Organizational diagnosis in practice: a cross-classification analysis using the DEL-technique

In this paper, an empirical research about organizational diagnosis in The Netherlands is presented. The main research question is whether the usage of the kind of conceptual organizational diagnosis model and computer support in diagnosing problem situations is contingent upon background characteristics of management consultants and their agencies. The DEL-technique was applied to test a number of propositions among 72 respondents of a random sample of 300 Dutch consulting agencies. The results indicate that size of an agency, educational specialization, and work experience are important characteristics with respect to their usage of conceptual organizational diagnosis models. Computer support was not found to be dependent on management consultant and agency characteristics in the specific hypothesized relationships.     

Reflexion als Herausforderung in der Organisationsberatung Ein kritisch-organisationspädagogischer Blick auf die Professionalisierung

Reflection of the consultants advances to a central attribute of professional organizational consulting. Particularly the systemic and process consulting render outstanding services to this strategy of professionalization. This strategy bases on the assumption, that especially reflection enables to structure experiences und the role of the consultants in consultation projects in order to learn from them, i. e. to professionalize. A (self-)critical view to practical experiences, as the article focusses on, points up the challenges, which accompany reflection: Consultants – as well as their clients – have the problem, that they are not able to disclose influences of power, instrumentalization and projection. A confrontation of practical experiences with educational perceptions promises further impulses.     

Macht in der Organisationsberatung

Power in organization counseling. A qualitative study in a hospital in East Germany Power is a main topic of this analysis of a consulting process in an East German hospital: How power is appearing within organizational consulting? What is the power the client has, and the consultants have? And what is the interrelation between power and the resistance to change? In recourse to the theory of micropolitics, power is understood as the combination of rules and distribution of resources within an organization. The consulting process itself is interpreted as the consultant’s introduction to the ongoing game the organization is playing. The qualitative case study of the consulting process in an East German hospital clearly shows, how ineffective interventions remain, if the consultants fail to recognize and take into consideration the valid combination of rules and distribution of resources. In the presented case this combination is based on the peculiar history of East Germany. It was only after the project had failed that the consultants realized that they had been practiced upon.     

Management consultancy’s role in delivering lasting [triple bottom line] benefits

Abstract

Management consultants have become ubiquitous in helping improve organizational performance. This paper presents an investigation of the impact of their interventions on organizational sustainability and growth through the performance improvement work carried out for and with their clients. The paper presents the findings of a questionnaire survey of 440 respondents from 206 countries; 197 of respondents were Small and Medium Sized Enterprises (SMEs) and 243 from large organizations. There is a particular focus on knowledge transfer in terms of urgency and impact of the work with regard to the extent to which consulting interventions in SMEs, as well as large multinational corporations, embed long-term sustainability practices.     

Strategy consultants—Do they add value?

To improve their strategy decision-making, managers have sought the assistance of strategy consultants. Strategy consultants differ in the degree to which they focus on content or process, the degree to which they are transactive or participative in their consulting approach and their level of specific expertise. Research on the benefits of strategy consulting is limited and inconclusive. While individual firms show concern about monitoring effectiveness, their approach is rarely comprehensive and often ignores measurement of company benefits. Recommendations for both clients and the profession are set out to improve the benefits of strategy consulting assignments.     

Getting the most benefit from information systems consultants

Consultants are usually well-meaning people who enjoy the variety of organizations and problems they face in their work. Most do not like to get bogged down in fruitless and wasteful consulting engagement any more than managers of health care organizations like to supervise them, but at least the consultants are paid for their time. The health care organization that defines a project poorly, does not know what it wants from consultants, or does not direct consultants will pay the price in increasingly scarce resources squandered. The tips in the following article for managing an information systems consulting engagement apply to most consulting engagements and to the use of other expensive advisers, such as attorneys and engineers. But information systems is a field particularly foreign, and often threatening, to most administrators and physician executives, so the risk of wasting money on unsuccessful consulting engagements is high.     

Incorporating multiple levels of analysis into occupational stress research

In recent years, more and more research in the organizational sciences has incorporated a multiple levels of analysis perspective (e.g. individual, group and organizational) into models of organizational behaviour. The study of occupational stress, however, has continued to focus almost exclusively on the individual level of analysis. In this paper, the authors contend that incorporating a multi-level perspective in the study of occupational stress has theoretical as well as practical value. The authors illustrate their position using results from an occupational stress research programme conducted by the Walter Reed Army Institute of Research.     

Consulting--Part 2. The art and science of using consultants

Part I of this series described a research project--a survey of more than 300 physician executives. Asked to share their personal experiences of unsuccessful consultations, our correspondents painted a clear picture of what can go wrong when organizational consultants enter health care systems, and described the lasting destructive sequelae to failed consultations. The two issues responsible for most failed consultations were the intrusion of internal politics into the process and the failure to clearly establish and maintain consensual goals. In Part 2, the consultation process is explored from a very different perspective. What are the issues that often trigger requests for consultation services, as well as the dynamics that can foreshadow success or failure before consultants are even engaged? What are the pitfalls and pointers for the successful use of consultation services?     

Psychodynamik von Geld und Besitz in mittelständischen Familienunternehmen

The author discusses experiences during a research project dealing with family businesses. In those businesses the individual psychodynamic of family members is closely confounded with the dynamics of necessary role behavior. One of the most critical situations is the successful succession of generations. Those processes are often subverted by an unconscious destructiveness resulting from unresolved, often gendered interpersonal conflicts and multiple insults. To support family businesses saving their future consultants have to be sensible not only for economical profit but for emotional gratification too, creating an atmosphere which allows all participants speaking freely about their hopes and fears. The article presents social configurations which a consultant must comprehend well if he wants to give reliable orientations to their clients.     

Service Coproduction with Information Stickiness and Incomplete Contracts: Implications for Consulting Services Design

Drawing from three theoretical bases—“information stickiness” from the knowledge management literature, “service coproduction” from the service operations management literature, and “incomplete contract theory” from the transaction cost economics literature—we discuss a theoretical framework and develop models to study the efficiency of the service coproduction process in a knowledge‐intensive consulting environment. We apply, refine, and interpret these theories to determine how work should be allocated between the consultant and the client and the corresponding pricing under different contractual relationships that occur in this industry. We find that, with a pricing schedule that relates the fee adjustment to the self‐service level and one party's ownership of the residual right to specify the workload allocation, the client underinvests her efforts in the service coproduction process, whereas the consultant overinvests his efforts, resulting in an inefficient process. In addition, to improve overall process efficiency, we show that the more productive party should own the residual right to respecify the self‐service level when the final service need emerges. Our results, as well as interview data from experienced consultants, provide insights into the causes of inefficient service delivery processes and offer direction for achieving better efficiency through contract design and pricing schedules.     

Getting the most for your consulting dollars

Major changes in the health care financing and delivery system have usually been accompanied by an increase in demand within the health care field for consulting services. The passage of Medicare/Medicaid in 1965 is one example. The passage of the DRG-based prospective pricing system in 1983 is another. Both spawned a substantial amount of work, and income, for consulting firms. Now the health care field is engaged in nearly total transformation as the forces of health care reform at the national level are met with myriad adjustments at the local and regional levels. Managed care, already a byword, is being strengthened by a multitude of so-called integrated system initiatives. It is not easy to survive, and the call is out to consultants to save the day, or at least stave off disaster. In the following four articles, Marilyn Kennedy, a member of the ACPE faculty and a consultant herself, gives some advice on how to make the consulting arrangement successful; three physician executives provide a glimpse at consults that have worked, and some that did not work.     

Consulting--Part 1. Why consultations fail

The first article in this series describes a research project--a survey of more than 300 physician executives. Asked to share their personal experiences of unsuccessful consultations, our correspondents painted a picture of what can go wrong when organizational consultants enter health care systems, and described the lasting destructive sequelae to failed consultations. The two issues responsible for most failed consultations were the intrusion of internal politics into the consultation process and the failure to clearly establish and maintain consensual goals. Part 2 of this series will explore the consultation process from a different perspective, examining the issues that often trigger requests for consultation services and the dynamics that can foreshadow success or failure before consultants are even engaged.     

Nurturing clients’ trust to encourage engagement success during the customization of ERP systems

Customization is a crucial, lengthy, and costly aspect in the successful implementation of ERP systems, and has, accordingly, become a major specialty of many vendors and consulting companies. This study examines how such companies can increase their clients’ perception of engagement success through increased client trust that is brought about through responsive and dependable customization.Survey data from ERP customization clients show that, as hypothesized, clients’ trust influenced their perception of engagement success with the company. The data also show that clients’ trust in the customization company was increased when the company behaved in accordance with client expectations by being responsive, and decreased when the company behaved in a manner that contradicted these expectations by not being dependable. Responses to an open-ended question addendum attached to the survey corroborated the importance of responsiveness and dependability. Implications for customization companies and research on trust are discussed.     

University–industry relationships and open innovation: Towards a research agenda

Organizations increasingly rely on external sources of innovation via inter‐organizational network relationships. This paper explores the diffusion and characteristics of collaborative relationships between universities and industry, and develops a research agenda informed by an ‘open innovation’ perspective. A framework is proposed, distinguishing university–industry relationships from other mechanisms such as technology transfer or human mobility. On the basis of the existing body of research, the role of practices such as collaborative research, university–industry research centres, contract research and academic consulting is analysed. The evidence suggests that such university–industry relationships are widely practised, whereby differences exist across industries and scientific disciplines. While most existing research focuses on the effects of university–industry links on innovation‐specific variables such as patents or firm innovativeness, the organizational dynamics of these relationships remain under‐researched. A detailed research agenda addresses research needs in two main areas: search and match processes between universities and firms, and the organization and management of collaborative relationships.     

Inside Out? Organizational Membership,Ambiguity and the Ambivalent Identity of the Internal Consultant

Changes in organizational structure, roles and technologies have led to an increasing appreciation of the complexities of organizational membership. While a growing literature has focused on this issue with regard to precarious and marginal employees, this paper explores how senior and middle managers in ambiguous roles make sense of their work identity and organizational membership. Based on extensive interviews with human resource and organizational development managers operating as 'internal consultants', it is argued that managers in such ambiguous roles seek to develop a preferred identity which balances both organizationally distinctive and inclusive elements. While potentially conflicting, this ambivalent position can also be a source of strength and differentiation, involving claims to structural autonomy and specialist expertise, aligned to an intimate understanding of organizational politics and personalities. Through analysis of the interview data, the paper highlights the boundary dimensions around which managers in internal consulting roles develop such an ambivalent organizational identification, the ways in which distinctive and inclusive aspects of identity are rationalized, and the constraints upon the achievement of a preferred identity as an internal consultant.     

Wie Prozess- und Fachperspektive zusammenführen?

Difficult problems of practice often are the result of inextricably linked technical and social issues. The author examines the theoretical foundations and practical experiences with an approach that blends training and coaching in order to improve consulting practice. Two counselors run a thematically focused workshop and advocate from an expert advice and process consultation perspective. It is very important that the three stakeholders – client, expert and process consultant – try to solve the issue in a creative and respectful way.     

Face-to-Face wird überbewertet – Telefoncoaching aus Klienten- und Beraterperspektive

Claudia Bredt talks to Dr. Andreas Knierim about her experiences with telephone coaching from a client and consultant perspective. Claudia Bredt has been using the medium telephone for several years as a format for supervision and coaching. She combines face-to-face sessions with telephone consulting. At the same time, she has also experienced the good effects of telephone coaching herself as a client.     

Strategien des Konfliktmanagements

Strategies of conflict management. Coaching, supervision and organisational development in comparisonHow do different kinds of professional consultants engage in conflict management and what do they concentrate on most in their consulting work? This article explores and compares the approaches of professional coaches, supervisors and organisational consultants, focussing on the central differences and commonalities of the consulting approaches that emerge from three case studies of conflict resolution. Whereas coaching, relying on the idea that conflicts in a business are best addressed by leaders and a top-down strategy, trains executives in conflict resolution, supervision and organisational consulting emphasize a participatory model that involves all the affected parties in conflict resolution. The author considers the various consequences these approaches have for those seeking help, as well as the substantive and methodological differences become evident in the course of consulting sessions.     

New perspectives on the governance of executive compensation: an examination of the role and effect of compensation consultants

We develop a multi-theoretic approach, drawing on economic, institutional, managerial power and social comparison literatures to explain the role of the external compensation consultant in the top management pay setting institutional field. Taking advantage of recent disclosure requirements in the UK, we collect data on compensation consultant use in 232 large companies. We show that consultants are a prevalent part of the CEO pay setting scene, and document evidence of all advisor use. Our econometric results show that consultant use is associated with firm size and the equity pay mix. We also show that CEO pay is positively associated with peer firms that share consultants, with higher board and consultant interlocks, and some evidence that where firms supply other business services to the firm, CEO pay is greater.