Maister, 1982 - Balancing the consulting firm - Target Growth Rate
3 important questions on Maister, 1982 - Balancing the consulting firm - Target Growth Rate
When performing a balance analysis, the firm must distinguish between the levers and the rocks. What is the difference between the two?
Levers: variables that it controls
Rocks: variables substantially constrained by the market
Rocks: variables substantially constrained by the market
What are examples of rocks?
Billing rates and compensation rates, and career and promotion opportunities may be more "rock-like" (because decisions around attracting professionals, may be constrained).
What are examples of levers?
Firm's growth rate, often considered a variable "given" to the firm by the market, and the project mix undertaken and its implications for project team structure.
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