# McKinsey, How it operates

## What it does?

### Functions

![](https://3526924997-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MIgCXXRd_zYwMrU-RaQ%2F-MUPMFU4qgjYl_foe1MI%2F-MUPNBrLIdxpXBzvQnCu%2Fimage.png?alt=media\&token=f9aa3531-be4f-4a56-a764-26ffc7232bcf)

### solutions

orgsolutions - organization structure based on data, organization health index to know where organization stands on global benchmark.

Talent match - a talent and value linkage, providing the people profile information in a fluid manner to determine succession and promotions.

People analytics - Replace instinct and intuition with data based decision for identify, attract, develop and retain talent. This results in increased vigor, reducing bias.

outcomes - 80% reduction in hiring time for a bank, 50% decrease in attrition rates.

### Five Fifty

* Soft skills for a hard work
* Better decisions
* The Changeable organization
* Getting Small\
  \- Independence\
  \- carry out functions without formal budgetary requests\
  \- minimal dependencies on internal functions\
  \- Authorized to conduct activities without first seeking approval
* Meeting time
* Call your broker - (important for linking silos)

![](https://3526924997-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MIgCXXRd_zYwMrU-RaQ%2F-MUPMFU4qgjYl_foe1MI%2F-MUPNGrF9eNR6QFpV126%2Fimage.png?alt=media\&token=c3cf087b-2374-436e-920d-869afba9d803)

### Insights

.<https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/bias-busters-avoiding-snap-judgments>

Halo effect. The structured interview does not prohibit the use of executive intuition, but it can usefully delay it.

### Jobs available at McKinsey

* Agile coach
* Associate
* Engineering (Data, programming, DevOps)
* Architects
* Analysts (Capabilities and insights, business)

## Business model

.<http://www.dpvgroup.com/wp-content/uploads/2009/11/1988-A-Business-is-a-VDS-McK-Staff-Ppr.pdf>

.<https://digital.hbs.edu/platform-rctom/submission/mckinsey-company-an-operating-model-perfected-through-decades-of-refining/>

Core assets - people

Task - Create improvements to an organization

1. Substance and relevant - the change is relevant at the organization level, ideally CEOs priority
2. Measurable - the effects of change to be measurable, ideally quantitatively
3. Sustainable - the change should persist after McKinsey team leaves

### Continuously evolving operating model

1. Technical System\
   Hardware of the company\
   \- Relationship manager partner, ensures connection between CEO top priorities and core-on-the-ground team\
   \- small dedicated teams supported by wide expert network\
   \- a research arm, ensures most cutting edge solutions / innovative traditional "game-books" are available
2. Management Infrastructure\
   Includes performance as well as talent management.\
   Performance - Metrics for the team such as for the analytical problem solving skills, whether the consultant is able to step back from a problem mindset to think it through the CEO mindset\
   Talent management - every interviewee is subjected to the problem faced by a top level executive of the company, with no guidance on information availability.
3. Mindsets and behaviors\
   Ownership of the problem - the core consultant team "own" the problem\
   Continuous learning - McKinsey tracks whether its previous recommendations lead to actual sustainable improvement to the client.

.<https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/McKinsey%20Digital/Our%20Insights/Introducing%20the%20next-generation%20operating%20model/Introducing-the-next-gen-operating-model.pdf>

### Client selection

Systematically identify and manage risk before committing to a client project

Internal frameworks, dedicated oversight and decision making support

* Unintended consequences of any proposed work, including potential negative impact to individuals, with particular emphasis on vulnerable populations
* Global Client Service Risk Committee (CSRC), for escalating the potential risk client to evaluate whether to accept or reject work

.<https://www.mckinsey.com/about-us/social-responsibility/client-selection>

### Scandals

.<https://www.bloombergquint.com/gadfly/opioid-epidemic-mckinsey-s-settlement-is-a-warning-to-all-consultants>

.<https://www.cdc.gov/injury/features/prescription-drug-overdose/index.html>

### Company acquisitions

Quantum Black - Advanced analytics firm. QB have already proven its competence with Formula 1. It operates at the intersection of strategy, technology and design.