Strategic options for professional firms

Abstract

The purpose of this thesis were to investigate the effective strategic options aVailable to professional service orgtanizations in the face of the challenging and changing south African environment. Since these organizations are viewed as integrated archetypes of organizational form, strategy and the personal Characteristics, perceptions and values of their top management, they were researched from this perspective. The professions are also viewed as progressing along a continuum of industrialzation, as theoretically defined, and the progress of the organizations along this route was examined to establish their position as a predictor of possible future trends.A model of the effectiveness of professtional service organizations in the face of the environmental challenges is also tested. The research was conducted with the assistance of the partners and clients of 56 prominent organizations from six professions in south Africa, covering three different industrial sectors, the commercial sector, the building and construction sector and the health care sector. Theory indicated certaint possible adaptive options aVailable to organizations in general, but due to the lack of speCific theoretically researched models for professional organizations, an inductive approach was taken to the research problem. In this way, the research findings would dictate the eventual correspondence to the theory. Multiple operationalism was used as a

research approach in different stages of the research process, as was triangulation of research methods to arrive at the research results. The findings indicate that there are five groups of professional organizations representing different configurations of adaptation to the South African environmental circumstances. Using the model developed in the research to measure organizational effectiveness, it was found that three of these groups appear to be effective, while the other two are less effective. Some of the attributes of these five groups were contingent on the type of industry and the type of profession. The profiles of the partners provided a particularly fertile area of theory development and a number of propositions were generated which can be tested in future research. It was concluded that an integrated typology Of five groups of strategy, organization and the profile of the top management team did exist and that three of the options proved to be more effective that the other two. Further guidelines for the management of professional organizations, included the examination of the consequences of co-operative strategies, particularly in the light of a possible increase in consolidation within the industries, are given.