Extra organisational actors (professional services firms, consultants, contractors, and temporary staff) implementing strategy: A case study

Abstract

Organisations spend significant money, time and effort on extra organisational actors (EOAs) such as professional services firms (PSF), consultants, contractors, temporary staff and other nonstandard workers (NSW) to implement strategy. Use of EOAs is controversial due to concerns over cost and effectiveness, and is not well understood. This research critically assesses EOAs implementing strategy. It identifies who they are and what they do, and explores the views of permanent staff working with them. A framework for using EOAs to implement strategy is proposed.

A qualitative and quantitative, mixed methods, single case study is framed from a Strategy as Practice (SaP) perspective by an internal practitioner-researcher working in a multinational, financial services organisation using EOAs to support major strategy implementation. Forty-five semi-structured interviews were conducted, along with data analysis of c.3,500 staff and EOAs.

The research finds five types of EOA being used to implement strategy at the subject organisation, with four distinct rationales for using them. The extent of EOA use is considerable. It varies between departments. In some cases, EOAs have been continuously engaged for substantial periods. A range of benefits and problems of using EOAs were reported, as were suggestions for improving EOA engagements. The use and management of EOAs within the subject organisation was inconsistent, with examples of both good and poor practice.

The research contributes to SaP literature by empirically exploring the under-researched, complex and contradictory practice of EOA practitioners implementing strategy. Literature on PSF, consultants and NSWs are in isolation from one another. However, this research finds multiple EOA practitioners of the same and different types implementing the same strategy, at the same time, on the same projects, in a single organisation.

The research offers specific guidance to practice by highlighting the types, extent and uses of EOAs, along with the benefits and problems of using EOAs to implement strategy. Two areas for improvement are proposed. The first is a detailed methodology to specify how EOAs can support strategy implementation, in terms of the competences, capabilities and capacity required to deliver transformational change to implement and sustain strategy. The second gives suggestions for how to manage the three stages of an EOA engagement. The recommendations cover inbound activities such as procurement and onboarding, ongoing management and monitoring of the engagement, and outbound close down activities including knowledge sharing and feedback.

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Identifiers

ORCID for David James O'Connor: orcid.org/0000-0003-4434-8677

ORCID for David Baxter: orcid.org/0000-0003-1983-7786

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