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1、Organization: Overview of Core Frameworks,Local Training Module For First-year AssociatesAssociate Handbook,FOREWORD 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.”
2、The objective 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 area At the end of this document, you can find a
3、 section describing 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 hours The contents of thi
4、s document 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 se
5、gments. Between 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 Firm,This
6、 document seeks 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 c
7、an an associate 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 constra
8、in each other. The 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
9、 wrong, however, to 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 IMPACT,Successful strategy,Efficient operations,Effective organization,We only achieve impact when the organizations we serve are success
10、ful in implementing the 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
11、 proposed. To ensure that 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
12、 to the challenge the superior strategy poses,3 OUT OF 4 STRATEGIES THAT FAIL DO SO BECAUSE OF THE ORGANIZATIONS INABILITY TO EXECUTE,100%=340 responses,Percent,McKinsey recommendations flawed,Client not change-ready or committed,Organization lacked the capabilities to execute strategy,Other,The dem
13、and for organizational work is 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
14、 can a durable competitive advantage 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 w
15、e serve are changing as well. They 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 IMPORTA
16、NCE,Evolving marketplace Quickening 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
17、of time,Increasing demand for help with organization issues and change management,Source: Survey of 23 MGMs across the Firm,The recent evolution in our clients has not been missed by our competitors. Each of our competitors has recently introduced a branded organizational element to their portfolio. Their organizational expertise figures prominently in their marketing campaigns.,
