Reputational capital in consulting communities of practice

In a global economy increasingly focused on knowledge and services, the long-term strategic advantage of the professional service firm is directly related to the reputation created and maintained by individual staff. Based upon case study findings from a consulting company, these individual reputations were found to directly impact the effectiveness of knowledge exchange and the strength of individual relationships held with their direct clients. In an expanding company, the firm’s reputation grew with the collective individual reputations of consultants. However, reputational and relationship capital were shown to co-exist in a fragile interdependence, demanding clear understanding and careful management. Reputations matter in business; they are crucial to strategising competitive enterprise. Functionally, they are acknowledged as prerequisites for extending existing business whilst facilitating the conversion of new opportunities. In professional service organisations, particularly consulting firms, reputations are seen as critical to maintaining a viable, ongoing and competitive position (Petrick, Scherer, et al, 1999)