McKinsey, How it operates

What it does?

Functions

solutions

orgsolutions - organization structure based on data, organization health index to know where organization stands on global benchmark.

Talent match - a talent and value linkage, providing the people profile information in a fluid manner to determine succession and promotions.

People analytics - Replace instinct and intuition with data based decision for identify, attract, develop and retain talent. This results in increased vigor, reducing bias.

outcomes - 80% reduction in hiring time for a bank, 50% decrease in attrition rates.

Five Fifty

  • Soft skills for a hard work

  • Better decisions

  • The Changeable organization

  • Getting Small - Independence - carry out functions without formal budgetary requests - minimal dependencies on internal functions - Authorized to conduct activities without first seeking approval

  • Meeting time

  • Call your broker - (important for linking silos)

Insights

.https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/bias-busters-avoiding-snap-judgments

Halo effect. The structured interview does not prohibit the use of executive intuition, but it can usefully delay it.

Jobs available at McKinsey

  • Agile coach

  • Associate

  • Engineering (Data, programming, DevOps)

  • Architects

  • Analysts (Capabilities and insights, business)

Business model

.http://www.dpvgroup.com/wp-content/uploads/2009/11/1988-A-Business-is-a-VDS-McK-Staff-Ppr.pdf

.https://digital.hbs.edu/platform-rctom/submission/mckinsey-company-an-operating-model-perfected-through-decades-of-refining/

Core assets - people

Task - Create improvements to an organization

  1. Substance and relevant - the change is relevant at the organization level, ideally CEOs priority

  2. Measurable - the effects of change to be measurable, ideally quantitatively

  3. Sustainable - the change should persist after McKinsey team leaves

Continuously evolving operating model

  1. Technical System Hardware of the company - Relationship manager partner, ensures connection between CEO top priorities and core-on-the-ground team - small dedicated teams supported by wide expert network - a research arm, ensures most cutting edge solutions / innovative traditional "game-books" are available

  2. Management Infrastructure Includes performance as well as talent management. Performance - Metrics for the team such as for the analytical problem solving skills, whether the consultant is able to step back from a problem mindset to think it through the CEO mindset Talent management - every interviewee is subjected to the problem faced by a top level executive of the company, with no guidance on information availability.

  3. Mindsets and behaviors Ownership of the problem - the core consultant team "own" the problem Continuous learning - McKinsey tracks whether its previous recommendations lead to actual sustainable improvement to the client.

.https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/McKinsey%20Digital/Our%20Insights/Introducing%20the%20next-generation%20operating%20model/Introducing-the-next-gen-operating-model.pdf

Client selection

Systematically identify and manage risk before committing to a client project

Internal frameworks, dedicated oversight and decision making support

  • Unintended consequences of any proposed work, including potential negative impact to individuals, with particular emphasis on vulnerable populations

  • Global Client Service Risk Committee (CSRC), for escalating the potential risk client to evaluate whether to accept or reject work

.https://www.mckinsey.com/about-us/social-responsibility/client-selection

Scandals

.https://www.bloombergquint.com/gadfly/opioid-epidemic-mckinsey-s-settlement-is-a-warning-to-all-consultants

.https://www.cdc.gov/injury/features/prescription-drug-overdose/index.html

Company acquisitions

Quantum Black - Advanced analytics firm. QB have already proven its competence with Formula 1. It operates at the intersection of strategy, technology and design.