McKinsey and the

Globalization of
Consultancy

by :
ACHMAD WIBOWO ( 0600673186 )
ERIK SEBASTIAN ( 0600611055 )
JULBINTOR KEMBAREN ( 0300467420 )
McKinsey and the
Globalization of
Consultancy

by :
ACHMAD WIBOWO ( 0600673186 )
ERIK SEBASTIAN ( 0600611055 )
JULBINTOR KEMBAREN ( 0300467420 )
 A History of Mckinsey
• When James O. McKinsey founded McKinsey in 1926, he could not
have imagined the reach his small firm would eventually have. 
More than 75 years later, the firm has grown into a global
partnership serving three of the world's five largest companies and
two-thirds of the Fortune 1000.
• McKinsey already had an established practice in budgeting and
finance when he decided to test his theory that so-called
"management engineers" could go beyond rescuing sick companies
to helping healthy companies thrive and grow. His vision opened
the door to others who shaped a new profession as they built one of
the world's best-known professional services firms.
• And through the years, his original mission has remained the same
(with a little rewording from decade to decade): to help clients
make distinctive, lasting, and substantial improvements in their
performance and to build a great firm that is able to attract,
develop, excite, and retain exceptional people.
 Marvin Bower core
principles
• Client interests must be placed before those of
the firm.
• Engagements should only be undertaken when
the value to the client was expected to exceed
the firm's fees.
• The firm's ownership should be restricted to
active partners.
• Firm members must be professionals trained and
motivated to do outstanding work and make a
permanent career with the firm.
What Mckinsey do…and how
they do it
• Follow the top management approach.
• Using they global network to deliver the
best of the firm to all clients.
• Bring innovations in management
practice to clients.
• Build client capabilities to sustain
improvement.
• Build enduring relationships based on
trust
US Offices
International Offices
 Current Situation
• McKinsey is one of the biggest consulting
companies in the world and is famous for his
knowledge and the focus was on knowledge
development next to serving its customers.
• With more than 80 locations around the world,
McKinsey is a global firm with no central office.
They operate under a 'One Firm' principle where
each location, while maintaining its unique local
characteristics, adheres to the values and
principles that unite them no matter what their
cultures and nationalities are.
McKinsey Challenge

EN
HA EXPAND
NC
ED
EXI
T
 Going Global
Strength Weakness Opportunity Threats

Human Distributed World Brand Risen of

Recources management Recognition competitors
“McKinsey More client,
Way” more money
Well
structured
The Road Map
Inside McKinsey

KNOWLEDGE
MANAGEMENT
Mckinsey Mind
Basic Problem Solving Process

Intuition

1 Data
2
 Mckinsey Mind
Enchanced Problem Solving Process

Intuition

1 Data 2
 Business Need
• Competitive
• Organizational
• Financial
• Operational
 Analyzing
• Framing
– Dividing case into structure
• The way MCKinsey consultants apply structure to their
business problems :
– Feel free to be MECE (Mutually Exclusive, Collectively Exhaustive)
– Don’t reinvent the wheel
– Every client is unique
• Suitability and adaptability of structured thinking
– Without sructures your idea will not stand up
– Use strucuture to strengthen your thinking and trigger ideas.
 Analyzing
– Forming a hypotesis
• Using hypotheses by reccaping the relevant
principles espoused by Mckinsey :
» Solve problem at first meeting
» Proper prior preparation
» In a white room
» The problem is not always the problem
• Initial hypotesis will :
» save your time
» make your decision making more effective
 Analyzing
• Designing
– Guidelines to plot anlytical courses
• Find the key drivers
• Look at the big pictures
• Don’t boil the ocean
• Sometimes you have to let the solution
come to you
 Analyzing
– Four lessons to speed up decision
making :
• Let your hipotesis determine your analysis
• Get your analytical policies right
• Forget about absolute precission
• Triangulate around the though problem
 Analyzing
• Gathering
– Gathering necessary data to perform the
analysis by doing research and
interview.
• Research
– MCKinsey’s principle for research :
» Facts are friendly
» Don’t accept no idea
» Specific research tips
 Analyzing
– Three ways to get research done:
» Diagnose the data orientation of your organization
» Demonstrate the power of good facts
» Build the proper infrastructure
• interviewing
– Inerviewing is part of every MCKinsey engagement, it can generates
primary data, and identify great sources of secondary data.
 Analyzing
– How MCKinsey interview :
» Be prepared: write an interview guids
» When conducting interviews, listen and guide
» Obey the seven tips :
1.Have the iterviewee’s boss setup the meeting
2.Interview in pairs
3.Listen, don’t lead
4.Paraphrase, paraphrase, paraphrase
5.Use indirect approach
6.Don’t ask too much
7.Adopt the Columbo tactic
8.Don’t leave the interviewed naked
9.Always write thank you note
 Analyzing
• Interpreting
– Figuring things out, drawing conclusions from
analysis and turn it into recomendation to clients.
– Analysis interpretation:
» Understanding the data, Piecing together the
story of the data
» Generating the end product, Assembling the
findings into an externally directed end
product: a course of action for your
organization or client.
 Presenting
• Structure
– Structure d presentations, MCKinsey
emphasizes organization and simplicity.
• Be structured
• The elevator test
• Keep it simple- one message per chart
 Presenting
• Buy-in
– A presentation is only a tool, in the end
of the objectives for the audience are
having them to buy in the ideas.
Prewire everyting , Avoid Surprises,
Tailor your persentation to your
audience.
 Managing
• Team
– Four major elements of MCKinsey team
management : team selection, internal
communication, bonding activities and
individual development.
• Client
– Identifying, knowing who were we dealing
with. Three areas of client management:
obtaining, maintaining, retaining.
 Managing
• Self
– Maintaining self management, respect,
adapt, help and improvement.
 Intuition & Data
Having all relevant facts before
reaching a decision is practically
impossible. Therefore, executives
make business decision based partly
on facts and partly on intuition-gut
instinct tempered by experience.
 Implementation
• Dedication
• Reaction
• Completion
• Iteration
 Leadership
• Vision
• Inspiration
• Delegation
 Mckinsey Mind
Enchanced Problem Solving Process

Intuition

1 Data 2