mckinsey sag

8/9/2019 Mckinsey SAG

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Early History

• Mckinsey- Accounting and Engineering Advisors 1

• James (Mac) Mcinsey! "ni#ersity o$ C%icago pro$es• General ur#ey 'utline "nde#iating seuence o$

analysis• Goals• trategy• *olicies

• 'rgani+ation• ,acilities• *rocedures• *ersonnel• Encouraged t%e to t%in $or t%emsel#es


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Early History

• Marvin Bower• "pgraded t%e -rm.s image to /e0ciency e1perts2 or /usiness d• 4ision

• ,ocus on issues important to tople#el management• Hig% standards o$ integrity! pro$essional et%ics! and tec%nical e

ale attract and de#elop men o$ outstanding uali-cations andto raising its stature and in5uence

• er#e its clients superly well

• '6E ,78M policy• 8euired all consultants to e recruited and ad#anced on a -rm• Clients to e treated as responsiilities• *ro-ts to e s%ared $rom a -rm pool• E#ery assignment s%ould ring more t%an re#enue 9 e1perienc


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Initial Challenges

• Growt% started to slow down

• Contriutions: growing competition and client sop%isticated ne• Conclusion: company %ad een growing too $ast and neglected

internal sill de#elopment

• ;%e generalist #iew to prolems no longer %eld ene-cial due increased client sop%istication

• 6eed $or de#elopment o$ ; s%aped consultants


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on !aniel and the "ractice !evelo#$eInitiative

• Challenges %aced

• Economic ;urmoil

• ept% Knowledg

• Competition (


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8on >aniel and t%e *ractice >e#elopment7nitiati#e

• &olutions

• ? $ull time director o$training

• 6ew Commitment andMission "pdate

• /er#e Clients and ;rain>e#elop itsConsultants2

• tructural C%anges: Matri1'rgani+ation

• 7ndustry


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%red )luck and Centers o* Co$#eten

• @anted to ring an eually

stimulating intellectualen#ironment to McKinsey2

• Creation o$ Centers o$ Competence

• Knowledge >e#elopment was core

• 7nstitutionali+ed and ongoing

• 8esponsiility o$ E#eryone

•Goals: />e#elop E1pertise A8enewal o$ t%e ,irm 7ntellectual8esources2

• 6'@


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i0cult to emed t%e nowledge into critical client prol

• 7slands o$ competencies due to poor communication


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Environ$ental Challenges o*International Manage$ent


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Evaluate the role of‘thought leadership’ in

development of the rm


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• Thought Leadership is establishing a relationship with and delivering somethin

value to your stakeholders and customers that aligns with your brand/compan

In the process you go well beyond merely selling a product or service and esta

your brand /company as the expert in that eld and dierentiate yourself from

competitors. ~ Forbes

• Thought leadership as a bu word or !argon "used to describe a futurist or per

is recognied among their peer mentors for innovative ideas and demonstrate

condence to promote or share those ideas as actionable# distilled insights.

~ Wikipedia

• It is the recognition from the outside world that the company deeply understan

business# the needs of its customers# and the broader marketplace in which it

o erates. ~ McKinse


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%hought 'eadership ( McKi• Launch of the $c%insey &ta 'aper series in ()*+.

• ,y the early ()+-s the rm was actively encouraging its

consultants to publish their key ndings.• Initiative got a ma!or boost with the publication in ()+

ma!or bestsellers

• 'eters and aterman0s In &earch of 1xcellence and %en2hmae0s The $ind of the &trategist.


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Moving ahead).

34eengineering the 5orporation6 by $ichael 7ammer and 8ames 5h

3,uilt to Last6 and 39ood to 9reat6 by 8im 5ollinsIntroduction of the idea of 'ractice ,ulletins: two page summaries o

new ideas that identied the experts who could provide more detail

Collected t%e !III documents t%at t%ey elie#ed pro#ided t%e crit

launc% *>6et=

The %nowledge 4esource ;irectory el

and found immediate and widespread use rm:wide.

?lthough the computeried data bases were slow to be widely adop

%4; found almost immediate enthusiastic acceptance.


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%he *+% frame#ork

%he capabilities developed in the,- and European

market #ererelevant to

customers in thetarget market. /n

other #ords0#ould the create

value for thecustomer b providinge1pertise inconsultanc.

+ppropriable&

%ransfeMcKi

deplocapab

e"ectivetarget flocatio

2en

+msterd3aris #sacric

much crea


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%he ne# assetsand capabilities that McKinse

developed #erecomplementar to

the e1istingcapabilities thatconstituted the

base of thecompan’scompetitiveadvantage

%he appropriated enough of the

value of these ne#capabilities bincreasing the

client base.

%he coe"ec

transferrback fre1per

consultaintegratinto its c

set #sacrici

val

%he 4+% frame#ork


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5o# can #e integrate the insfrom this case to our overa

understanding of the compet

advantage of multinational 4ompetitive advantage K


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4ompetitive advantage6Kinsights

7ision for an M$4 rm

usuall focuses on issues of

importance to top level

management0 adhering to the

highest standards of

integrit0 professional ethics0

and technical e1cellence.

*esult8

• +bilit to attract and de

men of outstanding 9ua

and committed to conti

raising stature of the o

• +bilit to serve clients

#ell.

4ompetitive advantage Ke


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Multinationalrms

advantageousl tap both

internal ande1ternal

e1pertise to

develop:state;of;the;

art:formulationsof each ke

issue.

4reating other pools ofdedicatedresources protectedfrom dail

pressures andclient

demands0 and

focused onlong termresearch

*esult8

%he rm


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Multinational companiesbelieve in implementing and

creating industr;based4lientele -ectors inconsumer products0

banking0 industrial goods0insurance0 etc.0 cuttingacross the geographic

o>ces that remains the primar organi?ational

entit.

*esult8

4reation oe1pertise in a

like strategorgani?ationoperations #kno#ledge ae1perience

usuall di"u

4ompetitive advantage K


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%o complement the

gro#ing number of4lientele /ndustr-ectors0 M$4s

create 4enters of4ompetence builtaround e1isting

areas ofmanagement

e1pertise likestrateg0

organi?ation0marketing0 changemanagement0 and

sstems.

*esult8• 5elp in the dev

of consultants ensures the corene#al of the intellectual res

• For each 4ente

t#o highl motrecogni?ed e1pthe particular be identied anas practice lead

4ompetitive advantage K


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• ,ig $@5s have a strong foundation of a common daknowledge accumulated from client work and previously

practice areas.• They hire a full time practice coordinator who couldA

*esult8

This way# all possibilities are explored in which the rm cothat the expertise it has been developing creates positive mresults in each client engagement.

@e responsiblefor monitoringthe 9ualit of

the data

@e useful inhelping

consultantsaccess therelevant

information.

4ompetitive advantage6K


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4apitali?ing on therm


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D/f / help a partner serve his client better0 he #ill call me ba

about relationships0 forming personal bonds0 helping each

• $@5s like $c%insey have specic intranet link designed to a

members direct access toA

*esult8

• Telecom Intranet accelerates the Bengage:explore:apply:sha

knowledge cycle.

the practice


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%ir$s industry secto

wise a##roach


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Industry Insights

• Conditions dier signi-cantly $rom sector to sector=

• 6o standard solution applicale uni$ormly across dierent sec

• McKinsey.s growt% stalled=

• tarted losing clients as well as recruits=

• Economic turmoil! growing sop%istication o$ t%e clients! new $ocompetitors=

• Generali+ation was slowly getting replaced y e1pertise=

• Mcinsey struggling to meet t%e c%allenges laid out in t%e comreport

• ?ggressi#e competitors %a#e entered into t%e arena wit% totadierent and e0cient models t%an Mcinsey.s local o0ceaso$ /Client 8elations%ip2 Consulting=


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Bene+ts o* such a##roach

• >e#elopment o$ client as well as consultant=

• 6ew clients demands were in t%e lines o$ t%e industry practisenot according to t%e traditional practises o$ Mcinsey! t%us t%ecater to t%e new clients and e1pand usiness=

• ;%is approac% e#entually created a nowledge management swit%in t%e organi+ation w%ic% %elped in taing ey managemedecisions $or t%e clients=


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!raw'acks

• 8euired serious structural c%anges=

• 8esistance to c%ange=• Could damage Mcinsey.s current ad#antage o$ local o0ce pre

w%ic% mig%t lead to losing a $air it o$ clients=


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.nowledge !evelo#$ent

Challen es


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.nowledge !evelo#$ent Challenges

• 7denti$ying ey tacit nowledge assets and managing t%ese assets so t%aare accurate and a#ailale to people t%roug%out t%e organi+ation remain

signi-cant c%allenge

• '#erlooing t%e need o$ s%aring nowledge

• ;%ere is also a dar side on tec%nology it can dri#e out communication

people start elie#ing t%at emailing someone is t%e same t%ing as talint%em= o teams s%ouldn.t stop meeting and practice con$erences s%ould%eld on discussion $orums online=

• 7n addition! 7; can sometimes lead to in$ormation o#erload t%e more timemployees at McKinsey spend searc%ing out t%e ideal $ramewor or t%e e1pert! t%e less time t%ey spend t%ining creati#ely aout t%e prolem=

• ;oo muc% $ocus on nowledge! and less on ser#ice

• >ata ecomes out o$ date #ery uicly

• Hig% Cost

• "ncertain payac on t%e in#estment Hig% 8is

How to 'est utili/e the


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How to 'est utili/e theknowledge•


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How to 'est utili/e theknowledge• ;%e interaction o$ Knowledge Management and trategy

• ;%e importance o$ de#eloping a Knowledge Culture• ;%e Knowledge Management dilemma: Looking ,ackward #s=

Looking Corward

• ;%e relations%ip etween Knowledge Management and 4alue

• ;%e relations%ip etween Knowledge Management and ;ec%no

• ;%e relations%ip etween Knowledge Management and *eople

6etwors


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.0,E!)E E34IEME05& % A ),BA, MA0A)E

Strategic

ManagementConcepts

Country-Specific

Knowledge(i.e., culture, gov’t

regulations, market

conditions, etc.)

Global

Environment(macroeconomic

financial, politicalcompetitive)

Firm-Specific

Knowledge(capabilities,

products, etc.)


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5echnology

• ,*7 (,irm *ractice 7n$ormation ystem)

• >ataases o$ clients engagement

• 7ncreased accessiility & reliale in$ormation

• *>6 (*ractice >e#elopment 6etwor)

• Manage documents

• Core nowledge o$ eac% practice

• K8> (Knowledge 8esource >irectory)

• List o$ all -rm e1perts and ey documents

• ,or internal use

• upport >ecision Maing


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$anage$ent a##roach tostrategy


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Advantages o* 5echnology

• tocs o$ nowledge

• ,lows o$ nowledge• Knowledge management

e0ciency

• 'er new possiilities to t%eKM processes

• %ig%er capacity data storage

• nowledge engineeringapproac%es

• computeraided >

• trategic decisionsupport sy

• ? set o$ adeuate cominatio

speciali+ed so$tware and %ar

• E1plicitly to lin strategy! no

and per$ormance in order to t%e proaility o$ adding #alu

• 6eeded lins etween t%e str

and w%at t%eir intelligent age

need to now! s%are and learoperate during t%e strategy

implementation


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5hank you

mckinsey sag

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