Control and Power in a Management Consultancy: Brownloaf Mactaggart Case Study
1. Introduction
Acquisition is a continual process, not an event (Carpenter & Sanders, 2007). It seemed to be a win-win situation when Watkins International acquired Brownloaf MacTaggart (BM), which until the acquisition in 1988 had been a prestigious small consultancy practice. However, a series of organizational problems arose after BM became one division of the international corporate empire. The shift means sudden changes in management styles and enterprise institution. As a consequence of inappropriate integration, the former BM staffs encountered a clash with Watkins ' culture and values. Furthermore, the firm seems to lack in sophisticated goal setting and reward policies under the undetermined leadership. This essay will attempt to analyse several crucial organizational issues in this case and identify conceivable influence if the problems are not addressed appropriately.
2. Organizational Issues in the Case
2.1 Integration and Organizational Culture
Despite optimistic expectations, mergers and acquisitions occasionally fail, in part because managers neglect cultural issues, which are rarely considered until serious problems arise. Schein (1985) defined organizational culture as: “A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration which has worked well enough to be consider valid.” According to Schein’s Three Levels of Culture model, implicit assumptions and underlying values manifest staff’s behaviour on the surface level. The typical management consultant in Watkins is ambitious, experienced and academically excellent (from a reputable British business school), while the typical BM consultant has a lower level of education, usually majored in engineering. The different personal experiences and characters shape different social behaviours and then generate the culture in an organization. On the aspect of individuals, employees in BM division are less well qualified
Acquisition is a continual process, not an event (Carpenter & Sanders, 2007). It seemed to be a win-win situation when Watkins International acquired Brownloaf MacTaggart (BM), which until the acquisition in 1988 had been a prestigious small consultancy practice. However, a series of organizational problems arose after BM became one division of the international corporate empire. The shift means sudden changes in management styles and enterprise institution. As a consequence of inappropriate integration, the former BM staffs encountered a clash with Watkins ' culture and values. Furthermore, the firm seems to lack in sophisticated goal setting and reward policies under the undetermined leadership. This essay will attempt to analyse several crucial organizational issues in this case and identify conceivable influence if the problems are not addressed appropriately.
2. Organizational Issues in the Case
2.1 Integration and Organizational Culture
Despite optimistic expectations, mergers and acquisitions occasionally fail, in part because managers neglect cultural issues, which are rarely considered until serious problems arise. Schein (1985) defined organizational culture as: “A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration which has worked well enough to be consider valid.” According to Schein’s Three Levels of Culture model, implicit assumptions and underlying values manifest staff’s behaviour on the surface level. The typical management consultant in Watkins is ambitious, experienced and academically excellent (from a reputable British business school), while the typical BM consultant has a lower level of education, usually majored in engineering. The different personal experiences and characters shape different social behaviours and then generate the culture in an organization. On the aspect of individuals, employees in BM division are less well qualified