Secretary of Defense
Corporate Fellows Program
FINAL REPORT
MCKINSEY & COMPANY, LLP
LTC Keith A. Armstrong, USA
May 2000
TABLE OF CONTENTS
Executive Summary ……….……………………………………………… 3
McKinsey & Company ……………………………………………………4
Quotable Quotes ………………………………………………………….. 6
The Paradox ……………………………………………………………… 7
The Private Sector – at War ………………………………………………. 9
The Military – the Uniformed War for Talent .…………………………… 14
Personal Perspectives ……………………………………………………. 21
Findings/mendations ……………………………………………… 24
Conclusion .……………………………………………………………….. 26
Figures ……………………………………………………………………. 29
Bibliography ……………………………………………………………… 49
EXECUTIVE SUMMARY
This report is an overview of the fellowship conducted at McKinsey & Company in Houston, Texas, from August 1999 to June 2000 as part of the Secretary of Defense Corporate Fellowship Program (SDCFP). The purpose and scope of the SDCFP is outlined in Department of Defense Directive . This was the fifth year of the program.
While assigned to McKinsey & Company, I worked primarily as an associate performing consulting work as a member of a client support team based out of the Houston Office. I did have occasion to observe the workings of the firm at a higher level and interviewed all of the Texas office partners during the course of the year, but the majority of the work was at the consulting entry level.
I chose to concentrate my focus for this year’s project on a subject that is of great concern to the Defense Department as well as private industry – the War for Talent - the attraction, recruitment and retention of top talent. In times of national economic and defense ess, organizations are faced with a significant human resources crisis. Unemployment rates are as low as they have been in decades. Interest rates are down. Inflation is under control. Markets have been soaring. So what is the crisis? This paper will attempt to answer that question.
The War for Talent exists in many different forms with no
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