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.