V7 Harvard Business School 9-396-957 McKinsey & Compan’ Managing Knowledge and Learning In Ap 1956, balay tough iss tener at managing dictor of McKinsey Company. Rat Gupa se arn Ge pou a be ew out Bera the es end ‘Stun Botte Oye, He aut send to tent wan outing tnovatve new ies hey ‘ivy out exept rhs ana ke ar ell see pare fps, Gupta ad oe [Say snpreend oy the lunes cet he ms ext generation of osu thre wat acter hough hat hap coming back the <7 year old enero ts hy sucosfel $19 ten consling tm (Se Et Ui a Geen year owt story)” ae “Mprccned te ap of Menus knmdedge and peice oberg. how wel was he Sn ding “Seopung eapeciog andere ncn verve of cents works? tn sind te {Sk of tnewlege devdopemnt hd brome mac more ompin over the Pst daca or 0 et Seinannean occ, Fst inn tceesalyiflomaton and mowledge ven ag, he sheet (eine Sn ate sange of em tale tude te ak mach more emp: ect prt ‘Seenst of tase develpnent cis expects of aod eed for lading tge expen were Sestay cesing an hud te bs om aces had made ach mee CU ond iRitage le teow and epee spr by S00 corans 9 offices worvie [Rihough ie Pcie Ops war olf on of sere inves he fad capone, Gupt Mtondeict ik was enough parc i ph f stn sated bee ut “hnowiedge fe eno of Mekiwey™ ‘The Founders’ Legacy! Founded in 1928 by Univer of Chicago prof, aes ("Mac") Meise, te fem of recounting snl engseng sora above Hesane grew tpl. Som Mac began eur Ciperencel enectven tn tang them inthe nego appoach he ced is General Survey Sine tency moran elas woud end conacnt ough an “undeviaing seen STijab pou megy pelos epanaton, fb, procdutes and pence =) ‘fur Cig Bri peed aan a oan aie ra ne econ oon sacar st cpr ryote itera i.e pn mn pen» Se an as tested sed nately ad ns opecee er ante h Sybesma frye ane serene Be “4emphasis te paced onthe development of what it termed “T-Stuped” consultans—those who ‘ipplemented the broad generalist perspective with svepth competence an inuney 62 ‘anetona speci. Practice Development initiative When fon Daniel was elect Managing Distr in 1976—te fourth wo hold the poron since Bower bad stepped down nine jour eae McKinsey was sil sagging 10 meet the hallenge lid ot ne Costneion'sepor. As th ead ofthe New York oer sine 197, Daniel fad experienced fst Rand the ring expecatony ef inteasingly sophissted cients and the Aegrenive challenges of new competion ike BCG. In contrast to MeKinsey’s loal office asd ‘del of chert remsonatip” consul, BCG began competing onthe buss of hough leaderip™ From highly concentrated resource basen Bost Using some sumple but power tol uch 35 the capecente cue and the growtvshare mac, SCG begun to make song noads ato the ‘Sraegyconsuling marie AZ McKinsey began long both cents and rcrta BCG, Dail ‘bch convinged bat his Bim coald no langer succeed pursuing is general ode (One of is ft snaves wa to appoint Chuck Farr ne ofthe fim’s mot respected and productive senor pares, a2 MeKizsey's lest fulvime deter of taining, AS an expanded Scmmimnent t developing conelars’shile and expertise became the noun. the executive ‘oounites Degen debuting the ned 0 formally updating te fms lan-tanding musion to eect {he finns cove commonent not only 9 srving it ante bo got developing f= cone (anita) But Daniel alo blived some sacral changes were necessary. Bing on an initiative be snd bis colleagues had aceady lnplemente in the New York of he created Sastry tase Gicese Secs mn consumer procs, banking, Industial goods sneurence, an toon cating ‘croc the gwoyraphicofcs tt remained the Paty organznonal ety He abo encouraged tore formal developoen of he’s funcional experts in aren ke State, organization snd pernione where knowladge and experience were eidely ded and ‘mimally coded. Hlowever any-~incuding Marvin Bower—oxpresee conse that any move towards & product Enven approsch could damage McKinaye datncive advantage of foal pesens wih gave partners Seong conection wih the busines commu, alowed east work on st ih hens [ind acted inplemantaton. Ia an spprench at they fle conrad sharply withthe “ys iy out "mode of expert-based consulting. Nonateles, Danie presed ahead, and the industry sectors qui found amar ent ace, Feeling tat funcuonal sxpere needed more stern, be asembled workgroups fo ‘develop Enowedge in two ase that were a the bear of McKiney’s practce—staegy and ‘rgantaton To bed up the fest group, be named Fed Ghuck, a der inthe New Yor oe ‘tho had! been outspoken in anping the fem to modi ts tradioral gneraltapprach In Jie 1977, Gluck invited “Super Group” of younger partners wath statgy expertse 93 thee day ‘Besig to stare eas and develop an agen forthe stategy prac. One decebed he mening ‘We had theee days of unmitigated chaos. Someone frm New York vould stand up and presenta fourbor mate. A patna fom Landon would pracnt 3 rine matric A German would prevent box mate. Iwas chaos. Dutat the ‘of thet ay sore strands of thought were coming ogee sponsored shady of “xctllent compare” and on Senet,» respected senior parte to ‘roup tat could article te fs wasting knowledge i the organization area. One of he rs ‘ert wasn inovative young PhD. im organcational ery named Tom Petessveaer exay &Comotny: Managing Koop and aang ln 1932, Mac secrited Marvin Bower, bright young, lnwyer with « Harrrd MBA, and vith two years asked fm fo become manger of the ecanly opened Nev York aca, Convinced {Bathe had To upgrade the firms nage sn an ndurry typically eared ne “lScency exper of “busines doctors” Bower undertook fo ibe has tse he sane of profes he ad expenunced in his tne slaw partersip. In 1937 mem he dune fs vn forthe fo ‘one focused on mparant management prtblm, achering tothe highest standard of lege, ‘rosea ethics, and fecal Suellen, able atract snd develop young ten of ousting {gualfcaong and commited to continually raising is stature and tlle. Above all # woes rm dedicated to the mission of cerving i Coens soperly wel, (Over the next decade, Bower worked tislealy to influence his partes and sets fo sare his vain As new offies opened, he bee 3 song advocate of the One Fim policy tit ‘mquired all oslo be recrsed and advance on fm wide bass, cent tobe ened [MeKinsey & Compan responses, an profit be shared Isom aan pol tan ofie pel ‘And through diner seminar e began upgrading the anand quality of Mckay cents, Ibe 196 New Engagement Gude. he arsclted 3 poly tht every assignment shold eng the frm something more than venue experiance or prestige, or example. "lected Managing Parse 190, Sower ld his en parmers an 74 sso oii 2 series of major change ht tmed Metinaey into an elt consulting i uoabe to ect te demand fcr ws sermces Each dent's problems were sen a unis, bat Bowes and he colepucs fem) believed tht wel ane, ugly inellgen generals could quickly pap the weve and tough dliscped analysis find is solaton The fam’ exrorsinary domerte growth though the 15 [ovided bass for ivemationa! expansion tat alerted the mate of growth the 19606 Fellowing the opening o the Landon Cities in 1959, ofice in Geneve, Astra, Dseloort, ae Fri followed quickly. By the tne Dower styped down st Manapmg Dimer 1967 McKinsey ‘was well esbished ana high repeced pasos in Europe and North Ament ‘A Decade of Doubt Although lendetip sucsion was well planed and executed, win few year, McKinsey’ growth engine seed to Stal. 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