It is in the authors opinion that an organization must understand the overall business strategy of a knowledge company. The strategy demonstrates some of the key points of a knowledge company. The analogy used was, “Suppose we throw off our old factory glasses and look in the other direction, what strategy do we see then I call it the “strategy of the knowledge company”, (Sveiby and Lloyd, 1987). The following are characteristics of strategies that an organization should try to emulate to be successful:

• Solves complex non-standard problems demanding creativity
• Has a small flat organization
• Has a high number of professional employees
• Few are non-skilled employees
• Grows organically and through alliances rather than by acquisition
• Forms private partnerships rather than goes public
• Treats its clients individually
• Builds company strength through skilled individuals
• Develops the organization through developing the know-how of the employees
• Has managers who are formal as well as informal leaders