How to Protect Your Company from Consultant Espionage.

The article focuses on the risks of consultant espionage—specifically, the leakage of proprietary knowledge when companies collaborate with external experts to drive innovation. It highlights that process innovations, which are intangible and harder to protect legally, pose a higher leakage risk than product innovations. The authors identify a paradox where deep coordination, essential for innovation, simultaneously increases exposure to information leakage, particularly through integrators who manage project synchronization. To manage this risk, the article recommends assessing the type of innovation, recognizing the coordination paradox, and implementing a monitoring system that oversees integrators' activities to deter misappropriation while maintaining collaboration. This approach aims to balance safeguarding proprietary knowledge with fostering effective innovation.