In Pursuit of Creative Compliance: Innovation in Professional Service Firms

In this chapter, we discuss the nature of innovation in professional service firms. We argue that the distinctive characteristics of these firms affect their innovation drivers, sources, processes and outcomes. We suggest that, paradoxically, innovation in professional services is primarily driven by a pursuit of compliance, rather than differentiation. Professionals are typically required to resolve situations in which their clients aim to comply with external constraints, but seek to do so in a creative way that is least compromising for their business goals. Thus, innovation in professional service firms is primarily driven by creative compliance.