Strategy and Positioning in Professional Service Firms

Background Note | HBS Case Collection | January 2004 (Revised May 2004)

Strategy and Positioning in Professional Service Firms

Abstract

This case provides a definition of strategy, distinguishes between corporate and practice strategy, and discusses how and why developing and implementing strategy for professional service firms is different from developing and implementing strategy for commercial firms. The case discusses how practice strategy involves positioning the practice on a spectrum of services and aligning the organization and its professionals to the position. Practices are subjected continuously to forces that move their positioning. To be successful, practices must dynamically reposition or realign themselves. The csae concludes with a discussion of the corporate strategy challenges facing multipractice professional service firms.

Keywords: Corporate Strategy; Service Industry;

Format: Print

12 pages

Educators Purchase

Citation:

Nanda, Ashish. "Strategy and Positioning in Professional Service Firms." Harvard Business School Background Note 904-060, January 2004. (Revised May 2004.)

This note offers an overview of the Strategy course offered in HBS’s Required Curriculum. The RC Strategy course aims to help students become effective strategists. The note introduces the six modules of the course: What is Strategy, Market Attractiveness, Competitive Advantage, Strategic Interactions, Corporate Strategy, and Crafting Strategy.

This note introduces the first module of the RC Strategy course, What is Strategy? It helps students develop their perspective on what is a strategy, what is a good strategy, and how strategy development differs across contexts.

The case traces Bryan Upton’s 20-plus years as managing director of a Sheffield-based cutlery company and describes the strategic and organizational actions he took to raise sales and earnings at more than 25% annually, even as the local industry was in steep decline.
After outlining how the U.K. cutlery industry has evolved, the case describes the major changes introduced by Upton and his mentor Jerry Hahn in Richardson Sheffield to upgrade production technology, innovate the product line, and instill customer orientation. The case focuses on the impact of Upton’s controversial approach to human resource management in general and to management selection and development in particular on the organizational climate at the firm.
The case closes by identifying some major changes that threaten Richardson Sheffield. In 1986, Hahn’s ownership position is sold to an Australian industrial company with a different operating style and different strategic objectives for Richardson Sheffield. Top management is also undergoing a transition, with Upton gradually moving aside and outsiders being introduced. Finally, the approaching 1992 EC market harmonization presents new competitive challenges and market opportunities.

Faculty & Research

Strategy and Positioning in Professional Service Firms

Abstract

Citation:

About the Author

More from the Author