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单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,Organization:,Overview of Core Frameworks,Local Training Module For First-year Associates,Associate Handbook,1,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.” 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 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 this 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 segments. 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,2,This 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 can an associate find out more?,3,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 constrain 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 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.,4,CRITICAL ELEMENTS FOR IMPACT,Successful,strategy,Efficient,operations,Effective,organization,5,We only achieve impact when the organizations we serve are successful 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 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 to the challenge the superior strategy poses.,6,3 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,7,The demand 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 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 we 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.,8,ORGANIZATIONAL WORK GROWING IN IMPORTANCE,Evolving marketplace,Quickening pace of strategic adaptation,Durable competitive advantage often rooted in unique organizational capabilities,Evolving players,Many businesses acquiring in-house strategic capability,Making change happen remains the “neglected art”,McKinseys engagement mix,Percent of time,Increasing demand for help with organization issues and change management,Crafting the answer,Helping implement change,10,years ago,Today,Source: Survey of 23 MGMs across the Firm,9,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.,10,COMPETITORS HAVE BRANDED ORGANIZATION TOOLS,Consulting firm,Product,Client example,BCG,Time based competition,GE,General Systems,Process redesign,UPRR,Booz Allen,Continuous improvement,Exxon,United Research,Process redesign and facilitation,Mobil,Delta Point,Transformational change,SmithKline Beecham,11,McKinseys consulting approach must evolve as our clients evolve. These changes provoke a shift in the nature of our work and an evolution of the role of the associate on engagements.,The increased demand for organizational work impacts associates directly. Associates are drawn into leadership roles on larger teams at an earlier point in their careers. This places greater emphasis on the need for associates to develop quite soon after joining McKinsey-superb team leadership skills.,12,EVOLUTION IN McKINSEYS APPROACH,*Survey of 23 MGMs across the Firm,From,To,“The answer”,Solving for the “answer” and the change process,Managing client teams,Building client capabilities,Small, analytically focused teams,average client team of 3*,Multiple, highly leveraged McKinsey/client teams,Average client team of 10*,CEO counseling by senior people,Coaching and feedback at all levels,13,Before we dive into the organization materials, we should announce one critical caveat: the frameworks you are about to see are only as good as the judgment and insight used to fill them out. The frameworks are often mere checklists, useful tools to ensure you do not overlook a key dimension. The OP can provide interview guides and questionnaires that you can use to flesh out the frameworks, as well as applied examples in a range of settings. However, almost all organizational issues are “situation dependent”, and almost all client settings are unique. Your judgment, insight, creativity, and organizational acumen will determine whether you add value in the client setting .,14,A CRITICAL CAVEAT,“,Garbage in, garbage out”,Organizational practice frameworks,Checklists,Surveys, questionnaires,Applied examples,Garbage,Good judgment, keen insight, creativity, organizational acumen,Garbage,Client impact,CONCEPTUAL,15,A series of frameworks are available to help clients identify and address organizational limits on effectiveness or obstacles to change. They also point toward solutions.,These frameworks help teams answer two fundamental questions:,What change is needed?,How should the client implement the change?,The OP has derived a set of six attributes that characterize,high-performing organizations(HPO),. By assessing whether your client organization exhibits these six attributes, you can diagnose whether an organizational performance gap exists as well.,Additionally, the,7-Ss,will help you identify strengths and deficiencies in the organization. The,7-Ss,focus teams on aligning structure, staff, systems, and style to promote behavioral change and build skills in pivotal jobholders. By contrasting the required skill set (at both the organization and the pivotal jobholder level) with the current skill set, you can often clarify the organizational gap that exists.,You complete the diagnostic by filling out the,change board,. That exercise helps teams understand the organizational skill deficits or resistance to change so they can deliberately plan to build the necessary skills and willingness to change in the organization.,Once the gaps have been identified, the team needs to lay out a change program to close the gaps. The,transformation triangle,highlights the three critical dimensions of any effective change program-top down, bottom up, cross-functional. The proper balance among these dimensions depends on the gap, the client setting, and the competitive context.,Every change program contains some mix of six fundamental energizing elements. Each must be considered as we design change programs.,This section of the handbook will discuss each framework in turn.,16,CORE FRAMEWORKS,High-performing organization attributes,Vision,Perfor-mance,CEO,led,People,Skills,Simple,7-,S framework,Winning formula,Pivotal jobs,Design levers,Organizational structure,What change is needed?,How should the client make change happen?,What gaps in organizational performance exist?,What organizational challenges exist?,What initiatives comprise the change program?,How do we create energy for the change program?,Strategy,Skills,Shared values,VISION,Staff,Management systems,Leadership style,Change board,Agenda/platform,Direction setting,Structuring,Bottom-up energizing,Transformation triangle,Performance management,Vision and leadership,communication,Organizational infrastructure,People development,Problem solving process,Energizing elements,17,The OP undertook a study of 10 high-performing companies, true industry leaders, that we knew very well. The companies had sustained pace-setting performance in their respective industries over 2 decades.,These 10 HPOs shared six management attributes, each of which focuses on performance. By comparing your client organization to these HPOs, you may identify opportunities to improve your client organization.,18,“,HIGH-PERFORMANCE COMPANY” ATTRIBUTES,Driven by leaders,Aligned by simple structures and core processes,Based on world-class skills,Rejuvenated by well-developed people systems,Built by relentless pursuit of before-the-fact strategies/vision,Energized by an extraordinarily intense, performance-driven environment,What change is needed?,How should the client make change happen?,Organizational challenges,Initiatives,Energizing elements,Gaps in performance,19,The first three of the six common management attributes:,Driven by leaders.,The leaders of these companies had very high performance aspirations. For these leaders there was no such notion as “good enough”. At the center of these leadership groups, we consistently found demanding, unreasonable CEOs.,Built by relentless before-the-fact strategies/visions.,HPOs spend their time looking forward, not back. Their strategies drive relentlessly for both profitability and growth.,Energized by an extraordinarily intense, performance-driven environment.,HPOs have a demanding, occasionally punishing, work pace. There is real accountability, especially at the top. HPOs, while being very,good,places to work, are not always,nice,places to work.,20,ATTRIBUTES OF AN HPO,Driven by leader,Very high performance aspirations held by all key leaders,Demanding, “unreasonable” CEOs,Effective working group at top,Ability to penetrate to micro- level of their businesses,Single-minded adherence to simple, clear success measures-not just financial,Productive “fear of failure”,Built by relentless pursuit of before-the-fact strategies/vision,Highly motivating, if not inspiring, “end” state,Frequently oriented toward industry leadership,Consistently striving for both profitability and growth,Passionate defenders of core businesses,Understanding of how industry(s) works, what customers want, and what competitors can do- and how these might change,Energized by an extraordi-narily intense, performance driven environment,Demanding, occasionally punishing, work pace; on call all the time,Real follow-through on accountability especially at the top,Aggressive learning from things that do not work,“good” places to work but not always “nice”,Performance shortfalls change careers,Members feel rewarded by being part of winning institution,21,The last three common management attributes focus on structure, skills, and systems:,Aligned by simple structures and core processes.,HPOs align authority, accountability, and performance challenges. Lines of communication and approval are simple and are mirrored from one division to the next.,Based on world-class skills.,HPOs are world class in at least one critical skill of their industry, e.g., product development in high technology, risk management in wholesale banking, direct-to-store delivery in consumer goods, best-cost manufacturing. Additionally, HPOs exhibit superior process management skills that in and of themselves become a source of competitive advantage.,Rejuvenated by well-developed people systems.,The CEO in these companies is the Chief Personnel Officer. The CEO interacts regularly with the entire leadership group, understands the individual development needs and goals, and leads staffing reviews.,22,ATTRIBUTES OF AN HPO,(CONTINUED),Aligned by simple structures and core processes,Straightforward alignment of authority, accountability, and performance challenges,Uncomplicated lines of communication and approval line to line,Similar internal structural units and key management processes across the company,Minimal critical staff reviews,Regular calendar of key management processes and communication,Based on world-class company skills,Do many things well, but at least 1 functional skill at world-class competence level underpins strategy,Also focus on building corporate skill in the way they run the place,Company key management processes viewed as real competitive advantage,Rejuvenated by well-developed people systems,CEO is Chief Personnel Officer,Clear focus on performance and motivation successful long-term wealth-building programs seem key,Management processes ensure leaders have “informed” view of key contributors 2-3 levels down,CEO leads annual “staffing review” best people/teams in most critical/demanding jobs,“Bench strength” is a top priority,23,The HPO research found something else common to the HPOs: all 10 were experimenting with self-governance. Self-governance in these HPOs means empowerment with accountability. The HPOs share the common characteristic of involving “a wide range of “or “broad cross-section of” employees in driving for improved performance. Their goal is to imbue every employee with an owners mind-set.,Self governance in these HPOs is different from that practiced in other “engaged and empowered” companies. In HPOs the single-minded objective of empowerment is performance.,In the matrix below, the HPOs we studied were all in the top half of the matrix (high performance); many were reaching, in addition, for the right-hand side of the matrix(engaged and empowered).,24,PERFORMANCE AND EMPOWERMENT AT HPOs,HPOs,Performance-focused, top-down-driven organizations,Performance-driven, empowered, and accountable organizations,Hierarchical, command- and control-oriented, “entitled” organizations,Activity-driven, “engaged and empowered” organizations,Command and control Engage and empower,High,Low,Average,Performance,Management approach,25,Most large companies start out in the lower left-hand corner of the matrix (low performance and command-and-control management approach). We discovered that HPOs that have successfully transitioned to the upper right-hand corner have,first,achieved high performance and then experimented with and adopted empowerment. Empowerment without first establishing a true performance ethic in the company tends to result in continued low performance.,If your client falls in the lower left-hand corner of this matrix, it needs to concentrate first on building a true performance ethic. Empowerment, alone, is unlikely to yield performance improvement.,26,TRANSFORMATION PATH,Path followed by high-performance companies,Path experienced by companies that fail to instill performance ethic first,Emerson,Pepsico,Sonoco,Sun Trust,VF,3M,GE,Hallmark,Johnson&Johnson,Many high perfor-mers” on the journey”,Most companies,BP,FP&L,Wallace,Command and control Engage and empower,High,Low,Average,Performance,Management approach,27,As discussed above, the first phase of the organization diagnostic identifies performance gaps.,The second phase focuses on identifying organizational issues and impediments to change. The framework most commonly used to identify organizational issues includes seven buckets that start with “S”.,Strategy.,An integrated set of actions that deliver a superior value to a set of customers with a cost structure allowing excellent continuing returns.,Institutional skills.,End-result activities the company must be really good at in order to deliver the value proposition.,Shared values.,Simple, agreed-upon principles that say what is important around here.,Taken together, the first 3-Ss define the companys vision: an overriding goal that people in the organization strive to achieve; that is challenging, valuable, and exciting to them; and valuable and differentiated to the intended customer. To achieve the vision, the company must design and align levers to guide the behavior of those holding,pivotal jobs,close to the front line i.e., those who directly affect delivery of value to the customer.,Organizational structure.,An orderly and predictable system to determine who reports to whom and how tasks are divided up and integrated.,Staff.,The people in the organization considered in terms of their capabilities, experience, and potential.,Management systems.,The processes and procedures through which things get done day-to-day.,Leadership style.,The way leaders focus their time and attention and the personal tone they set.,28,7-,S FRAMEWORK,What change is needed?,How should the client make change happen?,Gaps in performance,Organizational challenges,initiatives,Organizational challenges,Energizing elements,Winning formula,Pivotal jobs,Design levers,Organizational structure,Management systems,Leadership style,Staff,Strategy,Skills,Shared values,VISION,29,At the heart of we mean by organizational performance is a “winning formula” creating a combination of strategy, skills, and shared values to carry out an organizational purpose.,What links these elements together (the “overlap”) is the organizations vision:,The vision is the overriding goal of the organization the place where strategy, skills, and shared values intersect. It is the single, noble purpose that guides organizational priorities and gives meaning to the day-to-day activity of the staff.,For example, McDonalds has a vision-driven “winning formula,” as described below.,30,McDONALDS WINNING FORMULA,Vision :,to become the leading restaurant chain in the world,Strategy,Shared values,Skills,Convenient,Good quality,Consistent,Family-oriented environment,Fair value,Quality control over all aspects of business,Superior site selection,Continuous new product development,Strong promotion of products and McDonalds image,Quality,Service,Cleanliness,price,31,Organizations usually change in response to discontinuities either external shocks (such