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KNOWLEDGE-INTENSIVE FIRMS 49

project teams. This second interview is a panel interview involving a number of con-
sultants from several divisions, who ‘quiz’ the applicant in some depth on their knowl-
edge of their own and other science- or technology-based fields. Panel members are
randomly drawn from across the firm, based on availability at the time of the inter-
view. If the panel agrees on a candidate, then the candidate will be recommended for
appointment to the MD.
In 1996, typically, 16 candidates were interviewed for each post, and for each
of those interviewed, approximately ten CVs would have been received from the
recruitment agencies. The selection process is described as ‘rigorous’ by the HR
manager. He emphasized that the interviews focus primarily on the candidates’
ability to ‘fit in’ to the ScienceCo way of working. This involves willingness and
ability to collaboratively share knowledge across different science- and technolo-
gy-based fields, both within project teams and more generally. The HR manager
commented,

You get a CV, and the person has a PhD, and they’ve worked for a pretty high-
powered research agency, and that’s brilliant. You’ve got to see them, but you
know that there is a pretty strong chance that the moment you meet them you’re
going to know what they’re not – they’re not one of us.

>> PERFORMANCE MANAGEMENT
Only one formal system exists at ScienceCo, and this is the performance manage-
ment system that was introduced in 1990. This system was introduced at the same
time as consultants were allocated to divisions. Before this, individual consultants’
performance had not been managed. The system focuses on divisional revenue tar-
gets (DRTs) and personal revenue targets (PRTs). Management establishes these tar-
gets at the beginning of each financial year, and they are monitored monthly. The
same monthly PRT applies to all consultants, regardless of age, experience and so
on. Hence, DRTs are the accumulation of PRTs, premised on the number of consul-
tants within the divisions. By default, then, the larger divisions had to generate more
revenue.
Revenue is generated through project work that is generally priced at a flat rate
rather than a fee rate. A lead consultant emerges on client projects. Typically, this is
the consultant who has the most contact with a particular client. The ‘lead’ consul-
tant is responsible for negotiating the value of the project with the client, after careful
consideration of the resources that will be required in terms of breadth of expertise
and time. Lead consultants will use e-mail to inform consultants throughout the firm
about potential new projects and the skills and expertise that will be required. Once
the value of a project has been determined with the client, it is the responsibility of
individual consultants who want to work on the project to negotiate with the lead
consultant regarding the amount of project revenue they will be allocated. As there
are no formal systems to record these negotiations, e-mail messages serve as a record
of any negotiations that take place. The allocation of project revenue contributes to
the individual consultants’ PRT and the DRT to which they are assigned.

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