Baker & McKenzie (A): A New Framework for Talent Management SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Baker & McKenzie (A): A New Framework for Talent Management
Describes the process by which the largest law firm in the world developed a unique framework for personnel management. In 2004, John Conroy is about to take the reins as the leader of Baker & McKenzie, the largest law firm in the world by employees, with offices in 38 different countries. Facing an intensifying war for talent and associate retention concerns in some offices, Conroy has spearheaded the development of a framework for guiding the hiring, development, and retention of employees. As he is getting ready to introduce his framework at the firm's annual meeting, however, he faces many questions about its implementation. Could a single framework effectively apply to lawyers across so many different regions and cultures? Had this framework properly identified the attributes needed to succeed at Baker & McKenzie? How would the firm's hundreds of partners react? Offers the industry- and firm-specific content necessary for students to explore these questions and more.
Swot Analysis of "Baker & McKenzie (A): A New Framework for Talent Management" written by Boris Groysberg, Eliot Sherman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mckenzie Framework facing as an external strategic factors. Some of the topics covered in Baker & McKenzie (A): A New Framework for Talent Management case study are - Strategic Management Strategies, Cross-cultural management, Developing employees, Employee retention, Hiring, Human resource management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Baker & McKenzie (A): A New Framework for Talent Management casestudy better are - – increasing commodity prices, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, challanges to central banks by blockchain based private currencies, geopolitical disruptions, there is increasing trade war between United States & China,
increasing transportation and logistics costs, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Baker & McKenzie (A): A New Framework for Talent Management
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Baker & McKenzie (A): A New Framework for Talent Management case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mckenzie Framework, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mckenzie Framework operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Baker & McKenzie (A): A New Framework for Talent Management can be done for the following purposes –
1. Strategic planning using facts provided in Baker & McKenzie (A): A New Framework for Talent Management case study
2. Improving business portfolio management of Mckenzie Framework
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mckenzie Framework
Strengths Baker & McKenzie (A): A New Framework for Talent Management | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mckenzie Framework in Baker & McKenzie (A): A New Framework for Talent Management Harvard Business Review case study are -
Learning organization
- Mckenzie Framework is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Mckenzie Framework is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Baker & McKenzie (A): A New Framework for Talent Management Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Mckenzie Framework has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mckenzie Framework has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Operational resilience
– The operational resilience strategy in the Baker & McKenzie (A): A New Framework for Talent Management Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Highly skilled collaborators
– Mckenzie Framework has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Baker & McKenzie (A): A New Framework for Talent Management HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Mckenzie Framework is one of the most innovative firm in sector. Manager in Baker & McKenzie (A): A New Framework for Talent Management Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Mckenzie Framework has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Strong track record of project management
– Mckenzie Framework is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Mckenzie Framework has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Baker & McKenzie (A): A New Framework for Talent Management Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Mckenzie Framework is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Boris Groysberg, Eliot Sherman can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High brand equity
– Mckenzie Framework has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mckenzie Framework to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Mckenzie Framework digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mckenzie Framework has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Effective Research and Development (R&D)
– Mckenzie Framework has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Baker & McKenzie (A): A New Framework for Talent Management - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Baker & McKenzie (A): A New Framework for Talent Management | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Baker & McKenzie (A): A New Framework for Talent Management are -
Skills based hiring
– The stress on hiring functional specialists at Mckenzie Framework has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Baker & McKenzie (A): A New Framework for Talent Management has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Mckenzie Framework 's lucrative customers.
Interest costs
– Compare to the competition, Mckenzie Framework has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow decision making process
– As mentioned earlier in the report, Mckenzie Framework has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Mckenzie Framework even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Baker & McKenzie (A): A New Framework for Talent Management, it seems that the employees of Mckenzie Framework don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Aligning sales with marketing
– It come across in the case study Baker & McKenzie (A): A New Framework for Talent Management that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Baker & McKenzie (A): A New Framework for Talent Management can leverage the sales team experience to cultivate customer relationships as Mckenzie Framework is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Baker & McKenzie (A): A New Framework for Talent Management HBR case study mentions - Mckenzie Framework takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Mckenzie Framework is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Mckenzie Framework needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mckenzie Framework to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Mckenzie Framework needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Capital Spending Reduction
– Even during the low interest decade, Mckenzie Framework has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Baker & McKenzie (A): A New Framework for Talent Management, is just above the industry average. Mckenzie Framework needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Opportunities Baker & McKenzie (A): A New Framework for Talent Management | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Baker & McKenzie (A): A New Framework for Talent Management are -
Buying journey improvements
– Mckenzie Framework can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Baker & McKenzie (A): A New Framework for Talent Management suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Mckenzie Framework can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Mckenzie Framework to increase its market reach. Mckenzie Framework will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mckenzie Framework to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Mckenzie Framework to hire the very best people irrespective of their geographical location.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Mckenzie Framework can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mckenzie Framework can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Mckenzie Framework can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Manufacturing automation
– Mckenzie Framework can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mckenzie Framework can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Baker & McKenzie (A): A New Framework for Talent Management, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Mckenzie Framework has opened avenues for new revenue streams for the organization in the industry. This can help Mckenzie Framework to build a more holistic ecosystem as suggested in the Baker & McKenzie (A): A New Framework for Talent Management case study. Mckenzie Framework can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Mckenzie Framework has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mckenzie Framework is facing challenges because of the dominance of functional experts in the organization. Baker & McKenzie (A): A New Framework for Talent Management case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mckenzie Framework can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Mckenzie Framework can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Threats Baker & McKenzie (A): A New Framework for Talent Management External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Baker & McKenzie (A): A New Framework for Talent Management are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Baker & McKenzie (A): A New Framework for Talent Management, Mckenzie Framework may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Environmental challenges
– Mckenzie Framework needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Mckenzie Framework can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing wage structure of Mckenzie Framework
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Mckenzie Framework.
Technology acceleration in Forth Industrial Revolution
– Mckenzie Framework has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Mckenzie Framework needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Mckenzie Framework in the Leadership & Managing People sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mckenzie Framework can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mckenzie Framework with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mckenzie Framework in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Mckenzie Framework.
High dependence on third party suppliers
– Mckenzie Framework high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Mckenzie Framework business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Mckenzie Framework needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Consumer confidence and its impact on Mckenzie Framework demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Weighted SWOT Analysis of Baker & McKenzie (A): A New Framework for Talent Management Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Baker & McKenzie (A): A New Framework for Talent Management needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Baker & McKenzie (A): A New Framework for Talent Management is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Baker & McKenzie (A): A New Framework for Talent Management is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Baker & McKenzie (A): A New Framework for Talent Management is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Mckenzie Framework needs to make to build a sustainable competitive advantage.