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Global Knowledge Society with Special Reference to McKinsey and Company Inc

MCKINSEY AND COMPANY INC 11

Global Knowledge Society withSpecial Reference to McKinsey and Company Inc

Global Knowledge Society withSpecial Reference to McKinsey and Company Inc

Thesurfacing of theknowledgesociety,based on theinvasive influenceof modernhigh-tech communicationandinformationtechnologies, has broughtin beinga basicreshuffle of theglobal economy.Its importancetranscendspast theboundaryof hypingon theinternet. Knowledgehas alwaysconstitutedan importantelementin theproductionprocessandhencea keydriverto thesocialandeconomicsystems (Ursula,2006). Ancienteconomiesrelied on knowledgeto figureouthowto construct,farmandmanufacturesvariousproducts.However,thecapabilityto storeanddisseminate informationhas increasedat an astounding ratethelastone century

Knowledgesocietyis pegged ontheneedto accessinformation,disseminationof knowledgeandcapacityto transferinformationinto knowledge.Diffusionof knowledgeis one of theelemental requirementsof the knowledgesociety.Itshould be basedon justice,equity,solidarity andnon-discrimination. Thismeansthatunderstandingknowledgesocietyis a keypillarof theknowledgesociety(Petrides, 2000). TheMcKinsey &ampCompany Inc casestudywilldescribehowKnowledge managementpracticeshave beenof importanceto thefirm in the deliveryof consultancy services.Thecompanyheavilyrelies on knowledgeforits existence,development,andgrowth.In thisfirm Knowledge is propagatedthrough workshops,trainingsessions,seminarsandsharingof informationgainedfrom findingsin projects(Mundhy,2013).

McKinsey Company and KnowledgeSociety

Scientificadvancementshavemadeitpossibleformanto digitalize informationandconsequently thishas broadenedtheapplicationof knowledgein theglobal economy.Todaytheworldhas becomea global villagewhereknowledgeabout howto shinein an exceedinglycompetitiveglobal economy,theavailability, useandtransitof knowledgehas becomeakeyfactorto beatcompetition.Innovationis an importantelementin theknowledgesocietysince itfuelsthecreationof newjobopportunitiesandsupportseconomicgrowth (Kikoski,C. &amp Kikoski, J.,2004).

McKinsey &ampCompany Inc is onefirm that has undergonenumerouschangesin howitconductsitsbusinessas theneedsof theirclientscontinueto shiftwith changesin theglobal world.Startedin 1926 thecompanyhas servedas a managementconsulting companythat has primarilyfocusedon helpingworkout issuesof importanceto theseniormanagement.Itclientbaseis composedof institutions,corporationsandgovernmentsaround theglobethat needto streamlineadministrationanddeliveryof servicesthrough properuseof resources,bothphysicalandmanpower.Forthelastone decade, thecompanyhas takenpositionone as thebestconsulting firms in theUnited States. McKinseyCompany has officesin 60 countriesaround theglobeandhas employedmorethan 1000 thousand people.

Company Structure

McKinsey &amp Company Inc wasformerlyorganizedas a partnershipentitybefore itunderwenta thoroughrestructuring thatgaveita newfaceas a privatecompanywith stockownedby partnersin theyear1956. Thefirm has a flatstructurejustlike a partnershipandemployeesare referredto as partners.From 1960s thecompany’smanaging directorhas been chosenby ballotby seniordirectorsto servefora periodof 3 years.There are alsogroupsof committeeeachwith a specificareaof responsibility.Theorganizationstructureof thefirm is decentralizedand variousofficesat differentcornersof theglobehaveidenticalfunctionsandare operatedindependently.Everyofficeis supposedto carryout operationin thebestinterestof theclientbasein aspecificmarket,thoughthere is intenseengagementandexchangeof informationamong offices.Additionally, thoughbudgeting is centralizedeachofficeis accordedautonomyto on howitexecutesconsultationsservices.

To continuallysupportthecompanyconsultantsin thefield,thecompanyhas investedcolossalsumsof moneyin thecreationof knowledgemanagementsystem.Thisofferseasyaccessto specializedexpertsandotherimportantbusinessinformation.Thesystemthatis partof theMcKinsey knowledgecenteralsoprovidesa mechanismforaccessto individualconsultantswith therequiredskillsas per theneedsof theclient.Itis alsoof significanceimportanceto notethatanyformof competitiveinformationis not sharedand thiscontravenestheaforementioned preceptsthat builda knowledgesociety.

McKinsey &amp CompanyKnowledge Management System

Knowledgemanagementhas beenan importantaspectforMcKinsey andCompany Inc since itstartedbusinessoperation.In theancientdaystheneeds of governments,corporationsandfirms that soughttheserviceof thecompanywasverydifferentfrom theneedsthatthecompanyis currently addressing.Theeraof the industrialagehas beenovertaken by theeraof informationage.In theinformationage,themostvaluedresourcesareinformation,andhowitis usedanddisseminatedis thekeyelementthat is determiningwhich firms stayin thecompetitionandwhich firms collapseunder thepressureof competition (Mundhy,2013).

Mostnotablythedotcom bubblehas tremendouseffectson theresourceutilization of thecompanyand thissignificantly reducesits clientbasefrom 64 to 52 percent. Evenin thefaceof a slumpthecompanystillwasloathto fireits personnel.In theearly1990s Gupta Rajat becamethemanaging directorof thecompanyandby thetimehis tenurecameto an endhehadhelpedtransformthecompany andtheclientbaseincreasedfrom 2,900 consultantsto 7,000. To keeppacewith thechangingoperationsenvironment,McKinsey Company andInc builtup an accelerator(McKinsey &amp Company,2014). In thismove,thecompanyacceptedstock-based reimbursementto assistinternet setups.Additionally, in theyearsthat followedthecompanyinitiatednumerouspracticesthat wereaimedat addressingvariousissuesin thesocialandpublicdomain.In thisregard,thecompanyinvesteda whopping$35.5 million to reinforceits knowledgemanagementsystem (Mundhy,2013).

Theknowledgemanagementsystemtakesknowledgeas inputandgeneratesnewknowledgeas output.Itbecomesveryeasyto understandorganizational running andidentifydysfunctions inherentbetween theactionandresult.Experienceis graduallytransformedinto knowledgethat can be usedby others to pursuethegoalsof thefirm. Sharingof organizational knowledgeis crucialas itaugments capabilityto performeffectiveactionsandimproveorganizationperformance.At McKinsey &amp Company Inc theknowledgemanagementsystemhas enabledemployeesto continuallyexpandtheir capacityto createtheir future(Sarlak, 2010).

Ian Davis tookthepositionof themanaging directorin 203 andhesoughtto bringback thecompanyto its corevaluesthathefelthadvanquishedduring theeraof Gupta Rajat. Thecompanyhadlostits heritageandthoughthenewchangesweresparked by thechangingoperational environment,someof thecorevaluesthat hadhelpedbuildthecompanyhadbeenabandoned.In thesameMcKinsey Company andInc openedofficein China to serveas theheadquartersof theAsia-pacific region.In realityby thebeginningof the2000s morethan 60% of thecompanyrevenuewasgeneratedfrom outside theUnited States bounders. Bytheendof theyear2009, thenumberof directorshadrisento 400 from 151 in 1990. From 2009 Dominic Barton has beenthemanaging directorandis presentlyservinghis secondandlastterm (McKinsey&amp Company, 2014).

Themostconspicuouschangein linewith thechangingoperationenvironmentof thecompanyhas beentheworkorganization.Workorganizationencompassesfunctional,technicalandsocialstructuresof workat theworkplaceandbeyond.Morespecificallythetermrefersto thedivisionof labor,coordinationof work,formsof controlandformsof co-operation. Itrefersto thedeployment of personnelto functionalunitsbased on their expertise, skillsandsocialdimensions (Gupta &amp Sharma, 2003). At theMcKinsey Company andInc one of theprofoundadjustmentsin thepasttwo decades has beentheincreasedflexibilityin thedeployment of personnelandassignmentof duties.In theinformationageknowledgeserves as akeyingredientthat determineshowsuccessfullyfunctionalunitswillperformtheir taskswithout losingthecorevaluesof theorganizationandheritageof thefirm. McKinsey &amp Company Inc has initiateda widerangeof measuresto achieveflexibilityrangingfrom multitasking, jobenlargementandteamworking.In thepastemployeewould profile quitecomfortablyin thefirms with a limitedrangeof knowledge.In actualsensemajorityof McKinsey employees,in thefirst50 yearshadspecializedin specificfiledandcould not multitask. With thechangesin thedigital worldwhereknowledgeabout diverseaspectsthat affectthefirm, andthataddresstheneedsof theclientshavebecomean importantpartof businessoperation,masteryof differentconceptshas beenindispensable (Ursula,2006). Therisein demandforthesoftskills,forinstancecommunication,languageandselfmanagementskillsin theservicesectorhas necessitatedtheblurringof boundariesbetween emergenceof newworkdutiesandoccupation.Thedispersal of workersto clientsin thenewdispensationin theknowledgesocietyhas encouragedselfservicingby employeesandmultitasking (World Summit on the Knowledge Society &amp Lytras,2008). On themanagementplatforms,ithas alsobecomeparamountfortheseniormanagersto flattendecision-makingstructures,a synthesisof operative andconceptual roles.Theincreasingcodification andformalization of skillsandtheneedforstandardizationin deliveryof servicehas coercedMcKinsey andCompany Inc to createnewformsof control,forexample,callcenters.

Conclusion

Thesensationof anybusinessunitandthatof thenationaleconomyhas becomeincreasinglypeggedon theinformationinfrastructurethat is essentialforthecollectionanduseof knowledge.Thesignificanceof broadband communicationspremisein thisrespecthas beentantamountto electricityin theindustrialage.Knowledgehas becomea majorresource,andits valueshould not beunderestimated.Consequently, themostsignificanceasset has becomethepropertyrightsandnot thephysicalasset. In themindsandheartin theknowledgesociety,theancientoutlooksuchas laborthat wasessentialforthedevelopmentandgrowthare not as importantanymore. Employeesat alllevels in the21st centuryknowledgesocietymust be adaptcontinuously to changingopportunities,businessmodels,workpracticesandformsof socialandeconomicorganizationby becominglifelonglearners.

References

Gupta, J. N. D., &amp Sharma, S.K. (2003). Intelligententerprises of the 21st century.Hershey, PA: Idea Group Pub.

Kikoski, C. K., &amp Kikoski, J.F. (2004). Theinquiring organization: Tacit knowledge, conversation, and knowledgecreation: skills for 21st-century organizations.Westport, Conn: Praeger.

McKinsey &amp Company. (2014).Resource Revolution.Retrieved from: http://www.mckinsey.com/

Mundhy,A. (2013).Copyof McKinsey &amp Company: Managing Knowledge and Learning.Retrieved fromhttp://prezi.com/wd_xx1ir-aez/copy-of-mckinsey-company-managing-knowledge-and-learning/

Petrides, L. A. (2000). Casestudies on information technology in higher education: Implicationsfor policy and practice.Hershey, PA: Idea Group Pub.

Sarlak, M. A. (2010). Thenew faces of organizations in the 21st century: Management andbusiness reference book.Toronto: NAISIT Publishers

Ursula, H. (2006).Thetransformation of work in a global knowledge economy: towards aconceptual framework .Retrievedfrom:http://worksproject.be/documents/WP3synthesisreport-voorpublicatie.pdf

World Summit on the KnowledgeSociety, &amp Lytras, M. D. (2008). Theopen knowledge society: A computer science and information systemsmanifesto: First World Summit on the Knowledge Society, WSKS 2008,Athens, Greece, September 24-26, 2008 : proceedings.Berlin: Springer-Verlag.