Square peg in a
round hole?
McKC had got
partner-level support, but it didnt have any customers. Offices
didnt see the value in participating, while the local R&I staff
was naturally insecure. McKC identified the London and Sydney
offices as its pilot customers because there was a genuine gap there
which it could seek to fulfill. These were large offices, whose
local R&I teams were not able to meet the demand. Their R&I
teams, too, were less insecure about giving up some of their work
because they were overworked and looked forward to getting some work
off their back.
In fact, demand took some
time to build up. The first few months were extremely slack, with
staff pouncing on any work that came their way. McKC decide to
pull work its way. It got implants from the Sydney and London
offices, who gradually began to siphon work to India. What sustained
the initial trickle was the quality of output that the team
delivered, and what began to feed McKC was the realization that the
team could handle analyses and the word of mouth publicity that the
center got from satisfied customers. And within six months, volume
ceased to be an issue.
As consultants began to
circumnavigate their local R&Is, McKC had to respond to the
local teams-after all these were the people whos jobs were being
affected. At an operations level to gain buy-in, McKC started to
respond to the consultants queries with a copy to the local office,
thereby keeping them in the loop. At a managerial level, Kirkland
called an R&I managers meet, where the McKC team took a stand
of candor-We are starting with only 10 to 12 people. There is no
threat because this will be your back office. We will see how to
help it grow after piloting the service for the next six to 12
months.
Secrets behind the
success
McKC outdid its
projections. In the first year, it had planned to service two
offices. It ended up servicing almost 60. It had planned a 10-member
team; it ended up requiring a 45 member one. It had planned to do
almost 100 per cent low-end quick-information work; but it ended up
providing significant customized information and analysis support as
well.
But, what was the key factor
in McKCs success? People, say McKC leaders. In the western
hemisphere offices, MBAs were consultants, while librarians were
R&I and there was a divide in the middle. In India, we sought to
put MBAs on either side. This was something eminently possible in
India with its brood of MBA schools, peoples willingness to work in
shifts, and lower wages. The hunt was for second and third-tier MBA
graduates, people who were hungry to prove that they were as good or
better than the first-tier MBAs. It resulted in the hiring of the
first batch of ten people, handpicked from 5000 resumes that the
McKC appointment ad attracted. And this team was driven by quality,
believing that cost advantages are soon forgotten and matter only to
the owners.
Like many success stories,
McKC, too, started small, though it thought big. It tested the model
with a mere ten people working from a few rooms at the Taj Palace
hotel in Delhi, scaling up in staircase fashion to 20, and
eventually 45 researchers and analysts by the end of the first year.
It was only after 18 months of existence, and continuous demand from
consultants, that it shifted to a larger office in Gurgaon, a suburb
of Delhi and today a hotbed of BPO activity.
Happily ever
after
Today the firm has
three knowledge centers-the original one in Gurgaon, one outside
Boston, and another in Brussels-servicing the three regions and the
world. While the knowledge centers provide extensive support to
consultants and Practices, the local R&I offices are very lean.
This configuration is fairly close to the regional plan first
proposed almost ten years ago-the original plan had proposed centers
in India, the US, and UK.
Before and
after
| |
START |
END OF FIRST YEAR |
NOW |
| TEAM |
10 people |
45 people |
200 |
| CUSTOMERS |
Pilot to support two offices-London and Sydney |
60 offices (almost 50 percent European offices, 15 percent US, 10 percent India) |
All McKinsey
offices |
| WORK |
Low-end quick research information |
Customized information and analysis support |
Support center to Practices |