Mckinsey & Co. Managing Knowledge and Learning

Michelle Abbott prof Jon Down December 10, 2002 Written Case Analysis McKinsey & society Managing Knowledge and Learning Evaluating Guptas quadruple Pronged Plan Rajat Gupta has recently inherited a fast-growing consulting firm with a strong noesis base and a competitive market position.In order to ensure the future success of McKinsey & Company, however, Gupta faces a turn of ch allenges he must provide outstanding services to an increasingly sophisticated patronage, offer his employees ongoing education and upwardly mobile c beer paths, continually enhance McKinseys reputation as a drawing card in the consulting field, and, perhaps most significantly, continue to leverage his companys fellowship base crosswise divisions while hush up fight downing the unity and cohesive corporate culture that have always been important to McKinsey.Gupta seems driven to pursue knowledge as the companys key business driver. Accordingly, his four-pronged proposal includes an violence on pr actice development and organizational learning, an annual program called the Practice Olympics, six special initiatives focused on emerging issues, and the expansion of McKinseys research institute. But can Gupta successfully tend to all of these initiatives at once without fragmenting the company? And are there critical business areas that he overlooks with this approach? showtime The St. Martins Handbook, fifth edition, by Andrea A. Lunsford (Bedford/St.Martins, 2003) 1 Information Sharing & Corporate Unity vs. Cost-Effectiveness Despite its rapid growth, McKinsey & Company is attempting to maintain its One Firm policy in which responsibilities and profits are shared throughout the company kinda than solely within offices. Though the company is divided into championship 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 cultivation infrastucture intended to optimize this overlap of resources.Guptas four-pronged plan is designed to further emphasize knowledge communion in a variety of forums. Gupta should not pursue knowledge sharing without a thorough evaluation of its costs and benefits, however, as well as careful discussion about how knowledge sharing can be implemented most efficiently. enchantment information sharing in an industry much(prenominal) as consulting is of utmost importance, it is an expensive practice. Each eon information is documented and shared throughout the company through whatever medium costs are incurred, both in labor hours and material 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 useable to the recipient, sharing it is credibly not costeffective. Additionally, Gupta might also reexamine McKinseys perpetration to unity in terms of cost-effectivene ss. Is it efficient, in opposite words, to insist on continually sharing knowledge and information resources throughout the firm, or would it be wiser to simply allow many of the fragmentation that is occurring naturally as the company grows and diversifies?As the centers of competence and clientele sectors develop, perhaps some Source The St. Martins Handbook, 5th edition, by Andrea A. Lunsford (Bedford/St. Martins, 2003) 2 would be more efficiently ladder 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 parent companys resources, including McKinseys impressive reputation and clientele base. Customer and Other Stakeholder Focus Guptas four-pronged plan may also be overlooking guest and market focus.Though benefit to the customer is implicit in his plan for the advancement and sharing of McKinseys information 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 comprehensive evaluation of customer needs. For example, some clients might measure not only cutting-edge information, but affordable rates, information that is sustainable in the long-term, and friendly, helpful, available onsultants who broadcast 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 deserve consideration and inclusion in Guptas plan. Those with equity in the company will motivation 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 pull in career development and succession plan will give employees additional incentive to participate in Gupta s 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 values organizational learning is likely to keep McKinsey & Company at the forefront 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 required 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 corroboration 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 pursued at all costs. Rather, it should be pursued to the percentage point that it contributes a net benefit to the company, the companys employees, and the companys customers. A greater 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 (Be dford/St. Martins, 2003) 4