McKinsoy Versus

Khandwalla P N

No WP1998-10-03, IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: The paper contrasts two paradigms of management change that may increasingly compete for management allegiance: the professionalist, a analytical, bottomline oriented “McKinsey” mode and the participatory, collectivist, emotive, improvisation-oriented, values-based “movement” mode. Both are relevant for bringing about needed changes in liberalising and globalising emerging markets like India. The “McKinsey” mode is heavily influenced by Western management gurus and international consultants. It emphasises top down strategic repositioning, restructuring and downsizing, profit centre, operating decentralization, MIS and other management systems, “strong” leadership that firmly implements the change strategy, and generally a stronger commercial orientation. The “movement” mode in corporate management emphasises broad-based diagnosis, development and implementation of strategies of change, collective pursuit of “causes” like much better quality, productivity, innovativeness, customer or stakeholder service, environmental friendliness, human development, or social responsibility, and visionary, transformational, participative leadership. Five examples, four from the West and one from India, illustrate the operation of the “movement” mode. The circumstances under which each mode may be particularly acceptable are discussed. Also discussed are implications for management education.

Date: 1998-10-03
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