Case Analysis: Mckinsey & Company- Managing Knowledge and Learning

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Company’s background: 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 …show more content…

The theory was that on-the-job experience mattered more than education. Age and experience would add credibility in what was a young industry. But Bower was prepared to go against the prevailing wisdom. He felt that these middle-age hires brought baggage with and tried to keep motivating them. He urged workers to adopt an entrepreneurial approach. Those who came up with the best ideas were paid handsomely. Bower began to carefully shape the firm into its present form by insisting on a few core principles:
 Client interests must be placed before those of the firm.
 Engagements should only be undertaken when the value to the client was expected to exceed the firm's fees.
 The firm's ownership should be restricted to active partners.
 Firm members must be professionals trained and motivated to do outstanding work and make a permanent career with the firm.

2. How effective was Ron Daniel in leading McKinsey to respond to challenges identified in the Commission on Firm Aims and Goals? What contribution did Fred Gluck make to the required changes?
In the commission on Firm Aims and Goals, they issued several challenges which included McKinsey grew slowly in Europe and the U.S; neglect the development of technical and professional skills and lack in-deep industry knowledge. These challenges have made them lose both clients and recruits to competitor. Therefore, the company decided to

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