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Summary Study Case Mckinsey

McKinsey & Company is a global management consulting firm founded in 1926. Over the decades, McKinsey has grown significantly and established offices around the world. In the 1970s and 1980s, McKinsey faced increased competition and began investing heavily in knowledge management systems to better share expertise across offices. By the 1990s, McKinsey had over 5,000 consultants and continued expanding globally and developing new practices. Today, McKinsey leaders discuss further growth while ensuring the firm maintains its collaborative culture.

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0% found this document useful (0 votes)
225 views5 pages

Summary Study Case Mckinsey

McKinsey & Company is a global management consulting firm founded in 1926. Over the decades, McKinsey has grown significantly and established offices around the world. In the 1970s and 1980s, McKinsey faced increased competition and began investing heavily in knowledge management systems to better share expertise across offices. By the 1990s, McKinsey had over 5,000 consultants and continued expanding globally and developing new practices. Today, McKinsey leaders discuss further growth while ensuring the firm maintains its collaborative culture.

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andinahanief
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SUMMARY

McKinsey & Company Managing Knowledge and Learning


ANDIKE AYU ARIMBI 1700001666
ANDINA PERMATA SARI 1700001880
SAFITRI HENY R 1700003343

Background
Mckinsey & Company is a global management conculting firm. “When James O. McKinsey in 1926,
he could not have imagined the reach his small firm would eventually have. Eighty-five years later,
the firm has grown into a global partnership serving two-thirds of the Fortune 1000”

The early years – 1920s to 1960s:

In 1993, the arrival of Marvin Bower provided James O. McKinsey with a strong advocate and a
fellow visionary. Bower adamantly believed that management consulting should be held to the same
high standards for professional conduct and performance as law and medicine.

 First international office was established in London in 1959.


 1950s marked the Company’s first corporate social responsibilty effort – with American Red
Cross

“After World War II, we had to upgrade the caliber of the people. And we did. And that led to being
the first consulting firm to hire Harvard Business School graduates.”

The McKInsey Quarterly was launched in 1964, to present the company’s most innovative work on
management theory to business leaders worldwide.

The 1970s and 19980s

McKInsey’s growth in the 1960s had threatened a precious commodity – its client relationships. The
arrival of new technology,i.e. computers and the internet , demanded new investment. Substantial
investment in knowledge development, particularly in key areas of expertise, strategy and
organization. McKinsey invested heavily in codifying its knowledge and making it accessible across
the firm, laying the foundation for the global network used today.

Growth during the 1990s

McKinsey grew to over 5.000 consultants and expanding into nearly 20 additional countries by 1999.
It also established the McKinsey Global Institute (MGI) to better advise its clients on the global
economy.

The 2000s till today


Globalisation has transformed the business landscape creating new opportunities and challenges for
the Company and led to the formation of new GLOBAL PRACTICES with a focus on public and social
sectors.

Strategic changes in the 1970s


Why the need for strategic changes?

Pressure from external environment : Increased competition , Loss of Talent to new firms

 Competition from the Boston Consulting Group (BCG)


 BCG came up with new consulting tools – the experience curve and growth share matrix
 Thought leadership vs client relationship

New breed of Sophisticated clients with high expectations

Large pool of the top talent opting to work for the competition

Neglect within internal structure

- Weakening of the technical and professional skills amongst consultant


- McKinsey failed to provide thenecessary resources to develop the skills of its consultant
- Company’s consultants were unable to maintain a competitive edge

Knowledge Management Systems

Information technology-based systems designed specifically to facilitate the sharing, integration and
utilisation of knowledge.

The systems are often associated with increased organisational flexibility, quicker responses to
changing conditions, greater innovation and improved decision-making.

Knowledge as an OBJECT

Knowledge , equated with information acess, is viewed as a thing to be stored and manipulated (ie,
an object). KMS focuses on gathering, storing and transferring knowledge (information)

Knowledge as a PROCESS

Knowledge is a process of simultaneously knowing and acting (ie, applying expertise).KMS focuses
on links among sources of knowledge to create wider breadth and depth of knowledge flows.

Knowledge as a Capability

Knowledge is a capability with the potetional for influencing future action (ie the capacity to use
information; learning and experience result in an ability to interpret information is necessary in
decision making). KMS focuses on enhancing intellectual capital by supporting development of
individual and organisarional competencies.
4 Types of KMS

1. Fragmented KMS
2. Contect-based KMS
3. Process-based KMS
4. Capability-based KMS

Managing Success
By the late 1980s, the firm was expanding rapidly again. In 1988, the same year Fred Gluck was
elected managing director, new offices were openend in Rome, Helsinki, Sao Paulo and Minneapolis
bringing the total to 41.

Refining Knowledge Management

After being elected MD, Gluck delegated the practice development role he had played since 1980 to
a newly constituted Clientele and Profesisional Development Committee (CPDC). When Ted Hall
took over leadership of this committee in late 1991, he felt there was a need to adjust the firm’s
knowledge development focus.

Client Impact

With responsibility for knowledge management deleated to the CPDC, Gluck began to focus on a
new theme-client impact. On being elected managing director, he made this a central theme in his
early speeches, memos and his first All partners Conference. He also created a Client it was
developing created positive measurable results in each client engagement.

Developing Multiple Career Paths

Despite all these changes, the specialist consultant model continued to struggle. Over the years, the
evaluation criteria for the specialist career path had gradually converged with the mainstream
generalist promotion criteria. For example, the specialist’s old promotion standard of “world-class
expertise” in a particular field had given way to a more pragmatic emphasis on client impact; the
notion of a legitimate role as a consultant to teams had evaluation standard of “grow or go” was
replaced by the normal associate’s more demanding “up or out” reuirement, albeit withi a slightly
more flexible timeframe.

Knowledge Management on the Front


To see how McKinsey’s envolving knowledge management proccesses were being felt by those on
the firm’s front lines,this the activity of three consultants working in three diverse locations and
focused on three different agendas:

1. Jeff Peters and the Sydney Office Assignment


As in most small or medium sized offices, most consultant in Sydney were generalists.
Almost all with financial industry expertise had been “ confilicted out” of the project due to
work they had done for competing financial institutions in Australia.
Stuckey immediately began using his personal network to find how he might tap into
McKinsey’s worldwide resources for someone who could lead this first engagement for an
important new client.

2. Warwick Bray European Telecoms


From his experience on the Australian telecom projects, Bray had written a PD document,
“Negotiating Interconnect” which he presented at the firm’s annual worldwide telecom
conference. Recognizing this developing “knowledge spike”, Michael patsalos-Fox, telecom
practiceleader in London. The practice opportunities exploded during the 1990s. To move
the knowledge creation beyond what he described as incremental synthesis of past
experience”
3. Stephen Dull and the Business Marketing Competence Center
Dull soon discovered that there was no structured development program. Like the eight
experienced consumer marketing recruits on other offices, he was expected to create his
own agenda.
Dull found his interest shifting from consumer to industrial marketing issues. As he focused
on building his own expertise, however, Dull ackknowledged that he didnt pay enough
attention to developing strong client realtions.

A New MD, A New Focus

In 1994 : Fred Gluck stepped down as MD. His successor is Rahat Gupta. He wanted to capitalized on
the firm’s long term investment in practice development driven by Clientele Industry Sectors and
Functional Capability Groups and supported by the knowledge infrastructure of PDNet and FPIS.

In 1995 : The new MD initiated six special initiatives-multiyear internal assignments led by senior
partners that focused on emerging issues the were of importance to CEOs.

Finaly, he planned to expand on the midel of the McKinsey Global Institute, a firm sponsored
researched center established in 1991.

Future Directions

Thet McKinsey partnership was engaged in spirited debate about the firm’s future directions and
priorities.

- Concerned that their growth may strectch the fabric of the place.
- Dark side Tech, call Tecnopoly it can dive out communication and people start believing that
emailing someone is the same thing as talking to them.

Thank you

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