THE VIRTUAL PARTNERSHIP
Although the Network is 10 years old, the members have worked together in various combinations over a 25 year period on major projects, so clients can be assured of proven team capability. Recent Network projects involving several members working together have included strategic economic planning for a southern Ontario community, feasibility analysis for a high tech firm, and organizational development for a US Hydro-Electric Company. These joint successes have led members toward marketing the unique synergistic capacity in terms of both scope and depth represented by the overall Network, made possible through integrating appropriate skills for major projects.
David Maister has developed a "success formula"3 for professional firms. The New Management Network, although not a firm in the ordinary sense of the word because it does not have an "accountability hierarchy" (Elliott Jaques, Requisite Organization), displays characteristics that are relevant to a "virtual partnership" (for projects involving two or more members, a contractual arrangement is formed for the duration of the project, with one of the members taking the lead).
Specifically, these characteristics are:
• stringent entrance standards: most members have two or more university degrees, plus senior level executive and consulting experience; highly selective recruitment: only senior consultants with proven results are chosen by the founders
• selective pursuit of clients: projects the Network pursues as a group are ones where there is a professional challenge sufficient to arouse the creative curiosities of the members, and a social purpose to be accomplished by a job well done. The New Management Network is particularly interested in large organizations undergoing change due to deregulation, market shifts, globalization and new product design. We also work with major engineering companies on organizational components requiring specialized management skills.
• investment in research and development: members individually and collectively have developed effective approaches to evolving issues, and maintain current knowledge on new and developing theories. Experience has shown that treating each project as a unique case results in solutions that are most appropriate for the situation (forcing specific techniques on any situation is never accepted procedure)
• open communication: the Network members are in regular and open contact with each other by e-mail, fax and telephone, and attend regular bi-annual retreats where all matters of interest and concern are addressed openly and honestly.
• consensus-building style of governance: the Network operates on the basis of a set of proven "traditions", rather than rules or procedures. For strategic alliances on specific projects involving more than one of the independent firms, there is always a lead who is strongly and loyally supported by the other participants.
Maister's formula includes six other factors, but these are relevant only for firms with an accountability hierarchy.
They include:
• intensive job training for new personnel: the individual consultants manage their own training, and they remain small by choice, with no junior staff to continually keep busy
• ongoing training for professional development: also an individual responsibility, but the Network does include training in new subjects in the agenda of its regular meetings, and members regularly identify items of interest to the rest of the Network
• promotions within the firm are not relevant to the Network
• enduring employment relations and outplacement assistance are not relevant to the Network
• compensation tied to collective performance: generally not relevant, but clearly the case where several members are working on a project partnership arrangement
• avoidance of mergers and focused on controlled growth: generally not relevant, members enjoy their independence and flexibility to work together or individually.
