A bridge too far? CIPD acquires Bridge Consultancy
Welcome back readers.
My apologies for not blogging sooner than intended - but a lot going on at the moment business-wise.
But first the headline - CIPD does indeed acquire Bridge Consultancy - for £3 million of institute money.......
So what's a charitable institution buying a private consultancy you ask?
Well before we get into the potential conflict of interest regarding a monopoly position. The question is have the members voted on this?
Quoting directly from People Management:
Bridge Partnership, a consultancy specialising in leadership development and strategic transformation, is being acquired by the CIPD to boost the institute’s ability to engage with business leaders, including the most senior HR directors.
This is the CIPD’s first acquisition of another business, and will cost the institute a net £3m. Further payments will be due if Bridge – which will continue to trade under its own name – hits rigorous performance objectives and earnings targets. The deal is in its final stages.
“Bridge’s small, high-calibre team has strong credibility with business leaders,” said CIPD chief executive Jackie Orme. “They have been working closely with us on our ‘Next Generation HR’ research, and will strengthen our capability to lead thinking and support HR professionals in driving sustainable performance in their organisations.”
I believe this raises a number of serious questions. I don't believe this would happen in the accounting profession due to a massive conflict of interest. There is a fine line for a professional standards body to be offering mainline consultancy services.
We have been suspicious of CIPD's motives for some time in trying to build a consultancy business organically. This acquisition suggests that route 1 failed.
This will have some major repercussions. I have already alluded to the conflict of interest on previous blogs regarding its trade convention business and the supposed charity status of the CIPD. I've also been critical of CIPD's failure to sort out the professional status with regard to its qualification and to its 'special' contractual relationships with organisations such as KPMG.
This announcement suggests that member interests and industry professionalism are now playing second fiddle to an increasingly focused lobbying and consultancy firm dressed up as a charity.
It's perhaps easy to forget that there is a considerable number of CIPD members who are either self-employed or employed at other consultancies in similar work. I would suggest that this provides some conflict in itself, never mind the wider debate.
I'd be interested in CIPD members comments.
Ultimately, the CIPD should separate its trade convention business and now its consultancy business from its professional body charity. If nothing else there is also a more ethical question to be asked in that CIPD's charity status means it avoids corporate taxation if subsidiaries are set up to pay a dividend (as is the case with their event company and now it seems Bridge Consultancy).
There's a debate coming.....I suspect that tongues are already wagging.........
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