The Sequence Effect in Panel Decisions: Evidence from the Evaluation of Research and Development Projects

We examine how groups fall prey to the sequence effect when they make choices based on informed assessments of complex situations, for example, when evaluating research and development (R&D) projects. The core argument is that the temporal sequence of selection matters because projects that appear in a sequence following a funded project are themselves less likely to receive funding. Building on the idea that selecting R&D projects is a demanding process that drains participants’ mental and emotional resources, we further theorize the moderating effect of the influence of the timing of the panel meeting on the sequence effect. We test these conjectures using a randomization in sequence order from several rounds of R&D project selection at a leading professional service firm. We find robust support for the existence of a sequence effect in R&D as well as for the moderating effect. We further explore different explanations for the sequence effect and how it passes from the individual to the panel. These findings have broader implications for the literature on innovation and search in general and on group decision making for R&D, specifically, as they suggest that a previously overlooked dimension affects selection outcomes.

How Small Consultancies Grow: Challenging Problem-Based Theorising

This paper explores the adequacy of problem- based theorising in explaining the growth of small management consultancies. Literature on professional service firm growth tends to skip over the entrepreneurial stage, assuming ‘crises’ of governance during growth periods. Using interviews with 42 founders who grew their firms, the paper identifies challenges and potential solutions that impacted success. The paper argues that challenges were generally pre-empted by founders through the deployment of expertise that was acquired during experience, education or the use of software. The paper finds no evidence for the assumptions of ‘problem based’ theories of growth, and argues that changes in technology, experience and education may have rendered the theory useless – at least for understanding the growth of small consulting firms.

How Calibration Committees Can Mitigate Performance Evaluation Bias: An Analysis of Implicit Incentives

ABSTRACT While prior research on performance evaluation bias has mainly focused on the determinants and consequences of rating errors, we investigate how a firm can provide implicit incentives to supervisors to mitigate these errors via its calibration committee. We empirically examine the extent to which a calibration committee incorporates supervisors' evaluation behavior with respect to their subordinates in the performance evaluation outcomes, i.e., performance ratings and promotion decisions, for these supervisors. In our study, we distinguish between lack of skills and opportunism as two important facets of evaluation behavior, which we expect the calibration committee to address differently. Using panel data of a professional service firm, we show that supervisors' opportunistic behavior to strategically inflate subordinates' performance ratings is disciplined through a decrease in the supervisors' own performance rating, while the supervisors' skills to provide less compressed and, thus, more informative performance ratings is rewarded through a higher likelihood of promotion.

Ambiguous authority and hidden hierarchy: Collective leadership in an elite professional service firm

This study represents a detailed analysis of collective leadership in an elite professional service firm, examining the distinctive power dynamics revealed among professional peers as they attempt to act decisively in response to an acute organizational crisis. It identifies how professional peers deliberately construct and amplify ambiguity in both the composition and authority of their collective leadership group, and examines how that ambiguity can serve a functional purpose for group members. Intuitive mutual adjustment is the prevailing pattern of interaction, but this changes to a more managed form of mutual adjustment as a hidden hierarchy is revealed in response to the crisis. The study identifies the micro interactions which constitute both intuitive and managed mutual adjustment, and shows how members of a collective leadership group can maintain cohesion and act decisively, in spite of lacking the formal authority to do so. The findings challenge some foundational assumptions of collective leadership theory and extend our understanding of leadership power dynamics more generally by demonstrating how leaders can exercise considerable informal power under the cloak of ambiguity, highlighting the hidden hierarchy that can exist within a collective, and emphasizing the significance of individual ‘heroic’ leader within collective leadership.

Fragmented fields: Professionalisms and work settings in Italian management consultancy

Management consultancy has long been a contested terrain in the sociology of the professions. Although the professionalism of management consultants has always been emphasized by practitioners themselves, the lack of a strong community of peers has been an impediment to their professionalization. In this article, I argue that professionalism is not the outcome of a process of regulation and institutionalization but that it has to be conceived a discourse comprising norms, worldviews, and values that define what is appropriate for an individual to be considered a competent and recognized member of this community. Given the diversity characterizing the field, there are multiple discourses surrounding professionalism of management consultants, and these discourses are shaped by work settings. Work settings are a combination of the type of organization professional partnership or professional service firm and the employment status (employee or self-employed). Drawing on the empirical evidence from various work settings (professional service firms, professional partnership, and self-employment), I investigate four clusters of practitioners identified in 55 biographical and semi-structured interviews conducted with management consultants in Italy. Four types of professionalism emerge from the clusters. Organizing professionalism is the sole professionalism that appears in all work settings. Other discourses (corporate, commercialized, and hybrid professionalism) are context-dependent and more likely to be found in specific work settings.