Case Chapter 5, McKinsey - McKinsey & Company: Managing...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
McKinsey & Company: Managing Knowledge and Learning The Founder`s Legacy - founded in 1926 by University of Chicago professor, James McKinsey, the firm of “accounting and engineering advisors” that bore his name grew rapidly - “undeviating sequence” of analysis- goals, strategy, policies, organization, facilities, procedures, and personnel- while still encouraging them to synthesize data and think for themselves - 1932: Mac recruited Marvin Bower, a bright young lawyer with Harvard MBA upgrade the firm`s image in an industry typically regarded as “efficiency experts” or “business doctors” - 1937: in a memo, he outlineed his vision for the firm as one focused on issues of importance to top-level management, adhering to the highest standards of integrity, professional ethics, and technical excellence, able to attract and devolop young men of outstanding qualifications, and committed to continually raising its stature and influence - 1945: New Engagement Guide: articulated a polica that every assignment should bring the firm something more than revenu- experience or prestige, f.e. - Elected Managing Partner in 1950 turned McKinsey into an elite consulting firm unable to meet the demand for its service A Decade of Doubt - McKinsey`s growth engine seemed to stall due to: economic turmoil of the oil crisis, the slowing of the divisionalization process, growing sophistication of client management, and the appearance of new focused competitors like BCG internal self-confidence and even self-satisfaction began to turn to self-doubt and self- criticism Commission on Firm Aims and Goals - in 1971 they concluded that the firm had been growing too fast McKinsey had been too willing to accept routine assignments from marginal clients, that the quality of work done was uneven, and that while its consultants were excellent generalist problem solvers, the often lacked the deep industry knowledge or the substantive specialized expertise that clients were demanding growth would have to be slowed and that the associate to MGM ratio be reduced from 7 to 1 back to 5 or 6 to 1 Practice Development Initiative:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
- committee began debating the need to formally update the firm`s long-standing mission to reflect the firm`s core commitment not only to serving its clients but also to developing its consultants - structural changes were necessary created industry-based Clientele Sectors in consumer produts, banking, industrial goods, insurance. ., cutting across the geographic offices that remained the primary organizational entity - also encouraged more formal development of the firm`s functional expertise in areas like strategy, organization and operations where knowledge and experience were
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/11/2011 for the course ECON 202 taught by Professor Sneijder during the Fall '10 term at Erusmus University Rotterdam .

Page1 / 5

Case Chapter 5, McKinsey - McKinsey & Company: Managing...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online