by John L. Ward

McKinsey, the acclaimed consultancy, has been much in the news recently, because of an insider trading scandal.  (See a terrific article in The Financial Times, November 26.)

Reflecting on the great history of success and current travails they have drawn some conclusions:

• Don’t maximize growth – controlled growth is more sound.
• Think long-term –

–         “[think] as much about the judgment of ex-directors in 20 to 30 years hence as that of current partners.”

–        Protect the downside – “I’m more worried about being criticized for having gambled big, then for having missed an opportunity.”  (Said the current MD.)

One hears these principles commonly among family businesses.