The consulting firm’s strategy

●Structured networks. Some networks have become more regular and structured. For example, members may be listed in an information brochure and there is a moral commitment (not a binding agreement) to treat members as preferred partners in selecting collaborators for an assignment.

●Direct interfirm agreements. Such arrangements can concern various service lines, geographical areas or forms of cooperation. For example, a general management consultancy can have a long-standing arrangement with several partner firms (or subcontractors) for work in specialized areas such as market research, organization development, valuation or information technology. Such interfirm agreements can be more or less binding and exclusive.

●Ad hoc project consortia. A consortium involving two or more professional firms is established for a particular project that exceeds the possibilities of a single firm, or where the involvement of several firms is required for another reason. Technical assistance agencies often require consultants to bid for projects in partnership with one or more consulting firms from the aid-receiving country.

Cross-border alliances are particularly important for the advancement of consulting in countries where the profession is inexperienced and not well established. Many young firms in the transforming economies have drawn considerable benefits from various cooperation arrangements with Western consulting firms.

If alliances fail, this is usually due to poor selection of partners, lack of respect and trust, incompatible cultures and consulting styles, major discrepancies in competence, unrealistic expectations, poorly defined commitments or the pursuit of conflicting business objectives.

28.5 Going international

Going international is a fundamental strategic choice, with many implications for the structure, competence and operation of the firm. If the firm wants to grow, and the local market is saturated, going international may be a necessity.

By and large, consulting firms internationalize operations for the following main reasons:

–to find new markets for services;

–to respond to demands received from foreign clients;

–to satisfy multinational clients, who expect their professional advisers (consultants, lawyers, auditors and others) to provide an international service, matching the client’s multinational profile;

–to tap the resources for funding of technical cooperation, provided by a wide range of national and international agencies;

–to satisfy the consultants’ intellectual curiosity and quest for challenging new work opportunities.

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