Professional Documents
Culture Documents
Mckinsey SAG
Mckinsey SAG
Mckinsey SAG
Early History
Mckinsey- Accounting and Engineering Advisors 1962
Goals
Strategy
Policies
Organization
Facilities
Procedures
Personnel
Encouraged the to think for themselves
Early History
Marvin Bower
Initial Challenges
Growth started to slow down
Contributions: growing competition and client sophisticated needs
Conclusion: company had been growing too fast and neglected
internal skill development
The generalist view to problems no longer held beneficial due to
increased client sophistication
Need for development of T shaped consultants
Economic Turmoil
Broad Generalists Vs. In-Depth Knowledge
Competition (BCG)
Experience Curve
Growth-Share Matrix
Problem Raised:
Results:
Growth and Confidence
resumed
New Group to articulate the
firms existing K in the
organization arena
Environmental Challenges of
International Management
~ Forbes
Thought leadership as a buzz word or jargon used to describe a futurist or person who
is recognized among their peer mentors for innovative ideas and demonstrates the
confidence to promote or share those ideas as actionable, distilled insights.
~ Wikipedia
It is the recognition from the outside world that the company deeply understands its
business, the needs of its customers, and the broader marketplace in which it
operates.
~ McKinsey
Moving ahead.
Reengineering the Corporation by Michael Hammer and James Champy, and
Built to Last and Good to Great by Jim Collins
Introduction of the idea of Practice Bulletins- two page summaries of important
new ideas that identified the experts who could provide more detail.
Collected the 2,000 documents that they believed provided the critical mass to
launch PDNet.
The Knowledge Resource Directory (KRD) became the McKinsey Yellow Pages
and found immediate and widespread use firm-wide.
Although the computerized data bases were slow to be widely adopted, the
KRD found almost immediate enthusiastic acceptance.
Appropriable?
Transferable?
McKinsey
deployed its
capabilities
effectively in the
target foreign
locations like
Geneva,
Amsterdam and
Paris without
sacrificing too
much value
creation.
They appropriated
enough of the
value of these new
capabilities by
increasing the
client base.
The company
effectively
transferred them
back from the
experts and
consultants and
integrated them
into its capability
set without
sacrificing their
value.
Competitive advantageKey
insights
Vision for an MNC firm
usually focuses on issues of
importance to top level
management, adhering to the
highest standards of
integrity, professional ethics,
and technical excellence.
Result:
Ability to attract and develop young
men of outstanding qualifications,
and committed to continually
raising stature of the organisation.
Ability to serve clients superbly
well.
Multinational
firms
advantageousl
y tap both
internal and
external
expertise to
develop
"state-of-theart"
formulations
of each key
issue.
Competitive advantageKey
insights
Provides a
means to do
longer term,
bigger
commitment,
crossfunctional
development.
Result:
Creating other
pools of
dedicated
resources
protected
from daily
pressures and
client
demands, and
focused on
long term
The firm's
functional
knowledge is
reasserted.
Organisation
can recruit
more
researchoriented
people and
link more
effectively
into the
academic
arena.
Competitive advantageKey
insights
Multinational companies
believe in implementing and
creating industry-based
Clientele Sectors in
consumer products,
banking, industrial goods,
insurance, etc., cutting
across the geographic
offices that remains the
primary organizational
entity.
Result:
Creation of
expertise in areas
like strategy,
organization and
operations where
knowledge and
experience are
usually diffused.
Competitive advantageKey
insights
To complement the
growing number of
Clientele Industry
Sectors, MNCs
create Centers of
Competence built
around existing
areas of
management
expertise like
strategy,
organization,
marketing, change
management, and
systems.
Result:
Help in the development
of consultants and
ensures the continued
renewal of the firm's
intellectual resources.
For each Center, one or
two highly motivated,
recognized experts in
the particular field can
be identified and named
as practice leaders.
Competitive advantageKey
insights
Big MNCs have a strong foundation of a common database of
knowledge accumulated from client work and previously developed
practice areas.
They hire a full time practice coordinator who could:
Be responsible
for monitoring
the quality of
the data
Be useful in
helping
consultants
access the
relevant
information.
Result:
This way, all possibilities are explored in which the firm could ensure
that the expertise it has been developing creates positive measurable
results in each client engagement.
Competitive advantageKey
insights
Capitalizing on the
firm's long term
investment in
practice
development driven
and supported by
the knowledge
infrastructure
(eg.PDNet and FPIS).
Result:
Their value added is
in their access to
knowledge, the
intellectual rigor they
bring, and their ability
to build
understanding and
consensus among a
diverse management
group in the company.
If I help a partner serve his client better, he will call me back. It's all
about relationships, forming personal bonds, helping each other.
its members'
capabilities
(via home
pages for
each practice
member),
client base
(CST home
pages, links
to client web
sites)
external
knowledge
resources
(MIT's
Multimedia
Lab, Theseus
Institute, etc.)
Result:
Telecom Intranet accelerates the "engage-explore-apply-share"
knowledge cycle.
Industry Insights
Drawbacks
Required serious structural changes.
Resistance to change.
Could damage Mckinseys current advantage of local office presence
which might lead to losing a fair bit of clients.
Knowledge Development
Challenges
Strategic
Management
Concepts
Country-Specific
Knowledge
Global
Environment
(macroeconomic,
financial, political,
competitive)
Firm-Specific
Knowledge
(capabilities,
products, etc.)
Technology
Linking knowledge
management approach to
strategy
Advantages of Technology
Stocks of knowledge
Flows of knowledge
Knowledge management
efficiency
Offer new possibilities to the
KM processes
higher capacity data storage
knowledge engineering
approaches
computer-aided DSS
Thank you