Transnational Mgt. Case AnalysisTransnational Mgt. Case AnalysisProblem StatementMcKinsey & Company is a highly successful consulting firm worth over 1.8 billion dollars. However, its leader Rajat Gupta wondered if the company could better utilize the knowledge of its employees to better serve its worldwide clients. It was obvious that McKinsey
& Company had a strong base of core competencies among its employees, but Gupta was unsure if knowledge development was meeting its clients’ needs in an information and knowledge
driven age. Clients hired McKinsey & Company expecting leading edge information from toassist them in their decision-making processes. Gupta felt a process was needed to develop,capture, and leverage this information which he considered an asset to the company. So,the task lay before them on how to accumulate and store the information quickly and make itreadily available to consultants on a global scale.List of SymptomsMcKinsey & Company desired to provide state-of-the-art knowledge to its clients butcurrently had no means of measuring exactly how well they were doing in developing their knowledge.Employees were not being properly developed for the new direction of the McKinsey & Company. McKinsey & Company still had the ability to provide excellent advice to its Clients. However, they were not as prepared as their competitors for dealing with the upcoming technologies of the future.
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What they did: >a. Found a great way to communicate the value of its innovations to their clients
2. Work with the McKinsey team on how to improve customer experience and improve its internal experience, including: What, byI’m a customer and was concerned about its lack of value after reviewing its work
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How this was learned: What
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It helped people, even their peers to make good decisions that affected them
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It helped clients, even their peers to make good decisions that affected them
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Is the future of the company to be better?
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How this was learned:
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The future of the company was not where the current management went, but where their values and goals are to the future.
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Did you really know your objectives were good?
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Did you really want to continue with the current direction of the company?
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Were you prepared to risk it further in the future?
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What was the most important thing?”
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What you learned:
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The biggest challenge, actually,”
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Did you want to focus on one thing or another?
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Do you like talking about the future of your company?
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Do you have a good perspective that the future of your company can best suit your needs?”
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Do you like being informed of the future and how to move forward in it?
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What you learned:
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The biggest challenge, actually,”\r
What they did: >a. Found a great way to communicate the value of its innovations to their clients
2. Work with the McKinsey team on how to improve customer experience and improve its internal experience, including: What, byI’m a customer and was concerned about its lack of value after reviewing its work
\r
How this was learned: What
\r
It helped people, even their peers to make good decisions that affected them
\r
It helped clients, even their peers to make good decisions that affected them
\r
Is the future of the company to be better?
\r
How this was learned:
\r
The future of the company was not where the current management went, but where their values and goals are to the future.
\r
Did you really know your objectives were good?
\r
Did you really want to continue with the current direction of the company?
\r
Were you prepared to risk it further in the future?
\r
What was the most important thing?”
\r
What you learned:
\r
The biggest challenge, actually,”
\r
Did you want to focus on one thing or another?
\r
Do you like talking about the future of your company?
\r
Do you have a good perspective that the future of your company can best suit your needs?”
\r
Do you like being informed of the future and how to move forward in it?
\r
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What you learned:
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The biggest challenge, actually,”McKinsey & Company had experienced rapid growth. McKinsey & Company had 3,800consultants in 69 offices worldwide. In its present state, the large number of employeesand offices it managed actually hindered McKinsey from effectively performing itsoperations worldwide. Essentially, McKinsey & Company had become too large for itself under its current architecture.Alternative SolutionsMcKinsey & Company did not desire to rest on its laurels and remain content with thestatus quo, rather they aggressively sought out to find answers to their dilemmas. Theyrealized that being a 1.8 billion dollar company did not come easily and also that withoutmodifications they would not remain in their top position in consulting.(1) McKinsey & Company must implement a system of knowledge management in whichthe entire organization is able to benefit from the sharing of knowledge between employees.This will allow the company to benefit internally.Alternative Solution One: (2) In order to measure the results McKinsey & Company must revisit their goals to develop, capture, and leverage their knowledge to better serve their clients.
Alternative Solution Two: Know the audience to be measured and what benefits they seek from their relationship with McKinsey & Company.Alternative Solution Three: Define exactly what is to be measured and the approaches that will be used. All measurements must be valid, actionable and reliable.
Alternative Solution Four: Decide what data will be collected and how it will be collected. Focus on the most pertinent information.Alternative Solution Five: Refer back to the original goals and the audience in thepresentation of the results.Alternative Solution Six: Monitor and evaluate how the measures are working.Using the steps mentioned above will provide quantitative results for measurement.McKinsey & Company must implement procedures that modify their hiring practices.McKinsey & Company currently hires employees who have specialized skills. Their hires excelin their specific area of expertise. However, they know little about areas outside their areas ofspecialization.