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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,FOREWORDANDOBJECTIVE,This OrganizationPractice(OP)documentprovidesanoverviewfor useinlocaltrainingsessionsforfirst-yearassociates.Itispart of a,“,“seriesonfunctional areas.”The objectiveoftheseries is to introduceMcKinseypractitioners to thebasicsineachofourfunctionalareasofexpertise. Allthedocuments in theseriesare comprehensiveinnature anddescribethecurrenttoolsandframeworksinthat functionalarea,Attheend of thisdocument, youcanfinda sectiondescribinga selectionofthecoredocumentsand handbooksthat cangive youfurther detailsonsomeoftheframeworksdescriedhere.Allofthesedocuments arenowonPDNet; andhard copiesofthem canberequestedfromPDNetExpress,whichwill deliverthemin24hours,Thecontentsofthisdocumenthave beenadaptedforlocaltrainingsessionsthrough,“,“Switching Tracks”,OPs first-yearmodule videotape,whichcommunicates thebasicconceptsina conciseand visualwayusinganactual client, TheScandinavianRailroadCompany.Itis40minuteslong andshouldbepresented in 3shortsegments. Betweenthesesegments, thefaculty memberruns theattachedexercises, addsany commentaryhe/she considersnecessarytoclarifytheconcepts, andprovidespersonalexperience on selected topics.Acopy of thevideotapeand moderators guide withexercises canberequestedfromtheFirm,This document seeks to answer4 questions,SECTION 1Whydoassociates needtoconsiderorganizationalissues in every engagement?,SECTION 2Whatframeworksdoweusetohelpourclientsimprove organizational performance?,SECTION 3Whatroledoes an associateplay in organizationwork?,SECTION 4Where cananassociatefindoutmore?,McKinseys missionistohavelasting andsubstantialimpactonour clients.,Tosucceed,weneed to workall three of thecriticalelements:choose thebest strategy,develop world-class operations, align theorganization.,Thesethreeelementsboth reinforceandconstrain eachother. Thebest strategy is onlyrelevantifitisoperationallyandorganizationallyfeasible.The optimalorganizationaldesign dependsuponthestrategic requirement andtheoperationalmethodsoftheclient.,This document focusesonone vertexofthis triangularrelationship.Itwouldbewrong,however,tobelievethat youcanachievetheimpact we seekbyfocusingonone vertex.Weneedtoconsiderallthreeineverystudy.,CRITICALELEMENTSFORIMPACT,Successful,strategy,Efficient,operations,Effective,organization,Weonly achieveimpact whenthe organizationsweserveare successfulinimplementing thestrategies andoperationalmethods we propose.,However,a recentsurveyofengagementsinwhichclientsfailedtoimplement proposed strategiesfound, in three cases outoffour,that theclientorganization wasnotchange-ready or evencapableofimplementingthe strategy we proposed.,Toensurethatwehave impact,weneedtoconsiderorganizationalissuesaswedevise strategies. We mustchoose strategiesthe clientsare ready andable to implementorcomplement ourstrategywork withinvestmentinbuildingtheorganizationsskills so thatthe organizationcanstepuptothechallenge thesuperiorstrategyposes.,3 OUTOF4 STRATEGIESTHATFAIL DO SO BECAUSEOFTHEORGANIZATION,SINABILITYTOEXECUTE,100%=340,responses,Percent,McKinseyrecommendationsflawed,Clientnot change-readyorcommitted,Organizationlacked thecapabilitiestoexecutestrategy,Other,Thedemand fororganizationalwork is increasing.,Trendsinthe marketplace andtheevolvingnature of ourclients largelyexplainthis increase in demand.,Thepaceofchangeinthe marketplace is accelerating. Astrategic choiceoranoperationalinnovation evokesa rapid reaction fromcompetitor.Rarely cana durablecompetitiveadvantage be found in these choices. Ratheritisthedevelopmentofauniqueorganizationalcapabilitywith theinherentflexibilityandcommitmenttosustain world-class performance thatprovidesdurablecompetitiveadvantageinthesetimesofrapidchange.,Theclientsweservearechangingaswell.Theyhave increasinglyhiredin-housestrategiccapabilities.Most havebuiltstrategyshopsclosetothe CEO.Few,however,have thein-housecapability andobjectivitytodotheorganizationalworkrequiredtomake changehappen.,ORGANIZATIONAL WORK GROWING INIMPORTANCE,Evolving marketplace,Quickening pace ofstrategic adaptation,Durable competitive advantageoftenrootedin unique organizational capabilities,Evolving players,Many businesses acquiring in-house strategic capability,Makingchange happen remains the “neglected art”,McKinseys engagement mix,Percent of time,Increasing demandfor help with organization issues and change management,Crafting the answer,Helping implement change,10,years ago,Today,Source: Survey of23 MGMs across theFirm,The recent evolution inour clientshas not beenmissed by our competitors. Each ofour competitors has recently introduced abranded organizational elementto their portfolio. Their organizationalexpertise figuresprominentlyin their marketingcampaigns.,COMPETITORSHAVE BRANDEDORGANIZATION 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,McKinseys consulting approachmustevolveas our clients evolve.Thesechanges provoke ashiftin thenature of our work andan evolutionof the roleof the associateon engagements.,The increased demand fororganizational work impacts associates directly. Associatesare drawn into leadership roles onlargerteamsat anearlier point intheircareers. This places greater emphasis on the need forassociates to develop quite soon after joining McKinsey-superb team leadershipskills.,EVOLUTION INMcKINSEYSAPPROACH,*Survey of 23 MGMsacross theFirm,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,Beforewe dive into theorganizationmaterials,we should announceone critical caveat: the frameworksyou are about tosee are onlyas good asthe judgmentand insightusedto fill themout.The frameworks areoftenmerechecklists,usefultoolsto ensure you donot overlooka keydimension.The OPcan provideinterview guidesand questionnairesthatyou can useto flesh outthe frameworks, as wellas appliedexamples ina range of settings. However,almostall organizational issues are,“,“situationdependent”,and almost all client settingsare unique.Yourjudgment, insight,creativity,and organizational acumen will determinewhether youadd value intheclientsetting .,A CRITICAL CAVEAT,“,Garbage in,garbage out”,Organizational practiceframeworks,Checklists,Surveys, questionnaires,Applied examples,Garbage,Good judgment, keen insight, creativity, organizational acumen,Garbage,Clientimpact,CONCEPTUAL,A series offrameworks are availableto help clients identify andaddress organizational limitson effectiveness or obstaclesto change. They also point toward solutions.,Theseframeworks help teams answer two fundamental questions:,What changeis needed?,How should the client implement thechange?,The OPhas deriveda setof six attributesthatcharacterize,high-performing organizations(HPO),. By assessing whether your client organizationexhibits these sixattributes,you can diagnosewhether an organizational performance gapexistsas well.,Additionally, the,7-Ss,will help you identify strengths anddeficiencies in the organization. The,7-Ss,focusteamson aligningstructure, staff,systems, andstyleto promotebehavioral changeand build skills in pivotal jobholders. Bycontrastingthe required skill set(at both theorganization andthe pivotaljobholder level) with the current skill set, youcan often clarifythe organizational gapthat exists.,You completethe diagnostic byfilling outthe,changeboard,. Thatexercise helps teams understand theorganizational skill deficitsor resistance tochangeso they candeliberately planto build the necessaryskillsand willingness to change inthe organization.,Once the gaps havebeenidentified,the team needs tolay out a change programto close the gaps. The,transformation triangle,highlights the three criticaldimensions of anyeffective change program-top down, bottomup, cross-functional. The proper balance among these dimensions dependson thegap,the client setting, andthe competitive context.,Everychangeprogram containssome mix ofsix fundamental energizing elements.Eachmust be consideredas wedesign change programs.,This sectionof the handbook will discusseach framework inturn.,CORE FRAMEWORKS,High-performing organization attributes,Vision,Perfor-mance,CEO,led,People,Skills,Simple,7-,S framework,Winning formula,Pivotal jobs,Designlevers,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,Changeboard,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,The OPundertook astudyof 10high-performing companies, true industryleaders, that we knew very well. Thecompanies had sustainedpace-setting performance in their respective industries over 2 decades.,These10 HPOs shared sixmanagementattributes,each of which focuses onperformance. By comparing your client organization totheseHPOs,you may identifyopportunities to improveyourclientorganization.,“,HIGH-PERFORMANCE COMPANY,”,” ATTRIBUTES,Drivenby leaders,Aligned by simplestructures and core processes,Basedon world-class skills,Rejuvenatedby well-developedpeoplesystems,Builtby relentless pursuit ofbefore-the-fact strategies/vision,Energized byan extraordinarily intense, performance-drivenenvironment,What change is needed?,How should the client make change happen?,Organizational challenges,Initiatives,Energizing elements,Gaps in performance,The first three ofthe six common management attributes:,Drivenby leaders.,The leadersof these companieshad very high performance aspirations. For these leaders there was no such notion as “good enough”. At thecenterof these leadership groups, we consistently found demanding, unreasonable CEOs.,Builtby relentless before-the-factstrategies/visions.,HPOs spend their time lookingforward, notback.Theirstrategiesdriverelentlesslyfor both profitabilityand growth.,Energized byan extraordinarily intense, performance-drivenenvironment.,HPOs have ademanding, occasionallypunishing, work pace. There isrealaccountability, especially atthe top. HPOs, while being very,good,placesto work, are notalways,nice,placesto work.,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,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.,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,The HPO research found something else common tothe HPOs: all 10 were experimentingwith self-governance. Self-governance in these HPOs means empowerment with accountability.The HPOs share the common characteristicof involving,“,“a wide range of,“,“or “broad cross-sectionof” employees indriving forimproved performance. Their goal isto imbue every employeewith an owners mind-set.,Self governance in these HPOsis different fromthatpracticed inother,“,“engaged and empowered”companies.In HPOs thesingle-minded objectiveof empowerment isperformance.,In thematrix below, theHPOswe studied were all in the tophalfof thematrix (high performance); many were reaching,in addition,for the right-hand sideof the matrix(engaged and empowered).,PERFORMANCEAND EMPOWERMENT ATHPOs,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,Most large companies start outin the lower left-handcornerof the matrix (low performance andcommand-and-control managementapproach).We discovered thatHPOsthat have successfully transitionedto theupperright-handcornerhave,first,achieved high performance andthen experimentedwith and adopted empowerment.Empowermentwithout first establishing a true performance ethic inthe companytendsto result in continuedlow performance.,If your client falls inthe lower left-hand corner ofthis matrix,it needs toconcentratefirston buildinga true performance ethic. Empowerment, alone, is unlikely to yield performance improvement.,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,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.,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,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.,McDONALDS WINNINGFORMULA,Vision:,to become the leading restaurant chain inthe world,Strategy,Sharedvalues,Skills,Convenient,Good quality,Consistent,Family-oriented environment,Fair value,Quality control over allaspects ofbusiness,Superior site selection,Continuous new product development,Strongpromotion of products and McDonalds image,Quality,Service,Cleanliness,price,Organizations usually change in response to discontinuities, either externalshocks(suchas deregulation )or internalchanges (such asnew leadership) that make it clear that the old, “grooved”way ofdoingthings is no longer winning.The successful ones willcreate a new winning formulathat is based on changesin strategy, newer or stronger skills, and/or sharedvalues.,Contrastingthe new winning formulato theold formulaidentifiesand gauges the change that theorganization is considering and defines the vision for thechangeprogram.,A,changevision,is a creed that summarizes what an organizationis trying tobecome andwhy. As such, it guidesorganizational priorities by redefining and recombining business objectives, required institutional skills ,and corporate values about what is important around here.,A change vision isat the heart of top managements role inimproving performance and is often the first step. Itprovides thevitalbridge between the initial dis
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