What is Up-or-Out

Professional services firms (PSFs) have traditionally relied on professional partnerships as an organizational principle. This system was developed more than a century ago, when women did not actively pursue careers in professional services. Professional partnerships are very resistant to change and have managed to preserve their main features for decades. Their formal and informal practices still have exclusionary effects on female professionals. However, professional services firms are increasingly facing a deregulated, competitive, and very dynamic environment and are pressured by the labor market and client firms to rethink their stance on gender diversity. This chapter presents an overview of the management practices in professional services firms and outlines the major changes in their environment. Recent trends in changing management practices in the professional services sector and their impact on female professionals are analyzed. Implications for theory building and future research on management practices in professional service firms are discussed.