458.Paper.Peter Qu.AUT08

Themeritsofmckinseyisnotdueto

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Unformatted text preview: or
sending
its
consultants
to
the
top
 executive
positions
at
other
company.

McKinsey
alumni
include
Louis
V.
Gerstner
Jr‐
 former
chairman
and
CEO
of
IBM,
James
P.
Gorman
‐
Co‐President
of
Morgan
Stanley,
 Jeffrey
Skilling‐former
CEO
of
Enron
and
many
others
(McKinsey
&
Company,
2008).


 Consulting
Styles:
 There
are
fewnotable
differences
between
the
ways
McKinsey
solves
the
problem
in
 comparison
with
other
consulting
firms.

First,
a
structured
problem‐solving
process
is
 utilized
at
McKinsey.

The
McKinsey
process
has
six
discrete
elements:
business
need,
 analyzing,
presenting,
managing,
implementing
and
leadership
(Rasiel,
2001).


Second,
 when
faced
with
a
complex
problems,
McKinsey
consultants
often
break
up
the
problem
 into
smaller
MECE
(mutually
exclusive
collectively
exhaustive)
components
and
then
 organized
these
components
into
logic
tree
using
Acme
Widget
Business
System.

Third,
 McKinsey
team
utilizes
hypothesis‐based
analysis
to
understand
the
dynamics
of
a
 complex
problem.

As
a
team,
consultants
would
brainstorm
many
hypotheses
and
their
 corresponding
solutions.

Then
each
hypothesis
will
be
analyzed
against
known
facts
to
 either
substantiate
or
refute
the
hypothesis
(Rasiel,
2001).

The
McKinsey
consultants
 claimed
that
by
forming
the
initial
hypothesis,
they
could
speed
up
the
process
of
 understanding
the
problem
and
arrive
at
solution.

 Merits
and
De‐Merits:
 
 Due
to
McKinsey’s
long
client
rosters,
many
companies
chose
to
hire
McKinsey
 consultants
in
order
to
keep
up
with
their
competitors
who
have
already
been
advised
 by
McKinsey
consultants
(Newman,
2008).

The
merits
of
McKinsey
is
not
due
to
 “keeping
up
with
Joneses”
alone.

Many
companies
hire
McKinsey
consultants
in
order
 to
access
the
talent
pool
at
McKinsey,
since
McKinsey
is
known
for
hiring
the
best
 candidates
from
top
schools
(McKinsey
&
Company,
2008).
 McKinsey
also
derives
its
competitive
edge
from
its
intensive
investment
into
the
 knowledge
management
system.

Through
the
knowledge
management
system,
the
 McKinsey
consultants
can
receive
information
from
an
in‐house
team
of
researchers,
 industry‐specific
experts
and
librarians,
as
well
as
journal
and
database
access
 (McKinsey
&
Company,
2008).

Consultants
can
also
benefit
from
insights
from
prior
 client
engagements
from
the
internal
“practice
development”
documentations
 (McKinsey
&
Company,
2008).

 There
are
several
criticisms
toward
McKinsey
&
Company
as
well.

First
of
all,
McKinsey
 charges
a
very
high
fee
for
its
service.

Since
the
McKinsey
methodologies
have
been
 widely
published
in
business
literatures
and
adopted
by
many
smaller
consulting
firms,
 many
companies
found
it
difficult
to
justify
the
high
fee
(Newman,
2008).

Second,
there
 are
criticisms
to...
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This document was uploaded on 02/17/2014.

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