Governing public sector use of external management consultancy—beyond client procurement and consultant professionalization

Abstract

IMPACT Efforts to improve the governance of external management consulting have a mixed record. Attention has focused on either procurement (and insourcing) and/or raising standards through professionalization. The persistence of critiques and public scandals suggests that more is needed from the industry, policy-makers, clients/purchasers and other stakeholders. In this article, the authors highlight how systemic problems with consulting arise from the nature of its reward and value systems and the resulting lack of openness of consultants and their clients—none of which have been adequately addressed through traditional governance mechanisms. The authors explain why these neglected areas need attention. This can be done, in part, by drawing on new trends and classic dilemmas. Is the rise of purpose-led or alternative organizational forms, as well as moves to facilitate transparency and the speaking of ‘truth to power’, improving the governance and outcomes of external management consultancy?