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The big company and the cloud
While granting that "clouds are very cost-effective" for small and medium-sized companies, McKinsey argues that a large company would spend considerably more today if it were to shut down its data center and run all its applications out of a utility-computing cloud.
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Beyond the Big Bang: Strategy as Habit
Instead of strategy as Big Bang, what about strategy as Habit? ALL organizations require strategic thinking to succeed, but few organizations actually face the dramatic moment -- ever, or certainly very often. If that is true, then the sweet spot for strategy is something more routine, more "everyman", more evolutionary, more of a living process. Strategy as Habit has 2 components, in keeping with the 2 primary definitions of the word "habit": (1) a regular practice and (2) a long, loose garment worn by a member of a religious order. (In case you've forgotten that second definition: picture here). Strategic thinking is a recurrent, involuntary action. Our strategy is both a content statement and a style statement, both of which define and identify our team. Strategy is participative. Strategy has structure without being overly constrictive.
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Six ways to make Web 2.0 work - The McKinsey Quarterly - Six ways Web 2.0 work - Business Technology - Application Management
Over the past two years, McKinsey has studied more than 50 early adopters to garner insights into successful efforts to use Web 2.0 as a way of unlocking participation. We have surveyed, independently, a range of executives on Web 2.0 adoption. Our work suggests the challenges that lie ahead. To date, as many survey respondents are dissatisfied with their use of Web 2.0 technologies as are satisfied. Many of the dissenters cite impediments such as organizational structure, the inability of managers to understand the new levers of change, and a lack of understanding about how value is created using Web 2.0 tools. We have found that, unless a number of success factors are present, Web 2.0 efforts often fail to launch or to reach expected heights of usage. Executives who are suspicious or uncomfortable with perceived changes or risks often call off these efforts. Others fail because managers simply don’t know how to encourage the type of participation that will produce meaningful results.
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Using the McKinsey 7-S Model to Improve Competitive Intelligence Capabilities
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Building Web 2.0 Enterprise: McKinsey Global Survey Results
* Companies have adopted more Web 2.0 tools this year than in 2007 and are using them for higher-value purposes, according to McKinsey’s second annual survey on the business use of Web 2.0 technologies.
* Some 21 percent of the respondents are very satisfied with the way their companies use Web 2.0 tools, which are changing management practices and even organizational structures.
* Other companies report that the barriers to adopting Web 2.0 tools include management’s inability to grasp their potential financial returns, unresponsive corporate cultures, and less-than-enthusiastic leadership.
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Organizing for value
# When large companies are organized in the traditional division structure, strategic decisions too often fall to managers under pressure to meet budgetary demands. Success in one unit masks underperformance in others, while ventures that promise strong future growth go underfunded because they don’t contribute to short-term bottom-line numbers.
# One way to shake things up is to review the strategy and performance-management processes and to make decisions at the more granular level of value cells. Value cells are smaller units (20-50 for a large company) that represent the economics of the individual, simple businesses that any company is built of, such as customer segments, product groups, geographic markets, and new technologies.
# By emphasizing these value cells rather than aggregated bottom-line division numbers, this approach sheds light on which activities should be the target of additional investment—and which should be divested entirely. Changing managers’ roles won’t be easy, but in the long run, it will be worth it.
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CIGREF Publications: 2008 - Dynamique de création de valeur par les Systèmes d'information : Une responsabilité partagée au sein des Directions des Grandes Entreprises - CIGREF - McKinsey
Comment définir, comment quantifier et comment optimiser la plus-value des Systèmes d'Information ?\nPour répondre à ces questions cruciales et mieux comprendre la contribution des SI à la performance des grandes entreprises, le CIGREF et Mckinsey & Company ont décidé de mener ensemble cette étude.\nElle reprend la réflexion au point d'aboutissement de nos précédents travaux de 2002 et 2004.\nElle adopte cette fois le parti de se fonder sur une observation approfondie des bonnes pratiques en vigueur dans un groupe d'entreprises qui, dans des secteurs très divers, se distinguent par l'avantage concurrentiel que leur procurent les SI.
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multinationals struggle to manage talent - Why multinationals struggle to manage talent - Organization - Talent - The McKinsey Quarterly
# The findings show a strong correlation between financial performance as measured by profit per employee and companies that achieved the best scores on a survey of their global-talent-management practices.
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leadership and innovation - Leadership and innovation - Strategy - Innovation - The McKinsey Quarterly
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