A multi-stage model of governance in ... - Cass Knowledge
A multi-stage model of governance in ... - Cass Knowledge
A multi-stage model of governance in ... - Cass Knowledge
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<strong>Cass</strong> Centre for Pr<strong>of</strong>essional Service Firms – Work<strong>in</strong>g Paper 004 - 2010<br />
In the lead up to, and aftermath <strong>of</strong>, these mergers, MegaPartners’ Management<br />
Committee <strong>in</strong>troduced changes to the firm’s <strong>governance</strong> structure and management<br />
systems. These changes <strong>in</strong>cluded more formalized budget<strong>in</strong>g and report<strong>in</strong>g<br />
procedures and more globally standardized approaches to recruit<strong>in</strong>g and bus<strong>in</strong>ess<br />
development. Taken <strong>in</strong>dividually, none <strong>of</strong> these changes was substantive. Looked at<br />
collectively, they represented a consolidated attempt to <strong>in</strong>troduce centralized controls<br />
over a disparate global network <strong>of</strong> <strong>of</strong>fices. The partners grew <strong>in</strong>creas<strong>in</strong>gly concerned.<br />
There was a perception that we'd become an <strong>in</strong>credibly bureaucratic organization<br />
- that virtually anyth<strong>in</strong>g that we wanted to do had lots <strong>of</strong> pieces <strong>of</strong> paper attached<br />
to it - like if we wanted to develop our bus<strong>in</strong>ess plans there was a process <strong>of</strong><br />
do<strong>in</strong>g it with<strong>in</strong> the practice area, and someth<strong>in</strong>g had to be done with<strong>in</strong> the product<br />
group, and someth<strong>in</strong>g had to be done with<strong>in</strong> an <strong>of</strong>fice, so you would get some<br />
poor guy <strong>in</strong> Spa<strong>in</strong> who happened to be look<strong>in</strong>g after several different product<br />
groups and practice areas, who now had to write someth<strong>in</strong>g like fourteen<br />
bus<strong>in</strong>ess plans. (Global Head <strong>of</strong> Bus<strong>in</strong>ess Development)<br />
It was not just the partners <strong>in</strong> the <strong>in</strong>ternational network <strong>of</strong> <strong>of</strong>fices who resented the<br />
imposition <strong>of</strong> these controls. The partners <strong>in</strong> the orig<strong>in</strong>al firm also cherished their<br />
autonomy and were not ready to accept a more systematized approach to<br />
management. Although the ma<strong>in</strong> <strong>of</strong>fice was relatively large, with over 250 partners,<br />
with<strong>in</strong> this <strong>of</strong>fice the <strong>in</strong>dividual practices were still able to reta<strong>in</strong> elements <strong>of</strong> the<br />
Collegial structure. As much as possible, the partners preferred to rely upon<br />
traditional methods <strong>of</strong> mutual monitor<strong>in</strong>g and control, elect<strong>in</strong>g their own practice<br />
leaders, for example, as well as their Manag<strong>in</strong>g Partner and Senior Partner.<br />
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