Operations Management Analysis & Improvement Plan for McKinsey & Co.

This report provides a review and critique of the implementation of operations management principles within McKinsey & Company. It begins with an introduction to the organization and explains the difference between operations and operations management. The report then analyzes the extent to which McKinsey's operations management meets the organization's requirements, discusses continuous improvement as a philosophy and includes a continuous improvement plan with justified recommendations. Key principles such as corporate governance, obeying the law, community involvement, environmental considerations, and business integrity are examined. The report concludes with an analysis of McKinsey's performance in managing resources and executing policies, highlighting the company's aim to provide top-class products and services while adhering to defined business principles. Desklib offers a wealth of resources including past papers and solved assignments for students.

ID
Unit Number and Title Unit 187 – Operations and Project Management
Title Review and Critique of Operations Management (Part 1)
Project Life Cycle (Part 2)
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Table of Content
Part 1: Business Report
1. An introduction to chosen organization 2
2. An explanation of operation vs operations management 2
3. A review and critique of the implementation of operations management
principles within the chosen organization 5
4. An analysis of the extent to which the operations management of the
organization in the case study meets the requirements of the organization
6
5. Discussion of continuous improvement as a philosophy and describe the
Lean principles 7
6. A continuous improvement plan, including your justified
recommendations for improvement, based on your review and critique of
operations management principles within your organization
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7. Conclusion 9
References 10
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1. An introduction to chosen organization
For every organization, the operational management is defined as the method which is used
by the company in identification of the areas which are bearing the lowest of the profits and
are a loss to the company, to some extent. Here the procedure of operational management is
applicable McKinsey and Company who are known for being established as global
management consulting firm, which is founded in 1926 by professor James O. McKinsey
who was the professor in University of Chicago. The company has established themselves as
a professional services firm, with more than 96 years of experiences in the professional
services industry. To help understand the workings of the company, the report will lay down
the merits and demerits of the various techniques and tools which are applied in McKinsey
and Company through critical analysis of the such methods. The operational management and
the operations which are performed are interrelated to an extent and will be discussed and
examined in the report, to create integrity and flexibility in the organization.
2. An explanation of operation vs operations management
Operations
Operations are defined as the methods which are required to be performed by the
company through proper analysis of the techniques and methods which are followed for
giving effect to the various transactions in which the company is involved in. The internal
workings of the company are identified as the operations of the company and requires proper
utilization of the resources (Wilson, 2018). Furthermore, the operations of the company are
divided into two parts namely, the front end users and the back end users who could be
clients and consultants or other similar professionals, respectively. Following are the
generally applied and executed activities of the company in case, that is, McKinsey:
 Audit – The procedure which is followed for the examination or inspection of
financial documents through an external party, who is experienced and
knowledgeable in this field, are appointed for this task and henceforth the
management is capable of assessing the position of the company through following
the various policies and procedures which are either drafted by the company or the
government. In case of McKinsey, the professional consulting company is appointed
by various organization to assess true and fair position of the company, for checking
or verifying whether the business proceedings are executed fairly without the
misinterpretations or fraudulent activities.
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 Consulting – When a firm, organization or an individual decided to take the service
of a different firm who is specifically engaged in such kind of practices, are referred
to as the consulting firms, who provide such expertise at a monetary cost. McKinsey
often aims to provide an independent and clear view about the internal proceedings of
an organization. The company always thrives to achieve integrity and authenticity in
the whole consulting procedure, so as to help the various parties, whether internal or
external, assess the situation of the organization in the industry. Furthermore, the
practice of providing the consulting services to the clients is backed up by the
experienced professionals who perform the operations efficiently. (Visser, 2020)
 Financial Advisory – The financial advisory as by the name is referred to as the
financial management advice which is provided to the clients by financial analysts
and henceforth help them in taking relevant decisions for the future. Furthermore, the
task of the company includes, examination of the financial statements, calculation of
the Net Present Value along with the analysis of the past and present data of the
company. In case of McKinsey and company, the financial advisory service is
introduced, so as to equip the investors or other type of clients to manage the
monetary value together with the financial position in the market.
 Tax Services – The regulations and rules introduced by the legislation and other
relevant authorities for coherent workings of the company are required to be followed
through the proper utilization of the resources. Furthermore, the tax services which
are provided by the company, includes the assessment of the business tax,
international tax, transfer pricing and other tax related consultancy services. Those
charged with governance are required to create relevant and to the point procedures
and formulas to help the clients save up tax and not revert to activities which are
considered fraudulent.
Operations Management
When the operations of a company are managed through adoption of proper plans and
techniques for directing the unified efforts of the company into achievement of the
organizational goals and objectives (Pan, 2021). The techniques and procedures which are
involved in the operational management procedure are often related to the achievement of
goals by directing the ultimate goal of the company by assessing the implementation and
execution of the daily operations. The authorized and qualified individuals are often
appointed for helping the organization achieve profitability and henceforth improve or
maximize the wealth, for the company to increase their chances of maintaining the going
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concern concept. Following are the operational management techniques adopted by
McKinsey:
 Planning – The first and foremost technique which has been adopted in the whole
operational cycle is referred to as the planning procedure, which includes the drafting
of the future transactions for executing a certain activity. The company is required to
follow various rules and regulations to give effect to the operations. Moreover, the
planning process aids in answering the questions about “what, when and how to do”
related to a specific task on the business process.
 Organizing – After mapping out the path which has to be followed for achievement
of the goals and objectives of the company, the management should be able to create a
seamless and effective procedure to help the organizing the activities which are
required to be performed. Even though the company will be able to perform the
techniques through the evaluation of the various procedures such as the classification
of the activities which are required to be performed within the company, along with
the identification of the gaps in the which are present in the whole procedure.
 Staffing – The operations which are performed in the company are often need to be
effective and efficient, through staffing of various individuals who are capable of
application of the relevant techniques, as they are specifically performed by the
employees who are experienced and trained, however if the employees are not trained
by the individuals who are not capable achieving the task through application of the
relevant techniques and knowledge should be given proper training and knowledge.
 Directing – After the managerial functions are executed by the company through the
performance of the relevant tasks, the company has to adopt various procedures to
help understand how the resources will be applied, while properly setting in motion
the actions of various individuals related to different departments who are currently in
employment with the organization. The administration aims at achievement of the
unified goals through directing the efforts of the individuals through analysis of
operations on different levels such as the middle, operational and top level.
(Ontiveros, 2020)
 Controlling – The company is capable of achieving the required goals and objectives
through the proper controlling of the activities or operations which form part of the
whole business process and henceforth, the last but not the least aspect about the
operational management procedure which will be followed for keeping track of the
merits and demerits of the methods applied through implementation of the procedures
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mentioned above for the company are referred to as the controlling process. The
overseeing of the relevant procedures help the management identify necessary loop
holes or gaps which are present in the organization. (Munoz, 2021)
3. A review and critique of the implementation of operations
management principles within the chosen organization
To maintain adequate and coherent standards of conduct in business, McKinsey lays
emphasis on performing operations on the basis of well-defined business principles and keeps
track of all the irregularities in relation to compliance of such rules and regulations.
Following are the relevant principles implemented by the company:
Corporate Governance
The sophisticated system designed by the company to direct and control the activities
performed, by ensuring no act by an employee at any level crosses the defined boundary,
described by way of policies, rules and regulations. It is generally the responsibility of Board
of Directors or the top level management, however they may include shareholders, if their
role is appointed as a part of the governing authority. Additionally, it helps management
make relevant decisions so as to avoid penalties.
Obeying the Law
The company in case, that is McKinsey always concentrated on the components which are
related to the policies and procedures followed by the company which are drafted either by
the company or by the government itself. Furthermore, the various policies, provisions and
methods which are followed by the company are often drafted by the top level management
and henceforth if an employee is not capable of following the law then he/she will be
terminated, after provision of opportunity to express their opinions. (Mahabir, 2022)
Community Involvement
For any type of company, the most important individuals who are involved in the growth of
the company are the communities and the consumers themselves. Henceforth the
management of McKinsey and Company is focused on maintaining itself as a constitutional
part of the society through being dependable and trustworthy to the citizens. With the
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consumers being the driving force of the company, the administration of the operations
whether, internal and external, is extremely important.
The environment
The company concentrates on incorporating various methods and techniques which are
capable of being sustainable and environment conscious, through the management of the
resources deployed to give effect to the operations, optimally. While doing so, the
management focuses on assessing the current climate crises situation and the affect which it
has made towards the country. Being a multinational company, the most crucial aspect for
them is to lay emphasis on the efficiency and effectiveness of how the various operations in
the company are capable of being managed without extreme emission of greenhouse gases.
Business Integrity
No matter the size or nature of the company, it is necessary to help the employees to perform
the operations in such a manner that they do not get influenced by greed or create
catastrophic situations for the organization through ill-practices or wrong doings.
Furthermore, it should be made clear within the organization, at all levels, that the employees
are required to follow the unified goal or objective of the company and not be involved in the
actions which fulfil their personal desires. (Loudon, 2019)
4. An analysis of the extent to which the operations management
of the organization in the case study meets the requirements of
the organization
McKinsey executes the required policies within the organization through the management of
the human along with the natural resources and as a result the internal proceedings are
performed efficiently. To properly comprehend the position of the company in context to the
operational management techniques, below is the break-up of the procedure:
 The company aims at provision of the top class product and services which the
consumers attain by paying a relevant sum of money. Furthermore, the rules and
regulations are often aimed at provision of quality services to the consumers through
appointing the trained and experienced professionals, who are equipped with the right
type of knowledge for the right task. (Liu, 20122) However, the rates of the services
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are comparatively high due to the fact that McKinsey is one of the most sort after
professional services firm.
 The sustainable and conscious choices which are followed within the company
through administration of the resources, are continuously adopted in the organization,
so as to help the environment and leave a positive impact on the consumers or the
population as a whole. Various methods are applied within the organization so as to
give effect to the operations of the company and as a result the consumers have now
trusted the organization and their ways of impacting the environment.
 Most of the employees often direct their efforts towards the achievement of their
personal goals and objectives by finding methods or techniques to somehow bend the
rules, regulations and policies according to their own needs and wants. To keep the
employees from wandering of the major or unified goal of the company, the
management of McKinsey often takes initiatives to control the whole business process
and look for loop holes which may be present within the company and can affect the
internal together with the external workings unfavorably. (Khan, 2019)
 The financial or the market is general is extremely volatile and unstable, with its
functions and workings changing every minute, for helping the company attain
maximum benefit from the functions and proceedings of the market, the management
of McKinsey and company, aims at performing various analysis techniques to help
the company gain benefit from the company through identifying the weaknesses,
strengths, opportunities and threats related to the competitors.
5. Discussion of continuous improvement as a philosophy and
describe the Lean principles
Continuous Improvement
In any type of organization, it is important for the company to keep the learning process
continuous or to help the employees, members and every other individual involved in the
company gain proper knowledge and be trained adequately, so as to fit in the current
environment and underlying changes. The process helps the employees gain knowledge about
the current situations and the technological environment which is dynamic in nature. (Grill,
2021)
Lean Principles
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The policies and techniques which are adopted by the management in an organizational
setting is referred to as the Lean principles which also help in mitigation of the errors and
wastage which the company may incur. Following are the Lean Principles which are widely
used in any type of entity:
 Value Identification – The most important aspect about the organization is to
motivate the employees into working in teams and not concentrate on their individual
goals and objectives, so as to achieve the overall aim of the company. (Frederico,
2021)
 Examination of the value stream – The identification of the team member’s skills
and knowledge and what they are good at is important for the organization and as a
result the company often aims at proposing a clear and streamlined path which can
help the organization have a clear vision about how the final product or service will
be provided along with the quality and quantity of the same.
 Creation of the Flow – The business is required to achieve the necessary goals
through aligning the right task with the right type of individuals and at the right time.
In this manner the organization will be capable of achieving the desired objectives
within the time limit and not being involved in the over or under consumption of the
resources which could be financial, man-power or managerial.
 Establishing the pull – The term “pull” is identified as the action where the
management is drafting or has implemented the required techniques or operations for
a new transaction, which is required only when their stands the necessary demand or
need of the same, whilst avoiding those transactions which are insignificant for the
company as a whole. (Franco, 2018)
In case of McKinsey and company, the Lean Principles are significantly beneficial for the
employees, as the administration will be able to identify any loop holes or errors in the whole
business process through keeping track of the activities which are performed at each level or
department of the company, this helps in maximization of the wealth and increase in the
overall turnover of the entity.
6. A continuous improvement plan, including your justified
recommendations for improvement, based on your review and
critique of operations management principles within your
organization
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For understanding the whole process and how the company is capable of achieving the
objectives, without incurring losses or wastage, following are the steps which are required to
be followed in the continuous improvement plan:
 Planning the tasks – The first and foremost aspect of this technique is to identify an
opportunity and propose various plans to act upon it, by incorporation of various
techniques and methods to support such decision and henceforth help the management
create a clear path.
 Implementation – After the initial plan is drafted by the company, the management is
required to implement various techniques to successfully follow the plan which has
been drafted in the first step. Furthermore, the implementation process has to be
followed on small scale, to avoid pervasive mistakes and failures.
 Follow Up – By implementing the change on small scale the company needs to move
towards the next step which involves the follow up or inspection of the transactions
which are performed in the first step through the management of the various
techniques and as a result the company will be able to identify the mistakes.
 Acting upon it – If the management is capable of utilizing the resources properly
without incurring any wastage or problems in the whole business process, then the
company will be able implement the changes on the larger scale and henceforth in this
manner the errors and mistakes are lowered.
For McKinsey and company, the operational tasks and techniques often require regular
improvement, for bringing effect to the changes and recognizing the need for such alteration.
It must be noted that in the long run the constant pressure which the company may witness,
could push the employees in the wrong direction with irrelevant or unnecessary goals to
achieve. The company should aim at the decentralized system of management to some extent
through adoption of various required principles. (Bai, 2022)
7. Conclusion
The following dissertation has presented the analysis of the various principles which are
required for understanding the operations and operational management procedure of
McKinsey and company, who is involved in provision of professional services to the clients.
Furthermore, the objective of the company is henceforth fulfilled which relates to the
mandatory methods to be followed for completion of a relevant project.
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References
Bai, L., Zheng, K., Wang, Z. and Liu, J., 2022. Service provider portfolio selection for
project management using a BP neural network. Annals of Operations Research, 308(1),
pp.41-62.
Franco, C., Guzmán Cortés, D.C. and González Rodríguez, L.J., 2018. Collaborative
strategies for humanitarian logistics with System Dynamics and Project
Management. Decision-making in Humanitarian Operations, ISBN: 978-3-319
91508-1 (2019); pp. 249-273.
Frederico, G.F., 2021. Project Management for Supply Chains 4.0: A conceptual framework
proposal based on PMBOK methodology. Operations Management
Research, 14(3), pp.434-450.
Grill, C.M., Hotels, C. and Kitchens, C., 2021. Operations Management in the Hospitality
Industry. Artificial intelligence (AI), 62, p.120.
Khan, U.A., 2019, November. Operations readiness and assurance-A practical example.
In Abu Dhabi International Petroleum Exhibition & Conference. OnePetro.
Liu, B., Li, J., Wang, D., Liu, H., Wu, G. and Yuan, J., 2022. Public–private partnerships: a
collaborative framework for ensuring project sustainable operations. Engineering,
Construction and Architectural Management, (ahead-of-print).
Loudon, J. and Morley, L., 2019. Balancing Projects and Operations to Improve
OrganizationalCapability. Journal of Medical Imaging and Radiation Sciences, 50(2),
pp.199-205.
Mahabir, R.J. and Pun, K.F., 2022. Revitalising project management office operations in an
engineering-service contractor organisation: a key performance indicator based
performance management approach. Business Process Management Journal, (ahead
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Muñoz-Villamizar, A., Solano-Charris, E.L. and Romero-Silva, R., 2021. Mapping
operations research in project management: a bibliometric analysis. International
Journal of Logistics Systems andManagement, 39(1), pp.52-76.
Ontiveros, B., 2020. Emergency Operations Center to relocate next year. UWIRE Text, pp.1
-1.
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Pan, Y. and Zhang, L., 2021. A BIM-data mining integrated digital twin framework for
advanced project management. Automation in Construction, 124, p.103564.
Turkulainen, V. and Ruuska, I., 2022. Facilitating Contextual Ambidexterity in a Global
Operations Expansion Program. Project Management Journal, 53(1), pp.67-83.
Visser, W.F., 2020. A Blueprint for Performance-Driven Operations Management. Mining,
Metallurgy & Exploration, 37(3), pp.823-831.
Wilson, K.B., Bhakoo, V. and Samson, D., 2018. Crowdsourcing: A contemporary form of
project management with linkages to open innovation and novel
operations. International Journal of Operations & Production Management.
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