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1、Organization: Overview of Core FrameworksLocal Training Module For First-year AssociatesAssociate HFOREWORD AND OBJECTIVE This Organization Practice(OP) document provides an overview for use in local training sessions for first-year associates. It is part of a “series on functional areas.” The objec
2、tive of the series is to introduce McKinsey practitioners to the basics in each of our functional areas of expertise. All the documents in the series are comprehensive in nature and describe the current tools and frameworks in that functional areaAt the end of this document, you can find a section d
3、escribing a selection of the core documents and handbooks that can give you further details on some of the frameworks descried here. All of these documents are now on PDNet; and hard copies of them can be requested from PDNet Express, which will deliver them in 24 hoursThe contents of this document
4、have been adapted for local training sessions through “Switching Tracks” OPs first-year module videotape, which communicates the basic concepts in a concise and visual way using an actual client The Scandinavian Railroad Company. It is 40 minutes long and should be presented in 3 short segments. Bet
5、ween these segments, the faculty member runs the attached exercises, adds any commentary he/she considers necessary to clarify the concepts, and provides personal experience on selected topics. A copy of the videotape and moderators guide with exercises can be requested from the FirmThis document se
6、eks to answer 4 questions SECTION 1 Why do associates need to consider organizational issues in every engagement?SECTION 2 What frameworks do we use to help our clients improve organizational performance?SECTION 3 What role does an associate play in organization work?SECTION 4 Where can an associate
7、 find out more?McKinseys mission is to have lasting and substantial impact on our clients.To succeed, we need to work all three of the critical elements: choose the best strategy, develop world-class operations, align the organization.These three elements both reinforce and constrain each other. The
8、 best strategy is only relevant if it is operationally and organizationally feasible. The optimal organizational design depends upon the strategic requirement and the operational methods of the client.This document focuses on one vertex of this triangular relationship. It would be wrong, however, to
9、 believe that you can achieve the impact we seek by focusing on one vertex. We need to consider all three in every study.CRITICAL ELEMENTS FOR IMPACTSuccessful strategyEfficient operations Effective organization We only achieve impact when the organizations we serve are successful in implementing th
10、e strategies and operational methods we propose.However, a recent survey of engagements in which clients failed to implement proposed strategies found, in three cases out of four, that the client organization was not change-ready or even capable of implementing the strategy we proposed.To ensure tha
11、t we have impact, we need to consider organizational issues as we devise strategies. We must choose strategies the clients are ready and able to implement or complement our strategy work with investment in building the organizations skills so that the organization can step up to the challenge the su
12、perior strategy poses.3 OUT OF 4 STRATEGIES THAT FAIL DO SO BECAUSE OF THE ORGANIZATIONS INABILITY TO EXECUTE100%=340 responsesPercentMcKinsey recommendatio ns flawedClient not change-ready or committedOrganization lacked the capabilities to execute strategyOthe rThe demand for organizational work i
13、s increasing.Trends in the marketplace and the evolving nature of our clients largely explain this increase in demand.The pace of change in the marketplace is accelerating . A strategic choice or an operational innovation evokes a rapid reaction from competitor. Rarely can a durable competitive adva
14、ntage be found in these choices. Rather it is the development of a unique organizational capability with the inherent flexibility and commitment to sustain world-class performance that provides durable competitive advantage in these times of rapid change.The clients we serve are changing as well. Th
15、ey have increasingly hired in-house strategic capabilities. Most have built strategy shops close to the CEO. Few, however, have the in-house capability and objectivity to do the organizational work required to make change happen.ORGANIZATIONAL WORK GROWING IN IMPORTANCEEvolving marketplace Quickenin
16、g pace of strategic adaptation Durable competitive advantage often rooted in unique organizational capabilitiesEvolving players Many businesses acquiring in-house strategic capability Making change happen remains the “neglected art”McKinseys engagement mix Percent of timeIncreasing demand for help with organization issues and change management Crafting the answerHelping impleme
