As a McKinsey consultant gets off a late evening flight at Sydney and begins
to get worked up about an early morning presentation for which he still lacks
some critical data, he calls up an McKC (McKinsey Knowledge Center) staff and
asks him for it. By the time hes ready to begin work on his pack-McKinseys
internal word for presentation slides-the next morning, he has the processed
information in his mail. If he had asked, he would have even got some
preliminary number crunching done.
This was not the case almost a decade ago, when the consultant would have to
either do the research himself or pull up an R&I-Research and
Information-staffer from his late evening pubbing and request him for the
information. This was because of the way research was structured within
McKinsey. McKinsey had about 800 researchers at its R&I centers spread across
its 80 offices and several Practices. No one office-not even the larger New York
and London offices-had sufficient specialist researchers for each Practice
group, while the smaller offices didnt even have enough critical mass even
amongst the non-specialists. This, combined with the fact that the demand from
consultants had its peaks and troughs, meant that researchers often found
themselves overworked.
This is what R&I managers lamented about at an Asia-Pacific meeting for
McKinsey R&I managers in Kuala Lumpur in February 1997. The antidote came in the
form of a suggestion to set up an R&I regional support center in India, much
like a back office, to be staffed with specialist researchers. The argument was
that by creating a mass of support staff in a low-cost location, such a model
would allow R&I to give consultants information faster, and at lower cost than
happened traditionally. Consultants from anywhere in the A-Pac region could send
in a request for generalist or specialist information or analysis via email or
phone, and staff in India would turn it around within 24 hours. The center was
to work five days a week, round the clock.
This idea had been fomenting for a while in the mind of Anil Kumar, a senior
partner at McKinsey, who had spent time working on the remote-services area. It
was proposed at Kuala Lumpur by another enthusiast of remote services-Amit
Bhatia, the newly appointed R&I manager for McKinseys India office. Bhatia had
come to McKinsey from American Express where he had watched Chairman and CEO
Harvey Golubs initiative to build three financial resource centers, one each at
Brighton (UK), Salt Lake City (US) and Delhi (India). So, it was easy for him to
extend his learning from American Express to the McKinsey situation.
Need for a parent
As expected, managers at the meeting reacted to the proposal, citing
problems of language differences, database incompatibilities, and absence of
rapport with consultants.
But, the center got the support that any radical project cant see the light
of day without-the support of a big wig. In this case, it was Roger Ferguson,
the Firms R&I Director worldwide, and now Vice-Chairman of the Board of
Governors of the Federal Reserve System, US. So began the laborious process of
writing and rewriting business plans and approaching senior directors and Office
Managers for approvals and buy-ins (the local head of each McKinsey office is
called an Office Manager). The original team wrote many different plans during
1997, before Ferguson left to join the Federal Reserve System.
The limbo of the absence of a leadership abated soon, with Ferguson being
succeeded by an equally determined Jane Kirkland. During this time, the plan got
modified, and suggested two separate centers-the Quick Information Center, which
would service the global McKinsey community, and the Pan Asian Desk, which would
service the region. Later the Pan Asian Desk was dropped and the Quick
Information Center got christened the McKinsey Knowledge Center.
As the remote-services idea gained momentum, effort began to be put in to
finding guardian angels for the project, and soon a set of owners was in place.
Kirkland, Kumar, and Neeraj Bhargava, a partner from the Mumbai office, became
members of an Advisory Council to drive the McKC idea, while Bhatia continued to
be in charge of operations. Kumar took upon himself the task of getting the
buy-in of senior firm members worldwide, while Kirkland lobbied with R&I
managers in various countries, and Bhargava worked with Bhatia to get the
details of the plan in place.
With buy-in came constructive suggestions to make the plan workable. One of
them was to lower the bar of the services that McKC was proposing-it was
proposing to support McKinseys high-end Practices. This was lowered and a new
plan suggested that the center would first cater to quick information needs, and
once that gained momentum would it move to provide information support to
Practices. And, to McKCs credit, within a year of its setting up, it began
supporting a few Practices by providing them customized data and analysis.
With a sound plan in place, only the matter of getting the go-ahead remained.
In March 1998, armed with a proposal that had passed many hands, and backed by a
team of partners and directors, the McKC board went straight to the big boss-Rajat
Gupta, the Managing Director of the firm. Gupta approved, and the center was
incorporated in February 1999.