This literature review investigates the role of in-house consultants as change agents and their challenges in the change process. From this, it derives implications for in-house consultants on how they can effectively manage change in organizations. More and more organizations are using in-house consultants to manage the growing number of internal change initiatives and their increasing complexity. In-house consulting provides several benefits for organizations including enhanced cost efficiency and the development of firm-specific expertise and organizational change capacity. However, due to their organizational membership, in-house consultants face challenges in managing change. They develop an ambiguous identity as both insiders and outsiders, creating organizational boundaries, conflicts, and confusion. Furthermore, their internally generated knowledge lacks experience and external validation. In addition, the client-consultant relationship poses challenges for in-house consultants in terms of objectivity, credibility, and independence.
To address these challenges, in-house consultants should engage in identity work, reinforcing either their insider or outsider identity by altering work structures or elements. Moreover, they need to strengthen their credibility and gain support from top management. To this end, in-house consultants can form a coalition that supports their change activities within the company and in front of top management. Another approach to obtain management support is to effectively engage in organizational politics. Leadership support helps in-house consultants to improve employee attitudes toward the change and obtain the resources needed to initiate and implement change. Finally, they need to demonstrate their independence from management or HR to reduce employee skepticism toward change. Consequently, they can convince employees to embrace change and adopt new behaviors and practices. By maintaining operational autonomy and working with external clients, in-house consultants can improve their perception as objective and independent advisors while building their experience and expertise. Overall, organizations should recognize the challenges and obstacles facing their in-house consultants. By supporting them in overcoming these challenges, they empower in-house consultants to successfully manage and implement change. Thus, they can achieve sustainable competitive advantage.
Table of Contents
1. Introduction
2. In-house Consulting
2.1 Definition
2.2 In-house Consultants as Change Agents
3. Benefits and Challenges of In-house Consultants
4. Implications for Managing Change
5. Conclusion
Objectives and Core Themes
This literature review explores the role of in-house consultants within organizational change processes, specifically focusing on the unique challenges they face due to their dual identity as internal members and external-facing agents. The primary goal is to investigate how these professionals can overcome structural and social barriers to effectively lead organizational transformations.
- The dual identity and inherent role ambiguity of in-house consultants.
- Benefits of internal consulting, including firm-specific knowledge and organizational network leverage.
- Challenges related to objectivity, credibility, and social identity within the company.
- Strategies for identity work and stakeholder management to improve change implementation.
- Comparison between internal consulting and external consulting frameworks.
Excerpt from the Book
2.1 Definition
In recent years, the concept of in-house consulting has gained popularity in organizations (Grima & Trépo, 2011). It can be defined based on multiple characteristics. Wright (2009) describes in-house consultants as specialized employees or managers that take on a consulting role. Similarly, Holmemo et al. (2018) note that in-house consulting units consist of internal experts from various fields, such as organizational development, marketing, or finance. They are usually in human resources or line management before assuming the consulting role (Barnes & Scott, 2012). Accordingly, in-house consultants are members of the organization (Grima & Trépo, 2011; Wright, 2009). Although they are permanently employed by the company, they operate outside the company’s hierarchical structures and traditional activities. Within these structures, they are organizationally independent (Holmemo et al., 2018). The purpose of internal consulting is to incorporate external managerial expertise into the organization. In doing so, in-house consultants take on a management support function and, to some extent, also temporary leadership responsibilities (Holmemo et al., 2018). The primary objective is to increase the productivity of the company’s business divisions (Ejeñas & Werr, 2011).
Summary of Chapters
1. Introduction: This chapter introduces the growing reliance on in-house consulting in dynamic business environments and outlines the research objective regarding their role as change agents.
2. In-house Consulting: This chapter defines the concept of in-house consulting, examines the professional background of these consultants, and classifies them as advisors or navigators who function as change agents.
3. Benefits and Challenges of In-house Consultants: This chapter evaluates the competitive advantages of internal expertise and informal networking against the significant hurdles of structural ambiguity and social identity conflicts.
4. Implications for Managing Change: This chapter offers practical insights into how consultants can resolve their dual identity through identity work, coalition building, and maintaining operational autonomy.
5. Conclusion: This chapter summarizes the necessity of supporting in-house consultants to build sustainable organizational change capacity and competitive advantage.
Keywords
In-house consulting, organizational change, change agents, dual identity, internal experts, management support, change capacity, social identity theory, organizational politics, operational autonomy, consultant-client relationship, corporate affiliation, firm-specific knowledge, strategic change, organizational development.
Frequently Asked Questions
What is the central focus of this literature review?
The work examines the professional landscape of in-house consultants, specifically analyzing the challenges they encounter during organizational change processes due to their dual status as company employees and consultants.
What are the primary themes discussed in the paper?
Key themes include the definition of in-house consulting, the dual identity of consultants, the trade-off between firm-specific knowledge and external experience, and strategies for maintaining professional credibility.
What is the research goal of this paper?
The aim is to identify the common challenges faced by internal consultants and to provide evidence-based implications for how they can effectively manage and lead organizational change.
What methodology is employed for this research?
The paper is a literature review that synthesizes existing academic research and scholarly findings regarding internal consulting, organizational change, and social identity theories.
What does the main body of the text cover?
The main body investigates the organizational roles of consultants, evaluates the benefits and drawbacks of their position within a company, and proposes practical management implications for overcoming resistance.
Which keywords best characterize this work?
The work is characterized by terms such as in-house consulting, change agents, dual identity, organizational change, and professional credibility.
How do in-house consultants differ from external counterparts?
In-house consultants are permanent employees with deep organizational knowledge, whereas external consultants bring outside expertise and are typically engaged for a limited time.
What is the "dual identity" challenge mentioned in the text?
It refers to the contradictory position of being both an insider (colleague/employee) and an outsider (consultant/change agent), which can lead to ambiguity and role conflict.
Why is "identity work" important for in-house consultants?
Identity work allows consultants to clarify their role, resolve conflicts arising from their ambivalent position, and ultimately gain the trust and legitimacy required to drive organizational change.
How can in-house consultants increase their credibility with top management?
By building supportive coalitions with influential organizational members, engaging in office politics, and demonstrating objective independence from their own department or HR.
- Quote paper
- Sabina Dörner (Author), 2021, Insider or Outsider? The Challenges of In-house Consultants in Organizational Change, Munich, GRIN Verlag, https://www.grin.com/document/1185076
