Managing knowledge in global service firms: Centers of excellence

Executive Overview Service firms that are global players benefit primarily from their ability to manage their proprietary knowledge—assimilating new knowledge from around the world, building new knowledge through the interaction of professional employees, and disseminating knowledge effectively throughout the firm. Centers of excellence represent the best practice of managing knowledge. Formally charged with the responsibility of leveraging and/or making knowledge available throughout the firm, the center of excellence provides a focal point for knowledge development and dissemination and replaces an old-fashioned reliance on informal, word-of-mouth mechanisms. However, a center also raises substantial organizational and motivational challenges.