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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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4ompetitive advantage6Kinsights
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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4ompetitive advantage6Kinsights
%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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4ompetitive advantage6Kinsights
• ,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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4ompetitive advantage6Kinsights
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