Organization OverviewofCoreFrameworks LocalTrainingModuleForFirst yearAssociatesAssociateHandbook FOREWORDANDOBJECTIVE ThisOrganizationPractice OP documentprovidesanoverviewforuseinlocaltrainingsessionsforfirst yearassociates Itispartofa seriesonfunctionalareas TheobjectiveoftheseriesistointroduceMcKinseypractitionerstothebasicsineachofourfunctionalareasofexpertise AllthedocumentsintheseriesarecomprehensiveinnatureanddescribethecurrenttoolsandframeworksinthatfunctionalareaAttheendofthisdocument youcanfindasectiondescribingaselectionofthecoredocumentsandhandbooksthatcangiveyoufurtherdetailsonsomeoftheframeworksdescriedhere AllofthesedocumentsarenowonPDNet andhardcopiesofthemcanberequestedfromPDNetExpress whichwilldeliverthemin24hoursThecontentsofthisdocumenthavebeenadaptedforlocaltrainingsessionsthrough SwitchingTracks OP sfirst yearmodulevideotape whichcommunicatesthebasicconceptsinaconciseandvisualwayusinganactualclient TheScandinavianRailroadCompany Itis40minuteslongandshouldbepresentedin3shortsegments Betweenthesesegments thefacultymemberrunstheattachedexercises addsanycommentaryhe sheconsidersnecessarytoclarifytheconcepts andprovidespersonalexperienceonselectedtopics Acopyofthevideotapeandmoderator sguidewithexercisescanberequestedfromtheFirm Thisdocumentseekstoanswer4questions SECTION1Whydoassociatesneedtoconsiderorganizationalissuesineveryengagement SECTION2Whatframeworksdoweusetohelpourclientsimproveorganizationalperformance SECTION3Whatroledoesanassociateplayinorganizationwork SECTION4Wherecananassociatefindoutmore McKinsey smissionistohavelastingandsubstantialimpactonourclients Tosucceed weneedtoworkallthreeofthecriticalelements choosethebeststrategy developworld classoperations aligntheorganization Thesethreeelementsbothreinforceandconstraineachother Thebeststrategyisonlyrelevantifitisoperationallyandorganizationallyfeasible Theoptimalorganizationaldesigndependsuponthestrategicrequirementandtheoperationalmethodsoftheclient Thisdocumentfocusesononevertexofthistriangularrelationship Itwouldbewrong however tobelievethatyoucanachievetheimpactweseekbyfocusingononevertex Weneedtoconsiderallthreeineverystudy CRITICALELEMENTSFORIMPACT Successfulstrategy Efficientoperations Effectiveorganization Weonlyachieveimpactwhentheorganizationsweservearesuccessfulinimplementingthestrategiesandoperationalmethodswepropose However arecentsurveyofengagementsinwhichclientsfailedtoimplementproposedstrategiesfound inthreecasesoutoffour thattheclientorganizationwasnotchange readyorevencapableofimplementingthestrategyweproposed Toensurethatwehaveimpact weneedtoconsiderorganizationalissuesaswedevisestrategies Wemustchoosestrategiestheclientsarereadyandabletoimplementorcomplementourstrategyworkwithinvestmentinbuildingtheorganization sskillssothattheorganizationcanstepuptothechallengethesuperiorstrategyposes 3OUTOF4STRATEGIESTHATFAILDOSOBECAUSEOFTHEORGANIZATION SINABILITYTOEXECUTE 100 340responses Percent McKinseyrecommendationsflawed Clientnotchange readyorcommitted Organizationlackedthecapabilitiestoexecutestrategy Other Thedemandfororganizationalworkisincreasing Trendsinthemarketplaceandtheevolvingnatureofourclientslargelyexplainthisincreaseindemand Thepaceofchangeinthemarketplaceisaccelerating Astrategicchoiceoranoperationalinnovationevokesarapidreactionfromcompetitor Rarelycanadurablecompetitiveadvantagebefoundinthesechoices Ratheritisthedevelopmentofauniqueorganizationalcapabilitywiththeinherentflexibilityandcommitmenttosustainworld classperformancethatprovidesdurablecompetitiveadvantageinthesetimesofrapidchange Theclientsweservearechangingaswell Theyhaveincreasinglyhiredin housestrategiccapabilities MosthavebuiltstrategyshopsclosetotheCEO Few however havethein housecapabilityandobjectivitytodotheorganizationalworkrequiredtomakechangehappen ORGANIZATIONALWORKGROWINGINIMPORTANCE EvolvingmarketplaceQuickeningpaceofstrategicadaptationDurablecompetitiveadvantageoftenrootedinuniqueorganizationalcapabilitiesEvolvingplayersManybusinessesacquiringin housestrategiccapabilityMakingchangehappenremainsthe neglectedart McKinsey sengagementmixPercentoftime Increasingdemandforhelpwithorganizationissuesandchangemanagement Source Surveyof23MGMsacrosstheFirm Therecentevolutioninourclientshasnotbeenmissedbyourcompetitors Eachofourcompetitorshasrecentlyintroducedabrandedorganizationalelementtotheirportfolio Theirorganizationalexpertisefiguresprominentlyintheirmarketingcampaigns COMPETITORSHAVEBRANDEDORGANIZATIONTOOLS McKinsey sconsultingapproachmustevolveasourclientsevolve Thesechangesprovokeashiftinthenatureofourworkandanevolutionoftheroleoftheassociateonengagements Theincreaseddemandfororganizationalworkimpactsassociatesdirectly Associatesaredrawnintoleadershiprolesonlargerteamsatanearlierpointintheircareers ThisplacesgreateremphasisontheneedforassociatestodevelopquitesoonafterjoiningMcKinsey superbteamleadershipskills EVOLUTIONINMcKINSEY SAPPROACH Surveyof23MGMsacrosstheFirm Beforewediveintotheorganizationmaterials weshouldannounceonecrit