McKinsey & Company's Knowledge Management Practices: What's Working and What's Not, Exams of Introduction to Business Management

This case study analyzes mckinsey & company's knowledge management activities, discussing both successful elements such as their culture, leadership, and organizational intent, as well as areas for improvement like the balance between tacit and explicit knowledge and the generalist model of knowledge management. Recommendations for improvement include requiring face-to-face meetings and specific knowledge requirements for consultants.

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Emily Ward
10/7/08
BUSA 440
Case Write-Up
I. Assessment of knowledge management activity in the company
1. Things that are working at McKinsey & Company:
Culture
oThe values and beliefs of the organization actively
encouraged their employees to value knowledge as a
team in order to create a more effective knowledge
management system to positively impact the value
of business practices, client relations, and consultant
specialists.
Leadership
oLeaders at McKinsey & Company work as change
agents to promote ideal environments for knowledge
management.
oManagement launched new ideas like the McKinsey
Staff Paper series in 1978 to being a type of data
collection from their consultants and encouraged the
consultants to publish their key findings.
oManagement also encouraged knowledge
management practices by assembling work groups to
develop strategic practice agendas and also “Super
Groups” to strategize the best plan of action to
implement their expertise on knowledge
management practices.
Organizational Intent
oMcKinsey and Company had a clear strategic
direction for the firm. In 1987 management launched
their KM project. The team worked to make a major
commitment to build their knowledge database and
keep it up to date and maintained.
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BUSA 440

Case Write-Up I. Assessment of knowledge management activity in the company

  1. Things that are working at McKinsey & Company:  Culture o The values and beliefs of the organization actively encouraged their employees to value knowledge as a team in order to create a more effective knowledge management system to positively impact the value of business practices, client relations, and consultant specialists.  Leadership o Leaders at McKinsey & Company work as change agents to promote ideal environments for knowledge management. o Management launched new ideas like the McKinsey Staff Paper series in 1978 to being a type of data collection from their consultants and encouraged the consultants to publish their key findings. o Management also encouraged knowledge management practices by assembling work groups to develop strategic practice agendas and also “Super Groups” to strategize the best plan of action to implement their expertise on knowledge management practices.  Organizational Intent o McKinsey and Company had a clear strategic direction for the firm. In 1987 management launched their KM project. The team worked to make a major commitment to build their knowledge database and keep it up to date and maintained.

BUSA 440

o The entire organization was also communicated with to be sure that each person understood the importance of knowledge management practices. o The knowledge and business practices at the company were in alignment. Management was sure to address the purpose of the knowledge databases and even addressed the value that this would add for their clientele and business overall.

  1. Things that are not working at McKinsey & Company:  Knowledge Process o Knowledge process includes an equal exchange of both tacit and explicit knowledge. However, McKinsey & Company employees were worried about that balance.  “Technopoly” is an issue management at McKinsey & Company was worried about because their knowledge management system could drive out communication.  Generalist Model of Knowledge Management and Business Practices o The firm wasn’t succeeding by only pursuing a generalist model of managing their knowledge and sharing information. They were losing clients to firms whose consultants had more in depth knowledge in specific industries rather than a shallow knowledge of many things. o Clients were demanding specialized expertise.
  2. Recommendations for improvement of the Knowledge Management Activity:  Requirement of face to face meetings between consultants o This required face to face meeting would eliminate the chance of “technopoly” taking over the opportunity for socialization and discussion within the firm.