Monday, February 25, 2019

Mckinsey & Co. Managing Knowledge and Learning

Michelle Abbott Professor Jon gobble up December 10, 2002 Written Case Analysis McKinsey & Company Managing Knowledge and acquire Evaluating Guptas Four Pronged Plan Rajat Gupta has recently inherited a fast-growing consulting firm with a strong fellowship base and a competitive market position.In dictate to en sure enough the future success of McKinsey & Company, however, Gupta faces a number of ch everyenges he must provide outstanding services to an progressively sophisticated clientele, offer his employees ongoing education and upwardly mobile charge paths, continually enhance McKinseys reputation as a attraction in the consulting field, and, perhaps most signifi flow the sacktly, continue to leverage his go withs acquaintance base across divisions while still applying the unity and sticky corporate culture that have always been important to McKinsey.Gupta seems determined to watch over familiarity as the confederations key line of reasoning driver. Accordingly, h is four-pronged computer chopine includes an emphasis on practice development and organizational learning, an annual program called the Practice Olympics, six special initiatives foc utilise on emerging issues, and the refinement of McKinseys research institute. But can Gupta successfully tend to all of these initiatives at once without fragmenting the community? And are there critical business areas that he overlooks with this approach? reservoir The St. Martins Handbook, 5th edition, by Andrea A. Lunsford (Bedford/St.Martins, 2003) 1 development Sharing & Corporate Unity vs. Cost-Effectiveness Despite its rapid growth, McKinsey & Company is attempting to maintain its unity Firm policy in which responsibilities and profits are divided up throughout the company rather than solely within offices. Though the company is divided into clientele sectors, centers of competence, and generalists and specialists, the philosophy of unity ensures that knowledge resources are continually distributed across these sectors. Considerable effort has been invested in an culture infrastucture intended to hone this sharing of resources.Guptas four-pronged plan is designed to further emphasize knowledge sharing in a variety of forums. Gupta should not pursue knowledge sharing without a thorough military rank of its costs and benefits, however, as intumesce as on the alert discussion about how knowledge sharing can be implemented most efficiently. While instruction sharing in an industry such as consulting is of utmost importance, it is an expensive practice. Each clipping discipline is documented and shared throughout the company through some(prenominal) medium costs are incurred, both in labor hours and clobber resources.There must be a comparable, tangible benefit to sharing information namely, the knowledge must be usable to the recipient. If the knowledge is not uncommitted to the recipient, sharing it is probably not costeffective. Additionally, Gupta migh t also reexamine McKinseys commitment to unity in terms of cost-effectiveness. Is it efficient, in other words, to assert on continually sharing knowledge and information resources throughout the firm, or would it be wiser to simply allow some of the fragmentation that is occurring naturally as the company grows and diversifies?As the centers of competence and clientele sectors develop, perhaps some root word The St. Martins Handbook, 5th edition, by Andrea A. Lunsford (Bedford/St. Martins, 2003) 2 would be more efficiently take on as autonomous sub-units or even spin-off companies. With good strategy, these sub-units and spin-off companies might even still be able to optimize the upraise companys resources, including McKinseys impressive reputation and clientele base. node and Other Stakeholder Focus Guptas four-pronged plan may also be overlooking customer and market focus.Though benefit to the customer is implicit in his plan for the advancement and sharing of McKinseys inf ormation resources (i. e. , better knowledge ultimately benefits the client), the customer is not explicitly addressed in the agenda. Guptas plan might benefit from a more blanket(prenominal) evaluation of customer need. For example, some clients might value not only fashionable information, but affordable rates, information that is sustainable in the long-term, and friendly, helpful, available onsultants who office staff a premium on customer satisfaction. Indeed, a business that fails, at any stage of strategic planning, to carefully consider customer needs is bound to lose customers in the long run. Similarly, the needs of other stakeholders be consideration and inclusion in Guptas plan. Those with equity in the company will fatality to see that Guptas emphasis on information sharing enhances the firms bottom line. Company employees will want to see that Guptas plan opens opportunities for continuing education and career promotion.Indeed, a clear career development and succ ession plan will give employees additional incentive to participate in Guptas initiatives, such as the Practice Olympics in which employees present innovative ideas that have brought them success to a panel of senior executives. Source The St. Martins Handbook, 5th edition, by Andrea A. Lunsford (Bedford/St. Martins, 2003) 3 Guptas Challenge Guptas commitment to a corporate atmosphere that set organizational learning is likely to keep McKinsey & Company at the heading of the consulting industry.In order to guarantee that his four-pronged plan brings success to his company, however, McKinsey must be sure that information sharing is always accompanied by tangible benefits. Where information sharing fails to be useful and therefore costeffective, it should not be lease otherwise, Gupta risks jeopardizing his firms positive attitude toward organizational learning. This may necessitate some strategic separation of departments, a departure from McKinseys One Firm policy.Furthermore, Gupta must ensure that knowledge sharing within the company takes place through a variety of mediums, including traditional face-to-face interactions such as the Practice Olympics and the practice development. Technology should also be used toward this end group support software systems, for instance, may provide a cost-effective and efficient way to share information across departments. Finally, Gupta should be sure that his approach to moving the organization forward includes a comprehensive evaluation of all the stakeholders interests in the firm.Cutting-edge knowledge should not be engage at all costs. Rather, it should be pursued to the degree that it contributes a lowest benefit to the company, the companys employees, and the companys customers. A great emphasis on the customer as well as careful analysis of all stakeholders interests will be necessary in order for McKinsey & Company to continue to attract high-potential employees and a profitable clientele. Source The St. Martins Handbook, 5th edition, by Andrea A. Lunsford (Bedford/St. Martins, 2003) 4

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