Managing The Consulting Firm
4 important questions on Managing The Consulting Firm
Where the project structure drives staffing, what do the economics of a PSF determine?
What are the two economic aspects of the PSF that thus determine the shape of the firm?
- Few fixed assets, they only require capital to fund accounts receivable and other working capital items (WC = current assets - current liabilities)
- Consequently, revenues are paid in the form of salaries, bonuses and net partnership profits
What is meant by the fact that PSFs employ a rigid promotion structure?
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How is determined what a reasonable amount of time is for someone to move up the ladder in a PSF?
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