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50 MANAGING KNOWLEDGE WORK AND INNOVATION

Management described PRTs as a scheme for making people sell their skills to
other people in an effective manner:

It is a micro economy. It is a free market for expertise. Over the years it has been
the subject of much controversy as it puts a lot of pressure on people, and it is
in this way that we try to maintain a competitive (some would say combative)
environment. It does create tension, but at the same time, it enhances innovation
given by the rate at which new ideas come out of the organization.
In order to achieve PRTs, consultants generally work on a small number of projects
at any one time, commanding a percentage of the overall revenue from each one.
Achievement of PRTs consistently over time is expected of everyone, other than the
most inexperienced consultants and recent recruits. The majority of consultants usu-
ally achieve their PRT. However, consistency across whole divisions is problematic and
occasionally divisional managers find it difficult to achieve their DRT. At the end of
each financial year, divisional managers performance-rank those within their division,
based on achievement of PRTs and contribution to overall sales. This is a transparent
process and individual consultants are free to discuss, and in some instances dis-
pute, their overall ranking position. When divisional managers have agreed on their
rankings within their division, they meet with the management team to agree on
overall ranking across the firm. Individual consultants are then awarded percentage
increments according to their ranking. Underperformers are tolerated in the medium
term. Consultants who do not achieve PRTs over time will not receive a salary incre-
ment, but they are actively encouraged and helped by management to improve per-
formance the following year. Management has never introduced salary scales within
the firm, and no formal career structure exists because there is a no formal hierarchy.
Individual consultants are therefore awarded a percentage increase based on the sal-
ary they have personally negotiated with the MD on their appointment to the firm.
It is also important to recognize that consultants manage their own time both
within and outside of project working. Consultants are free to choose their hours
of work and length of vacations. This means that some consultants work continu-
ously, occasionally for months at a time and then take extended vacations, up
to 2–3 months at any one time. Other consultants choose to work regular hours
and take shorter breaks. Divisional managers only expect to be made aware of
vacations (time and length) and consultants are trusted to manage their time
effectively.

>> TRAINING AND DEVELOPMENT
Professional development is particularly important to all consultants at ScienceCo. In
order to stay at the top of their professional fields, consultants must be aware of any
developments in their field, and they need to participate in activities that offer the
opportunity for further professional development. Again, consultants are responsible
for identifying their own requirements in terms of courses, conferences and work-
shops. Management simply provides the necessary financial resources, which in some
cases are considerable. It is assumed that consultants will organize their workloads

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