Control mechanisms in the consulting industry

: a comparative study across firm sizes

Abstract

For a firm to perform successfully, it must ensure that employees’ actions align with the organization’s goals. Control systems are essential tools for providing this alignment, particularly in dynamic and knowledge-intensive industries such as consulting. Despite the importance of control systems, little is known about these systems in consulting firms of varying sizes from a holistic perspective. Therefore, this thesis aims to close that gap and answer the question: What control mechanisms do consultancies employ? Drawing on control theory, this paper examines the types of control, and the degree of formality used across various firm sizes. Utilizing an exploratory, qualitative, multiple-case study design, semi-structured, in-depth interviews were conducted with six practitioners from the DACH region working in consulting, ranging from small start-ups to large global players. The data analysis follows a structured approach, including thematic analysis, word coding, and the identification of differences and commonalities among consulting firms. Findings suggest that all firms apply an integrative control system that combines different control types. Furthermore, the findings reveal that control formality increases with the size of the consulting firm. Large firms tend to use more bureaucratic and formal control systems, whereas smaller firms rely more on informal controls. This study contributes to control literature by demonstrating that control mechanisms in consulting are neither exclusive nor uniformly applied. The paper's findings suggest that control systems should be designed with an awareness of the specific context and environment. These insights provide practical guidance for practitioners for balancing autonomy with strategic alignment.

Date of Award	7 Jul 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Pedro Parada (Supervisor)