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To highlight some of the issues that small firms must address when deciding to avail themselves of the services of independent compliance consultants.

Explains why investment firms use independent compliance consultants, discusses practices the FSA has published to ensure a firm meets with its regulatory requirements when using an external consultant, reviews the risks a firm faces when delegating part of its compliance function to a consultant, and suggests factors a firm should consider when selecting and employing a consultant.

Among the risks a firm must manage when using an independent compliance consultant are that the consultant will turn a blind eye to improper practices, fail to raise issues with aspects of the firm's business the consultant does not understand, become lazy as a result of familiarity with the firm, or not be subject to the same regulatory regime as the firm is. A firm should analyze how proposed outsourced arrangements fit with its reporting structure, strategy, and overall risk profile. As part of a formal process of consideration, the firm should conduct due diligence on the outsourcing consultancy to ensure that appropriate expertise, financial stability, and adequate resources are available.

Provides an investment firm considering the use of an independent compliance consultant a useful list of considerations from an experienced compliance consulting firm.

Previous studies on non-standard employment relations have analyzed how firms’ use of non-standard work arrangements are explained by variables related to numerical flexibility. Here, the purpose of this paper is to explore how firms respond to changes in the external environment through reduction in staffing. Since the firms combine employees and external consultants, they are confronted with a dilemma between laying off employees or terminating consultant contracts.

The empirical context is the petroleum sector in Norway. The data consists of 11 interviews with managers at different levels in three firms.

The authors found that firms terminated over 80 percent of the consultant contracts, while around a forth of employees were downsized. A core-periphery strategy and union power are vital drivers of the prioritization of employees. However, some consultants were retained due to their knowledge of unique aspects of the firm and their role in development and innovation. The authors also found that the firms differed in their emphasis on seniority vs competencies criteria in deciding “survival” among employees.

A main contribution of the study is thus the identification of variables and mechanisms that influence the two interrelated choices of downsizing in such multi-employment contexts. The main limitation is the number of firms analyzed (three), which restricts statistical generalization.

Better understanding of circumstances and criteria of downsizing choices in employees/external consultants’ constellations.

This study is one of the first to analyze two interrelated issues of downsizing in such constellations lying off employees vs terminating consulting contracts, and whether seniority or competence criteria were prioritized when laying off employees. A main contribution of the study is the identification of variables and mechanisms that influence the two interrelated choices of downsizing in such multi-employment contexts.

This paper aims to analyze the adoption process of human resource information systems (HRIS) from a supply-side perspective emphasizing the practices of HRIS vendors and consultants. It aims to counterbalance the existing literature on HRIS, which has overwhelmingly studied HRIS adoption from the customer organization's viewpoint, hence systematically downplaying the active role of vendors and consultants in adoption processes.

The research has been conducted on the HRIS market of the Benelux (Belgium–The Netherlands–Luxemburg) from a constructionist and exploratory perspective. The structure and dynamics underlying the market are gradually unveiled through open interviews with HRIS vendors and consulting firms (n = 22).

The paper reveals how the social shaping of HR innovations takes place and identifies nine types of pressures exerted by HRIS vendors and consultants on customer organizations: assessing, advising, advertising, case-building, demonstrating, configuring, accompanying, sustaining and supporting. Taken together, these pressures demonstrate the systematic presence and active role of external actors throughout the adoption process of HRIS within firms.

It is suggested that further supply-side studies of innovation diffusion processes of HRIS should be conducted to complement the existing, demand-side literature. In this view, emphasis should be set on technology providers and their ongoing interactions with customer firms.

The analytical precedence given to supply-side actors allows to conceptualize HRIS adoption as the dynamic result of negotiations between three groups of actors (HRIS vendors, HRIS consultants and customer firms), hence resulting in a more comprehensive and holistic view of HRIS adoption processes.

The purpose of this paper is to examine the antecedents and performance outcomes when startup firms in the US banking industry hire industry consultants.

This study uses a sample of prospective startup banks that applied for a new bank charter application in Florida between 1996 and 2005. Logistic regression, ordinary least squares or ordered logistic regression models were used to test hypotheses.

Analysis suggests complexity and regulatory change are factors in a founder’s decision to hire a consultant. Consultants have a positive impact on firm financial performance but not on a composite multifactor measure of performance. Additional analyses suggest the effectiveness of consulting assistance hinges on specific attributes of the consulting firm, but cumulative consulting experience is not one of these attributes.

This study focuses on the impact of consultants on new venture performance in a single industry using archival data. Additional research is likely needed to test the generalizability of the findings in other research contexts and examine motives beyond the financial ones investigated in this study.

Results suggest that hiring a consultant at startup can satisfy financial stakeholders, but, in a regulated industry, hiring a consultant at startup does not improve a composite, multifactor measure of performance that is important to industry regulators. When deciding whether to commit scarce resources to hiring consultants, founding teams should be clear which external stakeholder and which measure of performance they are seeking to improve.

While the business advisory role of informal players such as family and friends and more formal players such as board members and federal, state or local governments have been well documented, little attention has been paid to the contributions of industry consultants in startup firms. These overlooked intermediaries play an important role in the successful launch of a new firm. This study examines when and why such advisors might create value for new firms.

Analyses the state of the management consultancy industry in Britain, from both a supply and a demand perspective. Aims to help potential clients evaluate and select consultants; to keep academics in business‐related subjects abreast of developments in the field; and to identify growth areas into which consultants might elect to move. Outlines available consulting specialisms, identifies key players in each, and profiles a typical management consultant.

Strategy consultants have much to offer a top executive in terms of improving the bottom line. Yet little is known about the strategy consulting industry, because the firms and their clients are often reluctant to disclose details of their activities. This article surveys the leading strategy consulting firms and explores trends affecting the future of the industry.

The paper deals with the importance of the work of external consultants in firms and of consulting as a function. The study deals with the analysis of external advice within small to medium‐sized enterprises. It tries to reflect the actual importance of external advice sought by firms in trying to reach the highest possible level of client satisfaction. The survey reported in this paper was carried out to evaluate the impact of consulting and to determine the degree of satisfaction of the clients that had used Spanish consulting services. To this end, firms that had used such services were interviewed on‐site. The purpose of the research was to analyse the effects on management processes within the firms where a plan was drawn up by an external consultant.

The aim of the article is to explore the dynamics of the management consulting process for small firms as an outcome of interactive processes.

The explorative study is based on a summary sketch of an interactive research project (LOS) in which small firms and their interactions with management consultants were studied in a three‐year perspective. The theoretical framework employed is based on the industrial network theory.

The study suggests that clients are co‐producers of the consulting process. Therefore, management consulting in a interactive perspective has important elements of trailing, i.e. changing the frames of reference of the consulting process and creating room for consulting in which the consultant, as well as the client, allow themselves to experiment with their professional foundations. However, it is also suggested that innovative learning processes are difficult to foster in management consulting processes.

The empirical foundation of this explorative study is limited and thus invites to further interactive studies along the paradigm of action research.

Based on the findings, it seems important that both clients and consultants accept the consulting process as a co‐productive process, and that they find a way to work out the expectation gap at the beginning of the process.

The study adopts an industrial network perspective on the consulting process. In this perspective social exchange and adaptation processes among actors, i.e. consultant and client are in focus.

Explores the extent to which academic offerings are serving the consulting industry and identifies ways that academia can help. The numbers of management consulting courses, field experiences in consulting and consulting concentrations by graduate business schools were tracked over a three‐year period to assess the current state of offerings. A survey of members of the Academy of Management's Management Consulting Division was conducted to gather perceived developmental needs for career stages and types of consulting. Proposes the potential future of courses in management consulting. Provides suggestions for course offerings to meet developmental needs by career stages of consultants that are currently being overlooked. Offers practical advice to academia to serve the consulting industry better and ideas for the consulting industry to consider in the ongoing development of consultants. Encourages managers who engage consultants to demand better educated consultants. Further research is needed to investigate the developmental needs of internal consultants and the apparent resistance of the consulting industry to turn to academia as a resource.

This paper draws attention to the potentially focal role that appropriate people management practices can and do play in facilitating knowledge management within the context of a specialist consulting firm that sustains its competitive advantage through processes of knowledge creation. The paper highlights the way in which traditional approaches to people management issues such as recruitment and selection, professional development etc. are not necessarily appropriate or relevant when managing an expert workforce that expects and demands considerable levels of autonomy. The findings highlight that perhaps too much reliance has been placed on technological solutions to KM to date. Hence the paper emphasises the highly situated and contextual nature of KM and the practices or systems in support of KM, which existing literature in this field has failed to adequately address.