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 />
pr<strong>of</strong>essional management group. At this po<strong>in</strong>t management and ownership become<br />
separated with<strong>in</strong> the firm and more comprehensive management systems and<br />
structures are <strong>in</strong>troduced. Power and accountability, therefore, shift from the owners<br />
to the pr<strong>of</strong>essional managers, though benefit cont<strong>in</strong>ues to reside with the owners.<br />
The reality <strong>in</strong> pr<strong>of</strong>essional service firms is more complex. In the move from the<br />
Founder-focussed to the Collegial phase (follow<strong>in</strong>g the crisis <strong>of</strong> Exclusion) power,<br />
benefit, and accountability rema<strong>in</strong> densely <strong>in</strong>terconnected and the preserve <strong>of</strong> feeearn<strong>in</strong>g<br />
senior pr<strong>of</strong>essionals active <strong>in</strong> the bus<strong>in</strong>ess. Before the pr<strong>of</strong>essional service<br />
firm can start to experience the concentration <strong>of</strong> power that Gre<strong>in</strong>er highlights, a<br />
pr<strong>of</strong>essional service firm will pass through an additional <strong>stage</strong>, the Committee<br />
phase. Dur<strong>in</strong>g this phase management responsibilities, systems and structures<br />
become more explicit. However, power, benefit, and accountability rema<strong>in</strong><br />
contiguous and widely diffused among the fee-earners/owners/senior pr<strong>of</strong>essionals.<br />
The pr<strong>of</strong>essional service firm develops a cadre <strong>of</strong> pr<strong>of</strong>essional managers at a<br />
relatively advanced <strong>stage</strong> <strong>in</strong> its development (compared to Gre<strong>in</strong>er’s generic <strong>model</strong>).<br />
In a pr<strong>of</strong>essional service firm a crisis <strong>of</strong> Frustration leads to the formal ‘Delegation’<br />
<strong>of</strong> authority by the partners/directors to a small group <strong>of</strong> peers. When Gre<strong>in</strong>er speaks<br />
<strong>of</strong> the Delegation phase, however, he is referr<strong>in</strong>g to someth<strong>in</strong>g quite different – the<br />
<strong>stage</strong> at which management f<strong>in</strong>d that they are overloaded and must delegate<br />
responsibilities to middle management.<br />
The term ‘middle management’ is not widely used with<strong>in</strong> pr<strong>of</strong>essional service firms, <strong>in</strong><br />
part because the focus on flat hierarchies and project-based work<strong>in</strong>g gives rise to<br />
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