A simulation tool for talent management in knowledge-intense firms. An opportunity for HR managers?

Abstract

This article reviews the consequences of introducing certain policies in consulting firms, from the point of maintaining intellectual capital. Consultancies base the competitive edge of their offering on the knowledge of their professionals, despite the difficulties inherent in depending internally on a resource which may of its own volition choose to leave the company, and depending externally on demand for services. Devising a dynamic simulation tool to aid in decision-making, we found that, while the demand for consultancy services determines the number of consultants required, the knowledge management policies of each organization determine its internal capacity to maintain its intellectual capital within the sector.