Corporate Creep: An Institutional View Of Consultancies in a Non-Profit Organisation

Abstract

Professional consultants play a role in mobilising the "creep" of corporate practices from the for-profit sector, through the public sector and into the nonprofit sector. As well as legitimising these practices, consultancies illustrate the power of professional groups to institute change across sectors. In spite of this, the proliferation of consultancies is under-researched, particularly in the increasingly sophisticated nonprofit sector. In one year, one religious/charitable organisation (RCO) commissioned no fewer than five consultancies. This study provides insights about the process by which the consultancies were commissioned, conducted and adopted as RCO grappled with the applicability of corporate practices and its ability to implement them. Professional consultants play a role in mobilising the "creep" of corporate practices from the for-profit sector, through the public sector and into the nonprofit sector. As well as legitimising these practices, consultancies illustrate the power of professional groups to institute change across sectors. In spite of this, the proliferation of consultancies is under-researched, particularly in the increasingly sophisticated nonprofit sector. In one year, one religious/charitable organisation (RCO) commissioned no fewer than five consultancies. This study provides insights about the process by which the consultancies were commissioned, conducted and adopted as RCO grappled with the applicability of corporate practices and its capability of implementing them. It also highlights issues of interest to other nonprofits as they assess their need to employ consultants and the potential impact of adopting recommended practices.Address:

Consultancy outputs and the purification of accounting technologies

“…Sympathetic to this, in an extensive study of Australian public sector use of consultants, Martin (1998) concludes that they bring gravitas to reviews of public policy and that this has been a prime explanatory factor behind a greater use of consultants by government. In another study drawn from Australia Irvine (2007) concludes that use of consultants in the not-for-profit sector has a powerful effect. Similarly, Prasser's (2003) study of public Enquiries by the Australian Federal Government notes that many Enquiries use consultantsoften in a quantum that exceeds staff of the Enquiries -and that there is an interconnection between the public profile and prestige of both the Enquiries and the consultants that they use (Prasser, 2003, p. 285).…”

Context and change in management accounting and control systems: a case study of Telecom Fiji Limited

“…Granlund and Lukka (1998) note that consultants mediate the pressure of global change into their client companies by promoting the same idea as a response to global pressures. Irvine (2007) notes that consultants" services can be considered as normative institutional pressure. Consultants are change agents and valued not only for the knowledge and technical advice they provide, but also for the legitimacy they bestow (Irvine, 2007).…”

“…The consultants endorsed similar practices to those that the overseas-based Telecommunication Company adapted after becoming privatised, exhibiting mimetic isomorphism. Irvine (2007) notes that consultants" services can also be considered as normative institutional pressure. The FPTL actors relied on consultants for their professional services.…”

“…Irvine (2007) notes that consultant services can be considered as normative institutional pressure. Consultants are change agents and valued not only for the knowledge and technical advice they provide, but for the legitimacy they bestow (Irvine, 2007).…”

Continuities in the use of the intellectual capital statement approach: Elements of an institutional theory analysis

“…Sharma et al (2010) explicitly mention the role of consultants' services in relation to normative pressures, defining them as change agents. Their services are not only evaluated in relation to technical consultancy, but also for the legitimacy that they provide to companies (Irvine, 2007). DiMaggio and Powell note an increased probability that professionals are likely to "have internalized [the] reigning norms and dominant organizational models" associated with specific professions and their traditional practices (DiMaggio and Powell, 1983: 155), in turn increasing the similarity of practices across organisations as managers enact such practices in accordance with expectations of their own professional associations.…”