McKinsey & Company is a privately owned management consulting firm that focuses on solving issues of concern to senior management in large corporations and organizations. Known among its employees simply as "The Firm" McKinsey & Company was founded in Chicago in 1926 by James O. ("Mac") McKinsey. McKinsey was a professor at the University of Chicago who pioneered budgeting as a management tool. Marshall Field's became a client in 1935, and soon convinced James McKinsey to leave the firm and become its CEO; however, he died unexpectedly in 1937.
Today McKinsey has over 7,500 consultants in 90 offices across 51 countries. They help solve strategic, organizational, operational and technological problems, for some of the world's largest organizations. Clients include three of the world's five largest companies, two-thirds of the Fortune 1000, governments and other non-profit institutions. McKinsey also performs pro bono engagements for a number of charitable organizations and government agencies worldwide. 'Forbes' estimated the firm's 2005 revenues at $3.8 billion in its list of largest private companies.
To be the global leader in consulting industry, provide expertise consulting service to the worldwide clients.
To help the clients make positive, lasting, and substantial improvements in their performance and to build a great firm that is able to attract, develop, excite, and retain exceptional people.
This case discrbed the development process of McKinsey&Compay from 1926 to 1996. In particular, it focuses on the way in which McKinsey has developed structures, systems, processes, and practices to help it develop, transfer, and disseminate knowledge among its 3,800 consultants in 69 offices worldwide. Concludes by focusing on three young consultants operating in each dimension of the firm's organization--the local office, the industry practice, and the firm's competence center. So, whether the changes they have made are sufficient to maintain the firm's vital knowledge development process, we will get the solution according to the following questions’ analysis.
How was this little of “accounting and engineering advisors” able to grow into the world’s most prestigious consulting firm 50 years later? What was the unique source of competitive advantage developed by James O. McKinsey and later Marvin Bower? McKinsey can grow his little advising firm into the world’s most prestigious consulting firm by outlining the vision for the firm as focused on issues of importance of top-level management and used the intelligent technology and resources to serve their clients. He practiced the development initiative which focused on the knowledge development by setting up centers of competence and building the knowledge infrastructure. •
An “accounting and engineering advisors” company became a well-known consultant firm because James began with recruiting experienced executives, and training them in the integrated approach. In addition, One firm policy that formed by Bower which required all consultants to be recruited and advance on the firm wide basis , clients to be treated as the company’s responsibilities and the profit to be shared from a firm pool, not as office pool was also the key success of the firm. Moreover, James encouraged those executives to synthesize data and think for themselves to come up with the new ideas which may benefit to the company’s development. From the employees perspective; they have enough confident to show their clients that they can solve the problems. •
The unique source of competitive advantage that Marvin Bower is that he outlined his vision for the firm as one focused on issue of importance to top-level management, adhering to the highest standards of integrity, professional ethics, and technical excellence by using the mission of serving the clients superbly well. He used the McKinsey’s...
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