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What Constitutes Knowledge?
In its broadest sense, knowledge for McKinsey comprises any and all attributes of the company that contribute to its ability to create value for its customers and earn revenue by doing so. Such a perspective is consistent with the ‘knowledge based view of the firm’ which considers a firm as a collection of knowledge based assets and is particularly poignant for consulting firms which have no tangible assets and must create value by successfully transferring knowledge from their organisations to those of its clients.
Knowledge exists in both of its primary forms at McKinsey.
Type Characteristic Transferability Examples
Tacit Knowledge that explains how to do something Must be learned by observation and application and is difficult to transfer • Creative analytical abilities and consultants thought leadership
• Lessons learned from outcomes
• Specific client knowledge
Explicit Knowledge about subjects Can be codified and easily transferred • Project implementation plans
• Generic industry knowledge
Table 1: Primary Forms of Knowledge
For McKinsey, knowledge is both a product and a production system.
Knowledge as Product
Knowledge is a product the firm can sell to its clients in order to obtain revenues and it must be developed (generated and captured) in order to maintain value for its customers.
Knowledge as Production System
Knowledge is a guideline that the ...