Interest Groups
FIRM MANAGEMENT
Organisational Culture Leverage of Staff
Fees for provision of Service Organisational Training Organisational Structure (Flat/Hierarchical)
Kn ow l e d g e
B a s e
Figure 7.6 – Comparison of Knowledge Management and Firm Management
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where staff are encouraged to spend a specified amount of time per day talking and
sharing knowledge. It is felt by these organisations that this is the best way to
transfer tacit knowledge amongst its employees. More importantly, these
conferences in an informal setting also allow staff to establish informal networks.
This enables firm staff to establish a relationship with other firm staff that possess
the knowledge they may require at a later date. During these exchanges they also
discover who else within the organisation possess the knowledge they require.
However, the researcher concluded that profit is one of the principal driving forces
for Knowledge-Intensive Firms. Knowledge-Intensive Firms are motivated to
develop a Knowledge Strategy because of the perceived high value of knowledge
and its profit generating potential. As the majority of Knowledge-Intensive Firms
would attempt to balance the salaries paid for the talents of their staff with the fees
they could charge clients. Even, the success of a University Research Centre can be
measured on the centre’s ability to win grants, publish articles in top tier journals and
conferences, and to produce postgraduate research degree completions (Geuna &
Martin, 2203), all of which are used as a measure of success for University Research
Centres, ultimately translating into funding from government and industry
partnerships. The aim may not be to attain a profit but the ability to fund present and
future projects is certainly an aim for a University Research Centre. Therefore, the
Economic Structure of the organisation is a key consideration for the Knowledge
Strategy of a University Research Centre. This resulted in separating the Economic
Structure construct from the Firm Management construct and as Empson and
Morris’s description of Organisational Structure closely mirror’s the description of
the Firm Management construct it was renamed Organisational Structure as it was in
the original model. This more accurately reflects the complementary relationship
between Economic Structure and Organisational Structure. Empson (1999b)
describes Economic Structure and Organisational Structure as the opposite sides of
the same coin. Salaries are the biggest cost for a Professional Service Firm as plant
and equipment are fairly limited and most project related expenses are passed on to
the client. Therefore, Professional Service Firms attempt to maximise the margin
between salaries paid and fees charged. Fee rates and salary rates are determined by
an individual's position within the organisational hierarchy. Although salaries are the
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biggest cost for Professional Service Firms, staff are also the primary means of
production (Empson, 1999b).
In addition, Empson and Morris describe their model as a Knowledge Management
Strategy. However, Knowledge Management can be considered more complex than
Empson and Morris suggest. Therefore the researcher incorporated a Knowledge
Management construct in the Knowledge in Professional Service Firm model to
encapsulate the Knowledge Base (depicted in Figure 7.5, Variant D). The
Knowledge Base itself cannot ensure the effective leverage or exploitation of the
firm’s Knowledge. Therefore it was important to consider Knowledge Management
as a separate entity to the organisation’s Knowledge Base, both of which are driven
by a firm’s Knowledge Strategy.
Knowledge Management Organisation Knowledge Base
The capturing and storage of esoteric knowledge is not enough, the Knowledge Base
must also be managed for it to be taken full advantage of. Davenport and Prusak
(2000) point out that for knowledge to provide sustainable competitive advantage
organisations must “know what they know” and where to access it. If the knowledge
is in a codified form then the firm must institute sophisticated technology to make
the knowledge required easy to find. For uncodified knowledge residing in the
expertise of its staff it is important for members of the firm to know who knows
what. Davenport and Prusak (2000) argue that tacit knowledge is more valuable and
extremely difficult to codify. The reason that it is so difficult to codify is because it
is often difficult to articulate, capture and store (in part the reason that it is
considered so valuable). Often the best way to capture tacit knowledge is through a
process of mentoring or apprenticeship of junior staff. The idea is that senior staff
will pass on their tacit knowledge and experience to the more junior staff with the
hope that when the senior member leaves the firm, his/her knowledge stays with the
firm, residing in the memory of the junior staff. As discussed earlier, evidence from
the Issues Delphi Study indicated the loss of knowledge that occurs when someone
leaves the firm is an important issue for Australian Management Consulting Firms.
The more difficult task is encouraging knowledge sharing amongst staff.
“Knowledge is Power” is the saying and this idea encourages many staff to hoard
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knowledge in an attempt to retain their power and influence within the firm. As
more firms understand the importance of a knowledge sharing culture, it is in their
best interests to encourage and promote this type of culture within their own
organisation. There are obvious benefits to knowledge sharing, including
improvements in the efficiency and productivity of firm staff. Davenport and Prusak
(2000) argue the best way to promote a knowledge sharing culture is to establish
efficient knowledge markets within the organisation that discourage reinvention of
existing knowledge in other areas of the organisation, and encourage collaboration of
experts within the organisation. The Accenture Case Study indicated that Accenture
has attempted to facilitate this approach by establishing Communities of Practice,
Special Interest Groups and Expert Networks to encourage the sharing of knowledge
across the entire organisation.
There are three principal players in the knowledge market: the buyers, the sellers and
the knowledge brokers. For the market to operate efficiently the seller or the broker
must see a potential benefit from the time and effort they place upon sharing their
personal knowledge (Davenport & Prusak, 2000). Davenport and Prusak (2000)
identify three primary motivations for sharing of knowledge. The first is reciprocity,
the belief that by sharing esoteric knowledge the favour will be returned. The second
is repute, the belief that a reputation of being knowledgeable and willing to share
ones knowledge will increase the seller’s kudos within the firm and will encourage
others to share their knowledge with the seller because they trust that the seller will
return the favour. The final motivation is altruism, the sharing of knowledge for the
mere purpose of assisting someone in need.
Staff of Accenture attributed two primary factors to knowledge sharing and staff
willingness to contribute to the firm’s Knowledge Base. The first most tangible
factor is that contribution to the firm’s codified Knowledge Base (knowledge
repository) is monitored by a Knowledge Champion on every engagement. The
Knowledge Champion is responsible for identifying the material appropriate for
storage in the firm’s Knowledge Base. In addition, it is every Accenture employee’s
responsibility to utilise and contribute to the firm’s Knowledge Base as much as
possible. Accenture attempts to discourage the reinvention of knowledge that may
already exist in the firm’s Knowledge Base and encourage the reuse of organisational
knowledge. An Accenture employee’s use and contribution to the Knowledge Base
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contributes to their overall score in each individual’s annual performance review.
This factor does not relate to one of Davenport and Prusak’s (2000) three motivators.
Accenture’s second factor is an organisation wide knowledge sharing culture that is
based on the premise that the good of the firm comes first. Accenture employees
believe that sharing knowledge is an integral component of the firm’s success. This
in a sense is motivated by altruism, Davenport and Prusak’s third motivator.
Accenture staff also acknowledge that knowledge is shared in the hope that the
favour would be returned in future, relating to Davenport and Prusak’s (2000) notion
of reciprocity.
Knowledge Management needs to put mechanisms in place that promote knowledge
sharing within the firm. These mechanisms include: (i) introducing technology that
enables staff, regardless of geographical location, to share and exchange knowledge
and ideas, (2) the establishment of Communities of Practice that allow staff with like
interests to share knowledge, and (3) establishing a value and belief system that
values capture, sharing, and reuse of knowledge, promoted through incentives and
recognition for important contribution
Knowledge Management External Markets
Knowledge Management is vital to a Professional Service Firm’s ability to compete
in the Markets for Professional Workforce and Professional Services. Without a
proper Knowledge Management approach the value of an organisation’s Knowledge
Base is limited. Firms must have a process for determining which knowledge is
considered valuable, how to measure the quality of the content stored, what form
should the Knowledge Base take, codified or uncodified, how do we promote a
culture of knowledge sharing, how do we facilitate it, and how do we disseminate
organisational knowledge? All these questions need to be addressed for firms to
possess an effective Knowledge Strategy. The mere presence of a Knowledge Base
is not enough for a firm to achieve success in either market; it must be administered
and managed.
Knowledge Management assists with identifying the expertise required to leverage
on particular projects by providing the processes and tools necessary for matching
the correct talents to the correct problem, to ultimately achieve the delivery of high
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quality products and services, and at the same time achieve client satisfaction.
Knowledge Management also assists to identify what expertise need to be sourced
from the workforce and assists in retaining and motivating staff by enabling
knowledge workers to gain access to the knowledge they require when they need it.
Knowledge Management provides the tools that staff require to the gain value out of
the organisation’s Knowledge Base.
Knowledge Management/Knowledge Base Economic Structure
The firm’s ability to manage its Knowledge Base has a substantial impact on the
firm’s profitability, as does the content and form of the Knowledge Base. The
existence of a Knowledge Base on its own is not sufficient for firms to effectively
leverage Knowledge Assets, nor is Knowledge Management on its own sufficient.
The capture, storage and dissemination of organisational knowledge is required to be
managed if it is to be at all useful. Knowledge Management is the method that firms
adopt so that they can place the people with the correct skills and abilities on the
applicable projects; it provides employees with the access to the Knowledge they
require to do their job whether that is a Knowledge Repository, or an individual, or a
group of individuals that hold the knowledge that an employee requires.
The Professional Service Firm’s Economic Structure also influences the Knowledge
Base by determining which knowledge is captured and then leveraged on future
projects. Often firms will identify knowledge which has the potential to be leveraged
on later engagements by recognising what knowledge has been consistently
leveraged on past projects. This process of identifying potentially lucrative
knowledge has continued to improve the firm’s ability to compete in the Market for
Professional Services or by conducting market research to anticipate trends or
potential hotspots. The process of identifying potentially lucrative Knowledge
Assets falls under the Knowledge Management umbrella. The extent to which firms
invest in knowledge will be determined firstly by what the firm can afford and how
worthwhile the ability to leveraging this knowledge will be. Firms will often
conduct a cost/benefit analysis to determine how much effort and expense they are
willing to spend on Knowledge Management.
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Empson (1998) argues that the ability for Professional Service Firms to transform the
esoteric and tacit knowledge accumulated within experienced staff to a codified form
enables this knowledge to be expressed in terms of procedures or method. This
esoteric knowledge can then be applied to a wide range of client problems, thus
increasing the potential for leverage. Codification allows organisational knowledge
to be more readily disseminated to junior level staff. Thus, increasing the number of
juniors supervised by senior professionals increases the degree of leverage and,
therefore, profitability. However, knowledge once converted to a codified form loses
its value because it is demystified and more portable and therefore more likely to fall
into the hands of a competitor when people leave the firm.
7.3 Chapter Summary
This chapter presents the findings of a conceptual analysis of the Knowledge in
Professional Services model, developed by Empson and Morris (1998), which
describes the role of knowledge in Professional Service Firms. The chapter presents
the researcher’s interpretation of the model constructs and the relationships between
each of the constructs. In addition, the attempt to develop several model variants is
explored and an argument for the resulting final model variant which incorporates a
new construct, Knowledge Management described.
The next chapter presents a comparative analysis of the findings from the four
separate sub-studies. The chapter synthesises the findings from all of the sub-
studies.
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8 Comparative Analysis and Findings
The objective of this chapter is to perform a comparative analysis of the findings
across all four separate sub-studies. The chapter discusses the relationships identified
between the Knowledge in Professional Service Firms model, issues derived from
the Context Case Study, Issues Delphi Study, and the Accenture Case Study.
The chapter also compares the findings of the Issues Delphi Study, Context Case
Study and Accenture Case Study to identify similarities and differences among the
issues discovered. Emphasis is placed upon the client-consultant relationship and
Knowledge Management in the context of private sector consulting.
8.1 Relationship of Issues Delphi Study Evidence with Knowledge
in Professional Service Firms Model
Following are reported results from comparing the 72 Super Issues from the Issues
Delphi Study (Chapter 6), with the six constructs of the Knowledge in Professional
Service Firm model (Chapter 7).
Market forProfessionalWorkforce
(who we want)
Markets forPSF’s Services(what we do)
EconomicStructure
(how we finance)
OrganisationalStructure
(how we manage)
Figure 8.1 – Knowledge in Professional Service Firms Model
Adapted from Maister (1997) and Morris & Empson (1998)
External Environment
Internal Environment
Knowledge Base
Knowledge
Management(How we leverage)(How we leverage)
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The Knowledge in Professional Service Firms model (Figure 8.1) was developed
subsequent to analysis of the Management Consulting issues identified in the Context
Case Study and Issues Delphi Study. The researcher sought to test the model by
mapping the derived Super Issues onto the constructs of the model. The six
constructs of the model are: Economic Structure, Organisational Structure, Market
for Professional Workforce, Market for Professional Services, Knowledge Base, and
Knowledge Management.
Table 8.1 shows how the Super Issues derived from the Issues Delphi Study map
onto the constructs of the Knowledge in Professional Service Firms model.
Model Constructs Total
Economic Structure 8
Organisational Structure 3
Market for Professional Workforce 3
Market for Professional Services 23
Knowledge Base 8
Knowledge Management 7
No Map 20
Total 72
Table 8.1 Number of Issues that Map onto Each of the Knowledge in PSF Model Constructs
Table 8.1 shows the number of Super Issues, as derived from the analysis of issues
that correspond most strongly with each of the model constructs. The remaining 20
Super Issues do not map onto any of the model’s constructs. An explanation for the
failure of these 20 Super Issues to map onto constructs from the proposed
Knowledge in Professional Service Firms model is given later in this chapter.
The mapping process involved firstly interpreting the issues in light of the relevant
literature (as reviewed in Chapter 2). Then the issues were analysed in relation to
each of the constructs in the Knowledge in Professional Service Firms model. This
process resulted in the development of guidelines for mapping issues into the
Knowledge in Professional Service Firms model. Appendix G provides the list of
issues, with comments indicating the reasoning behind mapping particular issues
onto particular model constructs.
147
Below is a list of the constructs from the Knowledge in Professional Service Firms
model and the Super Issues that map strongly onto each construct:
1. Economic Structure - Issues relating to: Consulting fees, financial
practice management (i.e. cash flow, loans, tax or accounting), costs
(insurance, marketing). Issues that relate to the fees charged by firms,
operational costs of the firm, and salaries paid, are all associated with the
firm's Economic Structure.
2. Organisational Structure - Issues relating to succession planning, alliances
and partnership, hierarchical structure or chain of command, approaches
to training, firm expansion and contraction all relate to the Organisational
Structure of the firm.
3. Market for Professional Workforce – Issues relating to: recruiting staff,
employee lifestyle, entry requirements, recruit selection. These are issues
that are central to the firm's ability to compete in the Market for
Professional Workforces.
4. Market for Professional Services – Issues relating to: Increased
competition, decline in consulting work, client expectations and
predilections, client selection, working with decision makers, obstacles to
winning tenders or projects. Again, these are issues relevant to the firm's
ability to compete in the Market for Professional Services.
5. Knowledge Base – Issues relating to: Intellectual Property, firm or
individual expertise, skills i.e. issues that are relevant to the content and
form of the firm’s Knowledge Base.
6. Knowledge Management - Issues relating to: Knowledge transfer,
sharing, capture and storage. Managing or developing intellectual
property, leverage or exploitation of knowledge, specialisation, market
and technological trends. These issues are relevant to the firm's
Knowledge Management Practices and Strategies.
It is instructive to note which of the model constructs had the most Super Issues map
onto it. The Market for Professional Services construct had the most Super Issues
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map to it, a total of 23 Super Issues. Remembering that there are 72 Super Issues
(derived from the original 396 issues gathered during the Inventory Round), the fact
that 23 of these map onto the Market for Professional Service construct demonstrates
a major concern by consultants for the consulting firm’s ability to compete in the
Market for Professional Services. This construct mapped against Super Issues
belonging to the following eight “Major Issues”: Competition (5 Super Issues),
Sparse Availability of Consulting Work (5 Super Issues), Client Selection when
Engaging Consultants (4 Super Issues), Globalisation (3 Super Issues), Government
as a Regulator (3 Super Issue), Client Expectations (1 Super Issue), Consultant’s
Ability to Manage the Client (1 Super Issues), and the Tendering Process (1 Super
Issue). These Major Issues can be seen to relate to the consulting firm’s ability to
win bids for projects in a severely competitive market. In support of this contention
that issues relating to the Market for Professional Services are major concerns of
consultants are statistics from an analysis to be discussed more fully later in this
chapter; the analysis shows that the Major Issues ‘Globalisation’ and ‘Sparse
Availability of Work Consulting Work’ each ranked in the top 4 of the 17 Major
Issues on the basis of rank scoring by consultants.
As shown in Table 8.1, the researcher identified 20 of the 72 Super Issues as not
mapping onto any of the proposed model constructs. The majority of the Super
Issues that would not map belonged to the following Major Issues: Consultant’s
Ability to Manage the Client (8 Super Issues), Perception of the Consulting Industry
(4 Super Issues), and Professional Status (3 Super Issues). The remaining five Super
Issues belong to the following Major Issues: Client Expectations, Client Selection
when Engaging Consultants, Practice Management, Government as a Regulator, and
Strategic Planning and Management. All of the Super Issues that do not map to a
construct in the Professional Service Firms model pertain to the client-consultant
relationship, with the exception of two of the Super Issues, belonging to the Strategic
Planning and Management and Government as a Regulator Major Issues.
The 7 Super Issues belonging to the ‘Consultant’s Ability to Manage the Client’
Major Issue relate to the client-consultant relationship and the consultant engagement
process. The Knowledge in Professional Service Firms model is derived from
observations of large Professional Service Firms. Perhaps as a consequence of its
origins, this model considers the macro (strategic) view of Knowledge Management
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only and does not consider the micro (transactional) perspective of Knowledge
Management. The micro view considers Knowledge Management from a
transactional level, more concerned with the process of Knowledge Transfer between
service provider and client. The macro perspective, or strategic level, emphasises
how best the firm may exploit Knowledge Assets to achieve a sustainable
competitive advantage. The Super Issues that do not map into the Knowledge in
Professional Service Firm model pertain to the client-consultant relationship. The
client-consultant relationship relates to the micro perspective as this is predominantly
a transactional relationship rather than a strategic one. The Super Issues belonging to
the Major Issues: ‘Government as a Regulator’, ‘Perception of the Consulting
Industry’, and ‘Professional Status’ Major Issues do not readily map into any of the
proposed model constructs either. It can be seen that these all relate to external
factors that impact the industry sector rather than relating to the Management
Consulting Firm’s ability to compete in the external markets for Professional
Workforce or Professional Services.
8.2 Relationship of Accenture Case Study Evidence with
Knowledge in Professional Service Firms Model
The researcher mapped the issues from the Accenture Case Study, as identified by
Nguyen (2004), using the guidelines referred to in section 8.1. The results of this
mapping are summarised in Table 8.2. Of the 22 Accenture issues identified in the
Accenture Case Study, all 22 mapped into the Knowledge Management construct of
the Knowledge in Professional Service Firms model. Of the 22 issues, 12 issues also
mapped into the Knowledge Base construct, 5 into the Organisational Structure
construct, 1 into the Economic Structure and Market in Professional Services
constructs, while no issues mapped into the Market for Professional Workforces.
Some key differences can be identified between the mapping of issues from the
Issues Delphi Study in the Knowledge in Professional Service Firm model and the
mapping of the Accenture issues into the model.
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Table 8.2 – Comparison of Mapping in the Knowledge in PSF Model Constructs Issues Delphi Accenture Economic Structure 8 11.11% 1 4.55% Organisational Structure 3 4.17% 5 22.73% Market for Professional Workforce 3 4.17% 0 0.00% Market for Professional Services 23 31.94% 1 4.55% Knowledge Base 8 11.11% 12 54.55% Knowledge Management 7 9.72% 22 100.00% Issues That Do Not Map 20 27.78% 0 0.00%
Total 72 22
Table 8.2 presents a comparison of the percentage of issues from the Issues Delphi
Study and the Accenture Case Study (table 8.3) mapped into the Knowledge in
Professional Service Firm constructs. Owing to individual Accenture Case Study
issues mapping strongly on to more than one Knowledge in Professional Service
Firm construct, the sum of Accenture Case Study percentages in Table 8.2 are greater
than 100%. Table 8.3 - Themes from Accenture Case Study Data
THEMES ISSUES Culture is ingrained into organization Technology enables Knowledge Management Importance of experience and judgement in knowledge capture Incentives to motivate knowledge sharing Knowledge was ingrained into Accenture Support networks (communities of practices, expert forums) Innovation of Knowledge Not from first principles
Success factors of Knowledge Management
Stewardship to knowledge contribution – core value Capture of Knowledge from projects into documents for repository Creation and innovation of knowledge from reuse of knowledge Identifying Knowledge Gaps Appropriate reuse of knowledge
Knowledge Management Activities
Reviewing shelf-life of Knowledge Time was a challenge Culture was a challenge Definitive measurement for knowledge Correct knowledge reuse Volume of data in repository too large
Challenges
Costs of knowledge translation Client demand drives Knowledge Transfer Internal Focus Consider internal knowledge needs
Extracted From (Nguyen, 2004)
As the emphasis of the Accenture Case Study was on Knowledge Management
Strategies and Practices it is not surprising that 100% of the issues identified in the
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study map onto the Knowledge Management construct, and that 54.55% of the issues
map onto the Knowledge Base construct.
However, a key difference between the mappings is the emphasis the Issues Delphi
Study places upon the Market in Professional Services, with 31.94% of the issues
mapping onto this construct compared with 4.55% in the Accenture Case Study.
Keeping in mind that the emphasis of the Accenture Case Study is the Knowledge
Management Strategies and Practices of the firm, it is still interesting to note that the
respondents of the Issues Delphi Study, comprising predominantly small-medium
sized firms, place such a large emphasis on issues relating to the Market for
Professional Services.
Accenture appears to place more emphasis on Organisational Structure, with 22.73%
of the issues mapping into this construct compared with the equivalent result Issues
Delphi Study of 4.17%. This is understandable in light of the fact that Accenture is a
global sized Management Consulting Firm whilst the majority of the respondents to
the Issues Delphi Study belong to small-medium sized firms. What is interesting is
the role that the firm’s Organisational Structure plays in the firm’s Knowledge
Management Strategies and Practices. According to Empson and Morris (1997), the
firm’s Organisational Structure has a direct influence over the firm’s organisational
culture with respect to Knowledge Management. For example, a firm that adopts a
flat hierarchical structure is more likely to share knowledge because the firm’s
structure allows employees to interact at a collegiate level (Doyle & Adeline, 1998;
Empson & Morris, 1998; Maister, 1997; Robertson et al., 2000). A deeper
hierarchical structure is more restrictive, making it more difficult to share ideas and
creative thought because of the number of levels in the Chain-of-Command. Such a
deep Organisational Structure is more conducive to knowledge dissemination than to
knowledge sharing. Accenture has a deep hierarchical structure but has attempted to
diminish the restrictive nature of this type of Organisational Structure by forming
Communities of Practice and on-line Special Interest Groups to encourage a
knowledge sharing culture.
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8.3 Comparison of Sub-Study Findings
The Major Issue categories used to classify the Super Issues in the weights
instrument derive from the Context Case Study analysis. However, as discussed in
Chapter 6, the 17 Major Issues were generated from the Synthesis Process of the
Issues Delphi Study.
8.3.1 Client Consultant Relationship
Table 8.4 shows the relative importance of the issues from the Context Case Study,
measured by frequency of citing by the seven interviewees.
Table 8.4 – Issues Gathered from the Data of the Context Case Study Issue Category / Description Sample Literature
Sec VIC QLD NSW ACT TAS SA # T10
X X X X X X 6 Y Importance of the Client-Consultant RelationshipCzerniawski (2002a), Gable (1996), Bergholz & Nickols (2001, 2002a, 2002b), Lipsey (2002), Fincham (1999)
X X X X X X 6 Y Change in Client Expectations of Consultants Trinca (2002a), Werr & Linnarson (2002), Schein, (1990)
X X X X X 5 Y Opportunities for Small Niche consultancies Schmerken (2002)X X X X X 5 Y Government intervention in business Walters (2003), Stensholt (2003), Gome (2001)X X X X X 5 Y Need for the consultant to retrain in new skills McMann & Hordes (2000), Head (2002) X X X X 4 Y Economic Conditions – a decline in MC Work Trinca (2002a), (2002b)
X X X 3 Y Need for a More Rounded Consulting Professional Morrison (2002), Trinca (2002c)X X X 3 Y Trends to loose aliances of MCs Kanter (1994)
X X X 3 Y Emphasis on Transfer of Skills and Knowledge Werr & Linnarsson (2002), Semadeni (2001), Trinca (2002c), Morrison (2002)
X X X 3 Y Damage to MC reputation from low-fee consultantsX X 2 Risks from management fads Fox (2002)
X X 2 Little Lasting Impact on MCs of E-Business Boom Czerniawski (2002a, 2002b)
X X 2 Tendency for MC home offices English (2003)
X X 2 Demand for Process Experts across Industry SectorsX X 2 Virtual Organisation Buffini (2001), Weisenfeld et al. (2001)
X 1 Need for MC firms to globalise their businesses Pereira (2001), Price (2002)
X 1 Competition from A/C & Legal Firms and academicsX 1 Changes in the Work Ethic amongst Employees Trinca (2003)
X 1 Need for MC to Have Strong Marketing Skills Bergholz & Nickols (2001, 2002a, 2002b)
X 1 MC’s Qualifications Less Important than reputations Pereira (2001), Page (1998)
X 1 Inefficiency and Harm of Tendering Process9 8 11 8 6 5 12 59
Citations
Notes: MC=management consultant T10=top10 Sec=Secretariate
Data from the Context Case Study and interpretation of the predominant literature
suggest the client-consultant relationship to be an important issue. However,
analysis of the Weights Round data indicates otherwise. The analysis, summarised
in Table 8.5 below, examines the issue groups according to rank and mean rating.
The rank score has a potential range of 1-72, with a rank of 1 indicating that the
Super Issue is considered most important by respondent consultants and a rank of 72
indicating that it is considered least important. The mean ratings relate to the
importance assigned to an issue by respondents, where a rating of 1 indicates least
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important and a rating of 7 indicates most important. Ranks and mean ratings are
presented for a variety of demographic categories.
The three lowest ranking issues overall all relate to the need to establish
relationships, including the following in ascending order: (Super Issue #54)
“Management Consultants must develop close, personal relationships with clients”
(Mean = 2.88), (Super Issue #61) “There is a need for Management Consultants to
work with decision makers and gain exposure at the CEO level” (Mean = 2.98), and
(Super Issue #9) “Management Consultants must be able to maintain relationships
with multiple stakeholders (i.e. Clients, Colleagues and Potential Agents)” (Mean =
3.00).
Table 8.5 Significance Test of Issues
Major Issue Category Major Issue
Super Issue Rank Mean Rank Mean Rank Mean Rank Mean Rank Mean Rank Mean
CEP Managing Clients i59 31 3.97 70 2.94e 34 3.81 52 3.88 31 4 4 4.80aCLE Professional Status i36 60 3.49 21 4.16e 31 3.85 62 3.77 63 3.23 67 2.75aCLE Sparse Work i39 19 4.2 65 3.22e 44 3.65 26 4.38 16 4.42 1 5.00a
Rank Mean Rank Mean Rank Mean Rank Mean Rank Mean Rank MeanCOE Strategic Planning i43 53 3.55 68 3.14d 70 3.09b 69 2.5 17 5.00ab 46 4
Rank Mean Rank Mean Rank Mean Rank Mean Rank Mean Rank Mean Rank Mean Rank MeanCEP Managing Clients i54 72 2.88 69 2.00e 72 2.3 72 2.98 70 2.38 8 5.29a 71 2.65 65 3.48CEP Managing Clients i61 71 2.98 71 1.80e 69 2.58e 71 3.07e 62 2.85 3 5.71abcf 72 2.47e 60 3.57CLE Professional Status i36 60 3.49 58 2.8 66 2.93e 57 3.71 47 3.38 4 5.57b 58 3.32 56 3.61CLE Tendering i1 24 4.09 39 3.2 23 4.07 38 4.05 44 3.46e 1 6.29d 20 3.97 25 4COE Financial Management i53 69 3.11 61 2.80e 68 2.74 70 3.16 66 2.69 2 5.86bf 70 2.74e 68 3.39COE KM i40 12 4.32 19 4 7 4.44 7 4.82e 18 4.23 71 2.43c 28 3.88 35 3.87COE KM i7 42 3.82 30 3.8 44 3.53 23 4.41f 26 4 39 4.14 65 3.03c 59 3.57COE Strategic Planning i16 25 4.07 26 3.8 30 3.86 8 4.80f 30 3.85 68 3.14 54 3.41c 30 3.96
VIC WA[a] [b] [c] [d] [e] [f] [g]
SA
[d] [e]
TOTALACT NSW QLD
1 to 25%[a]
TASState
Firm Size21 TO 100 100+
[a] [b] [c]
SOLE TRADER
2 TO 5 6 TO 20TOTAL
[b] [c]
Public Sector26 to 50% 51 to 75% 76 to 100%
[d] [e]TOTAL0%
(CEP = Consulting Engagement Process, CLE = Changing Client Environment, COE = Changing
Consulting Environment)
Table 8.5 provides a comparative analysis of issues, using a significance level of
0.05 for determination of statistical difference in comparing demographic categories.
The significance of differences is assessed using a two-sided t-test invoking the
Bonferroni correction. Interestingly, Super Issue #54 and #61 indicate a significant
difference in mean scores. The results indicate that Tasmanian scores are
systematically higher than the scores by respondents from the Australian Capital
Territory for Super Issue #54. Tasmanian scores are also higher than scores by
respondents from the Australian Capital Territory, New South Wales, Queensland,
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and Victoria for Super Issue #61. It appears that because of Tasmania’s small
population there is a greater need to form strong long-term relationships with clients
that will result in repeat business and referrals (Bergholz & Nickols, 2001, 2002a,
2002b). John Bailey, of the Melbourne-based Carlton Consulting Group, believes
that small consulting firms need to build relationships with CEOs and other senior
executives in order to compete with big name firms such as McKinsey or BCG
(Trinca, 2004).
The client-consultant relationship did not show prominence in the Accenture Case
Study. This is interesting because the literature considers the client-consultant
relationship a crucial factor in achieving a sustainable competitive advantage
(Dawson, 2000). Evidence from the Accenture Case Study suggests that the
company places even greater importance on winning engagements than establishing
strong client-consultant relationships. Accenture has established a specialist team
designed to provide Knowledge Management support for proposal development and
winning engagements (Nguyen, 2004). In the trade-off between husbanding
Knowledge Assets for competitive advantage and transferring knowledge to clients,
Accenture appears to favour the former.
8.3.2 Knowledge Management
Table 8.6 demonstrates the varying Knowledge Emphases of the four sub-studies that
will be explored in this chapter. Table 8.6 Knowledge Emphasis of Research Studies
Study Knowledge Emphasis Firm Size Emphasis
K in PSF Model Knowledge Strategy Large
Context Case Study Knowledge Transfer Small
Accenture Case Study Knowledge Strategy Large
Issues Delphi Study Knowledge Transfer Small
Of the 21 issues identified in the Context Case Study, where all respondents are from
small-medium sized consulting firms, the transferring of knowledge and skills to
clients features in the top ten issues.
IMC’s New South Wales Chapter President suggests that smaller Management
Consulting Firms now consider it vital to be able to pass knowledge and skills to
clients so that clients can use them effectively without ongoing Management
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Consulting involvement. With regard to macro Knowledge Management, IMC’s
New South Wales Chapter President uses an informal system to transfer both
codified and non-codified knowledge amongst the four staff in his consultancy.
However, he expressed scepticism about the cost effectiveness of the large
Knowledge Management systems in the large consultancies (such as Accenture).
The importance of this issue was discussed in section 5.3 when examining the
contemporary definition of Management Consulting. The contemporary definition
reflects a growing emphasis in the literature on Knowledge Transfer. Knowledge
transfer is considered by many to be key to the modern client-consultant relationship
(Semadeni, 2001; Trinca, 2004).
Morrison (2002) also supports IMC’s New South Wales Chapter President’s
suggestion that Management Consultants need to continually transfer knowledge and
skills to their clients in order to survive. Morrison explains that in the past
Management Consultants have been afraid to pass knowledge on to their clients for
fear that they were giving away their key asset. However, a failure to pass
knowledge and skills on may be perceived by clients as not adding value to their
organisations (Semadeni, 2001; Trinca, 2004). As a consequence of this failure
clients may seek future work from the Management Consultant’s competitors.
Accenture, however, places lesser emphasis on Knowledge Transfer to clients
beyond its contractual requirements. Instead, Accenture prefers to establish a long-
term relationship of maintenance, support and potentially outsourcing (Trinca,
2002a). Accenture maintains more of an internal focus, instituting mechanisms to
promote the storage, capture, sharing and re-use of knowledge in the firm (Nguyen,
2004) Accenture attaches considerable value to its codified and uncodified (people)
Knowledge Base. Accenture uses its Knowledge Base as a differentiator when
attempting to win projects. Knowledge reuse allows Accenture staff to focus on
generating innovative new knowledge that will achieve a sustainable competitive
advantage for the firm.
Analysis of the Issues Delphi Study data did not rate Knowledge Management as an
important Major Issue. Although Knowledge Transfer was considered an important
issue in the Context Case Study it was not identified as an issue during the data
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collection phase of the Inventory Round. However, the fact that the two highest
weighted Super Issues in relation to Knowledge Management both attained mean
scores of more than 4.00 indicates concern among small-medium sized consulting
firms for certain aspects of Knowledge Management. These include: (Super Issue
#40) “Working across many unique types of projects limits the Management
Consultant's opportunities to leverage/reuse their knowledge and skills” (Mean =
4.32), and (Super Issue #18) “Management Consulting Firms suffer from the loss of
intellectual property that occurs when consultants leave the firm” (Mean = 4.23).
Analysis of Super Issue #40 across firm size shows an almost steady increase in
mean score: Sole Trader (2.99), 2 TO 5 (3.37), 6 TO 20 (2.71), 21 TO 100 (4.17),
100+ (4.5). These scores are consistent with the conclusion already made that larger
firms are more likely to possess a codified Knowledge Base. Smaller firms are less
likely to consider the need for capturing and storing knowledge in a codified form.
Staff belonging to smaller firms are more likely to leverage their own individual
knowledge because of limitations on the resources available for maintaining codified
data and because of a perceived lesser need to share knowledge formally amongst the
firm’s staff.
Turning again to Table 8.5, a comparative analysis of issues, with a significance
level of 0.05, using a two-sided t-test invoking the Bonferroni correction, the results
for Super Issue #40 indicate that Tasmanian scores are statistically higher than the
scores by respondents from Queensland. The lack of importance of this issue for
Tasmanian consultants may be attributed to the close relationships they form with
clients. This suggests that they are engaged in a limited range of projects as they are
continually dealing with the same clients.
In addition, Super Issue #40 “Working across many unique types of projects limits
the Management Consultant's opportunities to leverage/reuse their knowledge and
skills”, ranked 12 overall, with a mean of 4.32, recognising this Super Issue as
considerably important for small-medium sized consultancies. This alludes to a need
for firms to find a specialist niche, allowing them to capture and store knowledge that
can be leveraged on future projects. The Context Case Study data identifies that
there is opportunity for small firms to successfully establish themselves in a
specialist niche. Super Issue #40 was analysed to see whether there were any
significant difference in the rating of this issue across the states. A two-sided t-test
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invoking the Bonferroni correction indicates that there is a significant difference
between the Queensland and Tasmanian rankings, at a 0.05 significance level.
Queensland respondents ranked this Super Issue very highly (7th most important,
with a mean score of 4.82). The implication is that Queensland management
consultants confront a much wider range of project types than their Tasmanian
counterparts.
As discussed in section 8.3.1, this difference in weighting may be attributed to the
nature of relationships established in Tasmania compared with those established in
Queensland. It appears that because of Tasmania’s small population there is less
opportunity to attain new business and therefore a greater need to form strong long-
term relationships with clients that will result in repeat business and referrals
(Bergholz & Nickols, 2001, 2002a, 2002b). This would explain why Tasmanian
respondents do not consider working across unique types of project to be an
important issue, as they are unaffected. However, as examined in section 8.3.1,
Queensland consultants consider Super Issue #54 “Management Consultants must
develop close, personal relationships with clients” to be unimportant (72nd important
(last) with a mean score of 2.98). This is consistent with the earlier analysis of Super
Issue #40.
A similar analysis was performed on Issue #16 “Management Consultants have
difficulty establishing a Management Consulting specialist niche that is sufficiently
profitable” to see whether there were any significant differences in the rating of this
issue across the states. A two-sided t-test invoking the Bonferroni correction
indicates that Queensland scores are systematically higher than the scores by
respondents from Victoria. Queensland respondents ranked this issue very highly
(8th most important, with a mean score of 4.80), suggesting that there are more
opportunities for consulting firms to establish a profitable specialist niche in
Victoria, given the high concentration of business in Melbourne and the sparse
availability of work in the Queensland consulting sector.
8.3.3 Public Sector Consulting
The following three Super Issues, (Super Issue #36) “There are limited barriers to
entry to the profession i.e. no mandatory professional qualifications like lawyers and
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doctors.”, (Super Issue #39) “Changed government policy regarding the engagement
of external consultants is negatively impacting the availability of government work
for Management Consultants.” and (Super Issue #59) “Government clients focus on
deliverables (outputs) rather than value (outcomes) when engaging Management
Consultants.”, were compared among consultants engaged in varying percentages of
public sector work. Again, statistical difference was assessed using a two-sided t-test
invoking the Bonferroni correction. Again, too, a significance level of 0.05 was
employed.
The results for Super Issues #39 and #59 suggest that scores by firms engaged in
76% - 100% public sector work are systematically higher than the scores by firms
engaged in 0% public sector work. This result was to be expected, as Super Issues
#39 and #59 are related to government engagement of Management Consultants.
Respondents engaged in 76%-100% of public sector work rated (Super Issue #39)
“Changed government policy regarding the engagement of external consultants is
negatively impacting the availability of government work for Management
Consultants.” as the most important issue (1st important, with a mean score of 5.00).
By contrast, respondents engaged in 0% of public sector work considered Super
Issue #39 unimportant (65th important, with a mean of 3.22).
Data gathered from the Context Case Study identified the fact that some
governments in Australia had adopted a cost cutting strategy involving government
agencies setting up internal consulting groups. As a matter of policy, for example,
the South Australian government was committed to reducing its reliance on external
consulting services. This has hit many Management Consultants in South Australia
hard, as government generates most of their business. In addition, data gathered
from the Context Case Study also suggests that government attitude toward
consultants changes with the political climate. A lot of the consulting work
performed in Tasmania is mostly for the government. IMC’s Tasmanian Chapter
President indicated that the amount of consulting work varies depending upon policy
changes and the current stage of the political cycle.
(Super Issue #59) “Government clients focus on deliverables (outputs) rather than
value (outcomes) when engaging Management Consultants.” was considered
important (4th important with a mean of 4.80) by respondents engaged in 76%-100%
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of public sector work. Respondents engaged in 0% of public sector work considered
Super Issue #59 unimportant (70th important with a mean of 2.94). This may be an
indication that government clients are more focused on tangible outputs than
intangible outcomes. The government needs to maintain a perception of value for
the tax payer’s money by maintaining a sense of transparency with government
projects. This may be the reason for less reliance on outside advice but is also the
reason for focusing on tangible outputs to demonstrate to the voting public that the
government is keeping the public informed.
Interestingly, (Super Issue #36) “There are limited barriers to entry to the profession
i.e. no mandatory professional qualifications like lawyers and doctors.” was
considered important (21st important with a mean of 4.16) by respondents engaged in
0% of public sector work. Respondents engaged in 76%-100% of public sector work
considered Super Issue #36 unimportant (67th important with a mean of 2.75).
Consulting to government could be considered a niche sector. There is no doubt that
the public sector niche is competitive, but given the rigorous process utilised in
government tenders it is reasonable to assume limited barriers to entry to the
profession is not an issue for firms competing in this niche. Traditionally,
government has required firms to submit the skills and qualifications of their
employees with their tender proposal. This acts as an implicit barrier to entry for this
niche sector.
8.4 Chapter Summary
This chapter presents the findings of a comparative analysis across all four sub-
studies. The chapter discusses the relationships identified between the Knowledge in
Professional Service Firms model and the Super Issues derived from the Issues
Delphi Study.
Of the 72 issues synthesised from the Issues Delphi Study, 52 mapped into the six
constructs of the Knowledge in Professional Service Firms model: Economic
Structure (8 Super Issues), Organisational Structure (3 Super Issues), Market for
Professional Workforce (3 Super Issues), Market for Professional Services (23 Super
Issues), Knowledge Base (8 Super Issues), Knowledge Management (7 Super
Issues); leaving 20 Super Issues that did map into the model. Super Issues relating to
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the Market for Professional Services are a major concern for consultants. The
analysis shows that the Major Issues ‘Globalisation’ and ‘Sparse Availability of
Work Consulting Work’ each ranked in the top 4 of the 17 Major Issues on the basis
of rank scoring by consultants.
The 20 Super Issues that would not map belonged to the following Major Issues:
Consultant’s Ability to Manage the Client (8 Super Issues), Perception of the
Consulting Industry (4 Super Issues), and Professional Status (3 Super Issues). The
remaining five Super Issues belong to the following Major Issues: Client
Expectations, Client Selection when Engaging Consultants, Practice Management,
Government as a Regulator, and Strategic Planning and Management. The majority
of the Super Issues that do not map to a construct in the Professional Service Firms
model pertain to the client-consultant relationship.
The chapter also compares the findings of the Accenture Case Study, the Issues
Delphi Study, and the Context Case to identify similarities and differences between
the issues discovered. Emphasis is placed upon the client-consultant relationship,
Knowledge Management, and level of engagement in public sector work.
The researcher mapped the issues from the Accenture Case Study, as identified by
Nguyen (2004) into the Knowledge in Professional Service Firm model. Of the 22
Accenture issues identified in the Accenture Case Study, all 22 mapped into the
Knowledge Management construct of the Knowledge in Professional Service Firms
model. Of the 22 issues, 12 issues also mapped into the Knowledge Base construct,
5 into the Organisational Structure construct, 1 into the Economic Structure and
Market in Professional Services constructs, whilst no issues mapped into the Market
for Professional Workforces. Some key differences can be identified between the
mapping of issues from the Issues Delphi Study in the Knowledge in Professional
Service Firm model and the mapping of the Accenture issues into the model.
Some key differences between the mappings include the emphasis the Issues Delphi
Study places upon the Market in Professional Services, compared with the lack of
emphasis in the Accenture Case Study. Keeping in mind that the emphasis of the
Accenture Case Study is the Knowledge Management Strategies and Practices of the
firm, it is still interesting to note that the respondents of the Issues Delphi Study,
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comprising predominantly small-medium sized firms, place such a large emphasis on
issues relating to the Market for Professional Services.
Accenture appears to place more emphasis on Organisational Structure compared
with the lack of emphasis demonstrated from the results of the Issues Delphi Study
owing to the Issues Delphi Study’s sample of small-medium sized firms.
Data from the Context Case Study and interpretation of the predominant literature
suggest the client-consultant relationship to be an important issue. However,
analysis of the Weights Round data indicates otherwise. The three lowest ranking
issues overall all relate to the need to establish relationships. The client-consultant
relationship did not show prominence in the Accenture Case Study. Evidence from
the Accenture Case Study suggests that the company places even greater importance
on winning engagements than establishing strong client-consultant relationships.
Of the 21 issues identified in the Context Case Study, where all respondents are from
small-medium consulting firms, the transferring of knowledge and skills to clients
features in the top ten issues. Accenture, however, places lesser emphasis on
Knowledge Transfer to clients beyond its contractual requirements. Instead,
Accenture prefers to establish a long-term relationship of maintenance, support and
potentially outsourcing (Trinca, 2002a). Accenture maintains more of an internal
focus, instituting mechanisms to promote the storage, capture, sharing and re-use of
knowledge in the firm (Nguyen, 2004). Analysis of the Issues Delphi Study data did
not rate Knowledge Management as an important Major Issue. Although Knowledge
Transfer was considered an important issue in the Context Case Study it was not
identified as an issue during the data collection phase of the Inventory Round.
Data gathered from the Context Case Study identified the fact that some
governments in Australia had adopted a cost cutting strategy involving Government
agencies setting up internal consulting groups. This has hit many Management
Consultants in Australia hard, as government generates most of their business.
162
The next chapter will consider the contribution of this study, limitations to the
research, implications for Accenture, IMC and the industry as a whole, and potential
for future research.
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9 Conclusion
The chapter discusses how successfully the research outcomes where achieved as
well as exploring the limitations of the research, and the potential for further research
for each of the four separate sub-studies. Each study followed an independent
approach with discrete objectives that contributed to the overall study aim. As such,
each of the sub-study’s limitations and potential for future research is explored
separately.
However, the four sub-studies’ contribution to the Management Consulting industry
and Information Systems research is integrated. Although, each of the four sub-
studies may investigate the Australian Management Consulting industry from a
different perspective, they all contribute to the industry as a whole and attempt to
address the question ‘What are the Major Issues facing Management Consulting
Firms in Australia?’
9.1 Research Outcomes
The overall study is a compilation and comparison of evidence gathered from four
separate sub-studies. Table 9.1 provides the breakdown of unit of analysis, study
sample and research method for each of the sub-studies.
Table 9.1 – Breakdown of Four Sub-Studies Study Unit of Analysis Study Sample Research Method
Overall Study Australian Management Consulting Industry
Combination of Four Sub-Studies
Multi-Method
Context Case Study Small-medium Consulting Firms
IMC Executive Case Study
Issues Delphi Study Small-medium Consulting Firms
IMC Membership Delphi (Survey)
Accenture Case Study International PSF Accenture Government Group
Case Study
Knowledge in Professional Service Firm
Small, Medium and Large PSFs
IMC and Accenture (Predominately Literature Based)
Literature Review, Model Analysis
The overall study’s unit of analysis is the Australian Management Consulting
industry. Each of the sub-studies allows the researchers to explore the Management
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Consulting industry from the perspective of small, medium and large sized firms
with particular emphasis on Knowledge Management.
The aim of this study is to answer the research question “What are the major issues
facing Management Consulting Firms in Australia?” This research question is broken
down into three investigative questions:
1. What is the relative severity of the issues?
a. By demography: (State, Firm Size, Public Sector Work).
b. Between the Context Case Study and the Issues Delphi Study.
2. What are the Knowledge Management related issues facing
Management Consulting Firms in Australia?
3. What distinctions can be made between Knowledge Management
issues and approaches of small-medium sized Management
Consulting Firms and large Management Consulting Firms?
Each of the four sub-studies addressed the investigative questions to greater or lesser
extent demonstrated in Table 9.2.
Table 9.2 – Sub-Studies Emphasis on Research Questions Sub-Studies Emphasis on Research Questions
Sub-Study\Questions Question 1 Question 2 Question 3
Context Case Study High Low Medium
Accenture Case Study Low High Medium
Issues Delphi Study High Medium Medium
Knowledge in PSFs Low High Medium
Chapter 6 and 8 address Investigative Question 1a by comparing the issues across
state, firm size, and public sector involvement and Question 1b comparison of
analysis from the Issues Delphi Study and the Context Case Study. Globalisation
ranked second amongst the 17 Major Issues identified by the Issues Delphi Study. It
is an issue for both large and small firms as clients demand for global Management
Consulting Firms increases. Small firms will need to form alliances with local and
overseas firms to meet client demands and compete with their larger rivals.
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Respondents from all states with the exception of Tasmania and Western Australia
considered the need to relocate interstate or overseas an important issue. This
indicates the highly competitive nature of consulting in these states. This coupled
with the recent economic downturn may force consultants in the aforementioned
states to consider opportunities overseas, particularly in China where there exists
great potential for Information Technology consultants due to the country’s high rate
of internet growth (Nolan & Bennigson, 2005; Poulfelt et al., 2005).
Data from the Context Case Study and interpretation of the predominant literature
suggest the client-consultant relationship to be an important issue. However,
analysis of the Issues Delphi Study data indicates otherwise. The three lowest
ranking issues overall all relate to the need to establish relationships. When
comparing by state it is revealed that Tasmanian scores are higher than scores by
respondents from the Australian Capital Territory, New South Wales, Queensland,
and Victoria. It appears that because of Tasmania’s small population there is a
greater need to form strong long-term relationships with clients that will result in
repeat business and referrals (Bergholz & Nickols, 2001, 2002a, 2002b).
Public sector Super Issues were compared among consultants engaged in varying
percentages of public sector work. Super Issues related to government engagement
of Management Consultants were considered extremely important to consultants
engaged in 76-100% public sector work. By contrast, respondents engaged in 0%
public sector work considered theses issues unimportant. Data gathered from the
Context Case Study identified that some governments in Australia had adopted a cost
cutting strategy involving Government agencies setting up internal consulting
groups.
As the emphasis of the study is on Knowledge Management all four sub-studies
assisted in addressing Investigative Questions 2 and 3. Of the 21 issues identified in
the Context Case Study, where all respondents are from small-medium sized
consulting firms, the transferring of knowledge and skills to clients, features in the
top ten issues. Smaller Management Consulting Firms now consider it vital to be
able to pass knowledge and skills to clients so that clients can use them effectively
without ongoing Management Consulting involvement.
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In contrast, Accenture places less emphasis on Knowledge Transfer to clients beyond
its contractual requirements. Instead, Accenture prefers to establish a long-term
relationship of maintenance, support and potentially outsourcing (Trinca, 2002a).
Although Knowledge Transfer was considered an important issue in the Context
Case Study it was not identified as an issue by the Issues Delphi Study. Analysis of
the Issues Delphi Study data did not rate Knowledge Management as an important
Major Issue, of 72 Super Issues identified, only 8 were Knowledge Management
related.
Another conclusion drawn from the overall study is that larger firms are more likely
to possess a codified Knowledge Base. Accenture attaches considerable value to its
codified and uncodified (people) Knowledge Base. Accenture uses its Knowledge
Base as a differentiator when attempting to win projects. Smaller firms are less
likely to consider the need for capturing and storing knowledge in a codified form.
Staff belonging to smaller firms are more likely to leverage their own individual
knowledge because of limitations on the resources available for maintaining codified
data and because of a perceived lesser need to share knowledge formally amongst the
firm’s staff.
Analysis of the Knowledge in Professional Service Firms model identified that
regardless of firm size, all firms need to consider both internal factors: Economic and
Organisational Structure, and external factors: markets for staff and clients when
developing a Knowledge Strategy for their firm. Larger firms need to consider the
balance between the internal and external factors so that they leverage Knowledge
Assets appropriately and can identify potential sources of valuable knowledge.
Small firms need to consider whether their existing Knowledge Base is adequate to
meet their clients’ needs. If not, they need to consider recruiting or forming alliances
with other organisations that possess the knowledge they require to remain
competitive.
9.2 Study Contribution
For Information Systems research, the potential benefits of this study lie in the
contextual insights provided into a little researched area. This comes at a time of
reorientation of the Management Consulting profession, with its international
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domination by Information Technology firms. Where Management Consulting
research in the past had been largely the preserve of Business researchers, this new
emphasis on the links between Information Technology and Management Consulting
demands a greater future involvement by Information Systems researchers.
Furthermore, it is apparent that Management Consulting in Australia has
characteristics that suggest differences in priorities of issues, differences that warrant
independent investigation and reporting.
For the Management Consulting industry, the study provides a consolidation of their
views on the major issues confronting the profession in Australia at this time of
major change for the industry. This study shines a light on the issues affecting the
bulk of Management Consultants in Australia, particularly those from small-medium
sized firms. It reveals a distinctive pattern of concerns amongst this group of
Australian Management Consultants.
Not surprisingly, the study indicates that many of the issues for small-medium sized
Management Consulting Firms in Australia are similar issues described in the
literature for large international Management Consulting Firms. The literature
identifies mechanisms for dealing with these common issues and the nature of threats
and opportunities associated with the issues. A contribution of this study is in its
revealing for this group, small-medium sized Australian Management Consultancies,
some priorities of issues quite at odds with those described in the international
literature relating to large Management Consultancies. Similarly, the study exhibits
yet other issues (for small-medium sized Management Consultancies in Australia)
that do not appear at all in the literature. With each of the issues where there is
variance between the data gathered and the literature, there is opportunity for IMC,
as the professional association for small-medium sized Australian Management
Consultancies, to look to exploit differences that are perceived to offer advantages to
its members. These include the establishment of loose alliances amongst firms that
will improve competitiveness and create new opportunities. Similarly, where it may
be the case that issues are not receiving the emphasis that they may warrant, as,
perhaps, in the establishment of formal procedures for Knowledge Management
within small-medium sized Management Consulting Firms. IMC may choose to
direct professional development programs to address these opportunities and risks.
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9.2.1 Implications for the Management Consulting Industry
Accenture is evaluated by this study as very much internally focused, placing
considerable emphasis on capturing knowledge from projects and sharing knowledge
internally. Comparatively, small-medium sized firms investigated are reluctant to
form alliances or relationships with other small-medium sized firms preferring to
hoard knowledge for fear that sharing it with other firms will amount to giving away
competitive advantage. Accenture tends to rely heavily on its proven track record
and does not seek to gather much knowledge from external sources. This study
suggests that Accenture has scope to benefit from, on the one hand, an increased
acquisition and use of knowledge garnered from outside Accenture, and, on the
other, from a greater sharing of knowledge with its clients. Dawson (2000)
comments that Knowledge-Based Relationships between client and consultant can
result in new sources of competitive advantage for Professional Service Firms.
Knowledge sharing would appear to be particularly important for small-medium-
sized firms. The willingness to share knowledge with clients could result in long
standing relationships, repeat business and greater opportunities for new business
through referrals.
In addition, the study shows that neither Accenture nor many of the small-medium
sized firms surveyed have an accurate method of measuring the effectiveness of its
Knowledge Management initiatives. Hence, these firms are unable to determine
whether its approach to Knowledge Management is indeed meeting its organisation’s
aims or whether the strategies and practices implemented are costing their firm more
than they are saving. Nor are they able to determine whether Knowledge
Management is providing them with a sustainable competitive advantage. The study
highlights for Accenture the potential benefits to it from introducing metrics to
evaluate the costs and benefits of its Knowledge Management processes. For small-
medium sized firm the answer may lie in engaging external agency’s to assess the
effectiveness of Knowledge Management within their organisation. There may be
potential for the Knowledge in Professional Service Firms model to be adapted to
evaluate the effectiveness of large and small-medium sized firms’ Knowledge
Management practices.
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9.3 Limitations of the Research
9.3.1 Accenture Case Study
Firstly, the scope of the Accenture Case Study was limited to the Asia Pacific region
and, within that, Accenture’s Government Operating Group. For the study to be
considered truly representative of Accenture’s Knowledge Management Practices
and Strategies, it would be necessary to increase the scope of the case study to
include all five of Accenture’s Operating Groups, and all three of Accenture’s
Regions.
Furthermore, the case study is purely exploratory and does not test any theoretical
propositions to permit generalising from the outcomes established. Nor does the
study provide evidence to support a specific set of metrics to support the
recommended measurement of Knowledge Management processes at Accenture.
In addition, as this is a single case study it cannot be considered as convincing as a
multiple case study might be. Yin (2003) comments that evidence gathered from
multiple case studies is often more compelling because it is gathered from multiple
sources and the overall study is therefore considered more robust. The logic behind
the decision to adopt a multiple case study approach does not stem from sampling
logic but from the point of view of replication, which is often used to test a
hypothesis or generalise to theory.
9.3.2 Issues Delphi Study
The Issues Delphi Study has several limitations. It was not initially recognised by
the researcher that IMC’s membership consists predominantly of small-medium
sized firms. This only became evident during the Context Case Study. It was our
initial understanding that IMC was representative of small, medium and large
Management Consulting firms, providing a basis for comparing across all sizes of
consultancies. IMC could not provide exact figures of the demographic break down
of the institute’s membership. However, a breakdown of the Weights Round
response by firm size may be considered a guide to the demographics of IMC’s
membership. Weights Round response included firm sizes consisting of: sole
traders, accounting for 47.3%, 2 to 5 consulting staff accounted for 35.3%, 6 to 20
consulting staff accounted for 13%, 21 to 100 staff accounted for 3.3%, and firms of
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100+ staff account for just 1.1% of the total response. Accenture was approached to
participate in the Issues Delphi Study, to provide a large-firm comparison, but one of
the partners responded stating “we know what our issues are!”
IMC office bearers and Secretariat were understandably reluctant to allow the
research team any direct contact with the IMC membership. Contact with the IMC
membership generally needed to be approved by IMC’s National Secretariat and
could only be carried out by IMC staff. Direct communication between the research
team and IMC members was forbidden unless the IMC member initiated the contact.
While these procedures were appropriate to protect the privacy of IMC members,
their implementation slowed the progress of the data collection process. A detailed
timeline is included as Appendix I.
A further acknowledged limitation of this study relates to the fact that the 72 Super
Issues to be weighted by IMC members in the Weights Survey Instrument could be
expressed by the researcher in two competing ways. A respondent could be
presented with issues as either ‘important’ or ‘unimportant’; alternatively, the
respondent could be asked whether they ‘agreed’ or ‘disagreed’ with the issue. As
the purpose of the survey was to gauge the importance of the issue, it was decided to
instruct the respondents to weight the issue as ‘unimportant’ if they disagreed with it.
The justification for this approach was that if the respondent disagreed that the
statement was an issue for their firm, then they would also consider the issue
‘unimportant’, as it did not impact their firm. In spite of pilot testing of the
instrument, feedback from respondents indicates that the interpretation of the
weighting system was a problem for some respondents.
9.3.3 Knowledge in Professional Service Firms Study
The principal limitation of the Knowledge in Professional Service Firms study is the
Knowledge in Professional Service Firms model’s lack of theoretical underpinning.
Knowledge Management theory is still in its infancy and the Management
Consulting industry has been little researched. The topics of Management
Consulting and Knowledge Management appear to be inextricably intertwined, as
knowledge is the Management Consulting industry’s principal stock-in-trade.
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Furthermore, a lack of literature relating to the Knowledge in Professional Service
Firms model is also a limitation. The model appears to have been analysed only by
Empson and Morris, as they are the ones who developed it. There are several
publications that refer to Empson and Morris’s work but these do not refer to the
model specifically. Although recognising this lack of theoretical underpinning, our
initial assessment, based upon the conceptual analysis performed in Chapter 7,
suggests that the model nonetheless serves to improve research and practice’s
understanding of the role that Knowledge plays at the strategic (macro) level of a
Professional Service Firm. The model also has the potential to aid researchers and
practitioners to examine the effectiveness of a firm’s Knowledge Strategy by
determining, as outlined in Chapter 7, whether the model constructs are “in balance”.
9.4 Potential for Future Research
9.4.1 Accenture Case Study
There is potential to extend the Accenture case study to other regions and/or
Accenture Operating Groups, to provide a more compelling exploratory examination
of Accenture’s Knowledge Management Strategies and Practices. However, ideally,
any future research examining Knowledge Management at Accenture should be
based upon a theoretical framework designed to measure the effectiveness of
Knowledge Management Initiatives in Professional Service Firms. Such a theoretical
framework is not yet evident.
There is potential to explore further, at the micro (transactional) level, the impact that
Knowledge Management and Knowledge Transfer has on the success of projects and
consulting engagements.
9.4.2 Issues Delphi Study
Consultant’s Perspective
Little research has been conducted into issues directly affecting Management
Consultants in Australia. The purpose of the Issues Delphi Study is to identify and
weight issues that Australian Management Consultants consider important in relation
to the current state of the industry. The Management Consulting industry has
adopted the trend to globalise and, accordingly, many cultural issues will arise. The
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cross-institutional comparison of different countries would be interesting because
different cultures would undoubtedly have different perceptions of important issues
for them. Furthermore, a comparison across firm size would also be beneficial.
Comparing issues from large Management Consulting Firms with the current data
would be a substantial contribution in a so little researched area.
Client’s Perspective
An area that has received even less attention than the consultant’s perspective is the
client’s perspective on issues relating to the Management Consulting industry. The
Delphi approach would be the most useful in this instance, allowing the collection of
rich data from clients who engage consultants on a regular basis. The comparative
study of the outcomes from both studies would yield interesting results. As with the
consultant’s perspective, a cross-institutional comparison would be extremely
beneficial to consultants world-wide.
9.4.3 Knowledge in Professional Service Firms Study
As mentioned earlier, the Knowledge in Professional Service Firms model has the
potential to aid researchers and practitioners to examine the effectiveness of a firm’s
Knowledge Strategy. This can be achieved by determining whether the model
constructs are in balance. Empson and Morris (1997) argue that in order for a firm to
attain sustainable competitive advantage they must be able to balance four
fluctuating factors (1) Market for Professional Services, (2) Market for Professional
Workforce, (3) Organisational Structure, and (4) Economic Structure. All of the
relationships between these four fluctuating factors are mediated by the firm’s
Knowledge Management practices and processes, and the firm’s Knowledge Base.
There is potential to develop an instrument to measure whether the firm is effectively
balancing the four fluctuating factors. If the factors are out of balance this may be an
indication that the firm’s Knowledge Strategy is ineffective. An ineffective
Knowledge Strategy would require remedial action to bring the four fluctuating
factors into balance. This would also serve to consolidate the Knowledge in
Professional Service Firms model as a truly useful one for the study of Professional
Service Firms.
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9.5 Chapter Summary
This chapter summarises the key findings from the four sub-studies and how they
achieve the desired research outcomes. Each study assists the researchers
understanding of the overall study’s unit of analysis, the Australian Management
Consulting industry, by investigating the industry from the perspectives of small-
medium sized firms, an International Professional Service Firm and particular
emphasis on knowledge management.
Each sub-study places lesser or greater emphasis on three investigative questions, (1)
What is the relative severity of issues facing Management Consulting Firms in
Australia? (2) What are the Knowledge Management related issues facing
Management Consulting Firms in Australia? And (3) What distinctions can be made
between Knowledge Management issues and approaches of small-medium sized
Management Consulting Firms and large Management Consulting Firms?, providing
a holistic picture of the Australian Management Consulting industry.
Furthermore, this chapter examines the study’s contribution to Information Systems
research. It points to the fact that this is the first study to provide a picture of the
distinctive pattern of issues important to Australian Management Consultants. The
Australian Institute of Management Consultants (IMC) allowed access to data for
both the Context Study and the Issues Delphi Study out of recognition that an
understanding of the issues faced by the Australian Management Consulting industry
could directly assist IMC to more adequately meet the needs of its members. The
study duly provides IMC with relevant information about issues of importance to its
members. For Accenture, the examination of their Knowledge Management Practices
and Strategies will assist them to develop a means of measuring the effectiveness of
Knowledge Management initiatives to enhance the firm’s competitive advantage.
Other organisations seeking to put in place a system of Knowledge Management can
also benefit from the analysis of the Accenture practices and strategies.
There were limitations to all of the separate sub-studies. The Issues Delphi Study
was unexpectedly restricted to small-medium sized firms. The Accenture Case
Study was limited by industry group and geographic location; an investigation of
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multiple industry groups in Accenture, across several countries, is required to make
these findings more generalisable.
The chapter recognises that there is substantial potential to conduct future research
based on this study. A substantial contribution can be made by extending the Issues
Delphi Study to other countries for cross-cultural comparison. Moreover, the Issues
Delphi Study could be extended to identify, and weight, issues gathered from
consultancies of all sizes. Repeating the Issues Delphi Study over time would be
beneficial in detecting changing trends in Management Consulting issues. A study of
the Management Consulting industry from the client perspective has also been shown
to be potentially valuable.
The Knowledge in Professional Service Firms model has excellent potential to assist
researchers and practitioners to determine the effectiveness of a firm’s Knowledge
Strategy. This can be achieved by examining the effectiveness of the proposed
balance between the model’s four fluctuating factors as a predictor of the success of
a Professional Service Firm’s Knowledge Strategy.
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Appendix A - Context Case Study Protocol
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INSTITUTE OF MANAGEMENT CONSULTANTS CASE STUDY PROTOCOL – CONTEXT CASE STUDY Possible Study Propositions Though, this case study is exploratory based on a review of literature on Management Consulting in Australia, current issues for Australian Management Consultancy firms are believed to relate to the following areas: - Need to change skill bases rapidly to reflect changing areas of demand from clients - Restructuring of large consultancies following criticisms of conflicts of interest in organisations offering auditing and Management Consulting - Decline in demand for Management Consulting services - Tendency to polarise to very large or very small Management Consulting Firms Dominance of e-business consulting; need for business and bbb expertise (“as technology becomes strategy”) Tendency towards the virtual organisation approach in terms of collaboration between the client, the Management Consultant and other contributors to a project Current issues differ from those of earlier times Legislative changes Demographic Considerations On the basis of the literature and prior experience of the research team, it is expected that the nature of issues experienced by Management Consulting Firms will vary according to specific demographic features: - The size of the Management Consulting Firm - The industry sector or sectors targeted - The emphasis on technical skills, business (strategy) skills or integrated technical/business skills offered - The geographical locations targeted Justification of Postulated Propositions on Management Consulting Issues The broad areas of current issues selected for inclusion in the possible study propositions were drawn from a review of the literature on Management Consulting. Sources for these proposed broad current issues include: Kubr, 1996; Saddler, 2001; Feiler, 2000; Gardner, 2000; Jang & Lee, 1998; Murdoch, 1999; Schaffer, 2002; Sharif, 2002; Biffini, 2001; Gowan, 1999. Construct validity relates to the establishment of appropriate operational measures for the concepts being studied. Several steps are to be taken in this research to ensure construct validity. Where possible, multiple sources of evidence will be used in the data collection process. This may include cross-checking interviews and documentary material from within the subject organisations. Again, by referencing relevant data sources in the write-up of the case studies, and retaining the base data in accessible form, a “chain of evidence” (Yin, 1994, p.33) will be established. The
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appropriateness of the categories of issues will also be checked by having representatives from the case study organisation, IMC(Aus), review and comment on the draft case study report. External validity refers to the extent to which the findings of the investigation can be generalised. In this study, the intent is essentially exploratory, to see whether the proposed issue groups will form an adequate base for commencing the Delphi study. Generalisation is not sought at this stage. Reliability Provisions Reliability relates to the extent to which the investigation would achieve the same results if it were repeated. The articulation of this case study protocol is intended to provide sufficient detail about the theory to be tested and the methods used that the research could be readily repeated. A record will also be kept of the specific processes followed in the conduct of the case study. Methods of Data Collection Within IMC an interview will be conducted with the Manager of the Nati1onal Secretariat. Interviews will be held with other staff from the National Secretariat as required to gather information unavailable from the Manager and to cross-check information already gathered. Interviews will also be held with members of the National Executive. The content of interviews will vary according to the position and responsibilities of each interviewee. While the interviews will focus on factors articulated in the propositions to be tested, the format of each will be sufficiently open to permit the collection of important data unanticipated by the research propositions. Other forms of data collection will be employed to complement the interviews and to provide a basis for triangulation of evidence. Documentation to be studied for relevant information may include the Institute Charter, Procedures Manuals, Newsletters, Committee Minutes, Policy Documents, and records of correspondence between the Secretariat, Executive members and institute members. People to be Interviewed and Other Sources of Data People who will be interviewed in the Context Case Study include the Manager of the National Secretariat, other staff from the National Secretariat and members of the National Executive. Documentary sources will be examined. These will include where available: organisation charts, committee minutes, the Institute Charter, Procedures Manuals, and newsletters. Questions A. Base Data about the organisation Sources of Data - Organisation Chart
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- Institute Charter Specific questions: History of establishment of IMC? History of international affiliations? Structure of IMC Executive and Secretariat? Total number of executive/administrative personnel? Categories and numbers of executive/administrative personnel including reporting structure? What are the incentives for Management Consultants to be members of IMC? What are the obstacles/disincentives for Management Consultants to be members of IMC? B: Demographic data on IMC members Sources of Data - Membership List? Specific questions: Number of IMC members? Distribution of members by state? Number of IMC members 10 years ago? 5 years ago? Distribution of members by industry sector addressed? Distribution of members by size of firm? Distribution of members with respect to emphasis on technical skills, business (strategy) skills or integrated technical/business skills offered? What percentage of Management Consultants are members of IMC? Which groups of Management Consultants are most strongly represented in IMC? Why? Which groups of Management Consultants are least strongly represented in IMC? Why? C: Perception of Issues for Management Consultants from Secretariat Sources of Data - IMC publications to members Specific questions: What have been the major issues facing Management Consulting Firms over the past 12 months? Can you identify current issues for Management Consultants in any of the following areas?: - Need to change skill bases rapidly to reflect changing areas of demand from clients - Restructuring of large consultancies following criticisms of conflicts of interest in organisations offering auditing and Management Consulting - Decline in demand for Management Consulting services - Tendency to polarise to very large or very small Management Consulting Firms
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Dominance of e-business consulting; need for business and technical expertise (“as technology becomes strategy”) Tendency towards the virtual organisation approach in terms of collaboration between the client, the Management Consultant and other contributors to a project Legislative changes How are these current issues different from those 12 months ago? How are these current issues different from those 5 years ago? Do you expect these current issues to persist or to go away? Why (for each issue)? Are there new issues that you anticipate in the next 12 months or so? Are there new issues that you anticipate in the longer term future? Do you have any ideas on how the current issues you have identified could be addressed by: IMC? Governments? Any other entity? D: Perception of Issues for Management Consultants from Executive Members of IMC from the perspective of executive membership Sources of Data - IMC executive minutes Specific questions: What have been the major issues facing Management Consulting Firms over the past 12 months? Can you identify current issues for Management Consultants in any of the following areas?: - Need to change skill bases rapidly to reflect changing areas of demand from clients - Restructuring of large consultancies following criticisms of conflicts of interest in organisations offering auditing and Management Consulting - Decline in demand for Management Consulting services - Tendency to polarise to very large or very small Management Consulting Firms Dominance of e-business consulting; need for business and technical expertise (“as technology becomes strategy”) Tendency towards the virtual organisation approach in terms of collaboration between the client, the Management Consultant and other contributors to a project Legislative changes How are these current issues different from those 12 months ago? How are these current issues different from those 5 years ago? Do you expect these current issues to persist or to go away? Why (for each issue)? Are there new issues that you anticipate in the next 12 months or so? Are there new issues that you anticipate in the longer term future? Do you have any ideas on how the current issues you have identified could be addressed by: IMC? Governments?
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Any other entity? C: Perception of Issues for Management Consultants from IMC Executive members from the perspective of a practising Management Consultant Sources of Data - Company/personal documentation Specific questions: How large is the Management Consulting Firm you work for? Which industry sectors does your firm target? Does your firm offer predominantly technical or business-oriented services or integrated technical/business services? What have been the major issues facing your Management Consulting Firm over the past 12 months? Can you identify current issues for your firm in any of the following areas?: - Need to change skill bases rapidly to reflect changing areas of demand from clients - Restructuring of large consultancies following criticisms of conflicts of interest in organisations offering auditing and Management Consulting - Decline in demand for Management Consulting services - Tendency to polarise to very large or very small Management Consulting Firms Dominance of e-business consulting; need for business and technical expertise (“as technology becomes strategy”) Tendency towards the virtual organisation approach in terms of collaboration between the client, the Management Consultant and other contributors to a project Legislative changes How are these current issues for you different from those 12 months ago? How are these current issues for you different from those 5 years ago? Do you expect these current issues for you to persist or to go away? Why (for each issue)? Are there new issues that you anticipate for you in the next 12 months or so? Are there new issues that you anticipate for you in the longer term future? Do you have any ideas on how the current issues you have identified could be addressed by: You/your firm? IMC? Governments? Any other entity?
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Appendix B – Inventory Round Survey Instrument
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A survey conducted by the Information Systems Management Research Group
Queensland University of Technology in cooperation with the
Institute of Management Consultants
Major Issues Facing Management Consultants in Australia
General Instructions for Completion
Introduction: We are amidst a period of much change in Management Consulting worldwide. Yet very little research has been done into the issues that Management Consultants face in Australia. This survey is being conducted by the Information Systems Management Research Group (ISMRG) at the Queensland University of Technology (QUT) in close cooperation with the Institute of Management Consultants (IMC). All members of the Institute of Management Consultants are being contacted and encouraged to participate in this survey. In order for the research to be most useful, it will be necessary for a substantial number of members to respond. Purpose of the Survey: The purpose of this survey is to identify the major issues affecting Management Consultants in Australia. As stated in the December newsletter, it is expected that results of the study will: (i) Assist IMC and members to understand the key areas of concern in the consulting industry; (ii) Give IMC members a perspective on the difficulties and opportunities as seen by their peers; (iii) Allow consultants to reassess challenges and opportunities in light of the perceptions of other consultants; (iv) Guide the IMC Federal Council in providing future services to members; and (v) Allow the Institute to customize services for particular cohorts of members (through demographic segmentation of study data). Conduct of the Survey –The survey will involve two main rounds. This, the 1st round is a brain storming exercise aimed at ‘inventorying’ the issues affecting your Management Consulting Firm. You are encouraged in this round to identify as many issues as possible that you believe are impacting your consulting firm. In the 2nd round, we will present to you a summary set of issues derived from round-1 responses, and seek your views on the relative importance of these issues. Confidentiality - Detailed results of the survey will be confidential to ISMRG. No names will be entered into the ISMRG database. Once received, respondents are assigned a sequential number and findings are never attributed to any individual. Only aggregated results are reported. Neither IMC nor any other group will receive a copy of the study database. If you have any concerns regarding the ethical conduct of this research, you can contact the Secretary of the Queensland University of Technology’s Human Research Ethics Committee on (07) 3864 2902 or email [email protected]. General Instructions for Completing and Returning the Questionnaire – It will take you approximately 10-15 minutes to complete this questionnaire. Please answer all questions and return the completed questionnaire by Monday 30th of June 2003. Please return your completed survey instrument as an email attachment to [email protected] . If you have any questions concerning the questionnaire, please do not hesitate to contact me or my research assistant Jason Kennelly. Professor Guy Gable, Head Information Systems Management Research Group
Mr Jason Kennelly, Research Assistant ISMRG, QUT
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Queensland University of Technology Tel: 3720-8805 (voicemail) Fax: 3720-8805 E-mail: [email protected]
GPO Box 2434, Brisbane 4001 Tel: 3864-9476 Fax: 3720-8805 Mobile: 0414 644 446 E-mail: [email protected]
Major Issues Facing Management Consultants in Australia
A survey conducted by the Information Systems Management Research Group
Queensland University of Technology in cooperation with the
Institute of Management Consultants
SECTION ONE: PERSONAL DETAILS This is a confidential, non-anonymous survey. For data analysis purposes, the
Information Systems Management Research Group (ISMRG) must be able to
associate your demographic details (Title, Agency, and Duration of employment)
with your responses in both rounds of the survey. Respondents are assigned a
sequential number and no names will be entered to our database. Your responses
should be sent directly to the research team at [email protected]
Please enter the following demographic data.
Your name: Your position within firm (title): Years of consulting experience:
Your consulting firm name:
No. of Consultants in your firm: Location of your firm (City):
Please briefly describe your current job role within your firm. Please briefly describe your firm. Please go to section two
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Major Issues Facing Management Consultants in Australia
A survey conducted by the Information Systems Management Research Group
Queensland University of Technology in cooperation with the
Institute of Management Consultants
SECTION TWO: ISSUES AFFECTING YOUR CONSULTING F This question is intentionally left open ended to encourage you to identify as many
issues as possible. We are interested in whatever issues you are aware of, be they
strategic/operational, positive/negative, etc.
What are the major issues affecting your consulting firm?
(Please use the space below to list and describe the issues affecting your consulting firm.
Use as much space as you require. Feel free to add rows to the table or to overflow onto
another page.)
Thank you for your participation! Please save this completed document and send as an email attachment to
END OF SURVEY – ROUND ONE
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Appendix C – Weights Round Survey Instrument
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CONFIDENTIAL: Please send your response directly to: [email protected]
COPYRIGHT © Information Systems Management Research Group QUT 2004 All rights reserved. No part of this document may be copied or reproduced without the prior written approval of the Authors. The Authors assert their moral rights of attribution and integrity Enquiries contact: Colin Melvin: [email protected]
A survey conducted by the Information Systems Management Research Group
Centre for Information Technology Innovation Queensland University of Technology
in cooperation with the Institute of Management Consultants
Major Issues Facing Management Consultants in Australia General Instructions for Completion
We seek with this survey a FULL RESPONSE from IMC membership. Only with a full response will we be able to conduct valuable comparative analyses
based on demographics. All members that respond to this survey will receive a full report of the study
findings. Introduction: We are amidst a period of much change in Management Consulting worldwide. Yet very little research has been done into the issues that Management Consultants face in Australia. This survey forms the second round of a study conducted by the Information Systems Management Research Group (ISMRG) at the Queensland University of Technology (QUT) in close cooperation with the Institute of Management Consultants (IMC). All members of the Institute of Management Consultants are being contacted and encouraged to participate in this study. We seek with this survey a FULL RESPONSE from IMC membership. Only with a full response will we be able to conduct valuable comparative analysis based on demographics.
Purpose of the Study: We seek your views on the relative importance of issues affecting your Management Consulting Firm. It is expected that results of the study will: Assist IMC and members to understand the key areas of concern in the consulting industry in Australia; (ii) Give you, the IMC members, some insight into difficulties and opportunities perceived by your peers; (iii) Allow consultants to reassess challenges and opportunities in light of the perceptions of other consultants; (iv) Guide the IMC Federal Council in its provision of future services to members; and (v) Guide IMC in the Professional Development of its members.
Conduct of the Study: The study involves two main survey rounds. The research team would like to thank those who participated in the 1st round, a brain storming exercise aimed at ‘inventorying' the issues affecting your Management Consulting Firm. In this, the 2nd round, we seek your views on the relative importance of a summary set of issues synthesised from 396 issues received from respondents in the 1st round survey. Following the study, IMC will coordinate presentations of study results by the QUT ISMRG team to IMC Chapters around Australia.
Confidentiality: Detailed results of the survey will be confidential to ISMRG. No names are entered into the ISMRG database. Once received, respondents are assigned a sequential number and findings are never attributed to any individual. Only aggregated results are reported. Neither IMC nor any other group will receive a copy of the study database. If you have any concerns regarding the ethical conduct of this research, you can contact the Secretary of the Queensland University of Technology's Human Research Ethics Committee, Ms Shane Forrest on (07) 3864 1785 or email [email protected] .
General Instructions for Completing and Returning the Questionnaire: It will take you approximately 15-20 minutes to complete this questionnaire. Please answer ALL questions and return the completed questionnaire by Friday 30th April 2004. You have two options; you may complete this MS Word version or you may complete the web version at http://www.consulting-issues.citi.qut.edu.au/IMC_Consultant_Issues_Survey.asp . Please note that in order to complete the Web Survey, you need Internet Explorer 6 or above. If you choose the MS Word version please return your completed survey instrument as an email attachment to [email protected] . Alternatively, you can send this MS Word version by fax to (07) 3864 9390 or by Post to Jason Kennelly, Queensland University of Technology, GPO Box 2434, BRISBANE Q 4001. If you have any questions concerning the questionnaire, please do not hesitate to contact Jason Kennelly at [email protected] or Tel: 3864 9477 or Mobile: 0414 644 446.
Tim Millar MIMC Tim Millar MIMC Jim Chippendale FIMC CMC David Leaney MIMC CMC Rowan McClean MIMC CMC
IMC Federal President SA President WA President ACT President VIC President
Professor Guy Gable Head, ISMRG
CONFIDENTIAL: Please send your response directly to: [email protected]
COPYRIGHT © Information Systems Management Research Group QUT 2004 All rights reserved. No part of this document may be copied or reproduced without the prior written approval of the Authors. The Authors assert their moral rights of attribution and integrity Enquiries contact: Colin Melvin: [email protected]
Peter Murfett MIMC Colin Paroz MIMC CMC Len Ashby MIMC CMC
TAS President QLD President NSW President
A survey conducted by the Information Systems Management Research Group
Centre for Information Technology Innovation Queensland University of Technology
in cooperation with the Institute of Management Consultants
SECTION ONE: PERSONAL DETAILS This is a confidential, non-anonymous survey. For data analysis and quality
purposes, the Information Systems Management Research Group (ISMRG) requires
the following demographic data. Respondents are assigned a sequential number and
no names will be entered to our database. Your responses should be sent directly to
the research team at:
NOTE: * denotes questions that require a mandatory response
Your name*: Your position within firm (title)*: Your personal years of consulting
experience: Your consulting firm name
(optional): No. of Consultants in your firm*:
Location of your firm’s Head Office (City)*:
What is your firm’s primary area of specialization (if specialized):
What industry(ies) do you target (if industry specific):
Percentage (%) of Public Sector Work (Select one box only):
0% 1-25% 26-50% 51-75% 76-100%
Please briefly describe your firm. Please briefly describe your current job role within your firm. Continue with section two
CONFIDENTIAL: Please send your response directly to: [email protected]
COPYRIGHT © Information Systems Management Research Group QUT 2004 All rights reserved. No part of this document may be copied or reproduced without the prior written approval of the Authors. The Authors assert their moral rights of attribution and integrity Enquiries contact: Colin Melvin: [email protected]
A survey conducted by the Information Systems Management Research Group
Centre for Information Technology Innovation Queensland University of Technology
in cooperation with the Institute of Management Consultants
SECTION TWO: WEIGHTS SURVEY The following list of issues has been synthesized from 396 issues received from respondents in the 1st Round survey in response to the question … What are the major issues affecting your consulting firm?
For EACH AND EVERY ONE of the issues listed on the pages following, please select a SINGLE score from 1 to 7 where,
1 - means the issue is relatively UNIMPORTANT to your consulting firm, 7 - means the issue is VERY IMPORTANT to your consulting firm.
If you DISAGREE with the issue please weight it as UNIMPORTANT to your consulting firm.
Please indicate your weighting of the issue by selecting a SINGLE checkbox number for EACH
issue.
Issue
UN- Important
VERY Important
The proposal process requires substantial employment of resources yet yields little chance of success. 1 1 2 3 4 5 6 7
Clients are placing emphasis on leveraging existing systems and on cutting costs (with less emphasis on doing 'new' things). 2 1 2 3 4 5 6 7
Government is influencing which consulting projects private enterprise take on by approving or rejecting subsidy applications. 3 1 2 3 4 5 6 7
Client decisions on Management Consulting services are being made at global headquarters rather than at a regional or country level.
4 1 2 3 4 5 6 7
The requirement for Management Consultants to disclose methods and approaches when tendering may result in loss of intellectual property.
5 1 2 3 4 5 6 7
CONFIDENTIAL: Please send your response directly to: [email protected]
COPYRIGHT © Information Systems Management Research Group QUT 2004 All rights reserved. No part of this document may be copied or reproduced without the prior written approval of the Authors. The Authors assert their moral rights of attribution and integrity Enquiries contact: Colin Melvin: [email protected]
Issue
UN- Important
VERY Important
Government places onerous regulatory and other demands on small business consulting firms. 6 1 2 3 4 5 6 7
It is difficult for Management Consulting Firms to obtain market intelligence on the supply of and demand for particular consulting services.
7 1 2 3 4 5 6 7
The number of individual and Small- Medium sized Management Consulting Firms entering the industry is increasing. 8 1 2 3 4 5 6 7
Management Consultants must be able to maintain relationships with multiple stakeholders (i.e. Clients, Colleagues and Potential Agents)
9 1 2 3 4 5 6 7
Management Consultants are placing emphasis on a balanced lifestyle, resulting in lower work output. 10 1 2 3 4 5 6 7
It is challenging to continually update skills via professional development. 11 1 2 3 4 5 6 7
Management Consultants must develop their marketing and sales skills 12 1 2 3 4 5 6 7
Clients’ preference for international consulting firms is forcing local and regional firms to globalise brandings, services and product offerings.
13 1 2 3 4 5 6 7
The Management Consulting Firm has no resale value without its people. 14 1 2 3 4 5 6 7
Management Consultants that focus on short-term financial gain, as opposed to building long-term relationships, harm perceptions of the Management Consulting industry.
15 1 2 3 4 5 6 7
Management Consultants have difficulty establishing a Management Consulting specialist niche that is sufficiently profitable. 16 1 2 3 4 5 6 7
Clients who rely on a consulting-work-subsidy from government, delay project start dates and are indecisive about whether to engage consultants.
17 1 2 3 4 5 6 7
Management Consulting Firms suffer from the loss of intellectual property that occurs when consultants leave the firm. 18 1 2 3 4 5 6 7
There is a need to establish a network of complementary Management Consulting skills across Management Consulting alliances/partnerships.
19 1 2 3 4 5 6 7
The inappropriate application of consulting methods by questionable firms undermines many clients’ perceptions of those methods. 20 1 2 3 4 5 6 7
Consultants that only push the latest management fad create the perception that Management Consultants are ineffective and provide inappropriate solutions.
21 1 2 3 4 5 6 7
The specialised nature of Management Consulting makes it difficult to delegate work to other consultants in the firm. 22 1 2 3 4 5 6 7
It is difficult to attract, develop, and retain Management Consultants for the firm. 23 1 2 3 4 5 6 7
CONFIDENTIAL: Please send your response directly to: [email protected]
COPYRIGHT © Information Systems Management Research Group QUT 2004 All rights reserved. No part of this document may be copied or reproduced without the prior written approval of the Authors. The Authors assert their moral rights of attribution and integrity Enquiries contact: Colin Melvin: [email protected]
Issue
UN- Important
VERY Important
There is a lack of market recognition of the CMC qualification. 24 1 2 3 4 5 6 7
Substantial demands are placed on Management Consulting resources when developing new intellectual property (e.g. products, services, tools, techniques).
25 1 2 3 4 5 6 7
The distinction between Management Consultant and IT Contractor is becoming increasingly blurred. 26 1 2 3 4 5 6 7
There are risks associated with a Management Consulting Firm shifting to a more specialised skill base. 27 1 2 3 4 5 6 7
The Management Consulting profession is perceived as having no recognised body of knowledge. 28 1 2 3 4 5 6 7
Clients are demanding increased value from consulting services which results in more hours of effort from Management Consultants for the same fees.
29 1 2 3 4 5 6 7
The poor economic climate is resulting in limited opportunities for Management Consulting work. 30 1 2 3 4 5 6 7
Clients lack expertise to evaluate the quality of our services delivery. 31 1 2 3 4 5 6 7
The uncertain state of the market is causing indecision and delays in client decisions. 32 1 2 3 4 5 6 7
Clients are demanding prior industry-specific experience with the approach proposed in tender bids. 33 1 2 3 4 5 6 7
Clients are inadequately aware of the importance of training and development. 34 1 2 3 4 5 6 7
Annual tax accounting for the consulting practice is onerous. 35 1 2 3 4 5 6 7
There are limited barriers to entry to the profession i.e. no mandatory professional qualifications like lawyers and doctors. 36 1 2 3 4 5 6 7
A lack of available, challenging and rewarding consulting work is forcing Management Consultants to relocate interstate or overseas. 37 1 2 3 4 5 6 7
It is a challenge to anticipate future client and consulting firm market and technological trends. 38 1 2 3 4 5 6 7
Changed government policy regarding the engagement of external consultants is negatively impacting the availability of government work for Management Consultants.
39 1 2 3 4 5 6 7
Working across many unique types of projects limits the Management Consultant's opportunities to leverage/reuse their knowledge and skills.
40 1 2 3 4 5 6 7
There is a great amount of time and expense associated with marketing the Management Consulting Firm. 41 1 2 3 4 5 6 7
CONFIDENTIAL: Please send your response directly to: [email protected]
COPYRIGHT © Information Systems Management Research Group QUT 2004 All rights reserved. No part of this document may be copied or reproduced without the prior written approval of the Authors. The Authors assert their moral rights of attribution and integrity Enquiries contact: Colin Melvin: [email protected]
Issue
UN- Important
VERY Important
The merging of consulting with other services (e.g.: personal services, accounting services, and project specialist contract work) is creating more competition in the Management Consulting space.
42 1 2 3 4 5 6 7
There are risks associated with expanding the Management Consulting Firm. 43 1 2 3 4 5 6 7
It is difficult planning ahead due to an inability to predict the availability of Management Consulting work. 44 1 2 3 4 5 6 7
Managing cash flow of the Management Consulting Firm is challenging. 45 1 2 3 4 5 6 7
There is competition from part-time and non-specialist Management Consultants. 46 1 2 3 4 5 6 7
Government is promoting a standard fee structure to clients for Management Consulting Services, which is limiting fee flexibility. 47 1 2 3 4 5 6 7
There is inadequate market awareness of the potential value from engaging a Management Consultant. 48 1 2 3 4 5 6 7
The concentration of client firm activities in “shared services” centres means fewer business areas/entities toward which Management Consulting Firms can target their services.
49 1 2 3 4 5 6 7
It is a challenge avoiding internal politics of the client organisation. 50 1 2 3 4 5 6 7
There is a need for a Management Consulting industry standard billing system and general fee structure (like solicitors). 51 1 2 3 4 5 6 7
Individual and Small- Medium sized Management Consulting Firms have difficulty when attempting to obtain loans from financial lending institutions.
52 1 2 3 4 5 6 7
Management Consultants need economical Professional Indemnity Insurance. 53 1 2 3 4 5 6 7
Management Consultants must develop close, personal relationships with clients. 54 1 2 3 4 5 6 7
There is a need to perform succession planning to ensure longevity of the Management Consulting Firm. 55 1 2 3 4 5 6 7
Small- Medium sized Management Consulting Firms find it difficult to compete with large Management Consulting Firms. 56 1 2 3 4 5 6 7
There is difficulty overcoming a client’s ingrained preferences for a particular firm demographic i.e.: younger vs. experienced consultants, regional vs. metro.
57 1 2 3 4 5 6 7
The relationship with the client may be damaged if the consultant declines a job that doesn’t add value for the client. 58 1 2 3 4 5 6 7
Government clients focus on deliverables (outputs) rather than value (outcomes) when engaging Management Consultants. 59 1 2 3 4 5 6 7
CONFIDENTIAL: Please send your response directly to: [email protected]
COPYRIGHT © Information Systems Management Research Group QUT 2004 All rights reserved. No part of this document may be copied or reproduced without the prior written approval of the Authors. The Authors assert their moral rights of attribution and integrity Enquiries contact: Colin Melvin: [email protected]
Issue
UN- Important
VERY Important
Management Consultants are finding it difficult to maintain a steady stream of Management Consulting work. 60 1 2 3 4 5 6 7
There is a need for Management Consultants to work with decision makers and gain exposure at the CEO level. 61 1 2 3 4 5 6 7
The Government provides no preferential support to advantage local Management Consulting Firms over global Management Consulting Firms.
62 1 2 3 4 5 6 7
There is sometimes a client predisposition for a particular Management Consultant in what purports to be a competitive bid. 63 1 2 3 4 5 6 7
The shortage of Management Consulting work is made worse by the trend for clients to do it themselves. 64 1 2 3 4 5 6 7
There is a need to educate and manage clients in terms of scope and deliverables of an engagement. 65 1 2 3 4 5 6 7
Clients specify the methodology(ies) required in their Request for Tender, rather than stating their problem/opportunity. 66 1 2 3 4 5 6 7
Open ended legal liability and onerous contract terms are becoming prevalent. 67 1 2 3 4 5 6 7
Domestic/regional Management Consultants are finding it difficult to compete with global Management Consulting Firms. 68 1 2 3 4 5 6 7
Unqualified Management Consultants are negatively impacting the perception of Management Consultants in general. 69 1 2 3 4 5 6 7
There is frequent client reluctance to accept and implement Management Consultant recommendations. 70 1 2 3 4 5 6 7
Clients are demanding Management Consultants with process expertise across industries rather than industry specialist expertise. 71 1 2 3 4 5 6 7
Clients are placing emphasis on a Management Consultant’s reputation rather than professional qualifications. 72 1 2 3 4 5 6 7
Thank you for your participation! Please save this completed document and send as an email attachment to
END OF SURVEY – ROUND TWO
Appendix D – Accenture Case Study Protocol
Theory to be tested The research topic is knowledge management understanding of strategies, practices and potential in large
consulting firms: a case study of Accenture (Australia). The aim of this research will be to conduct an
exploratory and descriptive case study to understand how and why knowledge is managed in Accenture to
discover opportunities that exist for new sustainable competitive advantages that exist outside the organizational
boundaries. Specifically, these opportunities will be examined within the client consultant relationship. This
research will provide the background and understanding of Accenture’s knowledge management practices and
strategies to aid a parent study, Benefits Realisation in the context of the Virtual Organization, a collaborative
study between QUT and Accenture.
1. Research Questions and objectives
The questions that will be proposed will predominantly revolve around how Accenture manages its knowledge
through strategies and practices and why these choices have been selected. The research question for the case
study will be to understand “How does Accenture manage its knowledge in the organization and for client
consultant projects”.
1. How is knowledge created, captured, accessed, shared and reused from one engagement to the
next?
2. Why is knowledge management considered important within client consultant projects?
3. Why is some knowledge captured and how is the extent of what knowledge is captured from
engagements determined?
4. How effective is knowledge management in Accenture?
The objectives of the research include identifying knowledge management strategies and practices used within
Accenture and to understand the effects of these choices for Accenture. It is also hoped that successful factors for
knowledge management implementation identified within the literature will be found within Accenture’s
knowledge management model. By discovering the potential that may exist with current knowledge management
strategies and practices in Accenture and for client consultant engagements, this may lead to new sustainable
competitive advantages for the consulting firm.
Figure B - 1: Parent Study
(Adapted from G. G. Gable, 2003)
2. Reliability Provision
The integrity of case study research can be measured in terms of validity and reliability. It is important to have
careful design to ensure the research has methodological rigour and reduces the possibility of bias in results.
Tests can be used to ensure the rigour or integrity of case study research.
The test of reliability suggests the study can be repeated to achieve the same set of results, which is possible
through the use of a case study protocol to develop and prepare the data collection. The protocol allows for
transparency of the process that was undertaken to develop the research and conduct it to ensure it has clarity,
logic and well thought structure. The protocol also provides an overview to the project, identifies field
procedures, questions and a guide for the study report. By ensuring a rigorous case study protocol has been
developed allows reliability that the research can be repeated to achieve the same outcomes (Rowley, 2002).
Validity can be achieved through triangulation which is the use of multiple sources of evidence to corroborate the
same findings.
Benefits Realisation in the Context of the Virtual Organization
THE TOTAL STUDY DESIGN
SUB-STUDY
ESS (Impacts)
Survey
Integration Study
Macro KM at Federal
Government Case Study
KM/ESS Multiple
Case Study
Macro KM at IPSF
Case Study
KM/Consulting Multiple
Case Study
Study Design/ Plan
Meth
od
s
Rele
van
t Th
eo
ry
Lite
ratu
re R
evie
w
Federal Government
Sponsor
Contacts Benchmark
Documentation
Case Report
Cross Case Report
Case Report
Cross Case Report
Design Plan
Draft Instruments
3. Methods of Data Collection
Interviews with Accenture personnel who have a role in knowledge management will be the primary source of
data collection. The people that will be interviewed will fall into the following levels of classification.
Strategy – partner
Operations – knowledge management professionals
Projects – knowledge champions, consultants
Other sources of evidence for data collection for the research will include the literature available on knowledge
management, newspapers, Accenture’s documents including its annual report, website, minutes, newsletters,
manuals and procedures that may be accessible.
4. People to be Interviewed and Other Sources of Information
Interviews will be conducted with Accenture personnel. It is planned that interviews can be arranged with
personnel who have involvement with knowledge management. Particularly, a consultant that provides
knowledge services, a consultant that provides other services, a knowledge management professional and a
manager involved with knowledge management strategies.
5. Data Analysis
Several strategies for data analysis are proposed by Yin. The appropriate strategy for the data analysis of this
research will be to develop a descriptive framework as there are no theoretical propositions to rely on. This is a
result of the research being exploratory in nature. A descriptive framework to organize the study reflecting
themes drawn from the literature will be used to gather evidence around these themes for the case study. This
will enable analysis and comparison of the data to be made within these themes to enable a descriptive case study
to be produced (Rowley, 2002).
Sample Interview questions
A. What of knowledge – creating and harnessing knowledge
• What different roles are there for managing knowledge in Accenture and what are the responsibilities
for each role?
• How do these roles contribute to the creation and harnessing of knowledge?
• What formal qualifications in knowledge management are required for knowledge management
roles?
B. Why of KM
• Why is knowledge important to Accenture?
• What benefits result from knowledge management?
C. How knowledge (practices and processes)
• What practices enable knowledge management in Accenture?
• How does the role of technology help KM?
• What technology initiatives for KM have been implemented?
• How has technology been successfully used to support KM?
• How is the extent of knowledge captured from engagements decided?
a. Are there predetermined criteria/templates to follow?
b. Is this subjective, based upon experience of knowledge champion?
c. How is the quality assessed?
d. Who assesses this quality, and who makes the decision on what to capture?
e. To what extent is the knowledge captured (everything or selective)?
f. Do these factors vary for each project or are they consistently practiced from one project to
the next?
• How is knowledge created, accessed, shared, reused from one engagement to the next?
• What formal arrangements are made at the commencement of projects regarding how KM from
project will be handled – as in creation, sharing, ownership? If none, what is the reason for this?
• Is there any discussion with the client to review knowledge creation, capture and sharing after
project finishes? If not, is there a reason for this?
• What challenges are faced with managing knowledge in the organization and outside the
organization?
D. Evaluation of KM (measurement)
• How is the benefit of knowledge measured (quantitative/qualitative/methods or approaches)?
INTERVIEW ONE
TYPE OF INTERVIEW: IN PERSON
DATE: 18.12.2003 Time: 11.00am – 12.30pm
Location: Queensland Tafe, Level 2, Block 2, Red Hill
Interviewers:
Tracey Nguyen: Honours student
Robert Smyth: Associate supervisor
Jason Kennelly: PhD student on parent study
Interviewees:
Paul Chapman: Project Manager – Queensland TAFE project (Consultant)
Craig Thompson: Program Manager – Queensland TAFE project (Consultant)
Louise Bland: Functional Analyst – Queensland TAFE project (Knowledge Champion) INTERVIEW TWO
Type of Interview: In person
Date: 22.12.2003
Time: 10.00am – 11.00am
Location: Accenture, Level 30, 12 Creek St, Brisbane
Interviewers:
Tracey Nguyen: Honours student
Robert Smyth: Associate supervisor
Jason Kennelly: PhD student on parent study
Interviewee:
Karyn Mottershead: Manager Public Sector and Shared Services – Asia Pacific (Partner)
INTERVIEW THREE
Type of Interview: Teleconference
Date: 06.01.2003
Time: 12.00pm – 1.00pm (Brisbane, Australia)
10.00am – 11.00am (Manila, Philippines)
Location: QUT, Level 4, 126 Margaret Street, Brisbane
Interviewers:
Tracey Nguyen: Honours student
Robert Smyth: Associate supervisor
Jason Kennelly: PhD student on parent study
Guy Gable: Supervisor
Interviewees:
Tess Azicate: Manager – Government Knowledge Network (Knowledge Management
Professional)
Bettina Hipolito: Operating Unit Area Coordinator – AsiaPacific (Knowledge Management
Professional)
Appendix E – Accenture Case Study Interview Transcripts
Interview Transcript of Accenture Consulting Staff Date: 18 December 2003 Time: 11.30am – 12.30pm Location Tafe Queensland
Level 2 Block 2 Fulcher Rd Red Hill
Interviewers: TN – Tracey Nguyen
BS – Bob Smyth JK – Jason Kennelly Interviewees: PC – Paul Chapman
CT – Craig Thompson LB – Louise Bland
PC: I might just give you a bit of a feel for our roles here for the project in the context of what we do from a project view point and then from a knowledge management view point. Then get some further information if that’s helpful for the context of the discussion. I’ve got a role here as a project manager for the implementation, so to give some context for the project, we are putting in Peoplesoft for Tafe Queensland for the whole state. BS: Which application? PC: The student administration, not financials, other than within student administration system product; all the admission through to the student financials, the full life cycle. When a student or staff enrols, they get admitted, a file is produced which goes to SAP with financial data, with processing in between. That’s a very systematic view of the project. So we are putting that in. We started in October last year. We will be delivering to all the institutes by August next year with pilots for control deployment before then. It is a larger engagement, a very large project and investment from Tafe’s point of view. It is quite a large initiative; every 15 institute in Tafe is covered in the engagement as a corporate deployed solution which has been one of the challenges of putting that through. BS: How many Tafe institutes are there across the state? PC: There are 15 and about 85 campuses. CT: 225 000 students, across 15 autonomous institutes with 85 locations, 800 accredited courses, so that’s, I guess, when you equate it back to QUT, is a program or degree at an accredited level. PC: That’s in a component of the program of work that we are doing, there are a number of projects that form a program of work. BS: I think it’s interesting because it does give scope of the thing in terms of knowledge management and it is a very big undertaking. PC: What we term the core implementation, I together with Joe Willis, who is the Tafe project manager, look after that aspect and there are other aspects of the implementation including the support of the current system which is part of Accenture’s responsibility. So we’ve taken that on and that’s part of the program, and other components, outside of core, termed optional functionality, which institutes can either take or not take, depending on their business requirements, that’s part of the program as well. Craig is the program manager, so Craig looks after whole program, whereas I am the project manager for the implementation who looks after core implementation; it’s the biggest part of program but not the whole program, that’s the relationship between Craig and myself. Louise has a much more important role. Louise if you talk about your role from a project view and then we’ll touch on the knowledge point of view. LB: From a project view point I am working as a consultant or as a functional analyst on the lower level of the details, say doing design work and testing a solution, making sure it meets all the requirements, but on top of that as a knowledge champion. My role there is to identify the design or any deliverables we have done and post them to our knowledge database. PC: Louise undersold her role, Louise is also driver of requirements. CT: She mentioned delivering user requirements but also meeting user requirements and also is a driver of requirements. Say if Tafe wants something, but it might not meet their best interest to do so, Louise is not just a
yes person “we’ll do that”, but also studies and works through with the client so what they are getting is best for them. Louise analyses and tells them if… BS: They have an agreed specification agreed to up front, they may ask for things but different things might be better. CT: Things are changing. Things started two years before we changed. It took officially two years to get requirements from 15 institutes (or 16 institutes back then). PC: So Louise has been a key player in the design of some critical components on the application, specifically how the fees are calculated. How that part of the product spits out an answer with respect to how much the student owes. That’s been one of the responsibilities from a project point of view, one of the core aspects of the project. LB: Yes, full fee students. PC: This does provide context around what we were discussing before, Craig mentioned before Tafe have brought on business analysts that have been in institutes, or had role in central business areas, or customer service centres, they brought those guys on and our responsibility is to provide functional experts in the product. We get together and start talking the same language, which doesn’t always occur. We quickly get to the point where we say: we agree and understand what you are saying; do you understand what we are saying? The expectation of Accenture is numerous but the expectation for us is to understand the requirements, ensure we produce the best result with respect to the working of the product and the requirements can be met in the product and if indeed it can be met within the standard product or if we need to look at modifications required to deliver. BS: Do you have any role there to advise them that it may be better for you to change your procedures. Often they don’t ask for things they think are readily deliverables. LB: Yes, there’s that assumption that we will work to requirements, just making sure we get everything out. PC: That’s a good point Bob, part of our expertise that we bring, and our knowledge, is illustrated in this diagram. But we need common mindset given that we have requirements coming through the business and we have a product not geared to VET sector. We are producing a solution that must work in VET sector, in order to bring minds together in project we must go through a methodology delivery called Process excellence, innovate, attitude, getting owners for processes and also focus on creating outcomes, giving value to customers that sort of focus and guiding principles helps us look at options together and ascertain it based on guiding principles that assist us BS: Easy to deliver something that they ask for and what they are doing now but not giving them value PC: That’s right, and what is it doing for the customer. We have done a lot of work that has helped us with establishing a common mindset to the project itself and the user base and institutes which have to user the solution itself. That brings it together. CT: We have roles or specialities. Paul is allowed to critique financial performance management forming process excellence principles, PEP, Paul is a leader in Australia. PC: Just quickly, from a knowledge management point of view, Louise touched on it, she’s our knowledge champion. Just at a high level, Louise goes through deliverables ascertains what would be of value from other similar projects from a Peoplesoft, student administration, education industry, ERP view point, mainly those, and also from a generic view point, project management view point, design discipline view point, how we get about process excellence and applying that with what we have done to operationalise that on the project. Taking the methodology and actually making it live and produce something out the other side. Louise’s knowledge champion role is to review all that we have produced, ascertain what is reusable from those aspects mentioned before, Peoplesoft, student administration, education industry, and then Craig and I have a role to review that. But to review that and make sure, from our viewpoint, that includes everything we need to have on it and everything there is useful. CT: And from a point of view from client relations, if we put on there any sensitive information it must be ensured that it is not breaking any IP arrangements in contracts. We set quite a detailed discussion of intellectual property during contract negotiation, given this is the first new breed of VET sector solutions. And we are more than happy to be part of that, we have put in mechanism to capture, on behalf of Tafe Queensland, and also to protect our interest, which are of course, we are a knowledge, um, our value is our methodology. BS: I wonder about the other side of things, were you able to draw on any other Accenture experience previously, what about outside Accenture? Peoplesoft were on RMIT, were you able to draw from the experience from RMIT?
CT: Yes, we were very aware of other Peoplesoft projects, and what was occurring down there. RMIT were very cooperative during the tendering process to let Tafe know what really went on down there, we have implemented on numerous Peoplesoft implementations, we knew what the issues down there had little to do with product, but RMIT was very good during the tender process and also in commercial confidence, and we had an idea of the key drivers but obviously we don’t know all the details. PC: In a nutshell, we are classified as knowledge contributors, we don’t have a role in managing that knowledge, if you look at role definitions across Accenture more broadly, we definitely fit into the knowledge contributors, we have specific parts of our organization that manage that knowledge and are kept up to date in terms of technology delivery and content view point and then knowledge management aspects, we can go more into details. PC: Our job is to, as Craig mentioned, work out what we can post, for want of a better term, onto our knowledge management infrastructure and ensure it is complete, and has necessary IP considerations. We have a number of categories of posting information to our knowledge management framework. So it can be full usage – which means you can print it out and put it in front of a client and say this what we’ve done on this project, to very strict restrictions on how that knowledge is shared with clients, either not posted, which is the highest restriction, is not posted and if you want it and sounds what you need, you need to contact the project manager on an exception basis. If it’s posted, then the highest classification is that it must only be shared internally only, it can’t be put in front of a client, internal users only. The number of classifications for posted knowledge provides guidance for users of that information, so that they understand and that we uphold our legal considerations. IP has been a pretty hot issue and has been for some time. BS: Ethical ones outside of IP as well. PC: And it is up to Craig and I, together with Louise, not only what we put on the knowledge infrastructure but how we put it on and what classification it is posted to. BS: The three of you make joint decisions? PC: In the main, Louise puts an inventory together, which she has, and Craig and I review for completeness and it is up to Craig and I to ensure the classification we put on is accurate, not only what we feel is right, but also in line with IP considerations. BS: So after awhile, once you feel confident that Louise has got a good feel, it becomes fairly cursory, yes, that looks right? PC: That’s Right. We have put a lot of effort into that, at this stage, Louise has done that job, in that we have an inventory put together, but not yet posted, which is not unusual with a project of this size and when it’s going through development, what we generally don’t do is start posting interim deliverables that haven’t been finalised or the development process hasn’t been completed yet. Obviously we want to get information out there and available that is up to date but hasn’t changed materially since. CT: This doesn’t mean we are out of the knowledge management loop either by doing that, we have other forums such as communities of practice (COPs). I was a presenter at the last education one. We have created initiatives such as postcards of what has happened here which is made available to other people involved in the education sector within Accenture. BS: How does the community of practice, how does it operate? CT: We have, within our marketing unit, within the service line of government; we have a number of industries. We have revenue tax, human services social services and families, and then we have education. We have a person in charge for education as well as a program manager, who’s sole responsibility of the program is to ensure that things, like knowledge, are shared around and also the latest thinking initiatives in US or Spain or Florida and Canada which are hotspots for education thinking and best practices going around there, not down on the project level, but more of the way the industry is going, shared around, and latest initiatives and methodologies that Accenture has patented. Also how does it apply to the education industry? So there is full time person Elizabeth Ferrero, who I keep in regular contact with, who is interested in high level, she is Atlanta based, it’s global so it’s either very late at night or early morning if we hook up, it’s challenging to overcome timelines. We are not outside the knowledge loop but the information we are providing allows where Tafe is going, how we are setting up the project, what are where endeavouring or focusing on our current workforce models, and how we setup the support unit, which is the next project stage in program, so at this level, is not requiring the rigour of knowledge management. PC: There are a number of layers of this stuff that Anita and I covered at the knowledge management discussion earlier. There is the project angle, contributing to the knowledge management framework, but then also other
aspects, communities of practice, experts we touched on in presentation and the methodology finder, so there’s a number methods we control and can get point to point knowledge of information. It’s in the presentation sent to Guy. So communities of practice is one, we also have discussion networks, which is ask the experts, I showed (in the discussion) you my mailbox which had a number of questions which come through, all the way from global connections and communities of practice is more at a higher level of strategic stuff and we have that all the way through to asking about has anyone done a certain initiative around a particular process, has anyone looked at a certain aspect of enrolments, or whatever, so there’s that type of question, all the way to I have this specific technical problem, in this specific table, at this specific point in the process, help, is there anyone who has encountered this problem before? So there are quite a number of layers of assistance provided through that channel as well. BS: The one that intrigued me the most was considering that you must be very busy from day to day, is there an incentive to find time to post this kind of information, is this a conflict? LB: It is difficult, I know how much I have used the knowledge base, go have a look, here’s the answer to your problems, someone posts a question asking help me out – and it takes a couple minutes of my time, so it’s knowing it all comes around back to you. PC: The sort of formal answer is Louise’s time for this is work planned, considered part of project plan, of the implementation, not a lot of the time, when she spends proper time on knowledge champion work it is a task against her timesheet and placed against that, and recognised contribution to the project in the performance assessment for Louise, part of that, how good a job has she done on the role of knowledge champion, formally recognised as part of her role. BS: Because you are pushing hard and putting in extra hours it’s a bit like documentation. No one wants to do it unless incentives to do it, you may put it on timesheet, but you may do it later on, so you must have some sort of incentive. LB: I guess I was referring more to the expert discussion, everyone sitting in that room from Accenture has probably had a few questions back and forward, and helped out but certainly with this task all my time is recorded for this. PC: That’s the formal answer, but the more emotional answer to me is empathy, I think that’s what you were getting at? BS: I know that if I make the sacrifice this time, next time someone else is making sacrificing on my behalf. PC: Y has a number of requests urgently requiring assistance for X, need some information for project or business development work, we have all been there, 11 o’clock at night, I’ve got to get something resolved or fixed by 10 am or information I need. So it’s an empathy thing. It is cultural, if we can help, if I see a question I can help with, I will make the time to reply, whether that’s after hours, lunch, we’ll do it. To me something, I’m quite proud of, is it is culturally embedded, I do not quite know why that is the case, but we are not about reinventing and going through the process. CT: It’s about quality. Thinking of knowledge as a task it won’t get done, but like Paul said it’s about culture, and we live it now, it’s hard to segregate, ingrained, knowledge management, and knowledge sharing. BS: That’s important, it’s best that it is how it should work. A number of organizations say this about quality that everyone does it, but when you look down, no one does it because everyone is assuming everyone else is doing. CT: Finally, the experience is the incentive, as the regional knowledge champion, networking, network exposure she’s getting, building it up it’s an informal incentive, we don’t know why we do it, to people at entry level, its’ ingrained in our culture. BS: It’s important, unless you have incentives and culture, it becomes unstuck, you can have the written manuals you want, but nothing will get done. CT: An important thing to note is that we do have the formal processes, enabling systems, training methods. BS: They are prerequisites but they are not enough. CT: But it’s in our culture. But if we assume it’s in our culture, and take away other processes, if our priorities get somewhere else then that could slip, so it’s important to maintain those things, it’s in our culture we don’t need to do it. PC: It sounds pretty rosy, but warts and all, we don’t do a perfect job of it, the information if you are looking for it, you will get a bit of discussion from the knowledge managers too, it is difficult to keep things up to date, it is
difficult to incent projects like this, as big as this initiative, for example to do what we are doing, Louise, I and Craig, we are all committed to doing it, it will happen on this project, but I wouldn’t say for sure for every project they put all their information forward and it happens and we lose a bit because of that. We have processes in place, don’t get me wrong, they are solid, and if you use them the work, but I would say that an organization as large as ours with critical projects that are time dependent, I wouldn’t say that every project that should contribute does and that every project should keep its project information up to date does, you guys are doing research, this information is confidential, but it’s important to get some balance in discussion. I think it works extremely well in Accenture, but in other organizations I haven’t seen it work nearly as well as for us. Because it is a differentiator for us. If we go to market against competitors knowledge management and how we deliver and what we do with it on client side is a major differentiator for us. BS: It has been for a long time, it has been a feature of the organization. PC: Yes, so if you read any of our proposals, you will see it will come through. We have proven methodology, we have knowledge management framework, those selling messages are part of the bigger picture on most larger engagements, and the client wants that too, they are buying that we are not walking in with a blank sheet of paper. That we have a process in place, part of our project management, doing the same job better if we were to do it again. To pick up on your question earlier Bob, I think we did a rigorous process before we landed on site from the first day, where we pulled current knowledge management from our framework but other material from other implementations, mainly Accenture centric but also lessons from other jobs, information. We have accessibility and if that information is Accenture driven, we took that into account, we looked at that, we tried to produce templates, a good template for deliverables can make a world of difference to how you drive the activities you are doing, so we tried to pull together a good suite of templates for the activities we knew we had to undertake here taking into the account the learnings from other jobs we had done, so that is proactive precursor to a job starting. We don’t always have that luxury, I must admit, we don’t always go through that process but we certainly went through it here because we knew how big the job was. BS: It has paid off well for you? PC: I think so. CT: It is also driven by a quality point of view. We landed here, with an understanding from a quality management approach and part of that was understanding the configuration management approach, what documents we needed to produce, what they were, where to get them and what they looked like and how to get them. BS: Human nature takes those things away from you and you want to get into it in a hurry; you don’t necessarily have the time to spend before hand. CT: It was a very long contract negotiation. BS: That would have helped. CT: We had also, by that time, we had full time five or six people, doing different roles. We had Paul focusing on negotiation but also Kylie setting up the project office and jump start the VET model requirements coming our way. BS: Is the project on schedule at this stage PC: We are on schedule to deliver in August next year, we did take our Proof of Concept stage, as part of that, we redefined the following stages of work, from that point we are on schedule. TN: With the knowledge champion, is there a formal process that you follow that all knowledge champions follow? LB: Yes, we have full time professional knowledge management people and I am in constant contact with one of those people, the Education specific knowledge management professional, Edwin Lopez, he has been guiding me through the process. BS: Where is he based? LB: Manila, so my first role was to come up with our plan of all the deliverables that we plan to post to the knowledge database, and he arranged my training, I hadn’t had a knowledge champion role before, so he took me through the databases we had and the things that would be expected of me, I have here an example of the plans that I have come up with this is a high level list of docs we are planning to post to the database. As the project goes on, there might be new documents, but this is a first draft, of the types of documents that we post, some of
the target dates we are looking at posting these. The next step is the formal process, Paul and Craig look at IP agreements and everything here is ok, and the restriction I have put on. PC: It’s the completeness so we are not missing anything we might think is useful for another project as I said before, education, ERP, Peoplesoft or any project, so there are some project management deliverables that are transferable across to any engagement, so there is that and also the classification where Craig signs off and my review needs to target. BS: So the contact in this case is an Accenture person? LB: Yes, so for example, if there was a document with the full restriction where you have to contact the person to get a copy of that document, that’s where that person will come in, or you have any questions regarding the document, you will ask this person as a first point of contact. CT: And that will be the highest level (classification) the list of restriction down the list. LB: Once signed off, it is back to me to post the documents and try to meet target dates, I’ll post the documents to the database and Edwin, from a higher level, will have a look at those and review them to make sure they are the quality he expects. PC: And he ensures they are posted in a way to maximise their exposure on the knowledge management framework. So if I go and do a search on education or Peoplesoft or whatever, that it is placed in the knowledge management framework to maximum effect. BS: Is he responsible for South Pacific and Asia or worldwide? LB: I think he is entire operating group for education, so globally, for education sector. His role is specifically knowledge management, he is on top of the types of information that are on demand, so he has given me a high level list of these are the things we are looking for, so if we take this plan back to him to say this is what we are planning to post, he can say have you thought of this, so he can let us know something we might not think is necessarily worthwhile but he does. They try to keep it simple so it doesn’t’ take up too much time. PC: They do a lot of work on their side. BS: How large are these files to post? LB: It varies, some of these are just folders, there might be ten to fifteen documents that may zip to a file, we might have a whole bundle of student financials design all in together in logical groupings, or the enrolment configurations files, so they’ll be grouped up and zipped up then posted in logical groups. BS: So you will put a little preface to it, grab the documents in electronic form, and zip them up and then send them off? LB: Yes. CT: From my experience of pulling down each submission there is an understanding of what it is, so what Paul was saying, what the restrictions are, if you can match the highest level of classification by reading the description provided and deciding is this what I want? Then contacting the person listed. TN: Is there a review process actually in place with clients after the project or during the project to assess knowledge transfer to them or other arrangements? CT: We have a multi part knowledge transfer one of those would be the key thing you are looking for is the role of memo, a set of tasks or understanding, for instance who is going to go in a months time for instance. BS: What’s it called? CT: Called many things, but what I call the role of memo, resources of the project, Anne Meridy who is the solution lead for Tafe Queensland, going on this day, these are the tasks which I am responsibility for these are the tasks that I need to do prior to my completion, these are the people who are responsible for that knowledge being passed over, so a tactible deliverable to get that view or checklist. BS: Is it written into the specification anywhere that you must transfer knowledge to Tafe people or is there a broad understanding? PC: This is a slightly different project. Depending on what the client wants from us from a knowledge management viewpoint, will drive our obligations.
BS: So you have to take something over and run it in your absence? PC: In this case, we have the run of contract, the support contract, so once we are in production and we are going, it is in Accenture’s responsibility to rectify, as far as a support call that comes in, so the knowledge management process and knowledge transfer is from our implementation resource of which a large proportion are of our support unit members so we don’t have to transfer knowledge; they are actually a core part of the component. But Louise is a good example, where she has had a specific role in the tuition fee area. If the support unit doesn’t have an adequate level of knowledge, we actually have a knowledge transfer responsibility from the implementation project to the support unit, in this case that’s Accenture to Accenture so that’s people within our own organization. BS: In another instance it might be Accenture to clients? PC: Yes, in another client we have done this for. CT: We have the role of memo, CSA, another core government agency. BS: So this is just a part of what you saw as a job where it doesn’t have to be part of the specification where we have to be in agreement? CT: Again it’s a differentiator we sold that as being three components; skilling up of the client resources, side by side transfer, over a period of time. BS: It wasn’t written into the specification since it was in the proposal? CT: No, there’s no requirement 13.4 that we says that we have to sign off in agreement or that we are engaged in that. PC: I would almost frame it as an executive expectation of what Accenture brings to the table, we don’t go in put our people in there to do a job and rip them out, see you later, we’re off. BS: That is a criticism of some organizations, there are some situations they make the client dependent so that every time they want to make a tiny change no one in their organization understands they have to go back and pay to get these changes made. PC: Yeah, for sure that’s a fair criticism of the consulting industry. BS: Probably of software suppliers even more so. PC: And of the professional services industry as well, but yes, that is certainly on the engagements I’ve worked on that it has been a part of what we’ve undertaken. I don’t’ think there are any contractual obligations to do it, but there is certainly more in the expectation to do it and it makes sense, the client says we’ve got to support this we have only had 50% resources on the job, we got to make sure the other 50% that is your mob get across their knowledge into our team or the team members that take that on. We do that in a number of ways either formal documentation and or one on one discussion depending on the context of the knowledge that we are transferring, but the greater majority is documented but it’s also delivered in a face to face way. BS: So you would say it’s part of the culture again? So the same argument with suppliers is that if you are pressed with time got a deadline to meet, it’s not part of the contract, unless it’s part of the culture that follow up business is important, you would hope it would be, but there is again the temptation for individuals to say I don’t have half a day to spend with this character going through this stuff, but I’ll sign off on it, it’s all in working order. PC: It’s the responsibility of the project management team to ensure it is done; it is not up to in a way for Louise to say I’m not going to do that. We’ll make it happen, now the timing of it is always an interesting discussion, if we’ve got certain responsibilities and tasks that we need to write up before we switch the system on, we might look at doing it some time after the system is in place. So it’s the critical path consideration of what we need to do to take into account. So the timing of it is always a discussion, it’s point in need stuff in most cases, I think it’s the responsibility of the current management team to make sure that in the case where the client is picking this stuff up that they are in the position to do that. If you look at the bigger picture for 5 minutes, we don’t want their support unit or the people that have to operate this unit not knowing what they have to do because that is the whole solution and it is part of the assessment it’s normally, and should be, part of the assessment of Accenture’s role for the project. BS: The test is probably six months after the project to see how often you are harassed by the client - I don’t know how to do this, can you send someone over or how it can be handled?
PC: Generally our resource plans go like that, so we start small scale then we come down, generally where the solution goes in there is a trial of resources, so we don’t pick up everyone and we’re out on day one, we hold enough people there depending on what the client wants to pay for and what the contractual position is, but we’ll keep people there to ensure the solution is bedded down, operating and the guys have the knowledge to do what they are doing. Sounds a bit like a text book but that’s how it should operate and certainly for all projects I’ve been involved on it has been the case pretty much. LB: Also there is a specific training team on the project. Every member of that team is a trainee of Tafe employee so throughout the entire project they are getting information off everybody building these training modules and then going out and training all the other users so they are basically experts in the entire systems by the time they are delivering the training, so throughout the entire project there is a knowledge transfer all the way along. BS: Which is really important. PC: Which is what we were touching on; the project mechanics which need to happen behind the scenes, but if you are looking at getting knowledge of how the solution works and how to use it, there is obviously the formal training aspect there as well. BS: And the business of giving ownership effectively to the client’s representative. LB: Having them on the team throughout the entire implementation, they can see the way it runs, how it operates. PC: Tracey, can I touch on a number of questions just having a look at how we assess, how do we know what is useful, Edwin gives us some ideas of hot topics, I’ll speak for myself, it mainly, from my view, comes from experience because what will be useful to another job and as I said all those aspects of industry type solutions, assessing what’s on this list because no one else reviews it other than the three of us, so if we miss something that might be useful, it’s lost to the Accenture knowledge management bubble, and it never gets in there, but there is a reliance and expectation there that we are collectively experienced enough to think through what is useful and therefore, what should get posted and get shared amongst the network. And also we probably post as much as we can as well because who’s to know what a project in six months time is looking for and we may have produced here, but we don’t put everything on there, we put a high percentage of it. BS: When you say it’s lost, someone looking at a similar thing they must say they must have had to tackle volumes or loads of online registration? PC: Lost to the formal posting of it but I don’t think that happens a great deal, I would put that to an immaterial amount. I was trying to structure around there is a reliance on us, on our judgement, to determine what needs to go there but, generally we put on a lot, but I think most of the things we produce, you would produce again on a project so all of it or most of it is useful. There might be specific issues you don’t put through. CT: If the knowledge is lost to the framework, then the network comes in, in fact a lot of the questions that come through are answered on our homepage. BS: If you pick up what might be regarded as unusual or unrealistic expectations that Peoplesoft is going to be wheeled in and a click of the fingers they’ll get out of it what they expected. Do you try to pick up any of those things as well, be aware that Peoplesoft tend to sells on this kind of basis so clients may come to these expectations? CT: Again it’s the experience, come back to the network again when we post our proposal not through this mechanism, but we post it through the proposal which Paul and I go through, our sales exercises we have the information available to us being the executives and we an pull on from other databases. BS: So this will display in the proposal. CT: Therefore, we usually partner with our consortium members, we dish out responsibility for responding to, Peoplesoft or whoever, that say they can solve the world and we know they can’t, then what’s actually given to us and what is given to the client are two different things, we use our experience to make that more realistic. BS: That could be equally useful for someone else to pick up from somewhere down the track. CT: As an experience thing. BS: So if they haven’t had that experience? CT: Accenture wouldn’t build a team without experience, that’s another differentiator.
BS: Yeah, although part of the knowledge management thing is that if South Africa is trying to put in something and don’ t have that knowledge on board they may be relying on your experience. CT: Yes, South Africa would call someone in Singapore or the UK there is that network that grows. That’s where the network comes in again. PC: I spent a few hours with the Cape Town proposal six months ago, we get drawn into that stuff, Accenture just pulls from its staff. CT: I got pulled into Cape Town for a SAP job, but I hadn’t done SAP for four or five years but because of the information that I posted from the CSA job shared services, in sourcing for a government engagement, they’ve gone that fits, he’s the contact, so I’m the Griffith contact. Whilst we wouldn’t create a team without experience, we would pull from all around the world. PC: Challenges, what challenges do we have? CT: Time, that’s a challenge because we have contractual obligations meeting deadlines, tasks to do a proper job, so there’s’ the tactical versus strategic balance, obviously the knowledge management is a strategic effort to make sure we can do our good job in 6 months 12 months 2 years time versus getting the job done now. LB: There is also finding the right time to post a lot of these documents, a lot are still a work in progress even six months after we’ve implemented. We might change configurations or add new functionality, we might post it now, and then do we repost it six months twelve months time? When is a good time to post, when is it a realistic representation? PC: And when do we put the document out there in a final enough shape but we don’t want to wait until everything is fine, because we lose the time of not putting it out there, that people could be benefiting from the information, and I’m sure Edwin will come up with currency and a few of his own challenges from his knowledge management viewpoint, his is more of an operation knowledge management level where Elizabeth Ferrero is more a strategic knowledge management. Certainly talking to Edwin and other players would find more challenges. CT: Global is good but Edwin pushing things to get done from different countries is obviously different from Louise balancing things here, so the global nature of our firm is a great thing but also a challenge. PC: I’ll give an example where collective knowledge has a material outcome for us and I’ll pick on one example. We do a lot of jobs, whether they be SAP or Peoplesoft, we do a lot of jobs which are different and also the same in their outcomes, design. Let’s take a Peoplesoft engagement. We have an estimating model of effort that sits behind an engagement such as this. And part of our methodology and approach is an estimating model, a standard model that assists people to estimate the effort required to do a job of this nature. what is done at periodic times is that we feed in work plans that have run a job of this nature, into that process which gets reviewed, and estimating models get reviewed and looked at again to just check so that next time we do a job and we use this model, it better reflects the effort and hot points that occur through that. Now, every job is different. BS: That’s a really difficult task and an incredibly important task, if you get your estimate wrong you either miss out on the job or you lose a lot of money. PC: That’s right, so you know there might be different aspects of jobs, that are different but if you get the inputs of the estimating model right, then you are accounting for those differences as well, and we develop that as it goes through. This job will produce an end result work plan that will feed into the next review of the estimating model so aspects of this job… BS: It’s really important knowledge, having worked for organizations and having done estimations myself it is very difficult. If you have a set of specifications at the front, if you drive a truck that you in fact negotiate your set of specifications once you get into a job to estimate something like that up front is a really big challenge. PC: So the relationship between the tasks and also the quantum at the end are taken into account so it might be that our fixes were 10% of our total bill deficit. So it’s the relationship between the figure and the figures themselves that are important. CT: Its’ the parameters as well. The challenge is going through to the inputs the primary values and interrelations right? PC: Yes. CT: For instance the redefining of the business requirements, where does somebody like Louise or Elizabeth put that time? So it’s the challenge to make that information useful, yes we can say the project took x amount of
work days, but then we can actually break it down to the correct parameters. Then it will be useful to other engagements because with Peoplesoft x amt of institutes will take x amt of work days. We all know that’s not right. It’s things like the autonomy of the different institutes the approval nature, the governing processes we put in, the maturity of the solution in the market. BS: So your model incorporates all these factors? PC: And obviously gets improved as time goes on, but that’s a tangible business benefit of managing knowledge in a coordinated manner because clients rely on us to estimate efforts of projects of this nature and obviously we rely on it to win the business in the first place and as Bob said, we don’t want to undercut the job and getting there and have a big financial problem and resource issues, and don’t want to over cut the job because we’ll never get any. So it does have a direct influence on .. BS: Improving on that model is a pretty big step forward. PC: And improving on our methodologies as well so our supporting methodologies I think was included on that knowledge management discussion. CT: The fact that our methodology went from method 1 to BIM to Accenture delivery suites. So onwards may not be best, I mean we take some learning from going to method 1 to BIM and apply to BIM to make delivery suites and incorporating other technologies. BS: Have you guys used method 1 in your organization, pretty painful kind of exercise. CT: Yes, being a straight computer science graduate, the idea of the D225s or whatever they call it for data specifications, it was basically a semantic language to get an outcome, then we expanded that to make a business methodology. BS: Was it a paper based one? CT: Paper did have a lot to do with it. We did have forms which were printed. BS: That was the painful part of it. You couldn’t take a step without filling out three forms. CT: They were around. I used the actual DOS system and then on comm bank I was using a foundation for a cooperative processes that was actually using method one on steroids in a client server environment. I’m not a techie but that was wicked. we customised the environment which was we built all the tools for it, and the methodology was all incorporated of course. I’ve been in package for so long that to reflect on what we did it’s pretty amazing. PC: Benefits is the only thing probably I can see we haven’t covered. BS: You are the ideal interviewee. PC: The benefit of knowledge measured, that’s a tough one. We certainly see it with respect to how we estimate for effort so if we’ve got accounted (and which we haven’t been through for this project) for the fact that we were bringing knowledge, so if we were doing this job six years ago, fictitiously let’s say we’d look at an estimate and multiply it by 120%, whereas now we’d look at an estimate and multiply it by 80% or 70% these are just fictitious numbers. CT: And there’s the fact that because we know what we’ve done before and we have the knowledge available for a particular item, it’s not what the model says, we bring IP with it so if we… PC: So if we need to do a modification and we know we have to do that modification here and we have that code ready for instance, then we would estimate close to zero to do it or estimate a small number to do it so that it directly fits into the requirements. But a discount factor, if you like for catering on knowledge on a specific job is a tangible measurement if you like of knowledge. CT: To expand on that, the amount of discount that you would apply would also evolve based on your knowledge, because you may assume you can take it to a client, but if you have done this two or three times, you understand that you need to build it in a certain way it is always evolving, the capture of the knowledge is always evolving and bettering the metric that you can apply. BS: You are judging on another interesting thing because this is the codifiable knowledge that you keep going back to the fact that it is true and the individual says ah yes I’ve worked on three projects that I can’t discount by 15% because you have to tailor it and it has to be 10% so it’s another form of knowledge in the organization that doesn’t get codified.
CT: Is it the colony of ants that has the memory of the collective? I am a big one for analogies but it’s like the colony of ants, individually we have the past history or past knowledge of all we’ve done before, that we can take to the client. We haven’t worked in Cape Town or in the states. PC: Not yet. CT: But we have the ability to take the knowledge and apply it here and we have done. The fact that we have UQ, CQU, GU and UNSW at our disposal is another good point. PC: And another slant on that thing is the knowledge of people will drive the effort required. If you place Louise at the UNSW and ask her to do a job related to a job that she has done here so it cuts a couple of ways so we are handling this in the operational sense. It cuts both ways, knowledge covers an actual estimate based on what we have in the top drawer of our knowledge framework but it cuts another way in who are the people that we’ve got to do the job and therefore the knowledge, and therefore looking at a particular task, activity or project of that collective will drive that effort required, because Louise will do that at a half, third or tenth of the time than someone who hasn’t done it before. BS: Even with the accessibility to all the knowledge. PC: Exactly what you are getting at Bob. Not only what have we got in the framework, but looking at that framework and going through an assessment panel and producing a result at the end that is not formally assessed, but it is when we look at a job and what type of what we call a pyramid, we place on it which is what hierarchy do we need a manager, do we need a consultant, do we need an analyst? There is a view of how quickly given their level within the organization and they can perform a task. BS: So the level and specific experience the downside of this sometimes is that I’ve worked in organizations like this is that if you get particularly skilled and particular knowledgeable in an area they use you again and again and again. And think on earth can’t I do something else. PC: There is a trade off, and you are dead right. We have to look at the professional development and job satisfaction as well, however, I think given the fact clients need change and hotspots for what skills we need changes so much, there is so much opportunity for organizations like ourselves to reinvent ourselves. Craig and I weren’t doing this stuff three or four years ago. We are now, who’s to say we will be doing something totally different in two or three years time, same with Louise. Louise’s career just happens to follow this path. In the main, that we have done this work but in five years time we will be doing something else, and Louise will be doing something else, that would be my guess. CT: Australia is in a sort of a growing period in that when Paul and I were in Louise’s position we were very much generalists, that was when SAP blew up so we were doing SAP, SAP, but you would find it took me 6 or 7 years before I was doing same thing twice. In the UK and the US, there are a large group of… BS: Specialists. CT: People you find yourself, like I’m in education. But out of my eleven or so years I’ve been with the firm, I’ve done that three years, I’ve done supply chain for six. In the US, you will not only find yourself not only in supply chain but purchasing for your whole of your career. We are going through generalist through to specialist. BS: To have the ability to specialise to some extent but get the broad experience. CT: There are benefits of both there are benefits of specialising, the generalists, like Paul and I have developed our consulting skills or professional services skills, we have to have the ability to walk in and… [ END ]
Transcript of Interview with Partner
Date: 22 December 2003 Time: 10.00am – 11.00am Location Accenture meeting room
Level 30 12 Creek St Brisbane
Interviewers: TN – Tracey Nguyen
BS – Bob Smyth JK – Jason Kennelly Interviewees: KM – Karyn Mottershead TN: Can you start with what your role within Accenture is? KM: I am the managing partner responsible for of all outsourcing and shared services in the public sector in Asia Pacific. So the focus of my knowledge content side of things is outsourcing, public sector and shared services, and the public sector goes with both outsourcing and shared services. My geographic focus is Asia Pacific. TN: How much knowledge management plays a part of your role within Accenture? KM: Everything you do in Accenture, you don’t do from first principles. Everything we do has knowledge management as a component to it. We need to build on everything we’ve done from elsewhere and take it a step further every time we work, that’s what the clients pay big dollars for. BS: What about you as a mentor of others in the knowledge management area? The hierarchy that exists from Louise’s role as the Knowledge project manager through to Teresa in Manila, that there is something at a branch level. Is there someone who mentors her, or is that Paul’s role? KM: That would probably be Paul’s role she is one of our consulting staff, so the direct mentor to her. One of her role’s she’s been appointed is the knowledge champion role, as well as other things. BS: I got the feeling there is someone in the branch that took some responsibly in advising her but that is clearly not your role? KM: No formal partner, knowledge management is back office from our perspective, our fulltime knowledge management people are seen as part of our enterprise workforce, which is back officer workforce. She has a role to play on that project team, which is a temporary role, and then she’ll move onto another project where someone else will do it and they will liaise with the fulltime knowledge management professionals who are in our enterprise workforce. BS: So this is Teresa in the Philippines? KM: It could be anyone, the ones in Asia Pacific. I don’t care where people sit, don’t even ask, they could be there, I think they are, they were all over the place. BS: Sorry Tracey, I wasn’t clear on that in my own mind and I thought there was a linkage. KM: And there might be a partner somewhere in Accenture, somewhere in the world that is a partner in knowledge management. BS: But it’s not a line responsibility, it’s more of a back office. KM: No, well it’s not a revenue raiser, it doesn’t directly revenue raise, we don’t do (at this point, but we may in future) knowledge management for clients and they pay us for that function. BS: I just thought levels of seniority, in terms of guidance for that person in a temporary role. KM: But both the client partner of the Tafe deal and the CQMA Quality partner of the Tafe deal, ensure that knowledge management is being undertaken and referencing sources and contributing to the knowledge repository.
TN: Do you have processes that enable you to carry out knowledge management better in the organization? KM: Yes, I’m a partner, we don’t do the bottom level stuff, we ask the right questions, like CQMA process, that has 17 questions and then a checklist that needs to be filled out. I make sure that covers knowledge management, I make sure it’s incorporated, in there the rest of the ... It’s better if I draw. (Draws diagram). I think that there are various parts, you went out to Queensland Tafe right, that’s one aspect of our organization where we are delivering a design and build implementation project. That earns us dollars, that’s the revenue side. There a loads of other things we do. Such as we might maintain, such as outsourcing, IT applications, we might be doing business process outsourcing, we might be in the finance area for an organization or the HR section, they might want us to do planning work or strategy related work all these things earn us money. And everything in our organization is linked to making us money, that’s why we are who we are. To get to that point a lot of other things happen. We might publish research, we have our labs that do research by themselves, we might put in a proposal, we might prepare a presentation, we might speak at a conference. So all those kinds of things, we don’t get directly paid for but they all contribute to knowledge. All the people involved in the frontline, then there are things that happen back here, supporting and things frontline that support here. And that’s where knowledge management sits to me, it’s embedded here and used at times, but not right at the front face with the client, knowledge management has an internal component and an external component and the technology component. Internally we create a lot of stuff, our own way of thinking, our labs and concepts, younger people thinking of concepts and us packaging it. And making sure that I delivered a speech at a public sector shared service conference a big thing all around the world. The first thing that happens after that, is that my speech presentation is sent to the knowledge management helpdesk, and I say I just delivered a speech, make sure it goes to the right place. I have no idea where the right place is, because we have a search engine find Accenture.com you go to that and it searches thousands and thousands of repositories so I don’t need to know. Three years ago I had to know because I had to go to all the different knowledge exchange databases and search each one, now I have a search engine that does it all for me, that’s an example of internal, but I had to prepare for the presentation speech I got a whole heap of information from all stuff we had done, we had done a research paper on public sector shared service which I launched at that conference but while that was being developed internally, I was contributing to that paper and writing sections of that paper and reviewing it, so knowledge management, that was very much internal knowledge management, although to do the research paper, they had gone out and gotten external data as well. The external component is making sure that we have at our fingertips benchmarking information or we get pushed into new stories that are relevant to us, we get told about, we cut deals with Saratoga Institute for HR benchmarking so we can access it or American productivity council so we can access those benchmarks, we get pushed websites that are useful to us and that our clients are using. BS: That’s wasn’t something I had been aware of, it came up with our discussion with Paul and the Peoplesoft implementation, because of course, the RMIT had very bad publicity and I asked if they had access to that and of course they had. It was a similar sort of thing, what sort of mistakes did they make externally that they could avoid. KM: So there is a Peoplesoft repository that has all that and then the technology component of knowledge management, like I said two or three years ago I had to go and search because I had been around so long I knew 1,000 or 1500 databases, which still exists but it has been ported to the internet. Not all of it has but our find Accenture.com can go around and find what we need as well as go externally and find what we need. So on internal, which I said was documents, is also region based, communities of practices, its homepages, its’ not just documents, it’s communities of practice with a discussion database, which shows all the questions, so if I go public sector shared services, one of the things it will come back with is there was a discussion on it, like a chat room, a question about public sector shared service, or 15 resumes with people who said they have public sector shared services experience, or it will come back with credentials or write-ups of projects where public sector shared services was mentioned in the write-ups or homepages, which represent that or the documents and everything like that, so it’s content management, any content recorded there, not just documents, its everything. And the technology is getting better and better, what’s the latest thing they’ve put out there is that if I’m out on the road and I need to contact someone, I just send an sms, a person’s name to a 1800 Australian number for Accenture and within 2 minutes it will send me back the contact details for that person. That happens every week, there’s something new they’ve researched like instant messenger in a way to shorten what you do to make it quicker, there’s a huge technology component to make sure that all this guff that’s created here and stored here and created here and sent back here and taken from here to create here, there’s an awful amount of people that research that to make sure we are one step ahead (referring to diagram). BS: So technology give you that timeliness wherever you are, it strikes me that organizing the knowledge must be one hell of a job as well, because you have all these sources pouring it in there, you need to have it in a form that you can access it pretty well, presumably as you said, that’s the role of the staff group you said. KM: That’s right I send them the presentation and they figure out the right place for it to go, they vet it first.
BS: They index it in a variety of ways too. KM: They know me but I might be any random manager and it might be a poor presentation so they will actually get someone to look at it who has got the right to review it and give it accreditation. BS: Something that should be given a priority I guess effectively in terms of access. KM: If it’s inaccurate then your knowledge management function doesn’t work and then you are distributing useless information. BS: And it causes double embarrassment. KM: So even if they know me, there is a process to review it, sometimes they will put stuff up there but they will indicate it is yet to be reviewed. BS: So use at your own risk effectively? KM: Yes, so I think they’re the major ways you can capture knowledge management so when you say do I have a process, well it’s like there’s a process here, here and here, there’s millions of processes in the organization, it’s not like we are at the knowledge management bit of the process, it’s embedded in everything we do, the basic principle is you reuse whatever you can, if you have been allocated six days to thought process to this task here, if you can get a great deal of base materials used somewhere else’s, you can spend two days getting together the base gut process and four days thinking through, customisation and thinking through. If you start with a blank piece of paper you will spend five and a half days getting the base there and half a day thinking about the differences I can do. BS: Seems to work pretty well, last time I was pushing what was the incentive, picturing myself in Louise’s shoes, where she’s got tight deadlines, and I’ve seen these sorts of things with documentation it’s a good example, where people say I’ll do it later and never get started. What’s the incentive to do it and it does seem Paul kept coming back to culture: you get rewarded for doing it and get assessed on your contribution for doing it. You very necessary do it because there would be is the temptation to get the jobs done and set it aside and do it later. KM: There are a number of ways to incentivate people. The kind of emotional incentive is that you can’t just take without giving back. If you‘ve taken advantage and that’s helped you to do your job just imagine what you can then do with that and then improve it, it will help that poor sucker coming in behind you through the ranks behind you. And stewardship is a core value of everyone in the organization which says you leave the place better then when you arrived, so you constantly make the place a better place for those following in your footsteps and that’s a core value. BS: I did come away convinced that it does work, not just talked about. KM: But also in the review process in my group, my guys, is that they’re annual review process, they have to document how many communities of practice they have gone to. If you are part of a community of practice you get called into conferences, copied on emails where people have asked questions, so communities of practice could be Peoplesoft, IT infrastructure maintenance, network management, HR, human performance, could be anything. My guys, as a minimum working in this area (outsourcing), have to be part of the applications maintenance communities of practice, but those ones at Tafe must also be part of Peoplesoft. BS: Communities of practice, amongst other things, it has a list server and a list of all the things concerning… KM: Pushed into your email account. BS: Questions, comments, anything? KM: Questions, answers, but there are also communities of practice that arrange teleconferences, all those kinds of things that you can either attend or get pushed the materials anyway. So you can see what they are going on about and that might by internal people or by external vendor or thought leader external to us that arranged to speak and that’s worldwide, the communities of practice aren’t local, they are global. BS: So they aren’t regional. KM: No they are global, there’s one community of practice, everyone is on it, if they have calls, they’ll do two calls at different times zones around the world by the same presenter and materials or do one call and tape it, a lot of the stuff is recorded and you can listen to the teleconference so you can access it at your own leisure and listen to it and available thirty days after where you can call up and ask about it.
BS: So do all your people complete timesheets? KM: All people at Accenture complete timesheets, they can’t forget we aren’t an accounting firm. BS: It comes back to when I was at IBM with timesheets where there were rules to how you could fill out the timesheets, presumably there must be some allocation of research of activities or is it not that rigid, simply that someone will look at timesheets of someone else and say it looks like they are using they’re time productively. Is that how it operates? KM: There are multiple level of timesheets that support that you will get paid and there are running a project and they are not the same thing. There are project timesheets right at task activity level, Accenture timesheets are at the whole project, highest level purpose is to get the financials right to say if the Tafe deal is making a profit or a loss for costing. BS: My memory is that they were used for all those sorts of things for billing but also for assessing the individual and saying he or she is being productive. KM: But that is not charging knowledge management, knowledge management is embedded in the price the client is paying. BS: I know that, so Accenture needs to make some sort of allowance for that, if you are spending half a day for a knowledge management task where they are not spending on billable time. KM: No, because knowledge management task is contributing to billable time or business development or marketing time. BS: So this is an attitude by the firm to say this is not wasted time, this is time that’s going to pay off in terms of billable stuff? KM: The time report is very outcome focussed, related to an activity whether it be client faced work or market development or business development work up here, numbers are assigned to those activities and you do whatever activities you have to do to get those outcomes but you don’t break it down to components or processes you take, knowledge management is the process not the outcome, these are the outcomes, our Accenture timesheet has numbers for the outcomes not for the process. Whereas on the Tafe project, every team, every team member there, would be saying how many hours they spend on each different processes, tasks, which is more a process level. BS: Business activities, tasks. KM: Is absorbed into that, it is not it’s own thing. BS: So with billable stuff, if I spent half a day on knowledge management, if it is seen as contributing towards outcomes, then it doesn’t appear on a timesheet as half a day of knowledge management? KM: Not in Accenture timesheets. Paul may have set it up so, and given a knowledge management bucket to this girl to do it, but it would never appear on an Accenture timesheet, because it’s part of the Tafe deal that’s a part of our process. So they’re kind of the components, it’s the two way thing that needs to be there, it’s just everywhere, endemic, it’s hard to think about it as a thing, it’s just everything we do, I wouldn’t sit in an office for a day and not use something that you guys would call knowledge management, like you are looking up things all the time, on whatever I’m working on to make sure it’s.. BS: It’s not a new part of Accenture either, it’s been around since the early days of Andersen consulting days, it was a big deal and a differentiator even back then. KM: Yes it was, we thought we were the leader, we knew we had the biggest Lotus notes, I think knowledge exchange, in the world, but you know I’m not an expert on what the competitors are doing anymore. But the people who come here from our competitors usually are amazed at the truly global nature of the sharing of the information and that you can access so much and so quickly and so easily. BS: I remember in going to a brief demonstration in the Andersen consulting days and being blown away and being way ahead of the pack it seemed to me. KM: It’s our business model that has allowed that to happen because it is truly a global firm, we share revenue, we share everything it’s not like offices have their own P&Ls and don’t want to lend people because they’ll lose revenue there are all the variables in the organization that has allowed us to maintain that and still maintain.
TN: What are some challenges you face with knowledge management being embedded in everything what are the challenges and difficulties you come across when trying to draw back on knowledge? KM: Well obviously too much there, and the filters need to, people need to understand how to filter and find, particularly younger people who aren’t as experienced will get caught up in that there is that much and will want to look at it all and will get completely confused on how to use it. There is just too much to deal with until they have more experience, it can distract them from what they are trying to do, sometimes they are plain lazy or don’t understand enough and plagiarise something from six different presentations and it doesn’t flow and work, they haven’t tailored it properly and but hey I’ve done it but that’s not good enough. BS: It’s a good point really, if you are lazy or inept, it would be a tendency because it is all there. KM: Yes, and then you go explain it to me, because they obviously didn’t get it or spend the time getting it. Typically it usually doesn’t happen but like every organization it is a risk that someone will do it. Particularly, not so much on the bottom path, most of the people doing that work are responsible for more of it, they really do need to understand it, but on the top work a partner doing a presentation, but someone else is preparing the base stuff, because typically I don’t do that, but I have to do a presentation in January, and I’ve said I’m not preparing, you guys prepare it because it’s not one of my core areas, there are specialists in the firm in the area, they just want me to the speaker. BS: You present it, they are the speechwriter, and you are the presenter effectively. KM: I wouldn’t typically do that, I usually present in areas I am an expert in, this is something that I’m ok at, there are a lot more people that are specialists they just want me to be the face of Accenture for other reasons. So I said right you guys go ahead. BS: So you got to rely on the fact they don’t go to a bundle of sources that patch something together that’s not going to be as good as it should be? KM: And of course I factor in days before hand so that I can go through it and feel like an expert then I can learn it in 48 hours as opposed to it would take me to learn the whole topic, it will take me a couple of months, shortens down that process time. Proposals, responding to request for proposals in government, that’s where we make our money if they’re not good, we are screwed. Obviously we have very good people working on it, but we need to use grunts too. That’s where the new graduates are thrown if they are not on a job, they are sitting in the office and this proposal hits, it is nothing to have proposal teams that are 20-30-40 people big for projects 50-60 million dollars there’s a lot of work on them, there is going to be a hierarchy, you will have people on the bottom that are told to get these credentials or find these resumes or answer this question, use this material, that’s where they don’t actually see the impact on them, to them I’m there creating a piece of paper, they’re dealing with a client, the thing might fall over if they don’t do it right. So there’s a much closer link to how it hurts them, if they don’t do it as thorough as they should up the top. They might be dealing in an area they don’t really know much about, they can’t really understand where it’s going to lead. And they aren’t getting a lot of supervision because everyone’s got so much to do. BS: So it’s easy to take things out of context and not quite get it right. It’s important to talk about this because if someone gets it wrong at end of day, you don’t get the business or you get the business at the price you can’t meet. KM: That’s the baptism of fire for the young people in the organization, because it’s in proposals that the sections get reviewed and reviewed and reviewed, and someone senior reviews them and if it’s not good enough, all the wrath of god comes down on them, they do figure out that we are on to them. There are friends of mine now whose first experience was working with me on a proposal and what a joy it was to be presented back with pieces of paper that were so red that you couldn’t see and being told, and they went away from that and then understood that they then did it and then would see other people and say you did that to me and that’s because I got it from her and it goes down the line, and people understand you don’t want to present something to someone that you don’t believe is 100% ok. What will happen is young people who haven’t got it yet in their head, which is not to say that all young people are like this, I can see the generation differences, and it’s the universities fault for not teaching them the right things, is they will think that person knows more than me, they’re going to review it, I’ll put together what I can, and then they are going to add, sort it out, but of course we didn’t hire the cream of the crop in this organization, for them to expect me, because I’m an expensive writer, to me to write a section where they’ll actually learn something if they apply themselves. Nobody ever at uni handed in a project assignment where they were at second draft stage, it’s getting reviewed then by someone who is going to mark it, treat me the same way, I’ll judge you from what you put in front of me, if I have to completely rewrite it and I rewrite the first page and then there’s another 10 pages, and I say that’s the quality I want for the rest, go and do it yourself, I’m not here to write it for you. That’s a real challenge that they will think that because they can get all this base stuff that they can stop there and won’t take it to the next step, which is to understand it and put it into context of whatever use you are using or whatever use we are making of it in that case.
BS: That’s a problem of universities as well, I mean that is, I wouldn’t claim students leave with those skills as much as they should. You still come across it in final year, students still can’t synthesise materials enough and relate it to a particular situation, they want to take it from the context it was in and almost leave it there and transplant it to a different context and that’s just not on is it? KM: No. I was doing an annual review with a senior manager, a very good senior manager. This is the time you have to have your own ideas of business, you just can’t have the firm’s ideas about business or government or what you read or what you heard me say in the last meeting as your idea. We are all generating ideas, that’s what we do from all the information and knowledge flowing into us. We come up with a different way of saying something that explains it better to our clients, we are not inventing something completely new, but we’re representing it in a way which makes a lot more sense to our clients and then our clients think we know what we are talking about and for you as senior manager, it is a key thing you have to have things where you go home at night, I had a great meeting with clients because the stuff that Karyn told me or that I heard Karyn say at a meeting last week, I kinda did that with another group of people where that was relevant too, and it worked really well. You have to go home at night and say, I came up with a Mottershead theory, or a Mottershead cost model, that’s my ideas and I’ve taken stuff and created a model or idea. You have to go home and with your own idea. BS: Psychologists call it internalising your knowledge. It just can’t be stuff you grab like a magpie. KM: And patch together and parrot back. BS: You have to assimilate things together so it’s yours. KM: And germinate an idea. You can’t just sit down and say I feel like having an idea today. After you’ve done that, hopefully you come out with something you recognise as originality as your own. BS: It brings commitment too, it comes from inside you as well. KM: Well you’ll never forget it, the personal ideas you’ll never forget. The ones you’ve borrowed and pulled together, where you don’t need them anymore, you’ll drop them, it’s that simple, so yeah there’s too much of it, they don’t use it appropriately, they don’t go far enough, and of course they don’t contribute it back, they are the challenges. I think we’ve got a lot of that sorted in terms of we have a lot of stuff going back in and going out. BS: The other danger would be tokenism. I mean if you are going to be measured, it would be easier to do the easier stuff and grab all the documents you’ve got and chuck those in, there I’ve contributed and I’ve thrown these 30 documents into the knowledge base, you need more than that don’t you? KM: Yes, I think that what is helping on this front, is that we have the technology and processes in place because the clients want to see the documents. It’s part of the contract that the documents are maintained, developed and left there, or we are going to keep using it, so if you’re building up the knowledge repository out here, its’ very easy, then at a set point to send it back. We’ve made it easy for people, the incentive is there to extract it out, no one wants to start with a blank sheet of paper in this organization, so that incentive is there. The incentive to get it, back in the old days when I was writing projects, we had different disk drives all over the place, and we didn’t have networks in place, it was hard to get all the floppies together and send it off, I mean we didn’t have the internet but were still trying to do all that, and now we have built a repository here with team services or share point and put all the documents there. BS: It seems to me though, Karyn, that you get a lot more value, Paul talked about a preface, that they could be incredibly important, that if you just installed Peoplesoft at a mining company, a couple paragraphs there are these things to look out for or be careful of this, or in this sort of environment these are some things we found out that don’t work well, is so much more valuable to me than those documents that specify this, or that the components of the things, so someone could just have a look at that and say my god, yes I’ve got to watch out for that because I’m in the same situation. KM: The only point there, is that information is very useful, but from my perspective much more useful if contributed back in the community of practice, because they are doing something about it as opposed to someone reading about it, then the next time they have to remember it, or read it and then say let’s not do this, it’s better if it goes back as well as there into the community of practice, which then revises the methodology, so that is embedded in there and everything people use. I don’t like people having to go look for tips and tricks, we want the tips and tricks embedded back into the methodology or otherwise it is too hit or miss. TN: Paul did mention that time was a challenge in terms of some projects. KM: That’s because they are lazy. TN: Paul said that some projects are very time dependent so on those projects there are less opportunities to carry out the full processes of knowledge management so sometimes you can lose knowledge.
KM: I mean, in the reality of life if you are tyring to build a system, and then trying to get it to go live, then the things that will drop off are knowledge management, whether that drops off the entire project and not done later I don’t know, but certainly in the priorities of life, the client and product or whatever we are delivering, is going to come first. It’s whether or not it’s rescheduled or cancelled is the issue. I would say it should be rescheduled, that’s what the CQMAs would be identifying, that the materials are being collated and catalogued and logged in the knowledge repositories of the firm, is what the quality partner is meant to ensure when they are doing their quality reviews apart from other things. TN: So it’s not so much of an issue because it’s rescheduled? KM: Yes that’s the process that should be followed. TN: And what about measuring the benefits of managing knowledge, do you look at qualitative, like financial or non financial measures? KM: You have to talk to the knowledge management professionals, I’m sure they know, they do the hits, which documents have been hit the most, what’s the most ordered, because once you go in you can order materials, you get a survey in your email, an automated survey that asks you to rate the material, so there are all these surveys (I delete all of them) but they probably like every survey, aim for 20-30% people that actually take the time to fill them in , but it’s all automated. BS: What usually happens is that the people with the strongest opinion respond, I thought this is the best one they see. KM: One of the good things is that you can send it for someone else. Like I can order the material, but I’ve seen it because I think it’s going to be good for a client, but when I order it it’s not for myself. I just put in the head person’s name down there and they are sitting there and one day they get that and thinking who sent me that, but it’s really good. Then I say, did you get that? And they say, oh it was from you, because it comes from the automated sender not from me. BS: So there is no feedback on this, it would seem to me if you are putting stuff in there that people are accessing all the while and saying this is terrific stuff, it would be useful for someone to know about that. KM: Some things that are under my name, I can see how many times it is ordered or if there is any feedback they make sure that I receive that. BS: But even firm-wide it would be useful, you were saying young people when they come in aren’t sure, they get this masses of stuff available to them, they say what do I choose, where do I go? If they knew that John Smith always produced terrific stuff or was the expert of experts you’d might tend to look at this before you look at others. KM: You can see the most recent, the most popular items in different speciality areas, you can see what year they are from, date, year, what purpose they were produced, who produced them, who to contact if you want more information, so you can follow through if you find something you really like, I’ve done that before I’ve followed through, and talked to someone I’ve said, I’ve really like this could you give me more contacts, is there other stuff you didn’t put in, that might be useful to me because I’m doing something really similar. BS: And the philosophy is that person, if they could possible give you the time and you giving the same reciprocating. KM: Absolutely, I probably get 5-25 requests from people I don’t know a week and I respond to every one of them. That’s absolutely core value in our firm, you never don’t help. TN: Ok I think that will probably cover it for today. BS: It was very useful today I know your time is very valuable. Useful to Tracey. [END]
Transcript of Interview with Knowledge Management Professionals
Date: 6 January 2004 Time: 12.00pm – 1.00pm (Brisbane, Australia) 10.00am – 11.00am (Manila, Philippines) Location Teleconference
Level 4 Room 408/9 126 Margaret St Brisbane
Interviewers: TN – Tracey Nguyen
GG – Guy Gable BS – Bob Smyth
JK – Jason Kennelly Interviewees: TA – Teresa Azicate
BH – Bettina Hipolito GG: Hello Tess and Bettina thanks so much for agreeing to be in this tele-interview I guess. I am Professor Guy Gable, with Queensland University of Technology, the three of us, Tracey Nguyen who is the Honours student on the sub-study and Bob Smyth who is the senior research associate on the project and Tracey’s primary supervisor at this point. TA: Ok. GG: I should let you know and re-confirm that you are in agreement we have a mini-disc recording, are you ok with that? TA: That’s ok. GG: We have terrible memories here and it’s very useful to have that transcript to resort to. We will send you a copy of the transcript to vet and ensure that we have not misconstrued anything you have said. TA: Ok that would be good. GG: I will comment very briefly on the larger project I am leading, within which this sub-study is being pursued. We have just had another colleague enter the room, Jason Kennelly, he’s an associate supervisor and also a PhD student on the parent study. The larger study is, I won’t confuse things by talking about other aspects of it, but the main objective of the larger study is to explore sources of effectiveness from better integration of knowledge management practices and strategies of consultants and their clients. In order to explore this, we are targeting Australian federal government as the client organization, Accenture is the consulting organization, and we seek to, in these prelimary sub-studies, to better understand knowledge management strategies and practices of Accenture and federal government. So Tracey’s honours project is specifically looking into knowledge management strategies and practices of Accenture. Does that make sense? TA: Yes it does. GG: Ok, with that very brief background I am now going to hand over to Bob Smyth who will just give you a little bit of background of what has happened on this sub-study to date. BS: Hello Tess, hello Bettina, it’s Bob Smyth here. TA: Hello. BS: I thought I would give you just a little bit of background of what we have been doing to date. And tell me if you have any difficulty hearing. We have been working with the people from Accenture in Queensland as our partners on this project that Guy mentioned to you, and I have worked with Tracey already, to interview some people from Accenture in Brisbane. Were you aware of that? TA: I think that there was a brief mention by Paul, who had mentioned that you guys had spoken with other folks from Accenture. BS: Yes, thank you we have spoken with Paul himself, with a young lady Louise, who was a knowledge champion on a particular project, and more recently Tracey and I have spoken with Karyn Mottershead, who you
may probably know as a partner in the Brisbane office of Accenture, and they have given us different perspectives on knowledge management and how it is managed by Accenture. And what we are keen to do today is to try and get some insight into how you deal with the knowledge that they pass onto you. TA: Ok, would it help if I gave a brief background on my role and Bettina’s role before we start with the interview proper? BS: Yes, that would be excellent Tess. I know that would be one of the questions Tracey would ask you. TA: I’m one of the managers in Government Knowledge Network. The Government Knowledge Network, or GKN, as it is more popularly known, is the knowledge management support group that is dedicated to supporting Accenture’s government practice. GKN is practically an offshore facility here in Manila. We have about twenty one people on board right now, but in addition to that we have about four other colleagues in different parts of the world to help deliver our knowledge management services. BS: Can I interrupt for a moment? Where are they located, just as a matter of interest? TA: We have one person in Vancouver, Canada, we have another in Reston, US, these two ladies are the ones covering the United States and we have another person in London, and another in Brussels, Belgium, and the two of them cover Atlantic and Europe, and Bettina who is with me on this call, is covering Asia Pacific. GG: Will you at some point tell us who the twenty one people in Manila are, and what they do? TA: Well we have, basically we are split into three groups, the biggest group is my group, which is, we call it the client group support team. The CGS team is dedicated to working directly with client or project teams to effect knowledge management at the opportunity as well as the project levels. I have nine people here in Manila that includes Bettina, and the four others I mentioned around the globe. So I have about thirteen people on board, the other team is called the client development and packaging team or CDP, that is headed by another manager, senior manager, who is the director of GKN. This team works with industry executives, by industries, I’m not sure how familiar you with the structure of the government operating unit of Accenture, but we categorise business from the government clients into major industries, there would be about six major industries and another government other industry. There would be health, human services, revenue, postal, that type of categorisation. So each of these industries would have executives within the government practice, and the CDP team works with the industry program executives as well as the subject matter experts from these different industries in determining what knowledge should be created or made available to the practice, to support the industry strategies or the focus of the industry business for government. So, and then there is the third group which is a very small group, it’s called Program Management and support. It’s headed by a third manager and she has only currently two people on board. They work on providing information to the program management of knowledge management so any ad hoc requests that we need, say metrics, tracking, performance of repositories, troubleshooting, technical glitches in the repository those kinds of things are dealt with the program management and support team. GG: All very useful, thank you. You mentioned opportunity and project levels, I may be demonstrating my ignorance, there maybe someone in the room who already knows what that means. TA: Very understandable, we may slide into Accenture jargon, and you are going to be forgiven for not understanding what those means. GG: I think I know what project level means, I’m not sure I know what opportunity level means. TA: Opportunity, we call it, when we deal with a team that is pursuing an opportunity with a government client, meaning an opportunity hasn’t been won yet, so we provide, basically the services we provide are more in the area of research and assisting with the packaging of information that could go into proposals or presentations for target clients. When we say projects, this means we have already won, what used to be an opportunity, so we are working with a team that is now in the delivery phase helping the client implement the project that has been proposed for them. GG: Yes, thank you. TA: And Bettina here, as I mentioned awhile ago, we call these people who are posted in different parts of the globe area coordinators. So Bettina is area coordinator for Asia Pacific. And the area coordinators by themselves are quite distinct from us, because basically they are the people on the ground; they are the ones who deal directly with our customers who may be affected by time zone differences. Asia Pacific is not too difficult to deal with, we are what plus three or minus two, we none the less have Bettina to help us to address their immediate and urgent requests. And maybe Bettina can give you more insight into the other roles as the area coordinator.
BH: Ok, operating unit coordinator for Asia Pacific as Tess mentioned earlier. I’m part of the group that’s on the ground and I liaise with government personnel throughout Asia Pacific, so that includes Australia, North Asia and South Asia and that also includes Japan. Perhaps we will be delving more into the tools we have like the helpdesk later on, but just to give you an idea, operating as the area coordinator, I help monitor the requests that goes through that tool and channel them to our pool of researchers, that Tess mentioned earlier. Also on that program, we will be discussing later on, the client team services program through which we help find teams and share and contribute knowledge. I help validate these targets and look into the potential opportunities that would need our knowledge management support. So that’s basically it, I’m the point person for Asia pacific and I liaise with government personnel throughout Asia pacific on behalf of GKN. BS: If I could just intervene, it’s Bob Smyth here again Bettina, do you then have a role of communicating with the knowledge champion on specific projects? BH: Right, that’s correct. BS: Right thank you. BH: You’re welcome. GG: I’m again not covering ground that has already been addressed by my colleagues, I was not involved in the previous interviews, but GKN is one of several of these such operations existing within Accenture? TA: Yes you could say that, GKN is the proper name, I’m not sure what the other knowledge management support teams are called but each operating unit in Accenture would have a dedicated Knowledge management support team assisting them. GG: Would the others be located in Manila as well? TA: No, I think of all the operating units, it’s only government and probably products. Products have a smaller team supporting out of India. But that team supports, only, performs only a subset of the knowledge management services because they still have knowledge management personnel in the US and Europe. I think it’s basically the government unit that has an offshore knowledge management support group. So in a sense, the structure for the government knowledge management support group is a little bit unique compared with how the other knowledge management support groups are organized. GG: Would you have any views why this is so? TA: Well it started in 1995 when the GKN was first created under the sponsorship of the then government operating unit managing partner, David Hunter, who is an Australian by the way, he thought that it would probably be best to have a dedicated team established for government. But being one of the, what you might call it, being at an experimental stage at that time, of course, was to an interest in keeping the costs down, cheaper to have a support group operating out of Asia then out of the US or Europe, so the choice was Manila, because we are cheaper and we have a very good facility with the English language. GG: Perhaps he also didn’t want it too closely associated with Australia. TA: Well I think Australia is expensive, that is basically one of the basic factors that they looked at, the cost of operating a group at any specific location, and the fact that we had a strong administrative team here, handling Accenture Manila, it was very easy logistically to have another team located here because all the HR, finance, accounting and other matters can be dealt with. GG: So this was all kicked off in the mid-90s did you say? TA: It started in 1995, June 1995. GG: Thank you. TN: Bettina and Tess, this is Tracey. TA: Hi Tracey. TN: Is there any collaboration across your units, like you have the GKN and the products, your knowledge management support unit? TA: Can you please run that by me again? I failed to grasp the context of your question.
GG: Is that GKN is of several of these knowledge management support groups within Accenture, is there much coordination across these groups? TA: Yes. I would say they are largely present where there are global knowledge management initiatives. So for example, one example is the Accenture client experience database. It is a database that houses engagement records of projects undertaken by Accenture as a whole so each operating unit is represented by that database and you have a global team managing that initiative. So where the initiative is global in nature, that is it is not specific to a unit, then you would find there is a lot of coordination between the knowledge management teams, but there are also a lot of initiatives that are particular to a unit, you don’t really coordinate with a lot of the other knowledge management groups. GG: Right, that would be the specificity would be with regards to content, I suppose. I am wondering whether or not there isn’t a lot of consistency or standardisation of tools and techniques and processes and such across those knowledge networks? TA: There has been an attempt at the global level to institute standard approaches and processes. I would cite an initiative - the client team services initiative, you will hear about this more from us later. We call it the CTS, client team services , it was an initiative undertaken at the global knowledge management level a few years back, the intent was to come up with a standardised approach in terms of offering knowledge management services for project teams, the objective was to ensure the quality of services was consistent across operating units and at the same time we don’t end up contacting or harassing, contacting project teams, or project teams don’t get contacted by different people from different operating units. Because there are projects shared by different OUs (operating units), for example, a government telecommunications project would be shared by the government and telecommunications unit, what we wanted to do was prevent different operating units all asking for the same thing. So one of the main objectives of the CTS program, a few years back, was to ensure that the operating units’ knowledge management professionals coordinated, with respect to, offering knowledge management services to clients and project teams. I say a few years back because with some reorganizations in 2001, there were some, the reorganization resulted in some changes in the way the global knowledge management programs have been organized and implemented. So in 2001, the CTS program as directed by the knowledge management group before was left to each operating unit to implement. So right now I would say that we are back at the previous stage where we are doing our own thing and the other knowledge management groups are doing their own thing but given the knowledge management initiative before, I think that every operating unit is quite vigilant about coordinating with the other knowledge management groups and other operating units, when they come across projects or tasks that they feel might cross over to other operating units. So there is still that top of mind vigilance that we need to make sure we need to work with our fellow knowledge management folks in other operating units. GG: Yes, thank you. BS: Tess, it’s Bob Smyth here again. A very important area that we are interested in is your role in assessing, classifying and indexing and generally evaluating the knowledge that comes to you from the individual project teams, can you run through the sorts of processes that you follow there and how you classify the knowledge you receive for access by others. TA: There is a different team that takes care of the content architecture of the repository. The content architecture is actually driven by the global knowledge management group, and each operating unit would most likely have their own repositories and portals, but we make sure that the content architecture defined at the global level is implemented or executed within the respective repositories. So as far as my team is concerned, our general role with respect to indexing and classifying information is to make sure that when you receive documents that are to be housed in the repository, that we complete all the fields that are specified in the contribution forum and follow or tick off the key words. Now how the other team works with the global knowledge management group on the content architecture, is something that I am not too well versed on, except that they work together and that they have a system by which they agree on, what key words, what fields should be made available, we call it the knowledge vocabulary, so this knowledge vocabulary is what is implemented across the different operating units. GG: Tess, I am concerned we are asking too many questions too soon. TA: That’s ok, there are some questions I am not as well versed on mainly because I am not directly involved with that. GG: We are most happy. BS: True. GG: Did you want to carry on further with background information. Should we continue with our questioning or did you want to say more?
TA: I wanted to know if you understood the answer I gave a while ago with respect to content architecture and knowledge vocabulary? GG: Yes I do think so, it would seem clear there is a certain amt of standardisation at that level. I don’t think we have any more specific questions. BS: Yes well I do, I’m not entirely clear on the task of assessing the quality of the knowledge that comes to you and you say that is not one of your roles that you perform specifically. TA: Only with respect to, you had a question about how we index it. That is taken care of by another team. In terms of quality what we do is, my team works directly with a project team and we encourage them to practice knowledge management at the onset of the project and the mechanism by which we do this is to have a knowledge champion designated from among the project team members. The champion works with us, the champion asks what his or her roles will be, to ensure that their project knowledge is properly contributed to the repository and if they have any requirements for information we are informed so that we can do the research for them. With respect to ensuring the quality of the project contribution, my team, I have a team that works with what you might call client team services coordinators; they work directly with the knowledge champions. One of the major things that they do is to develop a knowledge plan for each project under the knowledge champion program, or the CTS program. The knowledge champion works with my team to define what the potential contribution from the project maybe made at a later time or throughout the project life cycle, and determining what should be contributed is a product of several things, let me try and back track, and tell you about one of the documents or one of the deliverables one of the teams CDP, content development and packaging team, puts together, the CDP works with industry program executives and subject matter experts to develop what we call the knowledge capital plan, or is now called the knowledge strategy, it’s the same thing. The strategy or knowledge capital plan determines what kinds of knowledge content should be made available to support the industry direction for the current fiscal year, to support the business direction for the industry. And This team does an audit of what knowledge is available in our repositories, government repositories and also tracks what knowledge is in demand or is needed but not present in the repositories, so that is tagged as a gap, and the gaps are then are noted in the knowledge capital plan, and my team uses the knowledge capital plan for defining what knowledge should be harvested or secured from certain projects so the gaps may be filled. Is that clear so far? BS: Yes, very valuable and interesting so far, thanks Tess. TA: Ok, so that’s one of the basis for determining what should be contributed from the project. Another basis would be specific knowledge types, we call them knowledge types, marketing material, a work plan, um, a communication plan, these are knowledge types that are typically produced from certain types of projects, so we would have a roster of the typical knowledge types that can be harvested from certain types of projects so that is another basis for what should go into the repositories. Now the emphasis in looking at typical knowledge types is that since they are typical every project produces them, and the intent is that we have the latest, most updated version of a knowledge type available in the knowledge repository. BS: Can you give us an example of a knowledge type, Tess? TA: A knowledge type would be like a work plan for a specific project like say for a financial upgrade project. Someone is looking for a typical work plan for that sort of project then we need to have the newest version of the work plan regularly contributed to the knowledge repository. Another knowledge type would be a proposal. If someone is looking for a proposal for a business transformation project in a certain sector, then we need a newer version for that regularly contributed. So this list of the particular knowledge types fit into certain categories of projects is also one of the basis for identifying what content should be contributed. BS: That’s very valuable, thank you again. TA: Ok, at the same time we have a separate program, outside of GKN, outside of knowledge management for that matter, we have QPI, or Quality Process Improvement program that is implemented across Accenture, and for government, we work directly with the QPI folks dedicated to government, the QPI folks are the ones that ensure the quality of certain documents are upheld so usually this is to fulfil certain requirements to ensure quality and we work with the QPI folks in determining the final version of documents that make it into our repositories. Now I will be touching on one of the questions in the sampler with respect to client confidentiality, the arrangement with the client, and when you say client, it is the government side for which the project is undertaken. Arrangements are made to uphold confidentiality agreements with the client. If the client says that certain knowledge or document types cannot be shared then we ensure, it is the job of “KM”, we make sure that these documents are kept confidential. Sometimes documents are made available but we have the appropriate usage restriction to make everyone aware that certain documents cannot be referenced externally or cannot be used prior permission from the client, or project manager or partner, so that is another way to ensure not just quality but the security of the information.
BS: Thank you. TN: When you talked about, basically you look after the knowledge management within projects and ensure that certain information is extracted from the project, is that very much an internal focus? Do you focus much on client needs as well? TA: Yeah, well, the knowledge capital plan I mentioned awhile ago, tracks the gaps, and a gap results when there is a need for a certain type of knowledge or certain type of content and it is not available or represented in the repository. So the gap is one way of factoring in needs of clients, because there is a need for that information and it’s not present in the repository and we make sure that kind of gap is filled and we run after the document types or knowledge types that address the gaps. GG: The gaps you are referring to are identified from an industry level analysis? TA: Yes. GG: Rather than from a client level analysis, I was going to leave until later, but Tracey touched upon this, we at this time, rightly or wrongly, are using the terms micro and macro to refer to two different levels of view on knowledge management where the macro view is more of a knowledge asset view which is what we have marginally been talking about, Accenture managing knowledge as an asset of the organization for the purposes of client work, where we use the term micro view to refer to knowledge management at the project level with more of a client-centric perspective. How is knowledge transferred into the client organization, to what extent and in what ways does Accenture take account of client knowledge requirements in order for them to effectively continue with the results with whatever involvement Accenture has had for example. And this sort of comes back to our aim to exploring integration between client knowledge management activities strategies and practices and Accenture knowledge management activities strategies and practices. TA: Ok, yes I would like to mention that we have a helpdesk facility within GKN and it is basically a research arm that mainly functions to serve client requirements or project requirements, the micro requirements. There is a database that people can use to log requests for information if they don’t have the time to do the search themselves or if they cannot find the information they are looking for in our repositories. And I have a team of researchers here in Manila. There are three researchers on board plus all the area coordinators in other parts of the globe. This is the team that does the research. In essence what we do is to try to find the information that the clients need. Now at the same time there will inevitably be requests for information for which no answer is available in the repositories, what we try to do is to identify subject matter experts or other contacts who can provide the information. And inevitably there will be requests for which there is really no contacts that can provide the needed information. We track these types of gaps; we call them now the helpdesk gaps and post to the knowledge gaps in the knowledge capital plan that is prepared by the other team. So we have helpdesk gaps which track which of the micro or client or project requirements that cannot be served from knowledge available in the repository or knowledge from other contacts or experts. So these helpdesk gaps are used as an input, we submit them to the team who put together the knowledge strategy plan so we can use the helpdesk gaps as inputs as well into the macro plan or industry plan. I’m not sure if I am answering your question but how the macro and the micro are integrated. Right? GG: Yes, you are certainly addressing aspects of my query. TA: So one way by which the macro and micro work together in the government operating unit is that we have a helpdesk gaps report that is prepared quarterly and the helpdesk gaps track the gaps in the micro requirements of the client or project team that cannot be served by the knowledge in the repository and we send them to the team that puts together the industry plan or the industry knowledge strategy and that’s the macro part so in a way the macro picture has a micro component to it. GG: Yes, the client queries could result during or after projects with Accenture? TA: Yes… GG: The reason I ask that is I can certainly see how those queries would occur during the project and the analysis your suggesting makes very good sense and is clear to me. TA: A lot of the queries come from opportunities, so they are not projects; they are basically running after, so they would ask information that can be put into a proposal or project. GG: All right at the risk, perhaps I’ll save my other question for later in the discussion. Tracey do you have another?
TN: Hello, we know that from speaking with the other people in the organization that as much as technology helps to carry out your knowledge management, it is also very much culture-based, does that extend to you over in Manila? TA: Um, the technology tracks knowledge management in that it is the basis for the infrastructure by which we preserve knowledge as well as sharing and disseminating it. I think that us being over here in Manila the only issues, actually it’s not really an issue; it’s really more of the turnaround time. If you are opening a certain database and the server is housed outside of Manila, then there is the usual downtime to getting that database to open, but in general I don’t think there are any technology issues from us being located offshore. Did I answer the question correctly? TN: I was more trying to find out if culture plays a part in driving you to collect knowledge and motivating you. TA: Is it culture that you are saying, culture? TN: Yes, it is. TA: Ok, I think in terms of culture, well for the serving team, and that is GKN being here in Manila, one of the cultural traits of the Filipinos, we are mainly Filipinos here in Manila, one of the cultural traits is being service-oriented. So with respect to providing knowledge management support I think that is one trait that helps propagate knowledge management, the practice of knowledge management. For the other countries, we do have to deal with language barriers and also different behaviours or behaviours with acceptance or sharing information. There are some cultures that are more careful about sharing information. There are other cultures that are very open with sharing information. So with respect to encouraging knowledge management practices, yes we do have to deal with the differences in culture. But I think that for the government operating unit, having key people in different parts of the globe helps reduces the tension with respect to dealing with cultures. We do have a Canadian and an American dealing with the United States, we have a British and a Belgian dealing with the European culture. And the two girls in Europe do have some skills in the other languages and that helps deal with the language barrier. GG: It’s interesting that cultures raise so many different issues in my mind. You’ve mentioned how different national cultures have different propensities to share knowledge for example and then there is the issue of the Accenture organizational culture and to what extent that is consistent internationally and encourages the sharing of knowledge and then there’s also the issue of culturally specific content in the knowledge base and to what extent it is generalisable and usable across cultures. Is that last issue of much importance or concern for your group? TA: Hmm… GG: I am wondering if the practices in Germany, Japan, Manila, Australia as regards government and systems and so forth are uniform or whether or not there aren’t culturally-determined aspects that makes it difficult at times to standardise the knowledge that is captured in the knowledge base and shared across these regions? BH: Hello this is Bettina, perhaps one good example would be Japan, in terms of culture in itself is not such a barrier in itself for sharing K. The solutions are pretty much the same; the best practices that we apply say in Australia are reused in Japan. The knowledge that we are supposed to pull out of Japan projects are sharable. Except for the language barrier we are dealing with to date it has been a difficulty for us in Japan. One solution was that we had a point person before based in Japan and she would facilitate all knowledge processes on behalf of the opportunity and project teams in Japan. However, in terms of sharing this knowledge we are still not able to gather as much information as we would like to in view of these language barriers because of the cost of translation et cetera. TA: Basically, content, I don’t think there is content that is truly specific to one country or area. Even in Europe, in German or French that some people might think that it’s not going to be worth sharing because it’s too French-specific or German-centric. I don’t think that is really the case. We have come across research requests that deal with a certain type of approach and we would find it in a Europe example and it is used in a proposal for let’s say an Asian client. So I think that the content itself, the culturally-centric or culturally-specific content itself is not the issue, but it is more the content being in a language that has to be translated for a broader base to appreciate it. GG: Thank you. BS: Perhaps while Tracey pauses, I’ll move into another area if I can, we’ve been talking about what I might term internal Accenture knowledge for the most part. You have some role, you talked about your researchers in collecting knowledge, external knowledge, what is your process for collecting knowledge of competitors’ activities for instance, I talked to Paul about the particular project he was working on which was a Peoplesoft one with an educational institution and asked whether he was able to access any knowledge about a previous large project with Peoplesoft at a university in Australia and he said yes he was able to access that knowledge. I would
be interested in how you go about gathering it and how it fits into this broad strategy and gaps or whether it is more ad hoc? TA: It is a combination of both. We use the knowledge strategy, the gaps, as well as what I mentioned awhile ago the list of typical documents, the knowledge types we gather from certain projects. We use those as guides as to what can be contributed. That is the yes part, the no part is that we also rely on the experience and expertise of knowledge champions or people on the project who are able to point us to the types of knowledge that they feel will be most reusable. That’s what we call the reuse factor, if a certain type of knowledge or document is deemed reusable, has a high reuse factor, if the knowledge champion is working on this project and he has experience on working on similar types of projects in the past, we usually deem him or her as having some expertise in terms of identifying what types of documents or knowledge from the project by people who will embark on a similar project in the future. So whatever that type of knowledge in the gaps list or is in the typical documents roster, it becomes secondary that if that knowledge is in either of the lists what becomes paramount then is to take the indication or the expertise of the knowledge champion, who says that this version I think is the one which is going to have a high reuse factor, highly reusable for subsequent projects. BS: Tess, on top of that I am thinking of instances where a similar project has been undertaken perhaps by a competitor whether you are able to gather and store any knowledge that might be beneficial to people working on a project about the outcomes and the approaches that might be taken by competitors particularly where there have been major failures in attempting to, for example, implementing some software in a similar environment that might be useful to an Accenture team that is going in to avoid similar difficulties. TA: We have, within Accenture, there is a different group, an external research group, it is called Accenture Research and it is a shared service group. Shared meaning all the operating units can avail themselves of the services of the Accenture Research, so it’s not just dedicated to one or two operating units but it supports all of Accenture. Accenture Research specialises in external research and that includes generating information from competitors, from third party analysts, media, and the likes. There is a very fine line that distinguishes the research that my team does, my team just does internal research, so internal research covers results or outputs from Accenture projects while Accenture Research does the external research part. So we do have a separate group that takes care of that. The difference is that their services cost ours don’t because mainly we are funded by the operating unit. Accenture Research funds itself so it requires a job number if you need their assistance for external research. GG: I am just wondering if the two come together naturally. I am a consultant in the field and I have an issue and I have these two alternative sources of knowledge to support me, Accenture Research and the operating unit’s knowledge management network. Who do I go to and how do I choose between the two? TA: We actually have a very strong collaboration with Accenture Research, GKN, our helpdesk, our internal helpdesk, has a strong collaboration with Accenture Research. So people only need to remember our helpdesk. They can log their request with our team and it is my job to assess our job, the helpdesk team’s job to assess which ones we can handle and what jobs are to go to Accenture Research and we automatically forward requests for external research to our Accenture Research contact. Of course, we get clearance first from the customer because we need to provide a job number. Now, in cases, and there are many, where they don’t have budgets to finance external research via Accenture Research, then the only assistance we can provide them is, is for the helpdesk to undertake an internet search but we can only get what is publicly available over the internet and that is also done free of charge. GG: Ok. TA: It’s a very good collaboration. It has been running 3 years, I think it is 4 years, we hooked up in 2000 because our helpdesk database is configured to be able to automatically forward to Accenture Research researchers handling government. They also have regular calls with the government researchers to share issues as well as discuss projects that we can work on together. GG: I can see how there might be value in some level of standardising of architecture across those two groups in order that queries might more automatically identify the knowledge that is available. Would you agree or not? Or is it quite different kinds of knowledge we are talking about here? TA: Well I’m not sure exactly how the other knowledge management support groups or the other operating units interact with Accenture Research. I do know we all collaborate with Accenture Research. But with respect to standardising the architecture of the database, I can’t say the others have the same mechanism. Our helpdesk is unique. In fact it’s been a very useful tool but it’s a nightmare for the technology guys because we have developed it into a forum that can be operationally used to track requests, to forward requests and I don’t think the other knowledge management support groups have that but in terms of collaboration would be More or less the degree of collaboration would be the same across other teams.
GG: A spot check it is here now 12.50. How are you placed, Tess and Bettina? How much more of your time can we impose on you? TA: Well the room is ok for another 45 minutes. GG: I think we need to finish, when do we need to finish by Tracey? BS: Another 10 minutes TN: Yes 10 to 15 minutes. GG: We are going to only impose another 10 minutes on you. TA: No problem. GG: I wanted to make sure how much time we have left. TA: I think we have more time then you do. GG: I don’t’ believe that. TA: I reserved the room till 11.45 Manila time. GG: I think we have to give up the facilities in 15 minutes. We certainly would like to come back to you when we respond with the transcript of the discussion to ensure we haven’t misunderstood anything. TA: Which areas you were not able to cover adequately. GG: Yes, Tracey do you have further questions? TN: Can I jump to measuring knowledge; is that part of your responsibility? TA: The measuring the value as well as the impact of knowledge management has been one continuing challenge for Accenture as a whole. There have been many approaches and attempts to standardise the measurement of the value of knowledge management. Down to the different knowledge management support levels, we have our own metrics, and we developed our own metrics for measuring the value of the services we provide, using your jargon, that’s more on the micro level and how effective our services are to our clients. But I think on a more macro level, how firm-wide Accenture measures knowledge management that has been something in the works for several years now, there have been several approaches, but to be very candid, there have been no definitive definition, definitive approach, definitive metrics that tells us this is how we should measure our knowledge management services so it’s been a continuing challenge. I think on a per program basis, each of our programs has its own metrics for us for example we deal directly with client and project teams our metrics would involve, the time or hours that we have saved the practice in looking for information that they can’t find for example or they don’t have the time to look for themselves. There is a qualitative measure of how many opportunity teams we have assisted ended up winning a bid for the content of the proposal, the credentials that have been put there, the breadth of the experience that has been exhibited, sometimes they do proposals based on cost, so they shouldn’t be counted against the knowledge management services that we have rendered. So there are different approaches, each program does have its own metrics, but I guess Accenture as a whole still needs to work on coming up with a more definitive measure of knowledge management on a company level. GG: Would it be accurate, to suggest that firstly my impression is that the amount being spent by Accenture across the organization is increasing? TA: Yes, that’s why they are looking for more cost-effective locations for knowledge management support like Manila or India. One way of offsetting the cost, for the same cost, we can render the same amount of time. GG: But the fact that they are investing more in knowledge management would seem to indicate that across the board the organization must see this as a useful direction and a valuable investment? TA: Yes, everyone believes that is a valuable investment but then again in the absence of very clear, very clear and quantitative measure of the value of knowledge management… GG: Continues to be an issue? TA: Yes continues to be an issue, and it continues to challenge the cost-effectiveness of rendering this kind of operation. So one of the easier approaches is to help bring down the cost. It’s harder to come up with a measure
of the value of knowledge management but it’s easier to cut the cost. And there are different ways, we have been quite creative in cutting the cost so aside from location, we have also dealt with developing some tools like enhanced search engines that are quicker, that can shorten the turnaround time in terms of looking for information and putting repositories into portal types of infrastructure where access is faster so, making the entire knowledge management machinery more efficient. GG: This indirectly brings me around to the question I delayed earlier, it’s again the micro level, what I’m wondering is whether or not in any sort of post project review Accenture seeks to evaluate the client’s knowledge sufficiency with regards the project. I’m not really sure exactly what I mean by this but my feeling is that a client having completed a project with your firm, will have a certain expectation of the level of their independence, the level of their knowledge for them to effectively proceed into the future with the results of the project. This sort of comes back to my comment earlier about client questions to the helpdesk during or post the project. Is there any mechanism for evaluating client knowledge sufficiency in some sort of post project review? TA: I’m not sure we have done that yet, because when I use the word client, I actually refer to Accenture opportunity project team members. What we support is the internal Accenture practice; we don’t really cross over to the government client. Is that what you mean, the government client? GG: Yes, with our project that we are involved in we are trying to evaluate ways in which client and consultant knowledge management practices can come together to be more effective. To ensure that the appropriate knowledge is transferred from the consultant to the client, and the client knows they have received or have access to the knowledge they require in order to move effectively into the future and it would seem in order to facilitate that kind of closer cooperation, closer integration, it would be necessary in some way to evaluate client knowledge sufficiency after these projects. BS: if I could just intervene there I think, Tess, Guy hasn’t had the opportunity of chatting with some of the Accenture people that we have, and my understanding is that is outside of your responsibility but it would be handled by the project team. Is that your assessment of it? TA: Yes I would say that is correct, how knowledge management practices of the project team cross over to the boundary of the client itself is handled by the project team, for us here we basically deal with Accenture project team members. But we have come across some instances where project teams have requested specific access, because access to the repositories of Accenture are restricted to Accenture personnel. But there are cases where we relax this a little and provide access to non-Accenture personnel. for instance cases where demos or presentations on how the knowledge coming from the project is used, how they are stored and how they are used if there are any presentations of that type, then we grant temporary access to non Accenture people, from the client, and they do a demonstration just to illustrate how knowledge from the project that they’ve had with Accenture is being put to efficient use. There are cases where, also in our repositories or portals we develop homepages for the specific project done for the client and specifically for these purposes we grant temporary access to the client teams just to show them the information is being put to good use and the information is secure, especially for those clients that have concerns about confidentiality and security. BS: Thank you, Tess, Bettina, it’s Bob here again. I’ve got one more question, I’m not sure if this is in your area, but talking to the local people the concept of communities of practice seems very important for knowledge management in Accenture. Is this an area where you have any role at all? TA: This would be the other team, the client development and packaging team. It’s still very much within the “KM” world, it’s still very much within the “KM” role, but it’s in the other team, not my team, but they do have, the CDP of GKN, the content development and packaging team of GKN is the one that works with industry executives to monitor and facilitate discussions among communities of practice and they would have a feel for every government industry. BS: Very good, thank you for that. GG: Alright, well I think we’ve come to the end of our list of queries. Tess and Bettina, I’d like to thank you very much for this discussion it’s been extremely interesting and useful, we will produce a transcript and get that to you and that will likely be dispersed with further questions that we would very much appreciate interacting with you further on and the transcript will give you an opportunity to make ensure we understood you correctly. TA: Your most welcome, it’s been no problem participating in this call. We are thankful you put it into a time favourable to us. GG: That works reasonable easy here in the Asia Pacific. TA: Right, and let us know if there were any questions that you failed to ask and we can provide a reply even by email if that’s going to be more convenient.
GG: Thank you. TA: Your welcome. [ END ]
Appendix F – Empson & Morris Model Focus Group
Workshop – 22 July 2004 A collaborative ARC Linkage-Project of QUT and Accenture
WHEN: 9am – 12:00pm, Thursday 22 July 2004 WHERE: QUT – Room 409, Margaret St PRESENT: Guy Gable, Greg Timbrell, Jason Kennelly, Bob Smyth, Karen Stark, Taizan Chan INTRODUCTION:
GG: The focus of the workshop is the Morris and Empson model of the role of knowledge in the professional services firm.
The Morris and Empson model: What does this model mean?
Does it have explanatory power? What relevance might it have for the IPSF project? What relevance might it have for Jason’s work? How might it be operationalised? How might it be tested?
JK has been looking at the model as possibly informing his parallel study of research centres and PSFs. Rereading the paper I am enthused by the parallels I see with PSFs and research centres. Decomposing both Comparing and contrasting
Both have a deal to learn from Knowledge Management (KM) theory.
GT: Looking at the Morris and Empson model – Is there any parallel in economic structure? Economic structure …..not for a research centre.
GG: The body of literature on research centres may inform the work on PSFs.
Using examples from the IT service firms’ arena would also be a useful contribution.
GT: Perhaps we should be thinking about individual and collective KM.
Knowledge self sufficiency…..
GG: It may be of value to a practice group to know the implications of moving from one firm to another.
GT: In a practical management approach, a practice group may abandoned [dispensed with]. They tend to look at the decision from a fees point of view not a knowledge point of view [that knowledge may be lost from the firm]
GG: In this research centre Phoebe took an entire group with her and we will probably not revisit that entire area.
JK PRESENTS THE MODEL
JK: Are you familiar with Maister Ch 1 & 2?
He came up with the framework in Figure 1.
He saw the three goals for PSFs as: Service Success (maximizing profitability) Satisfaction (get and retain staff) The way to achieve all three is by leveraging the balance of experienced and
junior staff.
TC: How does this leveraging help to satisfy staff?
GG: Leverage is all about profit. There does not have to be a relationship between leveraging and satisfaction. A possible connection would be – if you do not leverage properly eg too much procedural work with a high brains staff would lead to dissatisfaction as would the reverse.
GT: The career expectations of staff – fast promotion…
GG: A highly procedural firm would be foolhardy to give the impression to staff that there is much opportunity for fast promotion.
We have to be wary – GT and I have a history with the ‘big 8’ but all that has changed.
In small to medium firms this may not apply.
IPSF have a huge number of specialists who never expect to be partners.
We need to carefully define what we are studying.
GT: While there is not a single trajectory there may be one in general.
TC: It might be useful not just to look at PSFs and research centres but PSFs and research labs and research centres.
GG: We have been thinking about at least accounting for size. IMC is primarily 1 (sole operator) or medium (under 8 people)???? Marion Orlikowski – 1 ISMRG – medium CITI – large?
It gets complicated when you try to talk about research centres that try to make a profit. We are not looking at profit. Our currency in trade is publications, graduate completions, and grant money. Maybe that is our profit.
The procedural kind of research is replication studies etc. They do not have to be as conceptual and creative but more methodical….
GT: Those things are day to day measures they do not measure quality. You can do all of those things at various levels.
GG: You can have universities that churn out PhDs or people who publish in lower tier journals.
Returning to the model
JK: Morris and Empson have adapted Maister and added organizational structure.
BS: The emphasis in Morris and Empson is that interrelationships are important.
TC: It seems to show that the leverage structure is the key that ties it all together.
JK put up Figure 3 to illustrate the Morris and Empson model.
GT: They have a very broad view of the knowledge base. Morris and Empson argue
…external knowledge…..
The distinction between knowledge and labour….
Knowledge substitution – management say: I am going to coordinate everything and you have to trust that what you are doing is useful.
GG: Economies through specialization
GT: People cannot coordinate among themselves – they have to be told what to do. Substitute a bit of knowledge from the managers brains without the individuals having to understand the whole. The knowledge base does not change just the number of people.
BS: You then get into arguments about job satisfaction. In manufacturing they tried to have individuals doing a single task but it destroyed job satisfaction and ultimately productivity.
So long as I am only doing one component my ability to build up my knowledge base is impacted.
GG: It has to be a different kind of people at those lower levels.
JK: Regardless of practice type you still have to provide them with interesting work etc.
BS: Alternately you get what you can out of them and don’t mind if they leave.
GG: How may people in HPs call centres expect to become partners – none.
JK: PSFs are dealing with knowledge workers. They are not like sandwich makers who just want to pay the bills. They need to be looked at differently.
GG: There will be research centres that do not expect their graduates will end up editing top tier journals. They may end up teaching in third tier institutions.
Certain practice areas in PSFs are procedural eg tax. But you still have to have potential no matter where you start to move up.
GT: The traditional entry point was audit. Yes it is procedural but you get to see how things work.
GG: What do the constructs in Figure 3 mean?
Here we have a framework – can you tell us what value it has?
BS: Does it have a stronger theoretical base than Maister?
JK: In the model you have the knowledge base in the centre. It does not just mean codified knowledge but also tacit knowledge. Depending on the form and content of the knowledge base it will impact on the other 4 and they will impact on the knowledge base as well.
If you are looking at the more procedural end of practice the knowledge base is more codified. At the expertise end it is more tacit.
GG: Does the knowledge base [reflect?] all the capabilities and resources of the firm?
A PSF is a knowledge [firm?] and knowledge defines everything about them.
GT: That is such a broad conception of the knowledge base that it is almost a social theory.
Looking at the arrows – there are too many arrows for their propositions.
GG: We need to consider what the arrows mean.
[There was discussion as to how to begin]
TC: Start with the market for PSF services. Look at the marketplace – how should we position ourselves.
GG: Is that how it happens? Don’t we first look at the capabilities we have and then look to the marketplace?
TC: It is shaped by ‘What is the hot thing now?’
GG: In the research centre we have implicitly looked at ‘What can we do?’
JK: Darshana’s instrument is a capability. It is part of the knowledge base and we are looking at where we can use it.
GG: TCis looking at more of a path diagram.
What are our capabilities?
What does the market want?
BS: You cannot simply say ‘what is the market’ – how we manage will have an impact.
GG: Is there a sequence of arrows that we might take for a green-field situation?
First - what do we have? Second – what does the market want?
When we ask ‘what do we have’, we are implicitly asking ‘what do we need’ eg staff.
Each path suggests a question that might be worth asking.
JK: The organizational structure is not determined by the size of the firm but on the type of practice. If it is more expertise it tends to have a flatter structure.
GT: If a practice is mainly expertise and working on unique problems why invest in the production of a codified knowledge base?
GG: The potential value of the knowledge base across the practice areas.
TC: In the original proposal by Morris and Empson the centre one was more knowledge management than knowledge base.
GG: If it was a brains practice then it was mainly tacit and this was reflected in ….
A broader term is knowledge strategy which takes in both knowledge base and knowledge management.
GT: Irrespective of if there is a knowledge strategy there will be a knowledge base. I am defining knowledge strategy as where people actually go out and form a strategy.
TC: In terms of understanding does knowing the organizational structure add anything?
GG: Because they are knowledge organizations knowledge strategy equals corporate strategy.
I have trouble with those two – economic structure and organizational structure.
TC suggested the model be amended to:
BS: Are they trying to imply that the more knowledge you have in the knowledge
base the more profit you get?
JK: It is also the form of the knowledge – tacit or codified.
GG drew the continuum
Tacit Codified
GG: You only codify things because you perceive it as valuable.
BS: It may have been valuable last year but not now.
The knowledge base is a passive thing unlike knowledge management.
GG: Do we want to use the term knowledge base, knowledge management, or knowledge strategy?
BS: Knowledge base we are taking as meaning how much of the knowledge is tacit or codified and not the amount of knowledge in there?
Because knowledge is not codified it does not automatically mean that it is at the brains end.
GG: At the brains end the knowledge is likely to be tacit. It is important to note the exceptions to the norm. Codified knowledge that no one has access to other than you – it is brains for others but efficiency for you.
The way they market themselves to the world may be perceived as brains but they have made it procedural. Your codified knowledge base allows you to appear to function as a brains firm.
JK: Are you sure they are not somewhere in between brains and procedural?
GG: does economic structure refer to the fee we are able to charge because of our perception in the market place?
BS: The knowledge base in isolation is not the significant thing. It is how you manage the knowledge. If an individual has tacit knowledge it is more valuable to them as an individual if it remains tacit but more valuable to the firm if it is codified.
GG: Knowledge management versus Knowledge base is looking at it from the micro- level as opposed the macro-level. Knowledge management is the micro-level. Knowledge base is the macro-level.
Profit
GT: Organizational structure + workforce is the cost???????? Market is revenue Economic structure is your profit
GG: Is there something we can substitute for economic structure eg knowledge management?
GT: Going back to the research centre –what we are doing now – it has to be a brains practice. Even though there is an uncodified element the procedure is still there. GG has a procedure that you know will come up with a quality output.
GG: The centre of the model is the knowledge base. Knowledge base is about knowledge assets both tacit and explicit.
GT: The market for professional workforce is different from the workforce itself.
GG: Distinguish between knowledge management strategy and knowledge assets.
BS: You cannot look at the knowledge base without looking at the knowledge management and knowledge strategy.
GG: You need to assume the knowledge base is well founded.
BS: Then there is no point having an arrow back from organizational structure because you are assuming the knowledge base is appropriate.
GT: It is not the knowledge base that drives these things it is the knowledge strategy. Knowledge strategy should be at the centre of the model.
GG proposed:
Knowledge strategy
JK proposed putting knowledge strategy in the middle of the model with knowledge base replacing PSF economic structure???????
GG: It all depends on how you define these things.
Does separating the macro and micro have some value?
GG: The fact that there is a strategy there is implicit to me.
GT: Knowledge is both organizational and individual.
GG: IPSF say ‘Value led asset driven.’ They need to be concerned what assets they have. To do that they need to have a knowledge strategy…..We have a knowledge management approach which is needed to maintain our knowledge base……
Knowledge management Knowledge
base
Knowledge management is defined as a lower level activity aimed at maintaining the knowledge base.
COFFEE BREAK
A possible alternate model:
Knowledge strategy =corporate strategy (which defines the organization)
BS: The knowledge base is a passive thing. The knowledge base in isolation does not drive anything in the absence of a strategy..
GT: Knowledge management strategy is only a knowledge management strategy when it is intentional.
Knowledge management only applies when you have more than one person.
JK: Many sole proprietors do not have a knowledge strategy but they have a knowledge base – previous reports…..
GG: We have a number of possible changes to the model. When we test this we need to determine which of these versions seem more powerful.
What questions are implicit in the paths that might be tested by empirical evidence and how might that evidence be gathered?
When we talk about practice areas…..
What we are doing now in this workshop is expertise, the ESS replication study is procedural.
GT: When you are suggesting activities for PhD students do you consider ……
GG: Whether we can accommodate the different kinds of students.
Can we better match activities to the students?
Qualities for procedural activities include: industrious, conscientious, intelligent…
JK: Maister says you should concentrate on a practice area.
Knowledge management
Market for PSF services
Knowledge base
Market for professional workforce
PSF organizational structure How we leverage
GG: Research students are both our input and our output. Do we consider them as a resource?
GT: Are they an undifferentiated resource? I would say yes. The only reason I say that is because the capability of a group of researchers is built from taking a group of researchers and training them.
GG: While we retain certain graduates most move out though we do try to maintain links with them.
JK: That happens in consulting firms as well.
GG: We did not get to a detailed discussion of the paths. The constructs are still fairly fuzzy. Looking at the paths should help clarify the constructs.
JK: Maybe we should look at the three possible models.
GG: You [JK] are near to confirmation; you need to do this [analysis]. Improve your understanding of these various paths and constructs and identify which model you think is more powerful. Having talked around all of this and having arrived at an a priori model you will need to decide what evidence to gather. Decide which paths we will try to test empirically.
GT: Knowledge base to organizational structure would be an interesting one to try to test.
GG: A set of …….. characteristics which would help.
GT: In the Lowendahl et al article, they say on page 915: ‘The resource base therefore constitutes an important contextual component for PSF value creation and is here broadly defined as the combination of the tangibles, e.g. finances, buildings, production machinery, and the intangibles, e.g. professional expertise, reputation, client loyalty, corporate culture and management skills, which may be usefully applied to generate value for the firm and its stakeholders.’
I saw this as the beginning of a list of knowledge types.
GG: We need:
(1) To develop a classification of knowledge types for….
(2) A rigorous definition for the knowledge base construct.
GG: Another possible……rewrite the Morris and Empson paper and make it specific to IT professional services.
GT: All of these articles are skating around the same thing but I do not think they are looking at all the bits. In the ITPS stuff we are talking about it being relationship driven.
GG: Knowledge of the client.
GT: Morris and Empson do not talk about the relationship.
GG: Does this adequately emphasise the relationship? It is reflected but does it place ……..
JK: Isn’t that looking at it at a micro level rather than at a macro level?
GT: HP differentiate between technical knowledge and client knowledge.
BS: It also ties in with Maister……
GG: An important distinction between large and small firms……
Maybe knowledge base needs to be split down the middle.
This then ties in with the TCT stuff.
GT: The production of client knowledge is an investment in…..
BS: In abandoning Economic Structure…….. External perceptions can impact.
Appendix G – Consulting Issues Mapped into Knowledge in
Professional Service Firms Model
Issue ID Issue EM_Construct ID CCS_Construct IDMa jor Issue Ca te gory
Othe r Contructs Influence d/ Impa cte d Comments
Seria l EM 1Economic Structure 0 8 Issues
1 Issue 29
Clients are demanding increased value from consulting services which results in more hours of effort from Management Consultants for the same fees. Economic Structure Client Expectations
Consultant Engagement Process Market for Professional Services
(1) This issue was placed in economic structure because the issue demonstrates a direct correlation to the firm's need to balance the fees it charges its clients in order to remain competitive and the salary paid to the consultant that is engaged in more
2 Issue 35Annual tax accounting for the consulting practice is onerous. Economic Structure
Financial Practice Management
Changing Consultant Environment
Tax is a liability to the firm and directly impacts it's profitibility and is their for related to the firm's economic structure.
3 Issue 45Managing cash flow of the Management Consulting Firm is challenging. Economic Structure
Financial Practice Management
Changing Consultant Environment Cash flow has a direct relationship to the firm's economic structure
4 Issue 52
Individual and Small- Medium sized Management Consulting Firms have difficulty when attempting to obtain loans from financial lending institutions. Economic Structure
Financial Practice Management
Changing Consultant Environment
Difficulty with attaining appropriate finance directly impacts the fees the firm charges and the salaries it pays its staff as the firm is left to source money from elsewhere and perhaps from a paycut from its consultants like Deloitte Consulting did.
5 Issue 53Management Consultants need economical Professional Indemnity Insurance. Economic Structure
Financial Practice Management
Changing Consultant Environment
Attempting to obtain affordable Professional Indemnity directly impacts the firm's economic structure by influencing fees charged and salaries paid
6 Issue 41
There is a great amount of time and expense associated with marketing the Management Consulting firm. Economic Structure
Practice Management
Changing Consultant Environment
Market for Professional Workforce, Market for Professional Services
(1) The costs associated with marketing impact the firm's fees and salaries (2) & (3) Effective Marketing impacts the firm's ability to compete in both external markets.
7 Issue 47
Government is promoting a standard fee structure to clients for Management Consulting Services, which is limiting fee flexibility. Economic Structure
Pressure on Consulting Fees
Changing Consultant Environment Government promotion of a standard fee structure impacts the fees the firm may charge
8 Issue 51
There is a need for a Management Consulting industry standard billing system and general fee structure (like solicitors). Economic Structure
Pressure on Consulting Fees
Changing Consultant Environment A standard billing system would Impact the fees the firm may charge
EM 2 Knowledge Base 0 8 (9) Issue s
9 Issue 33Clients are demanding prior industry-specific experience with the approach proposed in tender bids. Knowledge Base
Client Selection When Engaging Consultants
Consultant Engagement Process Market for Professional Services
(1) Industry specific experience is tacit knowledge that can be stored within the firm's staff or in a codified form in the firn's knowledge repository. (2) In addition, havine the correct form and content in the KB allows the firm to compete in the Mark
10 Issue 71
Clients are demanding Management Consultants with process expertise across industries rather than industry specialist expertise. Knowledge Base
Client Selection When Engaging Consultants
Consultant Engagement Process Market for Professional Services
(1) Process expertise across industries is tacit knowledge that can be stored within the firm's staff or in a codified form in the firn's knowledge repository. (2) In addition, havine the correct form and content in the KB allows the firm to compete in t
11 Issue 11It is challenging to continually update skills via professional development. Knowledge Base Consulting Skills
Changing Consultant Environment Organisational Structure
(1) To update skills is to improve the firm's KB. (2) The KB and the firm's organisational structure will impact the firm's approach to professional development
12 Issue 12Management Consultants must develop their marketing and sales skills Knowledge Base Consulting Skills
Changing Consultant Environment To update skills is to improve the firm's KB
13 Issue 14The Management Consulting firm has no resale value without its people. Knowledge Base
Knowledge Management
Changing Consultant Environment
This issue stems from the notion that Knowledge is the firm's most valuable asset and in many cases that knowledge is stored in a tacit form within its people.
14 Issue 27
There are risks associated with a Management Consulting firm shifting to a more specialised skill base. Knowledge Base
Knowledge Management
Changing Consultant Environment Knowledge Management
(1) This primarily a KB issue because it involves addressing gaps in the knowledge base, as well as possibly changing the content and form of the KB to cater to the change to a specialist skill base. (2) KM of the firm is also impacted. A change in the c
15 Issue 28The Management Consulting profession is perceived as having no recognised body of knowledge. Knowledge Base
Knowledge Management
Changing Consultant Environment
Industry wide KM Issue affecting all management consulting firms. Accountancy, law, medicine and project management have recognised bodies of K. However, management consulting is such a diverse and varied industry that a common body of knowledge for the
16 Issue 18
Management Consulting firms suffer from the loss of intellectual property that occurs when consultants leave the firm.
Knowledge Base / Market for Professional Workforce
Knowledge Management
Changing Consultant Environment
Knowledge Management, Organisational Structure
(1) When someone with specialist knowledge leaves the firm this can create a gap in the firm's KB. (2) The gap needs to be addressed by going to the Market for Professional Workforce and seeking out a replacement with the knowledge of the individual that
EM 3Knowledge Management 0 7 (17) Issue s
17 Issue 22
The specialised nature of Management Consulting makes it difficult to delegate work to other consultants in the firm.
Knowledge Management
Knowledge Management
Changing Consultant Environment Organisational Structure
(1) Delegating work of a specialist nature is primarily a KM issue because this requires the disemination and sharing of firm K to other firm staff. (2) Delegation issues are also related to the firm's organisational structure, as this will impact the f
18 Issue 25
Substantial demands are placed on Management Consulting resources when developing new intellectual property (e.g. products, services, tools, techniques).
Knowledge Management
Knowledge Management
Changing Consultant Environment
The need to manage firm resources in the development of new intellectual property is an KM issue
19 Issue 40
Working across many unique types of projects limits the Management Consultant's opportunities to leverage/reuse their knowledge and skills.
Knowledge Management
Knowledge Management
Changing Consultant Environment
This is a KM issue because the firm needs to consider how best to transfer knowledge and skills from previous engagements to new ones.
20 Issue 7
It is difficult for Management Consulting firms to obtain market intelligence on the supply of and demand for particular consulting services.
Knowledge Management
Knowledge Management
Changing Consultant Environment
Identifying hot areas of knowledge that may yield opportunities for the firm is a KM function as discovered from the data gathered in the IPSF study
21 Issue 16
Management Consultants have difficulty establishing a Management Consulting specialist niche that is sufficiently profitable.
Knowledge Management
Strategic Planning and Management
Changing Consultant Environment Knowledge Base
This issue is more specifically Knowledge Strategy related and as such impacts both the firm's KM and KB. KM involves identifying a specialist niche. The firm needs to address gaps in the firm's KB to cater to the firm's chosen specialist niche. The
22 Issue 38It is a challenge to anticipate future client and consulting firm market and technological trends.
Knowledge Management
Strategic Planning and Management
Changing Consultant Environment
Identifying hot areas of knowledge that may yield opportunities for the firm is a KM function as discovered from the data gathered in the IPSF study
23 Issue 5
The requirement for Management Consultants to disclose methods and approaches when tendering may result in loss of intellectual property.
Knowledge Management Tendering Process
Changing Client Environment
This is a KM issue because the firm needs to consider how best to disclose intellectual property in tender bids.
EM 4
Marke t for Professiona l Service 0 23 (29) Issue s
24 Issue 2
Clients are placing emphasis on leveraging existing systems and on cutting costs (with less emphasis on doing 'new' things).
Market for Professional Services Client Expectations
Consultant Engagement Process
This issue impacts the firm's ability to compete in the Market for Professional Services based upon client expectations
There is difficulty overcoming a client’s ingrained preferences for a particular firm demographic i.e.: Client Selection
EM 4Market for Professional Service 0 23 (29) Issues
24 Issue 2
Clients are placing emphasis on leveraging existing systems and on cutting costs (with less emphasis on doing 'new' things).
Market for Professional Services Client Expectations
Consultant Engagement Process
This issue impacts the firm's ability to compete in the Market for Professional Services based upon client expectations
25 Issue 57
There is difficulty overcoming a client’s ingrained preferences for a particular firm demographic i.e.: younger vs. experienced consultants, regional vs. metro.
Market for Professional Services
Client Selection When Engaging Consultants
Consultant Engagement Process
Client preference for a particular firm demographic makes it difficult for the firm to compete in the Market for Professional Services
26 Issue 63
There is sometimes a client predisposition for a particular Management Consultant in what purports to be a competitive bid.
Market for Professional Services
Client Selection When Engaging Consultants
Consultant Engagement Process
Client preference for a particular firm makes it difficult for other firm's to compete in the Market for Professional Services. In addition they waste time and resources on tender bids when there is little if any chance of success.
27 Issue 66
Clients specify the methodology(ies) required in their Request for Tender, rather than stating their problem/opportunity.
Market for Professional Services
Client Selection When Engaging Consultants
Consultant Engagement Process Knowledge Base
(1) Clients that predetermine the methodology to be used in an engagement limits the opportunity for firms that tender and their ability to compete in the Market for Professional Services. (2) If the methodology is popular amongst clients it may be in th
28 Issue 72
Clients are placing emphasis on a Management Consultant’s reputation rather than professional qualifications.
Market for Professional Services
Client Selection When Engaging Consultants
Consultant Engagement Process
A firm's reputation is a basis for client selection and impacts the firm's ability to compete in the Market for Professional Services
29 Issue 42
The merging of consulting with other services (e.g.: personal services, accounting services, and project specialist contract work) is creating more competition in the Management Consulting space.
Market for Professional Services Competition
Changing Consultant Environment
The issues is creating more competition from new entrants and making it more difficult to compete in the Market for Professional Services
30 Issue 46There is competition from part-time and non-specialist Management Consultants.
Market for Professional Services Competition
Changing Consultant Environment
The issues is creating more competition from new entrants and making it more difficult to compete in the Market for Professional Services
31 Issue 49
The concentration of client firm activities in “shared services” centres means fewer business areas/entities toward which Management Consulting firms can target their services.
Market for Professional Services Competition
Changing Consultant Environment
The issues is limiting opportunities for firm making it more difficult to compete in the Market for Professional Services
32 Issue 56
Small- Medium sized Management Consulting firms find it difficult to compete with large Management Consulting firms.
Market for Professional Services Competition
Changing Consultant Environment
The issues is limiting opportunities for SME firms making it more difficult to compete in the Market for Professional Services
33 Issue 8
The number of individual and Small- Medium sized Management Consulting firms entering the industry is increasing.
Market for Professional Services Competition
Changing Consultant Environment
The issues is creating more competition from new entrants and making it more difficult to compete in the Market for Professional Services
34 Issue 61There is a need for Management Consultants to work with decision makers and gain exposure at the CEO level.
Market for Professional Services
Consultant's Ability to Manage the Client
Consultant Engagement Process
Consulting firms may feel that working with decision makers and working wih CEOs will improve the firms ability to compete in the Market for Professional Service Firms
35 Issue 13
Clients’ preference for international consulting firms is forcing local and regional firms to globalise brandings, services and product offerings.
Market for Professional Services Globalisation
Changing Consultant Environment Many firms are forced to globalise in order to compete in the Market for Professional Services
36 Issue 4
Client decisions on Management Consulting services are being made at global headquarters rather than at a regional or country level.
Market for Professional Services Globalisation
Changing Consultant Environment
Decisions made on consulting services at a global headquarters level makes it difficult for local firms to compete in the Australian Market for Professional Services
37 Issue 68
Domestic/regional Management Consultants are finding it difficult to compete with global Management Consulting firms.
Market for Professional Services Globalisation
Changing Consultant Environment
Domestic/regional Management Consultants are finding it difficult to compete with global Management Consulting firms in the Market in Professional Services
38 Issue 3
Government is influencing which consulting projects private enterprise take on by approving or rejecting subsidy applications.
Market for Professional Services
Government as a Regulator
Changing Consultant Environment
Projects subject to the scrutiny of government subsidy criteria is making it more difficult for firms to compete in the Market for Professional Services.
39 Issue 17
Clients who rely on a consulting-work-subsidy from government, delay project start dates and are indecisive about whether to engage consultants.
Market for Professional Services
Government as a Regulator
Changing Consultant Environment
Government regulation that delays project start dates and client engagement decisions decreases the firms opportunities in the Market for Professional Services
40 Issue 62
The Government provides no preferential support to advantage local Management Consulting firms over global Management Consulting firms.
Market for Professional Services
Government as a Regulator
Changing Consultant Environment Local firms are finding it difficult to compete with global firms in the Market for Professional Services
41 Issue 30The poor economic climate is resulting in limited opportunities for Management Consulting work.
Market for Professional Services
Sparse Availability of Consulting Work
Changing Client Environment
The poor economic climate is making it difficult for firms to compete in the Market for Profession Services
42 Issue 37
A lack of available, challenging and rewarding consulting work is forcing Management Consultants to relocate interstate or overseas.
Market for Professional Services
Sparse Availability of Consulting Work
Changing Client Environment Market for Professional Workforces
This issue demonstrates the relationship between both external markets as indicated by Empson. In order for firms to compete in the Market for Professional Workforce the firm needs to be able to offer interesting and lucrative work to potential staff. T
43 Issue 39
Changed government policy regarding the engagement of external consultants is negatively impacting the availability of government work for Management Consultants.
Market for Professional Services
Sparse Availability of Consulting Work
Changing Client Environment
Firms that compete predominantly in the Private Sector are finding it more difficult to compete in the Market for Professional Services due to a decrease in available Provate Sector work
44 Issue 60
Management Consultants are finding it difficult to maintain a steady stream of Management Consulting work.
Market for Professional Services
Sparse Availability of Consulting Work
Changing Client Environment
Firms attempting to find a steady stream of work has a direct relatiohsnip with attempting to compete in the Market for Professional Services
45 Issue 64The shortage of Management Consulting work is made worse by the trend for clients to do it themselves.
Market for Professional Services
Sparse Availability of Consulting Work
Changing Client Environment
The issues is limiting opportunities for firm making it more difficult to compete in the Market for Professional Services
46 Issue 1The proposal process requires substantial employment of resources yet yields little chance of success.
Market for Professional Services Tendering Process
Changing Client Environment
Knowledge Base, Knowledge Management
(1) The tendering process yielding little chance of success is another indicator of the difficulty of competing in the Market for Professional Services. (2) The tendering process requires substantial use of KM resources (identify relevant K, market resear
EM 5
Market for Professional Workforce 0 3 (12) Issues
47 Issue 23It is difficult to attract, develop, and retain Management Consultants for the firm.
Market for Professional Workforce
Human Resource Management
Changing Consultant Environment
Attracting, developing and retaining staff for the firm impacts the firm's ability to compete in the Market for Professional Workforce. Empson points out that the firm's policy on training, and advancement will influence a potential recruits decision to
Management Consultants are placing emphasis on a Market for Professional Human Resource Changing Consultant Organisational Structure Market for(1) A growing emphasis toward a balanced lifestyle is impacting firm's competitivness in the Market for Professional Workforce as potential recruites will seek a firm with flexible working hours to meet
45 Issue 64The shortage of Management Consulting work is made worse by the trend for clients to do it themselves.
Market for Professional Services
Sparse Availability of Consulting Work
Changing Client Environment
The issues is limiting opportunities for firm making it more difficult to compete in the Market for Professional Services
46 Issue 1The proposal process requires substantial employment of resources yet yields little chance of success.
Market for Professional Services Tendering Process
Changing Client Environment
Knowledge Base, Knowledge Management
(1) The tendering process yielding little chance of success is another indicator of the difficulty of competing in the Market for Professional Services. (2) The tendering process requires substantial use of KM resources (identify relevant K, market resear
EM 5
Market for Professional Workforce 0 3 (12) Issues
47 Issue 23It is difficult to attract, develop, and retain Management Consultants for the firm.
Market for Professional Workforce
Human Resource Management
Changing Consultant Environment
Attracting, developing and retaining staff for the firm impacts the firm's ability to compete in the Market for Professional Workforce. Empson points out that the firm's policy on training, and advancement will influence a potential recruits decision to
48 Issue 10Management Consultants are placing emphasis on a balanced lifestyle, resulting in lower work output.
Market for Professional Workforce
Human Resource Management
Changing Consultant Environment
Organisational Structure, Market for Professional Services
(1) A growing emphasis toward a balanced lifestyle is impacting firm's competitivness in the Market for Professional Workforce, as potential recruites will seek a firm with flexible working hours to meet their lifestyle. (2) A balanced lifestyle also impa
49 Issue 36
There are limited barriers to entry to the profession i.e. no mandatory professional qualifications like lawyers and doctors.
Market for Professional Workforce Professional Status
Changing Client Environment
Limited barriers to entry impact firm's ability to select recruits of an appropriate, calibre, experience and professional qualifications.
EM 6Organisational Structure 0 3 (11) Issues
49 Issue 55There is a need to perform succession planning to ensure longevity of the Management Consulting firm.
Organisational Structure
Human Resource Management
Changing Consultant Environment
Market for Professional Workforce, Economic Structure, Knowledge Management
(1) Succession planning impacts the firm's Organisational Structure, by setting up a direct chain of command and next in line to inherit leadership of the firm when the head consultant leaves the firm. (2) The issue also influences which candidates the f
50 Issue 19
There is a need to establish a network of complementary Management Consulting skills across Management Consulting alliances/partnerships.
Organisational Structure
Strategic Planning and Management
Changing Consultant Environment Knowledge Base
(1) Establishing a network of complementary consulting skills will influence the firm's orgtanisational structure because gaps in the firm's structure can be addressed by associates. (2) Gaps in the KB will identify the skills required of associates.
51 Issue 43There are risks associated with expanding the Management Consulting firm.
Organisational Structure
Strategic Planning and Management
Changing Consultant Environment
Market for Professional Workforce, Knowledge Management
Expanding the firm impacts the firm's organisational structure in terms of hierarchical structure and in terms of which candidates are sutiable for expanding the firm. Suitable candidates will be identified by addressing gaps in the KB. The expansion ma
UM Unmapped 0 20 Issues
52 Issue 67Open ended legal liability and onerous contract terms are becoming prevalent. Client Expectations
Consultant Engagement Process
Open ended legal liability doesn't map readily into any of Empson and Morris constructs but us related to managing client expectations.
53 Issue 31Clients lack expertise to evaluate the quality of our services delivery.
Client Selection When Engaging Consultants
Consultant Engagement Process
This issue doesn’t map readily into the model, it is more of a micro issue affecting the client-consultant relationship when the client is evaluating the services the consultant has provided on the project.
54 Issue 34Clients are inadequately aware of the importance of training and development.
Consultant's Ability to Manage the Client
Consultant Engagement Process
The issue relates directly to the firm's ability to educate the client on what is necessary to achieve the outcomes of the engagement. This is a micro issue.
55 Issue 32The uncertain state of the market is causing indecision and delays in client decisions.
Consultant's Ability to Manage the Client
Consultant Engagement Process
The issue relates directly to the firm's ability to educate the client on what is necessary to achieve the outcomes of the engagement. An unstable market is likely to make the client more weary and less likely to make decisions which entail risk. This c
56 Issue 50It is a challenge avoiding internal politics of the client organisation.
Consultant's Ability to Manage the Client
Consultant Engagement Process
Avoiding internal politics of the client firm is client-consultant relationship issue and doesn't map into any of the model constructs.
57 Issue 54Management Consultants must develop close, personal relationships with clients.
Consultant's Ability to Manage the Client
Consultant Engagement Process
Building close personal relationships with clients is related to the client-consultant relationship which is a micro issue
58 Issue 58
The relationship with the client may be damaged if the consultant declines a job that doesn’t add value for the client.
Consultant's Ability to Manage the Client
Consultant Engagement Process This issue relates directly to the client-consultant relationship
59 Issue 59
Government clients focus on deliverables (outputs) rather than value (outcomes) when engaging Management Consultants.
Consultant's Ability to Manage the Client
Consultant Engagement Process
This issue is specifically about managng client expectations on an engagement and the affect it has on the client consultant relationahip
60 Issue 65There is a need to educate and manage clients in terms of scope and deliverables of an engagement.
Consultant's Ability to Manage the Client
Consultant Engagement Process
This issue is specifically about managng client expectations on an engagement and the affect it has on the client consultant relationahip
61 Issue 70There is frequent client reluctance to accept and implement Management Consultant recommendations.
Consultant's Ability to Manage the Client
Consultant Engagement Process
This issue is specifically about managng client expectations on an engagement and the affect it has on the client consultant relationahip
62 Issue 6Government places onerous regulatory and other demands on small business consulting firms.
Government as a Regulator
Changing Consultant Environment
This is issue not micro but macro, however a direct link between this issue and the model constructs cannot be identified, because the term onerous regulatory and other demands can include myriad factors.
63 Issue 15
Management Consultants that focus on short-term financial gain, as opposed to building long-term relationships, harm perceptions of the Management Consulting industry.
Perception of the Consulting Industry
Changing Client Environment
This issue does not directly impact individual firm's competitiveness but creates and consulting industry wide issue. However, negative perceptions of the industry can indirectly impact the firm's ability to compete in the Market for Professional Service
64 Issue 20
The inappropriate application of consulting methods by questionable firms undermines many clients’ perceptions of those methods.
Perception of the Consulting Industry
Changing Client Environment
This issue does not directly impact individual firm's competitiveness but creates and consulting industry wide issue. However, negative perceptions of the industry can indirectly impact the firm's ability to compete in the Market for Professional Service
65 Issue 21
Consultants that only push the latest management fad create the perception that Management Consultants are ineffective and provide inappropriate solutions.
Perception of the Consulting Industry
Changing Client Environment
This issue does not directly impact individual firm's competitiveness but creates and consulting industry wide issue. However, negative perceptions of the industry can indirectly impact the firm's ability to compete in the Market for Professional Service
66 Issue 69
Unqualified Management Consultants are negatively impacting the perception of Management Consultants in general.
Perception of the Consulting Industry
Changing Client Environment
This issue does not directly impact individual firm's competitiveness but creates and consulting industry wide issue. However, negative perceptions of the industry can indirectly impact the firm's ability to compete in the Market for Professional Service
67 Issue 9
Management Consultants must be able to maintain relationships with multiple stakeholders (i.e. Clients, Colleagues and Potential Agents) Practice Management
Changing Consultant Environment Maintance of relationships is a micro issue that does not map into any of the model's constructs.
68 Issue 24There is a lack of market recognition of the CMC qualification. Professional Status
Changing Client Environment
Professional status is again a industry wide issue not directly impacting individual firms but influencing the industry as a whole.
Th di ti ti b t M t C lt t d IT Ch i Cli t P f i l t t i i i d t id i t di tl i ti i di id l fi b t
65 Issue 21
Consultants that only push the latest management fad create the perception that Management Consultants are ineffective and provide inappropriate solutions.
Perception of the Consulting Industry
Changing Client Environment
This issue does not directly impact individual firm's competitiveness but creates and consulting industry wide issue. However, negative perceptions of the industry can indirectly impact the firm's ability to compete in the Marke t for Professiona l Service
66 Issue 69
Unqualified Management Consultants are negatively impacting the perception of Management Consultants in general.
Perception of the Consulting Industry
Changing Client Environment
This issue does not directly impact individual firm's competitiveness but creates and consulting industry wide issue. However, negative perceptions of the industry can indirectly impact the firm's ability to compete in the Marke t for Professiona l Service
67 Issue 9
Management Consultants must be able to maintain relationships with multiple stakeholders (i.e. Clients, Colleagues and Potential Agents)
Practice Management
Changing Consultant Environment Maintance of relationships is a micro issue that does not map into any of the model's constructs.
68 Issue 24There is a lack of market recognition of the CMC qualification. Professional Status
Changing Client Environment
Professional status is again a industry wide issue not directly impacting individual firms but influencing the industry as a whole.
69 Issue 26The distinction between Management Consultant and IT Contractor is becoming increasingly blurred. Professional Status
Changing Client Environment
Professional status is again a industry wide issue not directly impacting individual firms but influencing the industry as a whole.
70 Issue 48There is inadequate market awareness of the potential value from engaging a Management Consultant. Professional Status
Changing Client Environment
Professional status is again a industry wide issue not directly impacting individual firms but influencing the industry as a whole.
71 Issue 44It is difficult planning ahead due to an inability to predict the availability of Management Consulting work.
Strategic Planning and Management
Changing Consultant Environment
Strategic planning is an internal issue but does not fit into any of the model constrcuts. Altough it has been argued that K Strategy equals Corporate Strategy the model is primarily a decriptive model of K Strategy and therfore does not map into any of
Appendix H – Accenture Issues Mapped into Knowledge in
Professional Service Firms Model
THEMES ISSUES E & M Constructs CommentCulture is ingrained into organization
Organisational Structure, Knowledge Management
The firm's organisational curture impacts the firm's organisational structure and vice versa, i.e. a culture that encourages knowledge sharing will influence the firm toward a flat structure
Technology enables knowledge management
Knowledge Management
Technology is considered an enabler of Knowledge Management. Allowing employees to share knowledge and access the firm's knowledge base.
Importance of experience and judgement inknowledge capture
Knowledge Management, Knowledge Base
This issue relates to the consultants ability to judge which knowledge should be captured. Providing the means to do this is a Knowledge Management Issue but also requires the consultant to have good knowledge of the firm's Knowledge Base.
Incentives to motivate knowledge sharing
Knowledge Management, Organisational Structure
Incentives to encourage knowledge sharing fall under the umbrella of Knowledge Management. Organisational culture is a product of organisational structure
Knowledge was ingrained into IPSFKnowledge Management, Knowledge Base
Knowledge is part and parcel of any PSF because Knowledge is there stock-in-trade.
Support networks (communities of practices, expertforums)
Knowledge Management, Organisational Structure
Technology is the principle enabler for support networks. The internet allows staff to collaborate and share knowledge regardless of geographic location
Innovation of Knowledge Knowledge Management, Knowledge BaseNot from first principles
Knowledge Management, Knowledge Base
Knowledge Management employs the strategies that will ensure firm staff will resuse knowledge stored within the firm's Knowledge Base rather than reinvent knowledge already created
Stewardship to knowledge contribution – core value
Knowledge Management, Knowledge Base, Organisational Structure
Stewardship is a part the firm's organisational culture which can be attributed to the firm's organisational structure. The stewardship to knowledge contribution is attributed to the KM strategy. The knowledge contribution also enhances the firm's K-Bas
Capture of Knowledge from projects into documentsfor repository Knowledge Management, Knowledge Base This is a KM activity that impacts the firm's K-BaseCreation and innovation of knowledge from reuse ofknowledge Knowledge Management, Knowledge Base This is a KM activity that impacts the firm's K-BaseIdentifying Knowledge Gaps Knowledge Management, Knowledge Base This is a KM activity that impacts the firm's K-BaseAppropriate reuse of knowledge Knowledge Management, Knowledge Base This is a KM activity that impacts the firm's K-BaseReviewing shelf-life of Knowledge Knowledge Management, Knowledge Base This is a KM activity that impacts the firm's K-BaseTime was a challenge
Knowledge ManagementTime was set aside for staff to complete their KM tasks which is a component of the firm's KM practices
Culture was a challenge
Organisational Structure, Knowledge Management
The firm's organisational curture impacts the firm's organisational structure and vice versa, i.e. a culture that encourages knowledge sharing will influence the firm toward a flat structure
Definitive measurement for knowledge Knowledge Management
This is a KM process that will allow the firm to measure the effectiveness of the firm's KM strategies and practices
Correct knowledge reuseKnowledge Management, Knowledge Base
This process involves using KM processes to identify the which is the correct K to leverage on the current project
Volume of data in repository too large
Knowledge Management, Knowledge Base
This is a when the amount of K stored in the K-Base is so large that it is difficult to search through the large volume of K and identify something specific to the task at hand
Costs of knowledge translation
Knowledge Management
This is a KM process used to translate K captured in one language to several others so it can be understood across the entire organisation. The process is expensive and sometimes the intended meaning can be lost in the translation
Client demand drives knowledge transfer
Market for Professional Services, Knowledge Management
The firm's need to compete in the Market for Profession Services drives demand for K-Transfer between client and consultant. This process needs to be managed by the firm as part of the firm;s KM strategy
Consider internal knowledge needs Knowledge Management This is definitely a KM issue
Success factors of Knowledge Management
Knowledge Management Activities
Challenges
Internal Focus
Appendix I – Consulting Issues Study Timeline
Context Case Study Begun - August 2002 Literature Review - October 2002 Interviews - January 2003 Dissertation - February 2003 ACIS Paper Submitted - May 2003 ACIS Paper Accepted - July 2003 Revised ACIS Paper Submitted - August 2003 Inventory Round Began Draft of Instrument April 2003 Sent Draft Copy of Instrument to IMC May 2003 Instrument Approved by IMC - June 2003 Instrument Distributed by IMC - June 2003 Inventory Data Collection Complete - August 2003 Synthesis Process Begun Issues Rationalisation - August 2003 Complete Issue Rationalisation - September 2003 Arrival at Issues Short-List - September 2003 Begun Cognitive Mapping - September 2003 Complete Cognitive Mapping - October 2003 Arrival at Final Issues Short-List - October 2003 Weights Round Begun Draft of Weights Round Instrument - October 2003 First Draft Complete - November 2003 Submitted Request for Web Survey Development Software - November 2003 Draft Submitted to IMC - November 2003 Survey Software Purchase Approved - December 2003 Met with IMC to discuss Draft Instrument - Mid December 2003 Survey Software Installed and Tested - Late December 2003 Web Server Found - January 2004 Access to Web Server Gained - February 2004 Begun Web Survey Construction - February 2004 Web Instrument Construction Complete - March 2004 Pilot Survey Administered Internal to QUT - March 2004 Pilot Survey Administered to IMC Chapter Presidents - March 2004 Instrument adjusted due to feedback from pilot - Mid March 2004 Instrument Approved by IMC - March 2004 Instrument Distributed by IMC - Late March 2004 Weights Round Data Collection Complete - Late April 2004 Met with IMC to discuss strategies to increase survey response - Early May 2004 Proposed Strategies for increases survey responses sent to IMC - Mid May 2004 Response from IMC to proposed Strategies received - Late May 2004 IMC attempt to garner further response from IMC Membership - Mid June 2004 Propose Cold Calling to membership to increases response to IMC - Late June 2004 Response to Cold Calling Strategy received - Late June 2004 Personal Email sent to IMC to their membership to garner further response - July 2004 Newsletter Reminder sent to membership - August 2004 Data Collection Closed - September 2004 Weights Data Analysis Data Analysis Begun - September 2004
Preliminary Report Delivered - October 2004 Data Analysis Complete February 2005
Appendix J – Data and Analysis Tables
Major Issue Major Issue Super IssuesCategory Rank Mean
CEP Client Expectations i02Clients are placing emphasis on leveraging existing systems and on cutting costs (with less emphasis on doing 'new' things). 22 4.16
CEP Client Expectations i29Clients are demanding increased value from consulting services which results in more hours of effort from Management Consultants for the same fees. 51 3.68
CEP Client Expectations i67 Open ended legal liability and onerous contract terms are becoming prevalent. 29 4.00CEP Client Expectations XX 3.95CEP Client Expectations YYCEP Client Selection i31 Clients lack expertise to evaluate the quality of our services delivery. 45 3.80
CEP Client Selection i33Clients are demanding prior industry-specific experience with the approach proposed in tender bids. 40 3.85
CEP Client Selection i57There is difficulty overcoming a client’s ingrained preferences for a particular firm demographic i.e.: younger vs. experienced consultants, regional vs. metro. 35 3.91
CEP Client Selection i63There is sometimes a client predisposition for a particular Management Consultant in what purports to be a competitive bid. 64 3.46
CEP Client Selection i66Clients specify the methodology(ies) required in their Request for Tender, rather than stating their problem/opportunity. 28 4.00
CEP Client Selection i71Clients are demanding Management Consultants with process expertise across industries rather than industry specialist expertise. 9 4.35
CEP Client Selection i72Clients are placing emphasis on a Management Consultant’s reputation rather than professional qualifications. 46 3.79
CEP Client Selection XX 3.88CEP Client Selection YYCEP Managing Clients i32 The uncertain state of the market is causing indecision and delays in client decisions. 16 4.26CEP Managing Clients i34 Clients are inadequately aware of the importance of training and development. 27 4.02CEP Managing Clients i50 It is a challenge avoiding internal politics of the client organisation. 44 3.81CEP Managing Clients i54 Management Consultants must develop close, personal relationships with clients. 72 2.88
CEP Managing Clients i58The relationship with the client may be damaged if the consultant declines a job that doesn’t add value for the client. 11 4.33
CEP Managing Clients i59Government clients focus on deliverables (outputs) rather than value (outcomes) when engaging Management Consultants. 31 3.97
CEP Managing Clients i61There is a need for Management Consultants to work with decision makers and gain exposure at the CEO level. 71 2.98
CEP Managing Clients i65There is a need to educate and manage clients in terms of scope and deliverables of an engagement. 67 3.30
CEP Managing Clients i70There is frequent client reluctance to accept and implement Management Consultant recommendations. 20 4.18
CEP Managing Clients XX 3.75CEP Managing Clients YY
CLE Perception i15Management Consultants that focus on short-term financial gain, as opposed to building long-term relationships, harm perceptions of the Management Consulting industry. 66 3.39
CLE Perception i20The inappropriate application of consulting methods by questionable firms undermines many clients’ perceptions of those methods. 63 3.47
CLE Perception i21Consultants that only push the latest management fad create the perception that Management Consultants are ineffective and provide inappropriate solutions. 59 3.49
CLE Perception i69Unqualified Management Consultants are negatively impacting the perception of Management Consultants in general. 50 3.72
CLE Perception XX 3.52CLE Perception YYCLE Professional Status i24 There is a lack of market recognition of the CMC qualification. 57 3.52
CLE Professional Status i26The distinction between Management Consultant and IT Contractor is becoming increasingly blurred. 21 4.18
CLE Professional Status i36There are limited barriers to entry to the profession i.e. no mandatory professional qualifications like lawyers and doctors. 60 3.49
CLE Professional Status i48There is inadequate market awareness of the potential value from engaging a Management Consultant. 61 3.48
CLE Professional Status XX 3.67CLE Professional Status YY
CLE Sparse Work i30 The poor economic climate is resulting in limited opportunities for Management Consulting work. 15 4.28
CLE Sparse Work i37A lack of available, challenging and rewarding consulting work is forcing Management Consultants to relocate interstate or overseas. 4 4.63
CLE Sparse Work i39Changed government policy regarding the engagement of external consultants is negatively impacting the availability of government work for Management Consultants. 19 4.20
CLE Sparse Work i60Management Consultants are finding it difficult to maintain a steady stream of Management Consulting work. 43 3.82
CLE Sparse Work i64The shortage of Management Consulting work is made worse by the trend for clients to do it themselves. 32 3.93
CLE Sparse Work XX 4.17CLE Sparse Work YY
CLE Tendering i01The proposal process requires substantial employment of resources yet yields little chance of success. 24 4.09
CLE Tendering i05The requirement for Management Consultants to disclose methods and approaches when tendering may result in loss of intellectual property. 26 4.05
CLE Tendering XX 4.07CLE Tendering YY
COE Competition i42
The merging of consulting with other services (e.g.: personal services, accounting services, and project specialist contract work) is creating more competition in the Management Consulting space. 48 3.77
COE Competition i46 There is competition from part-time and non-specialist Management Consultants. 39 3.88
COE Competition i49The concentration of client firm activities in “shared services” centres means fewer business areas/entities toward which Management Consulting firms can target their services. 8 4.41
COE Competition i56Small- Medium sized Management Consulting firms find it difficult to compete with large Management Consulting firms. 23 4.15
COE Competition i08The number of individual and Small- Medium sized Management Consulting firms entering the industry is increasing. 52 3.66
COE Competition XX 3.97COE Competition YY
TOTAL
Major Issue Major Issues Super IssuesCategory Rank Mean
COE Fees i47Government is promoting a standard fee structure to clients for Management Consulting Services, which is limiting fee flexibility. 6 4.46
COE Fees i51There is a need for a Management Consulting industry standard billing system and general fee structure (like solicitors). 1 4.88
COE Fees XX 4.67COE Fees YYCOE Financial Management i35 Annual tax accounting for the consulting practice is onerous. 17 4.25COE Financial Management i45 Managing cash flow of the Management Consulting Firm is challenging. 47 3.78
COE Financial Management i52Individual and Small- Medium sized Management Consulting Firms have difficulty when attempting to obtain loans from financial lending institutions. 7 4.46
COE Financial Management i53 Management Consultants need economical Professional Indemnity Insurance. 69 3.11COE Financial Management XX 3.90COE Financial Management YY
COE Globalisation i13Clients’ preference for international consulting firms is forcing local and regional firms to globalise brandings, services and product offerings. 3 4.68
COE Globalisation i4Client decisions on Management Consulting services are being made at global headquarters rather than at a regional or country level. 5 4.58
COE Globalisation i68Domestic/regional Management Consultants are finding it difficult to compete with global Management Consulting firms. 13 4.30
COE Globalisation XX 4.52COE Globalisation YY
COE Government i17Clients who rely on a consulting-work-subsidy from government, delay project start dates and are indecisive about whether to engage consultants. 10 4.34
COE Government i3Government is influencing which consulting projects private enterprise take on by approving or rejecting subsidy applications. 2 4.70
COE Government i6 Government places onerous regulatory and other demands on small business consulting firms. 33 3.92
COE Government i62The Government provides no preferential support to advantage local Management Consulting firms over global Management Consulting firms. 41 3.83
COE Government XX 4.20COE Government YY
COE HRM i10Management Consultants are placing emphasis on a balanced lifestyle, resulting in lower work output. 34 3.91
COE HRM i23 It is difficult to attract, develop, and retain Management Consultants for the firm. 14 4.28
COE HRM i55There is a need to perform succession planning to ensure longevity of the Management Consulting firm. 49 3.76
COE HRM XX 3.98COE HRM YYCOE KM i14 The Management Consulting firm has no resale value without its people. 54 3.54
COE KM i18Management Consulting firms suffer from the loss of intellectual property that occurs when consultants leave the firm. 18 4.23
COE KM i22The specialised nature of Management Consulting makes it difficult to delegate work to other consultants in the firm. 36 3.89
COE KM i25Substantial demands are placed on Management Consulting resources when developing new intellectual property (e.g. products, services, tools, techniques). 58 3.50
COE KM i27There are risks associated with a Management Consulting firm shifting to a more specialised skill base. 30 3.99
COE KM i28 The Management Consulting profession is perceived as having no recognised body of knowledge. 38 3.88
COE KM i40Working across many unique types of projects limits the Management Consultant's opportunities to leverage/reuse their knowledge and skills. 12 4.32
COE KM i7It is difficult for Management Consulting firms to obtain market intelligence on the supply of and demand for particular consulting services. 42 3.82
COE KM XX 3.90COE KM YY
COE Practice Management i41There is a great amount of time and expense associated with marketing the Management Consulting firm. 55 3.54
COE Practice Management i9Management Consultants must be able to maintain relationships with multiple stakeholders (i.e. Clients, Colleagues and Potential Agents) 70 3.00
COE Practice Management XX 3.27COE Practice Management YYCOE Skills i11 It is challenging to continually update skills via professional development. 65 3.46COE Skills i12 Management Consultants must develop their marketing and sales skills 68 3.14COE Skills XX 3.30COE Skills YY
COE Strategic Planning i16Management Consultants have difficulty establishing a Management Consulting specialist niche that is sufficiently profitable. 25 4.07
COE Strategic Planning i19There is a need to establish a network of complementary Management Consulting skills across Management Consulting alliances/partnerships. 56 3.52
COE Strategic Planning i38 It is a challenge to anticipate future client and consulting firm market and technological trends. 37 3.88COE Strategic Planning i43 There are risks associated with expanding the Management Consulting firm. 53 3.55
COE Strategic Planning i44It is difficult planning ahead due to an inability to predict the availability of Management Consulting work. 62 3.47
COE Strategic Planning XX 3.70
TOTAL
Comparative Statistics
Mean Score by Firm Size
TOTAL Sole
Trader 2 TO 5 6 TO 20 21 TO 100 100+ Percentage of Response -> 47.30% 35.30% 13% 3.30% 1.10%
Major Issue
Category Major Issue Mean Mean Mean Mean Mean Mean CEP Client Expectations 3.95 4.14 3.96 4.56 4.72 4.33CEP Client Selection 3.88 3.82 3.90 3.75 4.31 4.57CEP Managing Clients 3.75 3.78 3.81 3.77 4.39 4.94CLE Perception 3.52 3.76 3.75 3.91 4.42 4.88CLE Professional Status 3.67 3.41 3.56 3.75 4.46 4.50CLE Sparse Work 4.17 3.81 3.71 4.07 5.13 4.80CLE Tendering 4.07 3.73 3.98 3.65 5.25 3.25COE Competition 3.97 3.98 3.97 3.98 4.93 4.50COE Fees 4.67 3.99 3.89 4.38 4.25 3.25
COE Financial Management 3.90 4.09 4.02 4.04 4.67 5.00
COE Globalisation 4.52 4.42 4.50 4.69 4.06 4.83COE Government 4.20 3.89 3.79 3.88 4.34 3.63COE HRM 3.98 3.90 3.95 4.42 3.89 4.33COE KM 3.90 3.74 3.72 3.62 4.50 4.38COE Practice Management 3.27 4.14 3.84 3.61 4.42 4.25COE Skills 3.30 3.75 3.80 3.69 4.59 5.00COE Strategic Planning 3.70 3.26 3.09 3.88 3.13 5.10
Ranking Colour Legend Top 2nd Top 3rd Top Lowest
Mean Score by State TOTAL ACT NSW QLD SA TAS VIC WA
Percentage of Response -> 2.70% 23.40% 30.40% 7.10% 3.80% 18.50% 12.50%
Major Issue Category Major Issue Mean Mean Mean Mean Mean Mean Mean Mean
CEP Client Expectations 3.95 3.27 3.82 4.08 3.82 4.62 3.92 3.69CEP Client Selection 3.88 3.20 3.82 4.04 3.44 4.39 3.76 3.75CEP Managing Clients 3.75 3.07 3.32 3.56 3.38 3.16 3.26 3.78CLE Perception 3.52 3.45 3.26 3.57 2.98 4.25 3.29 4.10CLE Professional Status 3.67 3.40 2.54 3.97 3.40 2.54 3.55 3.73CLE Sparse Work 4.17 3.88 3.96 4.54 4.11 3.91 3.99 3.91CLE Tendering 4.07 3.10 4.24 4.16 1.31 2.22 3.77 4.22COE Competition 3.97 3.72 3.76 4.26 3.74 4.03 3.75 3.91COE Fees 4.67 5.10 4.58 4.96 4.58 3.29 4.55 4.59COE Financial Management 3.90 2.85 3.81 4.06 3.54 3.25 2.99 3.89COE Globalisation 4.52 4.53 4.36 4.88 4.72 3.95 4.18 4.37COE Government 4.20 3.85 3.97 4.44 4.12 3.97 4.11 4.21COE HRM 3.98 3.27 4.05 4.00 4.20 4.19 3.69 4.09COE KM 3.90 3.20 3.73 3.00 4.01 3.64 3.23 3.77COE Practice Management 3.27 2.90 2.74 3.46 3.08 5.00 3.00 3.55COE Skills 3.30 2.90 2.79 3.51 3.23 4.22 3.19 3.59COE Strategic Planning 3.70 3.08 3.57 3.10 3.14 4.14 2.71 3.67
Mean Score by Percentage of Public Sector Work
TOTAL 0% 1-25% 26-50% 51-75% 76-
100% Percentage of Response -> 17.40% 14.10% 14.10% 28.30% 21.70%
Major Issue
Category Major Issue Mean Mean Mean Mean Mean Mean CEP Client Expectations 3.95 3.68 3.55 4.15 4.21 3.85CEP Client Selection 3.88 3.54 3.57 3.60 4.07 3.29CEP Managing Clients 3.75 3.27 3.92 4.06 3.71 2.91CLE Perception 3.52 3.70 3.46 3.88 3.34 3.17CLE Professional Status 3.67 3.01 3.66 4.05 3.67 2.28CLE Sparse Work 4.17 3.42 3.80 4.47 4.25 3.21CLE Tendering 4.07 3.82 3.87 4.16 4.21 4.09COE Competition 3.97 4.20 3.67 4.27 4.06 3.71COE Fees 4.67 4.49 4.60 5.08 4.89 4.53COE Financial Management 3.90 3.74 3.96 4.18 3.84 3.76COE Globalisation 4.52 4.60 4.35 4.63 4.69 4.50COE Government 4.20 4.05 3.90 4.24 4.32 4.31COE HRM 3.98 3.97 4.41 4.24 3.88 3.59COE KM 3.90 3.96 3.82 4.09 3.83 3.73COE Practice Management 3.27 3.47 3.44 3.49 2.92 2.98COE Skills 3.30 3.46 3.52 3.62 2.93 3.03COE Strategic Planning 3.70 3.63 3.62 4.18 3.63 3.42
Ranking Colour Legend Top 2nd Top 3rd Top Lowest
Appendix K – Synthesis Process Cognitive Mapping
Elevating TRG & DEV as a
strategic issue in the clients mind
Knowledge Management
Internal consultants of a
non MC organisation
Consultants in diff. Div’s have
little contact with each other
Lack of support for MCs due to lack of firm MC
knowledge
Lack of access to IS and KM systems for mobile and remote
MCs
Developing Consulting
products and IP
Obtaining intel. On supply and demand for particular MC services
Difficulty in building retained value in MC firm
Infrastructure, client list, & rep
have no commercial value
No distinct body
of knowledge like PM
Difficulty in delegation to other
MCs due to specialist nature of MC
Loss of IP when partners/MCs leave the firm
Unique nature of projects prohibits the transfer of knowledge assets to new projects
Destruction of innovative MC
products due to poor methodologies
Convincing clients that methodologies are
transferable to sectors the firm has not
previously worked in
Capturing knowledge and expanding firm
knowledge base
Consultant Skills
More emphasis on Marketing & Sales Skills Than
Tech Skills
Availability and Cost of
PD
Constant need to update skills to
remain competitive
Find time for PD Vs Client
work
Risks of Specialising Vs
Generalising
Sole practitioners need a forum to discuss issues and problems
IMC
Lack of professional
advocacy
Failure to address perceived lack of credibility of MC
Present PD that is poor or
out of date
Need to deliver services that provide mutual benefit rather
than increase competitive nature
Need for SME firms to have access to business SPT facilities
Government
Change in Govt policy having a negative impact
on MC firms
Focus on outputs rather than outcomes when
engaging external consultants
Negative impact of restrictive
policy & regulation
Lack of support for
SMEs
Long wait on lead times from Public Sector
Clients
No mechanism for advantaging local PSFs over
global PSFs
Slow approval of govt subsidy halts proj start
date and results in client indecision
Govt no longer employs MCs
requiring MC firms to source new work
QLD Govt subsidises local
business to promote MC
Acting as middleman between client &
consultant with little consideration for MCs
As a Regulator
As a Client
Competition
Contractors
Part-time
Consultants
Unqualified Consultants
Large MC firms making it
difficult for SME firms to compete
Recommended by Recruiters
over MCs
Employed as in house employees
to perform consulting work
Merging of personal services,
accounting & proj spec work
Enforced Retirees
SME firms able to compete in
space Big 4 have abandoned
SME firms ability to
compete in corporate space
Non-Specialist
MCs
Pressure on operational and profit margins
Constant innovation required to
compete as a SME firm
Majority of lucrative work handed to large firms regardless of
price or quality
SMEs and Individual
MCS
Large MCs are able to undercut Spec MCs due to Govt subsidies
Clients developing “shared services” centres, with staff providing MC advice to the multiple businesses in the
group.
Professional Status of MC
No Barriers to Entry
No Market recognition of
CMC
MCs moving into IT space -> little diff. Between MC and
contractor
MC has no recognisable pro branding
Professionals calling themselves MCs when they don’t provide MC
services
Need to increase public awareness of what MCs are and what they can do
Need for educational institutions to establish qualification for entry
into MC Industry
Perception of MC firms as vendor
neutral considered an advantage
Formal professional quals creating a basis for differentiating on relevant MC quals
Sparse availability of
consulting work
Economic Climate
Trend toward insourcing
Client use of proprietary tools negates need for
tech MCs
Client HR can act as a blocker
preferring to use internal services
Sparse availability of
IT Work
Poor economic climate exacerbated by
turnover of client MGT
Lack of rewarding and challenging work in
QLD is forcing MCs to move interstate or OS
Ethical Dilemmas
Lucrative Jobs that don’t add
value
Onerous Contract Terms & Open-end Legal Liability as
standard
Assisting clients translate
information into strategy
Client-Consultant
Relationship
Former bureaucrats now MCs exploiting prior relationships to
obtain work
Preference toward
leveraging existing systems
Client
Expectations
Need to work with Decision maker and get exposure at CEO
level
Unqualified Consultants
Client Perception of Management
Consultants
Harming Perception of
MCs
Poor selection process resulting in poor projects
Due toTech. & Globalisation -> MCs
no longer have and Info Adv/Clients
Clients are reluctant to make strategic changes recommended by MCs
Perception - Regional firms don’t have the expertise that Metro
firms do
Cost cutting & IT implantations to reduce
cost of human employment
Preference of multinationals over domestic
MC firms
Clients employing small firms over Big 4
Firms
Greater capacity for SMEs to form personal
relationships with clients
Clients are more sophisticated enabling them
to be more specific with requirements
Low fees result in poor quality service
but increase MC profits
Uncertain times result in uncertainty and delays in client
decisions
Aus execs are not able to assess MC methodologies or measure results
Aus execs are easily impressed
by fad based concepts
(-) perception that MCs are expensive,
incompetent & provide inappropriate solutions
MCs push the latest fad rather
than correct solution
Need for private sector to have same
understanding of MCs that Public Sector does
Clients requiring more value =
more hours with no additional fees
MCs focused on short-term financial gain than building long-term relationships
Difficulty gaining work from large clients
due to relationships formed with other MCs
Potential to damage relationships with
clients by declining jobs that don’t add
value
Maintaining existing relationships
Vs seeking new clients
Avoiding internal politics
of client organisations
Need for LDRship from CEOs
and MGT on MC engagements
Clients’ poor understanding of financial impact
of decisions
Achieving client expectations as well as the Co’s commercial
outcomes
Preference for clients to employ MCs that are
former employees
Overcoming market preference for clients
to use recruiting agencies
Client preference for grey-haired
MCs over younger MCs
Need to frequently update image/
appearance to meet client expectations
Reluctance in investing in MGT
Vs equipment and TRG
Working collaboratively with
business partners and client less committed
to IT
MCs ability to Manage the
Client
Client Selection when engaging
consultants
Age discrimination from Generation-X
decision-makers towards Baby Boomer
MCs
Difficult to rate and differentiate
MCs on performance
Globalisation
Purchasing decisions from
branch to overseas HQ
OS HQ employing single G MC Firm for G Change Initiative
Turning Aus Co’s into Branch
Officer of Multinationals
Globalising services, products
& brand due to client emphasis
Tendency for global clients to engage global
MC firms
MC Practice Management
On Selling
Need to market whilst delivering quality projects
Tax
Funds from Banks &
Finance Co’s
Expanding Consulting
Firm
Home to Professional
Premises
Attracting, developing,
retaining MCs
High quality flexible
workforce Vs low costs
Time MGT of project length to ensure consistent
level of work
Establishing a specialist niche that is sufficiently lucrative
Building business interstate
Consulting Practice HRM
Majority of work from word-of-mouth referrals
or existing clients
Difficulty with future business planning due to lack of continuity of
MC work
More emphasis on a balanced
lifestyle
Lack of appropriately qualified
and experienced Consultants
Managing Cash Flow
Time & expense of Marketing
Unable to offer structured career
path opportunities
Limited capacity of SME firms to
take on large projects
Failure of MC Firms to
implement their own advice
Succession Planning
Need to employ more MCs or
merge to take on large projects
Require a billing system and
general fee structure like solicitors
Time taken for new MCs to earn fees
Time and expense of
training new MCs
Risks associated with forming partnerships or
alliances with other MC firms
Keeping abreast of technology
that will improve firm efficiency
Maintaining control over a project where
the MC firm is a subcontractor 2 another
MC
Achieving National and
Global Capability
Time & Development of strategies for
generating new & on-going business
Need to establish small network of
complimentary MC skills for alliances
Shared services forming a virtual office
of networked SME MCs
Long lead time in winning existing or new business
Rewarding performers
appropriately
Need to anticipate future market trends to ensure growth of firm
& assist clients
Implementing strategies to leverage off contractors
Implementing strategies to develop product lines such as
e-learning
Maintaining Consistent
Level of Work
Marketing of
MC Firm
Financial Practice MGT Strategic
Planning & MGT
Maintaining relationships with
multiple stakeholders
Increasing focus on cost but not at the
expense of partnering style relationships
Tendering Process
Expense in time and cost
Proliferation of web based
tendering
Selection based upon price rather than relationships
Tendering process exploited by Govt to gain
IP
Tendency for tender selection
criteria not strictly observed
Clients specify methodologies rather
than problem or opportunity in RFT
Elevating TRG & DEV as a
strategic issue in the clients mind
Knowledge Management
Internal consultants of a
non MC organisation
Consultants in diff. Div’s have
little contact with each other
Lack of support for MCs due to lack of firm MC
knowledge
Lack of access to IS and KM systems for mobile and remote
MCs
Developing Consulting
products and IP
Obtaining intel. On supply and demand for particular MC services
Difficulty in building retained value in MC firm
Infrastructure, client list, & rep
have no commercial value
No distinct body
of knowledge like PM
Difficulty in delegation to other
MCs due to specialist nature of MC
Loss of IP when partners/MCs leave the firm
Unique nature of projects prohibits the transfer of knowledge assets to new projects
Destruction of innovative MC
products due to poor methodologies
Convincing clients that methodologies are
transferable to sectors the firm has not
previously worked in
Capturing knowledge and expanding firm
knowledge base
Pressure on Consulting
Fees
Lack of Client
Confidence
Poor demand for consulting
services
Competition from Part-Time/Non-
Specialist MCs
Scepticism from CEOs that MCs
can deliver value
Client HR and Risk MGT Dept
reduce fee expectations
Difficulty translating fees into value when MCs undercut to get
foot in the door
QLD Govt indicate standard fee structure to clients limiting fee
flexibility
Budgetary Constraints of
clients
Client Consultant Relationship
Ethical Dilemmas
Client Selection when engaging
MCs
Client
Expectations
Attempting to compete with MCs that have a prior relationship with
a potential client
Overcoming client preferences for a particular firm demographic
Client’s inability to assess MC methodologies or
measure results
Potential to damage relationship with client by declining jobs that don’t
add value
Preference to leveraging existing systems and cost
cutting
Clients are more sophisticate enabling
them to be more specific with requirements
Need to work with decision maker and
gain exposure at CEO level
MCs ability to
Manage the Client
Client reluctance to accept and implement MC recommendations
Avoiding internal politics
of clients
Uncertain times result in uncertainty and delays in
client decisions
MCs that focus on short-term financial gain as
opposed to building long-term relationships
Harmful Perception of MCs
Perception that MCs are expensive incompetent &
provide inappropriate solutions only pushing the latest FAD
Poor selection processes resulting in poor projects
Negative impact of unqualified MCs on the perception of MCs in
general
Clients requiring more value resulting in more hours for no additional
fees
Client’s poor understanding of the financial impact of
decisions
Open ended legal liability
and Onerous Contract Terms as standard
Competition from Part-time and Non-specialist
MCS
Changing Client Environment
Tendering Process
Sparse Availability of Consulting
Work
Globalisation
Poor economic climate resulting in limited opportunity for MC
work
Trend for clients to insource projects rather
than seek MC assistance
Lack of challenging and rewarding MC
work is forcing MCs to move to another region
An exercise requiring substantial employment of
resources yet with little chance of success
The requirement to disclose methods and approaches results in
loss if IP
?
Client preference for Global MCs forcing MC firms to
globalise brandings, services & product
offerings
Client decisions made at a global level rather
than a regional or country level
Domestic/Regional MCs finding it difficult
to compete with Global MCs
Government as a
Client
Change in Govt policy negatively impacting
availability of Govt work for MCs
Govt clients focus on outputs rather than
outcomes when engaging MCS
Lack of client confidence with MCs
due to large firm failures
Pressure on
Consulting fees
Sparse availability of
work Govt indicate standard fee
structure to clients limiting fee flexibility
No Market Recognition of CMC
Professional Status
No Barriers to entry of the profession I.E.:
Mandatory professional qualifications
Blurring distinction between MC and IT
contractor
Need to increase public awareness of what MCs
are and can do
Changing Consultant Environment
MC Practice Management
Consulting Practice HRM
Financial Practice
Management
Attracting, developing, and retaining MCs for
the firm
The need to conduct succession planning
Many MCs are placing a greater Emphasis on a Balanced Lifestyle
MCs ability to maintain a consistent level of work
Time and expense associated with
Marketing the MC Firm
Maintaining relationships with
multiple stakeholders
Managing MC Firm Cash
flow
Requirement for an MC standard billing system
and general fee structure like solicitors
Need to establish network of
complimentary MC skills for alliances
Strategic Planning and Management
Difficulty with future business planning due to lack of continuity of MC
work
Need to anticipate future market and technological
trends
Establishing a Specialist Niche that is sufficiently
lucrative
Management Consulting Skills
Professional Development ??
Greater Emphasis on Marketing & Sales skills
than technical skills
Risks associated with Specialising Vs
Generalising Skill Base
Merging of personal services, accounting,
services & project specialised contract work
Acting as a middleman between Client & MC
with little consideration for needs of MCs
No mechanism for advantaging local PSFs
over global PSFs
Client Reliance upon govt subsidy halts proj start
date and results in client indecision
Increasing number of SME and individual
MCs
Competition
Increasing Competition from Part-Time and Non-
Specialist MCs
Large MC firms making it difficult for SME firms to
compete
SMEs able to compete in market space abandoned
by ‘Big 4’ MC firms
Clients “shared services” centres providing MC advice to the multiple
businesses in their group.
Government as a
Regulator
Tax System and Finance
Professional Indemnity
Insurance
Risks associated in expanding the MC firm
geographically and/or via alliances
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