organising and sustaining internal consultancy

ORGANISING AND SUSTAINING INTERNAL CONSULTANCY

Andrew Sturdy, University of Bristol Nick Wylie, Oxford Brookes University

AGENDA

9.45 – 10.05 IntroductionsVeronica Hope-Hailey, Cass Business SchoolCaroline Lumb, Head of Institute of Consulting

10.05 – 11.30 Organising internal consultancy

11.30 – 12.00 Break

12.00 – 13.15 Sustaining internal consultancy

13.15-13.30 Closing remarks

ORGANISING INTERNAL CONSULTANCY

Outline of internal consultancy research project

Key findingsOutcomesVariety of forms and practiceShared characteristics

THE RESEARCH PROJECT

BackgroundMinimal research on internal consultancyFocus on internal consultant rather than

consultanciesOutsider view

The organisation of internal consultancy units (ICUs)Dynamics / narrativesForm, structureClaimed outcomesDilemmas

THE RESEARCH PROJECT

Defining and identifying internal consultancy – self-identify

MethodologyExploratory research

Qualitative / Interview based - 93 interviews across 24 organisations (public and private sector)

ICs and some clients

KEY FINDINGS

Wide range of outcomes / impacts

Variety, dynamism and no fixed type

Shared experiences

Challenge of sustaining ICUs

OUTCOMES

Common perceptions of outcomes:Cost savings (e.g. headcount) / Efficiency /

Integration

Less common outcomes of ICU work Strategic direction / knowledge transfer

Difficulties of demonstrating impactAbsence of charging mechanisms Negotiate not implement Joint working

‘So there is all sorts of scope for money zipping all over the place. So it’s very unlikely that we

can have a sensible mechanism for doing it (charging for services)’

‘If we did have a charging mechanism I suspect we’d have much less work. We don’t switch

money around, that would be a waste of time and management accounts’

‘We’ve had no problem getting services to pay for the work because they find it useful.’

VARIETY OF FORM & PRACTICE

Consultancy traditionOperational efficiency Organisational DevelopmentStrategyProject / Programme Management

SizeLess than 10 consultants = 9Between 10 and 20 = 4Between 20 and 50 = 750+ consultants = 4

VARIETY OF FORM & PRACTICE

Structural LocationCentralised and independentCentralised service function Divisional

Structural formFunctional teams Mapped onto business units Hierarchies linked to size

VARIETY OF FORM & PRACTICE

Dynamics Tradition - Activities , diversificationSize - Headcount Structural location – Centralisation /

decentralisation

Alternative providersMultiple ICUs in same organisationDuplication Vs differentiation (variety)?

SHARED CHARACTERISTICS AND EXPERIENCES

Internal outsider and project/programme managing roles

Work generation – formal and informal mechanisms (‘corridor conversations’)

Limited implementation, knowledge transfer and/or use of KM systems.

Sustainability

‘All I needed was for an independent group to come up with the same thing that I’ve been telling them over and over. Because

that way I know my message will be listened to’.

‘Implementation is often long-term, heavily involved, difficult to extract yourself from,

so I don’t think that’s us. I don’t think implementation requires consultancy

skills…’

ORGANISING IC - SUMMARY

Wide range of outcomes / impacts

Variety, dynamism and no fixed type

Shared experiences

SUSTAINING INTERNAL CONSULTANCY?

It is perfectly possible that somebody could turn round in a year or two’s time and say “right, we’re going to bin internal consultancy”

WHY SUSTAINABILITY?

Uncertainty is at the heart of management and change

Consultancy as solution, but has its own uncertainties

Product RelationshipSectorOrganisational - greater for internals?

PRECARIOUS ICUs

All ICUs reflected on uncertain existence; most had persistent concerns

Even in stability/growth, a quarter were disbanded or found new homes

SOURCES OF UNCERTAINTY AND SOLUTIONS?

Sponsorship / relationship management

Value-add / expertise and diversification

Consultancy identity / credibility and work prioritisation

SPONSORSHIP AND RELATIONSHIP MANAGEMENT

Senior management sponsorshipNecessary but precarious and possible

burden

Formal and informal relationship management Consultants responsible for client

departments New lease of life/home or raise expectations

unduly

‘(A new executive) took one look at it (the ICU) and said, “What you’re doing, the HR department ought to be doing, and the other bit that you’re doing, the

managers ought to be able to do for themselves. I don’t want an internal

consultancy anymore.”’

‘We became almost seen as that deputy CEO’s eyes and ears around the

organisation, which was actually quite detrimental to what we were trying to

do’

VALUE-ADD / EXPERTISE AND DIVERSIFICATION

Provision of value adding, (usually) ‘high level’ and continually relevant service?

Branded (e.g. Six Sigma) or generic methods

DiversifyUp-skill to strategy, facilitation and/or

programme managementRisks credibility loss

VALUE-ADD / EXPERTISE AND DIVERSIFICATION

Diversify to external clients Income & added credibility but risks too

(Or specialise/concentrate)

‘I said to my people, “Reputation, reputation, reputation.” If they

abolished us tomorrow, what would change? So reputation is all, really’

‘….We could even let the internals have a go at it…’

‘…Going out and just re-validating how many posts (jobs) you should have in a

particular area…in retrospect I don't think (that) was the best use of their

(consultants) time.’

CONSULTANCY IDENTITY / CREDIBILITY AND WORK PRIORITISATION

Not just reducing uncertainty – also say ‘no’!

Assert identity as expert, independent & professional

Some ICUs also rejected implementation

Saying ‘no’ is high risk but…. Compromise (train/oversee; ‘rational’ work

prioritization)Longer term legitimacy?

‘Some people just want an extra pair of hands and I say never appear willing to be the minute taker, the admin. It

does our reputation no good’

‘I think that if you spoke to somebody outside of the (ICU) and said, “How do

you view this team as internal consultants?” However they say it, the

reality is [that] it’s a body shop.’

Organisational Uncertainty

Reduction Dilemma/risk

Who you know Relationship management

Raised client expectations

What you know Diversify(or specialize)

Core business & can’t compete

What you are willing to do

Work prioritization

Legitimation & extras roles

THE DYNAMICS OF UNCERTAINTY AND SUSTAINABILITY – SOME OUTCOMES

Increasing Credibility

Decreasing Credibility

Diversify EXPANDING SURVIVING

Specialize ENDURING DYING

COMMENTS AND QUESTIONS

Experiences of sustainability

Who you know? Relationship management?

What you know? Diversification?

What you are willing to do? Work prioritisation?

Increasing / decreasing credibility?

SUMMARY

Outsiders’ view on hidden sector – touch surface

Variety – Outcomes, forms and dynamics

Shared characteristics - Sponsorship, internal outsider/PM; work generation, (low implementation and knowledge transfer/KM)

Sustainability - A preoccupation, but dilemmas and dynamics too. No easy solutions!

AND FINALLY…

A future for IC – yes, but…?

What resonated, what didn’t …?

Future research needed?

Final report, book, feedback?

Please feel free to contact us….

andrew.sturdy@bristol.ac.uk

nwylie@brookes.ac.uk