McKinsey and the Globalization of Consultancy - Mind

McKinsey and the Globalization of Consultancy

by :

ACHMAD WIBOWO ( 0600673186 )

ERIK SEBASTIAN ( 0600611055 )

JULBINTOR KEMBAREN ( 0300467420 )

McKinsey and the Globalization of Consultancy

by :ACHMAD WIBOWO ( 0600673186 )

ERIK SEBASTIAN ( 0600611055 )JULBINTOR KEMBAREN ( 0300467420 )

A History of Mckinsey• When James O. McKinsey founded McKinsey in 1926, he could not

have imagined the reach his small firm would eventually have. More than 75 years later, the firm has grown into a global partnership serving three of the world's five largest companies and two-thirds of the Fortune 1000.

• McKinsey already had an established practice in budgeting and finance when he decided to test his theory that so-called "management engineers" could go beyond rescuing sick companies to helping healthy companies thrive and grow. His vision opened the door to others who shaped a new profession as they built one of the world's best-known professional services firms.

• And through the years, his original mission has remained the same (with a little rewording from decade to decade): to help clients make distinctive, lasting, and substantial improvements in their performance and to build a great firm that is able to attract, develop, excite, and retain exceptional people.

Marvin Bower core principles• Client interests must be placed before those of the firm. • Engagements should only be undertaken when the value to

the client was expected to exceed the firm's fees. • The firm's ownership should be restricted to active partners. • Firm members must be professionals trained and motivated

to do outstanding work and make a permanent career with the firm.

What Mckinsey do…and how they do it• Follow the top management approach.• Using they global network to deliver the best

of the firm to all clients.• Bring innovations in management practice to

clients.• Build client capabilities to sustain

improvement.• Build enduring relationships based on trust

US Offices

International Offices

Current Situation• McKinsey is one of the biggest consulting companies in the

world and is famous for his knowledge and the focus was on knowledge development next to serving its customers.

• With more than 80 locations around the world, McKinsey is a global firm with no central office. They operate under a 'One Firm' principle where each location, while maintaining its unique local characteristics, adheres to the values and principles that unite them no matter what their cultures and nationalities are.

McKinsey Challenge

EXPANDENHANCED

EXIT

Going GlobalStrengthStrength WeaknessWeakness OpportunityOpportunity ThreatsThreats

Human RecourcesHuman Recources

“McKinsey Way”“McKinsey Way”

Distributed managementDistributed management

More client, more moneyMore client, more money

World Brand RecognitionWorld Brand Recognition

Risen of competitorsRisen of competitors

Well structuredWell structured

The Road Map

Inside McKinsey

KNOWLEDGE MANAGEMENT

IntuitionIntuition

DataData1

3

2

Mckinsey MindBasic Problem Solving Process

Mckinsey MindEnchanced Problem Solving Process

IntuitionIntuition

DataData1

3

2

Business Need• Competitive• Organizational• Financial• Operational

Analyzing• Framing– Dividing case into structure• The way MCKinsey consultants apply structure to their

business problems :– Feel free to be MECE (Mutually Exclusive, Collectively

Exhaustive)– Don’t reinvent the wheel– Every client is unique

• Suitability and adaptability of structured thinking– Without sructures your idea will not stand up– Use strucuture to strengthen your thinking and trigger ideas.

Analyzing– Forming a hypotesis• Using hypotheses by reccaping the relevant principles

espoused by Mckinsey :» Solve problem at first meeting» Proper prior preparation» In a white room» The problem is not always the problem

• Initial hypotesis will :» save your time » make your decision making more effective

Analyzing• Designing– Guidelines to plot anlytical courses• Find the key drivers• Look at the big pictures• Don’t boil the ocean• Sometimes you have to let the solution come to you

Analyzing– Four lessons to speed up decision making :• Let your hipotesis determine your analysis• Get your analytical policies right• Forget about absolute precission• Triangulate around the though problem

Analyzing• Gathering– Gathering necessary data to perform the analysis

by doing research and interview.• Research

– MCKinsey’s principle for research :» Facts are friendly» Don’t accept no idea» Specific research tips

Analyzing– Three ways to get research done:

» Diagnose the data orientation of your organization» Demonstrate the power of good facts» Build the proper infrastructure

• interviewing– Inerviewing is part of every MCKinsey engagement, it can

generates primary data, and identify great sources of secondary data.

Analyzing– How MCKinsey interview :

» Be prepared: write an interview guids» When conducting interviews, listen and guide» Obey the seven tips :1. Have the iterviewee’s boss setup the meeting2. Interview in pairs3. Listen, don’t lead4. Paraphrase, paraphrase, paraphrase5. Use indirect approach6. Don’t ask too much7. Adopt the Columbo tactic8. Don’t leave the interviewed naked9. Always write thank you note

Analyzing• Interpreting

– Figuring things out, drawing conclusions from analysis and turn it into recomendation to clients.

– Analysis interpretation:» Understanding the data, Piecing together the story of the

data » Generating the end product, Assembling the findings into

an externally directed end product: a course of action for your organization or client.

Presenting• Structure– Structure d presentations, MCKinsey emphasizes

organization and simplicity.• Be structured• The elevator test• Keep it simple- one message per chart

Presenting• Buy-in– A presentation is only a tool, in the end of the

objectives for the audience are having them to buy in the ideas. Prewire everyting , Avoid Surprises, Tailor your persentation to your audience.

Managing• Team– Four major elements of MCKinsey team

management : team selection, internal communication, bonding activities and individual development.

• Client– Identifying, knowing who were we dealing with.

Three areas of client management: obtaining, maintaining, retaining.

Managing• Self– Maintaining self management, respect, adapt,

help and improvement.

Intuition & DataHaving all relevant facts before reaching a decision is practically impossible. Therefore, executives make business decision based partly on facts and partly on intuition-gut instinct tempered by experience.

Implementation• Dedication• Reaction• Completion• Iteration

Leadership• Vision• Inspiration• Delegation

Mckinsey MindEnchanced Problem Solving Process

IntuitionIntuition

DataData1

3

2