1. Managing Knowledge and Learning
McKinsey & Co.
Managing Knowledge and Learning

2. Mckinsey- Accounting and Engineering Advisors 1962
James (Mac) Mckinsey, University of Chicago professor
General Survey Outline - Undeviating sequence of analysis
Goals
Strategy
Policies
Organization
Facilities
Procedures
Personnel
Encouraged the to think for themselves

3. Marvin Bower Young lawyer w/ Harvard MBA
Upgraded the firm’s image to “efficiency experts” or “business doctors”
Vision
Focus on issues important to top-level mgmt
High standards of integrity, professional ethics, and technical experience, able attract and develop men of outstanding qualifications and committed to raising its stature and influence
Serve its clients superbly well
ONE FIRM policy
Required all consultants to be recruited and advanced on a firm wide basis
Clients to be treated as responsibilities
Profits to be shared from a firm pool
Every assignment should bring more than revenue – experience/prestige

4. Decade of Doubt
1970s, growth began to stall and the conclusion was the company has been growing too fast
Associate to MGM ratio to be reduced from 7:1 to 5/6:1
Emphasis to be placed on the “T-shaped” consultants” – those who supplemented a broad generalist perspective with an in-depth industry or functional specialty

5. Ron Daniel Managing Director in 1976, Regional Manager for NY Office
Competitor BCG focused on “thought leadership” vs McKinsey’s “client relationship” focus.
BCG used experience curves and growth-share matrix
McKinsey had a generalist model
Debated on updating the firm’s commitment to serving its clients and developing its consultants
Created industry-based Clientele Sectors
* Consumer products * Banking
*Industrial Goods * Insurance * etc.
Development of firm’s functional expertise where knowledge and information was diffused and minimally codified
Strategy
Organization
Operations
Strategy created concern as was
Product focus vs customer focused
“Fly in Fly out”
Leveraged Company Expertise
Assemble working groups to develop knowledge in two areas: strategy and organization
3 day meetings to share ideas and develop an agenda for the strategy practice
2nd group was brought together to articulate the firm’s existing knowledge in the organization arena.
1980s, growth resumed with a cautious optimism

6. Revival and Renewal Centers of Competence
Virtual Centers
Knowledge development had to be a core activity, ongoing, institutionalized, responsibility of everyone
Changed internal hierarchy
“Snowballing”
Building a Knowledge Infrastructure
Firm refocused on individual consultant training
Centers of Competence began generating new insights, and many began to feel the need to capture and leverage learning
Non-packaged ideas 1978 launched the McKinsey Staff Paper series. (capturing internal developed knowledge)

7. Knowledge Management
1987, Fred Gluck (managed the super group) launched a Knowledge Management Project. 3 recommendations were made:
Firm had to make a major commitment to build a common database of knowledge accumulated from client work
Ensure databases were maintained and used. Hire fulltime practice coordinator.
Firm expand its hiring practices and promotion policies to create a career path for deep functional specialist “I” vs “T” shaped

8. Bill Matassoni Firm’s Director of Communications
Brook Manville, Yale Ph.D teamed to implement Knowledge Management
First focused on FPIS, Firm Practice Information System
Installed new systems and procedures to make data more complete, accurate, and timely, not just an archival record
Practice Development Network(PDNet)
Knowledge Resource Directory (KRD) Assembled a listing of all firm experts and key document titles by practice area and published it in a small book.
Reflection: the infrastructure changes was not to create a new McKinsey, as to keep the old”one firm” concept as they grew

9. Managing Success Clientele and Professional Development Committee
Objective of replacing the leader-driven knowledge creation and dissemination process with a “steward model” of self-governing practices focused on competence building.
Engagement Team
Assembled to deliver a three or four month assignment for a client
Highly efficient and Flexible unit
Focused on immediate task rather than long term need
Client Service Team
Add long term value
Increase the effectiveness of individual engagements
Develop Multiple Career Paths

10. Congruence Model Executive Leadership Competencies Component Tasks
Demography
Group Process
Component Tasks
Work Flows/Processes
Strategic Choices
Strategy
Objectives
Vision

11. Jeff Peters and Sydney Assignment
Challenges
Industry expertise “conflicted out”
Resources were unavailable due to timing in Australia
Resolved
20% of consultant hired for project were inter-office loans
Internal specialists were assembled to consult the team
Utilized the KRD, FPIS, and PDNet resources

12. Warwick Bray and European Telecoms
Warwick Bray was an “I” specialist and was overwhelmed by demands for help
Leveraged the practice coordinator, creating development and growth.
Practice Development documentation is created by individuals associates who would step back after several engagements and write a paper on their new insights.
It was a new generation of practice leadership
Attract the best associates
Developed a consistent pool of specialists

13. Stephen Dull Turn that frown upside down
Mckinsey focused on client personal relationships, whereas Dull was more focused on industrial marketing
This led to Dull focusing on a B to B strategy
GDL decided that 20-25% should be functioning experts
Dull’s new center was successful and had new options available to him
Writing a book
Enhance internal credibility and external visibility

14. Rajat Gupta
Capitalize on the firm’s long term investment in practice development
FPIS
PDNet
Practice Olympics
Experiment began in German Office
2-6 teams from office around the world were encouraged to develop ideas that grew out of recent client engagements and formulize them for presentation at a regional competition
6 Special Intiatives-led by senior partners, focused on emerging issues
Internal and External Expertise to develop “state of the art” formulations of each key issue.
Focused on the shape and function of the corporation of the future
Creating and managing strategic growth
Capturing global opportunities