This study is mainly based on semi-structured interviews, which has allowed for more detailed expla- nations, helping to gain high validity to this study. The authors’ previous knowledge, assumptions and prejudices may have colored the perceptions and interpretations of the interviewees’ answers and how the questions were asked. This might have had an effect on the reliability of this research. In research where the results are interpreted it is hard to gain high reliability (Eriksson and Wiedersheim-Paul, 2008). Collis and Hussey (2009) state that reliability is not as important in a qualitative and interpretive study as it is in a positivist study.
The primary sources of information were the interviewees (see appendix B) and the observation par- ticipants. The interviewees came from different companies and had different roles to provide multiple perspectives, and the observation was done at one IT consulting firm. Since all participants had different experiences the authors had to take this into consideration and evaluate the answers differently depend- ing on whom the participant was. Other things that might have affected the interviewees’ answers are; anonymity, the obligation to make the company look good, and the time and place of the interview. The anonymity can make the interviewee give more open answers, while the obligation to make the company look good can have the opposite effect. The time and place of the interviews affect how comfortable the authors as well as the interviewers feel.
The literature review was mainly based on books, peer-reviewed articles and web pages. In order to have relevant information the aim was to find newer publications, resulting in most of the literature not being older than ten years. Information on web-pages was more carefully considered than information in books and peer-reviewed articles.
CHAPTER 2. RESEARCH PROCESS
Part II
Chapter 3
Why Working with Time
Management in Consulting
In order to facilitate understanding of the environment in which this research has been performed, this chapter will start by providing a background covering the consultancy industry. The section about con- sulting will be followed by two sections covering the value of time and the value of information, which are two relevant aspects within the consultancy industry and two important subjects within the scope of the research. The two last sections will also provide information of why IT consultants work with time management.
3.1 Introduction to Consultancy
Many researchers have tried to define what consultants do. “Consulting is a service which helps organi-
zations in re-engineering and rethinking their business through technology, strategy, people, and business processes.” (Basil et al., 1997, p. 304) Consulting services are characterized as “intangible, time consum- ing, tailor-made and often provided on the location of the client.” (Plantenga and Remery, 2002, p. 472)
Consultants use their knowledge to deliver results and growth to their customers, something that can be done within a number of different areas and professions, e.g. construction, management, human re- sources, public relations, and IT. Freedman (2000) states that consultants sell billable hours, and for a consulting firm to be profitable it is sufficient to sell enough of them.
Consulting firms’ most valuable asset is the employees’ knowledge and time (Pellicer, 2005; Kreitl et al., 2002). A risk of having employees spending most of their time at the customer’s site, which is the case in most IT consulting projects, is that they might identify more with the customer’s culture and organization than their own employer’s (Plantenga and Remery, 2002). This could have a negative effect on the level of commitment towards the own company (Plantenga and Remery, 2002).
Consulting firms are characterized as being knowledge intensive, having close client interaction, and signing unique contracts (Kreitl et al., 2002; Pellicer, 2005; Vinnova, 2013). The uniqueness of each contract makes it difficult to plan in advance; the required number of hours in a project cannot be certain (Plantenga and Remery, 2002).
As previously mentioned, there are several different areas in which consultants operate, this study focuses on IT consultants. Most of the descriptions in this section are valid for all consultants, unless otherwise is stated. The two following sections will describe how consultants get paid, what business is the most profitable and how consultants need to adapt to customer needs in order to grow.
CHAPTER 3. WHY WORKING WITH TIME MANAGEMENT IN CONSULTING
3.1.1 The Consultancy Business Model
Consultants can be paid on an hourly basis (Vinnova, 2013), called billable hours. The customer hires the consultant for specific tasks and pays according to the rates stated in the contract. The advantage of hourly payments is that the price reflects the real cost of the service; it provides some flexibility in the number of hours, letting the customer add and subtract services at known prices (Harrington, 2004). The disadvantage is that the customer cannot predict the total cost in advance (Harrington, 2004). Consultants can also be paid a fixed price for an agreed service (Vinnova, 2013), the advantage with fixed price contracts is that it provides cost predictability for both customer and supplier (Harrington, 2004). The disadvantage is that the supplier takes on all risk in the project, but a good execution can be very profitable for the consultancy firm (Plantenga and Remery, 2002).
Since the technology continuously changes, IT consultants have to keep developing their skill sets. Because the customers get more and more sophisticated and pay high fees, they expect the consultant to always be one step ahead of them (Freedman, 2000). The consultants’ knowledge has to match the customers’ demand (Freedman, 2000; Plantenga and Remery, 2002).
3.1.2 ‘Customerizing’ in Order to Grow
It is desirable for consultancy firms to have repeat business because it requires less work and investment and is therefore more profitable (Kirkham, 2006). According to Kirkham (2006) over half of a consul- tancy’s business is repeat business. Basil et al. (1997) state that a consulting firm can only survive if it maintain its existing customers. One way to be successful in the consulting industry is to ‘customerize’ - meaning that the consulting firm should be more responsive to its customers and adapt to the customers’ business (Basil et al., 1997). Successful consulting is when the customer is satisfied and the consultant is trusted and hired again. Trust is also what enables the essential team-work between customer and supplier (Bloch, 1999). As (Grisham, 2010, p. 279) states; “Trust is a fragile commodity; it takes time to
build, but it can be lost in an instant.”
Repeat business might thereby lead to company growth. Company growth causes many challenges that need to be tackled, Penrose (1995) states that one of them is the administration (cited in Kreitl et al. 2002). When the organization’s structure become more complex, communication and reporting become more important to keep the organization under control (Kreitl et al., 2002). Growth can be measured in many ways, e.g. by company size, turnover or profit. But the most appropriate measure for consulting firms is the number of employees because, as stated earlier, that is the company’s most important asset (Kreitl et al., 2002).
These administrative tasks often include time management. The next section will talk about how con- sultants turn time into money, the value of time in the consultancy industry and how time can be rated differently.