A multi-stage model of governance in ... - Cass Knowledge

Cass Centre for Professional Service Firms – Working Paper 004 - 2010
relatively simple and informal organizational structures in comparison with a
conventional corporation of equivalent size. Thus the same term, ‘delegation’, applies
to two fundamentally different management issues in the two models because of the
fundamentally different nature of power dependencies in professional service firm
compared to the generic organization that Greiner describes.
In summary, therefore, the need for a PSF-specific multi-stage model of governance
relates to the distinctive characteristics of professional work and the professionals
who work within such firms. The individual professional (or rather the technical
expertise, client relationships, and professional reputation associated with that
individual) is essential to the delivery of a customized professional service. In order to
deliver a customized professional service and retain their professional independence,
professionals require, or at least expect, a degree of autonomy from managerial
control. It is these distinctive power dependencies which ensure that power remains
diffused throughout the organization and the central issues of power, benefit and
accountability remain contiguous within the governance structure until an advanced
stage in the professional service firm’s development.
References
Abernethy, M. A., & Stoelwinder, J. H. (1995). The role of professional control in the
management of complex organizations. Accounting, Organizations, and Society, 20
(7), 1–17.
Adler, P.S., Kwon, S. W., & Heckscher, C. (2008). Professional work: The
emergence of collaborative community. Organization Science, 19 (2), 359–376.
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