McKinsey & Company

McKinsey & CompanyManaging knowledge and learningGroup 11:Radha NarayananNirmalApurv MishraAnkit SachdevaManisha

Case overviewMckinsey: A multinational management consulting firm that was founded by James Mckinsey in 1926 as accounting & engineering advisors for business. The strong leadership over the years under different, capable people have evolved the firm over the yearsHow strategy was built around knowledge & learning as the key differentiator over the years

Marvin Bower (1932-1967)Reshaped the firms reputation as efficiency experts or business doctorsIntroduced the One Firm policy & upgraded size and quality of the clientsBelieved in well trained generalists approach to analysis & problem solvingChallenges to McKinsey:Economic TurmoilNo in-depth industry knowledgeNew focused competition like BCG (BCG Matrix, experience curve, etc)

Ron Daniel (1976 1988)Recruited the first full time director of trainingCommitted to develop consultants expertise & serve clients (expanded objective)Structural changes- T shaped matrix Industry based clientele sectorMoe focus on gaining expertise in strategy & organisationKnowledge building primary agendaBrought in Fred Gluck & gave him autonomy to create a culture of peer learning

Fred Gluck (pre MD period)He wanted to institutionalize knowledge development and make it an on-going processHe developed the 15 Centers of Competence. The goal was to Develop expertise + Improve firms intellectual resourcesPractice development was as important as client developmentBuilding a knowledge infrastructure :McKinsey Staff paper series -1978. Very few took the effortsPractice bulletins 2 page summaries on key learningsHired full time coordinators for each practice areaCreated a career path for functional specialists (I shaped)

Fred Gluck (1988 1994)Created tools for institutionalized learning FPIS (Firm Practice Information Network) database of all clients on computerPDNet (Practice Development Network) bring knowledge in practice on paperKRD (Knowledge Resource Directory) compact & accessible informationAfter he became MD, he started working on taking Knowledge Management to the next levelChange in approach: Discover-Codify-Disseminate to Engage-Explore-Apply-Share

Fred Gluck (1988 1994)Shift in focus: Building knowledge to Building individual & team capabilityBetter client impact key consulting unit changed from engagement team (ET) to Client Service Team (CST). Client exposed to a group of partners instead of just one.Long term goals in placeDevelopment of multiple career paths CSS & CSSA

Rajat Gupta (1994 2003)Introduced four pronged strategyNew channels & forums created for knowledge development. Eg: Practice Olympics -> Competitions at various levels to showcase new ideas. Attracted atleast 15% of the associatesLate 1995 6 special initiatives were launched that involved internal & external emerging issues important to CEOsMckinsey Global Institute : a firm sponsored R&D unit to study global economy and its effect on business

Future of MckinseyChallenges that the company is likely to encounter:Company cant keep disintegrating to serve niches. The employee base has to find the company exciting to work for and congenial environment to innovate. Aggressive learning & development agendaOver dependence on technology could erode the prime culture at McKinsey - people are important and personal networks matterThe extensive knowledge system and PD network could condition associates to seek frameworks from the past instead of innovation

Key learningsKnowledge was identified as the core differentiator. Hence extensive funds were invested at the right time to develop the right capability. This made it a sustainable advantage over a longer periodAn organization has to be people centric especially if its core competency is knowledgeKnowledge management practices were rolled out from a centralized global unit to ensure it evolved with time and uniformly implemented in all geographies.