BackgroundMcKinsey & CompanyIs an international management consulting firm. A trusted advisor and counsellor to many of the world's most influential businesses and institutions.2
McKinsey’sMissionand Guiding Principles (1996)Mission – To help clients make positive, lasting and substantial improvements in their performance and to build a great Firm that is able to attract, develop, excite and retain exceptional people3
McKinsey’sMission and Guiding Principles (1996)Serving Clients•Adhere to professional standard•Follow the top management approach•Assist the client in implementation and capability building•Perform consulting in a Building the Firm▪Operate as one Firm▪Maintain a meritocracy▪Show a genuine concern for our people▪Foster an open and nonhierarchical working atmosphere▪Manage the Firm’s resources Being a Member of the Professional Staf▪Demonstrate commitment to client service▪Strive continuously for superior quality▪Advance the state of the art management▪Contribute a spirit of partnership through teamwork and collaboration▪Profit from the freedom and assume the responsibility associated with self governance▪Uphold the obligation to dissent4
1. Founders’ LegacyHow it all started5
How it all startedIn 1926, University of Chicago professor – James (“Mac”) McKinsey created McKinsey as an “accounting and engineering advisors” company.▪McKinsey grew rapidly as Mac recruits experienced executives▪Mac trained them in an integrated approach called “General Survey” outline6
James O. McKinsey (“Mac”)Mac often lead consultants to his “undeviating sequence” of analysis involving:-Goals- Policies- Strategy- Procedures- Facilities- Personnel- OrganizationHe encourages people to synthesize data and think for themselves.7??
Founders’ LegacyIn 1932, Mac recruited Marvin Bower – young lawyer with Harvard MBA.▪1933, Bower became manager of the recently developed New York office▪In an industry that is typically regarded as “business doctors”, Bower believed that management consulting should be held to the same high standards for professional conduct and performance as law and medicine8
Marvin Bower1950 – Elected managing partner1959 – First international office (London)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 - Ex: experience 9??
2. A Decade of DoubtWhere new threats emerge
A Decade of Doubt11Boston Consulting GroupOil CrisisEuropean Market ExpansionThere was a slowing of the divitionalization process which fueled McKinsey’s European expansion.