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Organization:
Overview of Core Frameworks;FOREWORD AND OBJECTIVE ;This document seeks to answer 4 questions ;McKinsey’s 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.;CRITICAL ELEMENTS FOR IMPACT;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 organization’s skills so that the organization can step up to the challenge the superior strategy poses..;3 OUT OF 4 STRATEGIES THAT FAIL DO SO BECAUSE OF THE ORGANIZATION’S INABILITY TO EXECUTE;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
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