McKinsey
McKinsey
1. Based on the information provided in the case, what kind of organizational structure does McKinsey use and why? How is it connected to its mentality type (type of company within the Bartlett & Ghoshal typology)?
Company has strongly embedded “One firm” structure, which relates to clients, employees and profits. They emphasise the individual consultant development, so called I-shaped consultants. It is team-based organisation with team-led sectors and segments. McKinsey’s have a system, developed over several decades, of professional principles, approach to serving clients, personnel policies, organization, ownership which enable firm workers to identify with the long-term goals of the institution. history and traditions of the firm have also cultivated values that encourage firm members to stick to policies that they might otherwise deviate from. All branches of a company combine a high degree of local autonomy with a one-firm policy. The manager of each office had broad operating responsibility and decision-making authority, but only within the limits of firm principles, strategy, and policies. According to the one-firm policy, all consultants were to be hired and promoted by the firm rather than by an office; partners' profit shares were derived from a firm pool, not an office pool; and each client was to be treated as a client of a company, not of a particular individual or office. I think that McKinsey is a transnational type of company, because its subsidiaries are relatively independent from the rest of the company, since they are bonded to the local environment, to which they have to be very attentive.
The transnational company is also described by Bartlett and Ghoshal as an integrated and interdependent network of various but equal units, where headquarters does not play a commanding role. Headquarters choose to control their subsidiaries
1. Based on the information provided in the case, what kind of organizational structure does McKinsey use and why? How is it connected to its mentality type (type of company within the Bartlett & Ghoshal typology)?
Company has strongly embedded “One firm” structure, which relates to clients, employees and profits. They emphasise the individual consultant development, so called I-shaped consultants. It is team-based organisation with team-led sectors and segments. McKinsey’s have a system, developed over several decades, of professional principles, approach to serving clients, personnel policies, organization, ownership which enable firm workers to identify with the long-term goals of the institution. history and traditions of the firm have also cultivated values that encourage firm members to stick to policies that they might otherwise deviate from. All branches of a company combine a high degree of local autonomy with a one-firm policy. The manager of each office had broad operating responsibility and decision-making authority, but only within the limits of firm principles, strategy, and policies. According to the one-firm policy, all consultants were to be hired and promoted by the firm rather than by an office; partners' profit shares were derived from a firm pool, not an office pool; and each client was to be treated as a client of a company, not of a particular individual or office. I think that McKinsey is a transnational type of company, because its subsidiaries are relatively independent from the rest of the company, since they are bonded to the local environment, to which they have to be very attentive.
The transnational company is also described by Bartlett and Ghoshal as an integrated and interdependent network of various but equal units, where headquarters does not play a commanding role. Headquarters choose to control their subsidiaries