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Organizational Learningand
Knowledge ManagementSubject:
Professor :
Organizational Design & Change
Prof. A. K. Jain
Group 8:
Aditi Wahi – !P"## $ama%sh Chhara – !P"'
Kesha( )a*a* – !P"+" $an*eet Math,r – !P"#
P,sh%ar $ingh – !P"" -an(in $ingh – !P'
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Agenda
Summary McKinsey & Company Case
Knowledge Management Teory
McKinsey & Company Knowledge Management
!"aluation and #utloo$/
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0 McKinsey & Company was founded under the name James O.
McKinsey & Company in 1926 by James McKinsey, a professor ofaccountin at the !ni"ersity of Chicao
0 #tarted out as an $accountin and manaement firm%, ater
became in to a oba ma'or in consutin
0 Commission on firm (ims and )oas*0 ( +ecade of +oubt
0 Commission
http://en.wikipedia.org/wiki/James_McKinseyhttp://en.wikipedia.org/wiki/University_of_Chicagohttp://en.wikipedia.org/wiki/University_of_Chicagohttp://en.wikipedia.org/wiki/University_of_Chicagohttp://en.wikipedia.org/wiki/University_of_Chicagohttp://en.wikipedia.org/wiki/University_of_Chicagohttp://en.wikipedia.org/wiki/University_of_Chicagohttp://en.wikipedia.org/wiki/James_McKinseyhttp://en.wikipedia.org/wiki/James_McKinsey
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on+anie
-red)uc
/1906 /1934
5ed a/19914
0 (ppointed McKinsey7s first fu time director for trainin
0 8ndustry4based cientee sectors
Consumer products, banin, insurance etc.
0 +e"eop nowede in two areas stratey and orani:ation
0 Knowede buidin aenda
)uc 'oined in 193
1; centers of competence
0
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on+anie
/19064
-red)uc
/1934
5ed a/19914
=acround
(rri"ed from =e
>abs in 1960.?anted to brin an
e@uay stimuatinen"ironment
(sed by on+anie to 'oin a
sma roupin"o"ed with
Knowede buidinaenda in 193
Centers ofCompetence
Created 1; centers /"irtua of
Competence.
5he roe is two4fod. epde"eop consutants and ensure
continued renewa of firm7sinteectua resources
8dentified hihy moti"ated andreconi:ed eAperts in each fied
and named them Bractice>eaders
Knowede8nfrastructure)uc aunched a KnowedeManaement Bro'ect in 190.
5hree recommendations*1. Common
database ofnowede
2. +atabases weremaintained andused
. +e"eop 84shaped consutants
=i Matassoni was made in chareof impementin the
recommendations. e de"eopedand aunched
B+
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D
efininKnowedeManaementa too o"er eadership
of Cientee andBrofessiona +e"eopmentCommittee /CB+C in 1991
Oriina 11 sectors and 1;centers eApanded to 02
isands of acti"ity
CB+C bean interatin
the di"erse roups intose"en sectors and se"enfunctionaity roups.
5hese were ed by teamsof ;40 partners
Cient 8mpact
)uc now focused his
attentions on Cient8mpact and made it acentra theme in hiseary speeches. (so
created a Cient 8mpactCommittee.
One of the initiati"eswas to persuade the
partners to redefinetheir consutin unitfrom Enaement 5eam/E5 to Cient #er"ice
5eam /C#5
on+anie/1906
-red)uc
/1934
5ed a/19914
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Jef PetersandSydney Oce0 Invited to bid or a nancial services growth strategy study or
one o Australia’s most resected comanies!0 Almost all with nancial industry e"ertise had been #con$icted
out%
0 Jef Peters& a 'oston(based senior engagement artner wasidentied ater some lobbying and numerous hone calls
In site o numerous constraints and limited availability& the ro)ectwas comleted successully& than*s to +,- and P-.et which had/0&111 documents
2eavy reliance on internal e"ertise revented them to come u with aradical brea*through
One FirmStrategy
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3arwic* 'ray 4 5uroean 6elecoms
0 3or*ed on engagements related to the imact on
deregulation on the Asia( Pacic telecom industry!0 7rom his e"erience& 'ray has written a P- document and
resented it at the rm’s annual telecom conerence
0 Patsalos(7o" identied 'ray’s *nowledge and invited 'rayto wor* with him on a study!
6he P-.et was crucial in'ray being identied andgiven a osition that isbenecial to both the
comany and himsel! 6he *nowledge reository wasnot suciently addressing allthe concerns and thus a newractice(secic intranet lin*was develoed! In addition tothe P-.et and +,-& it also hade"ternal *nowledge resourcesand client base!
Departmentalization
B l b
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Stehen -ull 4'usiness 8ar*eting9ometence 9enter
0 -ull ocused on
develoing his owne"ertise & however heac*nowledged that hedid not ay enoughattention todeveloing strongclient relations!
0 Interested in
develoing ' to 'initiative& which waslater declared a centero cometence0 6he rm within thene"t :(; years wantto ma*e /:(01< asunctional e"erts&highlighting the
imortance o domaine"erts0 2is lac* o client servicerestricted his romotion toa rincial as servingclients is what reallymattered in the rm
Balance betweenKnowledge andClient Service
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A unique source of competitive advantage
0 5he BeopeF
0 McKinsey recruitin and trainin stratey
0 EAperiences eAecuti"es
0 5he enera sur"ey outine
0 =ower refined and de"eoped the %One firmG stratey0 ecruitin into the firm, and not the office
0 Made nowede transfer throuh the mobiity of peope
0 Beope and profits are firm wide resources and not specific to one specific
office of indi"idua
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% ' (s )*AM!+#*K
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ST,-!
$in1e its in1e2tion M1Kinse3 had se(eral leaders ,t all of them fo1,sed on ser(ing the 1lients (er3
well
James M1Kinse3 fo1,sed on training as well s3nthesizing data & inde2endent thin%ing Mar(in )ower ro,ght ,2 one form 2oli13 with fo1,s on geogra2hi1 e42ansion
5on Daniel fo1,sed on tho,ght leadershi2
6red 7l,1% de(elo2ed 1om2eten1e se1tors
5a*at 7,2ta 1arried on with %nowledge de(elo2ment.
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STA))
M1%inse3 started with hiring e42erien1ed e4e1,ti(es and training them in an integrated a22roa1h
t aimed at attra1ting 3o,ng men of o,tstanding 8,alifi1ation to t,rn them into well trained 9highl3
intelligent generalists who 1o,ld 8,i1%l3 gras2 the sit,ation.-ill earl3 ;"
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SK.--
Pre=:#"9 highl3 intelligent generalists who 8,i1%l3 fo,nd sol,tion thro,gh dis1i2lined anal3sis
:;"s – 7eneralist 1ons,ltants with one ind,str3>f,n1tional s2e1ialt3
::"s – en(ironment for dee2 f,n1tional s2e1ialists
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ST*AT!G,
n its earl3 da3s M1%inse3 had a (ision to fo1,s on iss,es of im2ortan1e to to2 management while
adhering to highest standards of integrit3 92rofessional ethi1s and te1hni1al e41ellen1e.
-his entailed a generalist a22roa1h to 1lient iss,es$in1e ;" ,nder the leadershi2 of 5on Daniel this model of 1lient relationshi2 was 1hanged to
tho,ght leadershi2 whi1h led to 1reation of ind,str3 ased 1lientele se1tor as well the de(elo2ment
of 2ra1ti1e se1tors.
Moreo(er em2hasis was laid on indi(id,al 1ons,ltant training with a renewed fo1,s on %nowledge
de(elo2ment and organization learning
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ST*/CT/*!
M1%inse3 started with a One 6irm Poli13 where it re8,ired all 1ons,ltants to e re1r,ited and
ad(an1ed on firm wide asis
-he 1ons,ltants 1o,ld mo(e a1ross offi1es and 1ollaorate with offi1es in other lo1ations-ill ;" the firm followed a 1lient relationshi2 model of 1ons,lting where em2hasis was on lo1al
offi1e 2resen1e whi1h allowed 2artner to ha(e strong 1onne1tion with ,siness 1omm,nit3
n ;# 5on Daniel 1hanged this str,1t,re where he 1reated ind,str3 ased 1lientele se1tors 1,tting
a1ross geogra2hi1al offi1es
6,rther it led to de(elo2ment of ! 1om2eten1e se1tor s,1h as management9strateg39mar%eting
n nineties 9the 1ons,lting ,nit i.e. an engagement team was 1hanged into 1lient ser(i1e team so as
to ser(e a 1lient for a longer horizon.
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S,ST!M
A 2ra1ti1e de(elo2ment networ% was in 2la1e whi1h held do1,ments from that re2resented 1ore
%nowledge from ea1h 2ra1ti1e
A %nowledge reso,r1e dire1tor3 listing all firms e42erts with %e3 do1,ments titles was also 2,lished.With assistan1e of an engagement dire1tor as well as leads from K5D9 -?@ 6P$ and the PDet 9
new teams were ,ilt.
orms were in2la1e whi1h made it mandator3 for 1olleag,es to res2ond to re8,ests
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S0A*!1 2!-.!)S
-he mission of ser(ing the 1lients s,2erl3 well was one of the 1ore eliefs of m1%inse3 while
adhering to 2rofession standards
Peo2le de(elo2ment was another fo1,s area so as to ,ild a world 1lass instit,tion that is ale toattra1t 9de(elo2 and retain e41e2tional 2eo2le
-he em2hasis to in(est in for the f,t,re of the firm was another the f,ndamental (al,e of the firm.
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%3 4 /5.%/! S#/*C! #) C#MP!T.T.6! A16A5TAG!
@42erien1ed e4e1,ti(es trained in generalized wa3 of anal3sis while 2ro(iding 1reati(e sol,tions
)eing (er3 sele1ti(e ao,t the 1lients led to 8,i1% growth in stat,re and e42erien1e
-he B1lient relationshi2 model of 1ons,lting ga(e it a distin1ti(e ad(antage wherein the 2artners wereale to de(elo2 strong 1onne1tions with the lo1al ,siness 1omm,nit3 .
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%7 ' !))!CT.6!5!SS #) C0A5G! P*#C!SS
CASE I – FINANCIAL INSTITUTION (SYDNEY):sage of 2ersonal networ%s to identif3 1ons,ltants with rele(ant e42erien1e
$3dne3 offi1e had onl3 generalists
@42erts9 s2e1ialists and ad(isors a1ross the gloal M1%inse3 offi1es wor%ed on
the 2ro*e1t
O(er relian1e on internal e42ertise and intro(ersion with no s1o2e for 1reati(it3
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01
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%7 ' !))!CT.6!5!SS #) C0A5G! P*#C!SS
CASE II – TELECOM INDUSTRY CENTRE:
Created new tele1om intranet
PDet 2ro(ed ins,ffi1ient to the re8,irements
6,rther de(iated from BOne 6irm 2oli13
Knowledge transfer restri1ted within ind,str3 s2e1ifi1 1entres
nder ,tilization of f,n1tional gro,2s
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0/
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%7 ' !))!CT.6!5!SS #) C0A5G! P*#C!SS
CASE III – BUSINESS MARKETING CENTER OF COMPETENCE:
$2e1ialists regarded as Bse1ond=1lass 1itizens
o indi(id,al forth1oming to 1ontri,te to PDet
7ro,2 of 2eo2le too% initiati(e to 1onsolidate )E) mar%eting do1,ments
6ail,re of 1odifi1ation of %nowledge at all le(els
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00
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% ' *A9AT G/PTA:s APP*#AC0
Contin,e em2hasis on %nowledge de(elo2ment
P,rs,e all o2tions of %nowledge de(elo2ment a22roa1h
Ca2italize on the firm/?>/?
0=
- CODIFICATION
! "
S O NA
# I $A T
I O N
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% 4 *!C#MM!51AT.#5S
Com2etiti(e $trateg3 m,st dri(e %nowledge management strateg3
)ased on M1Kinse3/?
0@
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*ajat Gupta:s ;)our Pronged: approac
• Ca2italize on the firm
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Analysis of te Approac
.nformation Saring and Corporate /nity "s< Cost4!ffecti"eness
• Des2ite its ra2id growth9 M1Kinse3 & Com2an3 is attem2ting to maintain its BOne 6irm 2oli13
• -ho,gh the 1om2an3 is di(ided into 1lientele se1tors9 1enters of 1om2eten1e9 and generalists and
s2e1ialists9 the 2hiloso2h3 of ,nit3 ens,res that %nowledge reso,r1es are 1ontin,all3 distri,ted
a1ross these se1tors.
• 7,2ta sho,ld not 2,rs,e %nowledge sharing witho,t a thoro,gh e(al,ation of its 1osts and
enefits
• nformation sharing tho,gh is of ,tmost im2ortan1e9 it
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Customer and #ter Sta$eolder )ocus
• 7,2ta
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Gupta:s Callenge and +ay forward
•-o g,arantee that his fo,r=2ronged 2lan rings s,11ess to his 1om2an39 5a*at 7,2ta m,st e s,rethat information sharing is alwa3s a11om2anied 3 tangile enefits.
• -his ma3 ne1essitate some strategi1 se2aration of de2artments9 a de2art,re from M1Kinse3
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%uestions