Rajat Gupta, a 20-year veteran committed to decide to put emphasis on knowledge development, launched a four-pronged attack to help McKinsey to build up their long tern capital. First, he capitalized the firm’s long tern investment by creating come new channels and forums for knowledge development and organizational learning. Second, he created a Practice Olympic to encourage regional offices to extend ideas that grew out of client engagement. Third, he assigned senior partners to flourish “state-of-the-art” to focus on emerging issues important to CEOs. Last, he expand McKinsey Global Institute by established more research centers and recruiting more research oriented people. Although these initiatives have not yet make a significant impact, Gupta was convinced that the direction was right for the company. Throughout each leadership commitment and development on managing knowledge, McKinsey has grown stronger than it first found it. As for the future, they believe that knowledge transfer will still be the key success to their company in the 21st century.
Question and Answers:
How was this obscure little firm of “accounting and engineering advisors” able to grow into the world’s most prestigious consulting firm fifty years later? What was the unique source of competitive advantage developed by James O. McKinsey and later Martin Bower?
The most important factor for McKinsey to grow is their ability to manage the knowledge within the firm. As Rupta said, “knowledge is the lifeblood of McKinsey”, we can tell that McKinsey has come a long way in developing their knowledge learning procedure throughout each leader’s efforts. Second, we think the unique competitive advantage for the company is the one firm policy developed by Martin Bower and the undeviating sequence of analysis created by McKinsey. One firm policy means responsibilities and profits to be shared from a firm pool than by regional offices, while the undeviating