McKinsey & Company is a privately owned management consulting firm that focuses on solving issues of concern to senior management in large corporations and organizations. Known among its employees simply as "The Firm" McKinsey & Company was founded in Chicago in 1926 by James O. ("Mac") McKinsey. McKinsey was a professor at the University of Chicago who pioneered budgeting as a management tool. Marshall Field's became a client in 1935, and soon convinced James McKinsey to leave the firm and become its CEO; however, he died unexpectedly in 1937.
Today McKinsey has over 7,500 consultants in 90 offices across 51 countries. They help solve strategic, organizational, operational and technological problems, for some of the world's largest organizations. Clients include three of the world's five largest companies, two-thirds of the Fortune 1000, governments and other non-profit institutions. McKinsey also performs pro bono engagements for a number of charitable organizations and government agencies worldwide. 'Forbes' estimated the firm's 2005 revenues at $3.8 billion in its list of largest private companies.
To be the global leader in consulting industry, provide expertise consulting service to the worldwide clients.
To help the clients make positive, lasting, and substantial improvements in their performance and to build a great firm that is able to attract, develop, excite, and retain exceptional people.
This case discrbed the development process of McKinsey&Compay from 1926 to 1996. In particular, it focuses on the way in which McKinsey has developed structures, systems, processes, and practices to help it develop, transfer, and disseminate knowledge among its 3,800 consultants in 69 offices worldwide. Concludes by focusing on three young consultants operating in each dimension of the firm's organization--the local office, the industry practice, and the firm's competence center. So, whether the changes they have made are sufficient to maintain the firm's vital knowledge development process, we will get the solution according to the following questions’ analysis.
1.How was this little of “accounting and engineering advisors” able to grow into the world’s most prestigious consulting firm 50 years later? What was the unique source of competitive advantage developed by James O. McKinsey and later Marvin Bower? McKinsey can grow his little advising firm into the world’s most prestigious consulting firm by outlining the vision for the firm as focused on issues of importance of top-level management and used the intelligent technology and resources to serve their clients. He practiced the development initiative which focused on the knowledge development by setting up centers of competence and building the knowledge infrastructure. •An “accounting and engineering advisors” company became a well-known consultant firm because James began with recruiting experienced executives, and training them in the integrated approach. In addition, One firm policy that formed by Bower which required all consultants to be recruited and advance on the firm wide basis, clients to be treated as the company’s responsibilities and the profit to be shared from a firm pool, not as office pool was also the key success of the firm. Moreover, James encouraged those executives to synthesize data and think for themselves to come up with the new ideas which may benefit to the company’s development. From the employees perspective; they have enough confident to show their clients that they can solve the problems. •The unique source of competitive advantage that Marvin Bower is that he outlined his vision for the firm as one focused on issue of importance to top-level management, adhering to the highest standards of integrity, professional ethics, and technical excellence by using the mission of serving the clients superbly well. He used the McKinsey’s...
...McKinsey & Company was founded in 1926 as the Accounting and Engineering Advisors and it grew rapidly. The case describes the steps taken by McKinsey & Company to transform the firm into "snowball makers" and "snowball throwers."
1. What was the organization design that was in place at McKinsey and what did they want to change? Did the change in design complement their strategy? What were the key barriers to implementing change?
The organization design in place at McKinsey was general in nature. The consultants were to be well trained, highly intelligent, disciplined analyst. Though the employees were good problem solvers, they often lacked knowledge concerning the industry, which was demanded by the clients. McKinsey operated under a One Firm policy. The policy requires all consultants to be recruited and advanced on a firm-wide basis, all clients be treated as McKinsey & Company responsibilities, and that profits be shared from a firm pool, not an office pool. The vision of the firm stated they wanted to be "one focused on issues of importance to top level management, adhering to the highest standards of integrity, professional ethics, and technical excellence, able to attract and develop young men of outstanding qualifications, and committed to continually raising its stature and influence. Above all, it was to be a...
April 13, 2012.
McKinsey and Company: managingknowledge and learning
1)The small firm “accounting and engineering advisors” was able to grow into the world’s most prestigious consulting firm in 50 years by focusing on the one firm vision. The most difficult internal challenge that the company faced was how to manage, release and benefit from theknowledge already held by the experts within the company.nThis required the effort of all the experts to communicate their findings. The support systems like PDNet and FPIS which were created, aided in helping consultants to publish their work. However, even after this was accomplished one of the most important issues still remained. This issue was the need the for the change of the consultants. Consultants would have to change from T-shaped to I-shaped for the knowledge infrastructure to be effective. This required more specialization which contrasted with the original requirement. All of these factors were conducive to McKinsey developing a competitive advantage over the competition. The sense of professionalism engrained in the consultants by first McKinsey and later Bower also helped to give the firm a unique source of competitive advantage. Bower's vision was that the firm would adhere to the highest level of integrity, ethics and technical...
...Michelle Abbott Professor Jon Down December 10, 2002 Written CaseAnalysisMcKinsey & Company: ManagingKnowledge and Learning Evaluating Gupta’s Four Pronged Plan
Rajat Gupta has recently inherited a fast-growing consulting firm with a strong knowledge base and a competitive market position. In order to ensure the future success of McKinsey &Company, however, Gupta faces a number of challenges: he must provide outstanding services to an increasingly sophisticated clientele, offer his employees ongoing education and upwardly mobile career paths, continually enhance McKinsey’s reputation as a leader in the consulting field, and, perhaps most significantly, continue to leverage his company’s knowledge base across divisions while still maintaining the unity and cohesive corporate culture that have always been important to McKinsey. Gupta seems determined to pursue knowledge as the company’s key business driver. Accordingly, his four-pronged plan includes an emphasis on practice development and organizational learning, an annual program called the Practice Olympics, six special initiatives focused on emerging issues, and the expansion of McKinsey’s research institute. But can Gupta successfully tend to all of these initiatives at once without fragmenting the...
CaseAnalysis: The Rose Co.
Due Date: July 27, 2014
The Rose Company is building a new plant to reduce cost, improve the quality of products, and maintain competitive leadership by gaining a slight production advantage. The main obstacles to be overcome are the commissioning of a new plant, new methods and process, and administrative reporting issues. As the newly hired General Plant Manager, I plan to resolve these issues by insisting that all plant communications flow through me, instituting training for plant personnel and setting operational expectations.
Situation Analysis - The Jackson Plant an older, established unit in the Rose Co. has not operated satisfactorily for several years. The Board of Directors has recently approved the construction of a new plant with the expectation of achieving lower costs of processing and a reduction in man-power. The strategic goals of the Organization is to reduce cost, improved product quality, and maintain competitive leadership by gaining a slight production advantage by using new technologies, processes and new methods of production. The Organization has also decided to implement a new decentralized leadership structure. I have recently been appointed as general manager of the Jackson Plant. I will be responsible for the management and administration of all functions and personnel, except sales, at the new plant....
BUS 510 High Performance Management
05 November 2012
CASE STUDY ON
McKinsey & Company: ManagingKnowledge and Learning
McKinsey & Company is a privately owned management consulting firm that focuses on solving issues of concern to senior management in large corporations and organizations. Known among its employees simply as "The Firm" McKinsey & Company was founded in Chicago in 1926 by James O. ("Mac") McKinsey. McKinsey was a professor at the University of Chicago who pioneered budgeting as a management tool. Marshall Field's became a client in 1935, and soon convinced James McKinsey to leave the firm and become its CEO; however, he died unexpectedly in 1937.Today McKinsey has over 7,500 consultants in 90 offices across 51 countries. They help solve strategic, organizational, operational and technological problems, for some of the world's largest organizations. Clients include three of the world's five largest companies, two-thirds of the Fortune 1000, governments and other non-profit institutions. McKinsey also performs pro bono engagements for a number of charitable organizations and government agencies worldwide. 'Forbes' estimated the firm's 2005 revenues at $3.8 billion in its list of largest...
...McKinsey & Company: ManagingKnowledge and Forces of Resistance
By: Wasim AlSayegh McKinsey & Company, the firm that governments and large companies consult when facing growing pains, is facing difficulties with handling its own rapid growth. The case "McKinsey & Company: ManagingKnowledge and Learning" chronicles the evolution of McKinsey's attempts to capture its associates knowledge to effectively apply it to clients' problems. At the core of the case is a simple problem definition: How can McKinsey & Company develop, capture and leverage knowledge in service of its clients worldwide? After all, knowledge is the single most important asset McKinsey & Company has. There are challenge: 1two components to this
Through every iteration or step in its knowledge system's evolution McKinsey & Company faced resistance forces. Rajat Gupta, the managing director of McKinsey & Company, enumerated all the forces resisting McKinsey's latest evolutionary step as: the sheer amount of information, higher client's expectation and McKinsey's distributed global presence. These forces may well be hurdles for...
McKinsey & Company: ManagingKnowledge and Learning |
Case Study #7 |
1. Which countries are involved in this case? Describe the diplomatic relations between hose countries? Are there any trade agreements in place which would impact management’s decision to enter the target market?
2. Which geographic markets are being considered in this case? Provincial, Country, Regional, and/or Global?
3. What are the considerations which may impact the overall marketing strategy?
4. What are the cultural considerations within the company and the specific management team?
1. How was this obscure firm of “accounting and engineering advisors” able to grow into the world’s most prestigious consulting firm fifty years later? What was the unique source of competitive advantage developed by James O. McKinsey and later Marvin Bower?
The reason McKinsey & Company has grown to be the most prestigious consulting firm is their ability to develop relationships and create confidence in its clients. James McKinsey and Marvin Bower were both able to identify the importance of expertise in the necessary fields and how imperative delivering services that are essential and beneficial for the clients. This...
...But there was another thought that kept coming back to the 47 year old leader of this highly
successful $1.8 billion consulting firm (See Exhibit 1 for a twenty year growth history). If this
represented the tip of McKinsey’s knowledge and expertise iceberg, how well was the firm doing in
developing, capturing, and leveraging this asset in service of its clients worldwide? Although the
Practice Olympics was only one of several initiatives he had championed, Gupta wondered if it was
enough, particularly in light of his often stated belief that “knowledge is the lifeblood of McKinsey.”
Founded in 1926 by University of Chicago professor, James (“Mac”) McKinsey, the firm of
“accounting and engineering advisors” that bore his name grew rapidly. Soon Mac began recruiting
experienced executives, and training them in the integrated approach he called his General Survey
outline. In Saturday morning sessions he would lead consultants through an “undeviating sequence”
of analysis—goals, strategy, policies, organization, facilities, procedures, and personnel—while still
encouraging them to synthesize data and think for themselves.
In 1932, Mac recruited Marvin Bower, a bright young lawyer with a Harvard MBA, and
within two years asked him to become manager of the recently opened New York office. Convinced
that he had to upgrade the firm’s image in an industry typically regarded as...