Professional Documents
Culture Documents
THE HANDBOOK
MATTHIAS KIPPING
TIMOTHY CLARK
1
In a relatively short period of time management consultants and management
major decisions in a wide range of organizations and sectors are made with the
Indeed, whether we are aware of it or not, many of us will have experienced the
later, it is this sense of influence and power, combined with concerns in relation to their
consulting. The Handbook is therefore designed to present the full range of research
disciplines and conceptual approaches. Each chapter reviews and critically reflects
upon the existing research on a specific topic or theme before identifying potentially
productive avenues for future research. Individually they demonstrate the diversity of
conceptual and empirical approaches and relate these to one another so that overlaps,
parallel concerns and areas of synergy are identified. Collectively the range of topics
covered demonstrates that although there is a fast expanding and rich body of research
such provides a route into a number of critical issues that have occupied social science
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over the last fifty years or so. These issues include the shifting nature of organizations,
the rise of management, the nature of knowledge, professions, fashion and the post-
industrial economy. These chapters not only provide an unrivaled insight into
management consulting as an activity but also enable readers to build to develop their
broader knowledge and become better informed and more rounded social scientists.
consultancy are problematic because the permeable boundaries of the industry have
resulted in significant shifts over time in the composition of the industry as well as what
comprises consulting work. This means that what comprises consulting work is dynamic,
every-shifting and contested as new firms enter the industry and those techniques
bodies that have an interest in presenting the activity in a very positive light. For
and experienced persons in helping managers identify and solve managerial and
operating problems of the various institutions of our society ...The professional service
3
In this respect consultants are frequently portrayed, and indeed like to be
problems of various kinds. They are often ‘seen as synonymous with the role of
professional helpers remedying illness in client organizations (Fincham and Clark 2002:
7). As a number of the chapters in this handbook demonstrate the nature of consulting
knowledge and the degree to which it has been able to professionalize are vigorously
debated issues in the literature (Kipping and Wright; Kirkpatrick et al.; Nikolova and
Devinney, Werr, Morris et al; Jung and Kieser). In a later section this Introduction will
discuss the rise of consulting, but it is important to note here that it is perhaps this
chimeral ability to avoid precise definition and to be able to constantly reinvent its core
In terms of structure, the first section of this introductory chapter details the merits
attracted the attention of researchers: (i) While not necessarily big in overall revenue
terms, it grew quickly, faster than the economy as a whole in many Western nations,
especially since the 1980s; (ii) it employed many smart, or at least well educated
people, becoming an example of the kind of knowledge work many saw as the future of
economic and business activity; and (iii), probably most importantly, its activities
impacted an ever wider number of organizations and even society as a whole. The
4
subsequent section will provide a chronological overview of the evolution of research on
management consulting. It will show that interest in the industry was originally limited,
mainly confined to the business and even general press as well as a few investigative
journalists, but accelerated in the 1950s and reached a first high point in the late 1960s
with the publication of a small number of influential books. From the mid-1970s attention
particular, but also more popular accounts of management consulting, have exploded
since the 1990s following from with the unprecedented growth and visibility of the
industry. The final section of this Introduction will briefly explain how this Handbook has
Today, consultants are ubiquitous in the business world even beyond their advisory role.
They frequently pop-up when one leafs through business magazines, attends business
gurus. According to some accounts (e.g. Faust 2002), consultants have actually
replaced academics, and even managers as the leading ‘experts’ on business matters
5
and as such are influential in determining our understandings of contemporary
organizational issues. They have not only become a pre-eminent ‘reference source’ but
also (co-)author articles in popular academic journals, have written many bestselling
management books and some even publish their own periodicals (Clark et al.; Engwall
in this volume). Consequently, there seems little doubt that consultants are highly
visible. However, what are the reasons for their importance and do they merit being the
There is little doubt that management consulting is a business, even if most consultants
Management consulting has indeed become an important economic activity. Since its
boundaries are not well delineated and shift over time, it is notoriously difficult to obtain
any accurate statistics on the size of the management consulting market, globally or for
industry experts, such as Kennedy Consulting Research. Kubr (2002), who has written a
widely used ‘Guide to the Profession’, estimated the global market to be worth US$102
billion in 1999, with Europe accounting for $33 billion, as compared to a total of $28.3
billion in 1992 (with these totals equivalent to respectively $133.5 and $44 billion in
2010). According to FEACO, in 2010, the European consulting market had an estimated
6
value of €85 billion, with ‘business consulting’ (rather than IT consulting, outsourcing
and a few other activities) accounting for 43 per cent of this total. Taking business
consulting only, and applying the same proportion as ten years earlier, suggests that the
global market in 2010 had a value of around $150 billion. If one takes all consulting
One should take all of these data as at best providing an order of magnitude, which
will vary widely depending on what is included, given the vague boundaries between
business and IT consulting (and even outsourcing) and with much of the market
dominated by individual practitioners and small firms (see Falconbridge and Jones in
this volume; Keeble and Schwalbach 1995). Nor do these estimates take into account
the size of internal consultancy activities, which have attracted attention only very
recently (see, e.g. Wright 2009; Sturdy and Wright 2011). Given the above, plus the
growth of markets other than North America and Europe, the above estimate of $150
billion is probably on the low side. The largest consulting firm is (by most measures) IBM
Global Business Services, which alone had revenues of $18.2 billion in 2010, which
would translate into a 12 per cent market share – highly unlikely in what continues to be
a very fragmented market. Nevertheless, not all of its activities can probably be counted
more realistic estimate of market size, since this would give IBM an approximate share
of 5 per cent.
Whatever their reliability in detail, these figures do show that the market has grown
significantly relative to the early 1990s (despite some setbacks following the bursting of
the internet bubble in the early 2000s, lack of confidence after the Enron collapse in
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2001 and the 2008 economic / financial crisis). This growth has at least partially
contributed to a surge in academic interest from the 1990s onwards (see below). The
pronounced, when comparing the current industry size to the late 1950s, when the first
more comprehensive market and firm data are available (Higdon 1969: 21). At the time,
the US was by far the largest market with estimated revenues for close to 2,000
consulting firms reaching $426 million (equivalent to $3.45 billion in 2010) in 1954 and
$850 million with 2,700 consultancies in 1968 (a 2010 equivalent of $5.33 billion). These
numbers once again do not include the tens of thousands of individual consultants
(corresponding to just under £80 million or $123 million in 2010), with the big four firms
accounting for about three-quarters of this amount (Tisdall 1982: 9). In 2010 it had
grown 100 fold, generating fee income of just under £8 billion or $23.5 billion The UK
market seems to have remained fairly concentrated with the MCA’s now 55 member
early 1990s also saw a significant growth of individual and small- and medium- sized
Throughout most of this period therefore consulting has grown faster than the
The leading firms in terms of revenue also grew much bigger. In 1968, the largest firm in
the US was the Stanford Research Institute with $60 million in revenues ($376 million in
2010 dollars), which corresponded to a market share of about 7 per cent. Among those
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firms that are still significant today, the biggest were Booz with $50 million ($313 million
in 2010) and McKinsey estimated between $22-25 million (with $24 million equivalent to
$150 million in 2010), corresponding to market shares of 5.9 and 2.8 per cent
respectively. Today’s firms are significantly bigger in absolute terms but do not seem to
have increased their market share. Some of the market leaders in the 1960s actually
have a lower share today. For example, with respective revenues of $5 and $6.6 billion
in 2009 Booz and McKinsey only accounted for approximately 1.4 and 1.9 per cent of a
market estimated at $350 billion (see respectively, Booz Allen Hamilton 2009 and
Forbes 2009). This suggests that the market might have undergone some structural
change since the 1950s (for more details see Kipping 2002; Galal et al.; McDougald and
However, while the overall size in terms of markets and firm revenues is important,
it still small when compared to many other industries. This might explain why little of the
extant research examines the industry structure or competition among the incumbent
firms or changes among those firms (e.g. through exit and entry). Thus, there are few if
any studies using approaches from economics including ‘old’ or ‘new’ industrial
organization or population ecology (see for details Saam in this volume; Clark 1995).
Neither have there been traditional strategy studies, based, for example, on Porter’s
(1980) Five Forces framework. Much of this has to do with the lack of statistical data on
the industry and its reliability arising from the already mentioned blurred and fluid
boundaries. The industry is very fragmented nature with highly visible and increasingly
large professional service providers operating alongside a myriad of smaller niche firms
of European GDP in 2010 (up from 0.24 per cent in 1998 and 0.53 per cent in 2000).
Other reasons therefore seem to better account for the broad interest it has received
One of the reasons for the attention paid to management consulting can be found in the
McKinsey notes, somewhat casually, “[t]he firm is among the largest hirers of newly
minted MBAs in the United States”. Ruef (2002) has traced the rise of management
consulting as an employer for a large business school in the Western US between 1933
and 1997, showing that their share increased from a meagre two per cent in the mid
1940s to just under one-quarter of all graduates by the 1990s. In general, management
relationship with business schools (for details see David; Engwall in this volume).
Consulting firms have actually become so important for business school graduates that
there are specialized websites tracking their reputation among the potential hires and /
or offering resources to help them land a job with a consultancy (e.g. vault.com;
wetfeet.com).
the major source of new talent in the largest consulting firms consists of recruits fresh
out of undergraduate programs. For example, in the late 1990s, according to the
Managing Director of Andersen Consulting, now Accenture, the company received three
10
million applications per year worldwide (Films of Record 1999). While an astonishing
number at first sight, it is less surprising when considering both the attraction of
(under)graduates to the industry and the size of Andersen Consulting, which had grown
In addition, the significant turnover among consulting staff due, on the one hand, to the
consultancy’s up-or-out policies and, on the other, the possible recognition among
employees that the job is not so glamorous after all given, among others, the long hours,
extensive travel and, for junior consultants, limited client exposure (Alvesson in this
Yet, it is not the sheer numbers of consultants that have attracted most of the
attention (after all, employment in the sector in absolute terms is not that high), but their
“quality”. Consultants have become for many synonymous with a new type of employee,
the “knowledge worker”, which has attracted significant attention in the popular and in
the more academic management literature. The term was apparently first coined by
Peter Drucker in his 1959 book Landmarks of Tomorrow. A number of futurologists such
as Alvin Toffler (1971) and Daniel Bell (1973) noted the macroeconomic shift from
manufacturing to services in many advanced Western economics from the 1960s (Stehr,
1994). Critical to these economic and social changes was the emerging prominence of a
agencies and management consulting. Their rise has been seen as synonymous of a
new economy where people and their knowledge rather than physical assets have
become the key competitive advantage for companies (e.g. Eisenhardt and Santos
2001; Newell et al. 2002; Lloyd and Sveiby 1987). At the same time, because their key
11
assets are in their heads, knowledge workers are seen as highly mobile, which creates
numerous problems in terms of hiring and retaining talent (e.g. Drucker 2002).
exacerbating this issue, by encouraging their client firms to be very active in ‘the war for
talent’ – the title of a book by three McKinsey consultants (Michaels et al. 2001).
While there has been some research about what it actually means for consultants
studies looking at how consulting firms manage their knowledge have been more
numerous (Werr; Heusinkveld and Benders in this volume) – part of a much larger
seen as providing an example for other companies, given the (supposed) knowledge-
intensive nature of their business (e.g. Hansen et al. 1999; Alvesson 2004). But
knowledge was not the only area where consultants were considered as exemplary,
even trendsetting. There was another area related to the idea that consultants are
‘professionals’ – a term they or the firms they work for often use to describe themselves.
Consultants were not included in the original academic research and debates on
professionalism and professional occupations (e.g. Larson 1977, Abbott 1988) in part
because of the lack of awareness of their activities but also because they had not
reached formal professional status (McKenna 2006). However, they became more
accounting and law, which were shown to gradually loosen the previous professional
obligations and drift towards a new type of organization, the professional service firm
(PSF). PSFs became a focus of attention in Organization and Management Theory and
12
were used as examples for a process, which saw traditional professional partnerships
adopt more features of ‘normal’ organizations evolving towards what have been widely
2010). Much of this research ultimately focused on the traditional professions, namely
accounting and law, some began to see consulting as a case, where more loose
associations with professionalism (often in purely discursive forms) had existed for a
long time and where PSFs had predated external professions, and therefore never let
the latter develop fully (Gross and Kieser 2006; Leicht and Lyman 2006; Kipping 2011;
Muzio et al. 2011). Nevertheless, for consulting, much of the discussion centred around
the reasons why consultants failed to develop a professional status in the first place
(Kirkpatrick et al. in this volume). This leaves another issue in which consultants were
A third reason for the attention paid to management consultants does not concern the
liveliness of their own business or the human resources behind it, but rather the
considerable impact it is believed they have on other organizations. Indeed, they are
considerable influence. This has clearly been the most important reason for the interest
both in the business press and academic research, since their influence by far exceeds
their importance both in terms of size of economic activity and employment. As research
has shown their influence has been widespread. They have not only influenced
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and a variety of other organizations, including non-governmental organizations, trade
unions and the church (Macdonald 2006; also Capron 2000). And neither has their
impact been exerted only through the advice they have sold, but also, if not more
regulation or healthcare (Kipping and Wright in this volume), even the future of
capitalism (Barton 2011) and, last but not least, through former consultants occupying
Their influence is not only recent. Some, like Marsh (2008: 35-40) go back as far
as antiquity, highlighting how Plato and others as outsiders shaped Greek society and
polity. Possibly even more famous is Machiavelli and his advice given to The Prince
(2003) in the book with the same name (ibid.: 43-46). However, most would argue that
management consulting only emerged with the ‘visible hand’ (Chandler 1977) of
management since the second industrial revolution in the second half of the 19 th century
(Wright and Kipping in this volume; for a divergent opinion McKenna 2006). Some of the
earliest and most detailed studies of how consultants tried to change organizations – and
the book by Aitken (1960) examining the failed introduction of scientific management
even led to a congressional investigation (providing in turn much of the material for the
study). At that time, the US Congress also invited well-known consultants to give their
opinion on important economic issues, e.g. the regulation of rates for railway companies
(Quigel 1992). Some of them, most prominently Frederick Taylor, also gave occasional
lectures at the newly founded business schools, in his case Harvard (Engwall in this
volume).
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In terms of the actual impact of consultants, the literature is – probably not
surprisingly – divided. The extent and effect of this impact has been one of the major
issues debated vigorously in both the popular and academic literature. Many of the
studies mentioned above have highlighted the resistance of those concerned, in these
cases the workers, against the organizational changes introduced, mostly concerning
the introduction of scientific management methods (e.g. Littler 1982; Downs 1990; for
Cailluet 2000; Kipping 2000; Kipping and Armbrüster 2002). There are very few studies
that actually claim, based on empirical evidence, that consultants have done harm to the
organizations they advise. There are a number of cases discussed by two journalists
based on court documents, where clients have alleged that the consultants did not
deliver the results they promised and, in one case, were even accused of having caused
the company’s bankruptcy (O’Shea and Madigan 1997). It should be noted that all of
these cases were eventually settled out of court and that the same book also discusses
cases where the consultants, supposedly, had a positive influence. On the other hand,
there are a number of authors, many of them action researchers, who highlight the
positive effect of their own work and the work of other organizational development
consultants (see below; also Trahair and Bruce in this volume). Indeed, as Fincham and
Clark (2002) point out, many of the key authors in Organizational Development were
reflecting on and describing their own practice. It is unsurprising that they present such
a positive picture of the consulting process and its potential benefits to clients.
The majority of the literature, however, remains rather neutral or uncertain when it
comes to the evaluation of the effect that consultants have. A sizeable number of
those who believe that consultants disseminate very similar organizational templates to
or to display “isomorphism” (e.g. Hagedorn 1955; Chandler 1962; DiMaggio and Powell
1983). Others argue that most organizations will not blindly copy these templates, but
adapt, hybridize or, more generally, “translate” them (see also Nikolova and Devinney in
this volume). Another view, and currently possibly the dominant one among
researchers, sees the changes, if they take place at all, as mainly superficial. Following
in the footsteps of Abrahamson (1991; 1996), they argue that consultants – and other
actors in what they term the management fashion arena – induce managers to adopt
new ideas, but, just like fashionable clothes, shed them as quickly and replace them
with new fashions launched by those same actors (see below; also Clark et al.; Jung
and Kieser in this volume). This, some suggest, might not necessarily cause immediate
Whatever the differences in opinion, and there continue to be many, it is clear that
the main reason that management consulting has attracted such a broad interest, can
be found in the (at least supposed) impact they have had on a broad range of
organizations and even society at large. This interest seems to have been particularly
strong after the industry “exploded” in the 1990s and early 21 st century – making
consultants a much more visible actor in the economy. But, as the following section will
show, there has been earlier research covering a number of different issues (some of
them already addressed above). This section will provide both an overview of the
reflecting practitioners. As has been widely noted elsewhere, and as this section will
confirm, more narrowly defined academic research on management consulting took off
primarily in the 1990s. Nevertheless, there were studies examining the industry and its
rather than design, consultants also appeared on the radar of scholars working on a
management consultancy, even today the research output has remained on the margins
much of it being published in the form of monographs, edited volumes and articles in
publishing during the recent research boom from the 19990s have taken a broadly
critical stance towards the industry and its activities, whereas most of the earlier
different sources: the (business) press, which has probably showed both the earliest
and most consistent interest almost since the inception of management consulting; the
consultancies themselves as well as their associations; and scholars, with most of them
‘stumbling across’ the industry, while researching other issues (e.g., Jackall, 1988).
founders go back to the beginning of the 20 th century (if not further). Thus, the already
Watertown arsenal, prompted not only the intervention of the US Congress, but also a
reaction in the press, with an editorial in the New York Evening Post in 1914, for
example, supporting Frederick W. Taylor and his system (Aitken 1960: 231). In addition
to Taylor, who is widely seen as the ‘father’ of scientific management and the
volume), other leading industrial engineers (and by extension the consulting firms they
However, at least in the first half of the 20 th century, much of the public interest was
not due to their consulting, but their social activities. For example, Charles Bedaux,
whose firm was the most important consultancy during the first half of the 20 th century,
attracted most of the attention for the adventurous expeditions he organized though the
Rocky Mountains and the Sahara. And, he received even more publicity by hosting the
wedding between Wallis Simpson and the Duke of Windsor, the former King Edward
VIII, at his Chateau in the Loire Valley as well as organizing the Duke’s subsequent trips
to Nazi Germany and to the United States – the latter was eventually abandoned in the
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face of significant opposition from organized labour (for details on all of these see in
particular Christy 1984; for his consulting activities Wright and Kipping in this volume).
Thus, of the 20 articles published about Bedaux in the New York Times between 1930
and 1944 (when he committed suicide), only two dealt specifically with his consulting
activities – one of them, incidentally, with his mission “to Reorganize Economy of
Greece” (published on the first page of the newspaper on 2 August 1938). Since the
1950s, press articles dealt more frequently with a new breed of consultancies and in
particular their more prominent representatives, including Booz Allen & Hamilton and
McKinsey (McKenna 2006; Kipping 2012; about their rise see also David in this volume).
Journalists and free-lance authors are also behind some of the first broad
overviews of the industry. An exemplar is Higdon’s (1969) book entitled The Business
Consulting Engineers (ACME), earlier press articles, interviews with consultants and
their clients, as well as personal observations. Like many of his later emulators Higdon
provides an overview of the industry and its activities, but focuses on the most visible
firms at the time, dedicating entire chapters to Booz, Allen & Hamilton, “[t]he mammoth
among management consulting firms” (p. 112); McKinsey, the firm with the “self
admitted reputation for working with the uppermost of those on Fortune’s 500 list” (p.
148); and George S. May, “The Most Brazenly Resourceful Self-Publicist of Our Time”
and, in the eyes of most industry insiders “the black sheep of management consulting”
published in the French original Le Défi Américain in 1967 should also be mentioned.
passing highlighted the role of Booz, Allen & Hamilton, Arthur D. Little and McKinsey in
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disseminating an “American-style management that is, in its own special way, unifying
Europe” (pp. 38-39) – an observation much quoted and investigated in the later literature
The consultants themselves wrote books long before the publication of In Search
of Excellence (Peters and Waterman 1982), which is often regarded as the starting point
for management bestsellers authored by celebrity consultants (Clark et al.; Jung and
Kieser in this volume). To mention but a few, in addition to Taylor’s works there are, for
Wages (1909) and The Twelve Principles of Efficiency ; the Bedaux Efficiency Course
1922 (Wolf 1978); and Maynard et al. (1948) on Methods Time Measurement. However,
like today, these books usually tried to summarize and publicize the consultants’ ideas
rather than reflecting about their own and the industry’s activities.
There are exceptions, like C. B. Thompson’s (1917) book on The Theory and
‘consulting engineers’ for part of his information (p. 36) and also includes some
reflections upon the role of consultants in this process. However, it was not until the
1970s or even the 1980s, that consultants themselves showed more interest in their
own activities and in particular the evolution of their own firms and the industry as a
whole. There are surprisingly few memoirs of consultants, probably due to the secrecy
with which the industry has surrounded itself in order to protect client confidentiality. And
the few that exist were usually limited to internal use (e.g. Neukom 1975 for McKinsey).
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This has changed only recently, when a series of former consultants wrote
sensationalist and – usually – damning accounts based on their own experiences (e.g.
consultants or a few larger consulting firms (for an overview see Wright and Kipping in
this volume), but they paid little attention to these consulting activities per se. The same
is true for the books written about the inventors and early proponents of these different
systems, and in particular Taylor. Thus, in their overview of the 13 ‘pioneers’ of scientific
management, Urwick and Brech (1945) did not include either Harrington Emerson or
Charles Bedaux, who through their commercial consulting activities had made a major
contribution to disseminating these ideas (Wright and Kipping in this volume). But for
that same reason, they were looked down upon, even ostracized by the ‘purists’ within
the movement. This lack of recognition within the academic literature lasted until the
1980s (e.g. Nelson 1980; Merkle 1980). It was only then that another school of thought,
i.e. labour process theory, recognized the roles consultants had in imposing scientific
management onto workers (see below for some more details). This ‘discovery’ seems to
have prompted other researchers to pay closer attention to consulting in their own work
Another stream of academic research concerned with consulting comes from the
‘action research’, when academics were deeply involved with the subjects they were
researching and, as a result, often also gave advice (for two early examples see Trahair
21
and Bruce in this volume). Much of this literature was written by individuals actively
engaged in consulting and focused on using behavioural science methods to build and
French and Bell 1995). Perhaps Schein (1969) provided the definitive statement on this
process consultant, which he defined as ‘a set of activities on the part of the consultant
which helps the client to perceive, understand, and act upon process events which
occur in the client’s environment’ (p. 9). From this perspective consulting is a joint
endeavour in which the consultant uses their expertise in ‘processes at the individual,
interpersonal, and intergroup levels’ (ibid.) to build capacity in the client to diagnose and
Finally, there was a concluding remark in Chandler’s (1962) book Strategy and
Structure on the spread of the multidivisional form of organization, where he noted ‘the
very significant role that management consultants […] have had in bringing about the
innovations and practices (p. 381-382) – though without providing any additional details.
While made somewhat in passing at the time, it would eventually lead to his own quip
that “a manager once advised a colleague that he could save the $100,000 fee that
reading a copy of Chandler's Strategy and Structure, which could be purchased for
$2.95” (John 1997: 152, footnote 2, who refers to a 1984 chapter by Chandler). The
original observation would also be echoed more than 20 years later by DiMaggio and
Powell (1983) in an article, which established the foundation for research on the role of
limited to a few articles in the business and general press and many of these dealt with
the more ‘newsworthy’ private lives and adventures of the most visible consultants. In
this respect they were celebrities of their time who happened to be consultants. Interest
grew from the 1950s and increasingly involved, in addition to journalists, the consultants
themselves and academics who, in the case of OD, were often personally involved in
consulting activities. A first high point was reached in 1969 with the publication of the
books by Higdon and Schein. What unites all of these authors is their generally positive
attitude towards management consultancy and their belief that it could make a positive
difference if correctly applied and used. This was to change from the mid-1970s
onwards, which also saw a broadening of the approaches towards the industry.
While the research activity occurred from the 1990s onwards, slightly lagging with the
growth of the industry itself, there were a number of significant publications during the
mid-1970s, which in many ways shaped the directions of the studies to come. Much of
the new dynamic no longer came from the business press and journalists, but from the
divided between those seeing management consulting as positive (and even providing
normative advice on how to become a good consultant) and others who started to
examine the impact that consultants had on client organizations, but diverged in terms
23
The business press continued to write about the industry at an accelerating pace
(see Kipping [2012] for an overview of articles in Business Week). But there was some
change in tone with not all reporting being positive. For instance, two lawyers wrote a
popular book that was highly critical of the US government’s use of outside advisors
(Guttmann and Willner 1976; see also Saint-Martin in this volume). The press in general
seemed to pay more attention to the growing influence of consultants and became more
alert towards possible downsides. Thus, it appears that the sales methods used by
George S. May, which had already been criticized by Higdon (see above), also
prompted some negative reaction in the European press, not only for his firm, but for
the emerging ‘management fashion arena’ (Faust 2002; Jung and Kieser in this
volume), consultancies began to become more active in publishing. This not only
concerned books intended for managers, like the already mentioned bestseller In
Search of Excellence by McKinsey consultants Peters and Waterman (1982), but others
that examined their own industry or firm. Thus, Tisdall (1982) wrote a book about
Association (MCA). It also seems to have been motivated by the growing success of US
consultancies in the UK (see Ferguson 2001; McKenna 2006), since it focuses mainly
on the home grown firms and their associations, the MCA and the Institute of
Management Consultants (IMC). The accounting firms, which had also started to
develop consulting activities after WWII (see McDougald and Greenwood in this
volume) were among the most active in publishing their histories, probably because
many of them originated in the 19 th century and at the time reached milestones in their
24
development (e.g. for Coopers & Lybrand 1984; Spacek’s 1989 oral history of Arthur
Andersen). Among the consulting firms, Arthur D. Little had its centenary history written
by a journalist from the New Yorker (Kahn 1986). This also aimed at claiming its position
among the leading management consultancies, which it only entered after WWII through
operations research, having previously provided contract research for the chemical and
ones, followed with similar commissioned histories in the subsequent decade (e.g.
Most importantly, the 1980s also saw an increase in academic attention towards
management consultancy. Thus, the work on OD consulting continued with some of the
most influential publications being published as updated editions (e.g., French and Bell,
1995). This work also branched out into a much more normative literature, which tried to
provide guidelines and advice for those wanting to offer consultancy services – with their
numbers swelling as the industry overall grew and as many of the middle managers who
had been made redundant as a result of delayering joined their ranks. Similarly, a
growing series of publications sought to make the insights from the work of the
Biech 1999; Rasiel 2001). Others, recognizing the rise of knowledge intensive business,
developed titles specifically focusing on how to manage these firms (e.g. Maister 1993).
Since the 1990s, dedicated textbooks have been published for the growing number of
Taken together, all of these books might subsequently have become the most
successful parts of consulting related publications in terms of sales. But with very few
25
exceptions – namely O’Mahoney’s (2010) recent textbook - they contain little if any
research – and will therefore not be discussed further. Another important exception was
first published by the International Labour Office in 1976 under the title Management
industry and its various facets. This is probably still the single most comprehensive
contribution to the literature from a practice perspective and is currently in its fourth
At the same time, other academics became interested in consulting, albeit usually
during the 1990s, when scholarly interest in the industry accelerated, as some might
say, “exploded” (Ernst and Kieser 2002). First of all, there were some studies that
looked at consulting from a labour perspective. These studies examined cases, where
consultants had contributed to the degradation of work and the de-skilling of workers
posited by Braverman (1974). The most comprehensive work of this kind was conducted
Subsequently, there were a growing number of studies examining the reaction and
resistance of workers to this process, also by labour historians (e.g. Downs 1990).
Bedaux, in particular, received increasing attention in terms of his personal life (Christy
1984) and his consulting activities (Kreis 1990). Consulting received even greater
academic attention as labour process theory morphed into critical management studies,
where the focus extended beyond the politics of work organization and capitalism into a
more general critique of managerialism, hegemony and power (see below; also
DiMaggio and Powell (1983: 152) highlighted that ‘[l]arge organizations choose from a
relatively small set of major consulting firms, which, like Johnny Appleseeds, spread a
few organizational models throughout the land”. Their widely cited article became a kind
of manifesto for what has since been called “neo-institutionalism” in management and
transmitters of organizational templates (even if that idea was first voiced by Hagedorn
1955), leading to many studies of diffusion. Unlike Labour Process Theory, this was a
more neutral view, which is, why it eventually was questioned by more critical scholars
and those seeing a translation rather than transmission process at work (for details
1.2.3 Current state of the art: Some light, many dark spots
The past two decades saw a general increase in publications on consulting from all the
whom wrote some very harsh criticisms of the industry based on their own experiences
(see above). Journalists also showed an increased interest in the industry, both using
them as “experts” on management matters and examining the consulting firms and their
role in more depth. While some of their accounts were almost “hagiographic”, such as
Edersheim (2004) on McKinsey’s Marvin Bower, many others took a more critical
stance, for example O’Shea and Madigan (1997), who used court filings to identify some
27
of their (alleged) failures, or Byrne (2002), who, following the Enron collapse, highlighted
More important, from the point of view of this Handbook, is the fact that this period
also saw academic research on management consulting come into its own, i.e. treated
the industry and its rapid growth as a phenomenon worthy of examination per se. Many
researchers adopted a ‘critical approach’ (Clark and Fincham 2002). Much of this work
is summarized in the chapters of this Handbook. This section, therefore, only provides
some more general remarks about the features of this research, as it has evolved over
the last two decades and presents itself at the time of writing (in mid-2011).
(esp. 1991; 1996; 2011), who has drawn the attention of researchers towards the notion
usually based on a bibliometric approach which, although criticized for their somewhat
More importantly, this research also drew attention to the different actors within the
fashion-setting communities, not least the management consultants (e.g. David and
Strang 2006), which had so far remained fairly marginal, or rather, tangential in the
interests of scholars. However, much of the research and the subsequent publications
on the topic emanated from Europe and were published in European-based journals or,
28
This is all the more surprising as the industry itself originated in the United States, where
it continues to have its largest market today (Wright and Kipping; David in this volume;
The explanation for this can be found in the fact, and this is the second important
consultants has found it difficult to meet the two most important conditions for
data as the basis for statistical analysis and hypothesis testing. Consulting has yet to
find its ‘grand’ theory (see Salaman 2002) and, from what has already been noted
above, is an industry difficult to put into databases – partially due its unclear and fluid
boundaries and, partially due to the reluctance of the main actors to share information
for fear of breaching client confidentiality. Sturdy et al. (2009) note the lack of research
situ. Much of the empirical research on consulting has therefore been conducted in the
form of semi-structured interviews or observational studies - which only rarely find their
way into these top-rated journals; or by historians, who are more used to incomplete
data and more amenable to either filling gaps through triangulation or living with the idea
that certain facts are ‘possible’ or ‘likely’ (rather than certain within a particular
confidence interval).
Some consulting research has been able to attach itself to bigger questions and
therefore find its way into those journals - but this has been and continues to be an
exception. This concerns research that has dealt with the issue of knowledge
29
management, which was quite fashionable in the 1990s, and where some empirical
and Haas 2001). But even with respect to the knowledge management strategies being
pursued in consultancies, the vast majority of the research was published either in
have tended to value the interest in the phenomenon per se – something now also
addressed the widely debated issues around professionals service firms (PSFs) and
their evolution (see above; also Morris et al.; Kirkpatrick et al. in this volume), but even
here most of the cases came from the more central, ‘traditional’ professions such as
accounting and law, since they offered, by definition, more comprehensive and complete
What should also be noted here is that the lack of publications in top-rated US
journals is by no means a reflection of the ‘quality’ of the extant literature. Rather it has
attracted few scholars from the United States (apparent from the contributors to this
Handbook) and is more varied in its underlying theoretical frameworks and, possibly,
somewhat more critical than it might have been otherwise – and this is, we believe,
and economics present the opposite ends of the spectrum (see, respectively, Faust;
30
Saam in this volume; also Armbrüster 2006). While research based on the former
abounds, at least in relative terms, economists have produced little to elucidate the
management consulting industry, with almost all studies coming from heterodox, in
surprising given the lack of data for econometric analysis and the complexity of the
modelling, close to impossible. A similar dichotomy can be found between history and
geography. The former has produced a large body of – usually a-theoretical – research,
not only in English but also in many other languages, tracing the industry’s development
or scientific management (see Part I in this volume; for the latter also above). A
despite a significant potential, which could have linked the consulting phenomenon to
important issues such as globalization (and spatial dislocation) or the rise and role of
The chapters in this volume attempt to reflect the diverse, albeit skewed nature of
the extant academic literature. They also attempt to highlight possible avenues for future
research within existing approaches. Thus, the final chapters in the Handbook point to
important issues, where management consulting has yet to become the object of
serious study, including, and in no particular order, ethics, post-colonialism and gender.
The next sub-section gives an overview of the Handbook structure and briefly
31
1.3 STRUCTURE AND CONTRIBUTION OF THE HANDBOOK
This book is not the first attempt at summarizing the extant academic literature and
offering a kind of stepping stone for future research. While geared more towards
practitioners, Kubr (2002/1976) also provides an overview of some of that literature. Two
edited volumes were published in 2002 with more of an academic focus. Clark and
management consultancy. Although not intended to imply that these commentators and
researchers shared identical views about consulting as an activity, the label ‘critical’ was
used to highlight that client demand for consulting cannot be assumed. Building on
nature of its knowledge (i.e., its constant churn), its perceived value (i.e., is it superior to
(i.e., did consultants make the difference?), it is argued that consultants have to actively
convince clients of their value and worth. The critical approach therefore emphasizes
the inherent vulnerability of consulting to shifting perceptions of its legitimacy and value
and the need to constantly establish its credibility via a range of strategies. By contrast,
the contributions in Kipping and Engwall (2002) took a more comparative and historical
focusing in particular on how consultants gained legitimacy, how they managed their
knowledge and how they interacted with their clients. Finally, concurrently with this
Handbook, Avakian and Clark (2012) are publishing a double volume collection of many
32
of the key publications on management consulting. These two volumes compliment this
Handbook in that they provide ready access to many of the works that have most
influenced thinking about management consulting and are frequently referenced in the
subsequent chapters.
In terms of its structure, this Handbook is organized around some of the dominant
themes in the literature. Thus, the first part focuses on the history of the industry, which
not only reflects the fact that management consultants have influenced organizations for
over a century, but also the strength of historical research on the industry. The chapters
are organized chronologically, with Wright and Kipping examining the important origins
of consulting in engineering and scientific management (see also above). Breaking with
some perceived wisdom they show how consultants contributed significantly to the
spread of these approaches, some of which continue to be applied today. The next
chapter by Trahair and Bruce traces the trajectories of two of the pioneers of the human
relations school, Elton Mayo and Eric Trist, whose ideas influenced many HR
consultancies and whose action research also pre-figured some of the later OD
consulting. David, in the following chapter, focuses on the institutional context, in which
strategy consulting emerged and expanded in the United States, suggesting that
well known consultancies. The next two chapters (by respectively McDougald and
Greenwood, and Galal, Richter and Wendlandt) focus on firms that entered
information technology. In both cases, they not only show how these firms eventually
came to dominate the industry (or became pre-eminent players in the industry), but also
33
explain the consequences of this evolution for the organization management and
The second part of the Handbook provides extensive overviews of the various
chapter by Faust, have so far dominated much of the extant research. He subdivides the
rich literature into two major perspectives, institutional and cognitive-cultural on the one
hand, relational and structural on the other and argues for an increased dialogue, if not
integration between the two. In another broad-based overview, Kipping and Wright
examine management consulting from one of the key debates in the social sciences –
the extent to which national business systems are converging. While the relevant
literature seems to point towards convergence, there are also counter indications
discussed above, one of the major sociological questions concerns the nature and role
extensive extant research is examined in-depth by Kirkpatrick, Muzio and Ackroyd, who
focus on the reasons why professionalism has remained rather weak and what
consequences this has had for the industry. The final two chapters in this part of the
Handbook discuss two academic disciplines, which so far have contributed relatively
cases, management consulting has only received marginal attention. This is little
surprising for economics, where mainstream approaches either lack the data or the tools
to deal with its complexity. It is more surprising for geography, where issues of proximity
34
and distance play an important role for consulting success with clients and where
consultants have played an important part in the decisions about the (re)location of
economic activities.
The next three parts develop in greater depth three of the issues that have found
knowledge management address the notion that at their core management consultants
are creators and disseminators of management knowledge and have therefore been
overview examining the nature of consulting knowledge, how it is shared within the firm,
whether these processes impact on performance and how consultancies create new
knowledge. Heusinkveld and Benders pick-up on the last theme and explore both how
consultancies engage in ‘new concept development’ and then apply this knowledge in
different client contexts. Morris, Gardner and Anand draw on the literature on
arrangements adopted by consulting forms and how these have changed over time.
Following this they discuss the micro-structural arrangements which underpin how work
is organized in these firms. Alvesson’s chapter completes this part by identifying the
special features of knowledge work and what these imply for the management of
knowledge workers, their retention and identities. This chapter stresses the importance
The chapters in the fourth part of the Handbook focus on the relationship between
management consulting and fashion. Jung and Kieser examine the nature of
35
management fashions, their importance in generating client demand and the role that
They stress how their celebrity status is founded on their ability to create and
and lectures. Engwall’s chapter turns to examining the relationship between business
schools and strategy consulting in terms of the latter’s supply of graduates, their role in
fostering ‘celebrity consultants’ and the way in which these consultancies have
The fifth part of the Handbook focuses on a core and much researched aspect
overview of the literature on this relationship by identifying three broad and contrasting
models: the expert/functionalist, the social learning perspective, and the critical
approach. The features of each model are explored in relation to a common set of
Fincham seeks to rebalance the current focus on the consultant side of the relationship
by stressing the role of clients. His chapter demonstrates how such an approach can
dependency in the client-consultant relationship and the notion of the client itself.
Czarniawska and Mazza adopt a social constructivist perspective to examine the client-
Saint-Martin looks at the role of consultants in central government, why their use has
36
expanded and the possible consequences of the growing influence of consultants for the
to develop existing areas of focus in terms of potential gaps but also identifying new
approaches that are currently absent from the literature but have strong potential to
draws together a number of the themes of earlier chapters and introduces others to
identify productive areas for future research in terms of empirical, theoretical and
employees, unions and citizens. Freeman and Krehmeyer discuss how different
approaches from the literature on ethics could expand our understanding of consulting
work, help focus on the codes of ethics that operate within the consulting industry, as
well as assist in addressing debates around the ethics of consulting (i.e., confidentiality,
consulting to illustrate that many of the broader endemic organizational gender issues
are present within consulting. This chapter emphasizes that future work would benefit
from examining the gendered nature of the career model, consulting skills and the
notion of the ideal consultant. The final chapter of the Handbook by Frankel and
Shenhav considers the implications of a postcolonial perspective for future thinking and
research on consulting work. Their main point is that studies examining consulting work
at a global level, and in emerging markets in particular, need to move away from such
historical power relations and a ‘sense of supremacy’ with the former shaping the latter
in their own image. To overcome this imbalance and to ensure appropriate prominence
37
for and sensitivity to non-Western interests they propose a ‘hybrid space’ which actively
Individually the chapters offer authoritative overviews of the key themes in the
opportunities to extend these and the degree to which work in this area is highly
consulting is a vibrant area of study which generates important insights that contribute to
broader debates in business and management and the social sciences. We very much
hope that the contributions in this Handbook will galvanize readers to conduct research
38
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i
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