Strategic Management of Professional Service Firms

This revised second edition contains a new chapter on internationalization of services and its implications for firms and governments. While most management books focus on industrial companies, this book deals with firms selling professional services to other firms or institutions. Examples are law and accounting firms, engineering and marketing consultants, architechts, insurance brokers and investment bankers. Professional service firms play an increasingly important role in the value creation of today's business as well as public sector organizations. The number of firms is increasing rapidly, and their growth in terms of number of professionals employed is amazing. Strategic management is crucial for the successful development of such firms, but requires a different frame of mind from that of the industrial corporation. This book describes in detail the driving forces behind the challenges involved in management of a professional service firm. Based on in-depth studies of firms in multiple industries, the book presents a number of examples as well as a framework for the development of firm strategies. The book is written with two audiences in mind: the practicing manager of a professional service firm, and the student of strategy and knowledge based services. With its strong empirical research foundation, the book should also be of interest to researchers focussing on managerial issues related to service sector organizations.